Test Bank For Advertising and Promotion An Integrated Marketing Communications Perspective 12th Edi by StudyGuide

Test Bank For Advertising and Promotion An Integrated Marketing Communications Perspective 12th Edition by George Belch (Author), Michael Belch (Author) Chapter 1-22 Chapter 1

Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) Traditionally, direct selling via independent contractors has been the primary medium for direct-response advertising. ⊚ ⊚

true false

2) 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

3) Publicity is always under the control of an organization, so the organization can make sure it is positive. ⊚ ⊚

true false

4) 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

5) Analysis of the communication process may involve preliminary discussions on mediamix options and their cost implications. Version 1

⊚ ⊚

true false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 6) Full of Fun Industries has been reviewing their advertising spending on traditional media such as television, radio, and print. The noticed that their competitors across the country are spending less on traditional advertising and more on ________, which includes online search, display and video ads, and advertising on social media.

A) B) C) D) E)

online advertising one-stop advertising digital advertising social media advertising video advertising

7) According to the American Marketing Association, the organization that represents marketing professionals in the United States and Canada, marketing is planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create ________ that satisfy individual and organizational objectives.

A) B) C) D) E)

opportunities plans advertisements exchanges contributions

8) KB industries is learning more about their customers’ perception of value. An independent survey showed that customers weigh all of the benefits of a product against all the costs of acquiring and consuming it. Benefits are categorized as functional, ________, and/or psychological.

Version 1

A) B) C) D) E)

empirical experiential emotional empathetic empathic

9) GSI Industries has always worked with Productive Advertising, a traditional advertising agency. Now GSI’s new marketing VP wants to add in other types of promotional specialists and has asked Productive to start using a variety of promotional tools rather than relying primarily on media advertising. The new VP is embracing the concept of

A) B) C) D) E)

international marketing communications. interdepartmental marketing communications. informational marketing communications. integrated marketing communications. intradepartmental marketing communications.

10) Money Backed Enterprises recognizes the importance of identifying every opportunity to deliver on the brand promise, strengthen customer relationships, and customer deepen loyalty. They are using an integrated marketing communications approach to a(n) ________ messaging function so that everything a company says and does communicates a common theme and positioning.

A) B) C) D) E)

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organized centralized energized formalized right-sized

11) Clear Cite Industries’ goals are to both generate short-term financial returns and build long-term brand and shareholder value. They have chosen to use a strategic business process called ________ 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.

A) B) C) D) E)

international marketing communications interdepartmental marketing communications informational marketing communications integrated marketing communications intradepartmental marketing communications

12) One reason Sum Company Marketers are adopting the IMC approach is they understand the value of ________ integrating the various communications functions.

A) B) C) D) E)

partially covertly centrally seasonally strategically

13) The Internet has become a leading advertising medium, replicating many of the services that were once capturing mass audiences assembled by network television and augmented by other mass media. With the mass audiences fragmenting at an accelerating rate, many marketers are turning to

A) B) C) D) E)

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individualized marketing. personalized marketing. mass marketing. micromarketing. macromarketing.

14) The advertising industry, as well as online publishers such as newspapers, magazines, blogs, and the myriad of websites available on the internet are very concerned over how ________________ may undermine their business model.

A) B) C) D) E)

streaming apps ad blockers paid ads music apps mobile apps

15) Most millennial and Gen Z-age consumers have grown up in a brand-conscious, mediaheavy, and information-filled world. They are actively seeking ways to ________ advertising.

A) B) C) D) E)

employ absorb learn embrace avoid

16) To increase sales, NW Inc. is looking for a carefully planned, controlled program, one that requires coordination of all seller-initiated efforts to set up channels of information and persuasion in order to sell goods and services. This program is better known as

A) B) C) D) E)

advertising. promotion. personal selling. marketing. public relations.

17) Before sending an advertising message to their audience, Productivity Advertising Agency is working with GSI Industries to better understand how the audience will interpret and respond to that message. This important because with the exception of direct-response advertising, the ________ nature of advertising makes it is difficult to get immediate feedback.

Version 1

A) B) C) D) E)

random personal private nonpersonal privileged

18) Venus Corporation is creating an advertising budget with the goal to reach a large number of customers. Productive Advertising Company advises them that the most cost-effective way to reach a mass market is with

A) B) C) D) E)

radio advertising. newspaper advertising. television advertising. mailer advertising. magazine advertising.

19) Success Advertising is working with Venus Corporation to create demand for their brand. Success is recommending a class of advertising that will emphasize the reasons consumers should purchase the Venus brand. This class of advertising is called

A) B) C) D) E)

trade advertising. professional advertising. business-to-business advertising. direct-response advertising. primary-demand advertising.

20) Circle Industries makes the tiles that solar panel manufacturers use to create their products. They are looking to expand their consumer base. The type of advertising that will help them reach potential customers interesting in using Circle tiles in the manufacture of their goods is called

Version 1

A) B) C) D) E)

trade advertising. professional advertising. business-to-business advertising. direct-response advertising. primary-demand advertising.

21) X-Ray Industries is coming out with a new model of x-ray machine that will reduce radiation exposure. What type of advertising will help them reach their audience?

A) B) C) D) E)

trade advertising professional advertising business-to-business advertising direct-response advertising primary-demand advertising

22) Creative Boutique has decided to change their inventory strategy. They are closing their storefronts to rely instead on their supply chain network of manufacturers to ship goods directly to Creative Boutique’s customers. Creative Boutique will now use ________ as their primary medium for reaching consumers.

A) B) C) D) E)

trade advertising professional advertising business-to-business advertising direct-response advertising primary-demand advertising

23) Over the last decade, Reflective Enterprises has evolved their marketing and distribution channels from retail stores only by adding both mobile apps and online catalogs. In addition, they strategically use these methods to influence a customer’s shopping experience, including research before a purchase and service after a sale. This direct-marketing approach is called

Version 1

A) B) C) D) E)

trade-oriented sales promotion. omnichannel retailing. customer-oriented sales promotion. mobile retailing. consumer-oriented sales promotions.

24) Abound Industries has selected an advertising method to stimulate short-term sales by offering customers samples and same-day coupons for immediate discount at point of purchase. This method is known as

A) B) C) D) E)

trade-oriented sales promotion. omnichannel retailing. customer-oriented sales promotion. mobile retailing. consumer-oriented sales promotions.

25) Abound Industries has multiple supply channels, including wholesalers, distributors, and retailers. They are running a sales contest to encourage these partners to stock and promote their products. This contest is an example of

A) B) C) D) E)

a trade-oriented sales promotion. omnichannel retailing. a customer-oriented sales promotion. mobile retailing. a consumer-oriented sales promotion.

26) An important part of the promotional mix is nonpersonal communications, or communications that are not directly paid for by the company. This is called ________; it usually comes from press releases, editorials, feature articles, or news releases.

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A) B) C) D) E)

paid media public relations personal selling publicity a touch point

27) Abound Industries continues to build their integrated marketing communications promotional mix strategy by looking at audience contacts. They also recognize that not all touch points are equally effective and can often be divergent in a company’s ability to control. They are currently trying to develop various strategies to anticipate ________, which are personal communications that come from friends, associates, neighbors, co-workers, or family members.

A) B) C) D) E)

intrinsic touch points unexpected touch points customer-initiated touch points extrinsic touch points company-created touch points

28) Environmental Movies just released a documentary on the impact of dying coral reefs on clownfish. Childhood fans of a popular animated clownfish, now grown and environmentally conscious millennials, and Gen Z-ers inundated social media with mentions, online reviews, and spurred media coverage creating greater interest in the film, extending the film’s time in the theater. Environmental Movies benefited from

A) B) C) D) E)

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paid media. brand media. owned media. advertising media. earned media.

29) Upstart Enterprises is working with Innovation Marketers to develop a promotional plan. Innovation is documenting where Upstart has been as a brand and their current position in the market. They have also held brainstorming sessions with Upstart leadership to identify where they intend to be in the next three years and how they anticipate getting there. Innovation is creating

A) B) C) D) E)

a promotional plan. a marketing plan. a promotional program. a communication plan. a marketing program.

30) Sum Company is reviewing their media-mix options to reach their target audience for cost effectiveness. They have created a series of goals for sales, market share, and profitability. Sum Company is writing

A) B) C) D) E)

a marketing plan. communication objectives. marketing objectives. a communication plan. a marketing program.

31) Mango Services is developing goals for their promotional program to take them through the next three years. They plan to create awareness of image and further define the attitudes and preferences of their current and potential customer base. Mango Services is writing

A) B) C) D) E)

32)

a marketing plan. communication objectives. marketing objectives. a communication plan. a marketing program.

Which of the following situations is an example of a marketing exchange?

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A) B) C) D) E)

The waitress gave Cyrus a menu and he placed his food order. Griffin helped Mandy replace the air filter in her lawn mower. Ken and Maggie gave their son an MP3 player for his birthday. Mrs. Maloney gave Larry a box of homemade fudge in return for painting her fence. Jenny asked Melisa if she could borrow her pen because hers had stopped working.

33) 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 must involve the exchange of money.

34)

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

35)

The four Ps of the marketing mix are product, price, promotion, and

Version 1

A) B) C) D) E)

36)

people. place. package. print. privilege.

Price, product, place, and promotion together form the

A) B) C) D) E)

points-of-parity. promotional mix. marketing mix. supply chain components. exchange mix.

37) Prior to the development of integrated marketing communications, which promotional function dominated in most companies?

A) B) C) D) E)

mass-media advertising sales promotion public relations publicity direct marketing

38) 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 their top management. They also opted for direct marketing on a project-to-project basis. The combination of these various promotional tools is commonly referred to as

Version 1

A) B) C) D) E)

mobile marketing. sales promotion activities. integrated marketing communications. omnichannel retailing. search advertising

39) The process of combining mass-media advertisements with other promotional elements such as direct marketing, public relations, and sales promotion is known as

A) B) C) D) E)

40)

media fragmentation. micromarketing. integrated marketing communications. social media. digital advertising.

Which of the following statements 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 describe a company’s products and services and assists in marketing the same. E) It involves dividing customers into similar subgroups based on their media usage, demographics, psychographics, and product usage.

41)

Which of the following statements is true of integrated marketing communication?

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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.

42) 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) B) C) D) E)

the marketing mix exchange integrated marketing communications the promotional mix cumulative prospect theory

43) 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) B) C) D) E)

brand equity local advertising selective-demand marketing communications integrated marketing communications professional advertising

44) In the advertising industry, terms such as new advertising, orchestration, and seamless communication were used to describe the concept of

Version 1

A) B) C) D) E)

45)

positioning. integration. channel conflict. relationship marketing. diffusion.

The 4As’ definition of integrated marketing communications focuses on

A) the organization 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.

46)

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 partners in the distribution channel and to slow down the rate of diffusion of new products among customers. E) use marketing to create a strong distribution network that is capable of destabilizing any competition.

47) According to the definition of integrated marketing communications (IMC) given by Don Schultz, which of the following statements is true of IMC?

Version 1

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.

48) 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, highstatus products. This is an example of a(n) ________ approach.

A) B) C) D) E)

direct marketing mobile marketing integrated marketing communications old-generation marketing mass media

49) ________ 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) B) C) D) E)

50)

Decentralized communication systems Bait-and-switch marketing approach Integrated marketing communications Mass-media advertising Customer newsletter service

To respond to media fragmentation, marketers are increasing their spending on

Version 1

A) B) C) D) E)

mass-media communication. television advertising. micromarketing. mass production. product packaging.

51) 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 innings.” These ads appear regularly on television and in print media. At the same time, UltraLong 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) B) C) D) E)

brand evangelism brand dilution brand language brand identity brand repositioning

52) ________ 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) B) C) D) E)

Brand evangelism Brand identity Brand extension Brand differentiation Brand engagement

53) 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.

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A) B) C) D) E)

54)

relationship cynicism promotion mobile sustainability

________ has long been the cornerstone of brand-building efforts for many companies.

A) B) C) D) E)

Interactive media Mass-media advertising Online marketing Product placement Personal selling

55) ________ is the coordination of all seller-initiated efforts to set up channels of information and persuasion to sell goods and services.

A) B) C) D) E)

Branding Product distribution Pricing Promotion Market segmentation

56) Traditionally, which of the following has been considered an element of the promotional mix?

A) B) C) D) E)

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packaging advertising direct marketing interactive media branding

57) Which element 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) B) C) D) E)

58)

advertising branding packaging publicity sales promotion

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.

59) The basic elements that are used to accomplish an organization’s marketing communication objectives are referred to as

A) B) C) D) E)

60)

the marketing mix. marketing strategy tools. the growth-share matrix. the promotional mix. the hype cycle.

Which the following factors is generally neglected through the use of advertising?

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A) B) C) D) E)

61)

ability to reach mass markets low cost per contact ability to create brand images and symbolism immediate feedback control of message content and media placement

Which of the following statements is true of advertising as a form of promotion?

A) B) C) D) E)

It has a low cost per contact. It is a nonpaid form of promotion. The sponsor or advertiser is not identified. immediate feedback and capability to close sales. It makes use of nontraditional media.

62) Clave Inc., a large soap manufacturing firm, has introduced a new soap known as Honeydew. Clave 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. The promotional budget is about $1,000,000. Which of the following forms of promotion should Clave use for the promotion of Honeydew?

A) B) C) D) E)

mass advertising direct marketing personal selling sales promotion publicity

63) Which of the following features of direct-response advertising differentiates it from other forms of advertising?

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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.

64)

The best-known and most widely discussed form of promotion is

A) B) C) D) E)

personal selling. sales promotion. direct marketing. advertising. publicity/public relations.

65) 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) B) C) D) E)

66)

advertising personal selling sampling couponing door-to-door selling

Which of the following statements is true of advertising?

A) B) C) D) E)

Version 1

Advertising attempts to create a personal relationship with the consumers. The nature and purpose of advertising are usually the same across various industries. Advertising is a valuable tool for building brand and company equity. Advertising is used only for the promotion of mass consumer products. One disadvantage of advertising is that it is extremely personal to consumers.

67) Advertising done by manufacturers of well-known brands on a countrywide basis or in most regions of the country to consumer markets is known as ________ advertising.

A) B) C) D) E)

professional trade business-to-business national direct-response

68) 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) B) C) D) E)

national advertising. primary-demand advertising. trade advertising. business-to-business advertising. professional advertising.

69) Local merchants use ________ advertising to encourage consumers to shop at a specific store, use a local service, or patronize a particular establishment.

A) B) C) D) E)

trade professional direct-response retail national

70) A to Z, a supermarket in New Jersey, placed a weekly advertisement in the local newspapers. The advertisement stated that A to Z would sell 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 Version 1

A) B) C) D) E)

national advertising. trade advertising. retail advertising. primary-demand advertising. direct-response advertising.

71) Advertising done for the purpose of building store traffic and encouraging consumers to make a purchase takes the form of ________ advertising.

A) B) C) D) E)

72)

trade facultative professional direct-action B2B

Which of the following statements 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.

73)

Retail or local advertising often takes the form of

A) B) C) D) E)

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trade advertising. selective-demand advertising. bait-and-switch advertising. direct-action advertising. indirect-response advertising.

74)

Primary-demand advertising is designed to

A) B) C) D) E)

influence the purchase of only industrial goods and services. stimulate demand for a general product class or entire industry. help launch a specific line extension. stimulate demand for existing products that are “dying.” create a market share gain for the industry leader.

75) In the context of advertising for consumer markets, ________ advertising focuses on creating demand for a specific company’s brand.

A) B) C) D) E)

primary-demand selective-demand trade professional industrial

76) 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) B) C) D) E)

trade advertising. primary-demand advertising. secondary-demand advertising. retail advertising. professional advertising.

77) The National Egg Association has been promoting the benefits of eggs for many years. It aims to educate customers about the nutritional value of eggs through ads that are aired in several states. It is making use of

Version 1

A) B) C) D) E)

78)

direct-response advertising. professional advertising. primary-demand advertising. selective-demand advertising. trade advertising.

Which of the following statements 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.

79)

Which of the following ads is an example of retail advertising?

A) Advertisement for 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) Advertisement for a discount at a restaurant located on the outskirts of San Diego placed in a newspaper

80) ________ advertising is targeted at individuals who influence the purchase of goods and services used to make other products.

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A) B) C) D) E)

Professional Primary-demand Retail Business-to-business Direct-response

81) 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) B) C) D) E)

retail direct-response business-to-business direct-mail primary-demand

82) 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) B) C) D) E)

business-to-business advertising. trade advertising. professional advertising. primary-demand advertising. direct-action advertising.

83) ________ 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.

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A) B) C) D) E)

84)

National Selective-demand Professional Trade Retail

Which of the following situations 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.

85)

Which of the following statements is true of direct marketing?

A) B) C) D) E)

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

86) 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?

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A) B) C) D) E)

advertising sales promotion direct marketing publicity pricing

87) A major tool 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) B) C) D) E)

88)

direct-response primary-demand business-to-business trade selective-demand

Which of the following statements 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.

89) ________ is a tool of direct marketing that calls customers directly to attempt to sell them products and services or qualify them as sales leads.

A) B) C) D) E)

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Bait advertising Buzz marketing Telemarketing Switch marketing B2B marketing

90)

Which of the following statements 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.

91) ________ includes those marketing activities that provide extra value or incentives for purchasing a product, such as coupons and premiums.

A) B) C) D) E)

Direct marketing Advertising Public relations Sales promotion Publicity

92) Sales promotions targeted at the ultimate users of a product, such as sampling, coupons, contests, or sweepstakes, are part of

A) B) C) D) E)

93) of

consumer-oriented sales promotion. trade-oriented sales promotion. buzz promotion. bait-and-switch sales promotion. channel-initiated sales promotion.

Foodie Inc. includes monthly coupons in its magazine advertisements. This is an example

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A) B) C) D) E)

94)

consumer-oriented sales promotion. industrial sales promotion. business-oriented sales promotion. trade-oriented sales promotion. service-oriented sales promotion.

Which of the following statements 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.

95) Sales promotion programs targeted at marketing intermediaries such as wholesalers, distributors, and retailers are part of

A) B) C) D) E)

consumer-oriented sales promotion. trade-oriented sales promotion. user-oriented sales promotion. intrinsic sales promotion. bait-and-switch sales promotion.

96) ________ refers to nonpersonal communication regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship.

A) B) C) D) E)

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Advertising Sales promotion Publicity Public relations Telemarketing

97)

Which statement correctly states a primary difference between publicity and advertising?

A) B) C) D) E)

Unlike advertising, publicity is done only by retailers. Unlike publicity, advertising does not utilize mass media. Unlike advertising, publicity is not paid for by the sponsoring organization. Unlike advertising, publicity is institutional in character. Unlike publicity, advertising leads to less skepticism among consumers.

98) Which of the following statements correctly identifies a similarity between publicity and advertising?

A) B) C) D) E)

99)

Both are nonpaid forms of communication. Both are run by an unidentified sponsor. Both involve nonpersonal communication to a mass audience. Both are not directly paid for by the company. Both frequently provide an opportunity for immediate feedback.

One of the primary advantages inherent in the use of publicity is its

A) B) C) D) E)

ability to be personalized. credibility. negligible variable costs. tangibility. ability to be closely controlled.

100) Because of the perceived objectivity of the source, which element of the promotional mix is usually regarded as most credible?

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A) B) C) D) E)

101)

advertising publicity packaging sales promotion direct marketing

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.

102) Controversial Coffee Company has released new advertising that features their efforts to support human rights, fair trade, and environmental sustainability. This type of promotion, called ________, involves managing relationships with a number of important audiences, including investors, employees, suppliers, communities, and governments (federal, state, and local) as well as consumers.

A) B) C) D) E)

paid media public relations personal selling publicity touch point

103) 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

Version 1

A) B) C) D) E)

sales promotion. digital marketing. personal selling. public relations. publicity.

104) A review of a movie in a local magazine or on a popular daily television show is an example of

A) B) C) D) E)

105)

personal selling. publicity. direct marketing. public relations. sales promotion.

Which of the following statements correctly 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 with the audience. C) Publicity is not always under an organization’s control and can be unfavorable. D) Publicity is not useful with a market segmentation strategy. E) Publicity makes a market aggregation strategy ineffective.

106) A lawsuit charged a mortgage lender with racism because it allegedly charged higher rates to African American borrowers than to other borrowers. News of the lawsuit was reported by the wire service, and it appeared in several newspapers. This news report is an example of

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A) B) C) D) E)

sales detraction. negative advertising. cause selling. negative publicity. bait-and-switch advertising.

107) 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) B) C) D) E)

public relations. advertising. publicity. sales promotion. cause marketing.

108) 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) B) C) D) E)

109)

buzz marketing. reactive disinformation. bait-and-switch marketing. public relations. sales promotion.

Which of the following statements is true of public relations?

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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.

110) ________ 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) B) C) D) E)

Advertising Sales promotion Publicity Interactive marketing Personal selling

111) Face-to-Face Cosmetics is a company founded on contact between the buyer and the seller either face to face or through telecommunications. The value of this method of promotion is the seller can see or hear the potential buyer’s reactions, allowing them to modify or tailor the message. Known as ________, this type of program may be coordinated with media advertising, digital marketing, and sales promotion in an integrated marketing communications program.

A) B) C) D) E)

paid media public relations personal selling publicity touch point

112) ________ 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.

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A) B) C) D) E)

Advertising Sales promotion Public relations Publicity Personal selling

113) 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.

114) The promotional mix element that allows for the most immediate and precise feedback from the customer is

A) B) C) D) E)

advertising. sales promotion. public relations. publicity. personal selling.

115) Which of the following promotional tools best suits a business-to-business marketer who sells expensive, risky, and often complex products?

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A) B) C) D) E)

print advertising sales promotion public relations personal selling publicity

116) 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.

117) 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) B) C) D) E)

the ability to target specific markets the ability to target specific customer types autonomy from the advertising or marketing department the ability to respond to immediate feedback indirect contact between the buyer and the seller

118) 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 is

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A) B) C) D) E)

a service point. an inference point. a reference point. a touch point. a display point.

119) According to Tom Duncan’s basic categories of contact or touch points, which term 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) B) C) D) E)

channel-created touch points unexpected touch points company-created touch points intrinsic touch points customer-initiated touch points

120) According to Tom Duncan’s basic categories of contact or touch points, which term best describes interactions that occur with a company or brand during the process of buying or using the product or service?

A) B) C) D) E)

intrinsic touch points company-created touch points unexpected touch points customer-initiated touch points distributive touch points

121) 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?

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A) B) C) D) E)

company-created touch point intrinsic touch point user-created touch point unexpected touch point customer-initiated touch point

122) 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) B) C) D) E)

company-created touch point planned touch point intrinsic touch point unexpected touch point customer-initiated touch point

123) 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) B) C) D) E)

company-created touch point intrinsic touch point extrinsic touch point unexpected touch point customer-initiated touch point

124) Reflective Enterprises is looking at touch point channels where they can use their media budget to leverage their target audience through social media ads, online banner ads, and video ads. This type of media is called

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A) B) C) D) E)

paid media. brand media. owned media. advertising media. earned media.

125) Face-to-Face Cosmetics has been successful with their website. Now they are posting a weekly YouTube lesson and have reached out to their customer base, encouraging them follow the company on Instagram. Face-to-Face Cosmetics is using

A) B) C) D) E)

paid media. brand media. owned media. advertising media. earned media.

126) 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.

127) ________ involves the process for planning, executing, evaluating, and controlling the use of various promotional-mix elements to effectively reach target audiences.

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A) B) C) D) E)

128)

The first step in the IMC planning process is the

A) B) C) D) E)

129)

Marketing information system management Integrated marketing communications management Customer relationship management Differential communications management Communications process accounting

analysis of the communication process. determination of a budget. review of the marketing plan. development of an advertising message. distribution of sales promotion materials.

Typically, a marketing plan includes

A) B) C) D) E)

a corporate mission statement. individual job specifications. a media schedule. a detailed situation analysis. articles of incorporation.

130) The stage of the IMC planning process that comes immediately after the overall marketing plan is reviewed is the

A) B) C) D) E)

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integration and implementation of marketing communications strategies. development of marketing job descriptions. promotional program situation analysis. budget determination. analysis of market forecasts.

131) According to an integrated marketing communications planning model, which activity is best associated with the review of the marketing plan step?

A) B) C) D) E)

integrating promotional mix strategies analyzing source, message, and channel factors assessing environmental influences setting direct-marketing objectives purchasing media time and space

132) According to an integrated marketing communications planning model, which activity is best associated with the step “integrate and implement marketing communications strategies”?

A) B) C) D) E)

purchasing media time and space analyzing source, message, and channel factors allocating tentative budgets identifying niche market segments establishing communication goals and objectives

133) According to an integrated marketing communications planning model, which activity is best associated with the step “analysis of promotional program situation”?

A) B) C) D) E)

developing selling roles and responsibilities setting advertising objectives analyzing consumer behavior purchasing media time and space setting a tentative marketing communications budget

134) According to an integrated marketing communications planning model, which activity is best associated with the step “analysis of communications process”?

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A) B) C) D) E)

allocating tentative budgets analyzing source, message, and channel factors competitive analysis designing and implementing direct-marketing programs external analysis

135) According to an integrated marketing communications planning model, which activity is best associated with the step “developing integrated marketing communications program”?

A) B) C) D) E)

136)

Which of the following is an area of focus in an internal analysis?

A) B) C) D) E)

137)

examining overall marketing plan and objectives internal analysis analyzing receiver’s response processes determining advertising budget external analysis

product/service offering positioning strategies competitors market segments consumer buying patterns

Which question is a firm likely to ask during an external analysis?

A) B) C) D) E)

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What are the strengths and weaknesses of our product or service? Who influences the decision to buy our product? How does our product or service compare with competition? What are our product’s key benefits? Does our product have unique selling points?

138) Once marketing and communication objectives have been set, what is the next stage in the IMC planning process?

A) B) C) D) E)

budget determination developing the advertising message reviewing the marketing plan recruitment of marketing and promotion personnel development of the IMC program

139) The development of the advertising message that the marketer wants to convey to its target audience is called the

A) B) C) D) E)

creative strategy. media strategy. distribution strategy. channel strategy. user strategy.

140) ________ involves determining which communication channels will be used to deliver the advertising message to the target audience.

A) B) C) D) E)

Media strategy Creative strategy Reactionary strategy Intrinsic strategy User strategy

141) What is the final stage in the integrated marketing communications (IMC) planning process?

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A) B) C) D) E)

reviewing the marketing plan and situation analysis determining the promotional budget monitoring, evaluating, and controlling the promotional program developing the integrated marketing communications program determining the media strategy

142) Which of following statements 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.

143) Rebecca 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) B) C) D) E)

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internal analysis external analysis communication process analysis communication objectives budget determination

Answer Key Test name: chapter 1 1) FALSE 2) TRUE 3) FALSE 4) FALSE 5) TRUE 6) C 7) D 8) B 9) D 10) B 11) D 12) E 13) D 14) B 15) E 16) B 17) D 18) C 19) E 20) C 21) B 22) D 23) B 24) E 25) A 26) C Version 1

27) B 28) E 29) B 30) C 31) B 32) D 33) C 34) D 35) B 36) C 37) A 38) C 39) C 40) B 41) B 42) C 43) D 44) B 45) E 46) A 47) D 48) C 49) C 50) C 51) D 52) B 53) A 54) B 55) D 56) B Version 1

57) A 58) A 59) D 60) D 61) A 62) A 63) A 64) D 65) A 66) C 67) D 68) A 69) D 70) C 71) D 72) C 73) D 74) B 75) B 76) B 77) C 78) A 79) E 80) D 81) C 82) C 83) D 84) C 85) A 86) C Version 1

87) A 88) A 89) C 90) C 91) D 92) A 93) A 94) B 95) B 96) C 97) C 98) C 99) B 100) B 101) C 102) B 103) E 104) B 105) C 106) D 107) A 108) D 109) C 110) E 111) C 112) E 113) B 114) E 115) D 116) E Version 1

117) D 118) D 119) C 120) A 121) D 122) C 123) E 124) A 125) C 126) C 127) B 128) C 129) D 130) C 131) C 132) A 133) C 134) B 135) D 136) A 137) B 138) A 139) A 140) A 141) C 142) D 143) A

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Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) Market opportunities are areas where the company believes that customer needs and opportunities are being satisfied. ⊚ ⊚

true false

2) 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

The more marketers segment the market, the less precise is their understanding of it. ⊚ ⊚

true false

4) When positioning by product class, marketers only position against brands and not against other product categories. ⊚ ⊚

true false

5) Trade advertising focuses on sales promotion efforts directed toward the ultimate consumer. ⊚ ⊚

true false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 6) Inroads Enterprises understands the importance of building specific marketing programs and policies that reflect their corporate strategy. To guide how they will allocate their resources, they are creating Version 1

A) B) C) D) E)

competitive advantage. market segments. strategic marketing channels. market opportunities. a strategic marketing plan.

7) Inroads Enterprises is now ready to perform a detailed assessment of the current marketing conditions facing the company and its product lines. They hope to gain a better understanding of target markets to pursue, better known as

A) B) C) D) E)

competitive advantage. market segments. strategic marketing channels. market opportunities. strategic marketing plan.

8) Inroads Enterprises has been working with Advertising Innovators to review competition in various market segments, noting demand trends. They have recognized that their view of the marketplace as one large homogeneous group of customers is limiting their growth. Advertising Innovators recommends that Inroads expand their ________ by tailoring their marketing to meet the needs and demand trends of different market segments.

A) B) C) D) E)

competitive advantage market segmentations marketing channels market opportunities media mix

9) Advertising Innovators is recommending an advertising campaign to Inroad Enterprises that creates and maintains product differentiation by identifying their edge in providing superior customer service. This approach will leverage Inroad’s

Version 1

A) B) C) D) E)

competitive advantage. market segments. strategic marketing channels. market opportunities. a strategic marketing plan.

10) Advertising Innovation is recommending that their client, Inroad Enterprises, market to three different groups of people. By identifying the specific needs of each group, they can create an individualized promotional effort. This is called

A) B) C) D) E)

matrix marketing. micro marketing. target marketing. opportunity marketing. competitive marketing.

11) Inroad has agreed to employ a typical target marketing process. The four steps of this process are segmenting the market, targeting specific segments, positioning one's product or service through marketing strategies, and the most challenging—identifying markets with

A) B) C) D) E)

market segmentation. growth potential. lifestyle. unfulfilled needs. a competitive advantage.

12) Inroad Enterprises is seeing the value of establishing a common ground with consumers to identify specific requirements as inputs to their communication programs. By segregating consumers by lifestyle and need, what type of strategy is Inroads using?

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A) B) C) D) E)

matrix marketing micro marketing target marketing opportunity marketing competitive marketing

13) Success Advertising recommends that Abound Industries look at their target consumer audience by dividing it into two distinct groups—one that will have similar responses and one that has common needs. This is a form of

A) B) C) D) E)

competitive advantage. market segmentation. marketing channels. market opportunities. media mix.

14) Abound Industries has data indicating that their customers have different buying habits depending on where they live, so the company is dividing their marketing efforts by neighborhood. This approach is ________ segmentation.

A) B) C) D) E)

geographic behavioristic demographic psychographic benefit

15) The marketing team at Clear Cite Industries is interested in reaching consumers who have various lifestyles, so their marketing approach should use ________ segmentation.

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A) B) C) D) E)

geographic behavioristic demographic psychographic benefit

16) Clear Cite Industries has engaged Productivity Marketing to analyze the activities, interests, and opinions of their consumers; Productivity’s assignment is better known as

A) B) C) D) E)

market segmentation. growth potential. lifestyle determination. unfulfilled needs. a competitive advantage.

17) Firm Software Company has hired Productivity Marketing to analyze and divide their data on consumer groups by brand loyalty combined with demographic criteria to develop profiles of market segments. Productivity Marketing is performing ________ segmentation.

A) B) C) D) E)

geographic behavioristic demographic psychographic benefit

18) Sunshine Vacation Rentals is a major purchaser of Wisconsin Paper products. As one of a few customers that buys a disproportionate amount of their products, Sunshine represents the general rule that ________ of a company’s product sales volume.

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A) B) C) D) E)

10 percent of buyers consume 90 percent 20 percent of buyers consume 80 percent 45 percent of buyers consume 55 percent 75 percent of buyers consume 25 percent 99 percent of buyers consume 1 percent

19) Reflective Enterprises is working with Productivity Marketing to create separate strategies for several of their consumer segments. This approach is called

A) B) C) D) E)

concentrated marketing. positioning. a salient attribute. differentiated marketing. undifferentiated marketing.

20) Money Backed Enterprises wants to capture a large share of a particular market segment. They are working with Productivity Marketing to accomplish this goal by using

A) B) C) D) E)

concentrated marketing. positioning. salient attributes. differentiated marketing. undifferentiated marketing.

21) Creating a promotional program for footwear that can go from bicycling to the office to all-day wear demonstrates the strategy of positioning by

A) B) C) D) E)

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product class. product symbolism. product user. product equity. product repositioning.

22) WriteOn Stationery is working with Advertising Innovators to create an ad campaign that emphasizes the high quality and smooth elegance of writing on their brand’s 100 percent cotton papers. This type of positioning by price/quality is used for

A) B) C) D) E)

premium brands. product symbolism. one voice. brand equity. repositioning.

23) Mango Services is expanding their product line from selling whole mangos as a fruit compliment to meat and cheese on a charcuterie platter to headlining the flavor profile for yogurt, kefir, and even almond milk, all produced by the farmers of northern California. This is positioning by

A) B) C) D) E)

product class. product symbolism. product user. product equity. product repositioning.

24) Creative Networks is creating a promotional program that compares their product’s benefits to the benefits of Creative Boutique’s product, noting Creative Networks relies on only certified made-in-the-USA suppliers. This campaign demonstrates the ________ approach to positioning.

A) B) C) D) E)

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competition product symbolism salient attributes brand equity repositioning

25) Money Backed Enterprises has hired Productivity Marketing to analyze their market potential by segmenting the consumers of their products on the basis of family size, education, and income. This approach is called

A) B) C) D) E)

geographic segmentation. behavioristic segmentation. demographic segmentation. psychographic segmentation. benefit segmentation.

26) Reflective Enterprises has hired Productivity Marketing to create ads portraying attributes that consumers seek in their products. For example, their front-loading washing machines are not only energy efficient and easy to use, but they allow the consumer to add articles of clothing after the wash cycle has started. By emphasizing valuable features, Productivity Marketing is demonstrating

A) B) C) D) E)

geographic segmentation. behavioristic segmentation. demographic segmentation. psychographic segmentation. benefit segmentation.

27) Creative Boutiques brand has had a long-standing consumer base aged 12–21. The boutique market has become saturated by competition causing Creative Boutiques to expand their produce line by partnering with a celebrity designer of premium brand business casual wear. They are also changing the name of their stores in metro market high-end malls to Creative Designs. This positioning strategy is called

A) B) C) D) E)

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premium brands. product symbolism. one voice. brand equity. repositioning.

28) Blueberry Designs is known for their trademark “BD” predominantly placed on each garment and their patent Blueberry-blue on the sole of every shoe. This positioning strategy is called

A) B) C) D) E)

premium brands. product symbolism. one voice. brand equity. repositioning.

29) “Money Backed Enterprises is a name you can trust.” This campaign slogan has strengthened consumer favor for the company’s products creating brand recognition of the Money Backed name and associated product line. This marketing program is an example of

A) B) C) D) E)

premium brands. product symbolism. one voice. brand equity. repositioning.

30) CL Ads is training six new interns to support their marketing managers’ increased customer load, with the hope of hiring one or two into full-time positions in the next six months. The interns are learning how to estimate the cost of advertising using a simple formula of quality, competition, and advertising with the guideline that lower prices call for low expenditures and premium prices for more costly promotions. This practice supports the IMC perspective of

A) B) C) D) E)

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premium brands. product symbolism. one voice. brand equity. repositioning.

31) GSI Distributors uses a team of sales representatives to reach out to resellers to purchase their products. They have recently started working with Innovation Marketers to create ads to be placed in reseller journals and newspapers. GSI Distributions is using

A) B) C) D) E)

promotional push strategy. indirect channels. promotional pull strategy. direct channels. trade advertising.

32) Sum Company uses a network to distribute their products to big club wholesale centers and a number of grocery chains. This type of promotional strategy is called

A) B) C) D) E)

promotional push strategy. indirect channel. promotional pull strategy. direct channel. trade advertising.

33) According to the marketing and promotions process model, the marketing process begins with the

A) B) C) D) E)

development of the brand equity. development of a marketing strategy. development of the promotional mix. determination of the promotional budget. establishment of a nano-campaign marketing strategy.

34) According to the marketing and promotions process model, in which stage does the company decide the product or service areas and particular markets where it wants to compete?

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A) B) C) D) E)

development of a marketing strategy and analysis development of the target marketing process allocation of advertising budget development of the marketing planning program creation of a positioning strategy

35) The Manischewitz Company broadened its marketing efforts to capture more of the mainstream market following ________, which identified favorable demand trends for ethnic foods.

A) B) C) D) E)

a positioning strategy an opportunity analysis a budget analysis a promotional push strategy a promotional pull strategy

36) A detailed assessment of the current marketing conditions facing the company, its product lines, or its individual brands is

A) B) C) D) E)

a matrix analysis. a micro analysis. a situation analysis. an opportunity analysis. a competitive analysis.

37) 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.

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A) B) C) D) E)

matrix analysis micro analysis situation analysis challenge analysis competitive analysis

38) Which term is best defined as areas where favorable demand trends exist, customer needs and wants are not being satisfied, and a company thinks it can compete effectively?

A) B) C) D) E)

39)

market segmentations marketing channels marketing stubs market economics market opportunities

A situational analysis

A) B) C) D) E)

does not include an assessment of a company's product lines. usually starts with a positioning strategy. does not include an assessment of the conditions facing the company. typically involves creating branding strategies. includes an assessment of a company's individual brands.

40) A routine market study conducted by CL Foods noted that Chinese and Indian food products were in high demand in American society. To take advantage of this demand, CL Foods manufactured and sold these food items locally. In this scenario, the company is taking advantage of a

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A) B) C) D) E)

market opportunity. market aggregation. market assimilation. marketing buzz. market threat.

41) FunZone Inc. recognized that the ticketing process used at fair grounds was complicated and highly time consuming. The company identified and developed an easy-to-use SmartCard to make the ticketing process easier. Each swipe automatically deducts the cost of a ride. According to this scenario, FunZone has recognized a

A) B) C) D) E)

market opportunity. marketing buzz. marketing engagement. marketing channel. market threat.

42) 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) B) C) D) E)

market aggregation. marketing assimilation. competitive advantage. cross-merchandising strategy. market disintermediation.

43) ________ 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.

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A) B) C) D) E)

Market aggregation Marketing assimilation Brand extensions Competitive advantage Market disintermediation

44) 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) B) C) D) E)

achieving a competitive advantage. practicing cross-merchandising strategy. creating market space. practicing bait-and-switch marketing. establishing a marketing stub.

45) Something unique or special a firm possesses or does that gives it an edge over other firms in a similar industry is known as

A) B) C) D) E)

competitor indexing. switch marketing. competitive advantage. marketing stub. bait-and-switch marketing.

46) The strong brand images of Apple, Samsung, Nike, BMW, and McDonald's give them a ________ in their respective markets.

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A) B) C) D) E)

competitive advantage market opportunity micro advantage macro analysis marketing challenge

47) John & Bauer Inc., manufacturers of health drugs, make 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 gave the company a

A) B) C) D) E)

48)

The first step in the target marketing process is to

A) B) C) strategy. D) E)

49)

market engagement. cross-merchandising opportunity. competitive advantage. marketing assimilation. competitive index.

develop positioning strategies. request government approval. determine whether to use a market segmentation strategy or a mass marketing identify markets with unfulfilled needs. develop new products.

The market segmentation process

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A) B) actions. C) D) E)

divides a market into distinct groups that have heterogeneous needs. divides a market into distinct groups that will respond similarly to marketing offers one version of the product to all markets. creates products for several markets that have independent needs. positions products in the minds of prospects and customers.

50) Directing a company's efforts toward one or more groups of customers who share common needs is known as

A) B) C) D) E)

cross-merchandising. competitor indexing. mass customization. target marketing. cross-branding.

51) ________ is dividing a market into distinct groups that (1) have common needs, and (2) will respond similarly to a marketing action.

A) B) C) D) E)

Market segmentation Competitor indexing Mass customization Cross merchandising Cross-branding

52) Dividing the market into units such as nations, states, counties, or even neighborhoods is known as

Version 1

A) B) C) D) E)

53)

Which of the following is a geographic variable for segmentation of a market?

A) B) C) D) E)

54)

demographic segmentation. psychographic segmentation. quantified aggregation. lifestyle aggregation. geographic segmentation.

family size occasion county age gender

Which of the following is a geographic segmentation variable?

A) B) C) D) E)

income neighborhood sex education involvement

55) 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) B) C) D) E)

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demographic segmentation. psychographic segmentation. sociocultural segmentation. geographic segmentation. undifferentiated marketing.

56) 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. Based on the company’s desire to target specific regions, which segmentation approach would be best?

A) B) C) D) E)

demographic socioeconomic personality geographic behavioristic

57) 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) B) C) D) E)

58)

geographic segmentation. lifestyle segmentation. socioeconomic segmentation. demographic segmentation. usage segmentation.

Which of the following is a primary variable of demographic segmentation?

A) B) C) D) E)

lifestyle personality region marital status involvement

59) Division of the market based on age, gender, household size, and other measurable characteristics is known as

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A) B) C) D) E)

demographic segmentation. psychographic segmentation. socioeconomic segmentation. geographic segmentation. undifferentiated segmentation.

60) Jim's Inc., a travel agency in Texas, offers trips designed specifically for couples. In this scenario, the company is using ________ segmentation.

A) B) C) D) E)

geographic demographic lifestyle behavior personality

61) 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) B) C) D) E)

geographic demographic socioeconomic behavioristic personality

62) When AARP, The Magazine, targets the 34 percent of the population who are 50+, it is using a ________ segmentation strategy.

A) B) C) D) E)

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demographic socioeconomic behavior personality geographic

63)

Which of the following is a variable of the demographic segmentation strategy?

A) B) C) D) E)

personality marital status values lifestyle region

64) 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. Enliven is using which types of segmentation?

A) B) C) D) E)

benefit and demographic psychographic and geographic geographic and psychographic socioeconomic and psychographic demographic and psychographic

65) Dividing the market on the basis of personality, lifecycles, and/or lifestyles is referred to as ________ segmentation.

A) B) C) D) E)

66)

geographic demographic psychographic socioeconomic behavioral

________ segmentation divides a market on the basis of lifestyles.

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A) B) C) D) E)

Geographic Psychographic Benefit Demographic Socioeconomic

67) 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) B) C) D) E)

68)

With respect to psychographic segmentation of markets, AIO stands for

A) B) C) D) E)

69)

geographic psychographic benefit socioeconomic demographic

activities, innovation, and opinions. activities, interests, and opportunities. activities, innovations, and opportunities. activities, interests, and opinions. actions, interests, and opinions.

Which of the following is a primary variable used in psychographic segmentation?

A) B) C) D) E)

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income lifestyles education marital status age

70) 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) B) C) D) E)

71)

benefit psychographic socioeconomic undifferentiated demographic

Which of the following is a primary variable defined in psychographic segmentation?

A) B) C) D) E)

personality income education family size gender

72) ________ segmentation divides consumers into groups according to their usage, loyalties, or buying responses to a product.

A) B) C) D) E)

Benefit Geographic Demographic Behavioristic Psychographic

73) A company that divides its target markets based on their perceived level of loyalty is using

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A) B) C) D) E)

benefit segmentation. geographic segmentation. socioeconomic segmentation. behavioristic segmentation. outlet segmentation.

74) 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) B) C) D) E)

75)

behavioristic demographic benefit socioeconomic psychographic

Degree of usage as a basis of segmentation is best reflected by the

A) B) C) D) E)

VALS principle. iceberg principle. mirror image rule. rule of equity. 80–20 rule.

76) ________ 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) B) C) D) E)

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Geographic Behavioristic Demographic Psychographic Benefit

77)

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.”

78) 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) B) C) D) E)

demographic geographic socioeconomic benefit sociocultural

79) ________ segmentation is the grouping of customers on the basis of attributes sought in a product.

A) B) C) D) E)

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Benefit Geographic Socioeconomic Demographic Lifestyle

80) 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) B) C) D)

benefit demographic geographic socioeconomic

81) 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 using ________ segmentation.

A) B) C) D) E)

benefit demographic geographic behavioristic socioeconomic

82) The fact that some consumers want flavored bottled water and others want it with added minerals provides an opportunity for ________ segmentation.

A) B) C) D) E)

83)

socioeconomic benefit geographic psychographic demographic

Which of the following is a primary variable considered in benefit segmentation?

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A) B) C) D) E)

attributes sought income lifestyle birth era marital status

84) According to the market coverage alternatives, ________ involves ignoring segment differences and offering just one product or service for the entire market.

A) B) C) D) E)

bait-and-switch marketing concentrated marketing micromarketing neuromarketing undifferentiated marketing

85) 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) B) C) D) E)

86)

concentrated marketing undifferentiated marketing bait-and-switch marketing niche marketing psychographic marketing

Which of the following statements 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.

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87) With respect to the market coverage alternatives, ________ involves developing separate marketing strategies for a number of segments.

A) B) C) D) E)

differentiated marketing undifferentiated marketing concentrated marketing buzz marketing B2B marketing

88) 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) B) C) D) E)

concentrated marketing. loyalty marketing. buzz marketing. bait-and-switch marketing. differentiated marketing.

89) 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) B) C) D) E)

a concentrated market. a differentiated market. a buzz market. an undifferentiated market. a mass market.

90) ________ is used when the firm selects one segment and attempts to capture a large share of the market.

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A) B) C) D) E)

91)

Mass marketing Undifferentiated marketing Concentrated marketing Differentiated marketing Bait-and-switch marketing

Concentrated marketing involves focusing marketing efforts on

A) B) C) D) E)

different countries. one particular segment. mass markets. various segments. different counties.

92) Star Furniture designs and sells bedroom furniture for people who are over six feet tall, attempting to capture a large share of this relatively small target market. Which strategy is the company employing?

A) B) C) D) E)

differentiated marketing bait-and-switch marketing undifferentiated marketing concentrated marketing mass marketing

93) 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.

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A) B) C) D) E)

94)

differentiated undifferentiated concentrated mass loyalty

Which of the following statements is true of concentrated marketing strategies?

A) B) C) D) E)

They are used to promote multiple products in varied markets. They are used as a precursor to undifferentiated marketing. They usually involve only a single segment. They attempt to catch a minority share in the market. They are synonymous with undifferentiated marketing strategies.

95) Outlander Inc. manufactures laptop 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 marketing strategy has Outlander adopted?

A) B) C) D) E)

bait-and-switch marketing undifferentiated marketing concentrated marketing buzz marketing differentiated marketing

96) ________ 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.”

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A) B) C) D) E)

97)

Branding Proximity mapping Drip marketing Segmentation Positioning

Which of the following statements 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.

98)

A brand's market position refers to its

A) B) C) D) E)

relative market share. location on store shelves. image in the mind of the customers. distribution intensity. stage in the product lifecycle.

99) ________ relates to the image of a product and/or brand relative to competing products or brands.

A) B) C) D) E)

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Segmentation Positioning Neuromarketing Branding Merchandising

100) Momentum, a car manufacturer, positions one of its convertibles as “the best natural tanning tool known to man.” This positioning strategy is based on

A) B) C) D) E)

product attributes and benefits. cultural symbols. product user. price/quality. product class.

101) 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) B) C) D) E)

product class. product attributes and benefits. price/quality. competitor. cultural symbol.

102) MusC, a whey protein supplement, is positioned as a zero-carb muscle recovery drink. MusC is using a ________ positioning strategy.

A) B) C) D) E)

product class product attributes and benefits price/quality competitor cultural or national symbol

103) Flash Parcel Service (FPS) built its advertising campaign around the slogan “Our business quality speaks the language of speed.” The company positioned itself based on the speed with which it delivers the service. The FPS positioning strategy is based on

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A) B) C) D) E)

cultural symbols. demographics. product class. product attributes. socioeconomics.

104) Appeal Automobiles introduced a new car into the market. In an attempt to attract new buyers, the company stressed that the new car has side-door air bags. Its focus on safety illustrates a strategy of positioning by

A) B) C) D) E)

cultural or national symbols. demographics. price-value. product attributes and benefits. competitor.

105) Henry's Supermarkets have been very effective in positioning themselves as stores that offer superior products at a discounted rate. Henry’s strategy reflects positioning based on

A) B) C) D) E)

benefit. applications. use. price/quality. product class.

106) International fast-food chain Sammy's Burgers sells the Quarter Burger, so named because it contains a patty that weighs a quarter of a pound. The burger sells for $1 on weekdays. With reference to the various positioning strategies, Sammy's quarter-pound burger is positioned by

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A) B) C) D) E)

competition. demographics. product user. price/quality. product class.

107) 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) B) C) D) E)

product class. product use. price/quality. competitor. cultural symbol.

108) 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) B) C) D) E)

quality. use or application. product class. competition. cultural symbols.

109) Athletic shoes advertised specifically to be used on tennis courts, for running, or for walking are using positioning strategy based on

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A) B) C) D) E)

price/quality. use or application. product class. demographics. cultural symbols.

110) 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) B) C) D) E)

product class. product user. price/quality. applications. cultural symbols.

111) 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) B) C) D) E)

product class. product use. product price. product competition. product applications.

112) 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

Version 1

A) B) C) D) E)

demographics. cultural symbols. product user. competition. product class.

113) 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) B) C) D) E)

product user. product demographics. cultural symbols. product class. distribution intensity.

114) 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) B) C) D) E)

demographics cultural symbols competitor price product class

115) The use of comparative advertising has become increasingly more common. Which positioning strategy does this kind of advertising reflect?

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A) B) C) D) E)

positioning by product user positioning by product class positioning by competitor positioning by price/quality positioning by cultural symbol

116) When travelers think of Gallivant Airlines, an Australian airline, the first thing that comes to their mind is the kangaroo. The strong association between the kangaroo and Gallivant Airlines indicates that the airline is receiving the benefit of positioning by

A) B) C) D) E)

product class. use/application. cultural symbol. product attribute. competitor.

117) Motor Corp., an automobile manufacturer, launched an ad campaign that stated, “We’re not in first place yet, so we try harder.” In this campaign, the company is positioning itself based on

A) B) C) D) E)

118)

price/quality. use or application. competition. product class. distribution intensity.

Jolly Green Giant, the Keebler elves, and Mr. Peanut are all examples of positioning by

Version 1

A) B) C) D) E)

price/quality. use or application. product class. distribution intensity. cultural symbols.

119) Many customers had the perception that Venus Corporation was simply a hardware manufacturer, but Venus wants customers to see it as a services and technology provider. So, the company engaged in a multimillion-dollar campaign to alter its image. In this scenario, Venus is

A) B) C) D) E)

using a repositioning strategy. segmenting the market into niche sectors. adopting a concentrated strategy. adopting an undifferentiated strategy. employing product class segmentation.

120) 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) B) C) D) E)

121)

used a repositioning strategy. employed product class positioning. engaged in positioning with cultural symbols. adopted an undifferentiated strategy. employed geographic segmentation.

Which of the following statements is true of repositioning?

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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.

122) Which of the following marketing-mix elements refers to a bundle of benefits or values that satisfies the needs of consumers?

A) B) C) D) E)

price promotion people product process

123) Offerings, which may come in the form of a service, a cause, or even a person, represent which aspect of the marketing mix?

A) B) C) D) E)

price promotion people product process

124) The meaning a consumer attributes to a product or brand and what he or she experiences in purchasing it is known as

A) B) C) D) E)

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functional utility. product quality. brand extension. product symbolism. product utility.

125)

Which of the following statements 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.

126)

“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.

127)

Which of the following statements is true of brand equity?

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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.

128)

Which of the following statements 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.

129) The marketing mix variable that deals with what a consumer must give up in order to purchase a product or service is

A) B) C) D) E)

130)

packaging. price. promotion. distribution. production.

Which of the following statements is true about packaging?

Version 1

A) B) C) D) E)

131)

The package cannot be used as a branding tool. The package lacks in offering benefits like economy and storage. The package is what the consumer must give up to purchase a product. The package is often the consumer's first exposure to the product. The package must not divulge information relating to its contents.

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.

132) 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.

133) ________ are sets of interdependent organizations involved in the process of making a product or service available for consumption.

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A) B) C) D) E)

Marketing channels Marketing segments Marketing facilitators Marketing sectors Marketing programs

134) 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 using

A) B) C) D) E)

a direct channel of distribution. an indirect channel of distribution. a bait-and-switch marketing channel. a direct-response advertising medium. a reseller channel.

135) Breeze Corp., a manufacturer of ceiling fans, sells its products to retailers that in turn sell them to the final consumers. Breeze is using

A) B) C) D) E)

a geographic market segmentation. an indirect channel of distribution. a single channel medium. a direct-response advertising medium. a demographic market segmentation.

136) ________ are programs designed to persuade the retailer to promote a manufacturer's products.

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A) B) C) D) E)

Promotional pull strategies Bait marketing strategies Buzz marketing strategies Promotional push strategies Switch marketing strategies

137) 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 illustrates a

A) B) C) D) E)

demographic segmentation. promotional pull strategy. loyalty marketing strategy. bait marketing strategy. promotional push strategy.

138) 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) B) C) D) E)

trade advertising. a promotional pull strategy. digital advertising. national advertising. bait-and-switch advertising.

139) With ________, advertising expenditures and promotional efforts are directed toward the ultimate consumer.

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A) B) C) D) E)

140)

promotional pull strategies promotional push strategies trade advertising market harvesting strategies B2B advertising

Which of the following statements 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.

141) 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) B) C) D) E)

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promotional pull strategy. promotional push strategy. trade advertising. price/quality positioning. direct selling.

Answer Key Test name: chapter 2 1) FALSE 2) FALSE 3) FALSE 4) FALSE 5) FALSE 6) E 7) B 8) D 9) A 10) C 11) D 12) C 13) B 14) A 15) D 16) C 17) B 18) B 19) D 20) A 21) C 22) A 23) A 24) A 25) C 26) E Version 1

27) E 28) B 29) D 30) C 31) E 32) B 33) B 34) A 35) B 36) C 37) C 38) E 39) E 40) A 41) A 42) C 43) D 44) A 45) C 46) A 47) C 48) D 49) B 50) D 51) A 52) E 53) C 54) B 55) D 56) D Version 1

57) A 58) D 59) A 60) B 61) B 62) A 63) B 64) E 65) C 66) B 67) B 68) D 69) B 70) B 71) A 72) D 73) D 74) A 75) E 76) B 77) A 78) D 79) A 80) A 81) A 82) B 83) A 84) E 85) B 86) B Version 1

87) A 88) E 89) B 90) C 91) B 92) D 93) C 94) C 95) C 96) E 97) D 98) C 99) B 100) A 101) B 102) B 103) D 104) D 105) D 106) D 107) B 108) B 109) B 110) A 111) A 112) C 113) A 114) C 115) C 116) C Version 1

117) C 118) E 119) A 120) A 121) E 122) D 123) D 124) D 125) D 126) C 127) D 128) C 129) B 130) D 131) D 132) E 133) A 134) A 135) B 136) D 137) E 138) A 139) A 140) B 141) A Student name:__________ MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 1) The key participant that provides the funds to pay for the integrated marketing communications (IMC) process is the Version 1

A) B) C) D) E)

client. advertising agency. media organization. specialized communication service. collateral service.

2) An outside firm that specializes in creating, producing, and/or placing the client's communications message and may also provide other services to facilitate the marketing and promotions process is

A) B) C) D) E)

a sales promotion agency. a collateral services agency. a public relations agency. an advertising agency. a direct-response agency.

3) When a single agency has primary responsibility for most of the IMC services for a company or a brand, such as brand and creative strategy, media planning, developing and maintaining websites, and digital marketing, it is called the

A) B) C) D) E)

sales promotion agency. public relations firm. agency of record. interactive agency. direct-response agency.

4) To a promotional planner, the primary purpose of media is to offer content that attracts consumers and thus provide a platform for

Version 1

100

A) B) C) D) E)

information and entertainment to subscribers. client services and support. advertising agencies. the firm's marketing communication messages. special services to the organization.

5) Which of the following organizations provide specialized marketing communication services?

A) B) C) D) E)

television broadcast services radio stations advertising agencies communication firms digital/interactive agencies

6) Firms that provide a wide range of support functions used by advertisers, agencies, media organizations, and specialized marketing communication firms are

A) B) C) D) E)

media organizations. collateral services organizations. advertising agencies. agencies of record. specialized marketing communication services.

7) Various people both inside and outside the ad agency have input into the advertising and promotion process, but the ________ is directly responsible for all promotions activities except sales.

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101

A) B) C) D) E)

research manager finance manager advertising manager sales manager product planning manager

8) Under which type of system does the advertising or marcom manager control the entire promotions operation?

A) B) C) D) E)

a preset system a manual system an automated system a centralized system a decentralized system

9) When large corporations with multiple divisions and many different products/services and brands find it difficult to manage all the advertising, promotional, and other functions, they often use

A) B) C) D) E)

a preset system. a manual system. an automated system. a centralized system. a decentralized system.

10) In a decentralized system, one individual is responsible for the total management of each product/service or brand, including planning, budgeting, sales, and profit performance. This person is the brand manager or

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102

A) B) C) D) E)

service manager. advertising manager. promotions manager. product manager. system manager.

11) A manager who is concerned with the strategic role of the company’s various brands in order to build profits and market share while overseeing the management of an entire product category is called

A) B) C) D) E)

a brand manager. an advertising manager. a promotions manager. a product manager. a category manager.

12) The internal creative department that handles the design of weekly circulars, direct-mail pieces, in-store displays, promotions, and other marketing material for a large organization, like retail giant Target, is known as an

A) B) C) D) E)

intra-departmental agency. in-store agency. in-between agency. in-house agency. inter-departmental agency.

13) In the United States, just 10 agencies handle nearly 30 percent of the total volume done by the top 900 U.S. agencies. Nearly two-thirds of the amount of client money agencies spend on media purchases and other equivalent activities, known as domestic ________, are handled by the top 500 agencies.

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103

A) B) C) D) E)

revenues capital currency incomes billings

14) Changes in the advertising industry that began in the late 1980s led to a new type of consolidated agency to provide clients with integrated marketing communications services worldwide. These new agencies became known as

A) B) C) D) E)

international agencies. superagencies. grand agencies. great agencies. worldwide agencies.

15) An advertising agency that offers clients a one-stop shop with a full range of marketing, communications, and promotion services—including planning, creating, and producing the advertising, performing research, and selecting media—is called

A) B) C) D) E)

a full-service agency. an in-house agency. an intra-departmental agency. an in-service agency. an inter-departmental agency.

16) The individual responsible for understanding the advertiser's marketing and promotion needs and interpreting them to agency personnel, serving as the link between the ad agency and its clients, is the

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104

A) B) C) D) E)

marketing executive. advertising executive. promotions executive. agency executive. account executive.

17) The individual in a large agency who gathers information about a client's consumers and marketplace, working with the client as well as other agency personnel, including the account executives, creative team members, research department personnel, and media specialists, is the

A) B) C) D) E)

marketing planner. advertising planner. promotions planner. agency planner. account planner.

18) In a creative services department, the individuals who conceive the idea for an ad and write the message and may be involved in determining the basic appeal or theme of the ad campaign and preparing a rough initial visual layout of the print ad or television commercial are called

A) B) C) D) E)

ad writers. media writers. copywriters. commercial writers. campaign writers.

19) When a medium- to large-sized agency sets up separate departments to perform specialty functions and serve all of the agency's clients, it is using

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105

A) B) C) D) E)

an intradepartmental system. a group system. a departmental system. a commercial system. an interdepartmental system.

20) When a large agency uses ________, individuals from each department work together in teams led by an account executive or supervisor to service a particular account.

A) B) C) D) E)

an intradepartmental system a group system a departmental system a commercial system an interdepartmental system

21) A small, specialized ad agency with writers and artists on staff but without media, research, or account planning capabilities is

A) B) C) D) E)

a media boutique. a copywriter boutique. a centralized boutique. a creative boutique. an advertising boutique.

22) With the fragmentation of media audiences and the growth of digital media, buying advertising media has grown increasingly complex. An organization that specializes in buying media, particularly for television and digital advertising, is called

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A) B) C) D) E)

an advertising specialist company. a campaign specialist company. a digital specialist company. a media specialist company. a purchasing specialist company.

23) A type of buying that has grown in recent years uses a wide range of technologies that automate buying, placement, and optimization of advertising media through a range of technologies. It is known as

A) B) C) D) E)

automated buying. optimization buying. placement buying. programmatic buying. technology buying.

24) The traditional way to compensate agencies, where media pay the agency a specified percentage of the cost of any advertising time or space it purchases for its client, is called the

A) B) C) D) E)

value-based system. percentage charges system. incentive-based system. commission system. cost-plus system.

25) An agency commission based on a sliding scale so that the commission percentage becomes lower as the client's media expenditure increases is called

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A) B) C) D) E)

a value-based commission. a negotiated commission. an incentive-based commission. a fixed-fee-based commission. a cost-plus commission.

26) Many agencies and their clients have moved away from the commission system and developed other arrangements for agency compensation. An arrangement where an agency charges a basic fee for all of its services and credits to the client any media commissions earned is called a

A) B) C) D) E)

percentage-charge method. fee-commission method. incentive-based method. fixed-fee method. cost-plus method.

27) In a(n) ________ arrangement, the agency charges the client a fee for services and credits any commissions received against the fee. If the commissions are less than the fee, the client must make up the difference.

A) B) C) D) E)

percentage-charge commission combination fee-commission combination incentive-based commission combination fixed-fee commission combination cost-plus commission combination

28) Under a(n) ________ agreement, the client pays the agency a fee based on the costs of its work plus some agreed-on profit margin (often a percentage of the total costs). This system requires the agency to keep detailed records of the costs it incurs in working on a client's account.

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A) B) C) D) E)

percentage-charges system fee-commission system incentive-based system fixed-fee system cost-plus system

29) Some compensation agreements pay an agency above its basic costs—determined by tasks that the agency is expected to perform, staffing required, and hourly rates—if it meets or exceeds agreed-upon goals. A compensation agreement that ties compensation to performance is called

A) B) C) D) E)

a percentages-charges system. a fee-commission system. an incentive-based system. a fixed-fee system. a cost-plus system.

30) Outside providers of market research, artwork, printing, photography, and other services or materials do not allow agencies to take a commission. To cover the cost of administering these services while making a reasonable profit for their efforts, agencies apply a mark-up called

A) B) C) D) E)

percentage charges. commission charges. incentive charges. fixed-fee charges. cost-plus charges.

31) Advertising and promotion can be substantial expenses for an organization, so regular reviews of its agency's performance are necessary. A review that verifies costs and expenses, the number of personnel hours charged to an account, and payments to media and outside suppliers is called a

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A) B) C) D) E)

financial audit. qualitative audit. quantitative audit. revenue audit. capital audit.

32) As part of a client’s review of agency performance, a ________ focuses on how well the agency has planned, developed, and implemented the client's advertising programs and the results achieved.

A) B) C) D) E)

financial audit qualitative audit quantitative audit revenue audit capital audit

33) Companies today communicate with consumers through telemarketing, direct mail, television, the Internet, and other forms of direct-response advertising. A ________ provides a variety of services to clients, including database analytics and management, direct mail, research, media service, and creative and production capabilities.

A) B) C) D) E)

sales promotion agency digital agency public relations agency direct-marketing agency direct-advertising agency

34) Companies that specialize in planning, developing, and executing contests, sweepstakes, refunds and rebates, premium and incentive offers, and sampling programs for clients are called

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A) B) C) D) E)

sales promotion agencies. digital agencies. public relations agencies. direct marketing agencies. direct advertising agencies.

35) As companies adopt an IMC approach to promotional planning, they are increasingly coordinating their public activities across all areas. Specialized firms that develop and implement programs to manage the organization's image and affairs with stockholders, government labor groups, citizen actions groups, employees, suppliers, and consumers are referred to as

A) B) C) D) E)

sales relations firms. digital relations firms. political relations firms. public relations firms. direct advertising relations firms.

36) Marketing communication agencies that specialize in using various digital marketing tools, such as website design and development, apps, search engine optimization (SEO), banner ads, video, mobile marketing, and social media campaigns, are referred to as

A) B) C) D) E)

digital advertising agencies. digital media agencies. digital interactive media agencies. digital marketing agencies. digital agencies.

37) 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 this scenario, Momentum Automobiles would be classified as

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A) B) C) D) E)

38)

a client. an illustrator. a full-service agency. an advertising agency. a media organization.

In the ad agency industry, “client” refers to

A) marketed. B) C) D) E) message.

an advertiser or organization that has the product, service, or cause that needs to be the media, which plays a crucial role in the process of marketing communication. a purchaser of the consumer product advertised. a market for business or consumer products. an advertising agency that specializes in the creation of the communications

39) An outside firm that specializes in creating, producing, and/or placing communications messages and may provide other marketing and promotions-related services is

A) B) C) D) E)

a media organization. a sales promotion firm. a research organization. an advertising agency. a creative boutique.

40) Productivity-Plus Entities is known for their engaging and entertaining commercials, often winning recognition as one of the most viewed YouTube advertisements after the Super Bowl. While this may be entertaining to viewers the promotional planner at Productivity Plus Entities emphasizes the purpose of the media is to

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A) B) C) D) E)

41)

represent the company's senior management in negotiations with an ad agency. provide the company with strategic recommendations and analysis. provide an environment for the firm's marketing communications message. help conduct a SWOT analysis. provide appropriate funding for all marketing activities.

The primary function of most media is to

A) B) C) D) E)

assist the market research organization by conducting market surveys. coordinate their activities with direct-marketing agencies. provide information and entertainment to their audience. prepare the budget for the advertising and promotion process. compensate ad agencies through a commission system.

42) 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) B) C) D) E)

an advertiser. a collateral service provider. a media organization. a creative boutique. a sales promotion agency.

43) With respect to the major participants in the advertising and promotions process, which group includes sales promotion agencies, digital agencies, and public relations firms?

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A) B) C) D) E)

advertising agencies media organizations collateral service agencies specialized marketing communications services agencies bait-and-switch marketing service agencies

44) Basic functions of the manager and staff in advertising and marketing communications include all of the following except

A) B) C) D) E)

administration and execution. coordination with other departments. preparing materials for the sales force. managing the sales force. coordination with outside agencies and services.

45) In companies that follow a centralized organizational system, who among the following is likely to be given the title "marketing communications manager"?

A) B) C) D) E)

art director brand manager advertising manager product manager copywriter

46) Which of the following statements is true about the role of top management in the advertising and promotion decision-making process?

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A) Top management's day-to-day responsibilities usually include decision making and operations of advertising and promotion. B) Top management does not provide input in the advertising and promotion process. C) Top management is usually interested in how the advertising program represents the organization. D) Top management is only interested in the amount of money that must be allocated to advertising and promotion. E) Top management is more interested in tactical planning than strategic planning.

47) Under a centralized organizational system, the responsibility for planning and controlling the advertising and promotional functions lies with the

A) B) C) D) E)

brand manager. marketing communications manager. product manager. art director. account planning supervisor.

48) Which of the following statements 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.

49) Which of the following statements is true about the functions of the advertising manager in a centralized system?

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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.

50) 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) B) C) D) E)

51)

production finance auditing advertising product planning

A company often uses a centralized organizational system when

A) B) C) D) E)

it has many different divisions within the company. it does not want to involve the top management in the decision-making process. it does not have many product lines or brands to advertise. it wants to involve many people in making program decisions. it wants to have a category management system in place.

52) Which of the following statements about the difference between a centralized organization and a decentralized organization is correct?

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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 (more than 1,000 employees), whereas a decentralized organizational system is used only in smaller companies (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.

53) Which of the following statements 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.

54) In a decentralized system, the ________ is responsible for the total management of the brand, including planning, budgeting, sales, and profit performance.

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A) B) C) D) E)

brand manager media manager collateral services provider account executive sales manager

55) Under a decentralized system, the advertising department is generally a part of which larger group?

A) B) C) D) E)

finance sales product development marketing services research and development

56) 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) B) C) D) E)

a product manager. an art director. an account executive. a copywriter. an account director.

57) 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.

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A) B) C) D) E)

finance sales decentralized centralized product

58) 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) B) C) D) E)

59)

category managers. art directors. account executives. account supervisors. media planners.

A company often uses a decentralized organizational system when

A) B) C) products. D) E)

it has multiple divisions and many different products. it does not have a manufacturing or industrial operation. it wants one advertising manager to handle the promotional activities of all the its top management is actively involved in day-to-day decision making. it lacks the ability to handle multiple brands.

60) Which of the following statements describes a limitation associated with the decentralized organizational structure for advertising?

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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.

61) 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 delivering its brand image. Diva also wants to maintain tighter control over its advertising and promotional activities. Which of the following types of advertising agency should it use?

A) B) C) D) E)

62)

collateral service agency buzz marketing agency in-house agency Centralized agency creative boutique

Which of the following statements 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 for the company. D) It provides more objectivity and range of services in comparison to outside agencies. E) It offers more access to top creative talent.

63)

A major reason some companies choose to use an in-house agency is to

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A) B) C) D) E)

64)

maintain creative freshness. reduce advertising and promotions costs. reduce the threat of potential lawsuits. make use of top creative talent. reduce the number of product lines.

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) varied perspectives on advertising problems D) greater flexibility E) greater objectivity

65) A company that uses an in-house agency might turn its advertising and promotion tasks over to an outside agency to

A) B) C) D) E)

66)

obtain greater control over the advertising process. reduce its costs. obtain greater objectivity. simplify coordination of the advertising and promotional process. save media commissions.

Which of the following is a disadvantage of using a centralized organizational system?

A) B) C) D) E)

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longer response time very little top-management involvement involvement of many people in making program decisions lack of communication discontinuity in staff

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67)

Which of the following is an advantage of a decentralized organizational system?

A) B) C) D) E)

68)

effective decision making rapid response to problems and opportunities lack of internal conflicts enhanced authority external rather than internal focus

Which of the following is a disadvantage of a decentralized organizational system?

A) B) C) D) E)

inability to handle multiple product lines ineffective decision making longer response time lack of flexibility lack of managerial attention

69) Lack of long-term objectivity, flexibility, and creativity are a few of the reasons why a company might move away from

A) B) C) D) E)

70)

a decentralized marketing system. an in-house agency. the use of full-service advertising agencies. a centralized marketing system. the use of creative boutiques.

Which of the following is a disadvantage of using an in-house advertising agency?

A) B) C) D) E)

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external focus rather than internal limited access to top-level talent reduced cost savings less stability decreased coordination

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71) ENT advertising and marketing is one of the top 500 U.S. agencies that handles nearly two-thirds of domestic ________. ENT is known for their unique methods and thoughtful methods in handling the amount of client money they spend on purchasing media and related activities.

A) B) C) D) E)

72)

billings media commissions retainers activity fees ad traffic compensation

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 integrated marketing communications services worldwide. E) to lessen the need for competitive pricing.

73)

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.

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74) 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 client firm’s top management. D) It helps provide a consistent and integrated global brand image. E) It provides the client with better access to highly skilled individuals.

75)

Which of the following statements is true about outside advertising agencies?

A) B) C) D) E)

Typically, external ad agencies do not use media analysts and researchers. External agencies are often preferred for their greater skill and expertise levels. Generally, most external ad agencies do not offer creative services. External ad agencies are generally cheaper than in-house agencies. Unlike in-house agencies, outside agencies can be used to portray a singular global

image.

76) 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) B) C) D) E)

a creative boutique a full-service agency a media buying service a collateral agency a switch marketing agency

77) Cone Industries has decided to consider a new name and rebranding, which could mean changing their advertising and marketing strategy. They are seeking an agency to help them through this transition. Services they will need include performing research, creating and planning promotions, selecting media, and producing advertising. The type of agency that best meets the needs of the new Cone Industries is Version 1

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A) B) C) D) E)

a creative boutique. a media buying service. an account service agency. a full-service agency. a buzz marketing agency.

78) 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) B) C) D) E)

a creative boutique. a full-service agency. a media buying organization. an account service organization. a media specialist company.

79) 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) B) C) D) E)

80)

billings publicity promotions media buying direct marketing

Which of the following statements is true about account services?

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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 helps create the advertising message for the client. E) It is the link between the advertising agency and its clients.

81) Animate is a small company that has outgrown their initial personnel infrastructure. Human Resources has recommended that instead of creating a new department, they seek an agency to help coordinate planning, creating, and producing advertising. The position that will serve as the liaison to understand and interpret the market and Animate’s promotional needs to agency personnel is

A) B) C) D) E)

82)

an account executive. a database manager. a media specialist. a copywriter. an art director.

Which of the following statements is true of the account executive role?

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.

83) 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.

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A) B) C) D) E)

audit personnel media account management research

84) 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 also collects 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) B) C) D) E)

an art director. an account planner. an illustrator. a media specialist. an account executive.

85) The ________ is a document that the agency's creative department uses to guide the development of advertising ideas and concepts.

A) B) C) D) E)

tagline brief product data sheet creative brief copywriter collateral marketing plan

86) Account planning has become a very important and demanding function in many agencies because

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A) channels. B) C) D) E)

it facilitates organizations in reducing the number of effective communication it enables organizations with a centralized management to reduce costs. it provides greater value to the final consumer. it provides the creative team with more insight into consumers. it has replaced brand management as the primary marketing function.

87) Which of the following departments in a full-service agency analyzes, selects, and contracts for space or time to publish or broadcast the client's advertising message?

A) B) C) D) E)

88)

research department media department account management department creative services department art department

Which of the following statements is true of media departments?

A) B) C) D) E)

Their brief is primarily creative. They lack the ability or the authority to negotiate prices. They review information on demographics and radio listenership. They are in charge of creating the clients' advertising message. They are generally headed by an account planner.

89) Success Advertising has been growing and expanding their client base. They are seeking interns for their creative services department. Interns’ key responsibility will be to partner with ________ to contribute to the process of originating ideas for ads and composing the advertising message.

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A) B) C) D) E)

90)

a copywriter an art director an account planner an account executive a media planner

Which of the following statements is true of media departments?

A) B) C) D) E)

91) Drawings that show what the print ad will look like and from which the final artwork will be produced are called

A) B) C) D) E)

creative briefs. packshots. layouts. art infusions. product sheets.

92) Which department within an advertising agency supervises the casting of people to appear in the ad and the setting for the scenes?

A) B) C) D) E)

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account services department art department traffic department media department production department

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93) 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) B) C) D) E)

research production art traffic personnel

94) To the creative services department of a full-service agency, the layout for a TV commercial is known as

A) B) C) D) E)

a storyboard. a logo. an art infusion. a packshot. a creative brief.

95) Which of the following statements is true of the traffic department in a full-service agency?

A) It is headed by either 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 in the creative services area of the agency or be a part of media or account management. E) It is headed by either a copywriter or a media planner who selects and contracts for space and time in media.

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96) Which of the following departments in a full-service agency is responsible for developing and executing advertisements?

A) B) C) D) E)

traffic department account services department media planning department creative services department production department

97) 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) B) C) D) E)

98)

A sequence of frames or panels that depict a TV commercial in still form is called

A) B) C) D) E)

99)

traffic account planning production research art

a screenplay. a creative brief. a storyboard. a placard. an art infusion.

The majority of an advertising agency's expenses are in the area of

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A) B) C) D) E)

media costs. employee salaries and benefits. sales promotions. production overheads. market research.

100) 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 used by a full-function advertising agency, J&J is using a ________ organizational system.

A) B) C) D) E)

departmental group matrix creative boutique media boutique

101) When selecting an organizational structure, some advertising agencies prefer the departmental system because

A) B) accounts. C) D) E)

it completely avoids the use of a commission system to compensate ad agencies. it gives employees the opportunity to develop expertise in servicing a variety of it converts a full-function advertising agency into a creative boutique. it avoids the involvement of top management in the decision-making processes. it allows the creative team and the media team to work together as a group.

102) When selecting an organizational structure, many advertising agencies prefer the group system because

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A) B) C) D) E)

103)

it completely avoids the use of an incentive-based compensation system. it leads to continuity in client servicing. it avoids the involvement of top management in the decision-making processes. it converts a full-service agency into a media specialist agency. it keeps the departments within an organization independent of each other.

Which of the following statements is true of a creative boutique?

A) It lacks media, research, and account planning capabilities. B) It lacks creative personnel such as copywriters and artists. C) It is headed by a media buying director. D) It has an inherent disadvantage of being cumbersome and time-consuming. E) It has less access to creative talent.

104) 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) B) C) D) E)

105)

a creative boutique. a media specialist company. an account services organization. a media procurement specialist. a content management specialist.

Which of the following statements is true about creative boutiques?

A) B) services. C) D) E)

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106) Independent companies that exclusively help in the purchase of radio and television time are known as

A) B) C) D) E)

creative boutiques. SMM organizations. macro-marketing agencies. media specialist companies. storyboard specialists.

107) 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) B) C) D) E)

commission system fee arrangement system cost-plus system incentive-based compensation system objective-and-task compensation system

108) A major development in advertising media purchasing in recent years has been the rapid growth of ________, which refers to a wide range of technologies that are automating buying, placing, and optimizing advertising media.

A) B) C) D) E)

109)

commission systems programmatic buying cost-plus systems incentive-based systems objective-and-task systems

Defenders of the commission system for agency compensation argue that

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A) B) C) D) E)

it is generally easier to administer and keeps the emphasis on nonprice factors. it encourages agencies to recommend direct mail, sales promotion, and PR to clients. it does not tie agency compensation to media costs. it helps to reduce skyrocketing media costs. it is similar to the newer fixed-fee method.

110) 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) B) C) D) E)

incentive-based flexible revenue cost-plus commission fixed-fee

111) A compensation system in which agency commissions average from 8 to 10 percent or are based on a sliding scale that becomes lower as the clients' media expenditures increase is the

A) B) C) D) E)

112)

negotiated commission system. fixed-fee commission system. cost-plus commission system. incentive commission system. pro-rata commission system.

Which of the following statements is true about agency commissions?

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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.

113)

Negotiated commission rates for advertising agencies

A) B) C) D) E)

average between 8 and 10 percent. are usually between 15 and 25 percent. are typically not based on a sliding scale. are rarely used by consumer-product advertisers. are designed primarily to benefit agencies.

114) A type of compensation arrangement in which an agency charges a client a basic monthly amount for all services and credits to the client any media commissions earned is the

A) B) C) D) E)

115)

fixed-fee method. negotiated commission method. cost-plus agreement method. incentive-based compensation system. objective-and-task compensation system.

The fixed-fee method of compensation is also called the

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A) B) C) D) E)

objective-and-task method. value-based compensation. incentive-based compensation. cost-plus fee method. straight-fee method.

116) 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) B) C) D) E)

117)

fixed-fee negotiated commission straight-fee incentive-based cost-plus

Under which system is the agency’s compensation tied to performance?

A) B) C) D) E)

fixed-fee system incentive-based system cost-plus system negotiated commission system straight-fee system

118) 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) B) C) D) E)

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fixed-fee straight-fee value-based cost-plus objective-and-task

137

119) Geo laboratories is seeking an agency with a commission structure based on media commissions. They have agreed that if the media commissions do not bring in an agreed-upon fee, Geo will pay the agency the difference. This is called a ________ compensation system.

A) B) C) D) E)

fixed-fee and cost-plus combination fee-commission combination fee plus value-based combination cost-plus combination straight-fee and value-based combination

120) 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

121) As more companies adopt the integrated marketing communications approach to their advertising and promotions,

A) they are increasingly concentrating on a mass-media strategy because it is relatively cheaper. B) they are reducing their mass-media advertising, leading to changes in how 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) they are generally avoiding fee agreements and cost-plus systems in favor of the traditional compensation method.

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122) A(n) ________ audit of an agency is designed to verify costs, expenses, and payments to outside suppliers.

A) B) C) D) E)

financial operational departmental qualitative grant and contract

123) Productivity Advertising Agency has recently been acquired by the Inspiration Agency. To see how well Productivity Advertising has lived up to its name, Inspiration Agency wants to assess the planning, developing, implementation, and evaluation of results achieved for their clients’ advertising programs. Inspiration Agency has chosen to conduct a ________ audit.

A) B) C) D) E)

quantitative social financial qualitative contract-grant

124) 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 that is responsible for bringing in new accounts. In this scenario, the company is obtaining clients through

A) B) C) D) E)

125)

referrals. solicitation. public relations. publicity. reputation management.

An individual who specializes in helping clients choose their advertising agencies is

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A) B) C) D) E)

126)

a social media consultant. an ad agency review consultant. an ad agency account representative. a brand manager. an ad agency compensation specialist.

The most effective way for an agency to acquire new business is through

A) B) C) D) E)

its image and reputation. solicitation. a qualitative audit. presentations. its pricing strategy.

127) Agencies that specialize in offering services like database management that also create, produce, and disseminate different types of communications going straight to target customers are called

A) B) C) D) E)

digital-interactive agencies. sales promotion agencies. direct-marketing agencies. public relations firms. creative boutiques.

128) 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

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A) B) C) D) E)

a creative boutique. a public relations agency. a digital-interactive agency. a direct-marketing agency. a sales promotion agency.

129) ________ specialize in developing and managing sweepstakes, refund and rebate offers, and incentive programs.

A) B) C) D) E)

Sales promotion agencies Direct-response agencies Creative boutiques Interactive agencies Collateral agencies

130) WriteOn Stationery is new in the market. They have hired a specialized agency to coordinate a promotional program. Consumers can mail in Universal Product Codes from three WriteOn products to receive a free Redbox movie rental. What kind of agency did WriteOn hire?

A) B) C) D) E)

sales promotion agency collateral agency creative boutique interactive agency direct-response agency

131) Rapp and Wunderman provide services for companies that want to communicate with consumers through telemarketing, direct mail, television, the Internet, and other forms of directresponse advertising. These agencies are examples of ________ agencies.

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A) B) C) D) E)

direct-marketing collateral boutique interactive sales promotion

132) Organizations that specialize in creating marketing tools such as websites for the Internet, banner ads, search engine optimization, mobile marketing, and social media campaigns are known as

A) B) C) D) E)

sales promotion agencies. public relations firms. creative boutiques. interactive agencies. direct-response agencies.

133) To develop and implement programs to manage its image and affairs with consumers and other relevant audiences, an organization would hire a

A) B) C) D) E)

PR agency. sales promotion agency. media mix organization. creative boutique. direct-response agency.

134) A client wants to organize a concert to raise funds for The Little Ones, an orphanage in Houston. Which specialized service provider would be responsible for preparing news releases and promoting and managing the concert?

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A) B) C) D) E)

135)

a digital agency a marketing research firm an interactive agency a public relations firm a sales promotion agency

Interactive agencies are also called

A) B) C) D) E)

digital agencies. public relation firms. creative boutiques. sales promotion agencies. collateral agencies.

136) Package design firms, market research companies, photographers, and printers are examples of

A) B) C) D) E)

137)

sales promotion agencies. interactive agencies. collateral service providers. companies that assist in media buying. creative boutiques.

Which of the following is a collateral services provider?

A) B) C) D) E)

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public relation firm sales promotion agency digital marketing agency full-service interactive agency market research firm

143

138) Which of the following is likely to conduct in-depth interviews and focus groups as well as market surveys to gather objective information that is valuable to the advertiser's promotional programs?

A) B) C) D) E)

139)

Marketing research firms

A) B) C) D) E)

140)

market research companies media specialist organizations media buying organizations creative boutiques sales promotion agencies

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

Which of the following statements is true about integrated services?

A) B) C) D) E)

They help to eliminate the requirement for economies of scale. They help in maintaining control of the entire promotional process. They create individual branding for varied products or services. They make it difficult for the client to coordinate all of its marketing efforts. They reduce synergy in the promotional process.

141) Which of the following is considered to be the greatest obstacle in implementing integrated marketing communications (IMC)?

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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 compatibility issues occur when the process is scaled up. D) The implementation of IMC is most likely to result in interdepartmental budget allocations problems. E) There are not enough people with the requisite broad perspective and skills to implement IMC.

142) Which of the following is an incorrect statement about integrated marketing communications?

A) IMC often results in greater economies of scale. B) An IMC 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 the communications program elements. D) One challenge to successful 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.

143) PB Corporation is seeking to improve their advertising presence by adding digitized billboards. Their agency has been getting a traditional 15 percent commission for advertising, but for outdoor advertising, the agency receives 16⅔ percent. This ________ provides a simple method of determining payments.

A) B) C) D) E)

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fixed-fee system digital commission system media-plus system cost-plus system commission system

145

144) TRS Industries has noticed their competition is using automated media buying for both digital and social media then benefiting from the data analytics vital to marketers in the new digital era. TRS Industries decides they must move away from their traditional ________, the single agency given primary responsibility for most of their IMC services, and instead find partners using a variety to tools to evaluate their IMC campaign and the associated data.

A) B) C) D) E)

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sales promotion agency public relations firm agency of record interactive agency direct-response agency

146

Answer Key Test name: chapter 3 1) A 2) D 3) C 4) D 5) E 6) B 7) C 8) D 9) E 10) D 11) E 12) D 13) E 14) B 15) A 16) E 17) E 18) C 19) C 20) B 21) D 22) D 23) D 24) D 25) B 26) D Version 1

147

27) B 28) E 29) C 30) A 31) A 32) B 33) D 34) A 35) D 36) E 37) A 38) A 39) D 40) C 41) C 42) C 43) D 44) D 45) C 46) C 47) B 48) A 49) D 50) D 51) C 52) D 53) C 54) A 55) D 56) A Version 1

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57) C 58) A 59) A 60) D 61) C 62) C 63) B 64) A 65) C 66) A 67) B 68) B 69) B 70) B 71) A 72) D 73) B 74) E 75) B 76) B 77) D 78) B 79) A 80) E 81) A 82) E 83) E 84) B 85) C 86) D Version 1

149

87) B 88) C 89) A 90) C 91) C 92) E 93) D 94) A 95) D 96) D 97) C 98) C 99) B 100) B 101) B 102) B 103) A 104) A 105) D 106) D 107) A 108) B 109) A 110) D 111) A 112) A 113) A 114) A 115) E 116) E Version 1

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117) B 118) C 119) B 120) D 121) B 122) A 123) D 124) B 125) B 126) A 127) C 128) D 129) A 130) A 131) A 132) D 133) A 134) D 135) A 136) C 137) E 138) A 139) B 140) B 141) E 142) B 143) E 144) C

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Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) 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

2) 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

3) 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

4) 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

5) The more advertisers assess situational determinants of consumer behavior, the more likely they are to succeed in communicating with their target audiences. ⊚ ⊚

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true false

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MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 6) GSI Industries’ new marketing VP is working with the team to identify the best way to influence purchase behavior. He has led the team through a brainstorming session on how consumers make purchase decisions to satisfy needs and desires. The list includes brand comparison, research, and evaluations from other consumers. These activities define

A) B) C) D) E)

consumer socialization. consumer culture. consumer behavior. consumer retention. consumer assimilation.

The Basic model of consumer decision making includes five stages, beginning with

A) B) C) D) E)

a purchase decision. an information search. attitude formation. problem recognition. an information search.

8) Joy purchased a 1980s home with all the original appliances. She is struggling with the current state of her kitchen appliances and her vision of an ideal updated kitchen. This gap between what she has and what she wants is

A) B) C) D) E)

perception. information search. attitude formation. purchase decision. problem recognition.

9) As Joy explores the decision-making process for renovating her 1980s kitchen, she is selecting, organizing, and interpreting information. This internal psychological process is called

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A) B) C) D) E)

self-actualization. selective exposure. sensation. perception. self-esteem.

10) Abound Industries has hired All Around Marketers to conduct consumer focus groups with the goal to identify their associations related to the Abound brand. All Around has also suggested projective techniques, associated tests, and in-depth interviews. What type of research is Abound Marketers conducting?

A) B) C) D) E)

social need self-actualization consumer motivation assimilation

11) Joy continues her decision-making process for updating her 1980s kitchen. She is now comparing the warranties and services available for various brands. What stage of the decisionmaking process has Joy has entered?

A) B) C) D) E)

problem recognition information search alternative evaluation attitude formation purchase decision

12) Joy decided which major appliances to buy to update her 1980s kitchen. She then learned that the countertops will need to be replaced to fit the new sizes for the stove top and doublestack oven—a complex purchase. Joy will need to seek more

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A) B) C) D) E)

contractor advice. opinions of others. consumer behavior. information sources. consumer buying habits.

13) Joy is unsure of what her motive is for purchasing a double-stack oven; she just knows she wants one. As a consumer, her motivation may be deep in her subconscious, a motive connected to other experiences. This theory of consumer behavior is referred to as

A) B) C) D) E)

subconscious. psychoanalytic. the affect-referral decision rule. salient beliefs. multiattribute attitude model.

14) All Around Marketers continues to support Abound Industries in collecting consumer associations with Abound products. They are now inviting consumers to participate in one-onone, face-to-face meetings where they can speak freely about motives and opinions in an unstructured environment supported by a specific series of questions to stimulate insight. This method of research in marketing is called

A) B) C) D) E)

brainstorming. focus groups. in-depth interviews. associated tests. projective techniques.

15) One of the Abound Industries board members heard about the research techniques employed by All Around Marketers, expressing that much of the data gathered is too vague and unresponsive to the external environment. When All Around Marketers shared their qualitative data on buyers’ deeply rooted feelings, hopes, aspirations, and fears with the Abound board and the majority agreed, the psychoanalytic approach furthered their understanding of

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A) B) C) D) E)

consumer socialization. consumer culture. consumer behavior. consumer retention. consumer assimilation.

16) Joy has invited her friend Geri to look at stove tops for her kitchen remodel. Joy likes look of the glass cooktop, but Geri finds it less functional than a gas cook top. Joy and Geri are driven by what is relevant their individual needs, tuning out each other’s

A) B) C) D) E)

self-actualization. selective exposure. sensations. perceptions. self-esteem.

17) Blueberry Designs is known for their trademark BD and their patented Blueberry-colored soles on every pair of shoes. When the Blueberry color appears in ads, consumers take notice. This notice is called

A) B) C) D) E)

selective exposure. selective retention. mnemonics. selective comprehension. selective attention.

18) Sean needs transportation. He asked Sam to go car shopping with him, in hopes of finding a four-door sedan with good gas mileage. Sam believes that Sean should purchase a pickup truck because girls like guys who drive big trucks. They each have a different position on purchasing transportation. They are engaging in

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A) B) C) D) E)

selective exposure. selective retention. mnemonics. selective comprehension. selective attention.

19) Blueberry Designs has just launched their online shopping portal. To make sure their customers remember how to find them, they purchased the website name Blueberry1.com and acquired the phone number 258.323.7791, which spells out Blueberry1 on a keypad. These associations to help consumers remember how to reach Blueberry Designs are known as

A) B) C) D) E)

subliminal perception. mnemonics. selective exposures. selective retention. consumer assimilations.

20) In her remodeling project, Joy has reached the alternative evaluation stage, bringing her choices for a double-stack oven down to three brands. She is looking at the amount of time it has taken her to compare features, realizing that she now has a manageable number of options, called

A) B) C) D) E)

a subliminal perception. the evoked set. dysfunctional consumer behavior. the functional consequences. the psychosocial consequences.

21) When consumers see the patented Blueberry color on the sole of a shoe, they associate the color with premium quality and refinement. Using the Blueberry color as a stimulus to cause a consumer response is an example of

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A) B) C) D) E)

operant conditioning. reinforcement. conditioned response. classical conditioning. conditioned stimulus.

22) Innovation Marketing is creating a communication strategy for the KB brand. To identify what drives consumer attitudes toward the KB brand, Innovation Marketing will use ________ to better understand how consumers’ beliefs are affecting their evaluations of the brand’s attributes.

A) B) C) D) E)

the subconscious theory the psychoanalytic theory the affect-referral decision rule their salient beliefs a multiattribute attitude model

23) Joy has updated her 1980s kitchen with a new refrigerator that uses a water filter. She went online to purchase a back-up filter and learned that if she signs up for automated replacement delivery, she will be positively rewarded by saving 5% on her current and future purchases. Receiving a reward for choosing to act on this offer, Joy demonstrated

A) B) C) D) E)

operant conditioning. cognitive dissonance. conditioned response. classical conditioning. conditioned stimulus.

24) Geri stops to get a fancy coffee every morning, then she switches to four or five cups of regular coffee throughout the day. She recently saw an ad for a teeth-whiting product specifically made to reduce coffee stains. By indicating how to avoid the unpleasant consequences of drinking coffee, the ad is an example of

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A) B) C) D) E)

operant conditioning. cognitive dissonance. conditioned response. reinforcement. conditioned stimulus.

25) Sean purchased his four-door sedan with good gas mileage. But he is having second thoughts about the purchase because his friend Sam really wanted him to buy a pick-up truck. The dealership recently sent a follow-up letter to Sean reinforcing the wisdom of his fuelefficient purchase. The dealership is trying to address Sean’s

A) B) C) D) E)

operant conditioning. cognitive dissonance. conditioned response. reinforcement. conditioned stimulus.

26) Idris started going to her local BuyItAll when she received a letter congratulating her on her high school graduation and offering her a one-time 20% off her entire purchase coupon. When she settled into her first apartment, she used the coupon and signed up for their rewards program. Idris receives intermittent coupons from BuyItAll for $5, $10, and sometimes 20% off a single purchase. She is a loyal shopper, often purchasing more than the items that qualify for her coupons. BuyItAll is using

A) B) C) D) E)

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a continuous reinforcement schedule. an approximation sequence. a shaping procedure. reinforcement a partial reinforcement schedule.

159

27) Innovation Marketing works with the team at KB brand to create an integrated marketing plan. They are focusing on customer perception and formation of beliefs about the value of the KB brand and to how to influence consumer decision making to choose the KB brand. Innovation Marketing is applying

A) B) C) D) E)

operant conditioning. cognitive learning theory. conditioned response. cognitive dissonance. conditioned stimulus.

28) The Blueberry Designs ads show a lifestyle that is sophisticated and timeless. They recently launched a sportswear line with their trademark DB pattern and patented Blueberry soles on both hiking boots and casual footwear. Those who follow the Blueberry lifestyle are part of

A) B) C) D) E)

consumer socialization. a situational determinant. consumer culture. a reference group. consumer assimilation.

29) Innovation Marketers is discouraging the KB brand from using radio advertising by explaining that too often, the listener may use the radio during multitasking and may be engaging with others, not paying full attention to the communication in the ad. Understanding the effect of consumer usage, purchase situations, and communication conditions in advertising is an example of

A) B) C) D) E)

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consumer socialization. situational determinants. consumer culture. reference groups. consumer assimilation.

160

30) The KB marketing team has learned about how to collect information and analyze the data for strategizing with their partners at Innovation Marketing to create an integrated marketing plan. Conducting consumer interviews and seeking product feedback are

A) B) C) D) E)

consumer methodologies. quantitative methodologies. mixed methodologies. qualitative methodologies. marketing methodologies.

31) ________ 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) B) C) D) E)

Consumer socialization Consumer culture Consumer behavior Consumer retention Consumer assimilation

32) Telluride Ski Resort advertising appeals to the personality or ________ of skiers, as these can influence purchase decisions.

A) B) C) D) E)

lifestyle loyalty impulses attenuation integration

33) Robert, an automobile engineer, detects a strange noise emanating from the engine of his car. As he is an expert mechanic, he diagnoses that the car required a new fan belt. Which of the following stages of the consumer decision-making process is represented in this scenario?

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A) B) C) D) E)

34)

external search postpurchase evaluation problem recognition purchase decision alternative evaluation

What is the first stage of the consumer decision-making process?

A) B) C) D) E)

problem recognition internal search external search selective exposure selective retention

35) Which of the following is the most relevant internal psychological process associated with the problem recognition stage of the consumer decision-making process?

A) B) C) D) E)

employment status motivation assimilation dissociation internalization

36) Which of the following is the most relevant internal psychological process associated with the alternative evaluation stage of the consumer decision-making process?

A) B) C) D) E)

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motivation attitude formation assimilation integration differentiation

162

37) Which of the following is the most relevant internal psychological process associated with the purchase decision stage of the consumer decision-making process?

A) B) C) D) E)

externalization perception culturalization integration learning

38) Which of the following is the most relevant internal psychological process associated with the postpurchase evaluation stage of the consumer decision-making process?

A) B) C) D) E)

motivation perception assimilation learning disintegration

39) McCann Erickson asked women to draw and describe how they felt about roaches. They 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. In this situation, the agency was using ________ research.

A) B) C) D) E)

motivation perception assimilation neuroscience disintegration

40) Which of the following is the most relevant internal psychological process associated with the information search stage of the consumer decision-making process?

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A) B) C) D) E)

41)

differentiation perception valuation amalgamation disassociation

In which of these situations was marketer-induced problem recognition 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 Hair Care contained many 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.

42) 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) B) C) D) E)

brand switching brand extension brand dilution brand loyalty brand retention

43) Which consumer behavior leads them to seek different brands and try out various options?

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A) B) C) D) E)

out-of-mind syndrome consumer assimilation consumer socialization novelty-seeking behavior consumer acculturation

44) According to Abraham Maslow’s hierarchy of needs, the most basic level of human needs is their

A) B) C) D) E)

physiological needs. esteem needs. self-actualization needs. social needs. safety needs.

45) Jack, a student, has applied for a job in one of the top private banks in the United States. Jack feels that securing a job with a private bank would fulfill his desire for steady employment. With respect to Maslow’s hierarchy of needs theory, by having a career in private banking, Jack is most likely to fulfill his ________ needs.

A) B) C) D) E)

physiological esteem social safety self-actualization

46) In Abraham Maslow’s hierarchy of needs, the highest level is comprised of ________ needs.

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A) B) C) D) E)

physiological safety self-actualization esteem social

47) Lower-level needs such as hunger and thirst are important to marketers because these needs

A) B) C) D) E)

are the hardest to satisfy. are an ongoing source of motivation for most consumer purchase behavior. require marketers to invest heavily in promotional activities. offer marketers a basis for differentiating their products. are the source for most market development and assimilation strategies.

48) Robert, the CEO of a software company in Houston, has fulfilled his career goals. Therefore, he decides to retire and help eliminate societal problems. To achieve this goal, 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) B) C) D) E)

physiological social self-actualization esteem safety

49) The desire to have satisfying relationships with others and feel a sense of love, affection, belonging, and acceptance reflects ________ needs.

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A) B) C) D) E)

physiological social self-actualization esteem safety

50) ________ theory is an approach that deals with the structure and development of personality and focuses on the underlying motivations for human behavior.

A) B) C) D) E)

51)

Maslow’s hierarchy Psychoanalytic Lamarckian World-systems Structuration

Psychoanalytic theory was pioneered by

A) B) C) D) E)

Abraham Maslow. Sigmund Freud. Ivan Pavlov. David McClelland. Victor Vroom.

52) Marketing and advertisers market a product through consumer motivation. For example, Sean purchased a fuel-efficient sedan to satisfy his need for safety, while his friend Sam believed a pick-up truck was better transportation because it satisfied his social needs. This marketing method uses ________ to identify consumer motivation.

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A) B) C) D) E)

behavioral learning theory psychoanalytic theory affect-referral decision rule Maslow’s hierarchy of needs multiattribute attitude model

53) With respect to motivation research, which technique brings together small numbers of people with similar backgrounds and/or interests to discuss a particular product, idea, or issue?

A) B) C) D) E)

in-depth interview Delphi technique focus group association test nominal group technique

54) 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) B) C) D) E)

focus group interview stress interview projective interview coolhunting in-depth interview

55) 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

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A) B) C) D) E)

a predictive test. an in-depth interview. an association test. a focus group. a projective technique.

56) 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) B) C) D) E)

comprehension retention sensory input mnemonics subliminal perception

57) 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) B) C) D) E)

projective techniques focus interviews assimilation techniques association tests subliminal tests

58) Critics of psychoanalytic theory believe any results from motivation research are unusable because

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A) B) C) D) E)

59)

the results are too predictable. the theory is too sensitive to external environmental stimuli. the research relies heavily on later individual development. the theory is too vague. the research lacks flexibility.

Which of the following statements 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.

60) ________ 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) B) C) D) E)

Problem recognition Internal information search External information search Alternative evaluation Postpurchase evaluation

61) With respect to the consumer decision-making process, the stage that occurs immediately after the problem recognition stage is

A) B) C) D) E)

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elaborative rehearsal. purchase decision. postpurchase evaluation. information search. goal-directed selection.

170

62) 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) B) C) D) E)

63)

Which of the following statements is true of perception?

A) B) C) D) E) and color.

64)

internal information search external information search postpurchase evaluation problem recognition evoked set manipulation

Perception is an external process. Perception involves only one process—sensation. Perception is an individual process. Perception is independent of internal psychological factors. The perceptual process is unaffected by the characteristics of a stimulus like its size

Which of the following statements 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 get distorted and lead to illegal buying situations.

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65) Which of the following perception processes is the immediate, direct response to the taste, smell, touch, and hearing of stimuli?

A) B) C) D) E)

selection sensation assimilation disintegration interpretation

66) Various brands of perfume use scented strips in their ads to influence the consumer’s ________ and to increase the probability that the ad will be perceived.

A) B) C) D) E)

67)

level of sensory input personality internal information search cognitive dissonance echoic memory

What is the first step in the selective perception process?

A) B) C) D) E)

selective attention selective comprehension selective integration selective exposure selective retention

68) 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

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A) B) C) D) E)

selective attention. selective retention. selective exposure. selective assimilation. selective comprehension.

69) 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 experiencing

A) B) C) D) E)

selective attention. selective exposure. selective comprehension. selective retention. selective recall.

70) The step of the perception process where consumers interpret information based on their own attitudes, beliefs, motives, and experiences is known as

A) B) C) D) E)

selective attention. selective exposure. selective comprehension. selective retention. selective conditioning.

71) Through the use of mnemonics, advertisers hope consumers will not engage in ________ when they see the advertisements.

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A) B) C) D) E)

selective rehearsal selective bias selective comprehension selective retention selective attention

72) Symbols, rhymes, associations, and images that assist in the learning and memory processes are known as

A) B) C) D) E)

73)

drives. cues. mnemonics. trigger points. memes.

Ads that use telephone numbers that contain the company name are hoping to enhance

A) B) C) D) E)

selective sublimation. selective bias. selective determination. selective retention. selective understanding.

74) ________ is the ability to perceive a stimulus that is below the level of conscious awareness.

A) B) C) D) E)

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Selective conditioning perception Observer bias Lightness constancy Subliminal perception Stimuli interception

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75) The various brands identified as purchase options to consider during the alternative evaluation process are known as the consumer’s

A) B) C) D) E)

perceptive list. attribution list. neutral list. evoked set. sublimation set.

76) Todd buys a fruit-based drink every afternoon—either 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 those two drinks make up his

A) B) C) D) E)

latent set. brand attribution list. natural selection list. evoked set. subliminal choices.

77) During which stage of the consumer decision-making process are evoked sets and evaluative criteria relevant?

A) B) C) D) E)

problem recognition information search postpurchase evaluation alternative evaluation purchase decision

78) ________ are the dimensions or attributes of a product that are used to compare different alternatives.

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A) B) C) D) E)

Evaluative criteria Salient beliefs Dissonance motives Attribute bundles Reinforcement criteria

79) During which stage of the consumer decision-making process are both functional and psychosocial consequences important considerations?

A) B) C) D) E)

problem recognition information search postpurchase evaluation alternative evaluation observer bias

80) To someone purchasing an automobile, which of the following would be a subjective evaluative criterion?

A) B) C) D) E)

81)

price warranty fuel economy styling insurance cost

Which of the following statements is true of psychosocial consequences?

A) B) C) D) E)

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They are concrete outcomes of products. They are intangible in nature. They are directly experienced by consumers. They lack subjectivity. They are highly impersonal.

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82) ________ are the concrete outcomes of product or service usage that are tangible and directly experienced by consumers.

A) B) C) D) E)

Functional consequences Psychosocial consequences Attribute bundles Subjective consequences Personal stimuli

83) Johel is a consumer of a well-known brand of soda. Reviewing his budget, he realizes that he can save on his grocery purchases if he buys generic soda instead. However, he will continue to purchase his well-known brand of soda because the others he has tried just do not taste the same. This type of evaluative criterion is known as a

A) B) C) D) E)

a psychosocial consequence. a functional consequence. an integration process. a heuristic. a purchase intention.

84) In 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) B) C) D) E)

85)

functional consequences. psychosocial consequences. schedules of reinforcement. subjective bundles. physiological stimuli.

Which of the following is an example of a functional consequence?

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A) B) C) D) E)

86)

the need to order champagne to celebrate a birthday the desire to eat a pound of chocolate the feeling of euphoria that accompanies a purchase of a motorcycle the taste of buttered popcorn in a movie theater the joy of finding the perfect gift for a friend

Which of the following is an example of a psychosocial consequence?

A) B) C) D) E)

the taste of a soft drink the feeling of prestige associated with wearing a luxury watch the acceleration of an automobile the processing speed of a computer the firmness of a mattress

87) 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) B) C) D) E)

88)

functional consequences. psychosocial consequences. mnemonics. heuristics. physiological consequences.

For someone buying a car, which of the following is an objective evaluative criterion?

A) B) C) D) E)

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image price styling performance color

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89)

What 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.

90)

Which statement best defines an attitude?

A) It is an intense emotional response of a consumer when the consumer realizes that a repressed conflict is about to emerge into consciousness. B) It is a process by which an individual receives, selects, organizes, and interprets information to create a meaningful picture of the world. C) It is 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 a summary construct that represents an individual’s overall feelings toward or evaluation of an object. E) It is the process of presenting a new production process or product into the market and promoting the same to prospective customers.

91)

Which of the following statements is true about 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 remains stagnant over time.

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92) With respect to the consumer decision-making process, which stage can be considered to be an immediate outcome of the alternative evaluation stage?

A) B) C) D) E)

information search problem recognition purchase decision postpurchase evaluation elaborative rehearsal

93) 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) B) C) D) E)

mnemonics. heuristics. cognitions. eruditions. cues.

94) In its ads, The Coffee House stresses consumers’ overall emotional impressions of the brand with an attractive slogan. The slogan is designed to convey to consumers that The Coffee House sells exquisite and refreshing coffee. It wants its consumers to purchase on the basis of this impression and not on comparison. This is an example of a marketer using

A) B) C) D) E)

the affect referral decision rule. the mirror-image rule. belief-bias effect. bait-and-switch marketing. nonqualitative evaluative criteria.

95) ________ 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.

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A) B) C) D) E)

96)

Affect referral decision rule Bait-and-switch advertising Guerilla advertising The mirror-image rule Cognitive appraisal theory of emotion

Which statement 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.

97) ________ is a consumer’s preference for a particular brand that results in its repeated purchase.

A) B) C) D) E)

98)

Brand extension Brand stretching Brand spin-off Brand loyalty Brand equity

As an outcome of the alternative evaluation stage, the consumer develops

A) B) C) D) E)

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a heuristic tendency toward a particular brand. a predisposition to buy a certain brand. brand heuristics. individual brand recognition. a postpurchase evaluation set.

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99) 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) B) C) D) E)

100)

What is the final stage of the consumer decision-making process?

A) B) C) D) E)

101)

the existence of cognitive dissonance. the absence of any affect referral decisions. his strong brand loyalty. extensive decision making and strong psychosocial consequences. a lack of evaluative criteria.

postpurchase evaluation purchase decision information search alternative evaluation problem recognition

Which of the following is a possible consequence of postpurchase evaluation?

A) B) C) D) E)

brand extension purchase intention product differentiation cognitive resonance dissatisfaction

102) In the postpurchase evaluation stage, the performance of a product or service below expectations results in

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A) B) C) D) E)

the development of consideration threat. the creation of an evoked set. the purchaser’s dissatisfaction. the evaluation of attribute bundles. cognitive resonance in the buyer.

103) ________ is a state of psychological tension or postpurchase doubt a consumer may experience after making a difficult purchase decision.

A) B) C) D) E)

Availability heurism Self-serving bias Cognitive dissonance Impact bias Subliminal erudition

104) After purchasing a fancy-cut diamond ring for his wife, Jason feels dissatisfied with his purchase. He feels that the ring was overpriced and poorly cut. Moreover, Jason thinks that he should have selected the round brilliant-cut diamond rather than the fancy-cut diamond. In this scenario, Jason is experiencing

A) B) C) D) E)

impact bias. cognitive dissonance. psychosocial heurism. belief-bias effect. overregularization.

105) Many of the purchase decisions made by consumers for low-priced, frequently purchased products are characterized by

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A) B) C) D) E)

routine response behavior. cognitive dissonance. ambivalence. high involvement. cognitive learning.

106) For which decision is a consumer’s behavior most likely to be characterized by extended problem solving?

A) B) C) D) E)

purchase of laundry detergent selection of frozen meat purchase of a new set of skis by an avid skier selection of a restaurant for lunch with friends purchase of a brilliant-cut diamond wedding ring

107) ________ is the process by which individuals acquire the purchase and consumption knowledge and experience they apply to future related behavior.

A) B) C) D) E)

108)

Consumer lending Cognitive dissonance Consumer learning Cognitive distortion Cognitive extension

Which statement 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.

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109) Who contributed to the classical conditioning theory by conducting studies on animals and providing well-known examples for the theory?

A) B) C) D) E)

Maslow Pavlov Vroom McClelland Freud

110) A dog salivates during feeding time due to an innate reflex reaction. According to the conditioning theory in relation to this scenario, the food is

A) B) C) D) E)

an unconditioned stimulus. an external stimulus. an assimilated stimulus. a programmed stimulus. a conditioned stimulus.

111) With respect to classical conditioning, ________ occurs when an unconditioned stimulus and a conditioned stimulus occur in close proximity in time and space.

A) B) C) D) E)

repetition dissociative behavior response orientation contiguity negative reinforcement

112) When Mariah Carey paired her new perfume with the looks and sweetness of lollipops, it was an application of the principles of

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A) B) C) D) E)

repetition. dissociative behavior. classical conditioning. cognitive learning. operant conditioning.

113) 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.

114) Yummy Soups, a vegetable soup manufacturing company, uses coupons and sweepstakes to promote its soups. This practice reflects an application of

A) B) C) D) E)

115)

the belief-bias effect. bait-and-switch promotions. operant conditioning. classical conditioning. the cognitive appraisal theory of emotion.

The presence of a prize in every box of Joy Stick Snacks is an example of

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A) B) C) D) E)

classical reinforcement. continuous reinforcement. partial reinforcement. cognitive dissonance. intermittent reinforcement.

116) Learning occurs most rapidly under a(n) ________ reinforcement schedule, but the behavior is likely to cease when the reinforcement stops.

A) B) C) D) E)

continuous partial intermittent disintegrated flexible

117) The reinforcement of successive acts that leads to a desired behavior pattern or response is called

A) B) C) D) E)

shaping. blocking. mapping. counterconditioning. flooding.

118) Sam recently purchased a new HE front-loading washer that came with a sample-size Sunshine HE laundry detergent plus a coupon. He liked the results of the sample and used the coupon to purchase a regular-size package. A thank-you-for-your-purchase letter arrived in the mail with another Sunshine brand coupon. Sam went to the store but forgot the coupon; he purchased the Sunshine brand HE laundry detergent at full price because he now was in the habit of using that brand. Sam’s action is a result of

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A) B) C) D) E)

119)

a continuous reinforcement schedule. an approximation sequence. a shaping procedure. reinforcement. a partial reinforcement schedule.

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.

120) ________ refers to relatively homogeneous divisions in a society into which people sharing similar lifestyles, values, norms, interests, and behaviors can be grouped.

A) B) C) D) E)

Neoculture Subculture Social class Dissociative group Reference group

121) 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.

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A) B) C) D) E)

upper middle lower innovator white collar

122) 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 Robb Report, Wall Street Journal, Financial Times). His target audience may be most appropriately characterized by

A) B) C) D) E)

avoidance reference group. social class. motives. situational influences. demographics.

123) 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 highly engaged in after-school activities, family valued above work, and one or both parents having 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) B) C) D) E)

upper middle lower innovator blue collar

124) ________ is a broad, abstract external factor, and characterizes people based on their shared values, norms, learned meanings, and customs.

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A) B) C) D) E)

Culture Geography Behavior Psychology Social class

125) 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) B) C) D) E)

social class life cycle perception social identity culture

126) ________ refers to smaller groups or segments whose beliefs, values, norms, and patterns of behavior set them apart from the larger cultural mainstream.

A) B) C) D) E)

Subculture Social class Reference group Motivation Attitude

127) 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 beliefs, values, norms, and patterns of behavior different from those of the larger cultural mainstream.

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A) B) C) D) E)

cultures social classes subcultures motivations attitudes

128) When Andy develops a new line of make-up for African Americans, he is targeting ________ within the larger cultural mainstream.

A) B) C) D) E)

an aspirational group a social class an advocacy group a subculture a neoculture

129) Which term 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) B) C) D) E)

130)

alpha-consumer group focus group reference group demographic group cultural sect

A reference group to which one does not wish to belong is a(n) ________ group.

A) B) C) D) E)

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heuristic disassociative evoked mnemonic confrontational

191

131) When the Saskatchewan 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) B) C) D) E)

132)

heuristic disassociative evoked mnemonic confrontational

Reference groups to which one would like to belong are called ________ groups.

A) B) C) D) E)

aspirational heuristic evoked mnemonic alpha

133) 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) B) C) D) E)

purchasing agents. consumers. influencers. information providers. initiators.

134) 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. So, Jim collects several magazines and articles about buying cars. In this scenario, Jim is the

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A) B) C) D) E)

decision maker. initiator. influencer. information provider. consumer.

135) With respect to the roles in the family decision-making process, the person who decides what criteria will be used in the purchase selection process is called the

A) B) C) D) E)

influencer. consumer. initiator. purchasing agent. decision maker.

136) 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) B) C) D) E)

influencer. purchasing agent. decision maker. gatekeeper. consumer.

137) In the family decision-making process, the person in the family who is responsible for starting the purchase decision process is the

A) B) C) D) E)

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purchasing agent. consumer. initiator. information provider. influencer.

193

138) In its advertising, The American Eurocopter company shows its product on a large yacht in the hope of appealing to the upper stratum of ________. This term refers to relatively homogeneous divisions in a society into which people sharing similar lifestyles, values, norms, behaviors, and interests can be grouped.

A) B) C) D) E)

139)

social class reference group culture communications usage

Which of the following statements 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 studying consumers because it takes into account their complexity and multidimensionality.

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Answer Key Test name: chapter 4 1) TRUE 2) TRUE 3) TRUE 4) FALSE 5) TRUE 6) C 7) D 8) E 9) D 10) D 11) C 12) D 13) B 14) C 15) C 16) D 17) E 18) D 19) B 20) B 21) D 22) E 23) A 24) D 25) B 26) E Version 1

195

27) B 28) D 29) B 30) D 31) C 32) A 33) C 34) A 35) B 36) B 37) D 38) D 39) A 40) B 41) A 42) A 43) D 44) A 45) D 46) C 47) B 48) C 49) B 50) B 51) B 52) B 53) C 54) E 55) C 56) C Version 1

196

57) A 58) D 59) B 60) B 61) D 62) B 63) C 64) C 65) B 66) A 67) D 68) A 69) B 70) C 71) D 72) C 73) D 74) D 75) D 76) D 77) D 78) A 79) D 80) D 81) B 82) A 83) B 84) A 85) D 86) B Version 1

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87) B 88) B 89) A 90) D 91) C 92) C 93) B 94) A 95) A 96) B 97) D 98) B 99) C 100) A 101) E 102) C 103) C 104) B 105) A 106) E 107) C 108) A 109) B 110) A 111) D 112) C 113) B 114) C 115) B 116) A Version 1

198

117) A 118) C 119) E 120) C 121) A 122) B 123) B 124) A 125) E 126) A 127) C 128) D 129) C 130) B 131) B 132) A 133) B 134) D 135) A 136) B 137) C 138) A 139) E Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) Distractions from technology, including laptops, tablets, and mobile phones/smartphones, can introduce noise into the communication model. ⊚ ⊚

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true false

199

2) 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

3) 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

4) 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

5) Three critical intermediate effects occur between advertising and purchase: cognition, affect, and experience. ⊚ ⊚

true false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 6) Success Advertising is known for their use of pictures, sounds, and color in their integrated marketing campaigns. They take great care in researching both the environment and the consumer’s interpretation of the message. Success Advertising is demonstrating an awareness of

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A) B) C) D) E)

transmission. channel. encoding. communication. barriers.

7) When Blueberry Designs decided to patent their blueberry-color soles, they created a recognizable symbol of their brand. This communication process of creating a message to be received and understood by the consumer is called

A) B) C) D) E)

sourcing. encoding. decoding. word-of-mouth. messaging.

8) Success Advertising continues to be a leader in creating integrated marketing campaigns due to their ability to create an image or impression that is appropriate for the channel of communication. That image or impression is also known as a

A) B) C) D) E)

source. visual. channel. pattern. message.

9) Some brands use celebrities who relate to their consumer group in ads to represent the brand. In marketing communications, the celebrity is known as the

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A) B) C) D) E)

10)

attractor. entity. brand. founder. source.

Mass media is what type of channel?

A) B) C) D) E)

private personal impersonal nonpersonal detached

11) Terry, a salesperson for Big Ticket Sales, creates a tailored presentation to share with a consumer and solicit feedback. What type of communication channel is he using?

A) B) C) D) E)

12)

private personal impersonal nonpersonal detached

Another name for buzz marketing is

A) B) C) D) E)

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sourcing. encoding. decoding. word of mouth. messaging.

202

13) During events like the Academy Awards, celebrities receive gift bags backstage and at after-parties. Sponsors hope the celebrities will talk about these goodies, sparking consumer interest and generating a type of word-of-mouth marketing called

A) B) C) D) E)

viral marketing. encoding. buzz marketing. seeding. decoding.

14) All Around Marketers is working with WriteOn Stationery to create a back-to-basics campaign promoting handwritten letters and thank-you notes. They believe the right consumer audience to start the trend will be this year’s graduating students, who will start the viral process. Selecting this audience is known as

A) B) C) D) E)

viral marketing. encoding. buzz marketing. seeding. decoding.

15) Blueberry Designs’ new activewear line launched with an Instagram campaign asking consumers to post photos of themselves wearing Blueberry Design activewear during workouts, hiking, and other active interests. Organizing an effort for people to recommend the Blueberry Design brand is an example of

A) B) C) D) E)

viral marketing. hierarchy of effects model. information processing model. buzz marketing. innovation adoption model.

16) The digital world of is one channel for word-of-mouth communication to generate buzz about a product. What percent of word-of-mouth communications takes place face to face? Version 1

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A) B) C) D) E)

17) and

35 percent 85 percent 45 percent 25 percent 75 percent

Traits and motivations for sharing social media content include altruism, innovativeness,

A) B) C) D) E)

reservation. introversion. a social network. extroversion. timidity.

18) Productivity Advertising’s CEO recently spoke at an integrated marketing conference. He shared that about 25 percent of consumer conversations about brands are discussing those they have seen on

A) B) C) D) E)

electronic billboards. television magazine back covers. Facebook. Instagram.

19) In the communication process, when the consumer (receiver) and the marketer (sender) share common ground, there is a better chance that successful ________ will occur.

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A) B) C) D) E)

purchasing encoding decoding processing tracking

20) Productivity Advertising is working with Inroad Enterprises to train a new team of salespeople on the steps to guide a customer through the buying process. They are teaching the stages of attention, interest, desire, and action. This is known as the

A) B) C) D) E)

hierarchy of effects model. standard learning model. ADIA model. innovation adoption model. low-involvement hierarchy.

21) Creative Boutiques is working with Success Advertising to develop targeted media for their next direct-mail campaign. Their exclusive, well-defined clientele are accustomed to being catered to by a small group of salespeople who function like personal shoppers. Creative Boutiques addresses a

A) B) C) D) E)

market channel. market source. market segment. market dissonance. market niche.

22) Success Advertising realizes that consumer move from being unaware of a brand to learning about a number of brands, then methodically reducing the number through familiarity and evaluation before choosing to purchase. What foundational model is basis for the classic purchase funnel metaphor?

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A) B) C) D) E)

hierarchy of effects model standard learning model ADIA model innovation adoption model low-involvement hierarchy

23) Apollo has a knack for photography. He is ready to purchase a high-end camera but is unsure where to start. He signed up at the local BuyItAll for a class to learn more about the various brands and to see how he feels about the equipment in use. After customers complete the course, BuyItAll offers both a 10% discount for purchases and a trial period for exchanges. Apollo is participating in an alternative response hierarchy model called the

A) B) C) D) E)

hierarchy of effects model. standard learning model. consumer decision journey. elaboration likelihood model. central route to persuasion.

24) Annalise is interested in changing her beauty routine. She has visited make-up counters, read marketing ads and reviews online, and visited a few spas during her research. Her decisionmaking process is not straight forward, but a series of feedback loops and active shopping with controlled touch points. Annalise is practicing which of the following response models?

A) B) C) D) E)

hierarchy of effects model standard learning model consumer decision journey elaboration likelihood model central route to persuasion

25) Annalise has been reading skin care articles on social media, coming to realize that many are detailed advertisements that look like articles. She is paying close attention to the arguments presented in these messages, scrutinizing the content. Annalise is demonstrating

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A) B) C) D) E)

a hierarchy of effects model. a standard learning model. consumer decision journey. an elaboration likelihood model. central route to persuasion.

26) Success Advertising knows that partnering with the best celebrity match to represent the KB brand is critical to the success of their integrated marketing plan. They want consumers to react to favorably to the celebrity and generate

A) B) C) D) E)

support arguments. sources. source derogations. counterarguments. source bolsters.

27) Annaliese has found an ad article for a skin care product brand offered by her local spa. The ad, along with the sales presentation by her spa aesthetician (who also sells the product on commission) present strong arguments for the brand’s benefits. Annaliese is finding it hard to refute these arguments as she carefully considers and evaluates the message toward a major investment in the brand’s line of products. Which model describes Annaliese’s response to the persuasive messages?

A) B) C) D) E)

hierarchy of effects model a standard learning model consumer decision journey elaboration likelihood model central route to persuasion

28) Which of the following statements is true of the way organizations send communication messages?

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A) B) C) D) E)

They communicate using press releases, websites, and package designs. They are legally not allowed to use graphic systems and visual images. They use promotions for B2B communications solely. They typically use brand names to create recognition but not for communication. They do not use logos as a means of communication.

29) ________ 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) B) C) D) E)

30)

Negotiation Source integration Assimilation Perception Communication

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.

31) The ________ of a communication is the person or organization that has information to share with another person or group of people.

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A) B) C) D) E)

32)

essence source message receiver channel

The process of putting thoughts, ideas, or information together in symbolic form is called

A) B) C) D) E)

encoding. deciphering. sourcing. seeding. decoding.

33) An ad by the Minnesota State Tourism Department that promotes Minnesota as a vacation destination is 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 is

A) B) C) D) E)

the Minnesota State Tourism Department. Life Mode magazine. the couple in the scenic picture. the slogan. the reader of the magazine.

34) 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

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A) B) C) D) E)

channel messenger. encoder. decoder. source. receiver.

35) Lily hosts a well-known television show, Real Life. 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) B) C) D) E)

36)

The communication process begins with the process of

A) B) C) D) E)

37)

the television network that airs the ad. Rochelle Cosmetics. Lily. the audience. the Real Life television show.

encoding. encrypting. channeling. decoding. bolstering.

The source or sender of an advertising communication

A) B) C) appeared. D) E)

Version 1

is typically the owner and shareholder of a company. cannot be a nonpersonal entity. is typically identified as the owner of the medium in which the communication can be an individual who promotes the product in an ad, such as a celebrity. is never involved in the encoding process.

210

38)

Which statement 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.

39)

The encoding process leads to the development of

A) B) C) D) E)

a message. noise. a channel. feedback. a response.

40) In a communication process, ________ refers to the information and/or meaning contained in a message.

A) B) C) D) E)

source encoding decoding content noise

41) 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.

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A) B) C) D) E)

source encoding decoding design content

42) 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) B) C) D) E)

channel. receiver. encoder. source. decoder.

43) According to the basic model of communication, which of the following is an example of a channel?

A) B) C) D) E)

44)

The number of customers who redeemed a cents-off coupon A billboard beside an interstate highway The creative team that designed an ad for a leading retail chain A company’s spokesperson A celebrity appearing in an ad for a cosmetics brand

Which of the following is an example of a nonpersonal communication channel?

A) B) C) D) E)

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magazines e-mail social media telemarketing stress interviews

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45)

Which statement about nonpersonal channels of communication is true?

A) B) C) D) E)

46)

Which of the following is an example of a personal communication channel?

A) B) C) D) E)

47)

radio billboard newspaper e-mail magazine

Which of the following can serve as a personal channel of communication?

A) B) C) D) E)

48)

They include direct mail and billboards. They include methods such as e-mail and social media. The Internet cannot be considered a nonpersonal channel. They do not include print media. They do not include broadcast media.

sales team newspaper radio magazine television

Which of the following statements 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.

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49) Aino, a leading automaker, broadcasts a commercial during Moral Decree, a TV program that is viewed by eight million viewers. Which of the following types of communication is occurring in this scenario?

A) B) C) D) E)

individualized direct response nonpersonal semiotic personal

50) Iconix supermarkets placed an insert in Tuesday’s Great Plains Digest, a regional newspaper that has more than 100,000 subscribers. The newspaper is an example of a(n) ________ channel of communication.

A) B) C) D) E)

51)

buzz direct-response nonpersonal interpersonal verbal

Which statement about buzz marketing is true?

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.

52)

________ is the process of transforming a sender’s message back into thought.

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A) B) C) D) E)

53)

Decoding Encoding Channeling Sourcing Transmitting

Which of the following statements 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.

54) Which communication process will be most influenced by the experiences, perceptions, attitudes, and values of a message recipient?

A) B) C) D) E)

channel transmission decoding noise feedback transmission

55) Which component of a communication process is heavily influenced by a receiver’s field of experience?

A) B) C) D) E)

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encoding decoding message channel noise

215

56) The experiences, perceptions, attitudes, and values a consumer brings to a communication situation are referred to as his or her

A) B) C) D) E)

semiotic involvement. field of experience. common ground. source characteristics. selective bindings.

57) Zing Candy launches an ad that shows people being revitalized after eating their candy bar. The ad attempts to deliver the message “Instant energy.” Janice Cooper, a viewer of the ad, thinks that people in the ad seem rude and irritating. In terms of the communication process, Janice has ________ the message improperly.

A) B) C) D) E)

encoded conveyed decoded transmitted channeled

58) The fact that marketing and advertising people have backgrounds and interests that are often quite different from the consumers who comprise mass markets for many products and services makes it difficult to establish

A) B) C) D) E)

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an encoding process. conditioned perceptions. response hierarchies. a common ground. fields of experience.

216

59) 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 possible explanation for such a highly differential perception of the ads would be the absence of

A) B) C) D) E)

60)

an interpretative link. a feedback mechanism. response hierarchies. common ground. binding influences.

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.

61)

________ is any unplanned distortion or interference in the communication process.

A) B) C) D) E)

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Semiotics Selectivity Noise Dissonance Blocking

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62) 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) B) C) D) E)

poor encoding. selective sourcing. inappropriate advertiser binding. inappropriate advertiser binding. disturbances known as noise.

63) 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) B) C) D) E)

an encoding hazard. a sourcing block. negative feedback. a perceptive block. noise.

64) In a communication process, a receiver’s set of reactions after seeing, hearing, or reading a message is known as a

A) B) C) D) E)

noise. perception. source. channeling. response.

65) In a communication process, ________ is the part of a receiver’s response that is communicated back to the sender.

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A) B) C) D) E)

feedback noise sourcing encoding decoding

66) Which of the following provides the sender of an advertising message with an appropriate way of monitoring the effectiveness of an intended message?

A) B) C) D) E)

encoding mechanisms decoding mechanisms feedback noise filters channel

67) An ad for the Tributary Hotel in Chicago has a number for people to call if they are interested in reserving rooms 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) B) C) D) E)

feedback. encoding. noise filtering. noise blocking. decoding.

68) 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

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A) B) C) D) E)

encoding. decoding. feedback. noise. filters.

69) Instantaneous feedback on the effectiveness of a marketing communication method is most likely possible in

A) B) C) D) E)

personal-selling situations. radio advertising. television advertising. direct-mail advertising. mass-communication channels.

70) Counts of customer visits to a store, consumer inquiries, coupon redemptions, and reply cards are all possible forms of gathering

A) B) C) D) E)

encoding systems. feedback. noise. message channels. decoding mechanisms.

71) In the context of the marketing communications process, which of the following products is most likely to be promoted by targeting individuals?

A) B) C) D) E)

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chocolate bars fizzy drinks real estate soap pizza

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72)

Which of the following is true of market niches?

A) B) C) publicity. D) E)

They are usually large mass market segments. They are well-defined market segments. They are typically reached using mass communication such as advertising and They are not suitable for specialized goods. They include broader classes of buyers who have similar needs.

73) The best way to reach a narrowly defined group of customers or a market niche is through

A) B) C) D) E)

television advertising and billboards. personal-selling and targeted direct mail. advertising and radio advertising. any form of broadcast media. transit advertising, billboards, and publicity.

74) Which of the following is most suitable for reaching a large consumer market segment with a broad class of buyers?

A) B) C) D) E)

75)

e-mail marketing personal selling magazine advertising targeted direct-mail advertising buzz marketing

The AIDA model was developed to represent the stages during the ________ process.

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A) B) C) D) E)

personal-selling magazine advertising mass-marketing sales promotions radio advertising

76) According to the AIDA model, a prospective consumer first passes through the ________ stage.

A) B) C) D) E)

77)

attention comprehension interest desire action

According to the AIDA model, a customer expressing interest and desire is in the

A) B) C) D) E)

affective stage. cognitive stage. behavioral stage. action stage. adoption stage.

78) The ________ model is a response model that was developed as a paradigm for setting and measuring advertising objectives.

A) B) C) D) E)

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AIDA hierarchy of effects innovation adoption adoption response diffusion rate

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79) The ________ model is the basis for the classic purchase funnel metaphor that is often used to depict the decision process consumers go through.

A) B) C) D) E)

diffusion rate objective-task innovation adoption hierarchy of effects adoption objective

80) Which of the following response hierarchy models depicts consumers going through the successive stages of awareness, interest, evaluation, trial, and adoption?

A) B) C) D) E)

the AIDA model the hierarchy of effects model the innovation adoption model the information processing model the adoption differentiation model

81) Which of the following response hierarchy models depicts consumers going through the stages of attention, presentation, comprehension, yielding, retention, and behavior?

A) B) C) D) E)

the AIDA model the hierarchy of effects model the innovation adoption model the information processing model the integrated information response model

82) Which of the following hierarchical response models assumes the receiver in a persuasive communication situation to be an information processor or problem solver?

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A) B) C) D) E)

the AIDA model the hierarchy of effects models the innovation adoption model the information processing model the five-Ws model

83) DigiData Inc. launched a new smartphone with new features in the market. 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) B) C) D) E)

hierarchy of effects AIDA innovation adoption cognitive response information processing

84) 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) B) C) D) E)

hierarchy of effects AIDA innovation adoption cognitive response information processing

85) 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.

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A) B) C) D) E)

hierarchy of effects AIDA innovation adoption cognitive response information processing

86) 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) B) C) D) E)

consumers are aware of Velocity’s advertising. consumers have favorable attitudes toward Velocity. Velocity is using a concentrated marketing program. consumers have evaluated Velocity’s products. Velocity has adopted a niche marketing strategy.

87) 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) B) C) D) E)

cognitive affective behavioral conative comprehension

88) Trial, purchase, adoption, and rejection are all examples of the ________ stage of the response process.

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A) B) C) D) E)

cognitive affective behavioral motivational learning

89) 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) B) C) D) E)

cognitive affective behavioral conative learning

90) According to the ________, a consumer is an active participant in a communication process who gathers information through active studying.

A) B) C) D) E)

standard learning hierarchy low-involvement hierarchy dissonance/attribution model peripheral processing model maximum likelihood model

91) According to the standard learning model, through which of the following response sequences does a consumer pass?

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A) B) C) D) E)

learn → feel → do learn → do → feel feel → learn → do do → feel → learn do → learn → feel

92) 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) B) C) D) E)

standard learning dissonance/attribution low-involvement cognitive response five-Ws

93) 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) B) C) D) E)

standard learning dissonance/attribution low-involvement cognitive response five-Ws

94) 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.

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A) B) C) D) E)

standard learning dissonance/attribution low-involvement cognitive response five-Ws

95) According to the dissonance/attribution model, during the decision-making process, through which of the following response sequences does a consumer pass?

A) B) C) D) E)

learn →feel → do learn → do → feel feel → learn → do do → feel → learn do → learn → feel

96) According to the ________ model proposed by Michael Ray, learning from the mass media occurs after a purchase is made.

A) B) C) D) E)

low-involvement standard learning dissonance/attribution cognitive response elaboration likelihood

97) 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.

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A) B) C) D) E)

individual response standard learning dissonance/attribution low-involvement customary learning

98) For which of the following products would an advertiser be more likely to use the lowinvolvement hierarchy to explain the consumer decision-making process?

A) B) C) D) E)

bar of soap digital camera refrigerator yard landscaping wedding dress

99) 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) B) C) D) E)

100)

AIDA diffusion of innovations hierarchy of effects innovation adoption information processing

Which of the following is true of the low-involvement hierarchy?

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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.

101) In the ________ hierarchy, a consumer engages in passive learning and random information catching rather than active information seeking.

A) B) C) D) E)

standard learning low-involvement dissonance/attribution habit formation information processing

102) 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) B) C) D) E)

103)

standard learning low-involvement dissonance/attribution habit-formation information-processing

Which of the following is true of low-involvement advertising?

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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.

104)

Marketers of products such as mustard, paper towels, and batteries

A) B) C) program. D) E)

must avoid using mass-media advertising strategies. must use slogans, symbols, and visual image personalities to promote their products. must use personal-selling strategies in order to create a sustainable marketing must opt for high-involvement advertising strategies. must avoid sales promotions and publicity.

105) 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) B) C) D) E)

106)

a visual image personality. an affective character. a selectively remembered personality. high-involvement advertising appeal. a pseudo-celebrity.

Visual image personalities

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A) B) C) D) E) purchase.

107)

From a promotional planning perspective, it is important that marketers

A) B) C) D) E)

108)

create a divisional marketing communications program. avoid using broadcast and print media strategies. determine which type of response process is most likely to occur. avoid using an integrated marketing communications program. eliminate the need for the trial stage in the response process.

Typically, when consumers are in a “passive” shopping mode,

A) decisions. B) C) D) E)

109)

are typically used with complex products that require high involvement. generally appear in ads for low-involvement products. require central route processing to be effective. typically abbreviate the cognitive stage of a consumer decision-making process. are used when consumers must go through all stages of AIDA before making a

they are purposefully seeking assistance in order to make informed purchase the information and advice they need to make a purchase comes to them unsolicited. they tend to visit the website of a company or brand for product information. they are perpetually in an information processing role. they seek help from search engines in selecting brands of their choice.

The social consumer decision journey framework recognizes that

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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.

110)

Consumers in an “active” shopping mode

A) B) C) D) E)

typically receive information in an unsolicited manner. do not pass through the “evaluate” and “awareness” stages. are more likely to purposefully seek information and/or assistance. are generally averse to purchasing new products. are not influenced by marketer-dominated touch points.

111) ________ are thoughts that occur to a consumer when reading, viewing, and/or hearing a communication of advertising messages.

A) B) C) D) E)

Cognitive responses Affective responses Selective impressions Behavioral responses Conative impressions

112) 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.

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A) B) C) D) E)

cognitive kinesthetic selective behavioral creative

113) 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) B) C) D) E)

counterargument. support argument. source bolster. cognitive dissonance. source blockage.

114) 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) B) C) D) E)

a counterargument. a support argument. source bolstering. negative dissonance. positive dissonance.

115) 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

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A) B) C) D) E)

negative ad execution thought. negative source derogation. support argument. counterargument. positive source bolster.

116) Bianca saw a magazine ad for Savvy Sheen hair shampoo that claimed it contains only natural herbal extracts and milk proteins. The ad also stated that Savvy’s products were free 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) B) C) D) E)

negative source bolster. source derogation. support argument. counterargument. positive source bolster.

117) Kevin saw a television ad for the season finale of Expedition of Triumph, a reality series. He was impressed with the ad, so 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) B) C) D) E)

a noncognitive response. a source derogation. a support argument. a counterargument. an emotional argument.

118) 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

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A) B) C) D) E)

119)

Which of the following is true of source derogation?

A) B) C) D) E)

120)

a positive source derogation. a rebuttal. a counterargument. a support argument. an ad executive thought.

They are positive thoughts about the spokesperson in an ad. They generally lead to a reduction in message acceptance. They enhance brand recognition. They are considered to be a useful tool for measuring consumer loyalty. They are one of the least important types of emotional responses to an ad.

Negative thoughts about a spokesperson or organization making a claim are known as

A) B) C) D) E)

source derogations. counterarguments. source bolsters. source blockages. message filters.

121) 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) B) C) D) E)

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counterargument. support argument. source bolster. source derogation. message blockage.

236

122)

Which of the following is true of source bolsters?

A) B) C) D) E)

They are positive reflections toward an ad. They are emotional responses to an ad. They are also known as positive counterarguments. They are less likely to lead to consumer purchase. They are an individual’s thoughts about the ad itself.

123) AB Corp. hires Natasha Cooper, a popular movie actress, to be the brand ambassador for the company. The company hopes that her endorsements of its products 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) B) C) D) E)

source derogations. counterarguments. source bolsters. source blockages. message synergy.

124) A company that hires a spokesperson with whom its target audience is likely to identify and respond favorably is

A) B) C) D) E)

attempting to create cognitive dissonance. creating a source bolster. engaging in niche marketing. creating an ambivalent situation. enabling counterarguments.

125) ________ include consumers’ reactions to ad factors such as the creativity of an ad, the quality of the visual effects, colors, and voice tones.

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A) B) C) D) E)

Source bolsters Source derogations Ad execution-related thoughts Counterarguments Ad dissonance thoughts

126) With reference to ad execution thoughts, advertisers are interested in consumers’ reactions to an ad because

A) the company’s image is directly proportional to the number of advertisements it produces annually. B) they want to segregate the target audience according to their cognitive reactions to an advertisement. C) affective reactions are an important determinant of advertising effectiveness. D) this knowledge enables organizations to create suitable counterarguments. E) this knowledge helps organizations determine the direction of the integrated marketing communications process.

127) The ________ model addresses the differences in the way consumers process and respond to persuasive advertising messages.

A) B) C) D) E)

elaboration likelihood five-Ws AIDA information processing cognitive response

128) The elaboration likelihood model (ELM) was developed to explain how persuasive communications lead to persuasion by influencing

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A) B) C) D) E)

dissonance formation. attributions. source bolsters. attitudes. group norms.

129) 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) B) C) D) E)

dissonance motivation ability attitude competency

130) 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 route to persuasion?

A) B) C) D) E)

support arguing central processing peripheral processing source bolstering comparative analysis

131) 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

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A) B) C) D) E)

a pioneer of word-of-mouth advertising campaigns. a passive participant who relies heavily on imagery processing. a very involved participant in the communications process. having low ability to attend to and comprehend a message. likely to engage in only minor cognitive processing.

132) According to the elaboration likelihood model (ELM), a receiver lacks the ability or motivation to process information under the ________ route to persuasion.

A) B) C) D) E)

central peripheral cognitive high-involvement affective

133) 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 is more important than a spokesperson, headline, pictures, or music. E) the message deals with high-involvement buying situations.

134) 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?

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A) B) C) D) E)

135)

support arguing central processing peripheral processing source bolstering source blocking

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.

136) 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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Answer Key Test name: chapter 5 1) TRUE 2) TRUE 3) FALSE 4) TRUE 5) TRUE 6) D 7) B 8) E 9) E 10) D 11) B 12) D 13) C 14) D 15) A 16) E 17) D 18) B 19) C 20) C 21) E 22) A 23) B 24) C 25) E 26) E Version 1

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27) D 28) A 29) E 30) B 31) B 32) A 33) A 34) D 35) C 36) A 37) D 38) C 39) A 40) D 41) D 42) A 43) B 44) A 45) A 46) D 47) A 48) D 49) C 50) C 51) D 52) A 53) A 54) B 55) B 56) B Version 1

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57) C 58) D 59) D 60) E 61) C 62) E 63) E 64) E 65) A 66) C 67) A 68) C 69) A 70) B 71) C 72) B 73) B 74) C 75) A 76) A 77) A 78) B 79) D 80) C 81) D 82) D 83) C 84) B 85) E 86) A Version 1

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87) A 88) C 89) B 90) A 91) A 92) A 93) B 94) B 95) D 96) C 97) D 98) A 99) C 100) B 101) B 102) B 103) A 104) B 105) A 106) B 107) C 108) B 109) E 110) C 111) A 112) A 113) A 114) A 115) D 116) C Version 1

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117) C 118) D 119) B 120) A 121) D 122) A 123) C 124) B 125) C 126) C 127) A 128) D 129) B 130) B 131) C 132) B 133) A 134) C 135) B 136) C Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) When used as an indirect source, a model/celebrity delivers the main message of an advertisement. ⊚ ⊚

true false

There are two important dimensions to credibility: expertise and trustworthiness.

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⊚ ⊚

true false

3) Creating an image or culture around the CEO protects the corporate brand image from being affected by controversy. ⊚ ⊚

true false

4) 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

5) 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

6) 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

7) High levels of fear in an advertisement can produce inhibiting effects; the receiver may emotionally block the message by tuning it out. ⊚ ⊚

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true false

247

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 8) 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) B) C) D) E)

comparative refutational humor fear conditional

Independent variables are which part of the communication process?

A) B) C) D)

uncontrolled controlled audience comprehension expensive

10) Promotional planners need to know how decisions about each independent variable influence the stages of the response hierarchy so that they don't

A) B) C) D)

11)

develop unknown dependent variables. stay within the predetermined budget. enhance one stage at the expense of another. reach the right target audience.

Source credibility leads to

A) B) C) D)

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overexposure. trustworthiness. overshadowing. similarity.

248

12)

Source attractiveness leads to persuasion through a process of

A) B) C) D)

overexposure. identification. overshadowing. trustworthiness.

13) In 2009, the Federal Trade Commission passed a set of guidelines requiring online endorsers and bloggers to disclose

A) B) C) D)

any material connection they might have to a company. the compensation received for the endorsement. any endorsements of competitive products. their annual income.

14) Over time, a low-credibility source may become as effective as a high-credibility source due to

A) B) C) D)

15)

overexposure. the sleeper effect. identification. trustworthiness.

High- and low-credibility sources are equally effective when they are

A) B) C) D)

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arguing for a position opposing their own best interest. promoting a low-value product. both celebrities. arguing for a position in their own best interest.

249

16) Marketers recognize that people are more likely to be influenced by a message when it comes from someone who is

A) B) C) D)

similar to them. highly attractive. come from another country. extremely successful.

17) What is it called when consumers focus their attention on the celebrity and fail to notice or recall the brand or advertising message?

A) B) C) D)

overexposure vampire effect identification similarity

18) When a celebrity endorses many products, consumer skepticism of those endorsements increases. This phenomenon is caused by

A) B) C) D)

the vampire effect. overexposure. identification. similarity.

19) When an advertiser assumes a recency effect, the strongest arguments appear at which point in the message?

A) B) C) D)

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beginning middle end anywhere

250

20) Many press releases use the "pyramid style" of writing. In this style, where is the most important information presented?

A) beginning B) middle C) end

21) When immediate impact is not the objective and repeated exposure will give the audience members opportunities to draw their own conclusions, which type of message is ideal?

A) B) C) D)

pyramid closed-ended recency effect open-ended

22) Advertisers who are concerned about the negative effects of acknowledging a weakness in their brand are likely to choose which type of message?

A) B) C) D)

23) use

open-ended closed-ended one-sided two-sided

Marketers that want to differentiate their brand in a competitive marketplace will often

A) B) C) D)

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one-sided messaging. comparative advertising. fear advertising. humor advertising.

251

24)

Advertisers will often pair what with copy to enhance the message receptivity in an ad?

A) B) C) D) E)

verbal communication imagery one-sided messaging two-sided messaging comparative messaging

25) Which term applies to the situation where consumers no longer pay attention to a commercial after multiple exposures?

A) B) C) D)

26)

overexposure wearout vampire effect adaptability

Which of the following provides externally paced information?

A) newspaper B) magazine C) news broadcast D) Internet

27)

Which term refers to the amount of advertising in a medium?

A) B) C) D)

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overexposure wearout clutter saturation

252

28) The ________ is a promotional planning tool that marketers can use to consider how each controllable element of the communications model interacts with the consumer's response process.

A) B) C) D) E)

dissonance/attribution matrix persuasion matrix AIDA model response model elaboration likelihood model

29) According to the persuasion matrix, which of the following is a dependent variable of the communications model?

A) B) C) D) E)

source message comprehension channel type of message appeal

30) In the persuasion matrix, the independent variable that takes into account the passage of information from one person to another is the

A) B) C) D) E)

source. message. behavior. retention. destination.

31) According to the persuasion matrix, which of the following is an independent variable in the consumer's response process?

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A) B) C) D) E)

attention comprehension destination yielding retention

32) 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 jargon in the ad.

A) B) C) D) E)

attention yielding presentation comprehension retention

33) 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) B) C) D) E)

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its portrayal is offensive. it contains jargons that is incomprehensible to the target audience. the media channel used is inappropriate. of the extensive clutter. it is not endorsed by a celebrity parent.

254

34) 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) B) C) D) E)

reception channel attention presentation behavior

35) 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) B) C) D) E)

channel/yielding source/attention receiver/comprehension channel/presentation message/yielding

36) A spokesperson who delivers an advertising message and endorses a product or service is known as

A) B) C) D) E)

a direct source. an indirect source. a message shaper. a source mirage. a source echo.

37) A(n) ________ doesn't actually deliver a message but draws attention to and enhances the appearance of an ad.

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A) B) C) D) E)

direct source indirect source message shaper source mirage source echo

38) 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) B) C) D) E)

power, image, and knowledge. credibility, attractiveness, and power. knowledge, fee, and differentiability. consistency, credibility, and continuity. credibility, reputation, and individuality.

39) ________ 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) B) C) D) E)

Source attractiveness Source popularity Source credibility Source power Source identification

40) 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

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256

A) B) C) D) E)

consistency and image. image and trustworthiness. differentiability and expertise. expertise and trustworthiness. image and expertise.

41) ________ is the process in which a receiver adopts the opinion of a credible communicator because he or she believes information from this source is accurate.

A) B) C) D) E)

Identification Compliance Internalization Conformity Yielding

42) Expertise and trustworthiness are very important when focusing on source ________, one of the categories of source attributes developed by Herbert Kelman.

A) B) C) D) E)

power attractiveness credibility identification image

43) A fatal accident at the production facility of GA Inc., a mobile manufacturer, has killed 58 factory workers. Customers now perceive the company negatively. In an attempt to revive its reputation, the company 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

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A) B) C) D) E)

acting as a positive source derogation. inhibiting counterarguments about the company and its products. eliminating advertising clutter. attempting to change consumer buying patterns. stimulating consumers to purchase the company's products.

44) A study conducted by Roobina Ohanian about consumers' perceptions of celebrity endorsers found that the characteristic that influenced consumers' intentions to purchase a product endorsed by a celebrity is his or her perceived

A) B) C) D) E)

expertise. attractiveness. trustworthiness. similarity. likability.

45) 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) B) C) D) E)

expertise. trustworthiness. attractiveness. attention. yielding.

46) 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. In this ad, she was acting as a(n) ________ source.

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A) B) C) D) E)

47)

corporate overexposed internal indirect direct

One way a supermarket can make its ads seem more trustworthy is by

A) B) C) D) E)

showing customers talking about the supermarket on hidden cameras. increasing its advertising clutter in its print ads. using cartoon characters in humorous shopping experiences. using loud music or an unsettling color combination. advertising repetitively in short intervals.

48) 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) B) C) D) E)

credibility. attractiveness. power. differentiability. likability.

49) Which of the following statements is true about the use of corporate leaders as advertising spokespersons?

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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 promoting consumer products. E) Corporate spokespersons improve the message source image but have no effect on its trustworthiness.

50)

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.

51) The notion that with the passage of time, a low-credibility source may be just as effective as a high-credibility source is known as the

A) B) C) D) E)

52)

sleeper effect. time/place consequence. open source paradox. decay effect. mirage effect.

According to the sleeper effect phenomenon,

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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.

53)

The source characteristic of attractiveness encompasses

A) B) C) D) E)

power, expertise, and aesthetics. similarity, likability, and familiarity. comfort, individuality, and beauty. beauty, familiarity, and differentiability. expertise, familiarity, and comfort.

54) ________ is defined as an attraction for a source based on a resemblance between the source and receiver of a message.

A) B) C) D) E)

Likability Familiarity Similarity Expertise Power

55) ________ is defined as an affection for a source as a result of the source's physical appearance, behavior, or other physical characteristics.

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261

A) B) C) D) E)

Expertise Power Compliance Familiarity Likability

56) 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) B) C) D) E)

internalization identification compliance repositioning comprehension

57) Which statement correctly expresses 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.

58)

Marketers can try to capitalize on source similarity by hiring

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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.

59) 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) B) C) D) E)

comparative reputational slice-of-life spokesperson-oriented power-based

60) Which of the following source characteristics is used by a slice-of-life commercial that shows an average head of household facing difficulty in filing his federal income tax?

A) B) C) D) E)

61)

power compliance expertise similarity attractiveness

Which of the following statements is true about celebrity endorsements?

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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 in 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.

62) 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) B) C) D) E)

63)

expertise trustworthiness physical attractiveness compliance internalization

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.

64) 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

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A) B) C) D) E)

overexposure. risk to the advertiser. celebrity popularity. overshadowing the product. consumer-celebrity merging.

65) 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.

66) 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.

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67) Which of the following is the best example of a celebrity endorser enhancing consumers' perceptions of a product's performance capabilities?

A) B) C) D) E)

68)

a professional golfer endorsing electronics home appliances a boxer endorsing an automobile repair service an actress endorsing a cell phone service a model endorsing a brand of cosmetics a race car driver endorsing lawn mowers

In the final stage of the meaning transfer model developed by Grant McCracken,

A) B) endorsing. C) D) E)

celebrities draw powerful meanings from the roles they assume in their careers. celebrities bring their meanings and images into ads for the products they are the meanings that celebrities have given to products are transferred to consumers. promotional campaigns are organized in the presence of the media. the meanings created by celebrities are developed into advertisements.

69) An endorser or a performer’s ________ score indicates the percentage of people who have heard of that person.

A) B) C) D) E)

70)

familiarity attractiveness similarity one of my favorites Q rating

Which of the following is true of a Q-score?

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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 an advertisement's emotional impact on the target audience.

71) 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) B) C) D) E)

a source echo. a message shaper. a direct source. a passive model. an active communicator.

72) A marketer would find a physically attractive model to be most effective in an ad for which of the following products?

A) B) C) D) E)

73)

cattle feed bricks fertilizer cookies lipstick

Which of the following statements is true of source power?

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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.

74) When a source is able to administer rewards and punishments to a receiver, the influence occurs through a process known as

A) B) C) D) E)

compliance. identification. internalization. retention. perceived concern.

75) 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 with environmental policies, then as a message source, Darrell is said to have

A) B) C) D) E)

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perceived control. control persuasion. perceived integration. expertise. perceived concern.

268

76) 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) B) C) D) E)

77)

perceived control. control persuasion. perceived scrutiny. expertise. perceived concern.

Which of the following statements 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.

78) ________ is the process by which a source perceived by a receiver as having high power can influence the receiver's behavior.

A) B) C) D) E)

Internalization Identification Compliance Retention Scrutiny

79) A(n) ________ is a communication variable that includes order of presentation, conclusion drawing, and refutation.

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A) B) C) D) E)

channel source message structure receiver emotional appeal

80) Presenting the strongest arguments at the beginning of an advertising message assumes that a ________ is operating.

A) B) C) D) E)

primacy effect recency effect sleeper effect credibility effect compliance hierarchy

81) A magazine advertisement reads, "Is it just forgetfulness or is it 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) B) C) D) E)

primacy effect recency effect sleeper effect credibility effect compliance hierarchy

82) An advertisement that places the strongest points at the end of a message assumes a ________, whereby the last arguments presented are the most persuasive.

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A) B) C) D) E)

recency effect primacy effect sleeper effect credibility effect compliance hierarchy

83) An advertisement for Flora Gardening Supplies begins discussing 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) B) C) D) E)

primacy effect. recency effect. sleeper effect. credibility effect. compliance hierarchy.

84) 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. She is applying the

A) B) C) D) E)

primacy effect. recency effect. sleeper effect. credibility effect. compliance hierarchy.

85) 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 except 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

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A) B) C) D) E)

primacy effect. recency effect. sleeper effect. credibility effect. compliance hierarchy.

86) 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) B) C) D) E)

primacy effect. recency effect. sleeper effect. credibility effect. compliance hierarchy.

87) If the target audience is opposed to a communicator's position, presenting strong points first can

A) B) C) D) E)

increase the extent of disapproval. increase criticism of the message. reduce the level of counterargument. reduce the level of interest in the message. encourage recipients to draw their own conclusions.

88) A marketer should present the strong points at the beginning of an advertising message when

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A) B) C) D) E)

89)

the target audience can connect well with the marketer's position. the target audience is not interested in the topic. the target audience is not biased toward certain brands. the target audience has used the product and has a favorable image of the product. immediate action is an objective.

Marketers should draw definite conclusions in their advertising messages when

A) B) C) D) E)

the audience is highly educated. the product requires emotional involvement. immediate action is an objective. high audience involvement is required. the message is simple and likely to be easily understood by the audience.

90) 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) B) C) D) E)

an example of a rational appeal. designed to let the target audience draw their own conclusions. an example of an appeal based on refutation. designed to express a two-sided message. effective irrespective of the context of the advertising medium.

91) A marketer may want to use a message that draws an explicit conclusion for a target audience that is

A) B) C) D) E)

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highly involved with the topic. highly educated. low in complexity. exposed to the message frequently. less educated.

273

92) 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) B) C) D) E)

93)

an open-ended message a close-ended message a primacy message a refutational appeal a fear appeal

________ are messages that mention only positive product attributes or benefits.

A) B) C) D) E)

One-sided messages Close-ended messages Refutational appeals Conclusive messages Slice-of-life messages

94) 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) B) C) D) E)

one-sided message. two-sided message. confrontational appeal. conclusive message. slice-of-life commercial.

95) When SeaWorld Entertainment ran an integrated campaign to defend itself against criticism by the animal activist group PETA, it was using ________ messages.

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A) B) C) D) E)

sleeper indirect confrontational refutational slice-of-life

96) When a target audience already holds a favorable opinion of a topic, ________ is most effective.

A) B) C) D) E)

a one-sided message a two-sided message a nonverbal appeal an open-ended message a fear appeal

97) 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.

98) 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.

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A) B) C) D) E)

contradictory appeal nonverbal message emotional appeal refutational appeal slice-of-life appeal

99) 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) B) C) D) E)

one-sided functional emotional refutational slice-of-life

100) Wafers Lounge Inc., a manufacturer of packaged foods, specializes in potato-based snacks and features ads that acknowledge the perception that potatoes are fattening. However, they subsequently present information that counters this belief. These ads are an example of

A) B) C) D) E)

101)

conclusion drawing. a fear appeal. a refutational appeal. a humorous appeal. an affective conclusion.

Which of the following statements is true of refutational appeals?

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A) B) C) D) E)

They are not as effective as one-sided messages. They do not feature negative connotations of the products advertised. They tend to "inoculate" the target audience against a competitor's counterclaims. They are used typically when the target audience is less educated. They are a special type of one-sided message.

102) An advertisement for Pete's Peanut Butter centers on the perception that peanut butter has a high fat content. It states 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) B) C) D) E)

confrontational appeal. recency appeal. nonverbal message. refutational appeal. one-sided message.

103) A two-sided message with a refutational appeal is more effective than a one-sided message because it

A) B) C) D) E)

presents only arguments favoring an advertiser's position. puts the strongest arguments in the middle of an advertising message. inoculates the target audience against a competitor's counterclaim. increases the level of counterargument. is easily understood and accepted by the target audience.

104) 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 that failed in its appeal. Which of the following reasons can explain the reduction in persuasiveness of the magazine ad for Mars's pizza?

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A) The magazine ad is part of a huge clutter that 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 that 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.

105) Krypton Inc., a toothbrush manufacturer, prints a magazine ad with a picture of a smiling child with clean, white teeth and a caption that reads, "It has never been so easy for your kids to brush their teeth." Krypton believes that using a picture to accompany the copy-heavy ad will

A) B) C) D) E)

106)

form impressions because of the image. distract from the copy. reinforce the primacy effect. reinforce the recency effect. create a strong refutational appeal.

To increase immediate and delayed recall, advertisers design ads with

A) B) C) D)

a lot of copy explaining the message. a lot of images but no copy. minimal copy with significant imagery. a high amount of imagery in both the advertisement and the copy.

107) Which of the following situations would be most conducive to the use of a comparative advertising message?

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A) A company is a market leader with high market share. B) A company is a market leader and is concerned about a new, smaller company entering the market. C) A market leader wants to promote its brand to customers of smaller companies in the same industry. D) A company with a new brand wants to position that brand against established brands. E) A company wants its audience to know the different companies that it is competing with.

108) ________ 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) B) C) D) E)

Slice-of-life advertising Two-sided advertising Comparative advertising Verbal appealing Refutation advertising

109) 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.

110) A magazine ad for Spotless Fabric Care detergent states that it cleans stains better than either Fauna detergent or Neon Laundry detergent. The Spotless ad is an example of

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A) B) C) D) E)

confrontational advertising. two-sided advertising. comparative advertising. a recency appeal. refutational advertising.

111) “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) B) C) D) E)

confrontational advertising. two-sided advertising. comparative advertising. a recency appeal. refutational advertising.

112) A magazine ad features a picture of a woman walking along a beach on a bright, sunny day with the copy, “Arianne sunscreen lotion provides better UV protection than Gisele sunscreen.” This ad is an example of

A) B) C) D) E)

confrontational advertising. two-sided advertising. comparative advertising. a verbal appeal. refutational advertising.

113) 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 and says that all antacids are the same. The patron then explains that Trice is the only antacid that contains vitamin E. In this scenario, Trice is using

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A) B) C) D) E)

one-sided advertising. two-sided advertising. comparative advertising. verbal appeals. refutation.

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) B) C) D) E)

comparative noncognitive humor fear 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 people who have been in such accidents relating their experiences. This campaign is using a(n) ________ appeal.

A) B) C) D) E)

comparative irrational leveling fear 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 ad is an example of

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A) B) C) D) E)

a fear appeal. an irrational appeal. comparative advertising. a refutational appeal. noncognitive advertising.

117) A potential problem of using advertising with a strong fear appeal to discourage drug abuse among teenagers is that

A) B) C) D) E)

there is no appropriate medium. it works only in combination with a refutational appeal. it may have inhibiting effects and be tuned out by teenagers. a message with high levels of fear creates low self-esteem. 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) B) C) D) E)

119)

protection motivation model nonmonotonic model cognitive response model response-stimuli hierarchy persuasive delimiter model

Which of the following statements is true of humor appeals?

A) B) C) D) E)

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They usually generate more counterarguments among consumers. They enhance effectiveness by putting consumers in a positive mood. The television medium does not lend itself to humor appeals. The print medium is not feasible for humor appeals. They cannot be presented through radio.

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120)

Humorous messages are generally considered effective because they enhance

A) B) C) D) E)

121)

comprehension. attention. support arguments. source derogation. counterargument.

Humorous messages enhance the effectiveness of an advertisement by

A) B) C) D) E)

eliminating fear appeals. reinforcing the recency effect. reinforcing the primacy effect. stimulating immediate purchasing behavior. putting consumers in a positive mood.

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) B) C) D) E)

the repetition paradox. the qualitative effect. wearout. commercial reactance. message decay.

123) Which of the following statements is true of the use of humor in ad campaigns and commercials?

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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 lowinvolvement products.

124)

Critics of humorous commercials argue that funny ads

A) B) C) D) E)

distract consumers from a brand and its attributes. have no shock value. often put people in a gloomy mood. do not draw consumers’ attention to the ads. compel consumers to engage in counterarguments.

125) During the live television broadcast of a basketball game, an ad for Humberto’s Pizza is aired frequently during the commercial breaks. Jason, who is watching the game on TV, expresses annoyance every time he sees the pizza commercial. Humberto’s Pizza’s commercial is likely to be facing

A) B) C) D) E)

a qualitative degradation. a fear appeal. a wearout. a commercial reactance. a refutation.

126) Which of the following statements is true of a channel used in the communication process?

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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.

127) The processing of information in advertisements likely to be externally paced for which of these media?

A) B) C) D) E)

television and radio magazines and billboards magazines and newspapers transit advertising and billboards 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) B) C) D) E)

129)

television billboards magazines transit signs radio

Information from ads presented in broadcast media is

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A) B) C) D) E)

externally paced. self-paced. internally paced. personally paced. intermittently paced.

130) A direct-mail piece advertising a collection of home maintenance books would have its information

A) B) C) D) E)

externally paced. self-paced. virtually paced. controlled by the message recipient. placed in qualitative media.

131) A magazine titled Utopia: A Holiday Digest would have a strong ________ on an ad for destination resorts.

A) B) C) D) E)

externally paced impact favorable quantitative media effect cluttered media effect shaping effect positive qualitative media effect

132) Recently, some cable networks such as TBS and TNT have used compression technology to speed up the transmission of programs and allow more time for commercials, adding to the ________ problem.

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A) B) C) D) E)

impact quantitative clutter shaping 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) B) C) D) E)

134)

self-paced impact. favorable quantitative media effect. cluttered effect. shaping effect. positive qualitative media effect.

Which of the following statements about the qualitative media effect is true?

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.

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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.

137) An advertiser whose message is placed in the middle of five consecutive commercials during a program break faces the problem of

A) B) C) D) E)

clutter. media flooding. media bombardment. flighting. information overload.

138) ________ is an aspect of the media environment and is defined as the amount of advertising in a medium.

A) B) C) D) E)

Qualitative media effect Wearout Clutter Familiarity score Refutation

139) All nonprogram material that appears in a broadcast environment, including commercials, public service announcements, and promotional messages for shows, contributes to

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A) B) C) D) E)

a message comparison phenomenon. comparative advertising. the clutter problem. media reduction. the quantitative media effect.

140) Which of these factors contributes the most to the problem of clutter in television advertising?

A) B) C) D) E)

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the use of celebrities in ads the use of emotional appeals the trend toward shorter commercials the increase in zapping or channel hopping the use of fear appeals

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Answer Key Test name: chapter 6 1) FALSE 2) TRUE 3) FALSE 4) TRUE 5) TRUE 6) FALSE 7) TRUE 8) D 9) B 10) C 11) B 12) B 13) A 14) B 15) A 16) A 17) B 18) B 19) C 20) A 21) D 22) C 23) B 24) B 25) B 26) C Version 1

290

27) C 28) B 29) C 30) E 31) C 32) D 33) C 34) C 35) B 36) A 37) B 38) B 39) C 40) D 41) C 42) C 43) B 44) A 45) A 46) E 47) A 48) A 49) C 50) D 51) A 52) C 53) B 54) C 55) E 56) B Version 1

291

57) D 58) C 59) C 60) D 61) C 62) B 63) B 64) B 65) D 66) B 67) D 68) C 69) A 70) C 71) D 72) E 73) D 74) A 75) A 76) E 77) B 78) C 79) C 80) A 81) A 82) A 83) B 84) A 85) B 86) A Version 1

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87) C 88) B 89) C 90) B 91) E 92) A 93) A 94) B 95) D 96) A 97) C 98) D 99) D 100) C 101) C 102) D 103) C 104) B 105) A 106) C 107) D 108) C 109) B 110) C 111) C 112) C 113) C 114) D 115) D 116) A Version 1

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117) C 118) A 119) B 120) C 121) E 122) C 123) B 124) A 125) C 126) E 127) A 128) C 129) A 130) B 131) E 132) C 133) E 134) A 135) B 136) B 137) A 138) C 139) C 140) C Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) 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.

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⊚ ⊚

true false

2) In the top-down approach, the budgetary amount is established usually at the departmental level. ⊚ ⊚

true false

3) In the arbitrary allocation approach to budgeting, systematic thinking occurs and objectives are budgeted for. ⊚ ⊚

true false

The competitive parity method takes advantage of the collective wisdom of the industry. ⊚ ⊚

true false

5) 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

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 6) Innovation Marketers is working with Sum Company to create a promotional campaign. They are recommending the best way to measure whether a promotional campaign is a success or failure is to create and apply

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A) B) C) D) E)

a marginal analysis. decision making. contribution margin. return on investment. marketing objectives.

7) Innovation Marketers is helping Sum Company realize that choices should be made between different strategic and tactical options based on how well a particular strategy matches the their promotional objectives. Meaningful objectives can be a monitor for

A) B) C) D) E)

a marginal analysis. decision making. contribution margins. return on investment. marketing objectives.

8) Sum Company’s board believes that the basic reason to have an advertising budget is to set one objective—to sell their products. Innovation Marketers is working change this paradigm by creating a series of marketing objectives to show the investment in promotional spending and to better identify the use of Sum Company’s recourses by providing economic justification. This is also known as

A) B) C) D)

marginal analysis. decision making. contribution margin. return on investment.

9) Sum Company is learning from Innovation Marketers the difference between marketing and communication objectives. They are in the process of creating their integrated marketing plan using the guideline that good marketing objectives are realistic, attainable, and

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A) B) C) D) E)

intentional. finite. calculable. anticipated. quantifiable.

10) Innovation Marketers is reviewing Sum Company’s integrated marking communications program. Sum Company has made the shift from looking solely at market share to an IMC based on

A) B) C) D) E)

consumer objectives. communication objectives. marketing objectives. sales objectives. sales-driven objectives.

11) Sum Company is working on their advertising budget. They are taking advice and applying it to their projections, realizing that money spent on advertising does not line up to sales in the same month or even quarter. This lag is called

A) B) C) D) E)

a marginal analysis effect. a consumer effect. a contribution margin effect. a carryover effect. an arbitrary allocation effect.

12) The communications effects pyramid used for advertising and promotion identifies the type of communication tasks and promotion al objectives to be accomplished to draw consumers to the brand. The fourth stage of the pyramid retaining about 25% of the original consumer base is

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A) B) C) D) E)

awareness. liking. preference. knowledge/comprehension. trial.

13) Sum Company has developed a marketing plan with the objective of increasing sales by 5 percent. As the promotional planner, Innovation Marketing is working with Sum Company to create a message that will be communicated to the target audience to achieve this. It is important for measuring return on investment to translate a sales goal into

A) B) C) D) E)

one-to-one marketing. a decision-making model. a communications objective. an arbitrary allocation model. a marketing objective.

14) Wilson was hired by Productivity Advertising as a marketing VP to lead a massmarketing effort. After a few weeks, he introduced the idea of moving away from the consumer funnel to looking at the bottom half of the funnel for creating conversion strategies, offering the target audience the right offers on the right platform at the right time. Essentially, he is suggesting replacing mass marketing with

A) B) C) D) E)

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one-to-one marketing. S-shaped response curve. concave-downward function model. arbitrary allocation marketing. zero-based communications planning.

298

15) Wilson, a marketing VP for Productivity Advertising, has been introducing concepts to help guide the marketing effort. A timeless model for setting advertising objectives and measuring the results of an ad campaign is Defining Advertising Goals for Measured Advertising Results (DAGMAR). The DAGMAR model states an advertising goal involves ________ that is specific and measurable.

A) B) C) D) E)

a communication objective a marketing task an advertising task a communication task a marketing objective

16) Productivity Advertising’s marketing VP Wilson is going over the advertising process, reminding the team that a good advertising objective should be stated in terms of concrete and ________ 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).

A) B) C) D) E)

customer-driven improvised sales-attributed measurable market-based

17) The Sum Company board members have an abstract idea of what the IMC program is supposed to do. Some members oppose the DAGMAR approach, expressing concern that in the past ad campaigns that achieve communications objectives fail to increase sales. What stage of the communication task hierarchy are they focused on?

A) B) C) D) E)

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awareness information gathering action conviction comprehension

299

18) Sum Company’s board has asked to meet with Productivity Advertising’s marketing VP Wilson to help them better understand setting objectives for the IMC program. Wilson is encouraging Sum’s board to move away from their perspective on what they want to say is important about the brand, with the intention to start with the customer and build back to the brand. This approach is known

A) B) C) D) E)

as zero-based communications planning. as top-down approach planning. as inside-out planning. as arbitrary allocation planning. as outside-in planning.

19) To keep Sum Company’s board members perspective as a point of comparison, Productivity Advertising’s marketing VP Wilson has asked for their input to benchmark what they would like in the form of media, what they would like emphasized about the Sum brand, and when the message should be communicated. In doing so, Wilson is demonstrating the steps of

A) B) C) D) E)

zero-based communications planning. top-down approach planning. inside-out planning. arbitrary allocation planning. outside-in planning.

20) Objectives and strategies for the social consumer decision journey are similar to traditional models, with stages that guide the consumer to the end goal of

A) B) C) D) E)

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considering three alternatives. posting photos on social media. writing a review. purchasing their brand. deliberating between brands.

300

21) Blueberry Designs launched their active wear line a year ago. The Instagram kick-off campaign was successful. Realizing they need to monitor their online presence for how they are being perceived in the marketplace, Blueberry Designs has hired a team to keep tabs and respond accordingly. This action is part of their ongoing

A) B) C) D) E)

marginal analysis. concave-downward function model. S-shaped response curve. top-down approach. social consumer decision journey.

22) Blueberry Designs is applying objectives and strategies to monitor, respond, amplify, and lead. Their marketing team knows it takes time to lead consumers to ________ behavioral changes.

A) B) C) D) E)

improved active demonstrating long-term socially conscious

23) Sum Company has reminded Innovation Marketing of the limitations of their budget. Innovation Marketing reviewed the marketing plan to prompt Sum Company to look at the relationship between the communications analysis and the budget determination. This is known as

A) B) C) D) E)

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a marginal analysis. a two-way interaction. a contribution margin. an arbitrary allocation interaction. a one-way interaction.

301

24) Innovation Marketing’s philosophy is when times are good, you want to advertise; when times are tough, you have to advertise. Sum Company believes when times are tough, you should cut the advertising and promotional budget. Sum Company is treating the communications budget as an expense rather than

A) B) C) D) E)

overhead. a disbursement. an investment. an arbitrary allocation. a payment.

25) Innovation Marketers have been in business for over 80 years. They have seen changes in the economy and developed measures to address advertising in periods of recession. In anticipation of an economic downturn, Sum Company should use ________ for budgeting ad expenditures by identifying the difference between total revenue generated by the Sum Company brand and its total variable costs.

A) B) C) D) E)

direct marketing top-down approaches contribution margin arbitrary allocation an S-shaped response curve

26) Blueberry Designs has been establishing their communications budget by taking the gross margin minus advertising expenditures to identify profits. As they plan for the next fiscal cycle, they will monitor each quarter using this formula continuing to spend advertising/promotional dollars as long as the marginal revenues created by these expenditures exceeded the incremental advertising/promotional costs. They are demonstrating

A) B) C) D) E)

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marginal analysis. a concave-downward function model. an S-shaped response curve. a top-down approach. arbitrary allocation.

302

27) Sum Company has decided to go with Productivity Advertising for the next fiscal year. They like their philosophy of microeconomic law of diminishing returns, that consumers less likely to buy are not likely to change as a result of the advertising and that their advertising investment should be where there is the greatest potential for a consumer to buy, which is at first exposure. This approach to fewer advertising dollars to create the optimal influence on sales is called

A) B) C) D) E)

28)

a marginal analysis. a concave-downward function model. an S-shaped response curve. a top-down approach. the social consumer decision journey.

One important purpose of setting specific advertising goals and objectives is to

A) B) C) D) E)

provide a benchmark against which performance can be measured. put constraints on the creative department. have a method of determining when to delete products from the product line. forecast the market share level that can be attained by good advertising. 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

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A) B) C) D) E)

easier it becomes to measure advertising effectiveness. more difficult it is for competitors' advertising to be effective. easier it is to measure the advertising-sales response function. lesser the funding needed to meet advertising goals. more difficult it is for a competitor to use competitive parity budgeting.

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 statements 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 statements is true of marketing objectives?

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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) B) C) D) E)

realistic and attainable. erudite and challenging. philosophical and fungible. unquantifiable. elaborate.

36) Many marketing managers prefer sales-oriented objectives for advertising because they believe that

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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) B) C) D) E)

7 percent 17 percent 25 percent 27 percent 35 percent

38) The concept of advertising expenditures producing long-term rather than immediate results is known as the

A) B) C) D) E)

39)

carryover effect. communication effect. low-involvement effect. halo effect. mirror-image effect.

The carryover effect

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A) B) C) D) E)

has no impact on sales objectives. has no effect on the relationship between advertising and sales. encourages the use of nonspecific objectives. is particularly apparent with mature, low-priced, and frequently purchased products. 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.

41) For which of the following would an advertiser be most likely to use a sales-oriented objective?

A) B) C) D) E)

42)

a direct-response ad for a record album a commercial for a new type of electric-powered automobile a political announcement an antidrug public announcement a commercial comparing two telecommunication giants

Direct-response advertisers generally set objectives and measure success in terms of

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A) B) C) D) E)

43)

Sales-oriented objectives are appropriate for

A) B) C) D) E)

44)

brand awareness. brand attitudes. purchase intentions of the target audience. sales response generated by an ad. brand equity.

all online-marketing strategies. retail advertising promoting special events. products that have been introduced in highly volatile markets. any advertising campaign aimed at maintaining brand awareness. bait-and-switch marketing campaigns.

Which of the following is at the base of the communication effects pyramid?

A) B) C) D) E)

awareness preference trial purchase 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) B) C) D) E)

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awareness comprehension trial liking 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) B) C) D) E)

47)

knowledge preference repurchase awareness comprehension

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) B) C) D) E)

awareness knowledge liking preference repurchase

49) Encouraging current buyers of Spirit, an energy drink, to drink more of the beverage would be an example of a ________ objective.

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A) B) C) D) E)

50)

sales-oriented repositioning product development public relations diversification

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.

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) B) C) D) E)

awareness purchase familiarity consideration 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?

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A) B) C) D) E)

awareness imagery consideration shopping 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) B) C) D) E)

conviction comprehension awareness action 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) B) C) D) E)

conviction screening comprehension action awareness

55) The ________ stage in Russell Colley's hierarchical model of the communication process deals with getting the consumer to purchase the product.

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A) B) C) D) E)

56)

action conviction screening comprehension awareness

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) B) C) D) E)

a model for setting advertising goals. a philosophy of consumer behavior. a method of setting sales objectives. a tool used to measure financial assets. 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.

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A) B) C) D) E)

59)

SOSTAC The hierarchy of effects model The BCG matrix The Ansoff matrix DAGMAR

According to DAGMAR, the basic function of advertising is to

A) B) C) D) E)

create sales. communicate. increase market share. eliminate competition. 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) B) C) D) E)

human resources task financial task communications task marketing task product production task

61) According to the criteria outlined in DAGMAR, which of the following makes the best quantitative communications objective?

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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) B) C) D) E)

elaborative in nature specifies the target audience avoids specifying a time period specifies the current market share 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.

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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) B) C) D) E)

zero-based communications planning outside-in planning inside-out planning spiral planning social consumer planning

66) Determining a target market's present level of awareness and knowledge of, and liking for, a product often requires ________ measures.

A) B) C) D) E)

benchmark sales interval secondary frequency 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

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A) B) C) D) E)

communicate advertising goals. communicate tasks. establish benchmark measures. communicate DAGMAR objectives. establish marketing research goals.

68) For which of the following advertising communication tasks should the specified time period be the longest?

A) B) C) D) E)

69)

creating brand awareness increasing brand awareness levels creating knowledge of a brand attribute increasing knowledge levels of a brand attribute repositioning a brand

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) B) C) D) E)

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the response hierarchy used in the original DAGMAR model. the costs of using DAGMAR. the fact that DAGMAR ignores sales results. setting benchmark measures. creating measurable communications objectives.

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71)

Which of the following is considered a major criticism of the DAGMAR approach?

A) B) objectives C) D) E)

its belief that the only relevant measure of advertising objectives is sales its focus on using sales-based objectives rather than communications-based its inability to define what constitutes a good advertising objective its reliance on the hierarchy of effects model 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) B) measures. C) D) E)

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puts too much emphasis on the quantitative assessment of an advertising campaign. requires that speculative presentations be created and used to set benchmark is only successful if it develops a message that contributes to brand equity. does not provide any type of communications guidelines. is too concerned with qualitative assessments of an advertising campaign.

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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.

75)

According to Professor Don Schultz, outside-in 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) B) C) D) E)

77)

The objective/task pyramid DAGMAR The BCG matrix Zero-based communications planning Refutation planning

According to Duncan's zero-based marketing communications planning approach,

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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) B) C) D) E)

zero-based communications planning inside-out planning outside-in planning the carryover process the recency process

79) In the social consumer decision journey, ________ deals with designing the communications program.

A) B) C) D) E)

benchmarking monitoring amplification leading responding

80) In the social consumer decision journey, which of the following objectives is designed to take the consumer to long-term behavioral changes?

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A) B) C) D) E)

respond amplify monitor lead benchmark

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) B) C) D) E)

monitor respond benchmark lead 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) B) C) D) E)

monitor benchmark lead respond amplify

83) According to the IMC planning model, the flow between communications analysis and budget determination is

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A) B) C) D) E)

a two-way interaction. nonlinear. unidirectional. diagonal. top-down.

84) According to Robert Steiner, which of the following terms is synonymous with contribution margin?

A) B) C) D) E)

85)

asset allocation net worth financial optimization marginal analysis capital margin

In the case of the marginal-analysis approach, profits are shown to be a result of

A) B) C) D) E)

advertising expenditure minus sales. sales minus advertising expenditures. gross margin minus advertising expenditures. gross margin minus sales. net worth minus sales.

86) Which of the following statements describes an inherent weakness in the use of the marginal-analysis model for establishing an advertising budget?

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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) B) C) D) E)

concave-downward function and the S-shaped response function. S-shaped response function and the concave-upward function. marginal utility function and the S-shaped demand function. S-shaped demand function and the contribution margin function. 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) B) C) D) E)

89)

concave-upward S-shaped demand S-shaped response marginal utility concave-downward

According to the concave-downward function

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A) B) C) D) E)

the incremental value of advertising increases. creativity is the primary advertising function. advertising is unlikely to be effective as a short-term solution. as the amount of advertising increases, its incremental value decreases. 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) B) C) D) E)

91)

Procter and Gamble Kraft General Mills Kmart Unilever

The concave-downward function model is based on

A) B) C) D) E)

the microeconomics law of diminishing returns. the economic law of supply and demand. price elasticity of demand quotients. the change in contribution margins as item price is changed. 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) B) C) D) E)

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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) B) products. C) D) E)

95)

the effects of advertising quickly begin to diminish. the carryover effect is especially true for low-priced, frequently purchased consumer sales decrease rapidly if the price is too high. initial outlays of the advertising budget have little impact on sales. sales are not directly related to the size of the advertising budget.

The S-shaped response curve suggests that

A) B) C) D) products. E)

advertising effectiveness will not be related to spending. extremely low advertising budgets will not work. advertising effectiveness will vary inversely with the spending levels. the carryover effect is especially true for low-priced, frequently purchased consumer sales and spending on advertising are not directly related.

96) Which of the following factors creates a positive relationship between advertising and sales?

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A) B) C) D) E)

the market share of the company the corporate structure the basis for product differentiation the extent of selective retention 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) B) C) D) E)

introduction maturity growth reinvestment 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) B) C) D) E)

99)

alteration maturity introduction decline harvesting

Which of the following strategy factors leads to a positive effect of advertising on sales?

A) B) C) D) E)

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hidden product qualities elasticity in demand long channels of distribution emotional buying motives inelastic product demand

325

100) When higher-level executives determine the budget amounts to be allocated for each department's advertising expenditures, a ________ approach is being used.

A) B) C) D) E)

nominal group marginal contribution top-down Delphi focus group

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) B) C) D) E)

arbitrary allocation percentage of sales affordable return on investment competitive parity

102) According to the promotional budgeting approaches, which of the following is an example of a top-down approach?

A) B) C) D) E)

the razor and blades method the bricks and clicks method the competitive parity method the objective and task method 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."

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A) B) C) D) E)

arbitrary allocation percentage of sales contribution margin return on investment 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) B) C) D) E)

105)

Which of the following statements is true of the arbitrary allocation method?

A) B) C) D) E)

106)

arbitrary allocation percentage of sales affordable method payout planning competitive parity

This method is not considered to be particularly weak. This method keeps ad spending within reasonable limits. This method uses a logical basis for determining the budgets. This method of budgeting is generally stable. This method has no obvious advantages.

The most commonly used method of budget determination by large firms is the

A) B) C) D) E)

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competitive parity method. objective and task method. percentage-of-sales method. arbitrary allocation method. affordable method.

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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) B) C) D) E)

arbitrary allocation percentage-of-sales objective and task return on investment competitive parity

108) In the ________ method to budgeting, sales are projected for the coming year based on the marketing manager's estimates.

A) B) C) D) E)

competitive parity objective and task unit cost production straight-percentage 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) B) C) D) E)

110)

competitive parity marginal analysis percentage of sales objective and task arbitrary

Which of the following is true of the percentage-of-sales method?

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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.

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) B) C) D) E)

competitive parity and percentage-of-sales methods competitive parity and payout planning methods payout planning and percentage-of-sales methods percentage-of-sales and objective and task methods 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.

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A) B) C) D) E)

114)

ROI affordable percentage-of-sales competitive parity objective and task

When using the competitive parity method of 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) B) C) D) E)

ROI method arbitrary allocation method percentage-of-sales method competitive parity method objective and task method

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.

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A) B) C) D) E)

117)

arbitrary allocation percentage-of-sales objective and task return on investment competitive parity

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) B) C) D) E)

return on investment affordable competitive parity objective and task payout planning

119) In the ________ method of budget determination, advertising is considered an investment, similar to plant and equipment.

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A) B) C) D) E)

120)

payout planning objective and task ROI budgeting competitive parity percentage-of-sales

Top-down budgeting methods are commonly used because of

A) B) C) D) E)

their effectiveness. the upper management's desire for control. the growing availability of computer simulations. the ease with which a manager can assess the impact of sales on ROI. their quantitative nature.

121) Which of the following allocation methods makes use of a buildup approach to setting budgets?

A) B) C) D) E)

percentage-of-sales arbitrary allocation competitive parity objective and task 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) B) C) D) E)

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competitive parity payout planning return on capital return on investment objective and task

332

123)

The first task in the objective and task method of budgeting is to

A) B) C) D) E)

conduct a system analysis. create an organizational budget. isolate advertising objectives. determine what tasks need to be accomplished. 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) lifecycle. B) C) D) E)

the product to be promoted is intangible and in the maturity stage of its product the product to be promoted is in the decline stage of its product lifecycle. the product to be promoted is a cash cow. the product to be promoted is new to the market. the product is typically tied to after-sales service.

126) A(n) ________ is a method for allocating budgets that is designed to determine the investment value of the advertising appropriation.

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A) B) C) D) E)

payout plan instant rebate profit chart beat-sheet incentive program

127) As a tool for budget allocation, multiple regression analysis is most often employed in budget models using

A) B) C) D) E)

128)

Which of the following is a quantitative model used to budget advertising expenditures?

A) B) C) D) E)

129)

computer simulations. competitive parity. arbitrary allocations. percentage of sales. downward curves.

ROI budgeting model competitive parity model computer simulation model arbitrary allocation model percentage-of-sales model

As a result of economies of scale, smaller advertisers

A) B) C) D)

are likely to enjoy more favorable advertising time and space than large advertisers. have declining average costs of production. get higher advertising rates than large advertisers. can maintain advertising expenditure shares that are smaller than their market

shares. E) can accrue the advantages of advertising several products jointly.

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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) B) C) D) E)

131)

economies of scale differential advertising advantages competitive parity a concave-downward response multiple advertising channels

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) B) C) D) E)

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bottom-up budgeting top-down budgeting the affordable method of budgeting the arbitrary allocation method of budgeting the percentage-of-sales method of budgeting

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Answer Key Test name: chapter 7 1) TRUE 2) FALSE 3) FALSE 4) TRUE 5) FALSE 6) E 7) B 8) D 9) E 10) B 11) D 12) C 13) C 14) A 15) D 16) D 17) C 18) E 19) C 20) D 21) E 22) D 23) B 24) C 25) C 26) A Version 1

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27) B 28) A 29) C 30) A 31) B 32) A 33) B 34) C 35) A 36) A 37) B 38) A 39) D 40) A 41) A 42) D 43) B 44) A 45) C 46) B 47) B 48) E 49) A 50) A 51) B 52) A 53) B 54) E 55) A 56) D Version 1

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57) A 58) E 59) B 60) C 61) C 62) A 63) B 64) B 65) A 66) A 67) C 68) E 69) B 70) A 71) D 72) D 73) A 74) A 75) C 76) D 77) C 78) C 79) C 80) D 81) B 82) A 83) A 84) D 85) C 86) E Version 1

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87) A 88) E 89) D 90) A 91) A 92) B 93) A 94) A 95) B 96) C 97) B 98) C 99) C 100) C 101) C 102) C 103) A 104) A 105) E 106) C 107) B 108) D 109) C 110) C 111) A 112) A 113) D 114) A 115) D 116) E Version 1

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117) B 118) C 119) C 120) B 121) D 122) E 123) C 124) A 125) D 126) A 127) A 128) C 129) C 130) A 131) A 132) B Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 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) 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

Many creative people follow proven formulas when creating ads because they are safe.

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⊚ ⊚

true false

4) Creativity is not the exclusive domain of those who work in the creative department of ad agencies. ⊚ ⊚

true false

Advertisement campaign plans are long term in nature. ⊚ ⊚

true false

6) The challenge of developing creative advertising that captures the attention of consumers has become greater with the spread of new media. ⊚ ⊚

true false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 7) ________ refers to the extent to which the various elements of an ad are meaningful, useful, or valuable to the consumer.

A) B) C) D)

Divergence Relevance Originality Elaboration

8) According to the findings from Reinartz and Saffert’s research, ________ has a significant impact on sales.

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A) B) C) D)

strategy creativity planning execution

9) According to Young's model of the creative process, which stage involves the process of gathering material and information through research?

A) B) C) D) E)

immersion digestion incubation illumination verification

10) According to Young's model of the creative process, which stage is defined as studying the idea to see if it still looks good then shaping the idea to practical usefulness?

A) B) C) D) E)

11)

Providing creative people with general and product-specific information is called

A) B) C) D)

12)

immersion digestion incubation illumination verification

market research. qualitative research. general preplanning input. due diligence.

A focus group is used in what type of research?

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A) B) C) D)

13)

A primary reason for creative people to leverage research is that it gives them

A) B) C) D)

14)

more time to develop creative. a better sense of the target market. the opportunity to charge more. a better sense of the competition.

Which stage of the creative process evaluates ideas?

A) B) C) D) E)

15)

quantitative detailed qualitative analytical

immersion digestion incubation illumination verification

Which stage of the creative process includes putting problems out of the conscious mind?

A) B) C) D) E)

immersion digestion incubation illumination verification

16) What is the name for a document that outlines the key points of a campaign and establishes the communication protocols between the agency and the client?

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A) B) C) D)

17)

project brief advertising brief creative brief summary brief

A product manager’s primary goal for an ad is to

A) B) C) D)

increase sales. increase awareness. win an award. disrupt.

18) What is the term for a short line that expresses the positioning and the message it is trying to deliver?

A) B) C) D)

19)

brand slogan tag line mark

What term refers to something that the competition either cannot or does not offer?

A) B) C) D)

unique brand unique selling proposition unique messaging unique creative

20) A firm with multiple brands competing in the same market differentiates its products through

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A) B) C) D)

21)

branding. messaging. slogans. positioning.

With respect to advertising messages, which statement best defines creative strategy?

A) B) C) campaign. D) E)

It involves determining what the advertising message will say or communicate. It involves determining how much the advertising campaign will cost. It involves determining the number of creative personnel required for the advertising It deals with optimizing the budget for online advertising campaigns. It deals with avoiding factors that lead to divergence in advertising creativity.

22) Which of the following statements is true of creative tactics in relation to advertising messages?

A) B) C) D) creativity. E)

They deal with avoiding the creation of animatics for testing a commercial. They involve determining how much the advertising campaign will cost. They involve determining how the message strategy will be executed. They deal with avoiding the factors which lead to divergence in advertising They involve determining what the advertising message will say or communicate.

23) With respect to sales uplift relative to average effectiveness, which of the following creativity combinations is the least effective?

A) B) C) D) E)

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flexibility and artistic value flexibility and synthesis originality and synthesis elaboration and artistic value originality and elaboration

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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.

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) B) C) D) E)

27)

animatics. heuristics. creative. art infusions. mnemonics.

The people who develop ads and commercials are known as

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A) B) C) D) E)

mnemonics. animatics. copy makers. creative types. 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.

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?

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A) B) C) D) E)

brand managers art directors copywriters commercial directors 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) B) C) D) E)

33)

Brand stretching Brand parity Visual merchandising Product differentiation Advertising creativity

Which of the following best defines fluency?

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A) B) C) D) E)

the ability to detect problems associated with the creative strategies the extent to which an ad contains elements that are novel and different the ability to generate a large number of ideas around a creative idea the degree to which various elements of the ad are valuable to the customer 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) B) C) D) E)

Leo Burnett Robert Smith Rosser Reeves David Ogilvy Sigmund Freud

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) B) C) D) E)

elaboration synthesis flexibility relevance 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?

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A) B) C) D) E)

originality flexibility elaboration artistic value 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) B) C) D) E)

synthesis. illumination. originality. artistic value. 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) B) C) D) E)

39)

divergence delusion relevance illumination risk aversion

According to Robert Smith, the two ways in which relevance can be achieved are

A) B) C) D) E)

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ad-to-brand relevance and brand-to-ad relevance. ad-to-producer relevance and brand-to producer relevance. ad-to-producer relevance and brand-to-consumer relevance. ad-to-consumer relevance and brand-to-producer relevance. 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) B) C) D) E)

ad-to-consumer relevance. brand-to-consumer relevance. brand-to-producer relevance. inherent drama strategy. 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) B) C) D) E)

42)

artistic value divergence fluency synthesis originality

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.

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43) Reinartz and Saffert found which of the following five variables to have the greatest positive impact on sales?

A) B) C) D) E)

originality flexibility elaboration synthesis artistic value

44) Reinartz and Saffert, among other researchers, found that what factor has the greatest positive impact on sales?

A) B) C) D)

45)

The job of the creative team is challenging because

A) B) C) D) E)

46)

relevance synthesis creativity flexibility

advertisers and clients typically opt for mundane ad formulas. every marketing situation is unique. of the primacy effect in advertising. of the recency effect in broadcast advertising. advertising campaigns are generally considered expendable.

The rationalists of creative advertising argue that

A) B) C) D) E)

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all award-winning creative campaigns definitely lead to sales. the only purpose of advertising is to make an emotional connection with customers. advertising must sell the product or service. all commercials must contain an element of inherent drama. advertising should break through the clutter by focusing on logos and products.

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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) B) C) D) E)

49)

The rationalists of creative advertisements are also called "________"

A) B) C) D) E)

50)

suits. heuristics. poets. mnemonics. illustrators.

operators. suits. mnemonics. heuristics. poets.

Advertising creative personnel tend to be

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A) B) C) D) E)

51)

According to James Webb Young, the production of creative advertising ideas

A) B) C) D) E)

52)

more concrete and formalized than intuitive when solving a problem. highly conventional in their approach. more intuitive than logical. highly structured and organized individuals. no different from people with business executive backgrounds.

is a random process that cannot be taught. must avoid bolting a brand to a consumer's clinching benefit. must be primarily consumer generated. is a definitive process that can be learned and controlled. has as many different routes as there are different forms of creativity.

The five steps in the creative process as designed by James Webb Young include

A) B) C) D) E)

preparation, brainstorming, growth, reality check, and verification. immersion, testing, illumination, creation, and verification. immersion, digestion, incubation, illumination, and verification. preparation, incubation, immersion, illumination, and reality check. 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) B) C) D) E)

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preparation, incubation, illumination, and verification. immersion, brainstorming, creation, and reality check. preparation, illumination, creation, and verification. preparation, immersion, creation, and verification. immersion, incubation, illumination, and creation.

354

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) B) C) D) E)

incubation illumination verification preparation 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) B) C) D) E)

dramatization verification preparation incubation illumination

56) According to the creative process outlined by Graham Wallas, which of the following stages deals with seeing the light or solution?

A) B) C) D) E)

verification incubation dramatization preparation illumination

57) Models of the creative process do not say much about how this information will be synthesized and used by creatives because

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A) B) C) D) E)

this part of the process is unique to the individual. the processes described are more applicable to organizations. financial considerations are considered more important than the creative process. the models disagree over the final part of the process. 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) B) C) D) E)

59)

reality incubation digestion verification immersion

The ________ stage of Young's creative process model is also called the reality stage.

A) B) C) D) E)

incubation illumination verification digestion 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) B) C) D) E)

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dramatization illumination verification incubation preparation

356

61) Which of the following is the first step of James Webb Young's model of the creative process?

A) B) C) D) E)

62)

illumination digestion incubation immersion reality

According to Young's version of the stages in the creative process, what is the final step?

A) B) C) D) E)

incubation dramatization illumination reality 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) B) C) D) E)

problem detection illumination immersion reality 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.

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A) B) C) D) E)

65)

One reason why marketers do not pre-test messaging for digital ads is

A) B) C) D)

66)

problem detection illumination immersion reality incubation

the low cost of digital ads. the low return on investment of digital ads. rapid turnaround for digital ads. data-driven ads don’t require pre-testing.

An idea develops during the ________ step of Young's creative process model.

A) B) C) D) E)

reality illumination verification originality 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) B) C) D) E)

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immersion incubation digestion preparation verification

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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) B) C) D) E)

preparation verification revision illumination 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) B) C) D) E)

preparation incubation illumination verification 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.

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A) B) C) D) E)

preparation revision incubation illumination verification

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

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

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A) B) C) D) E)

resolution. illumination. verification. market evaluation. 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) B) C) D) E)

Media planning Copywriting Account planning Storyboarding 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) B) C) D) E)

76)

general preplanning input. copywriting. account planning. storyboarding. production scheduling.

Account planning plays an important role during creative strategy development by

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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) B) C) D) E)

general preplanning input. focus group studies. problem detection studies. illumination studies. 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

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A) B) C) D) E)

general preplanning input. focus group studies. verification research. brainstorming. problem detection research.

80) Which of the following best assists an organization in the preparation, incubation, and illumination stages of the creative process?

A) B) C) D) E)

81)

portfolio test message communication study product-specific preplanning input viewer reaction profile bait-and-switch technique

Lifestyle research, attitude studies, and perceptual mapping are examples of

A) B) C) D) E)

general preplanning inputs. product/service-specific preplanning inputs. verification studies. revision studies. 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

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A) B) C) D) E)

product-specific preplanning inputs. switch marketing inputs. secondary internal data. secondary external data. 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) B) C) D) E)

Bait-and-switch modeling Market positioning Perceptual mapping Problem detection 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) B) C) D) E)

85)

incomplete comparison general preplanning input perceptual mapping problem detection market profiling

Psychographic studies are used by advertising agencies to

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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.

86) Leslie, creative director for Visionary Ad Agency, is observing a focus group for fourwheel-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) B) C) D) E)

general preplanning input. vendor lock-in data. product-specific preplanning input. channel stuffing reports. secondary internal data.

87) ________ is a research method in which approximately 10 to 12 consumers from the target market are led through a discussion regarding a particular topic.

A) B) C) D) E)

88)

Regression analysis Focus group Guided search Market mapping Out-group study

Which of the following statements about focus groups is true?

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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) B) C) D) E)

quantitative research techniques. qualitative research techniques. problem detection studies. conjectural research. secondary internal research.

90) Which statement correctly states a similarity between focus group studies and ethnographic research?

A) B) C) D) E)

Both are qualitative research techniques. Both are research techniques conducted without the consumer's knowledge. Both involve observing consumers in their natural environment. Both are very easy to administer. Both techniques cost a negligible amount of money.

91) ________ research involves anthropologists or other types of trained researchers observing consumers in their natural environments.

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A) B) C) D) E)

Neuromarketing Out-group Questionnaire Focus group Ethnographic

92) Daniel and Ronald were social researchers who monitored websites and chat rooms and hung out in cyber cafés to observe 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) B) C) D) E)

e-marketing ethnographic neuromarketing focus group 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) B) C) D) E)

94)

problem detection. ethnographic. focus groups. storyboarding. crowdsourcing.

Which of the following correctly states a limitation of focus group studies?

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A) B) C) D) E)

95)

In these studies, strong personalities can often wield undue influence. These studies cost more than ethnographic research. These studies are more difficult to administer than ethnographic research. These studies do not offer the benefits of qualitative research. In these studies, consumers are observed in their natural environment.

Which of the following correctly states 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.

96) Which of the following correctly 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.

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A) B) C) D) E)

preparation dramatization illumination incubation digestion

98) Techniques such as message communication studies and portfolio tests are studies conducted during the ________ stage of the creative process.

A) B) C) D) E)

illumination incubation preparation digestion verification

99) At what stage of the creative process are various ideas evaluated and refined before actually being used?

A) B) C) D) E)

preparation incubation illumination verification verdict

100) At what stage of the creative process would consumers in the target audience be asked to evaluate storyboards and animatics?

A) B) C) D) E)

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preparation incubation verification illumination verdict

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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) B) C) D) E)

animatic mnemonic storyboard heuristic 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) B) C) D) E)

incubation dramatization verification preparation 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) B) C) D) E)

animatic heuristic mnemonic copy platform 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?

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A) B) C) D) E)

105)

storyboard animatic snipe mnemonic heuristic

Advertising campaign themes

A) B) C) D) E)

create a foundation for the incubation process of creative ad development. set the direction for all of the individual ads that make up the campaign. are typically designed by the client and implemented by the agency. are usually used for ads that run in only one type of media vehicle. are usually developed with the intention of being used for a short period of time.

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) B) C) D) E)

incubation illumination preparation verification digestion

107) Which of the four pillars in Y&R Group's BrandAsset Valuator is associated with Brand Strength?

A) B) C) D) E)

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esteem knowledge relevance verification digestion

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108)

Work plan is another name given to the

A) B) C) D) E)

campaign theme. creative brief. advertising message. creative channel. account planning process.

109) In an advertising agency, who among the following is usually responsible for preparing the creative brief?

A) B) C) D) E)

110)

Which of the following client representatives ultimately approves the creative brief?

A) B) C) D) E)

111)

account manager media buying director art director illustrator media planner

art director financial manager auditor brand manager media planner

Which of the following is one of the critical components of the creative brief?

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A) B) C) D) E)

formulation of the training program for the creative team calculation of the advertising budget management of the media buying operations development of the major selling idea 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) B) C) D) E)

problem or issue advertising and communications objectives target audience major selling idea or key benefits 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) B) C) D) E)

ad paradox epiphany heuristic big idea 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"

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A) B) C) D) E)

are impossible to develop as they are not applicable to retail chains. are only needed in advertising for consumer services. are typically not the bases for effective advertising campaigns. are only effective in business-to-business advertising. 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) B) C) D) E)

unique selling proposition. surrogate advertising strategy. unique selling language. intent scale translation. incomplete comparison.

116) Which of the following statements 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?

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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) B) C) D) E)

bait-and-switch advertising. image advertising. buzz marketing. trojan horse advertising. 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) B) C) D) E)

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guerilla advertising. image advertising. drama advertising. bait-and-switch advertising. refutational appeal.

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120) Who among the following popularized the idea of brand image in his book Confessions of an Advertising Man?

A) B) C) D) E)

John O' Toole Leo Burnett Sigmund Freud David Ogilvy Rosser Reeves

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) B) C) D) E)

bait-and-switch advertising image advertising guerilla advertising visual merchandizing 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) B) C) D) E)

image advertising inherent drama refutational appeal snob appeal 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.

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A) B) C) D) E)

card stacking buzz inherent drama testimonial 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) B) C) D) E)

bait-and-switch advertising. a snob appeal. the inherent drama approach. the WOM approach. a buzz appeal.

125) Jack Trout and Al Ries introduced ________ as the basis for advertising strategy and creative development in the early 1970s.

A) B) C) D) E)

inherent drama positioning neuromarketing buzz marketing creative brief

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.

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A) B) C) D) E)

brandjacking gladvertising channel stuffing pricing positioning

127) According to Advertising Age, experts in creative advertising don't write books or espouse theories. They see advertising as

A) B) C) D) E)

an inherent drama working to offset the reality of social issues. an uplifting social force, as a way to inspire and entertain. the replacement for the 20th-century salesperson. publicity created through unique selling propositions. 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) B) C) D) E)

offsets the weaknesses associated with storyboard ad design. provides opportunities for effective government oversight. centralizes American consumer values in a global marketplace. engages consumers and enters into a dialogue with them. minimizes the risk of offending technology-savvy consumers.

129) Which of the following is not one of the four best-known approaches for developing a major selling idea?

A) B) C) D) E)

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using a unique selling proposition creating a brand image finding the inherent drama engaging in a dialogue positioning

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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) B) C) D) E)

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positioning inherent drama image sustainable competitive advantage unique selling proposition

379

Answer Key Test name: chapter 8 1) TRUE 2) FALSE 3) TRUE 4) TRUE 5) FALSE 6) TRUE 7) B 8) B 9) B 10) E 11) C 12) C 13) B 14) E 15) C 16) C 17) A 18) B 19) B 20) D 21) A 22) C 23) A 24) D 25) C 26) C Version 1

380

27) D 28) E 29) B 30) A 31) B 32) E 33) C 34) B 35) C 36) C 37) D 38) C 39) E 40) A 41) C 42) D 43) C 44) C 45) B 46) C 47) D 48) C 49) B 50) C 51) D 52) C 53) A 54) A 55) C 56) E Version 1

381

57) A 58) C 59) C 60) C 61) D 62) D 63) C 64) E 65) C 66) B 67) E 68) A 69) A 70) C 71) D 72) B 73) C 74) C 75) A 76) B 77) B 78) A 79) A 80) C 81) B 82) A 83) D 84) D 85) B 86) C Version 1

382

87) B 88) A 89) B 90) A 91) E 92) B 93) A 94) A 95) D 96) B 97) C 98) E 99) D 100) C 101) C 102) C 103) A 104) B 105) B 106) D 107) C 108) B 109) A 110) D 111) D 112) B 113) D 114) E 115) A 116) D Version 1

383

117) B 118) B 119) B 120) D 121) B 122) B 123) C 124) C 125) B 126) E 127) B 128) D 129) D 130) A Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) 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

2) The evaluation process of creative outputs is usually subjective; the advertising or brand manager relies on qualitative considerations for evaluation. ⊚ ⊚

true false

3) 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.

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⊚ ⊚

true false

4) The ultimate responsibility for determining whether an ad deceives or offends the target audience lies with the client. ⊚ ⊚

true false

5) 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

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 6) Big Ticket Sales is working with Success Advertising to create the message that the Big Ticket Brand meets consumer needs better than their competition does, then listing the reasons why and providing facts and education about their brand. Big Ticket Brand is asking the ad to be

A) B) C) D) E)

a price appeal. an advertising appeal. an information/rational appeal. an emotional appeal. a product/service popularity appeal.

7) Buy It All recently created an advertising campaign with Productivity Advertising carrying the theme of weekly special offers. This type of ad is known as

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385

A) B) C) D) E)

a price appeal. an advertising appeal. an information/rational appeal. an emotional appeal. a product/service popularity appeal.

8) When Blueberry Designs launched their online delivery portal, they emphasized their expansion from designer wear into sportswear and active wear. They included in their message the number of consumers who have switched to Blueberry Designs Brand because it stands for quality. Blueberry Designs is demonstrating

A) B) C) D) E)

price appeal. advertising appeal. information/rational appeal. emotional appeal. product/service popularity appeal.

9) WriteOn Stationery recently released an ad featuring a teenage girl using WriteOn stationery to handwrite a note to her grandmother. Then the grandmother shows everyone the special note she received, putting smiles on everyone’s face. The next time the granddaughter visits, she is praised for making time to write. The type of ad WriteOn Stationery is using is called

A) B) C) D) E)

reminder advertising. a straight-sell message. a slice-of-life. a transformational ad. teaser advertising.

10) Before Blueberry Designs launched their active wear line, they created a series of ads showing people wearing their designer dresses, suits, and heals at the gym, in the wilderness, and on a sailboat with the phrase, “Soon you can Blueberry, too.” Blueberry Designs was using

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A) B) C) D) E)

reminder advertising. a straight-sell message. a slice-of-life ad. a transformational ad. teaser advertising.

11) Teeth-whitening product ads focus on the benefits of removing stains and the health benefits of using their product. This type of ad is called

A) B) C) D) E)

dramatization. a straight-sell message. a slice-of-life ad. a transformational ad. teaser advertising.

12) Although he may not use it personally, an actor famous for his role as a detective is featured as the spokesperson in a home security system ad. He is taking on the role of

A) B) C) D) E)

dramatizer. testimonial. slice-of-life. endorser. image executer.

13) Some television ads for medical treatments that offer a problem-solution approach are often not able to use actual patients. Marketers creating these ads seek professional actors to play a role to achieve a high-quality commercial. This is known as

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A) B) C) D) E)

demonstration. testimonial. slice-of-life. endorser. image execution.

14) Blueberry Designs knows their consumers associate feelings of quality with their patented Blueberry blue. That is why every ad must contain this featured color and tonality. This practice is known as

A) B) C) D) E)

dramatization. testimonial. slice-of-life. endorsement. image execution.

15) A commercial with exposition, conflict, rising suspense, climax, and resolution with product identification is also known as a

A) B) C) D) E)

dramatization. testimonial. slice-of-life. telenovela. performance.

16) The Printable Principle Ad Agency advocates the importance of being straightforward and informative in terms of the message they are presenting and the audience they are targeting. When creating an ad, they use ________ to announce the reason a reader should be interested in the product or service.

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A) B) C) D) E)

an indirect headline a direct headline musical composition the body copy the layout

17) The Printable Principle Ad Agency is working with Mango Services to create the heart of their message, which will comprise the

A) B) C) D) E)

indirect headline. direct headline. musical composition. body copy. layout.

18) Mango Services wants to know how much copy will be written for next Sunday’s ad. The Printable Principle Ad Agency has responded that once the ________ is complete, they will know how much space they have to work with and how much copy will be written.

A) B) C) D) E)

indirect headline direct headline musical composition body copy layout

19) In both radio and TV commercials, music brings a relatable emotion or memorable phrasing. The musical composition includes the music notes and the words, while the more expensive ________ includes the voice(s) of the original artist.

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A) B) C) D) E)

theme song jingle i-tunes master recording master composition

20) The Printable Principle Ad Agency writer guidelines state that it is critical to create a good headline to draw consumers in to keep reading the body of the ad with information about the product or service. Statistically, ________ of advertising readers go beyond the headline to read the body copy.

A) B) C) D) E)

90 percent 10 percent 80 percent 20 percent 50 percent

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. Here, the brand is trying to come up with a(n) ________

A) B) C) D) E)

advertising appeal. primacy appeal. brand identity. brand parity. 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.

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A) B) C) D) E)

brand dilution brand parity business plan advertising appeal advertising character

23) A(n) ________ is something that moves people, speaks to their wants or needs, and excites their interest.

A) B) C) D) E)

recency sequence advertising stock advertising appeal creative sequence creative review

24) A(n) ________ refers to the manner in which an advertising idea is turned into a message and presented to consumers.

A) B) C) D) E)

advertising appeal creative execution style rational appeal emotional appeal 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

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391

A) B) C) D) E)

a primacy appeal. a recency appeal. an emotional appeal. a rational appeal. a 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) B) C) D) E)

feature recency favorable price popularity fear

27) An ad for TaylorMade M1 and M2 drivers notes that more professional golfers play these drivers on tour than any other brand. TaylorMade is using a ________ appeal.

A) B) C) D) E)

feature recency favorable price popularity fear

28) Advertising appeals that focus on functional or utilitarian needs and emphasize product features and benefits are known as ________ appeals.

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392

A) B) C) D) E)

informational emotional fear creative noncognitive

29) Purchase motives such as convenience, comfort, economy, and performance are used as a basis for generating ________ appeals through advertising.

A) B) C) D) E)

creative emotional imaginary rational traditional

30) The content in an advertisement that emphasizes facts, learning, and the logic of persuasion makes use of a(n) ________ appeal.

A) B) C) D) E)

31)

emotional informational transformational subliminal irrational

Which of the following statements is true of informational advertising appeals?

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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) B) C) D) E)

news favorable price feature popularity emotional

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) B) C) D) E)

34)

recognition self-esteem security nostalgia excitement

Which of the following statements is true of feature appeals?

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A) B) C) D) E)

They present attributes that can be the basis of rational purchase decisions. They are used mainly for low-involvement products. They can be used for advertising a product but not a service. They are used primarily for nontechnical products. 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) B) C) D) E)

feature product popularity favorable price competitive advantage 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) B) C) D) E)

favorable price emotional news product popularity 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.

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A) B) C) D) E)

emotional competitive advantage news favorable price product popularity

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) B) C) D) E)

emotional competitive advantage product popularity favorable price news

39) The ad for F.N. Inc., an investment bank, states that the company is "Ranked #1 by Trading World magazine." In this scenario, the ad is using a(n) ________ appeal.

A) B) C) D) E)

emotional competitive advantage product feature favorable price product popularity

40) Advertisements that focus on the dominant attributes or characteristics of a product or service are making use of ________ appeals.

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A) B) C) D) E)

feature news price product popularity 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) B) C) D) E)

feature popularity competitive advantage favorable price 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) B) C) D) E)

feature favorable price news product popularity emotional

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.

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A) B) C) D) E)

feature favorable price news product popularity 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) B) C) D) E)

emotional news product popularity product feature 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) B) C) D) E)

emotional news product popularity product feature favorable price

46) Advertising appeals that relate to consumers' social and/or psychological needs for purchasing a product or service are known as ________ appeals.

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A) B) C) D) E)

47)

informational rational product popularity emotional product feature

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.

48)

Advertisers create emotional advertising appeals by using

A) B) C) D) E)

comparative advertisements. product feature appeals. transformational advertising. news appeals. 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

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A) B) C) D) E)

informational appeals. rational appeals. mood transfers. emotional integrations. outcome integrations.

50) Which of the following is a vital component of ads that use emotional integration to market a product?

A) B) C) D) E)

fear news popularity humor 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) B) C) D) E)

rational transformational consumer-generated reminder informational

52) ________ advertising attempts to make the experience of using a product or service richer, warmer, or more exciting.

A) B) C) D) E)

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Informational Teaser Transformational Reminder Rational

400

53)

Transformational advertising can differentiate a product or a service by

A) B) C) D) E)

convincing a consumer of its leadership position in the market. making the consumption experience more meaningful and enjoyable. helping the consumption experience last longer. showing performance superiority of one brand over another. 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) B) C) D) E)

55)

rational transformational consumer-generated teaser informational

Which of the following is true of image advertisements?

A) B) C) D) E)

They are transformational in nature. They are designed to transfer the image of a company to its brand. They are typically utilized in radio advertisements. They are not suitable for print media. 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.

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A) B) C) D) E)

57)

Rational advertising Image advertising Reminder advertising Teaser advertising Consumer-generated advertising

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.

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) B) C) D) E)

product benefit rational transformational reminder 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.

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A) B) C) D) E)

teaser reminder rational transformational 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-ofmind awareness among consumers. In this scenario, the chocolate manufacturer is using ________ advertising.

A) B) C) D) E)

transformational reminder rational consumer-generated 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) B) C) D) E)

62)

transformational reminder rational consumer-generated teaser

Which of the following is true of reminder advertising?

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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) B) C) D) E)

Reminder Teaser Rational Consumer-generated 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) B) C) D) E)

transformational reminder rational consumer-generated 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

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A) B) C) D) E)

transformational advertising. reminder advertising. rational advertising. user-generated content. 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) B) C) D) E)

67)

reminder transformational teaser emotional consumer-generated

Which of the following statements is true of teaser advertisements?

A) B) C) D) E)

They depend on emotional bonding to generate publicity. They do not work well when used for a short period of time. Marketers should avoid rational appeals while creating them. They focus on the transformational appeal of a product. 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) B) C) D) E)

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advertising appeal is more important than the way it is executed. advertising execution is more important than the appeal. advertising appeals and executions are equally important. advertising execution is more important than message content. a product is more important than its creative appeal.

405

69) An advertising execution technique that relies on a straightforward presentation of information about a product or service is called a(n)

A) B) C) D) E)

70)

factual message. demonstration. testimonial. dramatization. animation of key benefits approach.

Straight-sell message executions are commonly used with ________ advertising appeals.

A) B) C) D) E)

informational emotional transformational teaser 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) B) C) D) E)

straight-sell transformational testimonial teaser comparative

72) 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. This is an example of a(n) ________ headline.

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A) B) C) D) E)

direct transformational testimonial teaser 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) B) C) D) E)

straight-sell transformational testimonial teaser 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) B) C) D) E)

dramatization slice-of-life scientific evidence testimonial 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.

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A) B) C) D) E)

dramatization slice-of-life technical evidence testimonial 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) B) C) D) E)

dramatization testimonial scientific evidence slice-of-life comparison

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) B) C) D) E)

comparison demonstration scientific evidence straight sell 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?

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A) B) C) D) E)

comparison demonstration scientific evidence straight sell testimonial

79) Subway Restaurant's catchy "Five-dollar foot-long" song, or ________, has been an integral part of one of the most effective promotional campaigns ever developed in the fast-food industry.

A) B) C) D) E)

jingle script storyboard layout 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) B) C) D) E)

dramatization slice-of-life animation demonstration testimonial

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?

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A) B) C) D) E)

slice of life testimonial demonstration scientific evidence 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) B) C) D) E)

comparisons slice of life humor testimonial 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) B) C) D) E)

comparisons slice of life humor testimonial news

84) A professional race car driver appears in an ad advocating a particular motor oil brand. This is an example of a(n)

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A) B) C) D) E)

comparison. endorsement. demonstration. straight sell. slice of life.

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) B) C) D) E)

endorsement slice-of-life emotional dramatization 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) B) C) D) E)

dramatization slice of life humorous testimonial 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?

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A) B) C) D) E)

88)

endorsement slice of life reminder testimonial demonstration

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.

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) B) C) D) E)

a problem-solution execution. slice-of-death advertising. slice-of-life advertising. a response-stimuli execution. 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?

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A) B) C) D) E)

problem-solution execution slice-of-death advertising slice-of-life advertising reminder execution informational advertising

91) An advertising execution technique that is particularly popular for creating commercials targeted at children is

A) B) C) D) E)

92)

slice of life. demonstration. testimonial. scientific evidence. animation.

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 in KFC's ads is an example of advertising that uses a ________ in its execution technique.

A) B) C) D) E)

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testimonial demonstration fantasy personality symbol behavioral appeal

413

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) B) C) D) E)

testimonial scientific/technical evidence fantasy personality symbol 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) B) C) D) E)

Demonstrations Testimonials Personality symbols Fantasies 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) B) C) D) E)

testimonial advertising execution technique. demonstration advertising execution technique. use of personality symbols in the execution of ads. use of testimonials in the execution of ads. 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.

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A) B) C) D) E)

Imagery Demonstration Slice of life Animation 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) B) C) D) E)

imagery demonstration slice of life animation comparison

99) 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) B) C) D) E)

slice of life animation dramatization testimonial imagery

100) 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

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A) B) C) D) E)

dramatization technique. testimonial technique. fear technique. personality symbol technique. scientific evidence technique.

101) 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) B) C) D) E)

102)

dramatization with a humorous appeal. animation with the intent of creating a personality brand. slice-of-life with a fear appeal. demonstration with an emotional appeal. straight-sell with a humorous appeal.

Which of the following is a basic component of a print advertisement?

A) B) C) D) E)

deadline testimonial trademarks animations layout

103) ________ are words in the leading position of a print advertisement that are likely to be read first.

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A) B) C) D) E)

104)

Research has shown that the first thing people look at in a print ad is the

A) B) C) D) E)

105)

Headlines Body copies Subheads Layouts Primary copies

illustration. visual. body copy. subhead. headline.

Many advertising experts consider the most important part of a print ad to be the

A) B) C) D) E)

headline. subhead. layout. body copy. needledrop.

106) Headlines that are very straightforward and informative in the message they are presenting are known as ________ headlines.

A) B) C) D) E)

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direct indirect secondary visual rational

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107) When an advertiser has something important or new to announce to a target audience, a(n) ________ headline will be used.

A) B) C) D) E)

direct indirect secondary visual affective

108) 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) B) C) D) E)

direct indirect tertiary secondary rational

109) 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) B) C) D) E)

headlines music slogans scripts layouts

110) Which of the following statements describes a potential problem associated with indirect headlines in print ads?

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A) B) message. C) D) E)

They generate curiosity in readers, which takes attention away from the message. They may not be provocative enough to direct a reader's attention to the rest of the They avoid the use of questions or provocations. They avoid the use of how-to statements. They are often treated as subheads.

111) 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) B) C) D) E)

112)

direct headline. indirect headline. subhead. jingle. noise.

________ have the highest click-through rate of the online advertising formats.

A) B) C) D) E)

Video ads Leaderboard display ads Billboard display ads Half-page ads Pop-up ads

113) 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)

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A) B) C) D) E)

story line. subhead. jingle. indirect headline. noise.

114) 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) B) C) D) E)

emotional, teaser, and transformational reminder, teaser, and informational emotional, informational, and transformational emotional, transformational, and commerce concept, content, and commerce

115) ________ 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) B) C) D) E)

116)

Digital advertising Native advertising Video advertising Interactive advertising Display advertising

What is the main portion of text in a print ad called?

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A) B) C) D) E)

story line subhead body copy illustration storyboard

117) The ________ is considered the heart of a print ad but is often difficult to get readers to attend to.

A) B) C) D) E)

118)

headline subhead body copy visual logo

When deciding on the visual portion of a print ad, an advertiser must determine

A) B) C) D) E)

the identification marks to be included. the requirement for a needledrop. the content in the body copy. the length of the ad copy. the headline of the copy.

119) 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) B) C) D) E)

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narration. visual. body copy. artwork. layout.

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120) 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) B) C) D) E)

121)

trademarks. artwork. body copy. layout. illustration.

The audio portion of a commercial is often presented through the use of a(n)

A) B) C) D) E)

layout. voiceover. illustration. headline. storyboard.

122) ________ 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) B) C) D) E)

Jingle Voiceover Needledrop Stock photo Beat music

123) The use of an actor's voice for reading poetry in a series of automobile commercials is an example of a

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A) B) C) D) E)

needledrop. talking jingle. voiceover. tagline. subtextual message.

124) ________ are catchy songs about a product or service that usually carry the advertising theme and a simple message.

A) B) C) D) E)

Headlines Taglines Voiceovers Jingles Needledrops

125) The written version of a television commercial that provides a detailed description of its video and audio content is known as a

A) B) C) D) E)

layout. jingle. voiceover. script. storyboard.

126) 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.

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A) B) C) D) E)

transparency board storyboard visual layout layout synopsis thumbnail sketch

127) During which stage of commercial production process do activities such as editing, recording of sound effects, audio/video mixing, and agency approval occur?

A) B) C) D) E)

128)

preproduction production postproduction preparation incubation

Which of the following is a common criticism of TV commercials?

A) B) C) D) E)

The creative execution tends to overshadow the advertiser's message. They usually have a horizontal layout. They are highly unpredictable and difficult to interpret. They fail to effectively include needledrops and jingles. They overemphasize the brand name and product selling points.

129) Which of the following questions should be used as a criterion when evaluating creative output?

A) B) C) D) E)

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Does the creative approach create a segmentation base? Is the creative approach consistent with that used by the competition? Is the ad truthful and tasteful? Does the creative approach support a market aggregation strategy? Does the creative approach use a dramatic execution style?

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130) Which of the following is not 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?

131) 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?

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Answer Key Test name: chapter 9 1) TRUE 2) TRUE 3) FALSE 4) TRUE 5) FALSE 6) C 7) A 8) E 9) D 10) E 11) B 12) D 13) C 14) E 15) A 16) B 17) D 18) E 19) D 20) D 21) A 22) D 23) C 24) B 25) D 26) A Version 1

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27) D 28) A 29) D 30) B 31) C 32) C 33) B 34) A 35) C 36) C 37) B 38) B 39) B 40) A 41) C 42) D 43) D 44) C 45) A 46) D 47) A 48) C 49) D 50) D 51) B 52) C 53) B 54) B 55) A 56) B Version 1

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57) C 58) C 59) B 60) B 61) E 62) B 63) B 64) E 65) D 66) C 67) E 68) A 69) A 70) A 71) A 72) E 73) A 74) C 75) C 76) C 77) B 78) B 79) A 80) E 81) B 82) D 83) E 84) B 85) B 86) B Version 1

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87) B 88) D 89) B 90) B 91) E 92) C 93) D 94) B 95) C 96) C 97) A 98) A 99) C 100) A 101) A 102) E 103) A 104) E 105) A 106) A 107) A 108) A 109) B 110) B 111) B 112) A 113) B 114) E 115) B 116) C Version 1

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117) C 118) A 119) E 120) D 121) B 122) C 123) C 124) D 125) D 126) B 127) C 128) A 129) C 130) B 131) A Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) The lack of audience information is a greater problem for big advertisers/markets than it is for small advertisers/markets. ⊚ ⊚

true false

There is a strong correlation between social engagement and higher tune-in rates. ⊚ ⊚

true false

3) Availability of new media and the rising costs of media are internal factors that influence media decisions.

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⊚ ⊚

true false

Media objectives are ends in themselves. ⊚ ⊚

true false

5) One exposure of an ad to a target group within a purchase cycle has little or no effect in most circumstances. ⊚ ⊚

true false

Pass-along estimates are very subjective and using them to estimate reach is speculative. ⊚ ⊚

true false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 7) The term ________ refers to the available delivery systems, which include broadcast and print media, outdoor advertising, and other support media, for marketing messages.

A) B) C) D) E)

media strategies target market medium coverage distribution

8) In the media plan development process, the purpose of which part is to understand the marketing problems?

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A) B) C) D)

marketing strategy plan creative strategy plan situation analysis communication plan

9) During which stage of the media plan development process is the choice made to use sole or shared sponsorship?

A) B) C) D)

marketing strategy plan creative strategy plan situation analysis media use decisions

10) If a product has an index number over 100, it means that the use of the product is proportionately greater in that segment than in one that is

A) B) C) D)

11)

What is the first step in the promotional planning process?

A) B) C) D)

12)

higher than average. average. lower than average. unable to be determined.

establishment of media objectives market analysis media strategy development evaluation and follow-up

What index is based on population, effective buying income, and total retail sales?

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A) B) C) D)

brand development index survey of buying power index category development index media channel index

13) Which index uses information about the product category in the numerator to understand the development potential of the total product category?

A) B) C) D)

14)

brand development index survey of buying power index category development index media channel index

Which term means the goals of a media program?

A) B) C) D)

communication objectives strategy objectives media objectives channel objectives

15) Which scheduling method ensures the development of a regular and continuous pattern without gaps or nonadvertising periods?

A) B) C) D)

16)

continuity flighting pulsing consistency

High costs and potential overexposure are drawbacks for which type of scheduling?

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A) B) C) D)

17)

What is calculated as reach x frequency?

A) B) C) D)

18)

cost per inch cost per rating cost per thousand cost per issue

What is the term for the number of people who read a magazine without buying it?

A) B) C) D)

20)

target ratings points gross ratings points coverage ratings points overexposure ratings points

Magazines use which measure to determine the cost effectiveness of advertisements?

A) B) C) D)

19)

flighting pulsing consistency continuity

readership rate pass-along rate readers per copy total reach

Which of the following is an advantage of radio advertisements?

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A) B) C) D)

21)

Which of the following is a disadvantage of direct-mail advertising?

A) B) C) D)

22)

clutter selectivity high information content repeat exposures

Which of the following is an advantage of television advertising?

A) B) C) D)

23)

audio only clutter flexibility attention

message life cost per exposure selectivity production cost

Which of the following is a disadvantage of digital/interactive media?

A) B) C) D)

direct selling interactive platform potential for deception interactive relationship

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.

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A) B) C) D) E)

media planning market segmentation target marketing organizational planning 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) B) C) D) E)

26)

A media plan is a guide for

A) B) C) D) E)

27)

Market segmentation Media planning Product differentiation Brand positioning Target diversification

development of creative objectives. media selection. sales forecasting. marketing research activities. media studies.

________ are plans of action designed to achieve specific media objectives.

A) B) C) D) E)

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Media goals Media services Media strategies Media vehicles Media designs

436

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) B) C) D) E)

transit reach conduit medium niche

29) Flair, a women's magazine, features an ad for Elvira watches. Being a specific carrier within a medium category, Flair is known as a

A) B) C) D) E)

conduit. mobile channel. distribution channel. transit channel. 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) B) C) D) E)

31)

media frequency. media segment. media vehicle. media strategy. media symbol.

Which of the following is an example of a media vehicle?

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A) B) C) D) E)

a television set a fashion magazine direct marketing newspaper advertising 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) B) C) D) E)

Contact Reach Viewer number Coverage Exposure

33) ________ refers to the potential audience that might receive a message through a media vehicle.

A) B) C) D) E)

Frequency Reach Viewer number Coverage Exposure

34) ________ is the number of times a receiver is exposed to a media vehicle in a given time period.

A) B) C) D) E)

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Potency Reach Coverage Frequency Audience contact

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35)

A ________ determines the best way to get an advertiser's message to the market.

A) B) C) D) E)

36)

distribution plan coverage plan frequency level media plan reach strategy

Which of these factors reduces the effectiveness of a media plan?

A) B) C) D) E)

information overload product life cycle differences market segmentation time pressures audience diversity

37) Listenership of Volatile Heat FM was measured 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) B) C) D) E)

38)

sweeps periods. GRP flighting periods. frequency estimates. availabilities. upgraded media scheduling.

The first step in developing a media plan is the

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A) B) C) D) E)

market analysis. establishment of media objectives. media strategy development and implementation. evaluation and follow-up. advertising campaign development.

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) B) C) D) E)

40)

cost per media (CPM) quantitative advantage index number average frequency relative reach

An index number of 100 means that the

A) B) C) D) E)

use of a product is proportionately greater than average in a segment. market segment being analyzed is average. use of a product is proportionately less than average in a segment. probability of wasted coverage is 100 percent. 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) B) C) D) E)

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the size of the media budget competitive factors changes in technology the development of new media he rising costs of media

440

42) Which of the following is considered an external factor that may influence the determination of media strategy?

A) B) C) D) E)

administrative capabilities the rising costs of media size of the media budget delegation of agency tasks 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) B) C) D) E)

Nielsen rating index. BAR/LNA. brand development index (BDI). category development index (CDI). 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) B) C) D) E)

the geographic areas to target. demographic characteristics of the target population. lifestyle characteristics of the target population. consumer behavior. 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?

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A) B) C) D) E)

46)

Simmons Market Research Bureau Mediamark Research Inc. survey of buying power index BAR/LNA Standard Rates and Data Service

The rate of product usage in a geographical area can be calculated through the use of

A) B) C) D) E)

gross rating points. reach and frequency. the brand development index. the benchmark designated index. the category development index.

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) B) C) D) E)

survey of buying power index. brand development index. category development index. Dow Jones sustainability index. 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) B) C) D) E)

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brand development index. category development index. survey of buying power index. Dow Jones sustainability index. consumer price index.

442

49) The category development index is similar to the brand development index (BDI) except that it

A) B) C) D) E)

uses information about a product category. categorizes consumers according to their demographic characteristics. is concerned with companies and not with products. is tied to an economic index. 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) B) C) D) E)

good sales potential for both product and brand low market share for product but good market potential good market to advertise in but requires sales decline monitoring product category has high potential and brand is performing well 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) B) C) D) E)

high market share and good market potential low market share and good market potential high market share requiring monitoring for sales decline low market share and poor market potential high market share but not a good market to advertise in

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?

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A) B) C) D) E)

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) B) C) D) E)

high market share; good market potential low market share; good market potential high market share; monitoring required for sales decline low market share; poor market potential 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) B) C) D) E)

high brand development index (BDI) and high category development index (CDI) high brand development index (BDI) and low category development index (CDI) low brand development index (BDI) and high category development index (CDI) low brand development index (BDI) and low category development index (CDI) 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 index reflects this information?

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A) B) C) D) E)

low brand development index (BDI) high brand development index (BDI) low category development index (CDI) high category development index (CDI) 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) B) C) D) E)

a media objective. a needledrop. a medium integration. a corporate vision. an advertising vision.

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) B) C) D) E)

58)

a media objective. a needledrop. a medium integration. a corporate vision. an advertising vision.

When the range of a media exceeds the targeted audience, the excess is referred to as

A) B) C) D) E)

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frequency surplus. flighting. waste coverage. geographical excess. oversaturation.

445

59) If media coverage reaches people who are not sought as buyers and are not potential users, then it is referred to as

A) B) C) D) E)

60)

Which of the following ads would most likely result in waste coverage?

A) B) C) D) E)

61)

rate differentials. pass-along audience problems. excess frequency. waste coverage. weighted exposure.

an ad for custom-build concession food trailers appearing in a trade journal a B2B ad appearing in a general fashion magazine a commercial for a soda drink appearing on a music channel a sports shoes commercial aired during a live telecast of a basketball game an ad for an organic fertilizer in a farm publication magazine

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.

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?

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A) B) C) D) E)

research manager account executive brand manager media planner 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) B) C) D) E)

flighting. continuity. geographical weighting. intermittent frequency. pulsing.

64) When the most effective media exposes people who are not sought, waste coverage is still justified because

A) B) C) D) E)

it best supports a flighting media schedule. the cost of the waste coverage is exceeded by the value gained from their use. it allows for more specific targeting of a market segment. the media enables repetition which is an effective method for pioneering advertising. 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.

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A) B) C) D) E)

sweeps period scheduling waste coverage frequency estimation 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) B) C) D) E)

weighted ratings oscillating flighting pulsing continuity

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) B) C) D) E)

flighting oscillating pulsing continuity 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. This industry uses a(n) ________ schedule.

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A) B) C) D) E)

flighting oscillating pulsing continuity 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) B) C) D) E)

pulsing continuity flighting oscillating 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) B) C) D) E)

pulsing continuity flighting oscillating weighted ratings

71) Which of the following media scheduling strategies would most likely be used by a marketer of dishwashing detergent?

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A) B) C) D) E)

ratings share flighting pulsing continuity

72) For which of the following products is an advertiser most likely to use continuity scheduling?

A) B) C) D) E)

swimming pool chemicals flea collars cake mixes wood-burning stoves tickets to professional basketball games

73) ________ is a scheduling method that employs a less-regular schedule with intermittent periods of advertising and nonadvertising.

A) B) C) D) E)

Weighting Continuity Pulsing Flighting 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.

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A) B) C) D) E)

continuity weighting flighting circulation oscillating

75) For which of the following products is an advertiser most likely to use a flighting schedule?

A) B) C) D) E)

cake mixes shampoo newspaper subscriptions snow tires 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) B) C) D) E)

intermittent continuity flighting weighting pulsing

77) Manufacturers of recreation vehicles advertise throughout the year but typically advertise heavily in June and September. Which scheduling method does this pattern represent?

A) B) C) D) E)

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flighting geographical weighting continuity oscillating pulsing

451

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) B) C) D) E)

flighting geographical weighting continuity oscillating pulsing

79) Which of the following statements correctly 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?

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?

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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.

82)

New brands or products need very high levels of reach

A) B) C) D) E)

in order to minimize the waste coverage. to make all potential buyers aware of the new entry. because they have an associated problem of overexposure. since they have low brand and category development indices. 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) B) C) D) E)

84)

maximizing frequency. maximizing reach. maximizing coverage. using maximum continuity. using a pulsing push strategy.

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.

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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) B) C) D) E)

duplicated reach. facsimile promotion. advertising replication. duplicated frequency. flighting.

86) If an ad is placed on two TV shows, the total number of people exposed only once is referred to as

A) B) C) D) E)

87)

The overlap that occurs when the same people see an ad twice is referred as

A) B) C) D) E)

88)

coverage. unduplicated reach. duplicated reach. frequency. program rating.

Unduplicated reach indicates

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A) B) C) D) E)

89)

buying intentions. the extent of consumer awareness. the amount of waste coverage. an estimate of frequency. potential new exposures.

Duplicated reach

A) B) C) D) E)

indicates potential new exposures. reduces waste coverage. reinforces immediate purchasing behavior. provides an estimate of frequency. 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) B) C) D) E)

unduplicated reach. average coverage. increased sweeps periods. duplicated reach. 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) B) C) D) E)

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sweeps periods. frequency. index numbers. duplicated reach. program rating.

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92)

Gross ratings points (GRPs) can be calculated by

A) B) C) D) E)

93)

multiplying reach times frequency of exposure. dividing reach times frequency by costs. multiplying cost per thousand (CPM) times average frequency. dividing average frequency by costs. adding reach and frequency and dividing by cost per thousand (CPM).

Overexposure, or ________, is when media coverage exceeds the targeted audience.

A) B) C) D) E)

geographic coverage partial market coverage pulsing coverage waste coverage 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) B) C) D) E)

Brand development index Program rating Category development index Target ratings points Gross ratings points

95) ________ are based on the total audience a media schedule may reach using a duplicated reach estimate.

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A) B) C) D) E)

Gross rating points (GRPs) Target rating points (TRPs) Total target rating points (TTRPs) Sweeps periods 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) B) C) D) E)

Target ratings points Gross ratings points Target frequencies Effective target reach Total market coverage

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.

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A) B) C) D) E)

99)

average frequency average reach effective reach GRP effective frequency

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.

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A) B) C) D) E)

Effective reach Unduplicated reach Average reach Average frequency Effective frequency

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) B) C) D) E)

104)

message uniqueness clutter purchase and usage cycles media scheduling message complexity

Which of the following is a creative factor that is used in determining frequency levels?

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A) B) C) D) E)

105)

message variation target group clutter attentiveness scheduling

Recency planning focuses on

A) B) C) D) E)

continuous scheduling over a one-week period. frequency rather than reach. short interval reach at maximum frequency levels. more targeting to gain exposure to reach as many potential consumers as possible. 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) B) C) D) E)

flighting continuity pulsing direct indirect

107) The ________ of a medium or media vehicle is the actual total cost required to place an advertising message.

A) B) C) D) E)

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net contribution margin net cost absolute cost relative cost cost per media (CPM)

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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) B) C) D) E)

Net contribution margin Net cost Absolute cost Relative cost 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) B) C) D) E)

Net contribution margin Net cost Absolute cost Relative cost 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) B) C) D) E)

interactive media radio magazine television newspaper

111) The primary objective of ________ is to time promotional efforts so that they will coincide with the highest potential buying times.

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A) B) C) D) E)

scheduling reach frequency mood budgeting

112) Which of the following parameters does the formula for the computation of cost per thousand (CPM) take into account?

A) B) C) D) E)

cost of ad space program rating cost of commercial time daily inch rate 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) B) C) D) E)

index number. cost per thousand. absolute cost. category development index. 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) B) C) D) E)

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circulation cost per repetition cost per thousand cost of ad space cost of commercial time

462

115) In media planning, the cost of the commercial time divided by the program rating is the formula used to calculate

A) B) C) D) E)

cost per thousand. brand index number. category development index. gross rating point. cost per point.

116) For newspapers, the cost-efficiency formula to determine the relative cost of the media is based on

A) B) C) D) E)

117)

the pass-along rate. gross rating points. column inches. the daily inch rate. absolute reach.

Which of the following media uses cost per ratings point to compare cost figures?

A) B) C) D) E)

magazine transit newspaper billboard television

118) In an attempt to standardize relative costing procedures, the broadcast and newspaper media have begun to provide

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A) B) C) D) E)

119)

costs per point. costs per CRPs. gross rating points. costs per thousand. costs per circulation.

Which of the following statements 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) B) C) D) E)

BDI CDI Target CPM Target market segmentation 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) B) C) D) E)

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has coverage of the overall audience. reaches more potential receivers even though it has a high cost per thousand. has a low cost per thousand. has high absolute and low relative costs for advertising and promoting the product. has a high pass-along rate.

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122)

Which of the following statements 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.

123) Advertisers include ________ in the readers-per-copy figures to estimate the number of people who read a magazine without buying it.

A) B) C) D) E)

124)

Which of these factors leads to an underestimation of actual reach?

A) B) C) D) E)

125)

pass-along rates cost per point frequency estimates gross ratings points average frequency index

changes in daily inch rates cost per page variations pass-along rates ineffective CPP estimations variations in the TCPM

The pass-along rate refers to the

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A) newspaper advertising rate charged to manufacturers by retailers placing ads for them. B) C) D) E)

126)

The major problem with the use of readers-per-copy figures is

A) B) C) D) E)

127)

determining pass-along rates. determining the time spent reading a magazine. calculating cost estimates efficiently. determining an efficient way to estimate the effects of sweeps periods. calculating costs per ratings point.

Which of the following is an advantage associated with newspaper advertising?

A) B) C) D) E)

128)

television advertising rate charged to national advertisers. number of persons to whom a magazine copy has been given and who have read it. magazine advertising rate for throw-away publications. percentage of people who skip over an ad while reading a publication.

longer life short lead time for placing ads high reproduction quality wide reader exposure lack of clutter

Which of the following is a disadvantage associated with radio advertising?

A) B) C) D) E)

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high production costs low audience segmentation high clutter low frequency low flexibility

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129)

Which of the following is an advantage associated with direct-mail advertising?

A) B) C) D) E)

low selectivity high repetition low cost per exposure low level of clutter 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) B) C) D) E)

transit television newspaper outdoor 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) B) C) D) E)

television interactive media radio direct mail 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. Which medium offers these advantages?

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A) B) C) D) E)

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television interactive media outdoor direct mail newspapers

468

Answer Key Test name: chapter 10 1) FALSE 2) TRUE 3) FALSE 4) FALSE 5) TRUE 6) TRUE 7) C 8) C 9) D 10) C 11) B 12) B 13) C 14) C 15) A 16) D 17) B 18) C 19) B 20) C 21) A 22) B 23) C 24) A 25) B 26) B Version 1

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27) C 28) D 29) E 30) C 31) B 32) B 33) D 34) D 35) D 36) D 37) A 38) A 39) C 40) B 41) A 42) B 43) E 44) A 45) C 46) C 47) B 48) B 49) A 50) C 51) A 52) D 53) B 54) D 55) A 56) A Version 1

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57) A 58) C 59) D 60) B 61) B 62) D 63) C 64) B 65) B 66) C 67) D 68) C 69) B 70) C 71) E 72) C 73) D 74) C 75) D 76) E 77) E 78) E 79) B 80) A 81) A 82) B 83) B 84) B 85) A 86) B Version 1

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87) C 88) E 89) D 90) D 91) E 92) A 93) D 94) E 95) A 96) A 97) B 98) C 99) D 100) C 101) D 102) D 103) C 104) A 105) A 106) B 107) C 108) D 109) D 110) C 111) A 112) A 113) B 114) E 115) E 116) D Version 1

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117) E 118) D 119) C 120) C 121) B 122) A 123) A 124) C 125) C 126) A 127) B 128) C 129) E 130) B 131) B 132) C Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) A commercial break that includes two Just A and Z position commercials lasting no longer than 60 seconds is known as a JAZ pod. ⊚ ⊚

true false

2) 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

Nielsen's current C3 ratings track individual ads and specific time slots.

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⊚ ⊚

true false

4) The size of the radio listening audience is roughly equivalent across dayparts, so advertising rates are the same throughout the day. ⊚ ⊚

true false

5) Nielsen-owned RADAR National Network Ratings uses measurements from a probability sample of 400,000 respondents age 12 and older. ⊚ ⊚

true false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 6) To date, Sunshine Sundries has restricted their advertising to magazines, print ads, and even local radio. They have engaged Success Advertising to help them launch a national campaign to include television commercials to build an emotional attachment to their brand image. What television offers over their previous advertising methods used is the interaction of

A) B) C) D) E)

sound and creativity. sight and brand identify. brand identity and creativity. sight and sound. sound and substance.

7) Widespread Products is looking to All Around Marketers to help deliver an advertising messages at a very low cost per thousand. All Around Marketers recommends TV as a method to reach large audiences for any company selling

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A) B) C) D) E)

custom-order products. Etsy products. mass-consumption products. segmented consumer products. one-of-a-kind products

8) Television is a popular advertising medium among companies selling products and services that are consumed by mass markets because it

A) B) C) D) E)

has a low absolute cost. can reach large audiences in a relatively cost-efficient manner. has a high level of geographic selectivity. is very easy to develop creative television advertising. has the power to eliminate the problem of commercial advertising clutter.

9) TV is a popular medium among companies selling mass-consumption products because of its

A) B) C) D) E)

10)

capacity to reach a precisely defined market segment. capacity to eliminate the problem of commercial clutter. ability to reinforce radio messages through adjacency techniques. ability to reach large audiences in a cost-efficient manner. ability to prevent the zipping and zapping effects.

Which of the following statements is true of television as an advertising medium?

A) B) C) D) E)

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Television advertising is highly expensive and typically not cost efficient. Television has often been criticized for being a nonselective medium. Television as an advertising medium is typically not intrusive. Television advertising is considered to be highly inflexible. Television offers a greater range of geographic selectivity.

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11) Which of the following factors makes it difficult for small-size advertisers to use television as part of their media mix?

A) B) C) D) E)

the failure of TV programs to reach their intended target markets the lack of knowledge among small ad agencies on how to produce TV commercials the high costs of producing and airing television commercials the limited creative options available through television the lack of captivity and attention that TV advertising provides

12) Mango Services is looking into television for their local target audience. Because they have a very specific audience, they are hesitant to pursue a medium that broadcasts beyond their market, reducing their cost effectiveness. Local advertisers may find that TV’s ________ prohibits them from making a cost-effective decision in television advertising.

A) B) C) D) E)

natural selectivity geographic selectivity broadcast selectivity segmented selectivity one-of-a-kind selectivity

13) 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) B) C) D) E)

14)

clutter control. noise filters. audience measures. geographic selectivity. zipping capabilities.

Which of the following statements about the length of television commercials is true?

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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.

15)

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.

16) An advertiser bought a 15-second spot during prime time, but realized that there was very low recall for the advertisement. This low recall could be due to

A) B) C) D) E)

17)

the presence of commercial clutter. the lack of demographic selectivity of television. the low reach of television. the inherent deficiencies of television as a communication medium. message source alienation.

Which of the following is an inherent disadvantage of television advertising?

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A) B) C) D) E)

fleeting nature of messages lack of cost efficiency lack of flexibility limited captivity limited coverage

18) With the increasing ability to record television programs, people watch when they want and in less time with the ability to fast-forward through commercials. Fast-forwarding to avoid commercials is called

A) B) C) D) E)

reeling. zagging. zipping. zapping. zigging.

19) ________ refers to the practice of fast-forwarding through commercials on prerecorded programs.

A) B) C) D) E)

Zipping Zapping Multiplexing Narrowcasting Zooming

20) During ad breaks in TV programs, some viewers change channels to avoid commercials. This practice is known as

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A) B) C) D) E)

multiplexing. zapping. narrowcasting. time shifting. zipping.

21) 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) B) C) D) E)

narrowcasting. zooming. multiplexing. zipping. zapping.

22) 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) B) C) D) E)

23)

pulsing. zooming. encoding. zipping. zapping.

Which of the following statements is true about zapping?

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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.

24)

Advertisers can prevent consumers from zapping commercials by

A) B) C) D) E)

introducing "commercial-free" programming. producing commercials that are meaningful. utilizing 60-second commercials. introducing the concept of zipping. opting for local advertising.

25) ________ are local TV stations to which a single television network supplies programming and services.

A) B) C) D) E)

Syndicates Adjacencies Full-run spots Affiliates Zappers

26) 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.

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A) B) C) D) E)

satellite networks interconnects affiliates station reps regional networks

27) Network advertising comprises a contractual agreement across multiple TV stations to preempt airtime during specific times for advertising. A major advantage of network advertising is the simplification of the ________ process.

A) B) C) D) E)

28)

advertising purchase brand appeal communication

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.

29)

Which of the following statements about network advertising is true?

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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.

30) The buying period that takes place before the TV season begins and during which networks sell much of their commercial time is referred to as the

A) B) C) D) E)

scatter market. regional market. off-network market. spot market. up-front market.

31) 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. Bedazzle Cosmetics bought the commercial space during the ________ market.

A) B) C) D) E)

up-front continual scatter zipping spot

32) Success Advertising plans to purchase advertising for Sunshine Sundries throughout the TV season. They will be purchasing from the

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A) B) C) D) E)

quarterly market. up-front market. seasonal market. scatter market. buyer’s market.

33) 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) B) C) D) E)

up-front market. scatter market. spot market. local market. rep market.

34) The buying period for television advertising time that runs throughout the television season is known as the _____ market.

A) B) C) D) E)

up-front spot scatter interconnected local

35) ________ refers to commercials on local television stations for which the advertisers negotiate directly with the individual stations.

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A) B) C) D) E)

36)

Network advertising Spot advertising Regional advertising Syndicated advertising Rep advertising

Which of the following statements 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.

37)

Spot advertising refers to ads on ________ TV stations.

A) B) C) D) E)

national regional local international transcontinental

38) ________ are individuals who act as salespersons for a number of local stations and represent them in their dealings with national advertisers.

A) B) C) D) E)

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Station managers Affiliates Negotiators Station reps Sponsors

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39) Which of the following statements correctly 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.

40)

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.

41)

Spot advertising is

A) B) C) D) E)

mostly confined to station breaks between programs on network-originated shows. used only by local advertisers. subject to less clutter than network advertising. easier to buy than advertising on national networks. airtime sold to local firms such as retailers, restaurants, banks, and auto dealers.

42) ________ are shows that are sold or distributed on a station-by-station, market-by-market basis.

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A) B) C) D) E)

Interconnects Adjacencies Affiliate programs Participation programs Syndicated programs

43) The market that includes shows that did not make network programming in addition to original productions is called

A) B) C) D) E)

particular-market syndication. barter syndication. first-run syndication. advertiser-supported syndication. off-network syndication.

44) ________ are reruns of network shows that are bought by individual stations to broadcast.

A) B) C) D) E)

Off-network syndications Sponsorships First-run syndications Network spots Local syndications

45) 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) B) C) D) E)

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off-network syndication. shortwave syndication. first-run syndication. network syndication. beam syndication.

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46)

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 offnetwork syndicated shows between 7:00 and 8:00 P.M. E) Off-network syndication refers to shows produced specifically for the syndication market.

47) Shows such as Judge Jenny and Tonight's Entertainment are produced specifically for the syndication market. This is referred to as

A) B) C) D) E)

48)

off-network syndication. first-run syndication. special-purpose syndication. spot syndication. affiliate syndication.

The term ________ refers to shows produced specifically for the syndication market.

A) B) C) D) E)

off-network syndication up-front syndication special-purpose syndication first-run syndication rerun syndication

49) 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

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A) B) C) D) E)

50)

Barter syndication is also called

A) B) C) D) E)

51)

off-network syndication. first-run syndication. barter syndication. sponsorship. participation.

advertiser-supported syndication. station-sponsored syndication. up-market syndication. first-run programming. presold programming.

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.

52) 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.

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A) B) C) D) E)

53)

sponsorship participation barter syndication local syndication spot syndication

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.

54)

Which of the following is a disadvantage of syndication?

A) B) C) D) E)

Syndicated shows are often aired during an undesirable time period. Syndicated shows offer no advantages to national advertisers. Syndicated shows are often more expensive than network shows. Syndicated shows reach a limited audience and generate limited ad revenue. Syndicated shows do not benefit local television stations.

55) Advertisers have little control over the placement of their commercials within a program when they advertise using a(n) ________ arrangement.

A) B) C) D) E)

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sponsorship participation daypart exclusivity run-of-station

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56) In the early days of television, the production and content of most television programs was the responsibility of

A) B) C) D) E)

the networks. the local affiliate. corporations that sponsored the shows. independent production companies. the syndicates.

57) With ________, advertisers assume responsibility for the production and usually the content of the program as well as the advertising that appears within it.

A) B) C) D) E)

58)

participations sponsorships adjacencies syndications countertrades

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.

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59) 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) B) C) D) E)

sponsorship participation adjacency off-network syndication countertrade

60) Which of the following terms is defined as the television time period available to local stations right before or after network programming?

A) B) C) D) E)

61)

________ are the various time periods or segments into which a broadcast day is divided.

A) B) C) D) E)

62)

adjacencies participations sponsorships affiliates sweeps

Adjacencies Pulse days Spots Dayparts Spot beams

Morning, daytime, prime time, and late fringe are all examples of

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A) B) C) D) E)

63)

Typically, most network television advertising time is sold as

A) B) C) D) E)

64)

television dayparts. types of spot beaming. types of network syndication. run-of-station spots. up-front markets.

sponsorships. participations. adjacencies. spot announcements. affiliated offerings.

Which of the following statements 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.

65)

Which television daypart has the highest rates and is dominated by national advertisers?

A) B) C) D) E)

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daytime early fringe prime time late news late fringe

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66)

The television daypart that attracts the largest viewing audience is

A) B) C) D) E)

daytime. early fringe. early news. overnight. prime time.

67) Most advertisers prefer buying their network advertising time as participation over sponsorships because they want

A) B) C) D) E)

long-term commitment to a program. greater financial responsibility for production of a program. greater flexibility than sole sponsorship permits. a greater concentrate for their advertising budget. greater control over the placement of ads.

68) 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) B) C) D) E)

prime access. early fringe. prime time. early news. late news.

69) 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

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A) B) C) D) E)

early fringe. late fringe. early news. prime access. prime time.

70) 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) B) C) D) E)

overnight. late fringe. early news. prime access. early fringe.

71) 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) B) C) D) E)

late fringe. early fringe. late news. early news. prime access.

72) 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) B) C) D) E)

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late fringe. early fringe. prime access. prime time. late news.

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73)

The major reason for the decline in the viewing audiences of the four major networks is

A) B) C) D) E)

the widespread use of videocassette recorders. the growth of cable television. poor programming. the exponential growth of clutter. changes in cultural values, which are reducing television viewing time.

74) 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.

75) An arrangement where a group of cable systems in a geographic area are joined together for advertising purposes is known as

A) B) C) D) E)

76)

syndication. an interconnect. an adjacency. multiplexing. stunting.

The growth in spot cable advertising has been facilitated by the use of

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A) B) C) D) E)

77)

LANs. hyperstitials. interconnects. interstitials. clutter minimizers.

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.

78) Advertising on television to specialized audiences that has been made possible by cable advertising is known as

A) B) C) D) E)

79) the

zipping. zapping. narrowcasting. multiplexing. gladvertising.

For advertisers, one disadvantage of cable television as compared to network television is

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A) B) C) D) E)

80)

lack of penetration. lack of flexibility. lack of selectivity. lack of cost-effectiveness. limitations on the length of commercials.

Cable networks that can transmit several channels from one network engage in

A) B) C) D) E)

multiplexing. interconnecting. single sourcing. subvertising. gladvertising.

81) The price for commercial time charged by a television network is largely a function of a program's

A) B) C) D) E)

82) is

average frequency. commercial clutter competence. audience size and composition. zipping and zapping effect. comprehensive layout.

The sole source of network television and local audience information in the United States

A) B) C) D) E)

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Arbitron Co. Nielson Media Research. Rockbridge Associates, Inc. Roy Morgan Research. Burke Research.

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83) 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.

84) 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) B) C) D) E)

85)

30 percent. 20 percent. 60 percent. 25 percent. 15 percent.

Which of the following statements 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.

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86) On a national level, a ratings point is equal to 1,200,000 households tuned in to a specific program each week. How many ratings points equals 8.4 million households?

A) B) C) D) E)

4 6 5 7 8

87) 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) B) C) D) E)

88)

35. 15. 10. 20. 30.

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.

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89) 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 was

A) B) C) D) E)

22. 44. 50. 200. 100.

90) 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.

91) ________ is defined as 1 percent of all the television households in a particular area tuned to a specific program.

A) B) C) D) E)

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Category development index A ratings point A cross-platform rating Share of audience Brand development index

500

92) 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) B) C) D) E)

32. 35.5. 26. 22.2. 20.2.

93) Ratings services measure television audiences. The measurement of the percentage of all households with televisions that are tuned into the same show at the same time is called

A) B) C) D) E)

a Designated Market Area (DMA). the total audience. a share of audience. a Portable People Meter (PPM). Households Using Television (HUT).

94) The Nielsen Station Index (NSI) reports estimates of viewing measures over a range of demographic categories including time periods, programs, and audience size. This includes 210 non-overlapping areas used for planning, buying and evaluating. This grouping of centralized stations is called

A) B) C) D) E)

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a designated market area (DMA). a total audience. a share of audience. the Portable People Meter (PPM). Households Using Television (HUT).

501

95) 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) B) C) D) E)

96)

25. 15. 30. 35. 20.

Which of the following statements is the correct definition “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.

97)

In the United States, ________ provides local audience measurement for television.

A) B) C) D) E)

the Nielsen Company RADAR Arbitron Roy Morgan Research Burke Research

98) 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 Version 1

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A) B) C) D) E)

99)

an audimeter. a people meter. an electronic diary. a streaming server. a chronometer.

The Nielsen Station Index (NSI) refers to local television markets as

A) B) C) D) E)

areas of dominant influence. metropolitan rating areas (MRAs). designated market areas (DMAs). local markets. geodemographic areas.

100) The rating periods during which Nielsen measures viewing audiences in every television market are known as

A) B) C) D) E)

101)

interconnects. designated market periods. adjacencies. audience shares. sweeps.

Commercial ratings data, known as "C3," includes measures of the

A) B) C) D) E)

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number of advertisers who buy airtime during the up-front market. average viewership of individual ads. average viewership of all the national commercial minutes in a program number of people who are viewing a program on a DVR. viewership in the 56 largest local markets.

503

102) Which of the following companies provides commercial ratings data (also known as "C3")?

A) B) C) D) E)

103)

In 2016, Nielsen began rolling out its

A) B) C) D) E)

104)

Rockbridge Associates, Inc. Burke Research Roy Morgan Research Nielson Media Research Arbitron Co.

commercial ratings data. linear TV ratings. designated market areas (DMAs). people meters. total audience measurement system.

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.

105) The relatively low cost of radio advertising time makes it an effective medium through which advertisers can build more ________ into their media schedules.

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A) B) C) D) E)

106)

absolute cost reach and frequency inherent drama audience selectivity spectaculars

Radio offers high levels of audience selectivity because of

A) B) C) D) E)

the wide variety of program formats offered by different stations. the broadcast overlap of local radio stations. the transmission capability of the various stations. its low cost. image transfer capabilities.

107) Success Advertising has created a complementary series of national radio campaigns to launch with their national network commercials. Sunshine Sundries sees this as a big step in the market, knowing that national advertising accounts for approximately ________ of radio’s revenue.

A) B) C) D) E)

108) of

4 percent 6 percent 5 percent 7 percent 8 percent

Highly specialized programming that reaches a very narrow audience is a characteristic

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A) B) C) D) E)

radio. prime-time television. cable television. syndicated networks. daytime television.

109) Cost-per-minute (CPM) radio advertising rates can very, being lower for audiences over 50, and higher for daytime stations reaching adults

A) B) C) D) E)

7 to 49. 35 to 49. 21 to 49. 12 to 49. 18 to 49.

110) Radio listeners that listen to the same station are found to be _________ connected, which makes for a receptive environment for advertising.

A) B) C) D) E)

universally physically emotionally authentically materially

111) The audio portion of a television commercial is often used in the radio spot for the same product so that consumers will make a mental connection to the TV commercial. This is known as

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A) B) C) D) E)

112)

positioning. image transfer. cross-beaming. zapping. zipping.

Advertisers use the image transfer process in radio advertising in order to

A) B) C) D) E)

emphasize the zapping effect. reinforce their television messages. transfer the image created by a radio commercial to the point of purchase. transfer the image of celebrities to the advertised brand. increase commercial clutter.

113) Radio has a high level of audience fragmentation. Even a top-rated station may draw approximately ________ of a total listening audience.

A) B) C) D) E)

40 percent 30 percent 50 percent 10 percent 20 percent

114) Which of the following statements describes a limitation associated with the use of radio as an advertising medium?

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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.

115)

A major threat to conventional broadcast radio is

A) B) C) D) E)

116)

the emergence of digital media. low-powered local radio broadcasting. the ability of TV ads to increase commercial clutter. the fact that consumers prefer to pay a subscription fee for their radio. the ability to zip and zap radio commercials.

Which daypart has the largest radio audience and the highest rates?

A) B) C) D) E)

morning drive time (6:00–10:00 A.M.) midday (10:00 A.M.–3:00 P.M.) nighttime (7:00 P.M.–12:00 A.M.) all night (12:00–6:00 A.M.) lunchtime (12:00–2:00 P.M.)

117) Nielsen Audio provides ratings reports to clients in the ________, to which clients subscribe.

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A) B) C) D) E)

118)

Portable People Meter Nielsen Net Ratings Report Nielsen Topline Radio Rating HUT Report Cross-Platform Report

Spot radio accounts for ________ of radio time sold.

A) B) C) D) E)

5 percent 10 percent 15 percent 20 percent 25 percent

119) ________ 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) B) C) D) E)

120)

A shill An interconnect Station rep Cume An affiliate

In the Nielsen Audio radio reports, “person estimates” refers to

A) B) C) D) program. E)

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the estimated number of people listening. the estimated cost of a spot schedule within a particular time period. the estimated number of people involved in preparing the Nielsen Audio report. information on number of network audiences only for commercials within a the percentage of the total estimated listening audience.

509

121) With respect to the basic estimates in the Nielsen Audio report, “rating” refers to the percentage of

A) B) C) D) E)

122)

With respect to the basic estimates in the Nielsen Audio report, “share” refers to

A) B) C) D) E)

123)

the percentage people involved in preparing the Arbitron ratings report. the estimated number of people who watch television commercials. the estimated number of radio stations that run a particular commercial. the percentage of listeners in the survey area population. the percentage of the total estimated listening audience.

________ represents the total number of listeners of the survey-area population.

A) B) C) D) E)

124)

the total estimated listening audience. listeners in the survey area population. people involved in preparing the Arbitron ratings report. listeners who watch TV commercials for more than five minutes. listeners who watch TV commercials for a minimum of five minutes.

AQH RHR AQH RTG AQH SHR AQH RHG AQH STG

________ represents the total number of listeners tuned into a station.

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A) B) C) D) E)

AQH RHR AQH RTG AQH SHR AQH RHG AQH STG

125) Success Advertising knows that ad rates can be obtained through local stations or from SRDS’s Radio Advertising Source, which provides data on both local and network radio. They are keen to find stations that do not adhere to the published rates in the SRDS, and are willing to negotiate rates based on availability, number of spots purchased, and

A) B) C) D) E)

advertising appeal. length of commercial. brand identity. music used. time period.

126) The RADAR report is issued four times a year providing radio listening measures of syndicated and network radio audiences. What does RADAR stand for?

A) B) C) D) E)

127)

Radio’s All Dimension Audience Record Radio’s All Daypart Advertising Record Radio’s All Dimension Audience Research Radio’s All Daypart Audience Research Radio’s All Dimension Advertising Record

Nielsen's RADAR

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A) B) C) D) E)

cannot be used to estimate the audience for commercials on various programs. is sponsored by nine of the largest advertisers in the nation. primarily measures TV viewership for local TV stations. is based on information collected by means of diary interviews. 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) B) C) D) E)

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RADAR HUT Nielsen Television Index People Meter DMA

512

Answer Key Test name: chapter 11 1) TRUE 2) TRUE 3) FALSE 4) FALSE 5) TRUE 6) D 7) C 8) B 9) D 10) B 11) C 12) B 13) D 14) C 15) B 16) A 17) A 18) C 19) A 20) B 21) E 22) D 23) D 24) B 25) D 26) C Version 1

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27) B 28) A 29) C 30) E 31) A 32) D 33) B 34) C 35) B 36) B 37) C 38) D 39) D 40) E 41) A 42) E 43) C 44) A 45) A 46) A 47) B 48) D 49) C 50) A 51) C 52) C 53) A 54) A 55) B 56) C Version 1

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57) B 58) A 59) A 60) A 61) D 62) A 63) B 64) D 65) C 66) E 67) C 68) B 69) C 70) D 71) A 72) E 73) B 74) E 75) B 76) C 77) B 78) C 79) A 80) A 81) C 82) B 83) C 84) B 85) B 86) D Version 1

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87) C 88) B 89) B 90) C 91) B 92) D 93) C 94) A 95) B 96) A 97) A 98) B 99) C 100) E 101) C 102) D 103) E 104) B 105) B 106) A 107) C 108) A 109) E 110) C 111) B 112) B 113) D 114) D 115) A 116) A Version 1

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117) C 118) D 119) D 120) A 121) B 122) E 123) B 124) C 125) E 126) C 127) D 128) A Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) Newspapers and magazines are referred to as low-involvement media. ⊚ ⊚

true false

2) One way to achieve geographic selectivity is by using a magazine that targets a particular area of interest. ⊚ ⊚

true false

3) The reach and frequency of magazine advertisements are higher than advertisements through other media. ⊚ ⊚

true false

The front cover of a magazine is considered editorial space and off limits to advertisers.

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⊚ ⊚

true false

5) Newspapers are the second largest of all advertising media in terms of total dollar volume. ⊚ ⊚

true false

6) 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

7) Newspaper ad rates paid by general advertisers are, on average, 75 percent higher than those paid by local advertisers. ⊚ ⊚

true false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 8) More companies advertise ________ than with any other medium.

A) B) C) D) E)

on television online in newspapers in magazines on billboards

Of all media, which is the second most selective?

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A) B) C) D) E)

10)

television online newspapers direct mail magazines

Magazine ads can use longer and more detailed copy owing to magazines’

A) B) C) D) E)

bleed space. inserts. permanence. selectivity. reproduction quality

11) A magazine’s ________ fluctuates from issue to issue, particularly for magazines that rely heavily on retail or newsstand sales.

A) B) C) D)

12)

Many media buyers will only advertise in a magazine that

A) B) C) D)

13)

reach passive readership circulation readership

has readership over 500,000. audits its circulation numbers. accounts for pass-through readership. publishes more than 12 times per year.

What is the second highest revenue-generator for magazines?

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A) B) C) D)

advertisements individual sales subscriptions endorsements

14) Online advertising that takes on the look and feel of the surrounding content is called ________ advertising.

A) B) C) D) E)

15)

customized authentic native malleable incorporated

Which type of newspaper primarily focuses on local news, events, and sports?

A) B) C) D)

national daily weekly special audience

16) Which publication is the only remaining nationally syndicated Sunday newspaper supplement?

A) B) C) D) E)

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USA Weekend New York Times Weekend Parade Jubilation March

520

17) Which type of newspaper advertisements run in their own section, typically with headings for type of product, service, or offering?

A) B) C) D)

18)

Which of the following is an advantage of newspaper ads?

A) B) C) D)

19)

special ads display ads classified ads national ads

reproduction life span flexibility selectivity

Which of the following is disadvantage of newspaper advertising?

A) B) C) D)

flexibility clutter selectivity reader involvement

20) Which term refers to the rate charged by newspapers when they offer no discount for quantity or repeated ad buys?

A) general rate B) local rate C) flat rate D) combination rate

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A) B) C) D)

22) true?

5% 10% 15% 20%

Which of the following statements about newspapers as an advertising media vehicle is

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 a media vehicle to advertisers has drastically declined because of competition from the broadcast media.

23) One of the primary advertising media in terms of both ad revenue and number of advertisers is

A) B) C) D) E)

24)

broadcast television. radio. magazines. newspapers. direct mail.

Which of the following statements about magazines as an advertising medium is true?

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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)

Which of the following are the most frequent distribution schedules for magazines?

A) B) C) D) E)

26)

weekly, bi-weekly, and monthly weekly, monthly, and quarterly bi-weekly, monthly, and quarterly daily, weekly and monthly daily, weekly, and bi-weekly

Which of the following statements explains high-involvement media?

A) It has a high impact on the overall integrated marketing communication program. B) It attracts high advertising revenues to support their operations. C) It is the primary sources of entertainment apart from news and information. D) It requires consumers to expend some effort to process the information provided.

27) Which of the following statements about the role of magazines and newspapers as advertising media vehicles is true?

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A) Newspapers and magazines share similar characteristics in terms of benefits and limitations. B) Magazines and newspapers allow advertisers to present detailed information that readers can process at their 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)

What proportion of all magazine ads use color?

A) B) C) D) E)

29)

Which of the following statements is true of consumer magazines?

A) B) C) D) E)

30)

1/3 1/2 2/3 3/4 1/4

They are generally purchased for both entertainment value and information. They are typically known as niche magazines. They are primarily annual publications. They are only sold through sole distribution. They cannot be sold through circulation.

According to Standard Rate and Data Service (SRDS), magazines can be classified as

A) B) C) D) E)

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consumer, health care, and business publications. regional, national, and international publications. agrarian, industrial, and specialized publications. general, specialized, and niche publications. affective, behavioral, and cognitive publications.

524

31) According to the Standard Rate and Data Service (SDRS) classification of magazines, ________ magazines are bought by the general public for information and/or entertainment.

A) B) C) D) E)

32)

niche consumer business national industrial

Which of the following statements is true of consumer magazines?

A) B) C) D) E)

They are useful for reaching general consumers of services. They are published for a specific business or industry. They are sold only through circulation. They are also known as farm publications. 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) B) C) D) E)

34)

consumer magazine. trade magazine. farm publication. business publication. niche publication.

Marketers of tobacco products spend most of their media budget in magazines because

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A) B) C) D) E)

magazines specifically target consumers of tobacco products. they are prohibited from advertising in the broadcast media. magazines are a high-involvement advertising medium. they want to communicate customized information to magazine readers. 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 target market, Velocity should use

A) B) C) D) E)

regional editions of general-interest magazines. the sports section of national newspapers. regional editions of general sports magazines. regional editions of specialty magazines. 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) B) C) D) E)

Trade General-interest Business Cultural Special-interest

37) Health care publications targeting specific audiences such as dental, medical and surgical, nursing, biotechnological sciences, and hospital administration are classified as

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A) B) C) D) E)

38)

business publications. special-interest consumer magazines. trade magazines. general-interest consumer magazines. independent publications.

Farm publications are not classified with business publications because

A) B) C) D) E)

historically farms were not perceived as businesses. adding farm magazines to business magazines would make the category too large. farm magazines are a hybrid of consumer and business magazines. farming is considered a community service occupation. businesses do not have agricultural interests.

39) Business publications directed to wholesalers, dealers, distributors, and retailers are known as

A) B) C) D) E)

special-interest consumer magazines. craft magazines. general business magazines. trade magazines. networking magazines.

40) Blooms is a publication 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) B) C) D) E)

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craft trade professional industrial consumer-oriented

527

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) B) C) D) E)

general business trade professional industrial consumer-oriented

42) ________ magazines are a classification of business publications that are aimed at executives in all commercial activities.

A) B) C) D) E)

43)

General business Trade Professional Industrial Niche

Business publications are important to advertisers because they

A) are generally the only health care information providers. B) provide an effective way to reach consumers who are considered to be a part of niche markets. C) provide entertainment along with news and information to magazine readers. D) provide an efficient way of reaching the specific types of individuals who constitute their target market. E) 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?

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A) B) C) D) E)

national newspapers magazines local radio billboards local newspapers

45) A company that manufactures paintball equipment might prefer to advertise in specialized publications rather than in newspapers due to

A) B) C) D) E)

46)

Which of the following is a primary advantage of magazines?

A) B) C) D) E)

47)

the wider reach of specialized publications. the greater audience selectivity of specialized publications. fewer ads and less clutter in specialized publications. the higher degree of pass-along readership. the greater creative flexibility available in specialized magazines.

high selectivity low clutter level low lead time high reach large frequency

Magazines that are published for special-interest groups are offering

A) B) C) D) E)

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lower permanence. greater flexibility. greater selectivity. lower lead time. larger reach.

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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) B) C) D) E)

permanence. flexibility. demographic selectivity. geographic reach. reproduction.

49) Which of the following is considered a primary benefit derived from using magazines as an advertising medium?

A) B) C) D) E)

higher reproduction quality greater reach lower costs selective binding 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. This magazine offers marketers greater ________ selectivity.

A) B) C) D) E)

demographic psychographic lifestyle affective behavioral

51) Marketers for a fast-food restaurant want to achieve geographic selectivity in their magazine media schedule. To do so, they should advertise in

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A) B) C) D) E)

52)

Buying ad space in regional editions of national magazines

A) B) C) D) E)

53)

is no longer permissible due to recent anticompetition legislation. can reduce an advertiser’s cost per thousand to reach desired audiences. diminishes the value of pass-along readership. creates overlapping subscription data. can eradicate the problem of clutter.

Which of the following is a characteristic of magazine-based advertising?

A) B) C) D) E)

54)

magazines that target a particular area. special-interest farm publications. trade publications targeted at distributors and retailers. international editions of popular food magazines. general-interest business magazines.

greater creative flexibility poor reproduction quality limited selectivity lower costs impermanence

Gatefolds, bleed pages, inserts, and creative space buys are ways to increase the

A) B) C) D) E)

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cost efficiency of magazines. geographic flexibility of magazines. selectivity of magazines. creative appeal of magazine ads. selective binding ability of a magazine.

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55) A third page that folds out to create an extra-large advertising spread in a magazine is called

A) B) C) D) E)

a bleed page. a printacular. a gatefold. a stock card fold. an 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) B) C) D) E)

a bleed page. a printacular. a gatefold. a page manipulator. an overrun.

57) Magazine advertisements that extend to the end of a page rather than leaving a margin around the ad are called

A) B) C) D) E)

gatefolds. bleed pages. overscans. overruns. 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

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A) B) C) D) E)

a gatefold. a bleed page. a die cut. an overrun. 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” on it. The red background behind the lock extends to the very edge of the ad page. This ad is an example of

A) B) C) D) E)

a gatefold. a bleed page. a maximum-coverage ad. an overrun. a sticker.

60) Ads in magazines that use pop-ups, heavy inserts, talking ads, or other distractions to attract readers’ attention are sometimes referred to as

A) B) C) D) E)

multisensory ads. enhanced advertising pages. printaculars. fine-tuned sensory interceptors (FSIs). 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 ad is an illustration of a

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A) B) C) D) E)

62)

bleed page. gatefold. multisensory ad. printacular. run-of-page ad.

Critics argue that printaculars

A) material. B) C) D) E)

limit the creative flexibility of print media in terms of placement of advertising alter the appearance and feel of a magazine and a reader’s relationship to it. are not used enough to be considered a separate advertising category. result in horizontal promotional conflict among advertisers. 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-page ad space on three successive pages to advertise the winter clearance sale on various models of sewing machines at Raiment authorized dealers. Raiment is using ________ to attract readers’ attention.

A) B) C) D) E)

64)

a gatefold bleed pages a creative space buy an overrun a total-page ad

Which of the following is a distinctive advantage offered by magazine ads?

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A) B) C) D) E)

low lead time greater frequency higher reach long lifespan low costs

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. The way O’Brian uses this publication demonstrates which of the following advantages of magazines as an advertising medium?

A) B) C) D) E)

services permanence prestige creative flexibility geographic selectivity

66) CL Inc. runs a series of product ads in a popular magazine. The company believes that the magazine’s popularity and reputation 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) B) C) D) E)

67)

geographic selectivity creative flexibility prestige permanence costs

Which of the following statements is true of magazine advertising?

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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 statements about magazine ads is correct?

A) B) C) D) E)

69)

They create lower customer receptivity. They do not offer permanence. They offer a potential for gaining prestige. They offer poor reproduction quality. They generally cost less than newspaper ads.

Consumers are generally receptive to advertising in magazines because

A) decision. B) C) D) E)

ads provide additional information that may be useful in making a purchase ads in magazines are intrusive and cannot be ignored. magazines are a low-involvement advertising medium. magazines contain a limited number of ads, so clutter is not an issue. of its very short lead time, providing up-to-the-minute information.

70) Which statement best explains the reason that consumers are more receptive to magazine advertising than to television advertising?

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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 to identify which ad offers greater receptivity. In this scenario, Pluto is using

A) B) C) D) E)

a double run. a research run. a printacular. a split run. a bleed run.

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) B) C) D) E)

73)

split-run overrun gatefold bleed page day-after-recall

Which of the following statements is true of split runs?

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A) B) C) D) E)

74)

What are magazines doing to reduce lead times for ads in their publications?

A) B) C) D)

75)

They are also known as bleed pages. They reproduce images using mechanical printing. They are usually printed in alternate copies of a specific magazine. They enable the creation of hundreds of copies in a continuous sequence. They are generally considered less effective than selective binding.

using computer-based production methods hiring more advertising staff having clients develop their own ads limiting the choices of advertising formats

One consequence of the long lead time for magazine advertisements is

A) B) C) D)

fewer companies advertising in magazines. lack of responsiveness to current events. lack of consumer engagement. fewer advertising staff.

76) Marketers whose marketing plan calls for _________ will often advertise in magazines and other media, such as radio, television or online.

A) B) C) D)

high frequency broad reach selective marketing cost control

77) Which of the following are examples of special services offered by magazines to their advertisers?

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A) B) C) D)

78)

Which of the following is a disadvantage associated with advertising in magazines?

A) B) C) D) E)

79)

creative services market research account managers sales support

lack of permanence lack of prestige absence of consumer receptivity to ads limited reach and frequency creative inflexibility

Which of the following statements 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) B) C) D) E)

81)

is less expensive than personalized messaging. is considered to be an inefficient way to build frequency. is referred to as selective binding. is the most popular way to obtain greater reach. is known as split running.

Which of the following is a disadvantage inherent in advertising in magazines?

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A) B) C) D) E)

creative inflexibility lack of demographic selectivity poor reproduction quality long lead times low publication prestige

82) Which of the following is a disadvantage associated with magazines as an advertising medium?

A) B) C) D) E)

low receptivity to advertising by readers low demographic selectivity thin penetration of households reduced permanence and prestige 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) B) C) D) E)

84)

clutter. limited frequency. longer lead times. lower selectivity. low reproduction quality.

Which of the following statements is true about clutter in magazine advertising?

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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 statements is true of magazine advertising in relation to the problem of clutter?

A) B) C) D) E)

86)

Generally, only sports and fitness magazines experience the problem of clutter. Magazine publishers do not attempt to control the clutter problem. It is not as serious an issue for magazines as for radio or TV. The problem of clutter is usually solved with split runs. Typically, magazine readers are less tolerant toward clutter.

Media buyers primarily evaluate magazines on the basis of

A) the ability to offer specialized services such as personalized messages 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.

87) ________ is the number of magazine copies distributed to original subscribers or purchasers.

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A) B) C) D) E)

Primary circulation Total circulation Tangential readership Guaranteed circulation Pass-along circulation

88) ________ figures represent the number of individuals who receive a magazine publication through either subscription or store purchase.

A) B) C) D) E)

Selective-binding Lead-time Circulation Readership 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) B) C) D) E)

90)

ancillary circulation rates. a circulation verification system. pass-along circulation rate scale. a circulation rate base system. a rebate system.

The “50 percent rule” states that

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A) copies that sold for less than half of the basic price of a magazine cannot be counted as paid circulation. B) magazines that have a higher than 50–50 ratio between ads and content are not eligible to be counted as a paid circulation. C) copies are counted as non-paid circulation if they were sold at more than 50 percent of its initial cost estimate. D) copies sold at greater than 50 percent of the value of its production cost cannot be counted as paid circulation. E) 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 whom a publisher believes can influence a company’s purchases for products and services advertised in the publication. Such magazines are published on a ________ basis.

A) B) C) D) E)

primary circulation guaranteed circulation pass-along circulation principal-circulation controlled-circulation

92) To be eligible for Alliance for Audited Media (AAM) verification audits, a magazine must meet what criterion?

A) It must be published on a controlled-circulation basis. B) The magazine 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.

93)

Circulation verification services are important to media planners because

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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.

94) During her visit to a beauty salon, Lily browsed through Inner Beauty, a magazine dedicated to working women, while she was waiting at reception. She did not pay for the magazine and left it at the reception area where it was initially placed. This scenario is an illustration of

A) B) C) D) E)

primary readership. guaranteed readership. pass-along readership. total readership. principal readership.

95) Which of the following comparisons of 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 passalong 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 inhome readers.

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96)

The total audience, or readership, of a magazine can be calculated by

A) B) C) D) E)

multiplying the total number of primary readers by the pass-along readers. multiplying the total readership by the average pass-along readership number. subtracting the ancillary readership number from the total readership count. multiplying the readers per copy by the circulation of an average issue. subtracting the pass-along readership number from the total readership count.

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) B) C) D) E)

98)

Magazine advertising rates are primarily a function of

A) B) C) D) E)

99)

an ancillary reader. a pass-along subscriber. a primary reader. a secondary subscriber. a total reader.

selectivity. digital imaging. selective binding. circulation. pass-along readership.

Which of the following statements is true about the use of color in magazine advertising?

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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) B) C) D) E)

Cross-media organizations Magazine networks Publication verification networks Magazine blocks Print networks

101) Which of the following is not one of the ways magazine publishers are looking to improve their positions?

A) B) C) D) E)

102)

higher quality paper and ink stronger editorial platforms better circulation management cross-magazine and media deals database marketing

Which of the following statements is true of weekly newspapers?

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A) B) C) D) E)

103)

They do not focus on news and recent events. They typically originate in small towns or suburbs. They are used exclusively by national advertisers. They are printed on a weekly basis due to the large volume of news. They are also known as national newspapers.

National advertisers tend to avoid weekly newspapers because of

A) B) C) D) E)

their poor image. their high absolute cost. their duplicate circulation with daily newspapers. their broad geographic focus. 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) B) C) D) E)

Weekly National Sunday Special-audience Bimonthly

105) Finn’s Hallmark News, a weekly newspaper, specifically targets philatelists and contains material about philately, postal history, and other related information. Finn’s Hallmark News is a

A) B) C) D) E)

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trade newspaper. special-audience newspaper. demographic-oriented newspaper. newspaper supplement. regional newspaper.

547

106) ________ offer differentiated editorial content and are published for labor unions, professional organizations, industries, or hobbyists.

A) B) C) D) E)

107)

Trade newspapers Newspaper supplements Regional newspapers Special-audience newspapers Demographic-oriented newspapers

Newspapers targeted at various religious groups comprise a large class of

A) B) C) D) E)

gatefold papers. special-interest papers. syndicated newspaper supplements. national newspapers. consumer publications.

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) B) C) D) E)

109)

daily newspapers classifieds magazine supplements freestanding inserts special-audience newspapers

Which of the following statements is true about newspaper supplements?

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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 fourcolor 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 includes illustrations, headlines, white space, and other visual devices in addition to the copy text.

A) B) C) D) E)

111)

Display advertising Classified Preprinted insert Bleed ads Special advertising

Which of the following statements 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 are the three major categories of ________ advertising.

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A) B) C) D) E)

local display special insert classified retail

113) Mars Inc. printed 1,200 brochures to distribute using a national newspaper. The brochures were handed over to the newspaper office and distributed accordingly. This scenario depicts the use of

A) B) C) D) E)

114)

Which of the following statements is true of newspapers as an advertising medium?

A) B) C) D) E)

115)

display advertising. classified advertising. a preprinted insert. a printacular. gatefold advertising.

They do not enable marketers to use geographic selectivity. They are generally considered to have better reproductive quality than magazines. They offer high market penetration and coverage. They offer limited flexibility to advertisers. They typically have a long lifespan.

Which of the following statements is true of newspaper advertisements?

A) B) C) D) E)

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They do not require the use of creative options. They are highly expensive to create. They can be reproduced quickly. They are considered inflexible during production. They typically offer limited selectivity.

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116)

Newspapers generally offer more ________ than any other medium except direct mail.

A) B) C) D) E)

digital imaging geographic selectivity color advertising permanence 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) B) C) D) E)

119)

They offer several valuable specialized services to advertisers. They offer better reproductive quality than magazines. They generally have a long lifespan. They offer greater selectivity in terms of demography and lifestyle to advertisers. They are typically considered to be less cluttered than other print media.

The coarse paper stock used in printing most newspapers leads to

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A) B) C) D) E)

their limited pass-along readership. a lack of reader interest and involvement. the presence of extensive clutter. a lack of geographic selectivity. poor reproduction quality.

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) B) C) D) E)

121)

lack of geographic selectivity lack of demographic selectivity high cost of reproduction limitations in pass-along readership lack of reader involvement

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, and half-page spreads. C) Unlike magazines, newspaper ads 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

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A) B) C) D) E)

break through the clutter typically found in newspapers. create high reproduction-quality ads. make the newspaper accountable for sales generated by the ad. reduce the overall cost of newspaper advertising. 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. The market area within the city is referred to as the city zone, and the market area in the suburbs whose residents trade with merchants in the city zone is referred to as the

A) B) C) D) E)

local zone. retail trading zone. demarcated zone. peripheral zone. special category zone.

124) National advertisers in the automotive, tobacco, and pharmaceutical fields are charged ________ for newspaper ads.

A) B) C) D) E)

retail advertising rates general advertising rates local advertising rates flat rates NNN rates

125) _________ apply to newspaper advertisers that conduct business or sell goods or services within the DMA.

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A) B) C) D) E)

126)

General advertising rates Flat rates Retail or local advertising rates Preferred-position rates Combination rates

Which of the following statements is true of the standard advertising unit (SAU) 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) B) C) D) E)

128)

Preferred-position rates Flat rates Local advertising rates General advertising rates Combination rates

When a newspaper offers a variety of discount options, it is using a(n) _____ structure.

A) B) C) D) E)

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ROP inch rate open rate flat rate SAU rate

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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) B) C) D) E)

preferred-position open flat run-of-paper (ROP) 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) B) C) D) E)

flat run-of-paper preferred-position agate SAU

131) Newspapers are more focused on ________ than on spending large sums of money to generate new subscribers.

A) B) C) D)

advertising revenue cost reduction retaining current subscribers increasing service area

132) Surveys show that the percentage of women who read a newspaper on a typical day recently declined to ________ percent.

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A) B) C) D) E)

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Answer Key Test name: chapter 12 1) FALSE 2) FALSE 3) FALSE 4) TRUE 5) FALSE 6) FALSE 7) TRUE 8) D 9) E 10) C 11) C 12) B 13) C 14) C 15) C 16) A 17) C 18) C 19) B 20) C 21) B 22) B 23) D 24) B 25) A 26) D Version 1

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27) B 28) C 29) A 30) A 31) B 32) A 33) A 34) B 35) D 36) E 37) A 38) A 39) D 40) B 41) D 42) A 43) D 44) B 45) B 46) A 47) C 48) C 49) A 50) A 51) A 52) B 53) A 54) D 55) C 56) C Version 1

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57) B 58) B 59) B 60) C 61) D 62) B 63) C 64) D 65) B 66) C 67) C 68) C 69) A 70) B 71) D 72) A 73) C 74) A 75) A 76) B 77) B 78) D 79) C 80) B 81) D 82) C 83) A 84) C 85) C 86) C Version 1

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87) A 88) C 89) D 90) A 91) E 92) C 93) A 94) C 95) A 96) D 97) C 98) D 99) C 100) B 101) A 102) B 103) C 104) B 105) B 106) D 107) B 108) C 109) C 110) A 111) A 112) D 113) C 114) C 115) C 116) B Version 1

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117) D 118) A 119) E 120) B 121) D 122) A 123) B 124) B 125) C 126) B 127) E 128) D 129) D 130) C 131) A 132) A Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) Support media are also known as measured media because they are easy to measure. ⊚ ⊚

true false

2) Out-of-home advertising is one of the newest methods of advertising that has grown with the development of new technology. ⊚ ⊚

true false

3) Increased numbers of women in the work force have contributed to the increased popularity of transit media.

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⊚ ⊚

true false

4) 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

5) Mobile billboard ads enjoy high levels of recall and readership, leading to increased sales. ⊚ ⊚

true false

6) A disadvantage of transit advertising is its inability to provide exposure to a large number of people. ⊚ ⊚

true false

7) A store in Kentucky that offers a 20 percent discount to shoppers who have the store’s name tattooed in a visible location on the body is using nontraditional support media. ⊚ ⊚

true false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 8) Start-up Services is a small entrepreneur coaching enterprise. With a limited advertising budget that does not afford the purchase of primary media, the advertising program is solely dependent on

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A) B) C) D) E)

newspaper media. journal ads. television media. support media. radio ads.

9) Ads placed on the backs of envelopes that contain airplane tickets and on banners pulled by planes that fly over sports arenas are examples of

A) B) C) D) E)

support media. direct-response media. indirect communications. support media. category ads.

10) ________ 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) B) C) D) E)

Advertising Direct response Traditional Sales promotion Support

11) Media used to reinforce communications messages that may have been received from other forms of advertising are called

A) B) C) D) E)

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support media. source media. indirect communications. accessory advertising. category ads.

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12)

Support media can be broadly categorized into

A) B) C) D) E)

outdoor media and transit media. nontraditional media and below-the-line support media. outdoor media and in-store media. traditional and nontraditional support media. aerial media and ambient media.

13) What combination of out-of-home advertising constitutes the majority of outdoor billings?

A) B) C) D) E)

street furniture and buses vinyl-wrapped posters and wall murals billboards and street furniture cinema and billboards wrapped vehicles and billboards

14) Looking at the overall investment, aerial advertising is useful for reaching specific target markets and ________ in absolute terms.

A) B) C) D) E)

costly expensive not expensive not cheap cut-rate

15) The CEO of Start-up Services has placed an ad about the small entrepreneur coaching enterprise on her vehicle. This form of support media is an example of

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A) B) C) D) E)

exterior place-based media. an outside poster. a terminal poster. specialty advertising. a mobile billboard.

16) Almost any size company can afford a mobile billboard, whose cost depends on the mobile board company’s fees and the

A) B) C) D) E)

17)

cost of fuel. area. use of posters. use of specialty colors. advertising message.

Shopping carts fitted with signage is an example of

A) B) C) D) E)

advertising appeal. digital out of home media. brand identity media. transit media. in-store media.

18) The advertising medium comprised of free items requiring no purchase or contribution is called

A) B) C) D) E)

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advertising implements. advertising give-aways. advertising specialties. advertising favors. advertising tools.

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19) Promotional products marketing can work for companies of any size to meet a variety of advertising objectives. The only real limit is their

A) B) C) D) E)

advertising appeal. imagination. brand identity. budget. business plan.

20) With the goal of reaching a broader audience, the CEO of Start-up Services has printed business card-size calendars and pens to distribute at the next conference exposition. She wants to provide something that will be with the potential client over time for

A) B) C) D) E)

advertising appeal. repeat business. brand identity. brand exposure. repeat exposure.

21) ________ media include billboards, street furniture, alternative media, and transit, as well as specific forms of radio.

A) B) C) D) E)

Radio advertising Aerial advertising Buzz advertising Multilevel advertising Out-of-home advertising

22) The ________ categorizes billboards, street furniture, alternative media, transit, and specific forms of radio as out-of-home advertising.

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A) B) C) D) E)

23)

Of all out-of-home media, ________ advertising enjoys the highest outdoor billings.

A) B) C) D) E)

24)

Traffic Audit Bureau (TAB) Outdoor Advertising Association of America (OAAA) Competitive outdoor media report American Public Transportation Association (APTA) Point of Purchase Advertising Institute

transit blimp airport billboard in-store

Which of the following statements 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.

25) Which of the following pieces of federal legislation resulted in the ban on interstate billboard advertising?

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A) B) C) D) E)

26)

A major reason for the continued success of outdoor advertising is its

A) B) C) D) E)

27)

ability to communicate complex messages. low cost. ability to eliminate waste coverage. ability to remain innovative through technology. ability to provide extremely accurate measures of the medium’s reach.

Skywriting is a form of

A) B) C) D) E)

28)

Fair Packaging and Labeling Act (1966) Wheeler-Lea Act (1938) Highway Beautification Act of 1965 National Environmental Policy Act (1969) Consumer Product Safety Act (1972)

billboard advertising. transit advertising. digital advertising. blimp advertising. aerial advertising.

Video advertising, digital billboards, and place-based advertising are forms of

A) B) C) D) E)

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aerial advertising. television advertising. magazine advertising. digital out-of-home media. digital network advertising.

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29) 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) B) C) D) E)

guerrilla marketing. aerial advertising. specialty advertising. viral marketing. network advertising.

30) During a basketball game, Brendon sees an advertisement for “Swift” running shoes on a huge digital screen at Citygate Sports Arena. This ad is an example of

A) B) C) D) E)

aerial advertising. specialty advertising. a video advertising network. network advertising. a digital mobile billboard.

31) Santander Bank did a neighborhood takeover in Boston, Massachusetts, which included advertising on bus shelters and kiosks. These are examples of

A) B) C) D) E)

street furniture. billboards. video advertising networks. network advertising. digital mobile billboards.

32) Britney visits a mall and notices an advertisement for Auburn Beauty shampoo on a large LCD screen. This ad is an example of

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A) B) C) D) E)

a digital billboard. an advertising specialty. an aerial advertisement. a mnemonic. a mobile billboard.

33) ________ include(s) smaller signs that appear in restrooms, stairs, personal vehicles, and on specialty items.

A) B) C) D) E)

Mobile billboards Place-based advertising Transit advertising Aerial advertising Digital billboards

34) During a college football match, a giant blimp emblazoned with the slogan, “Entreat Sandwiches—A treat for your taste buds” is on display for the spectators. This is an example of

A) B) C) D) E)

transit advertising. mobile advertising. digital advertising. aerial advertising. specialty advertising.

35) During the opening ceremony of a national skateboarding championship at Harmon Beach, California, a hot air balloon with an advertisement for Fizzy soda is spotted by the spectators. This ad is an example of

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A) B) C) D) E)

36)

aerial advertising. transit advertising. mobile advertising. digital advertising. specialty advertising.

Which of the following statements is true about aerial advertising?

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.

37) Jimmy’s, a grocery store, advertises itself by painting its name, logo, and abstract images of its products on the sides of its delivery vehicles. This is an example of

A) B) C) D) E)

transit advertising. mobile billboard advertising. buzz advertising. digital advertising. in-store advertising.

38) Ads on small boards that are mounted on trailers and driven around or parked in target geographic areas are known as

A) B) C) D) E)

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aerial ads. mobile billboards. advertising specialties. ambient ads. pop-ups.

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39)

The cost of mobile billboards depends on

A) B) C) D) E)

the number of clicks. the number of recalls. sales of the product advertised. the geographic area advertised in. the speed of the billboard.

40) A City of Boston public transit bus was painted to look like a large loaf of Galaxy Bread. This bus is an example of

A) B) C) D) E)

bulletin advertising. a mobile billboard. free-form advertising. a printacular. aerial advertising.

41) While shopping at a local retail store, Jenna sees an ad for Aileen sunscreen lotion on the back of her shopping cart. This ad is an example of

A) B) C) D) E)

aerial advertising. transit advertising. a mobile billboard. in-store media. interactive media.

42) ________ targets the millions of people who are exposed to commercial transportation facilities, including buses, taxis, commuter trains, trolleys, airplanes, and subways.

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A) B) C) D) E)

Aerial advertising Transit advertising In-store advertising Specialty advertising Promotional products marketing

43) While commuting by a local bus, Trevor notices an ad for Tantalize Sandwiches above his seat. This ad is an example of

A) B) C) D) E)

transit advertising. an out-office media outlet. aerial advertising. a mobile billboard. specialty advertising.

44) 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) B) C) D) E)

nationally televised ads in-store media local newspaper coupon supplements parking meter advertisements billboards

45) While driving, Janice notices an animated electronic billboard ad for Zesty Soda on top of a passing taxicab. This is an example of

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A) B) C) D) E)

46)

An ad in the subway for a local Mexican restaurant is an example of

A) B) C) D) E)

47)

specialty advertising. stationary advertising. transit advertising. aerial advertising. free-form advertising.

a sales promotion. specialty advertising. transit advertising. aerial advertising. free-form advertising.

There has been a renewed interest in transit advertising over the last few years due to

A) B) C) D) E)

the increased number of women in the work force. the development of Internet advertising. the ban on billboard advertisements for cigarettes. an increase in the number of consumers who are over 60. a change in entertainment venues.

48) Kevin sees an ad for Crixus Car Rental on a luggage trolley at the airport. The ad is an example of

A) B) C) D) E)

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a sales promotion. stationary advertising. transit advertising. aerial advertising. free-form advertising.

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49) While traveling on a commuter bus, Lauren notices an ad for Flare deodorant above her seat. This is an example of ________ used in transit advertising.

A) B) C) D) E)

an outside poster an aerial banner a spectacular an inside card a terminal poster

50) 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) B) C) D) E)

aerial ads. in-store ads. terminal posters. inside cards. mobile ads.

51) While walking on the street, Carlos sees an animated electronic billboard in Spanish for Amado home appliances on top of a taxicab. This ad is an example of

A) B) C) D) E)

a terminal transit poster. an inside card. an outside poster. an interactive billboard. an aerial ad.

52) ________ are a form of transit advertising that appear on the sides, backs, and/or roofs of buses, taxis, trains, and subway and trolley cars.

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A) B) C) D) E)

Inside cards Aerial ads Specialty ads Terminal posters Outside posters

53) 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) B) C) D) E)

specialty transit aerial network broadcast

54) 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) B) C) D) E)

transit advertising. aerial advertising. buzz marketing. branded entertainment. above-the-line advertising.

55) 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, Fervor offers customers these items as complimentary gifts. These items are referred to as

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A) B) C) D) E)

ambient products. premiums. advertising specialties. company benefits. support media products.

56) 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) B) C) D) E)

buzz marketing. guerrilla marketing. viral marketing. promotional products marketing. above-the-line media marketing.

57) Ether Inc., an electronics manufacturer, offers T-shirts with the company’s logo on them free of charge to its customers. Ether believes that the T-shirts will help promote the company’s products and attract more customers. This is an example of

A) B) C) D) E)

in-store advertising. specialty advertising. public relations enhancement. guerrilla marketing. product placement.

58) ________ is a medium of advertising, sales promotion, and motivational communication employing imprinted, useful, or decorative products that are distributed free.

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A) B) C) D) E)

Buzz marketing Specialty advertising Synchro marketing Guerrilla marketing Direct-response advertising

59) Products such as free pens, calendars, and coffee mugs featuring a company’s name and used as promotional tools are referred to as

A) B) C) D) E)

premiums. advertising specialties. sales promotions. heuristics. mnemonics.

60) 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) B) C) D) E)

advertising specialties. product placements. premiums. heuristics. mnemonics.

61) If the objective is to achieve high levels of retention and make the communication a frequent reminder of a company’s name and message, which of the following support media should be employed?

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A) B) C) D) E)

mobile billboards product placements advertising specialties in-flight advertising Yellow Pages

62) Cumulus Corp. wants to generate goodwill among its customers. It aims to make 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) B) C) D) E)

63)

multilevel marketing movie theater advertising promotional products marketing aerial advertising guerrilla marketing

Which of the following is a disadvantage of promotional products marketing?

A) B) C) D) E)

low level of frequency lack of audience selectivity lack of feedback channels lack of flexibility possibility of market saturation

64) A major advantage of outdoor advertising is it is one of the more ________ communication forms.

A) B) C) D) E)

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pervasive persuasive penetrated pricy printed

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65) Controversy has risen over the use of transit cards in subway systems that used to advertise food and sundries and are now replaced with

A) B) C) D) E)

recruitment posters. tobacco ads. vape product ads. public service announcements. alcohol ads.

66) Compared to television, magazines, newspapers, and radio advertising, the CPM of outdoor advertising generally costs

A) B) C) D) E)

extra. more. less. the same. over average.

67) The CEO of Start-up Services is considering sharing ad space on street furniture with a realtor colleague who graduated from her entrepreneurial program. The colleague warned her that the ads’ exposure may lead to

A) B) C) D) E)

low waste coverage. lasting durability. wearout. low awareness. no effect on sales.

68) Investigating advertising options, the CEO of Start-up Services is looking at miscellaneous alternative media—forms that have not been traditionally used for advertising. She has learned that the relative costs for alternative media are not yet that

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A) B) C) D) E)

69)

Which of the following is an advantage of outdoor advertising?

A) B) C) D) E)

70)

ability to communicate complex messages low cost elimination of waste coverage geographic flexibility limited exposure

Which of the following is an advantage of outdoor advertising?

A) B) C) D) E)

71) is to

high. low. reasonable. intermittent. predictable.

no waste coverage ease of measurement of audience size wide coverage of local markets low costs slow wearout

Outdoor advertising would best be suited for a company whose communication objective

A) B) C) D) E)

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attain brand awareness. explain a complex product advantage. create an attitude change. stimulate product trial for a new gadget. expand exposure time of its advertising messages.

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72) Which of the following support media provides advertisers with wide coverage of local markets and high levels of frequency?

A) B) C) D) E)

73)

Which of the following is a disadvantage of transit advertising?

A) B) C) D) E)

74)

low frequency of exposure high relative costs varying mood of the audience limited exposure time to an ad immediate results

Which of the following is an advantage of indoor transit advertising?

A) B) C) D) E)

75)

outdoor advertising specialty advertising print media in-store advertising in-flight advertising

long length of exposure elimination of waste coverage no copyright limitations accurate measurement of audience mood selectivity based on audience lifestyle

Which of the following is an advantage of promotional products marketing?

A) B) C) D) E)

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shorter lead time as compared to other media wider audience reach elimination of market saturation consistent portrayal of strong company image high recall of advertiser’s name and message

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76)

Which of the following statements is true of movie theater advertising?

A) B) C) D) E)

Absolute and relative costs per exposure are quite high in movie theater advertising. Movie theater ads offer low emotional attachment to moviegoers. Movie theater advertising does not provide demographic segmentation. Advertising in movie theaters offers lack of clutter as the number of ads is limited. CPM in movie theater advertising is lower than that of any other media.

77) 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 The Vow and Perfect Sense. 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) B) C) D) E)

78)

lack of advertising clutter lower absolute costs demographic segmentation lower relative costs advertising proximity

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.

79)

Which of the following is a disadvantage associated with movie theater advertising?

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A) B) C) D) E)

lack of emotional attachment low audience exposure possible irritation to audience extensive clutter limited segmentation

80) Which of the following statements correctly compares the cost per thousand (CPM) for movie theater advertising with that of other media?

A) B) C) D) E)

The CPM for movie theater advertising is lower than that for magazines. Movie ads have a lower CPM than radio ads, but higher than newspaper ads. When compared to other advertising media, the CPM is quite high for movie ads. Unlike print media, the CPM is quite low for movie ads. The CPM for movie theater advertising is equal to that of other forms of advertising

media.

81) 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) B) C) D) E)

Verizon AT&T Nielsen Brandchannel Flickr

82) Which of the following reports provides information on major advertisers’ expenditures on outdoor media?

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A) B) C) D) E)

Experian Simmons Market Research Bureau Point of Purchase Advertising International Geopath The American Public Transportation Association Competitive Media Reports

83) 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.

84) Anyone with an Android phone can scan an ad and see additional information overlaid in a virtual layer. For example, an ad for mangos can be scanned and a recipe will appear. This technology is called

A) B) C) D) E)

85)

artificial intelligence. augmented reality. crafted reality. virtual reality. augmented intelligence.

What is an advantage of using promotional product marketing?

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A) B) C) D) E)

improved image market saturation high recall short lead time great reach

86) Advertising specialties can be used for recognizing employees. What is a disadvantage of promotional product marketing?

A) B) C) D) E)

low selectivity loss of goodwill frequency of exposure limited flexibility cheapened image

87) Which of the following does not use digital billboards with a camera inside to recognize audience characteristics?

A) B) C) D) E)

88)

Intel NEC Kraft Foods adidas Electronic Privacy Information Center

________ is the primary trade association of the out-of-home advertising industry.

A) B) C) D) E)

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Traffic Audio Bureau Competitive Media Reports Nielsen Media Research Experian Simmons Market Research Bureau Outdoor Advertising Association of America

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89)

Another name for alternative media is

A) B) C) D) E)

functional communications. nontraditional media. measured media. above-the-line media. nonstructured communications.

90) ________ is a nontraditional form of advertising that blends marketing and recreation through television, film, music talent, and technology.

A) B) C) D) E)

Flighting Branded entertainment Direct response promotion Publicity Sales promotion

91) 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) B) C) D) E)

product placement. specialty advertising. promotional products marketing. guerrilla marketing. movie theater advertising.

92) An agreement that states that Rochelle brand cosmetics will pay a fee to have its products prominently featured in 20 episodes of the soap opera Proclivity is an example of

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A) B) C) D) E)

product placement. specialty advertising. promotional products marketing. guerrilla marketing. buzz advertising.

93) 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

94) 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, the Whizz Soda logo was prominently visible in the top left corner of the television screen. This video is an example of

A) B) C) D) E)

guerilla advertising. advertainment. specialty advertising. ambient advertising. publicity.

95) The creation of video and/or music content by an advertiser in an attempt to engage viewers while advertising its product is known as

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A) B) C) D) E)

video on demand. digital advertising. product integration. buzz marketing. advertainment.

96) ________ are specialized content programs that are developed by advertisers and provided online and to cable operators for free.

A) B) C) D) E)

97)

With reference to advertising media, ________ create(s) the strongest source association.

A) B) C) D) E)

98)

Videos on demand Digital ads Advertising specialties Mnemonics Advertainments

product placements in-flight advertising promotional products marketing transit advertising spectaculars

A company promoting its product through product placements in movies benefits from

A) B) C) D) E)

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potentially high exposure. low absolute cost. broadened appeal. lack of clutter. strong control over messages.

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99)

Which of the following statements is true about product placement advertising?

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.

100)

Which of the following is a disadvantage associated with branded entertainment?

A) B) C) D) E)

high absolute cost low exposure number poor recall ineffective reach weakened brand image

101) 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) B) C) D) E)

guerrilla marketing. specialty advertising. product placements. product linings. transit advertising.

102) The rapid growth of branded entertainment tie-ins has led to an overwhelming number of product placements and integrations, which will eventually result in

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A) B) C) D) E)

103)

Which of the following factors has contributed to the growth of guerrilla marketing?

A) B) C) D) E)

104)

advances in technology changing social attitude reduced government regulations increased inflation increased deflation

Which of the following is the best example of place-based media?

A) B) C) D) E)

105)

positive audience reactions. consistently high product appeal. extended exposure of products to the audience. low relative and absolute costs. clutter and loss of effectiveness.

movie ads on popcorn bags televisions in classrooms interactive kiosks Internet banners mobile billboards

The strategy behind place-based media is to

A) B) C) D) attention. E)

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bring an advertising medium to a consumer. use the place element of the marketing mix to impact advertising. use mobile billboards. create a media vehicle that leads in its ability to attract and retain consumer provide places that are free of clutter.

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Answer Key Test name: chapter 13 1) FALSE 2) FALSE 3) TRUE 4) TRUE 5) TRUE 6) FALSE 7) TRUE 8) D 9) A 10) E 11) A 12) D 13) C 14) C 15) E 16) B 17) E 18) C 19) B 20) E 21) E 22) B 23) D 24) E 25) C 26) D Version 1

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27) E 28) D 29) B 30) C 31) A 32) A 33) B 34) D 35) A 36) B 37) B 38) B 39) D 40) B 41) D 42) B 43) A 44) B 45) C 46) C 47) A 48) C 49) D 50) D 51) C 52) E 53) B 54) A 55) C 56) D Version 1

593

57) B 58) B 59) B 60) A 61) C 62) C 63) E 64) A 65) D 66) C 67) C 68) A 69) D 70) C 71) A 72) A 73) C 74) A 75) E 76) D 77) C 78) B 79) C 80) C 81) B 82) E 83) E 84) B 85) C 86) E Version 1

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87) E 88) E 89) B 90) B 91) A 92) A 93) D 94) B 95) E 96) A 97) A 98) A 99) B 100) A 101) C 102) E 103) A 104) B 105) A Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) A major factor contributing to the success of direct marketing is that so many Americans are now “money-rich and time-poor.” ⊚ ⊚

true false

Adding a promotional product to a direct mailer increases response rates. ⊚ ⊚

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true false

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A company can use direct marketing to build a favorable image. ⊚ ⊚

true false

4) When Nordstrom calls existing customers to notify them of a special gift with purchase, they are combining direct marketing with sales promotions. ⊚ ⊚

true false

Direct marketing is typically restricted to small companies seeking business. ⊚ ⊚

true false

6) 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

7) By running the same ad on different stations, a direct marketer can determine the relative effectiveness of a medium itself. ⊚ ⊚

true false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 8) Direct mail, telemarketing, interactive TV, print, and the Internet are all

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A) B) C) D)

direct selling. direct marketing. direct-response media. direct advertising.

9) If an advertisement gets the potential buyers to perform an action, such as taking a test drive, the advertisement has solicited

A) B) C) D)

10)

buyer involvement. a behavioral response. sales revenue. targeted messaging.

Which of the following is part of the promotional mix?

A) B) C) D)

customer profile direct-marketing activity sales promotion competitive research

11) ________ is a form of marketing in which organizations communicate directly with customers.

A) B) C) D)

12)

Direct response Direct marketing Direct advertising Direct selling

As part of the IMC, direct marketing can be combined with which of the following?

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A) B) C) D)

13)

Which of the following is a method of personal selling used to generate sales?

A) B) C) D)

14)

customer profile public relations copyediting strategy

direct mail radio spots party plans intermittent selling

For-profit companies often use telemarketing for which of the following?

A) B) C) D)

competitive intelligence screening potential clients increasing the salesforce product market research

15) ABC Company is launching a new program in Indianapolis, IN. The program is designed for middle-aged parents who are taking care of both their own children and their parents. ABC is conducting a direct-mail marketing campaign to get those in their target market to call for an appointment. ABC is

A) B) C) D)

contributing to clutter. trying to obtain a behavioral response. leverage direct selling. in an overuse situation.

16) The two-step approach to direct marketing essentially relies on ________ medium(s) to generate a sales response.

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A) B) C) D)

1 2 2 or more 0

17) In the two-step approach to direct marketing, the first effort ________ and the second effort ________.

A) B) C) D)

18)

In a direct mail campaign, what is one of the biggest keys to success?

A) B) C) D)

19)

the product the mailing list the day of the week the mail is received the advertising company

Direct mail is often called

A) B) C) D)

20)

screens, generates response generates response, screens screens, qualifies qualifies, screens

junk mail. trash mail. garbage mail. solicited mail.

Which of the following is a disadvantage associated with direct marketing?

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A) B) C) D)

21)

Direct marketing allows marketers to test the ________ of an advertisement or campaign.

A) B) C) D)

22)

likeability effectiveness clutter overuse

Direct marketing

A) B) C) D) E)

23)

selectivity waste coverage cost compared to online frequency

is synonymous with word-of-mouth marketing. seeks the same objectives as personal selling strategies in an IMC plan. is one of the slowest growing forms of promotion in terms of dollar expenditures. is a valuable tool in the integrated communications program. cannot be combined with other forms of promotional media.

Unlike traditional marketing, the typical goal of direct marketing is to

A) B) C) D) E)

create brand image. generate an immediate behavioral response. utilize telephone communication exclusively. create awareness. 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.

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A) B) C) D) E)

25)

Sales promotion Word-of-mouth marketing Synchro marketing Direct marketing Publicity

The customer response to direct marketing can take the form of

A) B) C) D) E)

inquiries. product diversification. product segmentation. sales promotions. push promotions.

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) B) C) D) E)

27)

Trade advertising Publicity Public relations Direct marketing Synchro marketing

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.

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28)

Which of the following is an example of direct-response media?

A) B) C) D) E)

29)

billboards place-based media the Internet product placement guerrilla media

________ are the tools by which direct marketers implement the communication process.

A) B) C) D) E)

Directional pull strategies Sweepstakes Direct-response media Directional push strategies Direct encoders

30) Which of the following events is considered one of the major impetuses behind the growth of direct marketing?

A) B) C) D) E)

31) the

increase in the number of working women invention of the printing press development and expansion of the U.S. Postal Service development of multinational companies and international markets law that mandates public education

One of the reasons for the recent, rapid growth of direct marketing in American society is

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A) fact that the United States has moved from an industrialized nation to a service nation. B) C) D) E)

32)

increase in the number of hours individuals spend watching television. nonproliferation of cellular phones. increased use of consumer credit cards. development of four-color printing presses.

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 to enable readers to obtain further information. This ad is an example of combining direct marketing with

A) B) C) D) E)

trade promotions. public relations. advertising. personal selling. consumer promotions.

34) A direct-mail piece for a Vesta Scooters offers a $50 Visa gift card for anyone who test drives a scooter. This mailer is an example of combining direct marketing with

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A) B) C) D) E)

public relations. advertising. personal selling. sales promotion. support media.

35) A radio ad for Good Doggos announced an upcoming sale on spring leashes for dogs so that owners can be prepared for walking their dogs in warmer weather. This ad is combining direct marketing with

A) B) C) D) E)

advertising. sales promotion. publicity. public relations. personal selling.

36) Joe receives print ads from Sally’s Smells that feature a scratch-and-sniff of its newest candle. Which of the following combinations of promotional media is Sally’s using?

A) B) C) D) E)

advertising and sales promotion direct marketing and advertising sales promotion and public relations direct marketing and sales promotion public relations and support media

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

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A) B) C) D) E)

support media with public relations. sales promotion with support media. personal selling with direct marketing. advertising with personal selling. 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) B) C) D) E)

trade promotions. public relations. advertising. personal selling. consumer promotion.

39) Tristan Inc., a manufacturer of consumer appliances, engages in social responsibility activities. To solicit funds for charitable organizations, it uses telemarketing to contact its highincome, upscale customers and ask them to make donations. Tristan is using a combination of

A) B) C) D) E)

40)

publicity and public relations. direct marketing and public relations. direct marketing and personal selling. advertising and support media. personal selling and publicity.

Telemarketing and direct selling are two methods of ________ used to generate sales.

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A) B) C) D) E)

41)

public relations sales promotion infomercials telemarketing advertising specialties

A long commercial that is designed to fit into a 30- or 60-minute time slot is

A) B) C) D) E)

an infomercial. a sales promotion. direct selling. broadcast media. a television spot.

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) B) C) D) E)

advertising and sales promotion advertising and direct marketing sales promotion and direct marketing sales promotion and public relations 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) B) C) D) E)

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publicity and public relations. advertising and personal selling. direct marketing with sales promotion. support media and advertising. direct marketing and personal selling.

606

44)

Which of the following statements 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, an automobile dealer, 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) B) C) D) E)

advertising. personal selling. public relations. sales promotions. 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 will be automatically registered to win $10,000 in a customer appreciation contest. This is an example of combining direct marketing with

A) B) C) D) E)

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sales promotion. public relations. advertising. personal selling. 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) B) C) D) E)

48) is to

The most common direct-marketing objective that nonprofit organizations typically seek

A) B) C) D) E)

49)

elicit a behavioral response. reduce source derogations. generate goodwill. reduce postpurchase dissonance. solicit donations.

Which of the following is an objective of direct marketing?

A) B) C) D) E)

50)

personal selling. support media. place-based media. product placement. advertising.

to make use of celebrity endorsements to maintain customer satisfaction to engage in social responsibility initiatives to make innovative products to increase market diversification

To successfully implement direct-marketing programs, a company must

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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) B) C) D) E)

9 12 17 19 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 commercial is an example of using the ________ approach of direct marketing.

A) B) C) D) E)

two-step group one-to-one one-step three-step

53) In the ________ approach of direct marketing, a medium is used directly to obtain an order.

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A) B) C) D) E)

three-step one-to-many indirect one-step 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) B) C) D) E)

one-step two-step one-to-one indirect telemarketing

55) The goal of the ________ approach of direct marketing is to generate an immediate sale when an ad is shown.

A) B) C) D) E)

two-step one-step RFM scoring indirect 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.

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A) B) C) D) E)

two-step switch-and-bait RFM scoring indirect 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) B) C) D) E)

58)

generates the response. creates brand awareness. reduces the postpurchase dissonance. increases source bolsters. creates interest in a product.

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

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

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A) B) C) D) E)

outbound telemarketing. video texting. the one-step approach. the two-step approach. 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 infomercial is an example of

A) B) C) D) E)

the party plan approach to direct marketing. the two-step approach to direct marketing. the one-step approach to direct marketing. repetitive person-to-person selling. 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) B) C) D) E)

two-step outbound buzz one-step bullseye

62) In direct-marketing situations, when it is necessary to screen or qualify potential buyers, it is advisable to use

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A) B) C) D) E)

63)

the two-step approach. the one-step approach. direct mail rather than telemarketing. direct-response television. SMRB’s data on direct-marketing purchasers.

The two-step approach to direct marketing

A) B) C) D) E)

urges customers to make an immediate purchase. uses the first effort to screen potential buyers. is commonly found in direct sales. is typically followed by a sweepstakes contest. is similar to missionary selling.

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) B) C) D) E)

sweeps marketing. direct marketing in combination with support media. specialty advertising. the one-step approach to direct marketing. the two-step approach to direct marketing.

65) Jason receives a call from a sales representative of Bell Chime Inc., a manufacturer of inflatable sofa beds. When Jason shows an interest in purchasing a 5-in-1 inflatable sofa bed, the sales representative urges Jason to come over to the company’s retail outlet. Bell Chime is utilizing

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A) B) C) D) E)

66)

Which of the following statements is true of direct mail?

A) B) C) D) E)

67)

a buzz approach to personal selling. repetitive person-to-person selling. specialty advertising. the one-step approach to direct marketing. the two-step approach to direct marketing.

Direct mail is often called “treasure mail”—the solicited mail one receives. Direct mail has been rendered ineffective with the advent of the Internet. Direct mail is useful only for low-cost products. Direct mail is not restricted to small companies seeking business. Direct mail is ineffective in targeting high-income, upscale consumers.

Which of the following statements is true of direct mail?

A) Direct mail is facing significant competition from 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) It is reserved for high-end brands.

68)

________ is created from a database that sorts names based on segmented markets.

A) B) C) D) E)

69)

A mailing list An infomercial A TV spot A web pages A mail shopping network

Which of the following statements is true of mailing lists?

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A) B) C) D) E)

70)

They lead to a lot of waste coverage. They have the ability to segment markets on the basis of lifestyles. They are used in combination with infomercials. They constitute a payroll database of a company’s employees. They are typically considered to be an unethical strategy.

Which of the following factors have increased the effectiveness of mailing lists?

A) B) C) D) E)

rapid technological development and new product innovations social networking sites segmentation on the basis of geography and demographics limiting consumer segregation improved lifestyle characteristics and increased purchasing power of consumers

71) Which of the following media has lower cost and greater convenience, raising concerns among traditional direct-mail marketers but at the same time creating better opportunities?

A) B) C) D) E)

television radio Internet outdoor advertising transit advertising

72) Which of the following statements is true of the use of catalogs in the direct-marketing industry?

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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.

74) ________ is the electronic equivalent of junk mail—it is less targeted and is considered unwanted e-mail.

A) B) C) D) E)

75)

Add-on Trojan Mnemonic Spam Plug-in

The U.S. government has passed laws regulating the use of e-mail marketing because

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A) B) C) D) E)

it results in high volumes of spam and many consumers consider it a nuisance. of the huge costs involved in monitoring Internet traffic. it violates the privacy of online users and makes unauthorized use of consumer data. it makes use of comparative advertising. 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 directmarketing 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 the two-step approach to direct marketing.

A) B) C) D) E)

78)

direct-response advertising direct-support advertising direct-ambient advertising personal selling sales promotion

Direct marketing in the broadcast industry involves

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A) B) C) D) E)

public relations and supplementary promotions. direct-response advertising and support advertising. a one-step direct-marketing approach to sales. add-on marketing. 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) B) C) D) E)

ambient advertising. publicity. direct-response advertising. sales promotion. support advertising.

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 commercial is an example of

A) B) C) D) E)

81)

ambient promotion. support advertising. a one-step direct-marketing approach. add-on marketing. sweeps marketing.

Which of the following statements is true of infomercials?

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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 is a short advertisement on television for items such as prescription medication, toiletries, auto insurance, or pizza?

A) B) C) D)

83)

infomercial direct selling television spot personal selling

Infomercials are

A) B) C) D) E)

primarily designed to sell products that are classified as trends. always televised during off-viewing hours. those ads that appear only in print media. a part of specialty advertising. 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 show is an example of

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A) B) C) D) E)

85)

a sales promotion. personal selling. specialty advertising. buzz advertising. an infomercial.

Which of the following factors has led to a dramatic increase in home shopping?

A) B) C) D) E)

the development of satellite connectivity the nationalization of telephone networks the development of high-definition television the shift in social preferences among consumers the widespread use of credit cards

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)

87)

magazines and newspapers television and radio direct mail and catalogs telemarketing and home shopping TV spots and infomercials

Which of the following statements is true of telemarketing?

A) B) C) D) E)

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Telemarketing exclusively uses network television for direct marketing. Telemarketing is employed only in a one-step system. Business-to-business marketers do not use telemarketing. Telemarketing is only used by for-profit companies. Telemarketing is effective for charitable organizations.

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88) ________ is the personal presentation, demonstration, and sales of products to consumers in their homes.

A) B) C) D) E)

89)

Home shopping Direct marketing Personal liaising Consultative selling Direct selling

Which of the following is a form of direct selling?

A) B) C) D) E)

party plans home shopping out-of-home shopping place-based advertising 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) B) C) D) E)

91)

Repetitive person-to-person selling Nonrepetitive person-to-person selling Party plans Home shopping Telemarketing

Which of the following statements is true of repetitive person-to-person selling?

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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.

92) ________ is when a salesperson visits a buyer’s home, job site, or other location to sell infrequently purchased products or services.

A) B) C) D) E)

93)

Repetitive person-to-person selling Nonrepetitive person-to-person selling Party plans Home shopping Telemarketing

Which of the following statements 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 personto-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 are likely to be sold using a nonrepetitive person-toperson selling technique?

A) B) C) D) E)

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detergents T-shirts dairy products Girl Scout cookies shoes

622

95) __________ is when a salesperson offers products or services to groups of people through home or office gatherings and demonstrations.

A) B) C) D) E)

Repetitive person-to-person selling Nonrepetitive person-to-person selling Party plan Home shopping Telemarketing

96) Advertisers can measure the relative effectiveness of a direct-marketing program quickly by using

A) B) C) D) E)

cost per thousand (CPM). the breakeven point. reach and frequency. cost per order (CPO). 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) B) C) D) E)

cost per order (CPO) cost per thousand (CPM) cost per man-hour (CPMH) cost per new prospect (CPNP) sales per database name (SDN)

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.

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A) B) C) D) E)

Cost per thousand Consumer worth evaluation Customer lifetime value Customer profitability estimation 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) B) C) D) E)

Customer Profitability Estimation Consumer Worth Evaluation Customer Lifetime Value Breakeven point 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) B) C) D) E)

Customer Profitability Estimation Consumer Worth Evaluation Customer Lifetime Value breakeven point 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.

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A) B) C) D) E)

102)

Which of the following is an advantage that direct marketing offers to advertisers?

A) B) C) D) E)

103)

poor image poor selectivity inability to measure effectiveness low frequency level lack of segmentation

Direct marketing lets an advertiser

A) B) C) D) E)

105)

personalization of messages ability to create a mood exclusive image greater content support accuracy of lists

Which of the following is a disadvantage associated with direct marketing?

A) B) C) D) E)

104)

Customer Profitability Estimation Consumer Worth Evaluation Customer Lifetime Value breakeven-point cost-per-order

build a credible image about a company’s product by using direct mails. reach a large number of people and reduce or eliminate waste coverage. make accurate mailing lists consistently for targeting potential customers. create a desirable mood in consumers. market its products in a cost-efficient manner.

As postal rates increase, direct-mail advertising is increasingly replaced with

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A) B) C) D) E)

billboards. e-mail. infomercials. telemarketing. radio advertising.

106) Unlike magazines, in direct-response advertising, ________ is limited to the surrounding program or editorial content.

A) B) C) D) E)

mood creation profit image telemarketing 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 associate 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) B) C) D) E)

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image accuracy content support rising costs Do Not Call lists

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Answer Key Test name: chapter 14 1) TRUE 2) TRUE 3) TRUE 4) TRUE 5) FALSE 6) TRUE 7) TRUE 8) C 9) B 10) D 11) B 12) D 13) D 14) C 15) B 16) C 17) A 18) B 19) A 20) C 21) B 22) D 23) B 24) D 25) A 26) D Version 1

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27) B 28) C 29) C 30) C 31) D 32) E 33) C 34) B 35) A 36) B 37) E 38) B 39) B 40) D 41) A 42) C 43) C 44) D 45) B 46) A 47) B 48) E 49) B 50) C 51) D 52) D 53) D 54) A 55) B 56) A Version 1

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57) A 58) A 59) C 60) C 61) D 62) A 63) B 64) E 65) E 66) D 67) A 68) A 69) B 70) C 71) C 72) C 73) C 74) D 75) A 76) D 77) A 78) B 79) C 80) B 81) C 82) C 83) E 84) E 85) E 86) A Version 1

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87) E 88) E 89) A 90) A 91) A 92) B 93) D 94) D 95) C 96) D 97) A 98) C 99) C 100) C 101) E 102) A 103) A 104) B 105) B 106) A 107) A Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) One of the reasons for the rapid growth of the Internet is consumers’ increased desire for information. ⊚ ⊚

true false

Banner ads may be used for creating awareness or recognition.

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⊚ ⊚

true false

3) Inorganic search results are those that appear because of their relevance to the search terms, not advertisements. ⊚ ⊚

true false

4) 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

All of the methods used to measure Internet activity and effectiveness are accurate. ⊚ ⊚

true false

6) Behavior tracking on the Internet helps in tailoring the message to appeal to specific needs and wants of the target audience. ⊚ ⊚

true false

7) One of the greatest disadvantages of the Internet is the lack of reliability of the research numbers generated. ⊚ ⊚

true false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 8) Which of the following media is considered interactive?

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A) B) C) D) E)

Which media offers consumers the opportunity to provide their own content?

A) B) C) D) E)

10)

journals television radio Internet newspapers

The early websites produced by major corporations contained mainly ________ content.

A) B) C) D) E)

11)

journals television radio Internet newspapers

brand image promotional brand identity positioning information

Unlike other marketing media, the Internet is best considered to be

A) B) C) D) E)

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an advertising medium. a hybrid of media types. a digital medium. a branded medium. a communications medium.

632

12) Users can both purchase and offer goods for sale on the Internet, which makes the Internet

A) B) C) D) E)

a thorough-response medium. a direct-reaction medium. a direct-response medium. a direct-opposition medium. an indirect-reaction medium.

13) The Internet is used to create awareness, provide information, and influence attitudes, which makes the Internet

A) B) C) D) E)

a thorough-response medium. a cultural medium. a communications medium. an influential medium. an indirect-reaction medium.

14) The Internet allows companies to create awareness, provide information, and influence attitudes, while allowing users to both purchase and sell products. This makes the Internet both

A) B) C) D) E)

15)

a marketing medium and a direct-response medium. a communications medium and a direct-response medium. a communications medium and a marketing medium. an advertising medium and a direct-response medium. a communications medium and an advertising medium.

The Internet is a particularly valuable tool for creating awareness for

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A) B) C) D)

corporations. mutual funds. banking. small businesses.

16) To provide information such as specifications and submission dates quickly to more potential candidates, the best low-cost media

A) B) C) D) E)

17)

Traditional marketers moving to the Internet have had difficulty creating

A) B) C) D) E)

18)

are trade magazines. is the Internet. are custom newsletters. is still the U.S. Post Office. are occupational journals.

advertising appeal. primacy appeal. brand image. brand parity. a business plan.

Using the Internet to encourage consumers to order trial products has been

A) B) C) D) E)

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a challenge for large companies. a challenge for small companies. ineffective. effective. uncommon.

634

19) With access to retail sales through the Internet, many companies are ________ their “brick-and-mortar” stores.

A) B) C) D) E)

20)

leasing space in repurposing retaining reducing reconfiguring

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.

21) When major corporations first began to conduct business on the Internet, they put up websites primarily for

A) B) C) D) E)

22)

information purposes. product placement. increasing interest. inducing trial. increasing sales.

The Internet

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A) B) C) D) E)

enables only one-way information flow. is unidirectional. is a direct-response medium. doesn’t allow feedback from consumers. is independent of other media.

23) 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) B) C) D) E)

24)

Which of the following factors has led to rapid adoption of the Internet?

A) B) C) D) E)

25) in

build a brand image. allow customer sampling. disseminate information. handle objections. induce trial.

decreased Internet traffic decreased government regulations the increasing availability of leisure time the ability to conduct e-commerce through one’s personal computer reduction of clutter in terms of broadcast and print media

When using the Internet as a medium, traditional marketers have experienced difficulties

A) B) C) D) E)

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creating awareness. generating interest. disseminating information. creating brand images. creating strong brands.

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26) 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) B) C) D) E)

27)

disseminate information. create awareness. build an image. create a strong brand. stimulate trial.

Which of the following statements 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 onedirectional 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.

28)

Which of the following statements 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.

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29) 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) B) C) D) E)

eliminate economies of scale. create diseconomies of scale. disseminate information. replace advertising in trade journals. prevent price wars.

30) In developing creative strategies specifically adapted to the medium, marketers have found it most difficult to

A) B) C) D) E)

disseminate information through the Internet. provide current price lists on the Internet. create viable links to suppliers using the Internet. overcome online buying-center barriers. create a brand image on the Internet.

31) 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) B) C) D) E)

32)

disseminate information. create a route for disintermediation. create an e-commerce site. stimulate trial. create a brand image.

Direct selling of goods and services on the Internet is known as

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A) B) C) D) E)

33)

direct-response advertising. consumer-to-consumer selling. business-to-business selling. e-commerce. blogging.

Which of the following statements 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.

34) 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) B) C) D) E)

generate interest. create awareness. disseminate information. create an image. create a strong brand.

35) User-generated ads are possible with Web 2.0. The changes to the World Wide Web are primarily a result of the ________ of communications and interactivity.

A) B) C) D) E)

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advertising appeal primacy appeal concentration brand parity decentralization

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36) A window appearing or a character trying to get your attention as you access certain websites is known as

A) B) C) D) E)

37)

_________ are smaller than a full screen but larger than a banner ad.

A) B) C) D) E)

38)

Contextual ads Pop-ups Interstitials Pop-overs Organic searches

While you are waiting for a site’s content to download, __________ ads may appear.

A) B) C) D) E)

39)

contextual advertising. a pop-up. an interstitial. a pop-over. an organic search.

contextual pop-up interstitial pop-over organic search

An ad based on the content of a web page is called ________ advertising.

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A) B) C) D) E)

contextual pop-up interstitial pop-over organic search

40) When retrieving information from the Internet, some web pages require that users watch an ad before they can access the content. These ads are known as

A) B) C) D) E)

video on demand. webisodes. pre-rolls. blogs. zip-proof advertising.

41) While some marketers are excited to use this feature of the Internet, others are skeptical about the limited reach and potential for deception. They are referring to

A) B) C) D) E)

video on demand. webisodes. pre-rolls. blogs. zip-proof advertising.

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

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A) B) C) D) E)

43)

Web 2.0. Web network. Web 1.0. Web 1.8. Web HTML.

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.

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.

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A) B) C) D) E)

46)

Like broadcast or print, the Internet

A) B) C) D) E)

47)

can only disseminate and not assimilate information. offers extensive psychographic selectivity. is an advertising medium. has a low reach. has no problems related to user privacy.

Banner ads

A) B) C) D) E)

48)

Interstitial Web 1.0 Web 2.0 E-commerce B2B selling

are rarely used for advertising on the Web. are typically used in transit advertising. are synonymous with interstitials. cannot be used to achieve direct-marketing objectives. can be static, animated, or in flash.

Banner ads are also known as

A) B) C) D) E)

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interstitials. paid searches. pop-ups. side panels. links.

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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) B) C) D) E)

50)

________ occur when a company pays to sponsor a section of a site.

A) B) C) D) E)

51)

an interstitial. a banner. a pop-up. a sponsorship. a paid search.

Paid searches Interstitials Regular sponsorships Content sponsorships Irregular sponsorships

Regular sponsorship occurs when

A) B) C) D) E)

a sponsor participates in providing the content. a sponsor approves the content of a site. a company pays to sponsor a section of a site. a sponsor contributes all or part of the content. advertisers pay only when a consumer clicks on their ad from a search engine page.

52) The WEmpower.com website, 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) ________.

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A) B) C) D) E)

53)

button banner regular interstitial content

Regular sponsorship occurs when a sponsor

A) B) C) D) E)

buys pop-ups. buys banners and headliners. takes a corporate sponsorship of a page. buys pop-unders. 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) B) C) D) E)

guerrilla sponsorship. paid search. regular sponsorship. pay-per-click advertisement. 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 Internet advertising is Clement Network using?

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A) B) C) D) E)

interstitials regular sponsorship push technology pop-unders content sponsorship

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 TechAtlas.com. This is an example of

A) B) C) D) E)

an interstitial. a regular sponsorship. push technology a pop-under. a 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 a website.

A) B) C) D) E)

Pop-ups Interstitials Links Banner ads Blogs

58) ________ are ads that appear underneath a web page and become visible only when a user leaves the site.

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A) B) C) D) E)

Links Interstitials Banner ads Pop-unders Blogs

59) While Ginger waited for Etenia.com’s apparel site to load, 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) B) C) D) E)

content sponsorship. a pop-up. push technology. functional sponsorship. a pop-under.

60) After Jones finished reading an article titled “101 Places to Visit Before You Die” on 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 Excursion 2.0 magazine. This ad is an example of

A) B) C) D) E)

content sponsorship. a pop-up. push technology. functional sponsorship. a pop-under.

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

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A) B) C) D) E)

content sponsorship. a pop-up. regular sponsorship. functional sponsorship. a pop-under.

62) ________ are ads that appear on a user’s computer screen while he or she is waiting for a site to load content.

A) B) C) D) E)

63)

Pop-unders Pay-per clicks Interstitials Plug-ins Floating ads

In general, a site that ranks higher on a search page

A) B) C) D) E)

is likely to receive more visitors. is considered more aesthetically appealing. has a better chance of attracting banner sponsorships. is likely to receive fewer regular sponsorships. is considered less secure from malware.

64) ________ search results are those that appear because of their relevance to the search terms, not advertisements.

A) B) C) D) E)

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Interstitial Optimized Nonorganic Paid Organic

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65)

Pay-per-click advertising is an example of a(n) ________ search.

A) B) C) D) E)

interstitial organic nonorganic nonoptimized spam

66) ________ is the process of increasing the volume of traffic driven to a site by a browser or web portal through unpaid (organic) results as opposed to paid inclusion.

A) B) C) D) E)

67)

Search engine optimization Linking Rich media marketing Behavioral targeting Contextual targeting

Advertisers employ search engine optimization (SEO) to

A) B) process. C) D) E)

more specifically target customers who may be interested in their offerings. attract customers to their products and services through the nonorganic search monitor Internet traffic. include attractive multimedia content in their web pages. sponsor a section of a website.

68) ________ is an Internet advertising strategy based on advertisers’ targeting consumers by tracking their web surfing patterns, such as which websites they have visited and/or searches they have made.

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A) B) C) D) E)

69)

Search engine optimization Linking Rich media marketing Behavioral targeting Contextual targeting

Behavioral targeting can be done by

A) B) C) D) E)

compiling clickstream data and Internet protocol information. providing regular and content sponsorship in a section of a website. including animation and flash in websites. placing a website higher on a search engine page. 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) B) C) D) E)

behavioral targeting. advertising allowance analysis. rich media marketing. video substitution selection. 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

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A) B) C) D) E)

retargeting. rebounding. heuristic targeting. search engine optimization. contextual targeting.

72) Advertisers who target their advertising based on the information provided on web pages are using

A) B) C) D) E)

73) by

behavioral targeting. advertising allowance analysis. rich media marketing. database marketing. contextual advertising.

Whereas behavioral advertising tracks surfing behaviors, contextual ads are determined

A) B) C) D) E)

the context in which ads are made. the content of a web page. content sponsorships. pay-per-click advertising. advertising concepts.

74) ________ is a form of paid media where the ad experience follows the natural form and function of the user experience in which it is placed.

A) B) C) D) E)

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Behavioral targeting Native advertising Place-based advertising Support media advertising Content sponsorship

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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) B) C) D) E)

behavioral targeting native advertising ambient advertising specialty advertising 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) B) C) D) E)

77)

Interstitials Support media Contextual ads Simulations Rich media

________ can include all content that is created in flash.

A) B) C) D) E)

Banner ads Links Interstitials Rich media Paid searches

78) ________ are short feature films in which companies create their own content to advertise their products.

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A) B) C) D) E)

Online commercials Video on demand Blogs Webisodes Interstitials

79) The term ________ refers to the Internet’s change from static sites to a decen-tralization of communications and interactivity, with information provided by users as contributors of content such as user-generated ad content.

A) B) C) D) E)

Web 1.0 Web 2.0 paid search rich media 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) B) C) D) E)

pre-rolls social media native ads rich media interstitials

81) ________ sites are platforms that allow users to share interests, activities, backgrounds, or real-life connections.

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A) B) C) D) E)

82)

Social networking Contextual advertising Behavioral targeting User-generated video sharing Podcast networking

Which of the following statements 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) B) C) D) E)

social networking site. content aggregator. podcast. blog. 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) B) C) D) E)

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Paid search Interstitial Podcasting Blogging Contextual advertising

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85)

The attractiveness of ________ increases with the growth of the market for iPads.

A) B) C) D) E)

social networking sites really simple syndication (RSS) user-generated video-sharing sites blogs podcasting

86) A ________ is a web-based publication consisting primarily of periodic articles, normally presented in reverse chronological order.

A) B) C) D) E)

87)

widget button link blog podcast

Which of the following statements is true of QR codes?

A) B) C) D) E)

They are primarily Web 1.0 applications. They are considered a part of augmented reality. They are used to reflect the writings of a business or a corporation. They are Web-based publications consisting primarily of periodic articles. They are being threatened by near-field communication.

88) Swish Turbo Inc., an automaker, conducted a sweepstakes in which people could 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?

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A) B) C) D) E)

direct marketing personal selling publicity public relations sales promotions

89) 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) B) C) D) E)

90)

dissuasive medium poor reach extensive clutter limited information lack of credibility

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 also incurs additional costs.

91) 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 a tool for

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A) B) C) D) E)

sales promotion. personal selling. direct marketing. public relations. advertising.

92) 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 and 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) B) C) D) E)

sales promotion. personal selling. direct marketing. public relations. advertising.

93) 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) B) C) D) E)

sales promotion personal selling direct marketing public relations interconnects

94) Due to the rapid adoption of smartphones and tablets, ________ is now receiving strong attention from marketers.

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A) B) C) D) E)

Web 1.0 mobile video on demand Web 2.0 pay-per-click advertising

95) Which of the following is a traditional method of measuring the effectiveness of the Internet?

A) B) C) D) E)

96)

Which of the following is an Internet-specific measure that is used by companies?

A) B) C) D) E)

97)

unique visitors post-click conversion view-through rate web page eye tracking recall and retention

recall tests retention tests sales return on investment (ROI) cost per conversion

In 2008, ________ became the official media coding standard.

A) B) C) D) E)

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98) With the many options for social media networks and digital advertising, services like media management, content development, publishing and monitoring are available. These services are called

A) B) C) D) E)

the advertising platform. application management. Internet management. social media management. the marketing platform.

99) Tools that provide the ability to track and report website traffic and monitor performance are called

A) B) C) D) E)

100)

nonorganic search results. e-commerce. analytics. organic search results. social media management.

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.

101)

Which of the following has been cited as an advantage of using the Internet?

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A) B) C) D) E)

prestige lack of clutter privacy of user data message tailoring reliability

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) B) C) D) E)

103)

lack of reliability of research numbers generated inability to provide in-depth information inability to offer sight and sound lack of sales potential in the business-to-business segment lack of creative flexibility in creating tailored advertising messages

Which of the following is a disadvantage associated with the Internet?

A) B) C) D) E)

target marketing message tailoring interactive capabilities clutter 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.

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A) B) C) D) E)

clutter potential for deception measurement challenge privacy 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) B) C) D) E)

106)

clutter potential for deception measurement challenge privacy irritation

Which of the following has been cited as a disadvantage of using the Internet?

A) B) C) D) E)

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inability to tailor messages lack of sales potential limited exposure potential for deception lack of creativity

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Answer Key Test name: chapter 15 1) TRUE 2) TRUE 3) FALSE 4) FALSE 5) FALSE 6) TRUE 7) TRUE 8) D 9) D 10) E 11) B 12) A 13) C 14) B 15) D 16) B 17) C 18) D 19) C 20) A 21) A 22) C 23) C 24) D 25) D 26) E Version 1

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27) E 28) A 29) C 30) E 31) D 32) D 33) C 34) A 35) E 36) B 37) B 38) C 39) A 40) C 41) D 42) C 43) B 44) B 45) C 46) C 47) E 48) D 49) B 50) C 51) C 52) C 53) C 54) C 55) E 56) E Version 1

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57) A 58) D 59) B 60) E 61) E 62) C 63) A 64) E 65) C 66) A 67) A 68) D 69) A 70) A 71) A 72) E 73) B 74) B 75) B 76) E 77) D 78) D 79) B 80) B 81) A 82) B 83) B 84) C 85) E 86) D Version 1

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87) E 88) E 89) B 90) D 91) D 92) D 93) C 94) B 95) E 96) E 97) A 98) D 99) C 100) A 101) D 102) A 103) D 104) A 105) B 106) D Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) Sales promotion activities cannot be targeted to different parties in the marketing channel. ⊚ ⊚

true false

Sales promotions are typically not considered a part of the IMC planning process.

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⊚ ⊚

true false

3) 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

4) An objective for consumer-oriented promotions is to enhance or support the integrated marketing communications effort for a brand or company. ⊚ ⊚

true false

Sampling is generally considered the least effective way to generate trial. ⊚ ⊚

true false

6) The oldest, most widely used, and most effective sales promotion tool is the cents-off coupon. ⊚ ⊚

true false

7) 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

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 8) A sales promotion can target which of the following groups? Version 1

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A) B) C) D)

consumers only consumers or retailers only consumers, retailers, or distributors only consumers, retailers, distributors, or sponsors

9) A major reason for the increase in sales promotion is that customers are purchasing more on the basis of price, value, and convenience. In other words, consumers are less

A) B) C) D)

10) to

One of the most important uses of sales promotion techniques is to encourage consumers

A) B) C) D)

11)

sophisticated. brand loyal. cost conscious. time sensitive.

purchase a new brand. learn more about product features. purchase a product at a specific time. compare competitive brands.

A strategy for increasing sales of an established brand is to use promotions that attract

A) B) C) D)

media attention. nonusers of the product category. existing customers. advertising awards.

12) Promotion programs can be developed to coincide with ________ for certain products and services.

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A) B) C) D)

13)

Sampling is most effective for products that

A) B) C) D)

14)

delivery peak sales periods the decline life cycle stage the retirement life cycle stage

are large but inexpensive. are expensive but small. have a quick sales cycle. are indivisible.

Which of the following is an example of event sampling?

A) attaching a sample to an existing product B) mailing a sample to potential consumers C) leaving samples for customers at a store D) giving samples away at a conference

15)

A coupon booklet that is inserted into a newspaper or mailed is an

A) B) C) D)

16)

FSI. FDI. FCI. FAI.

Which of the following is an objective for trade-oriented promotions?

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A) B) C) D)

Reduce retail inventories. Encourage retailers to eliminate competitive brands. Build distribution for growing products. Obtain distribution for new products.

17) Advertising is used primarily as a reminder to keep consumers aware of the brand when the brand moves to which maturity stage?

A) growth B) maturity C) decline D) introduction

18)

What kind of support for a sales promotion program is typically considered optional?

A) B) C) D)

19)

When several competitors use promotions extensively, ________ can result.

A) B) C) D)

20)

advertising public relations media direct selling

a sales promotion trap clutter overuse increased sales

A brand that is constantly promoted may

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A) gain name recognition. B) increase perceived value. C) lose perceived value. D) lose name recognition.

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) B) C) D) E)

22)

Coupons, bonus packs, premiums, and samples are promotional offers that target

A) B) C) D) E)

23)

end users. retailers. wholesalers. salespeople. employees.

Which of the following is an example of a trade-oriented sales promotion activity?

A) B) C) D) E)

24)

magazine advertising direct mail public relations publicity sales promotion

samples coupons refunds/rebates dealer contests bonus packs

How has the view of sales promotions changed during the past decades?

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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.”

25)

Which of the following is a reason for the increase in sales promotion?

A) B) C) D) E)

growing power of retailers increasing brand loyalty of customers lack of short-term focus among marketers decreased promotional sensitivity 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

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A) B) C) D) E)

28) are

that they have become less time sensitive. the increase in perceived brand loyalty. the increased power of manufacturers. that they save money. that consumers’ choices have declined.

In response to the decline in consumers’ attention to mass-media advertising, marketers

A) B) C) D) E)

using more media monitoring services to make event sponsorship more successful. placing more traditional mass-media-based advertising. using more sales promotions. employing clipping services to determine the effectiveness of their press releases. 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) B) C) D) E)

telemarketing. direct mail. publicity. synergistic buying. sales promotion.

30) Which of the following statements is true of the increase in sales promotion by brand managers?

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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.

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 help a marketer produce a quick and easily measurable jump in sales?

A) B) C) D) E)

mass-media advertising a strategy that enhances the advertising carryover effect sales promotions such as coupons and price discounts bait-and-switch marketing techniques 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) B) C) D) E)

33)

Evangelism Close-range Account-specific Call-to-action Affinity

Account-specific marketing is also known as

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A) B) C) D) E)

a planogram program. comarketing. dual sponsorship. piggyback marketing. 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) B) C) D) E)

guerilla marketing. brand stretching. evangelism marketing. account-specific marketing. brand extension.

35) Sales promotion activities that communicate distinctive brand attribute and contribute to the development and reinforcement of brand identity are what types of promotion?

A) B) C) D) E)

consumer loyalty consumer franchise brand extension brand logo trademark

36) Which of the following statements describes how brand equity is affected by the increased use of sales promotion?

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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) B) C) D) E)

38)

nonfranchise-building promotions. consumer franchise-building promotions. high-involvement sales promotions. sales promotion traps. event marketing.

Which of the following statements is true of consumer franchise-building promotions?

A) B) C) D) E)

They are designed to increase long-term brand preference. They are designed to help consumers avoid full-price purchases in the long term. They do not always depend on a promotional offer. They are a subset of public relations. They are synonymous with publicity.

39) Which of the following statements is true of consumer franchise-building (CFB) promotions?

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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) B) C) D) E)

consumer sampling contest targeted to ultimate consumers price-off deal event sponsorship frequency program

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) B) C) D) E)

consumer franchise-building promotion. nonfranchise-building promotion. vertical integration marketing. image promotions. evangelism marketing.

42) The sales promotion tool that critics contend is most guilty of detracting from brand equity and being detrimental to a brand franchise is

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A) B) C) D) E)

sweepstakes. contests. frequent patronage programs. trade promotions. 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) B) C) D) E)

sweepstakes. contest. frequent patronage program. trade promotion. 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) B) C) D) E)

using a sales promotion to attract users of a competing brand. identifying new uses for the brand. obtaining repurchase. defending current customers. 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) B) C) D) E)

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A rebate A refund Sampling Couponing A sweepstakes

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46) ________ is generally considered the most effective method for generating trial of a new product.

A) B) C) D) E)

47)

Couponing Sampling Rebating Sweepstakes promotion A contest

Samples would be an appropriate promotional strategy

A) B) C) D) E)

to support an everyday low price (EDLP) strategy. to facilitate a push promotional strategy. to introduce a new product into the marketplace. in the decline stage of a product’s life cycle. to build long-term relationships with customers.

48) Which of the following correctly states 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.

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A) B) C) D) E)

mail sampling couponing door-to-door sampling on-package sampling mobile coupon

50) ________ 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

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) B) C) D) E)

door-to-door event on-package in-store direct-mail

52) In a(n) ________ sampling, a multiproduct firm attaches the sample to an existing item of the firm.

A) B) C) D) E)

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checkout spiff in-store on-package bounce-back

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53)

The oldest, most widely used, and most effective sales promotion tool is

A) B) C) D) E)

54)

An advantage of coupons is that they

A) B) C) D) sensitive. E)

55)

cents-off coupons. sampling. rebates. event sponsorship. bonus packs.

elicit faster consumer responses than samples, unlike sweepstakes and rebates. generally elicit immediate response from consumers. are very effective even without brand name awareness. allow a marketer to offer a price reduction only to consumers who are price build brand loyalty.

Which of the following correctly states 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?

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A) B) C) D)

Coupons always assist in providing an immediate response. Coupons are often used by consumers who are already loyal to the brand. Coupons are useless when it comes to promoting established products. Coupons are more effective than sampling for inducing initial product trial in a short

period. E) Coupons have an extremely high redemption rate.

57)

The most popular method for distributing coupons is through

A) B) C) D) E)

newspaper freestanding inserts. direct mail. product packaging. magazines. the Yellow Pages.

58) What advantage does distribution of coupons through direct mail have over other forms of coupon delivery?

A) B) C) D) E)

59)

less clutter lower cost lower redemption rate lower economies of scale cooperative advertising opportunities

Consumers redeem less than what percentage of all coupons distributed?

A) B) C) D) E)

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40% 20% 10% 5% 1%

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60)

Nearly ________ percent of consumers use coupons on a regular basis.

A) B) C) D) E)

61)

90 60 50 20 10

To increase early redemption of coupons, marketers

A) B) C) D)

reduce the duration period. offer a higher discount in the first week. announce the coupon schedule. reduce the number of coupons printed.

62) Which term means combining shopping skills with coupons to save as much money as possible?

A) B) C) D)

63)

extreme shopping extreme saving extreme couponing extreme frugality

Marketers often distribute coupons as a way to compete against

A) B) C) D)

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similar brands. poor economic conditions. lower-priced brands sales quotas.

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64) A package of Confident razor blades contains a sample of Confident Foamy shaving cream. This is an example of a(n) ________ sampling method.

A) B) C) D) E)

65)

on-package bounce-back checkout instant rebate

Marketers are using online, or mobile, coupons as a means of

A) B) C) D)

distributing coupons more broadly. tracking redemption with in-store purchases. reaching more customers. increasing the coupons’ creative element.

66) Vinnie’s Cornmeal has had significant issues with their coupons being redeemed at local stores when the consumer makes no purchase. This is an example of

A) poor tracking. B) misredemption. C) misappropriation. D) graft.

67)

RedPlum and SmartSource are examples of

A) B) C) D)

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solo books. freestanding advertisements. freestanding inserts. freestanding coupons.

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68) FSIs are the most popular way of delivering coupons because, among other reasons, they can offer

A) geographic positioning. B) category exclusivity. C) color exclusivity. D) creative exclusivity.

69)

The increased distribution of coupons through FSIs has led to

A) B) C) D)

overuse. high redemption rates. low redemption rates. clutter.

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) B) C) D) E)

mnemonic heuristic premium prommercial 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

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A) B) C) D) E)

coupon. sample. free premium. rebate. 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) B) C) D) E)

free premium. self-liquidating premium. rebate. bonus pack. nonsubsidized premium.

73) Consumers must pay the manufacturer’s cost plus handling and mailing costs for a ________ premium.

A) B) C) D) E)

74)

cost-covered self-liquidating subsidized cost-plus base-cost

Which of the following statements is true of self-liquidating premiums?

A) B) C) D) E)

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They are used for lightweight, nonperishable products. They require customers to pay for the mailing costs. They are typically offered at higher-than-retail prices. They are also known as cost-plus premiums. They are usually delivered directly to the customers’ doorsteps.

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75)

The in-store sampling approach can be very effective for food products because

A) B) C) D) E)

76)

customers get to taste the sample. customers get the sample delivered to their homes. it is an inexpensive sampling method. it does not require a great deal of planning. it does not require the cooperation of retailers.

Which of the following correctly states a limitation of 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 fast-growing sampling method features media tie-ins and is the most popular?

A) B) C) D) E)

78)

event sampling bounce-back sampling on-package sampling in-store sampling door-to-door sampling

Which of the following correctly states a limitation of 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 correctly states 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 cannot be used for nonperishable products. D) It can be used only for small products.

80) This is a sampling method in which the sample is delivered directly to the residence and is used when it is important to control where the samples are delivered.

A) B) C) D)

81)

door-to-door direct mail in-store on-package

Which of the following correctly states 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.

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A) B) C) D) E)

In-house sampling In-store sampling Event sampling Door-to-door sampling Bounce-back sampling

83) A ________ is a promotion where consumers compete for prizes and/or money on the basis of skills or ability.

A) B) C) D) E)

84)

A ________ is a promotion where winners are determined purely by chance.

A) B) C) D) E)

85)

sweepstakes contest refund rebate sample

contest sweepstakes rebate premium loss leader

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.

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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) B) C) D) E)

87)

samples and coupons premiums contests and sweepstakes event sponsorships bonus packs

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) B) C) D) E)

89)

price-off deal. premium. bonus pack. rebate. trade allowance.

Bonus packs

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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.

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) B) C) D) E)

bonus price pack. rebate. refund offer. bounce-back price coupon. 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) B) C) D) E)

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bonus program. loyalty program. customer rewards contest. self-liquidating promotion. subsidized program.

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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) B) C) D) E)

93)

sweepstakes program. loyalty program. customer rewards contest. premium promotion. rebate program.

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) B) C) D) E)

point-of-purchase displays loyalty programs price-off deals dealer incentives event sponsorship programs

95) Planet Beverage’s heavy financial involvement with freestyle skiing competitions and support of beach volleyball tournaments are examples of

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A) B) C) D) E)

96)

premiums. field marketing. exhibitions. event marketing. contests.

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 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) B) C) D) E)

98)

slotting fees. fixed trade spending. push money. promotional pricing. a bonus pack.

Which of the following promotions is targeted toward the trade rather than consumers?

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A) B) C) D) E)

spiffs coupons premiums and sweepstakes bonus packs 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) B) C) D) E)

a slotting fee. a mnemonic. a spiff. pull money. a bonus pack.

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) B) C) D) E)

a fixed trade spending. a rebate. a spiff. an off-invoice allowance. 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

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A) B) C) D) E)

cooperative advertising. merchandising support. a trade allowance. a spiff. push money.

102) Dewy, a fruit juice manufacturer, offers its retail accounts a discount of $3.00 per case on all purchases of cranberry juice during the month of May. This discount will be deducted straight from the bill. This offer is an example of

A) B) C) D) E)

push money. a slotting allowance. an off-invoice allowance. a display allowance. a fixed trade spending.

103) Payments offered by manufacturers to retailers for merchandising products or running special in-store programs are called

A) B) C) D) E)

off-invoice allowances. push monies. advertising subsidies. promotional allowances. slotting allowances.

104) Money that must be paid to a retailer so it will take on a company’s new product is known as

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A) B) C) D) E)

105)

a slotting allowance. a failure fee. a spiff. push moneys. a trade discount.

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) B) C) D) E)

107)

failure fees. slotting fees. push monies. off-invoice allowances. street monies.

Slotting allowances are also called

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A) B) C) D) E)

off-invoice allowances. spiffs. push money. street money. rebates.

108) A ________ is a configuration of products that occupy a shelf section in a store, offered to retailers by manufacturers.

A) B) C) D) E)

slotting plan planogram promotional layout retail format 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) B) C) D) E)

cooperative advertising. sales force automation. a sales training program. event marketing. a sales incentive program.

110) ________ is an exhibition or forum where manufacturers can display their products to current and prospective buyers.

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A) B) C) D) E)

A planogram A trade layout Cooperative advertising A trade show Event marketing

111) ________ is advertising sponsored in common by a group of retailers or other organizations providing products or services to the market.

A) B) C) D) E)

Horizontal cooperative advertising Vertical cooperative advertising Integrated dyadic advertising Retail-syndication advertising 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) B) C) D) E)

113)

cooperative advertising. event sponsorships. vertical integrated marketing. comparative advertising. inbound marketing.

Which of the following statements 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.

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114) ________ is advertising supported by raw materials manufacturers to help establish end products that include a company’s materials.

A) B) C) D) E)

Vertical cooperative advertising Ingredient-sponsored cooperative advertising Horizontal cooperative advertising Guerrilla advertising 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) B) C) D) E)

horizontal cooperative vertical cooperative parody ingredient-producer cooperative comparative

116) Advertising implemented by retailers and paid for, at least in part, by a manufacturer is called

A) B) C) D) E)

joint sales promotions. horizontal cooperative advertising. vertical cooperative advertising. ingredient-sponsored cooperative advertising. reseller advertising.

117) With respect to the allocation of the promotional budget, when a brand moves to the maturity stage

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A) B) C) D) E)

push monies are used to encourage retailers to stock more products. advertising is primarily a reminder to keep consumers aware of the brand. promotional dollars will be used only for distributing coupons to customers. all promotional support for the brand will be removed. promotional dollars will be used only for distributing samples.

118) Which of the following statements is true of promotional budget allocation when a brand enters the decline stage?

A) B) C) loyalty. D) E)

Promotional dollars will be used only for distributing coupons to customers. Promotional dollars will be used only for distributing samples. Price-offs and bonus packs must be used intermittently to maintain consumer Most if not all of the promotional support for the brand will be removed. Advertising is primarily a reminder to keep consumers aware of the brand.

119) Which of the following statements is true of promotional budget allocation when a brand enters the growth stage?

A) Promotional dollars will be used only for bait-and-switch marketing. B) Promotional dollars will be used only for rebate advertising. C) Price-offs and bonus packs must be used intermittently to induce product trial. D) Promotional dollars must be used primarily for advertising to stress brand differences. E) Advertising is primarily a reminder to keep consumers aware of the brand.

120) Which of the following statements is true of promotional budget allocation when a brand enters the introductory stage?

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A) Promotional dollars will not be allocated for activities such as sampling and couponing. B) A large portion of the budget will be allocated to sales promotion techniques. C) Promotional dollars must be used to eliminate brand differences. D) Most if not all of the promotional support for the brand will be removed. E) 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) B) C) D) E)

purchase behavior is attributed to an external incentive. relationships between promotions and attitudes are weak. primary reinforcement is the brand, and not the promotional incentive. consumers typically possess high brand loyalty. purchase is internally motivated and unaffected by an external stimulus.

122) When McDonald’s introduced its value menu in 2003 and competitors responded by putting popular items on their own 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) B) C) D) E)

attribution trap sales promotion trap primary reinforcement spiral secondary reinforcement spiral external trap

123) A study by Priya Raghubir and Kim Corfman on whether price promotions affect pretrial evaluations of a brand showed that

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A) B) C) D) E)

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purchase behavior is attributed to an internal incentive. relationships between promotions and attitudes are weak. primary reinforcement is the brand, and not the promotional incentive. consumers typically possess high brand loyalty. price promotions may inhibit trial of a brand in certain situations.

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Answer Key Test name: chapter 16 1) FALSE 2) FALSE 3) TRUE 4) TRUE 5) FALSE 6) TRUE 7) FALSE 8) C 9) B 10) A 11) B 12) B 13) C 14) D 15) A 16) D 17) B 18) C 19) A 20) C 21) E 22) A 23) D 24) A 25) A 26) C Version 1

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27) D 28) C 29) E 30) D 31) C 32) C 33) B 34) D 35) B 36) C 37) B 38) A 39) B 40) C 41) B 42) D 43) E 44) A 45) C 46) B 47) C 48) E 49) C 50) B 51) D 52) D 53) A 54) D 55) A 56) B Version 1

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57) A 58) A 59) E 60) B 61) A 62) C 63) C 64) A 65) B 66) B 67) C 68) B 69) D 70) C 71) C 72) A 73) B 74) B 75) A 76) A 77) A 78) B 79) D 80) A 81) C 82) D 83) B 84) B 85) B 86) C Version 1

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87) C 88) C 89) B 90) E 91) B 92) B 93) A 94) B 95) D 96) D 97) C 98) A 99) C 100) C 101) C 102) C 103) D 104) A 105) A 106) A 107) D 108) B 109) C 110) D 111) A 112) A 113) A 114) B 115) B 116) C Version 1

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117) B 118) D 119) D 120) B 121) A 122) B 123) E Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) Publicity, public relations, and corporate advertising are integral parts of the overall promotional effort. ⊚ ⊚

Public relations is limited to business management. ⊚ ⊚

true false

Public relations efforts are often targeted to more than one group of individuals. ⊚ ⊚

true false

4) Public relations is typically a short-term strategy, while publicity is a concerted program extending over a period of time. ⊚ ⊚

true false

A corporate ad is not as easy to write as an ad designed to position a product.

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⊚ ⊚

true false

6) Whirlpool’s association with Habitat for Humanity, related to its efforts to eliminate poverty housing, is an example of a sponsorship. ⊚ ⊚

true false

7) 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

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 8) Which of the following statements about public relations is true?

A) functions. B) C) D) E)

Typically, shorter forms of public relations and publicity are interchangeable Public relations is not considered a management function. Public relations has the same objectives as product and service promotion. An effective public relations program continues over months or even years. Public relations deals only with the activities designed to sell a product or service.

9) In the traditional perspective, public relations is a ________ function whose primary responsibility is to maintain mutually beneficial relationships between an organization and its publics.

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A) B) C) D) E)

financial human resources nonmanagement nonmarketing sales

10) ________ 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) B) C) D) E)

Public relations Image advertising Corporate advertising Public administration Public offering

11) 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) B) C) D) E)

sales promotion public relations advertising human resources outdoor marketing

12) According to Cutlip and colleagues, what is the first step to developing a public relations plan?

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A) B) C) D) E)

13)

In public relations targeting, external audiences include the

A) B) C) D) E)

14)

Hold programs to handle PR problems. Develop plans for handling PR problems. Define the PR problems. Take actions to counter PR problems. Evaluate the programs taken to counter PR programs.

customers. public. suppliers. stockholders. employees.

Which of the following is considered an internal audience for a public relations activity?

A) B) C) D) E)

customers media government public civic groups

15) ________ for public relations efforts include employees, stockholders, and investors of a firm as well as members of the local community, suppliers, and current customers.

A) B) C) D) E)

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Internal audiences Secondary audiences Mediated audiences External audiences Theoretical audiences

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16)

Which of the following statements about publicity is true?

A) B) C) D) E)

Publicity always originates within a firm and is paid for by the firm. Publicity is used to generate news about a person, and not a product or service. Public relations is, in reality, a subset of the publicity effort. Publicity is typically a short-term strategy. Publicity is designed to provide only positive information about a firm.

17) Marketing public relations (MPR) can add value to an integrated marketing program in a number of ways, including creating advertising news when there is no product news. As demonstrated with the Super Bowl, the focus of publicity can sometimes be the

A) B) C) D) E)

18)

A disadvantage of marketing public relations is that

A) B) C) D) E)

19)

rivalry. fans. MVP. ads. spirit of the game.

it integrates with IMC. it circumvents consumer resistance to sales efforts. media time and space is not guaranteed. it breaks through the clutter. it can create influence among opinion leaders and trendsetters.

In marketing public relations (MPR), a firm’s product sales may be affected by

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A) B) C) D) E)

procedures. public attitudes. employee morale. brand impact. policies.

20) When establishing a public relations plan, it should be noted that it is an ongoing process that deals with problems and opportunities requiring formalized

A) B) C) D) E)

21)

Community members and customers of a firm are considered a(n) ________ audience.

A) B) C) D) E)

22)

policies and procedures. marketing plan. brand identity. advertising campaign. business planning.

external marginal peripheral extroverted internal

Communities of people who live and work where a firm is located are often the target of

A) B) C) D) E)

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advertising efforts. primacy appeal. public relations efforts. brand impact. marketing efforts.

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23) To be used by the press, the information in a press release must be factual and true and of interest to both the audience and the

A) B) C) D) E)

location. medium. locality. community. business.

24) The public does not realize that an organization either directly or indirectly pays for public relations communications. As a result, these communications tend to have more

A) B) C) D) E)

advertising. sustainability. controversy. credibility. sales.

25) Public relations is considered __________ because the media are not paid to provide the information.

A) B) C) D) E)

26)

debatable unreliable controversial credible contentious

When the possible effects of public relations are considered, the cost of public relations is

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A) B) C) D) E)

pricey. very high. very low. negotiable. difficult to calculate.

27) Public relations messages are not subject to the clutter of ads because they are typically perceived as

A) B) C) D) E)

28)

A major disadvantage of public relations is the potential for

A) B) C) D) E)

29)

marketing. corporate communications. sponsored by firms. public notices. news items.

completing the advertising process. not completing the communications process. not completing the marketing process. not completing the advertising process. completing the marketing process.

A subset of the public relations effort is

A) B) C) D) E)

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marketing. the primacy appeal. publicity. admiration. advertising.

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30) With the goal to provide positive information, it is important that public relations is usually controlled by

A) B) C) D) E)

31)

the firm or its agent. the community. the firm’s board of directors. the public. the media.

Both positive and negative publicity often originates from sources other than

A) B) C) D) E)

the firm or its agent. the community. the firm’s board of directors. the public. the media.

32) Unlike advertising and sales promotions, publicity is not usually perceived as being sponsored by a

A) B) C) D) E)

33)

marketing firm. company. media entity. public relations firm. news outlet.

The power of publicity is the frequency of exposure it generates through its

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A) B) C) D) E)

34)

The new role of PR differs from the traditional role of PR in that it

A) B) C) D) E)

35)

marketing value. company value. media value. public relations value. news value.

views PR as a nonmarketing function. has a narrower perspective of PR functions. considers marketing and public relations as separate departments. considers all noncustomer relationships necessary only in a marketing context. requires the marketing department to report to public relations.

The new role of public relations is characterized primarily by

A) B) C) D) E)

a less communication-oriented role. a less finance-oriented role. a more sales-oriented role. a less technical role. a more marketing-oriented role.

36) According to Thomas L. Harris, public relations activities that are designed to support marketing objectives are known as

A) B) C) D) E)

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service marketing communications. public administration functions. marketing public relations functions. public activity networking. marketing system functions.

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37) Which of the following statements describes an advantage of the use of marketing public relations (MPR)?

A) B) C) D) E)

38)

The effectiveness of MPR can be easily measured. It is easy to tie slogans with MPR activities. MPR breaks through the clutter. The use of MPR guarantees a specific media time and place. MPR helps in increasing control over media.

Which of the following correctly states 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 correctly states 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.

40)

Which of the following correctly states 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 helps to improve ROI.

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41)

Which of the following is considered an external audience of a public relations activity?

A) B) C) D) E)

customers suppliers members of the local community stockholders press

42) 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) B) C) D) E)

the current customers of an organization. the employees of a firm. the press. government officials. community members.

43) Which of the following methods of communication is typically used to create goodwill within an organization?

A) B) C) D) E)

organizational newsletters award ceremonies annual reports grievance committees corporate picnics

44) ________ 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.

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A) B) C) D) E)

Corporation certificates Articles of association Annual reports Grievance committee reports Memoranda of association

45) The press, educators, civic and business groups, governments, and financial communities are all

A) B) C) D) E)

internal audiences. secondary audiences. mediated audiences. external audiences. tertiary audiences.

46) One of the most critical external publics is ________, which determine what a person will read in newspapers or online, or see on TV, and how this news will be presented.

A) B) C) D) E)

suppliers customers the government the media investors

47) Which of the following groups would most likely be the target of public relations efforts designed to increase communications with external audiences?

A) B) C) D) E)

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potential investors and the media current customers and employees of the firm supply chain members and current customers suppliers and employees of the firm stockholders and the public at large

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48) 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) B) C) D) E)

suppliers. financial groups. educators. civic organizations. the media.

49) Companies help ________ by making financial contributions, offering sponsorships, and delivering speeches at functions to create goodwill.

A) B) C) D) E)

suppliers financial groups educators civic organizations the media

50) ________ offer companies the potential for new sources of funding and so must be kept abreast of new developments in the organization.

A) B) C) D) E)

51)

Suppliers Financial groups Educators Civic organizations Employees

Companies that support lobbying efforts are

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A) B) C) D) E)

trying to reach internal audiences. engaged in flighting. targeting government bodies. stressing the importance of homogeneity. targeting educators.

52) Major accomplishments, major breakthroughs, emergencies, or catastrophes typically warrant

A) B) C) D) E)

a community involvement program. a national press conference. an exclusive interview. a focus group survey. an internal accounting process.

53) Companies often use ________ when they have significant news to announce, such as the introduction of a new product or advertising campaign.

A) B) C) D) E)

community involvement programs press conferences exclusives focus group surveys interviews

54) The management of a multinational firm sends copies of a write-up to several different European newspapers announcing its decision to start operations in Spain. Which public relations tool is the company using?

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A) B) C) D) E)

community involvement press conference exclusives marketing public relations (MPR) press release

55) 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) B) C) D) E)

community involvement social networking exclusives press conference press release

56) 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) B) C) D) E)

a social network. a mnemonic. a press release. an exclusive. a press conference.

57) 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

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A) B) C) D) E)

community involvement. integrated public relations activities. exclusives. press conferences. press releases.

58) 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.

59) 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) B) C) D) E)

60)

corporate-sponsored advertisements public-sponsored advertisements image builders news items exclusives

Which of the following statements is true of public relations?

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A) B) C) D) E)

61)

Which of the following is an advantage of public relations?

A) B) C) D) E)

62)

This medium of promotion lacks credibility. The relative cost of public relations is very low. The absolute cost of public relations is very high. Public relations messages are subject to a lot of clutter. Public relations is ineffective in generating sales leads.

effectiveness at completing the communications process high absolute cost but low relative cost ability to complete the communications process effective lead generation strong connection between the receiver and the source

The cost of public relations is

A) B) C) D) E)

generally not considered as a part of the marketing budget. very low in both relative and absolute terms. very high in relative terms and very low in absolute terms. very low in relative terms and very high in absolute terms. not easy to determine as it fluctuates across initiatives.

63) Which of the following is the most affordable form of communication available to smaller companies?

A) B) C) D) E)

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public relations image advertising corporate advertising public administration public offering

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64) PR information about technological innovations, medical breakthroughs, and the like results almost immediately in a multitude of inquiries that result in

A) B) C) D) E)

65)

high marketing costs. loss of credibility. high clutter. quality sales leads. loss of market share.

Which of the following correctly states 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.

66) 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.

67) Which of the following does Mark Weiner suggest for measuring the effectiveness of MPRs?

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A) B) C) D) E)

quantitative assessment of consumers’ attitudes toward a product number of personal interviews given by company representatives dollar value of community involvement number of press releases developed percentage of people who have encountered the press release

68) ________ 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) B) C) D) E)

Regression analysis Focus group discussion Marketing-mix modeling Survey research Media content analysis

69) Drawing data from multiple sources and integrating them to provide insight into the PR process is referred to as

A) B) C) D) E)

70)

regression analysis. focus group discussion. marketing-mix modeling. survey research. media content analysis.

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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71) According to Mark Weiner, which of the following are a common method for measuring the effectiveness of public relations activities?

A) B) C) D) E)

number of customer complaints public opinion and surveys sales measures computer simulations trend analyses

72) ________ refers to the generation of news about a person, product, or service that appears in broadcast or print media.

A) B) C) D) E)

Indirect advertising Direct response advertising Sales promotions Publicity Advertainment

73) 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 article is an example of

A) B) C) D) E)

an advertorial. negative publicity. controlled public relations. image advertising. negative lobbying.

74) Unlike other forms of promotion, ________ is not usually perceived as being sponsored by the company, especially in negative instances.

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A) B) C) D) E)

direct marketing outdoor advertising publicity transit advertising trade promotion

75) Which of the following is one of the important reasons for the high power of publicity as a form of promotion?

A) B) C) D) E)

its ability to eliminate the problem of clutter its ability to eliminate the problem of economies of scale its news value and the frequency of exposure it generates its lack of ability to generate word of mouth information its lack of credibility

76) Many marketers consider publicity to be the strongest form of marketing communications because of

A) B) C) D) E)

its effectiveness at completing the communications process. its ability to make or break a brand. its inability to affect sales. the ease with which it complements other communications activities. the positive image it always attaches to products and organizations.

77) 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) B) C) D) E)

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sales promotions advertorials online advertising publicity celebrity branding

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78) Publicity is considered much more important than advertising, sales promotion, or other forms of public relations because of the

A) B) C) D) E)

control it has over the message. timing of the message. credibility it offers to the message. accuracy of the message. lack of clutter in the message.

79) Publicity is the generation of news about a person, product, or service that appears in broadcast or print media. Publicity can be managed like any other

A) B) C) D) E)

advertising tool. promotional tool. public relations tool. publicity tool. sponsorship tool.

80) A ________ is a publicity piece produced by publicists so that TV stations can air it as a news story.

A) B) C) D) E)

video news release celebrity branding split-run test news mnemonic dramatization ad

81) 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 company actually funded the report, it would then be an example of

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A) B) C) D) E)

image advertising. advocacy and news advertising. cause-related news advertising. a video news release. direct response advertising.

82) A popular cartoon channel on television ran a holiday feature on the best and worst hightech gifts for children. In the feature, a technology expert recommended games that were developed by selected companies. If these selected companies jointly funded the holiday feature, it would be an example of

A) B) C) D) E)

a cause-related ad. a mnemonic. an image ad. a video news release. an event sponsorship.

83) Marketers use ________ when they want to have as much control as possible over publicity.

A) B) C) D) E)

84)

press conferences advertorials press releases video news releases sponsorships

Which of the following is an advantage of publicity?

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A) B) C) D) E)

85)

In the context of PR, the timing of when a press release is used is entirely up to the

A) B) C) D) E)

86)

suppliers in a firm. financial groups in a community. educators in a community. civic organizations in a community. media.

Which of the following is a disadvantage of publicity?

A) B) C) D) E)

87)

high control over the information being conveyed control over the timing of information release accuracy of the information being publicized control over any inappropriate word-of-mouth marketing perception of being endorsed by the media

lack of credibility a perception of being endorsed by the media control over timing of publicity information can be inaccurate low potential for word-of-mouth communication

One of the main disadvantages of publicity is the

A) B) C) D) E)

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lack of control over the information conveyed. low credibility it offers. lack of support that is often shown by the media. lack of confidence people have in such information. minimal frequency of exposure that it generates.

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88) The Cision framework for digital public relations involves a communication funnel consisting of bottom line, digital impact, and

A) B) C) D) E)

brand appeal. brand media. social media. brand impact. brand identity.

89) Corporate advertising does not promote any one specific product or service; it is actually an extension of the ________ function.

A) B) C) D) E)

90)

e-commerce marketing public relations advertising new media

Corporate advertising does not

A) B) C) D) E)

promote one product or service. seek direct involvement in a cause. enhance a brand or image. promote the firm overall. support social issues.

91) One of the reasons why corporate advertising is considered controversial is because critics say it is a costly form of

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A) B) C) D) E)

92)

public advertising. self-indulgence. marketing. public relations. advertainment.

Corporate advertising is designed to reach

A) B) C) D) E)

the general public. affiliate news outlets. a select target market. an advertising firm. a marketing firm.

93) Communications activities designed to promote a firm’s overall image, without reference to a specific product, are called

A) B) C) D) E)

94)

corporate advertising. event branding. advertorials. lobbying. cause-related advertising.

Why is corporate advertising considered controversial?

A) B) C) D) E)

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Consumers are highly interested in this form of advertising. It places too much importance on products and services. It is considered a waste of money for a company. It depends on the names of a company’s brands rather than the company itself. 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 specific products offered by Aries Venture, it is an example of

A) B) C) D) E)

96)

corporate advertising. advocacy advertising. an advertorial. lobbying. continuity advertising.

Which of the following statements 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) B) C) D) E)

98)

Saturn Inc.’s use of a popular actress as a spokesperson Mars and Gray promoting its concern for the environment Crest Golf’s signing of pro-golfer Bryan Raymond as a spokesperson W&W conducting a contest to choose a new color for their candies Haven Funeral Home giving out free calendars to all of its clients

Which of the following statements about corporate advertising is true?

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A) B) C) D) E)

It is a cheap form of advertising. It attracts the interest of consumers. Corporate image ads are highly tangible. Corporate ads are not easy to write. 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) B) C) D) E)

100)

One of the major goals of corporate advertising is

A) B) C) D) E)

101)

direct marketing sales promotion aerial advertising corporate advertising trade promotion

developing consumer interest in a company’s products and services. creating awareness about the new products of a firm. inducing trial. inviting feedback. communicating an organization’s views on social issues.

Firms that spend more on corporate advertising also tend to have

A) B) C) D) E)

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ineffective IMC programs. unidimensional marketing strategies. greater return on investments. higher-priced stocks. better positioning strategies.

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102)

Which of the following statements 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.

103)

Which of the following is a criticism commonly applied to corporate advertising?

A) B) C) D) E)

104)

Attitude surveys and focus group research help in measuring the effectiveness of

A) B) C) D) E)

105)

poor vehicle for repositioning a company or a brand failure to take advantage of the benefits derived from public relations not effective at reaching the target market questionable effectiveness lack of control over public opinion

corporate advertising. celebrity branding. advertorials. lobbying. continuity advertising.

Which of the following is used to measure the effectiveness of corporate advertising?

A) B) C) D) E)

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regression analysis focus group research Boolean analysis BCG matrix cumulative frequency analysis

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106) 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) B) C) D) E)

107)

tying PR activities directly to sales timing the amount a sponsored logo appears on television conducting studies relating to corporate advertising and stock prices computer simulations measuring effectiveness of the sales promotional tools instead

Positioning ads and sponsorships are examples of

A) B) C) D) E)

transit advertising. cause-related advertising. image advertising. advocacy advertising. WOM advertising.

108) ________ is a form of corporate advertising devoted to promoting an organization’s overall reputation.

A) B) C) D) E)

Transit advertising Cause-related advertising Image advertising Advocacy advertising Symbolic advertising

109) 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 ad is an example of

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A) B) C) D) E)

cause-related advertising. advocacy advertising. a general positioning ad. a direct response ad. a financial support ad.

110) 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 ad is an example of

A) B) C) D) E)

direct-response advertising. corporate image advertising. cause-related advertising. advocacy advertising. event sponsorship.

111) 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) B) C) D) E)

112)

recruitment ad sponsorship paid positive publicity general positioning ad financial support ad

When Alstone Mobile refers to itself as “The good tire people,” it is engaging in

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A) B) C) D) E)

positioning advertising. recruitment advertising. advocacy advertising. sales promotions. direct marketing.

113) When a large corporation sponsors a college bowl game, what type of advertising is being used?

A) B) C) D) E)

114)

Which of the following statements is true of event sponsorships?

A) B) C) D) audiences. E)

115)

advocacy advertising image advertising issue advertising cause-related advertising advertorial marketing

They are highly useful public relations tools. They are typically inexpensive. They are unsuitable for gaining affinity with target audiences. They are a poor platform from which to build equity and gain affinity with target They are not suitable platforms for building equity.

Many companies are attracted to event sponsorships because

A) B) C) D) E)

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they help build equity and gain affinity with target audiences. they help in segmenting the target market. they are less expensive than traditional forms of advertising. they help in elucidating controversial issues of public importance. they explain management’s position on social issues.

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116) ________ is a major form of corporate advertising that addresses social, business, or environmental issues.

A) B) C) D) E)

Image advertising Aerial advertising Advocacy advertising Event sponsorship Trade promotion

117) 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) B) C) D) E)

advocacy advertising publicity sponsorship public relations advertising image advertising

118) ________ 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) B) C) D) E)

Advocacy Image Aerial Event Interactive

119) 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 ad is an example of

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A) B) C) D) E)

120)

image advertising. trade promotion. direct-response advertising. event sponsorship. advocacy advertising.

Which of the following statements 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.

121) When M1 Oil runs an advertisement urging citizens to support and donate to a law enforcement memorial fund, it is using

A) B) C) D) E)

advocacy advertising. event marketing. specialty advertising. personal branding. event sponsorship.

122) 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

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A) B) C) D) E)

123)

advocacy advertising. event marketing. specialty advertising. corporate repositioning. image sponsorship.

Which of the following statements is true of advocacy advertising?

A) B) C) D) E)

Advocacy advertising is typically suitable only for small firms. Advocacy ads may be sponsored by a firm or by a trade association. Advocacy ads can be used only in conjunction with cause-related marketing. Advocacy ads are mainly used for attracting sponsorships for events. Advocacy ads use direct advertising to promote an organization.

124) 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) B) C) D) E)

direct-response ads image ads positioning ads issue ads transit ads

125) A departmental store ad about a consumer tax problem would constitute ________ advertising.

A) B) C) D) E)

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image event direct-response trade issue

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126) ________ marketing is an increasingly popular method of image building, in which companies link with charities or nonprofit organizations as contributing sponsors.

A) B) C) D) E)

127)

Cause-related Event Image Transit Cooperative

Cause-related marketing refers to

A) B) C) D) E)

all advertising designed to cause sales. all advertising designed to cause attitude change. linking companies with nonprofit organizations. changing the current image of an organization. responding to any negative publicity faced by a firm.

128) 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) B) C) D) E)

cause-related event image transit cooperative

129) McDonald’s sponsorship of the Ronald McDonald House, where families of hospitalized children can stay free of charge, is an example of

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A) B) C) D) E)

130)

advocacy advertising. cause-related marketing. publicity. advertorial marketing. transactional marketing.

Which of the following statements 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.

131) Advertising sponsored by the American Heart Association and the American Stroke Association and targeting teens to stop smoking is an example of

A) B) C) D) E)

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advocacy advertising. cause-related marketing. VNR. event sponsorship. image advertising.

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Answer Key Test name: chapter 17 1) TRUE 2) FALSE 3) TRUE 4) FALSE 5) TRUE 6) TRUE 7) TRUE 8) D 9) D 10) A 11) B 12) C 13) B 14) A 15) A 16) D 17) D 18) C 19) B 20) A 21) E 22) C 23) B 24) D 25) D 26) C Version 1

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27) E 28) B 29) C 30) A 31) A 32) B 33) E 34) D 35) E 36) C 37) C 38) B 39) E 40) C 41) E 42) B 43) E 44) C 45) D 46) D 47) A 48) C 49) D 50) B 51) C 52) B 53) B 54) E 55) D 56) D Version 1

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57) A 58) C 59) D 60) B 61) D 62) B 63) A 64) D 65) D 66) D 67) A 68) E 69) C 70) E 71) B 72) D 73) B 74) C 75) C 76) B 77) D 78) C 79) B 80) A 81) D 82) D 83) D 84) E 85) E 86) D Version 1

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87) A 88) D 89) C 90) A 91) B 92) C 93) A 94) C 95) A 96) A 97) B 98) D 99) D 100) E 101) D 102) B 103) D 104) A 105) B 106) C 107) C 108) C 109) C 110) B 111) D 112) A 113) B 114) A 115) A 116) C Version 1

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117) A 118) A 119) E 120) A 121) A 122) A 123) B 124) D 125) E 126) A 127) C 128) A 129) B 130) B 131) A Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) Measuring the effects of advertising helps a firm maximize its investment. ⊚ ⊚

true false

2) One of the main reasons cited for measuring the effectiveness of a promotional program is that it is easy to isolate the effects of promotional elements. ⊚ ⊚

true false

3) Testing bias occurs when people scrutinize ads much more closely than they would in normal situations.

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⊚ ⊚

true false

4) Tests of comprehension and reaction employ one standard procedure for measuring advertising effectiveness. ⊚ ⊚

true false

Testing of ads is required even after an ad and/or a campaign has been implemented. ⊚ ⊚

true false

6) While it is important that marketers’ attempts to measure effectiveness be guided by all of the principles of PACT, the research should be guided by a model of human response to communications that encompasses reception, comprehension, and behavioral response. ⊚ ⊚

true false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 7) What does the Magazine Impact Research Service (MIRS) measure?

A) B) C) D)

online advertising recall print advertising recall radio advertising recall television advertising recall

Which of the following is the primary advantage of field tests?

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A) B) C) D)

control of variables realism cost isolation of causes

Which of the following is a commonly used method for concept testing?

A) B) C) D) E)

field testing laboratory testing focus group survey stakeholder interview

10) Which form of testing may measure the number of coupons returned, phone calls generated, or direct responses through reader cards?

A) B) C) D)

laboratory testing field testing inquiry testing comprehension testing

11) Studies have shown that ________ is a measure that the ad has been received, but not necessarily accepted, and is not predictive of sales.

A) B) C) D)

12)

recall comprehension emotional response frequency

Pretesting of ads is effective in terms of

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A) B) C) D)

time. comprehensive feedback. cost. isolating variables.

13) Promotion Decisions Inc. examined the impact of freestanding inserts (FSIs) and found that ________ generated significant trial by new and lapsed users of the product.

A) B) C) D)

14)

Marketers should assess advertising effectiveness measures in order to

A) B) C) D) E)

15)

inquiries sweepstakes entries half-page ad coupons

determine the break-even point for total costs of advertising. create data for marginal cost pricing strategies. determine if advertising objectives are achieved. make sure advertising supports middlemen. ensure all kinds of promotional techniques are used.

Which of the following is an argument against measuring advertising effectiveness?

A) B) C) D) E)

costs in terms of time and money lack of flexibility need for autonomy to those who control advertising lack of accountability decrease in advertising efficiency

16) Which of the following is a reason cited for not measuring the effectiveness of promotional campaigns?

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A) It is difficult to isolate the effects of promotional elements. B) It is not useful for evaluating alternative strategies. C) It typically increases economies of scale. D) It does not lead to an increase in the efficiency of advertising. E) It is impossible to determine if objectives are achieved.

17) One reason for not engaging in measuring effectiveness of promotional programs is a lack of time; however, this can be overcome

A) B) C) D) E)

18)

by identifying source factors. with the help of Q scores. by creating familiarity sheets. by eliminating market segmentation elements. by determining the source of the problem.

The “vehicle option source effect” refers to the

A) B) C) strategy. D) E)

different reach and frequency provided by different media vehicles. fact that people perceive ads differently depending on their context. responses that come from using a flighting, pulsing, or continuity scheduling opportunity costs of the various media vehicles that are not chosen. battle between budget constraints and creative options.

19) The ________ effect explains the different impact that the advertising exposure will have on the same audience member if the exposure occurs in one media option rather than another.

A) B) C) D) E)

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halo primacy-recency stimulus-response vehicle option source vehicle media context

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20) When Joanne saw a television ad for a large retail chain of jewelry stores, she was impressed with the money-back guarantee that the company offered on its jewelry. However, when she later heard an identical audio portion of the ad on the radio, she was unimpressed with the guarantee. This differing perception of ads as a result of the medium in which they appear is caused by the ________ effect.

A) B) C) D) E)

halo primacy-recency stimulus-response vehicle option source vehicle media context

21) In the context of evaluating media strategies to measure advertising effectiveness, owing to the increasing costs of media time, it is important to evaluate

A) B) C) D) E)

22)

________ are measures taken before an advertising campaign is implemented.

A) B) C) D) E)

23)

the duration of association between a company and its spokesperson. the value of customer juries. flighting versus pulsing or continuous schedules. whether or not to conduct posttesting. the readability of the print ad.

Familiarity tests Pretests Recall tests Association measures Overlap tests

________ occur after an ad or commercial has been in the field.

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A) B) C) D) E)

Dummy advertising vehicles Posttests Consumer juries Portfolio tests Physiological measures

24) Which of the following is classified as a pretest field method for conducting research to measure advertising effectiveness?

A) B) C) D) E)

single-source system association measure on-air test comprehension and reaction test theater test

25) Advertising testing methods such as association measures, tracking studies, and inquiry tests are examples of

A) B) C) D) E)

26)

single-source real-world methods. posttest field methods. pretest laboratory methods. posttest laboratory methods. pretest field methods.

Consumer juries and portfolio tests are examples of

A) B) C) D) E)

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single-source real-world methods. posttest field methods. pretest laboratory methods. posttest laboratory methods. pretest field methods.

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27) Which of the following is a pretest method for measuring advertising effectiveness that is conducted in a laboratory setting?

A) B) C) D) E)

recognition test single-source system association measure physiological measure inquiry test

28) Which of the following is a posttest method for measuring advertising effectiveness conducted in a field setting?

A) B) C) D) E)

readability test consumer jury portfolio test recognition test physiological measure

29) Which of the following is a posttest method used for measuring advertising effectiveness?

A) B) C) D) E)

concept tests portfolio tests recall tests physiological measures readability tests

30) Which of the following statements is true of pretesting that is used in measuring advertising effectiveness?

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A) B) C) D) E)

31)

One of the methodologies employed to conduct pretests is focus groups, in which

A) B) C) D) E)

32)

the successful communicative abilities of most mockups and storyboards. the ability to use finely tuned mockups and storyboards in the testing process. the absence of time delays. relatively inexpensive feedback. the ability to speed up the new product introduction process.

Commercials and print ads undergo posttesting in order to

A) B) C) D) E)

34)

the management of a company makes budgeting decisions. participants freely discuss the meanings they get from ads. concept testing takes place at the earliest development of ads. the management of a company determines the media strategies. different ads for similar products are compared.

One of the advantages associated with pretesting include

A) B) C) D) E)

33)

Pretests occur only during the idea generation stage. The methodologies employed to conduct pretests vary. Only one type of pretest method can be used to measure advertising. Feedback for pretests is very expensive. Pretests are essentially conducted within restricted time schedules.

gain relatively inexpensive feedback. avoid the use of surveys. determine if a campaign is accomplishing the objectives sought. determine if an organization’s mission statement needs to be modified. locate new product ideas.

Posttesting is designed to

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A) B) C) D) E)

eliminate the problems associated with the primacy and recency effects. check the impact of positioning statements. serve as input into the next period’s situation analysis. determine what psychological factors will influence ad perception. avoid problems associated with selective perception.

35) The fact that people in a market research lab setting may scrutinize ads much more closely than they would at home is an example of

A) B) C) D) E)

a vision myopic perception. a testing bias. an environmental proclivity. a perceptual propensity. a myopic bias.

36) In ________ tests, people are brought to a particular location where they are shown ads and/or commercials, then testers ask questions about them or measure participants’ responses by other methods—for example, pupil dilation, eye tracking, or galvanic skin response.

A) B) C) D) E)

field ground laboratory closed recognition

37) The major advantage of the laboratory method of testing for advertisement effectiveness is the ________ it affords a researcher.

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A) B) C) D) E)

38)

control external validity realism generalization lack of bias

Disadvantages associated with laboratory tests include

A) B) C) D) E)

lack of control of environmental variables. lack of realism leading to a testing bias. the expense associated with collecting feedback information. a loss of specificity. the elimination of competitive intelligence gathering opportunities.

39) One major disadvantage of laboratory tests is the lack of realism, and perhaps the greatest effect of this lack of realism is

A) B) C) D) E)

high costs. a testing bias. limited control. distraction due to noise. perceptual propensity.

40) The primary difference between a laboratory test and a field test to measure advertising effectiveness is that in a field test, a researcher

A) B) C) D) E)

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is unable to isolate causes of viewers’ evaluations. has the ability to achieve greater internal validity. has control of all independent variables. can eliminate bias. can create an illusion of reality.

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41) ________ tests are tests of an ad or commercial under natural viewing situations, complete with the realism of noise, distractions, and the comforts of home.

A) B) C) D) E)

42)

An advantage offered by field tests to measure advertising effectiveness is the

A) B) C) D) E)

43)

Concept Readability Rough Field Portfolio

greater control of synergistic forces. availability of realistic testing conditions. ability to avoid competitive intelligence gathering. low cost compared to other measurement tools. ability to isolate the causes of viewers’ evaluations.

In a field test, a firm

A) makes a final assessment of an ad before committing any money to media. B) takes into account the effects of repetition and program content. C) does not conduct tests with the realism of noise, distractions, and the comforts of home. D) obtains quick and inexpensive feedback about an ad’s impact. E) sacrifices realism in order to gain more control.

44) The set of principles adopted by large advertising agencies to improve preparation and testing of ads is referred to as

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A) B) C) D) E)

Positioning Advertising Copy Testing (PACT). Post-Advertising Commercial Testing (PACT). Promotional Advertising Content Testing (PACT). Pre-Advertising Commercial Testing (PACT). Principles of Advertising Consumer Testing (PACT).

45) ________ is defined as research “that is undertaken when a decision is to be made about whether advertising should run in the marketplace.”

A) B) C) D) E)

46) is to

Concept testing Copy testing Observational research Market testing Posttesting

According to Positioning Advertising Copy Testing (PACT), the purpose of copy testing

A) B) C) D) E)

use a single measurement to adequately assess ad performance. aid in the judgment of specific advertising executions. isolate causes of viewers’ evaluations of ads. eliminate the use of controls to avoid the biasing effects of an exposure context. isolate each contributing factor of an ad performance.

47) The principles of Positioning Advertising Copy Testing (PACT) state that a good copy testing system will

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A) use a single measure of a single dependent variable to ensure clarity of interpretation. B) provide measurements that are relevant to the objectives of advertising. C) evaluate responses to the advertising at a single level of the hierarchy of effects. D) test alternative executions at various stages of completion. E) measure needs satisfaction levels proposed by each advertisement under consideration.

48) Which of the following is one of the nine principles of Positioning Advertising Copy Testing (PACT)?

A) Require agreement about how the results will be used in advance of each specific test. B)

Adhere to the consideration that an advertising stimulus should be exposed only

once. C) Provide controls to increase the biasing effects of an exposure context. D) Use a convenience sample. E) Provide a single unique measurement to adequately assess an ad’s performance.

49)

Which of the following statements is true of a focus group?

A) B) C) D) E)

Focus groups require quantitative analysis. This methodology is unattractive as results are typically unattainable. Focus group samples can be generalized to larger populations. Group influences tend to bias participants’ responses. The results of focus groups are typically quantifiable.

50) ________ is conducted very early in a campaign development process in order to explore the targeted consumer’s response to a potential ad or campaign or have a consumer evaluate advertising alternatives.

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A) B) C) D) E)

Posttesting Concept testing Recognition testing Copy testing Recall testing

51) A manufacturer of computer game software could use which methodology to test concepts to create an ad to appeal to preteens?

A) B) C) D) E)

52)

One of the weaknesses associated with a focus group research is that the results are

A) B) C) D) E)

53)

split-run test storyboard Delphi technique computer simulation focus group

inaccurate. difficult to obtain. not directly observable. not immediate. not quantifiable.

Which of the following is a weakness associated with a focus group research?

A) B) C) D) E)

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The results are not directly observable. The results are difficult to obtain. Consumers become instant “experts.” Consumers are hesitant to participate. Focus groups require quantitative analysis.

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54) A way to gather consumers’ opinions of concepts is ________, where consumers in shopping centers are approached and asked to evaluate rough ads via questionnaires, rating scales, and/or rankings.

A) B) C) D) E)

laboratory testing Delphi groups focus groups mall intercepts consumer juries

55) Typically, most commercials on the television music channel Boom are created to be readily understood by twelfth graders. To measure the actual level of understanding of these commercials by twelfth graders, marketers can use

A) B) C) D) E)

recall and recognition tests. association measures. comprehension and reaction tests. tracking studies. physiological measures.

56) ________ tests are used in order to determine whether an ad or commercial conveys the meaning intended.

A) B) C) D) E)

Day-after recall Recognition Inquiry Comprehension Portfolio

57) The ________ is a technique used to evaluate the probable success of an ad by groups of individuals. The individuals are asked to rate a selection of layouts or copy versions presented in pasteups on separate sheets.

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A) B) C) D) E)

58)

tracking study day-after recall method comprehension and recognition test consumer jury method split-run test

A rough commercial that is categorized as an animatic rough is likely to contain

A) B) C) D) E)

a succession of drawings. live motion. nonunion crews. minimal optics. a succession of photographs.

59) ________ is an early commercial test in which a succession of drawings and/or cartoons is shown to a receiver.

A) B) C) D) E)

Animatic rough testing Photomatic rough testing Live-action rough testing Finished commercial testing Single-source testing

60) Which of the following is a disadvantage associated with the consumer jury method used to evaluate the probable success of an ad?

A) It is influenced by the primacy effect. B) There is a lack of control over independent variables. C) The number of ads that can be evaluated is limited. D) It is an expensive methodology. E) It is highly prone to consumers’ subjectivity.

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61) Jim, a participant in a research study, rated an ad as “good” since he liked the celebrity featured in the ad. However, experts criticized the ad for being senseless and lacking realism. In this scenario, Jim experienced the

A) B) C) D) E)

halo effect. recency effect. stimulus-response effect. visual option source effect. similarity effect.

62) Sometimes participants rate an ad good on all characteristics because they like a few and overlook specific weaknesses. This tendency, called the ________ effect, distorts the ratings and defeats the ability to control for specific components.

A) B) C) D) E)

63)

halo recency stimulus-response visual option source contextual

One of the flaws associated with the consumer jury method of pretesting an ad is the

A) B) C) D) E)

high cost of making the required changes. potential for ad erosion. potential for the halo effect. groupthink phenomenon. lack of control by researchers.

64) ________ are a laboratory methodology designed to expose a group of respondents to a system consisting of both control and test ads.

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A) B) C) D) E)

65)

The portfolio test for ads assumes that

A) B) C) D) E)

66)

Controlled tests Portfolio tests Dummy tests Unstructured focus groups Field tests

ads that yield the highest recall are the most effective. reliability and validity are the most important parts of the testing process. a consumer will closely scrutinize all ads that he or she sees. field and laboratory tests produce the same results. there is no contextual difference between an animatic rough and a photomatic rough.

One way to determine the validity of the portfolio method is to

A) compare the psychological measures used in print and broadcast methods. B) ask consumer juries to rate a selection of layouts presented in pasteups on separate sheets. C) correlate its results with readership scores once an ad is placed in a field. D) use the order of merit or paired comparison methods. E) use the Flesch formula to assess readability of ad copy.

67) ________ is a readability test that determines the average number of syllables per 100 words.

A) B) C) D) E)

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Portfolio analysis Burke’s reflections test The Flesch formula Dummy testing Contextual testing

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68)

The results of readability tests indicate that a copy is best comprehended when

A) B) C) D) E)

69)

sentences are long and descriptive. impersonal references are drawn. the words used have no connotations outside their dictionary definitions. the receiver is unknown. words are concrete and familiar.

Which of the following sentences is true of readability tests?

A) The communications efficiency of a copy in a print ad can only be tested with reader interviews. B) This method uses the Delphi group formula. C) An advantage of the readability test is that the copies are not mechanical. D) To be effective, readability tests should be used only in conjunction with other pretesting methods. E) Readability tests are successful in consistently providing direct inputs from receivers.

70) ________ is a method for pretesting finished broadcast ads in which participants are invited to view pilots of proposed TV programs.

A) B) C) D) E)

71)

Delphi marketing Portfolio testing Theater testing Flesch formula testing Field testing

Which of the following statements is true of theater testing?

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A) Theater testing is a popular field method of pretesting finished commercials. B) Theater testing is used to test animatic and photomatic roughs. C) The methods of theater testing operations vary, though all measure brand preference changes. D) One of the disadvantages of theater testing is that it fails to identify strong or weak commercials. E) Theater testing is typically considered to be “self-indulgent” by most critics.

72)

Which of the following statements is true of on-air tests of commercials?

A) B) C) D) E)

73)

They do not possess the disadvantages associated with field testing. They often include single-source ad research. They work well only under controlled, artificial environments. They do not enable firms to identify weak commercials. They typically require a laboratory setting to measure effectiveness.

The primary metric used in on-air testing method of pretesting finished broadcast ads is

A) B) C) D) E)

focus group results. portfolio analysis. recall. reaction. jury results.

74) Pupillometrics, electrodermal response, and electroencephalographic measures are all forms of

A) B) C) D) E)

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field posttests. rational measures of promotional success. portfolio tests used in association with single-source field tests. physiological measures of advertising effectiveness. focus group interaction measures.

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75)

Physiological measures of advertising effectiveness

A) are the most common methods for evaluating finished commercials in a laboratory setting. B) C) D) E)

indicate a receiver’s involuntary responses to ads. measure the effects of subliminal advertising. are only used for pretesting broadcast advertising. are neither valid nor reliable.

76) An advertising test that measures dilation or constriction of the eyes in response to stimuli is called

A) B) C) D) E)

77)

the Burke’s reflection test. Flesch testing. the reactive test. galvanic eye responses. pupillometrics.

Galvanic skin response is also known as

A) B) C) D) E)

electrodermal response. pupillometrics. dermal resolution. beta activity. alpha activity.

78) ________ measures the skin’s resistance to or conductance of a small amount of current passed between two electrodes.

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A) B) C) D) E)

Electrodermal response Pupillometrics Dermal-electro resolution Electroencephalographic Cerebral response

79) ________ is a physiological measure of pretesting finished commercials in which viewers are asked to view an ad while a sensor aims a beam of infrared light at the eye.

A) B) C) D) E)

Pupillometrics Eye tracking Electrodermal response Alpha activity Eye lateralization

80) Sapid Inc. wished to test consumer reactions to its new ad campaign. A particular test included aiming a beam of infrared light at the viewer’s eye and the beam was programmed to follow the movement in the eye. This test was designed to show the exact spot of the ad the viewer is focusing on. Which physiological measure did Sapid use in this scenario?

A) B) C) D) E)

81)

hemispheric eye lateralization gamma activity electrodermal response foveated eye imaging eye tracking

One of the newest uses of eye tracking is to determine

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A) B) C) D) E)

the effectiveness of websites, online ads, and e-mails. how long an individual has to read an interstate billboard message. why certain coupons have higher redemption rates than others. the connotations of the colors used in print ads. whether an individual is aware of exposure to split-run ads.

82) ________ measures determine electrical frequencies in the brain as the individual being tested responds to ads he or she is viewing.

A) B) C) D) E)

Electrodermal Pupillometric Electroencephalographic Cerebellum metric Cerebral response

83) One method of testing how consumers relate to an ad and process the information it contains is to measure ________, the degree of brain activation that occurs when they look at the ad.

A) B) C) D) E)

electrodermal response cerebral response beta activity alpha activity pupillometrics

84) ________ distinguishes between alpha activity in the left and right sides of a brain and is used to determine how an ad is affecting the mental processes of the individual viewing it.

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A) B) C) D) E)

Cerebral response testing Gamma activity Pupillometrics Beta activity Hemispheric lateralization

85) Brine Inc., a manufacturer of salt, places two different ads for Brine salt in alternate copies of the December 2016 issue of Kitchen Queen, a popular food magazine. One ad contains ideas extending the use of salt beyond the kitchen, and the other describes salt as “Flavor Savor.” In this scenario, Brine is conducting

A) B) C) D) E)

bipolar communications tests. split-run tests. single copy tests. Flesch tests. alpha activity tests.

86) ________ tests are complex methods of measuring advertising effectiveness through inquiries in which variations of an ad appear in different copies of the same newspaper or magazine.

A) B) C) D) E)

Recall Recognition Split-run Portfolio Comprehension

87) Elite Motors Inc., an automaker, develops two new print ads targeted to women. One ad uses local scenes from around its Tennessee plant and emphasizes the “Made in America” aspect. The other ad uses a spokesperson and emphasizes the safety of the car. Which of the following types of ad effectiveness measures should Elite Motors use to test the more effective ad?

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A) B) C) D) E)

88)

split-run testing day-after recall consumer juries physiological measures portfolio tests

A split-run test offered by some print media allows

A) half of an advertisement to be placed in the upper left-hand corner of a page and the other half in the lower right-hand corner. B) half of an advertisement to be placed on one page and the other half on the page facing it. C) an advertiser to put the same ad in two consecutive issues. D) alternate copies of the same issue to carry different versions of a message. E) an advertiser to buy 50 percent of the back-cover position in one issue.

89) Which of the following measures of advertising effectiveness through inquiries examines the effectiveness of a medium rather than an ad itself?

A) B) C) D) E)

90)

running an ad in successive issues of the same medium running different ads in the same medium running the same ad in different media running variations of an ad in the same medium running variations of an ad in different copies of the same medium

One of the major advantages of inquiry tests is that they are

A) B) C) D) E)

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inexpensive to implement for measuring an ad’s effectiveness. very effective for comparing different versions of an ad or medium used. the most accurate measure of the creative aspects of an ad. a true measure of the attention-getting aspects of an ad. not subject to time constraints.

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91)

________ is a posttest of print ads that is most closely associated with GfK-Starch.

A) B) C) D) E)

The recognition method Portfolio analysis Theater testing Inquiry testing A consumer jury

92) According to the Starch Ad Readership Report, the primary advantage offered by the recognition method of posttesting ads is

A) B) C) D) E)

93)

the reliability of its recognition scores. true claims of recognition by participants in a test. the ability to judge specific aspects of an ad. lack of interviewer bias. the validity of the recognition scores.

The four recognition scores generated by the Starch methodology are

A) B) C) D) E)

noting, brand-associated, read-most, and read-any. comprehension, retention, response, and brand-associated. noting, comprehension, seen-associated, and retention. readers per dollar, cost ratios, CPMs, and brand-associated. recognition, retention, comprehension, and readers per dollar.

94) Which testing method should Axel Inc., a manufacturer of consumer electronics, employ to determine whether consumers remember its new advertising campaign slogan?

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A) B) C) D) E)

95)

physiological tests comprehension and reaction tests recall tests portfolio tests concept testing

Which of the following statements is true of the recall method used in testing print ads?

A) B) C) D) E)

Recall tests are not affected by interviewer bias. Brand-associated scores are valuable measures of recall tests. Recall tests are useful when measuring an ad’s impact on memory. Recall tests are significantly different from pretests used in broadcast ads. Recall tests and recognition tests are synonymous.

96) The ________ was a technique of posttesting employed in the broadcasting industry for measuring advertising effectiveness.

A) B) C) D) E)

97)

Starch recognition method Burke Day-After Recall test concept test consumer jury split-run test

The day-after recall test would be the most appropriate measure of effectiveness for

A) B) C) D) E)

the back outside cover position of the May issue of a women’s magazine. a full-page ad in a trade journal aimed at the supermarket industry. a 30-second commercial promoting a baseball league on a cable channel. a direct mail containing details of products offered by a furniture manufacturer. an aerial ad by a leading fast-food chain.

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98)

Which of the following is associated with the day-after recall test?

A) B) C) D) E)

99)

eye-tracking test Burke test Flesch test galvanic skin response test bingo cards

The major advantage of a day-after recall test is that it

A) B) C) D) E)

is cost efficient. offers unlimited samples. provides a realistic response profile. is highly secure. provides a uniform recall score for the same brand.

100) Purchase, intent, and frequency-of-purchase criteria are a part of ________ used in posttesting of broadcast commercials.

A) B) C) D) E)

tracking studies persuasive measures alpha activity beta activity portfolio analysis

101) ________ measures are designed to garner viewers’ evaluations of ads, as well as how clearly a creative idea is understood and how well a proposition is communicated.

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A) B) C) D) E)

102)

Persuasive Diagnostic Alpha Beta Portfolio analysis

Which of the following statements is true of test marketing?

A) It is used to test advertising effects in specific target areas. B) The disadvantage of test marketing of ads is its unrealism. C) A high degree of control cannot be obtained through test marketing. D) It measures effectiveness while the ads are being run. E) It favors unemotional appeals because respondents are asked to verbalize the message.

103) ________ is a posttest method used for broadcast commercials that traces the behaviors of consumers from a television set to a supermarket checkout counter.

A) B) C) D) E)

Contextual testing The Starch test The Burke follow-up test Single-source tracking Bipolar tracking

104) ________ are used to measure an advertising campaign’s effectiveness at regular intervals.

A) B) C) D) E)

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In-depth interviews Tracking studies Recognition tests Recall tests Consumer juries

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105) ________ have been used to measure the effects of advertising on awareness, recall, interest, and attitudes toward an ad and/or brand as well as purchase intentions at regular intervals.

A) B) C) D) E)

In-depth interviews Tracking studies Recognition tests Recall tests Consumer juries

106) If a manufacturer of fast-moving consumer goods (FMCG) is interested in measuring consumers’ movement through the adoption hierarchy, which ad effectiveness measure should it employ?

A) B) C) D) E)

107)

tracking studies day-after recall tests concept testing recognition test portfolio analysis

Which of the following statements is true of ad tracking?

A) It is typically not useful for measuring consumer purchase intentions. B) It is useful for measuring the effects of advertising on awareness. C) It is suitable only for broadcast ads. D) It cannot be applied to print ads. E) It must be used in conjunction with split-run tests.

108)

The major advantage of using a tracking study to measure ad effectiveness is

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A) B) C) D) E)

its high level of efficiency. the ease of quantifying other measures. its ability to be tailored to each specific campaign. its timeliness and cost-effectiveness. the speed with which results can be gathered and tabulated.

109) Good tests of advertising effectiveness must address the nine principles established by Positioning Advertising Copy Testing (PACT). One of the easiest ways to accomplish this is by following a decision sequence model. The first step in the model is to

A) B) C) D) E)

understand the appropriate research. create a model that uses multiple measures. establish communication objectives. decide whether to use pretests or posttests. develop a consumer response model.

110) Geena is testing an ad using the nine principles established by Positioning Advertising Copy Testing (PACT). When she isolates mall intercept participants and does not disclose what the interviews are about, she is trying to adhere to the seventh principle, which is to

A) B) C) D) E)

provide controls to avoid the biasing effects of the exposure context. create a model that uses multiple measures. establish communication objectives. decide whether to use pretests or posttests. develop a consumer response model.

111) ________ can be classified as those that monitor the quantity and nature of the media coverage obtained for a sponsored event and those that estimate direct and indirect audiences.

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A) B) C) D) E)

112)

Which of the following statements is true of exposure methods?

A) B) C) D) E)

113)

Recall tests Exposure methods Tracking measures Inquiry tests Recognition tests

They are specifically designed to evaluate purchase intentions in specific markets. They are synonymous with recognition tests. They are used to evaluate preferences engendered by sponsorship. They are commonly employed by organizations. They are designed to evaluate awareness.

The first step in measuring the effectiveness of event sponsorship is to

A) B) C) D) E)

set qualitative goals. build evaluation methods into the event sponsorship strategy. narrowly define the objectives for the event with specific details. redefine the organization’s objectives in terms of its marketing communications. measure the implementation and results against predetermined benchmarks.

114) ________ measures are designed to evaluate the awareness, familiarity, and preferences engendered by sponsorship based on surveys.

A) B) C) D) E)

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Association Physiological Tracking Single-source Portfolio

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115) One of the primary goals of assessing the effectiveness of a sponsorship is determining how well it builds

A) B) C) D)

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frequency. brand equity. free advertisement. logo recognition.

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Answer Key Test name: chapter 18 1) TRUE 2) FALSE 3) TRUE 4) FALSE 5) TRUE 6) TRUE 7) B 8) B 9) C 10) C 11) A 12) C 13) D 14) C 15) A 16) A 17) E 18) B 19) D 20) D 21) C 22) B 23) B 24) C 25) B 26) C Version 1

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27) D 28) D 29) C 30) B 31) B 32) D 33) C 34) C 35) B 36) C 37) A 38) B 39) B 40) A 41) D 42) B 43) B 44) A 45) B 46) B 47) B 48) A 49) D 50) B 51) E 52) E 53) C 54) D 55) C 56) D Version 1

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57) D 58) A 59) A 60) C 61) A 62) A 63) C 64) B 65) A 66) C 67) C 68) E 69) D 70) C 71) C 72) B 73) C 74) D 75) B 76) E 77) A 78) A 79) B 80) E 81) A 82) C 83) D 84) E 85) B 86) C Version 1

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87) A 88) D 89) C 90) A 91) A 92) C 93) A 94) C 95) C 96) B 97) C 98) B 99) C 100) B 101) B 102) A 103) D 104) B 105) B 106) A 107) B 108) C 109) C 110) A 111) B 112) D 113) C 114) C 115) B

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Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) International markets are important to small and midsize companies as well as to large multinational corporations. ⊚ ⊚

true false

2) Due to faster communication, transportation, and financial transactions, time and distance have increased barriers to global marketing. ⊚ ⊚

true false

3) Demographic data can provide insight into the living standards and lifestyles in a particular country to help companies plan ad campaigns. ⊚ ⊚

true false

4) Product standardization is becoming increasingly important as a result of longer product life cycles. ⊚ ⊚

true false

5) Companies are consolidating their global advertising in an effort to increase cost efficiencies and gain greater leverage over their agencies. ⊚ ⊚

true false

6) Public relations activity in international markets is growing due to the proliferation of media.

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⊚ ⊚

true false

7) Consumer-oriented promotional tools such as sampling and high-value coupons are effective for introducing new products into the market. ⊚ ⊚

true false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 8) Which of the following factors is responsible for driving U.S. companies to focus on international markets?

A) B) C) D) E)

rapid population growth saturation in domestic markets for many products and services low competition from domestic companies low competition from foreign companies favorable marketing environment within the country

Domestic markets offer limited opportunities for expansion because of

A) B) C) D) E)

rapid population growth. unsaturated market conditions. intense competition from other companies. saturated markets in host countries. unfavorable marketing environments in foreign markets.

10) If not for globalization, most European companies would have been unable to compete with larger U.S. and Japanese companies because of

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A) their inability to operate global corporations. B) their inability to achieve economies of scale due to the small size of most European nations. C) the lack of education about international markets, resulting in limited exposure. D) the cultural differences prevailing amongst European nations, which make it difficult to achieve promotional program sustainability. E) the political and legal differences among European nations.

11) When the monetary value of a nation’s imports exceeds the monetary value of its exports, it is known as

A) B) C) D) E)

12)

added value. international trade. balance-of-trade deficit. balance-of-payments surplus. value of exports.

A balance-of-trade deficit exists when

A) the monetary value of imports exceeds that of exports. B) economies of scale are not achievable. C) supply of imports exceeds the demand for them. D) the monetary value added by an exporting nation exceeds that added by an importing nation. E) the monetary values of exports and imports are equal.

13) Since imports take a larger share of the domestic market for many products, it has become increasingly important for U.S. companies to

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A) B) C) D) E)

take collective measures to be sustainable in the domestic market. allocate additional funds for publicity. adopt an international marketing orientation. invest heavily in import-oriented businesses. seek government aid to restrict further imports.

14) Which of the following elements are important parts of the marketing program of firms competing in the global marketplace?

A) B) C) D) E)

servicescape and visual merchandising publicity and public relations advertising and promotion direct marketing and personal selling direct selling and personal selling

15) ________ is the most visible as well as the most culture bound of a firm’s marketing functions.

A) B) C) D) E)

Pricing Promotion Product development Distribution Inventory management

16) Which of the following factors demands different creative and media strategies as well as changes in other elements of the advertising and promotional program for foreign markets?

A) B) C) D) E)

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unlimited media options in various countries language variations from country to country similar buying behaviors of consumers around the world increase in the overall world literacy rate women’s empowerment throughout the world

789

17) American companies are realizing that we are shifting from being an isolated, selfsufficient, national economy to being part of an interdependent

A) B) C) D) E)

political economy. industrial economy. foreign economy. domestic economy. global economy.

18) Which of the following is an example of a major macro-external environmental factor that a company must consider when analyzing the international marketing environment?

A) B) C) D) E)

economic factors product factors promotional factors pricing factors advertising factors

19) Which of the following factors is part of the economic environment of a foreign country that companies must consider while engaging in international marketing?

A) B) C) D) E)

20)

moral standards values and ethics currency stability laws and regulations employment rate

Which of the following is a cultural factor affecting international marketing?

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A) B) C) D) E)

21)

________ is an example of a cultural factor that affects international marketing.

A) B) C) D) E)

22)

Nationalism Occupation Income level Language Employment rate

Which of the following is part of the demographic environment of a country?

A) B) C) D) E)

23)

standards of living lifestyles distribution of wealth nationalism education levels

age distribution distribution of wealth lifestyles norms and customs exchange rates

Which of the following is a component of the political/legal environment of a country?

A) B) C) D) E)

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attitudes toward multinational companies ethics and moral standards stage of economic development norms, customs, and taboos employment rate and occupation distribution

791

24) A country’s ________ indicate its present and future potential for consuming, since products and services can be sold only to countries where there is enough income to buy them.

A) B) C) D) E)

psychographic data economic conditions legal systems cultural systems government policies

25) For companies wishing to enter a new market, a country’s economic conditions indicate its ________, since products and services can be sold only to countries where there is enough income to buy them.

A) B) C) D) E)

population size and density consumer attitudes towards multinational companies cultural norms and values present and future potential for consuming population’s occupation distribution

26) The communications, transportation, financial, and distribution networks of a country are part of its

A) B) C) D) E)

political/legal environment. cultural environment. economic infrastructure. demographic environment. international interface.

27) Krypton, a developing nation, has a reputation for being unsuitable for conducting business in due to its poor communication and transportation systems. Its distribution networks are also underdeveloped. In this scenario, Krypton has a poor

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A) B) C) D) E)

demographic environment. economic infrastructure. balance of payments. cultural system. advertising system.

28) Developed countries have the ________ infrastructure in terms of the communications, transportation, and distribution networks needed to conduct business effectively in these markets.

A) B) C) D) E)

29)

demographic economic cultural political legal

Which of the following is a reason for Brazil’s economic growth?

A) B) C) D) E)

emergence of the lower middle class limited political influence in business strict import restrictions reduction in population densities great population diversity

30) Swivel Inc., a manufacturer of consumer goods, markets its shampoo brand, Valerie, in several developing countries by making it available in single-use sachets. These sachets are sold through local shops in small towns and villages. In this scenario, Swivel is attempting to

A) B) C) D) E)

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eliminate existing distribution networks. adapt its products for these markets. create diseconomies of scale. create market segmentation. diversify its product offerings.

793

31) Factors such as income levels and distribution, age and occupation distribution of the population, household size, education, and employment rates are part of a country’s ________ characteristics.

A) B) C) D) E)

economic demographic cultural political/legal lifestyle

32) ________ data can provide insight into the living standards and lifestyles in a particular country to help companies plan ad campaigns.

A) B) C) D) E)

Economic Political Demographic Legal Social

33) Drum Inc., a manufacturer of musical instruments, is considering expanding into a foreign market. The company is collecting data relating to age, income distribution, and gender variations in the potential host country. In this scenario, Drum is collecting ________ information.

A) B) C) D) E)

economic demographic cultural political legal

34) ________ variables that marketers must consider include language, customs, tastes, attitudes, lifestyles, values, and ethical/moral standards.

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A) B) C) D) E)

Demographic Economic Political Cultural Legal

35) Acacia Corp., a manufacturer of consumer electronics, encountered problems when it attempted to market instant cameras in Spain. Acacia found that Spanish consumers preferred having their film developed in the traditional format. Moreover, the company had failed to conduct a market research study about consumer customs, tastes, and attitudes in Spain. In this scenario, Acacia failed to study Spain’s ________ environment.

A) B) C) D) E)

demographic economic cultural political legal

36) Venus Inc., a manufacturer of canned meat, tried to market its canned beef products in India. Cows are considered sacred in many parts of the country, so beef consumption is limited. Since the company failed to consider this factor, its marketing strategy was a failure. This indicates that Venus Inc. did not understand the ________ environment in India.

A) B) C) D) E)

37)

demographic economic cultural political legal

Cultural variables marketers must consider include language, customs, tastes, and

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A) B) C) D) E)

governmental regulations. laws. gender. age. values.

38) Saturn Inc., an American international fast-food chain, is setting up businesses across Southeast Asia. However, the company is facing problems associated with language diversity and differences in signs and symbols in these countries. To solve these problems effectively, Saturn Inc. should

A) B) C) D) E)

39)

hire American managers. employ home country managers. hire local expertise. hire expatriate managers. employ a centralized HR system.

Tastes, traditions, and customs are an important part of ________ considerations.

A) B) C) D) E)

economic demographic political cultural legal

40) International advertisers can best deal with problems arising from language diversity and differences in signs and symbols with the help of

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A) B) C) D) E)

expat employees. research manuals. local expertise. government authority. language training.

41) ________ are beliefs and goals shared by members of a society regarding ideal end states of life and modes of conduct.

A) B) C) D) E)

Heuristics Work-life balance principles Corporate ethics Cultural values Demographic ideals

42) Carter Corp., a global retail chain, launches an ad campaign featuring supermodel Gemma Rush in several Middle Eastern countries. The television commercials featuring Gemma are not well received in most Middle Eastern countries due to their explicit visuals. Which of the following environmental factors has the company failed to consider in this scenario?

A) B) C) D) E)

economic demographic political cultural legal

43) ________ refers to the tendency of individuals to view their own group or society as the center of the universe.

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A) B) C) D) E)

44)

Monocentrism Nepotism Polycentrism Ethnocentrism Xenocentrism

Which of the following statements is true of cultural values?

A) In today’s globalized market, cultural differences are negligible, thus enabling international advertisers to market their brands easily. B) Values and beliefs of a society can affect its receptivity to foreign products and services. C) Cultural values are personal values and are only applicable on an individual level. D) A highly ethnocentric culture will be extremely receptive to foreign products and services. E) Cultural values have no effect on the market or consumer behavior.

45) In the United States, promotions for Cavort Sports products emphasize individualism and independence. In Japan, however, the company had to change its message to one that focused on team values and cooperation due to the differing ________ in the two countries.

A) B) C) D) E)

46)

demographics religious beliefs cultural values ethics lifestyles

Which of the following statements is true of ethnocentrism?

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A) It refers to the receptive and heterogeneous attitude prevalent in a host country. B) It refers to people’s tendency to view their own group as the center of the universe. C) It is synonymous with the concept of xenocentrism. D) It is typically considered a negligible aspect of international marketing. E) It is synonymous with cultural relativism.

47) U.S. brands have become popular in many European and Asian countries. Marketers attribute the rising popularity of these U.S.-made products to

A) B) C) D) E)

48)

Values that are centered on ________ stress on loyalty and interpersonal relationships.

A) B) C) D) E)

49)

the worldwide distribution of American music, films, and TV shows. the superior quality of their products. the low prices of the products. the centralized organizational approach adopted by most U.S. companies. the increasingly ethnocentric attitudes of consumers around the world.

ethnocentrism Confucianism the country-of-origin effect the halo effect xenocentrism

Which of the following statements is true of Japan as an international market?

A) The Japanese place great emphasis on the individual. B) Japan is a typical example of a xenocentric society. C) The Japanese dislike ads that confront or disparage the competition. D) Unlike American societies, Japanese societies do not lay emphasis on social interdependence. E) Japan is considered one of the easiest countries in which to market consumer products.

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50)

Which of the following is a component of a country’s political/legal environment?

A) B) C) D) E)

cultural norms population density national sovereignty considerations values, religious beliefs, and traditions language and dialects

51) Since the European Union banned the use of food dyes in seafood, the market for salmon products has declined. People mistakenly believe that farm-bred salmon is naturally pink. However, salmon is an unappetizing gray color in its natural form. This is an example of how ________ factors can inadvertently hurt small businesses.

A) B) C) D) E)

economic demographic political/legal geographic infrastructure

52) Which of the following is/are a political/legal factor(s) that can affect various aspects of a company’s international advertising program?

A) B) C) D) E)

education and employment rates of the population a country’s financial and distribution networks the use of advertising material prepared outside a country the connotations of signs and symbols used in the company’s messages tastes, traditions, and customs of the population

53) ________ is a strategy of advertising in which certain banned products are indirectly advertised by labeling a nonbanned product with a familiar logo so as to develop brand image and easy recall.

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A) B) C) D) E)

Aerial advertising Transit advertising Surrogate advertising Cross-selling Ethnocentric advertising

54) To circumvent the liquor advertising ban in India, CT Inc., the manufacturer of Bright Beer, introduced bottled water under the same brand. The company ran a series of ads promoting its bottled water carrying the “Bright Beer” brand name and hoped to build awareness. In this scenario, CT Inc. used

A) B) C) D) E)

buzz marketing. subliminal perception. aerial advertising. surrogate advertising. switch marketing.

55) ________ in production and distribution is one of the main advantages of global marketing and advertising.

A) B) C) D) E)

56)

Cultural values Global marketing Pattern advertising Global advertising Economies of scale

________ result(s) in greater marketing efficiency and lower production costs.

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A) B) C) D) E)

Global marketing Globalization Product standardization Cultural values Economies of scale

57) It is extremely difficult to develop an effective universal approach to marketing and advertising due to differences in culture, market, and economic development; consumer needs and usage patterns; media availabilities; and

A) B) C) D) E)

58)

legal restrictions. balance-of-trade deficits. economic infrastructures. localized advertising strategies. standardized advertising.

The type of products best suited to worldwide appeal are

A) B) C) D) E)

consumables that can be replenished. first-time high-tech products. custom products that are often hard to find. a variety of unique, one-of-a-kind products. cultural artifact reproductions.

59) To avoid the problems of trying to translate words into dozens of languages for worldwide ad campaigns, brands or messages that can be adapted for a ________ are best suited.

A) B) C) D) E)

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advertising appeal primacy appeal marketing appeal visual appeal cultural appeal

802

60) A company gathering demographic data relating to a foreign market can use it to ascertain

A) B) C) D) E)

cultural values. norms and beliefs. market potential. economic prowess. legal stipulations.

61) ________ is a marketing approach that assumes that the needs satisfied by a product or service and the ways it is used are the same everywhere in the world, and therefore utilizes a common approach in all countries.

A) B) C) D) E)

62)

Product standardization results in

A) B) C) D) E)

63)

Global marketing Complementary marketing Localized marketing Nationalized marketing Countertrading

higher production costs. lower design costs. lower marketing efficiency. increased competition. higher lead times.

Which of the following is a problem associated with global marketing and advertising?

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A) B) C) D) E)

64)

difficulties in coordination and control of marketing and promotional programs differences in consumer needs and usage patterns difficulty in obtaining economies of scale in production and distribution higher advertising production costs greater inconsistency in international branding and/or corporate imaging

Which of the following are best suited to worldwide appeal?

A) products that are steeped in a country’s cultural heritage B) high-tech products with a strong local touch C) products that appeal to a market segment with widely differing tastes, interests, needs, and values D) brands or messages that require translation into different languages E) products with a nationalistic flavor if the country has a reputation in the field

65) When Frito-Lay decided to move to a global campaign to connect worldwide fans with a consistent storyline, look, and feel from the Doritos brand, it created

A) B) C) D) E)

66)

higher advertising production costs. longer lead times to introduce products into world markets. a consistent international brand image. more complex coordination of marketing and promotional programs. less-desirable economies in production and distribution.

Global ad campaigns are appropriate for

A) B) C) D) E)

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brands that play to domestic needs, values, and emotions. food- and clothing-related brands. translating advertising messages into dozens of languages. products that appeal to market segments with differing tastes. products without a nationalistic flavor.

804

67) Products such as Swiss watches, Japanese automobiles, and French wine are automatically assumed to be superior to similar products from other countries because

A) B) C) D) E)

of the halo effect. they are perceived as high-quality products owing to their high prices. of the country-of-origin effect. they lend themselves to visual and image advertising. they appeal to a market segment with universally similar tastes, interests, needs, and

values.

68) Products from countries with national reputations for quality and/or a distinctive image that can be used as the basis for global advertising capitalize on the

A) B) C) D) E)

cross-selling perception. country-of-origin effect. halo effect. placebo effect. Central Hudson test effect.

69) ________ refers to consumers’ general perceptions of the quality of products made in a given country.

A) B) C) D) E)

Cross-selling The country-of-origin effect The halo effect Global imaging The central Hudson test

70) ________ is a format where ads in a campaign follow the same basic approach but their themes, copy, and visual elements may be adjusted.

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A) B) C) D) E)

Buzz advertising Local advertising Pattern advertising Formatted advertising Ad standardization

71) The ________ approach recognizes similar desires, goals, needs, and uses for products and services but tailors advertising to the local cultures and conditions in each market.

A) B) C) D) E)

“concentrated marketing” “think globally, act locally” localized domestic decentralized marketing

72) Fitness Fervor Inc. is a company that offers products and services that aid in weight loss and maintenance. It has achieved a 50 percent market share in the United States and intends to move into international markets. The company recognizes that it has to introduce dietary products and weight-loss measures on a country-by-country basis while maintaining its existing ad campaign and strategy. In this scenario, Fitness Fervor is using

A) B) C) D) E)

a localized advertising strategy. consistency advertising. a standardized formatting strategy. pattern advertising. undifferentiated marketing.

73) Biggest Balloons Inc. is a company that offers balloons for corporate use. It moved into a new international market with an advertising campaign that was designed specifically for the market. In this scenario, Biggest Balloons is using

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A) B) C) D) E)

a localized advertising strategy. consistency advertising. a standardized formatting strategy. pattern advertising. undifferentiated marketing.

74) Which of the following statements is true of the “think globally, act locally” approach to international advertising?

A) It is synonymous with the “one company, one advertising campaign” approach. B) It is also referred to as the “glocal” advertising strategy. C) It enables the head office to retain control of aspects such as slogans, themes, and copies. D) It offers limited autonomy to regional offices. E) It is essentially a form of xenocentric advertising.

75) When market and media conditions are similar from one country to another, many companies prefer ________ of their international advertising and promotion functions.

A) B) C) D) E)

consistency and centralization coordinated decentralization synchronized centralization corresponding decentralization complete centralization

76) When a company centralizes international advertising and promotion, all decision can be made the home office. Complete centralization is likely in several situations, one of which is when a company can use a ________ advertising strategy.

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A) B) C) D) E)

combination pattern standardized domestic decentralized

77) Creative strategy development for international advertising is basically similar in process and procedure to that for a ________ advertising strategy.

A) B) C) D) E)

78)

combination pattern standardized domestic decentralized

International advertisers’ primary focus in international media has traditionally been

A) B) C) D) E)

television and radio. magazines and newspapers. television and journals. radio and newspapers. magazines and radio.

79) Readers of ________ are usually upscale, high-income individuals who are desirable target markets for many products and services.

A) B) C) D) E)

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trade papers domestic magazines international publications local trade journals independent publications

808

80)

A major development affecting broadcasting in Europe, Asia, and Latin America is

A) B) C) D) E)

global advertising. the country-of-origin effect. global marketing. direct broadcast by satellite (DBS). the privatization of media.

81) Companies prefer to ________ the international advertising and promotion function so that all decisions about agency selection, research, creative strategy and campaign development, media strategy, and budgeting are made at the firm’s home office.

A) B) C) D) E)

centralize decentralize localize globalize regionalize

82) Complete ________ of international advertising is likely when market and media conditions are similar from one country to another, when a company has only one or a few international agencies handling all of its advertising, when it can use standardized advertising, or when it desires a consistent image worldwide.

A) B) C) D) E)

localization globalization decentralization centralization regionalization

83) Miller Mechanics Inc., an American corporation, manufactures high-tech building automation systems. The company has decided to develop its advertising campaign programs and make all major strategy and budgeting decisions at the home office. Which approach is Miller Mechanics using for its international advertising? Version 1

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A) B) C) D) E)

a centralized organizational structure a regionalized organizational structure a combination structure a matrix structure a pattern structure

84) Jamel gives each of his managers, who are based in the local markets they oversee, decision-making authority over their ad agency selection, budget development, research, advertising themes, and media selection. What organizational structure is he using?

A) B) C) D) E)

a centralized organizational structure a globalized organizational structure a combination structure a decentralized organizational structure a pattern structure

85) In which of the following cases would centralization of the advertising function be a disadvantage?

A) B) C) D) E)

when an advertiser wants to maintain a consistent brand image across markets when an advertiser wants to keep control of its brand message and image when a product is categorized as a “high-technology product” with universal appeal when conditions in the various markets differ widely when a company wants to cut costs

86) Radical Inc., an international exporter, has adopted an advertising organizational structure in which each regional or local manager has the authority to make decisions regarding advertising and promotion. In this scenario, Radical is using a ________ organizational structure.

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A) B) C) D) E)

centralized decentralized matrix pattern globalized

87) The ________ approach works well in small or unique markets where headquarters’ involvement is not worthwhile or advertising must be tailored to the local market.

A) B) C) D) E)

centralized decentralized pattern globalized matrix

88) For its international advertising, Lambert & Rios Corp., a global clothing company, uses an organizational approach in which the president of its global marketing division supervises the company’s marketing program in all the host countries but still provides autonomy to local and regional marketing directors. This is an example of a

A) B) C) D) E)

centralized approach. combination of pattern advertising and regional advertising. decentralized approach. combination of the centralized and decentralized approaches. matrix network.

89) At the initial stage of an international marketing campaign, many American companies prefer to use an international ad agency based in the United States with foreign offices in other countries because

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A) U.S. agencies are more creative than foreign agencies in terms of advertising concepts. B) U.S. agencies understand world markets better than foreign agencies do. C) U.S.-based agencies give an advertiser better control of the advertising process. D) U.S.-based agencies generally understand local markets better than agencies located in these countries. E) American culture is mostly used as a basis for understanding other cultures.

90)

Global marketers are consolidating their advertising with one agency

A) B) C) D) E)

to implement the philosophies of Theodore Levitt. to eliminate economies of scale. because the importance of cultural barriers has declined significantly. because agencies now have the ability to communicate globally. to easily distribute advertising costs among the various participating countries.

91) Which of the following statements is true of a company that consolidates with an agency for its advertising?

A) B) C) D)

Consolidation helps the company in achieving cost-efficiency. Consolidation helps the company in adapting its image for each country uniquely. Consolidation helps the company to project the multiple images it wants to portray. Consolidation enables the company to have multiple brand identities throughout the

world. E) Consolidation lowers the company’s leverage over its agency.

92)

Which of the following is an advantage of using local agencies for each national market?

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A) It provides the local subsidiary with limited freedom. B) It improves morale in the host office. C) It enables marketers to hire the best talent in each market. D) It reduces diseconomies of scale. E) It is a highly cost-efficient method.

93) International companies moving toward global marketing and striving for a consistent corporate or brand image around the world should use

A) B) C) D) E)

94)

Companies are consolidating their global advertising in an effort to

A) B) C) D) E)

95)

a decentralized approach to advertising. an international agency. a pattern approach to advertising. a matrix approach. an “international boutique” system.

create a dynamic global image. gain greater leverage over their agencies. reduce economies of scale. market products that are steeped in the cultural heritage of a country. counter resistance from the local population.

The selection of an agency to handle a company’s international advertising depends on

A) B) C) D) E)

the type of marketing segmentation that the company is opting for. the company’s usage of advertising material that is prepared in the home country. the media that are permitted to be employed in foreign markets. the type of assistance it needs to meet its goals and objectives in foreign markets. the specific taxes that will be levied against advertising.

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96) Which of the following statements about making creative decisions for international advertising is true?

A) The creative approach used in a company’s primary market typically transfers well to foreign markets. B) Creative strategy development for international advertising is basically similar in process and procedure to that for domestic advertising. C) Emotional appeals such as humor work well in virtually any country, irrespective of differences in cultural backgrounds and consumer perceptions. D) A product must be positioned similarly in each market, transcending dissimilarities in consumers’ usage patterns and habits. E) Localized advertising plays no role in making creative decisions for international advertising.

97) If advertisers use a ________, they should know that humorous advertising appeals are popular in the United Kingdom, but that German consumers do not respond well to them.

A) B) C) D) E)

global marketing strategy sales promotion tactic global public relations strategy localized advertising strategy centralized marketing strategy

98) When companies follow a ________ strategy, the creative team must determine what type of selling idea, ad appeal, and execution style will work in each market.

A) B) C) D) E)

99)

global marketing pattern marketing global public relations localized advertising centralized marketing

Which of the following statements is true of German advertising?

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A) B) C) D) E)

German advertising primarily favors a fear-based approach. German advertising usually features arguments based on a product’s superiority. German advertising uses humorous appeals extensively. German advertising is typically not text heavy. German advertising typically avoids the use of rational appeals.

100) The growth of international sales promotion is attributable to the liberalization of trade, the rise of global brands, the spread of cable and satellite TV, and deregulation and

A) B) C) D) E)

global advertising. presence of a foreign multinational. global marketing. direct broadcast by satellite (DBS). privatization of media.

101) Public relations activities are needed to deal with local governments, media, trade associations, and the general public, any of which may feel threatened by

A) B) C) D) E)

102)

global advertising. the presence of a foreign multinational. global marketing. direct broadcast by satellite (DBS). the privatization of media.

Sales promotion is growing in international markets due to

A) B) C) D) E)

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the deregulation and/or privatization of media. the reduction in the number of global brands. increased global literacy. the way news media responds to press releases. greater risks taken by marketers.

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103)

Unlike advertising, which can be conducted on a global basis, sales promotion

A) B) C) D) E)

must refrain from including sales contests in global markets. is unaffected by the rise of global brands. must be adapted to local markets. must adopt consolidation. is restricted to developed countries.

104) Which of the following statements is true of the use of advertising and sales promotion in international markets?

A) Advertising can often be done on a global basis, while sales promotion must be adapted to local markets. B) Sales promotion as a localized strategy is applicable only for small firms that cannot create economies of scale. C) Advertising and sales promotion can be done either locally or globally with equal effectiveness. D) Sales promotion is most effective when done on a global basis. E) Advertising is subject to varying regulations in foreign markets, unlike sales promotion.

105)

Which of the following statements is true of international sales promotions?

A) In countries with low literacy rates, distributing coupons through print media is considered extremely effective. B) Sales promotion is the only marketing-mix element that is unaffected by the presence of legal restrictions and regulations. C) Free samples and demonstrations are widely used as effective promotional tools in developing countries. D) Sales promotions must be done on a global basis for legal reasons. E) The economic environment does not influence the use or choice of sales promotions.

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106) In many countries, sales promotion faces problems with distribution and retailers’ resistance to processing coupons, posting promotional displays, and dealing with premiums. These are sales promotion difficulties associated with the countries’

A) B) C) D) E)

107)

stages of economic development. market maturity. consumer perceptions. trade structures. legal regulations.

Which of the following statements is true of public relations?

A) It is typically considered to be a cheaper alternative to advertising. B) It is often used to deal with local media and governments. C) It typically creates a negative perception about the company among consumers. D) It is also known as publicity. E) It is synonymous with sales promotions.

108) ________ is the promotional function that deals with problems involving local governments, media, trade associations, and the people of the community.

A) B) C) D) E)

109)

Advertising Marketing Personal selling Sales promotion Public relations

Public relations activities are

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A) B) C) D) E)

110)

not effective for dealing with local or regional governments. not applicable on a global scale. used to communicate with the general community. usually expensive. a popular form of advertising.

Which of the following statements is true of the international use of the Internet?

A) The Internet cannot be efficiently used with an IMC program in the global marketplace. B) Many companies hope word-of-mouth advertising will encourage greater use of the Internet. C) The Internet is an important IMC tool for both large and small companies around the world. D) Though English is the native language for only 8 percent of the world’s population, English is the language used in close to 20 percent of all e-commerce websites. E) During its formative years, the Internet was largely an Asian phenomenon.

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Answer Key Test name: chapter 19 1) TRUE 2) FALSE 3) TRUE 4) FALSE 5) TRUE 6) FALSE 7) TRUE 8) B 9) C 10) B 11) C 12) A 13) C 14) C 15) B 16) B 17) E 18) A 19) C 20) B 21) D 22) A 23) A 24) B 25) D 26) C Version 1

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27) B 28) B 29) A 30) B 31) B 32) C 33) B 34) D 35) C 36) C 37) E 38) C 39) D 40) C 41) D 42) D 43) D 44) B 45) C 46) B 47) A 48) B 49) C 50) C 51) C 52) C 53) C 54) D 55) E 56) C Version 1

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57) A 58) B 59) D 60) C 61) A 62) A 63) B 64) E 65) C 66) A 67) C 68) B 69) B 70) C 71) B 72) D 73) A 74) B 75) E 76) C 77) D 78) B 79) C 80) D 81) A 82) D 83) A 84) D 85) D 86) B Version 1

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87) B 88) D 89) C 90) D 91) A 92) C 93) B 94) B 95) D 96) B 97) D 98) D 99) B 100) E 101) B 102) A 103) C 104) A 105) C 106) D 107) B 108) E 109) C 110) C Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) Self-regulation and control of advertising emanate from individual advertisers and their agencies.

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⊚ ⊚

true false

2) Self-regulation begins with the interaction of client and agency when creative ideas are generated and submitted for consideration. ⊚ ⊚

true false

3) Federal law requires that advertisers possess substantiation for their advertising claims before the claims are published. ⊚ ⊚

true false

4) In 2016, Facebook imposed a global ban on private gun sales on Facebook and Instagram, which is an example of self-regulation. ⊚ ⊚

true false

5) The Federal Trade Commission (FTC) is responsible for protecting businesses, but not consumers, from anticompetitive behavior and unfair and deceptive practices. ⊚ ⊚

true false

6) The Wheeler-Lea Act withdrew the Federal Trade Commission’s (FTC’s) power to regulate advertising. ⊚ ⊚

true false

Trade-oriented promotions are not subject to regulations by various agencies.

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⊚ ⊚

true false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 8) Which groups have the force of the law behind them with regard to regulating advertising?

A) B) C) D)

trade associations industry groups government agencies internal regulatory bodies

9) Legislation is being considered that would either ban or impose major restrictions on direct-to-consumer advertising of

A) B) C) D)

10)

hard liquor. cigarettes. prescription drugs. political campaigns.

Policies and procedures for industry self-regulation are established by the

A) B) C) D)

Federal Trade Commission. U.S. Postal Service. Advertising Self-Regulatory Council. Federal Communications Commission.

11) Which entity stated that it is a constitutional right for doctors to be able to advertise their services?

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A) B) C) D) E)

12)

Self-regulation of advertising has resulted in the development of

A) B) C) D)

13)

legislation of practices and standards. stringent practices and standards. lax practices and standards. non-uniform practices and standards

This entity has regulations that affect advertising going through the mail.

A) B) C) D)

14)

Supreme Court State Medical Association American Medical Association Federal Communications Commission Federal Trade Commission

Federal Communications Commission Federal Trade Commission U.S. Postal Service Federal Transportation Commission

Protection of commercial speech is provided by which amendment to the Constitution?

A) B) C) D) E)

First Second Fourth Twenty-First Twenty-Second

15) In the cases regarding advertising, the U.S. Supreme Court has ruled that freedom of expression must be balanced against

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A) B) C) D)

competition. global views. competing interests. Central Hudson.

16) What gave the Federal Trade Commission (FTC) the power to issue cease-and-desist orders and levy fines on violators?

A) Lea-Salonga Amendment B) Jim-Wheeler Amendment C) Wheeler-Lea Amendment D) Lea-Jewell Amendment

17) What protects consumers from deceptive and unsubstantiated advertising and enforces the provisions of the FTC Act that forbid misrepresentation, unfairness, and deception in general advertising at the national and regional level?

A) B) C) D)

Division of Advertising Practices Federal Communications Commission U.S. Postal Service American Bar Association

18) Exploiting vulnerable groups, such as children and older adults, in advertising is considered to be

A) B) C) D)

19)

targeted advertising. unfair advertising. ageist advertising. effective advertising.

________ is an accepted form of exaggeration in advertising.

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A) B) C) D)

20)

A promotion is considered a lottery if

A) B) C) D)

21)

Bravado Bragging Puffery Ego-centric

a prize is offered. an entry form is completed anyone can win the prize. entrants must make a purchase to win.

Sending multiple unsolicited commercial electronic messages is called

A) junking. B) stalking. C) spamming. D) glitching.

22)

Which of the following is a federal agency that controls advertising?

A) B) C) D) E)

23) that

National Advertising Review Board Better Business Bureau National Advertising Review Council Food and Drug Administration National Association of Attorneys General

In the 1966 Supreme Court decision 44 Liquormart, Inc. v. Rhode Island, the court ruled

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A) advertising alcoholic beverage prices is okay because commercial speech is protected under the First Amendment. B) advertising the prices of prescription drugs is okay because commercial speech is protected under the First Amendment. C) misleading or deceptive commercial speech is protected. D) political speech guidelines are stricter than commercial speech guidelines. E) the free flow of information depends on self-regulation.

24)

Advertisers are often supportive of voluntary self-regulation because

A) self-regulation is viewed as a way of limiting government interference in advertising. B) all clients and agencies are affected by voluntary self-regulation. C) self-regulation does not require interaction between an agency and a client. D) self-regulation results in even more stringent regulations than what state and federal agencies want. E) it is simple and less time consuming.

25)

Self-regulation begins with the interaction of client and agency when

A) B) C) D) E)

a consent order is signed. a company is charged with a lawsuit for deceptive advertising. there has been an omission of advertising substantiation. creative ideas are generated and submitted for consideration. ads are aired in foreign nations.

26) In 1977, the ________ held that state bar associations’ restrictions on advertising are unconstitutional and that attorneys have First Amendment freedom of speech rights to advertise.

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A) B) C) D) E)

Federal Trade Commission American Bar Association U.S. Supreme Court Better Business Bureau American Marketing Association

27) Which of the following statements is true of advertising by members of professional associations?

A) Both government regulatory agencies and consumer groups are against advertising by members of professional associations. B) Professional associations have always authorized advertising by their members on the basis that such promotional activities heighten members’ professional status. C) Research has shown that consumers generally disfavor the use of professional advertising. D) The Supreme Court has ruled that professionals, such as dentists and physicians, have the right to advertise. E) Professional advertising is typically considered unethical and fraudulent.

28)

Which of the following statements concerning advertising by attorneys is true?

A) The right for attorneys to advertise is protected under the First Amendment. B) The U.S. Supreme Court does not permit lawyers to advertise if they earn more than $100,000 per year. C) Ads soliciting personal injury victims help in enhancing the public’s perception of attorneys. D) The American Bar Association recently removed all restrictions on the type of advertising attorneys can use. E) Typically, traditional law firms are in favor of using advertising, particularly on TV, because they believe that it might boost a profession’s image.

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29) A number of self-regulatory mechanisms have been established by the business community in an effort to control advertising practices, and among them, the largest and best known is the

A) B) C) D) E)

Federal Trade Commission. Federal Communications Commission. Better Business Bureau. World Trade Organization. Chamber of Deputies.

30) The BBB is the largest and best known self-regulatory mechanism in the United States that has been established by the business community in an effort to control advertising practices. BBB stands for

A) B) C) D) E)

31)

Which of the following sentences is true of the Better Business Bureau (BBB)?

A) B) C) practices. D) E)

32)

Board for Business Broadcasting. Board of the Best Businessmen. Board for Betterment of Broadcasting. Better Business Bureau. Best Business Bureau.

The BBB is a federal regulatory agency that controls advertising. The BBB promotes fair advertising and selling practices across all industries. The BBB was established to handle client complaints about regional business The BBB is regulated by the American Marketing Association. Local BBBs are located in only two cities across America.

Local Better Business Bureaus (BBBs)

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A) receive and investigate complaints from consumers regarding advertising in their area. B) are located in small cities throughout the United States with populations less than 200,000. C) are government-aided agencies. D) follow a standard operating procedure for handling complaints as implemented by the Federal Trade Commission. E) are funded by the Council of Better Business Bureaus.

33) Better Business Bureaus (BBBs) provide effective control over advertising practices at the ________ level.

A) B) C) D) E)

local national global industry-wide international

34) The BBB National Programs Inc. plays a major role in controlling advertising practices at the ________ level.

A) B) C) D) E)

national local manufacturer international regional

35) The ________ plays a major role at the national level as the third-party administrator of the advertising industry self-regulatory system.

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A) B) C) D) E)

36) the

Policies and procedures for self-regulation of the advertising industry are established by

A) B) C) D) E)

37)

National Advertising Review Board BBB National Programs Inc. American Marketing Association Federal Trade Commission National Advertising Review Council

National Association of Broadcasters. Vision Council of America. National Advertising Review Council. Independent Business Alliance. Association of American Publishers.

Which of the following is the appellate unit of the Advertising Self-Regulatory Council?

A) B) C) D) E)

National Advertising Division Independent Business Alliance National Advertising Review Board American Marketing Association National Association of Broadcasters

38) Which of the following statements is true of policies and procedures established for industry self-regulation by the Advertising Self-Regulatory Council (ASRC)?

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A) The Children’s Advertising Review Unit (CARU) reviews advertising directed to children between the ages of 12 and 16. B) The National Advertising Division of the Council of Better Business Bureaus (NAD) examines advertising claims in direct-response advertising. C) The Electronic Retailing Self-Regulation Program (ERSP) examines all advertising claims excluding infomercials and home shopping channels. D) The National Advertising Division of the BBB National Programs Inc. is staffed primarily by attorneys. E) The Electronic Retailing Self-Regulation Program (ERSP) reviews advertising claims that are local in scope.

39) The ________ was formed by three advertising associations and the BBB National Programs Inc. to sustain high standards of truth and accuracy in national advertising.

A) B) C) D) E)

National Advertising Board National Advertising Review Council American Association of Advertisers Ad Council Board of Advertising Ombudsmen

40) The ________ of the BBB National Programs Inc. focuses on areas that include product performance claims, superiority claims against competitive products, and all kinds of scientific and technical claims made in countrywide advertising.

A) B) C) D) E)

National Advertising Division National Review Board National Association of Attorneys General American Marketing Association Federal Trade Commission

41) The ________ examines advertising claims in direct-response advertising, including infomercials and home shopping channels.

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A) B) C) D) E)

42)

Children’s Advertising Review Unit Vision Council of America National Association of Broadcasters Electronic Retailing Self-Regulation Program Independent Business Alliance

Which of the following statements is true of the National Advertising Division (NAD)?

A) The NAD’s advertising monitoring program only reviews complaints from local Better Business Bureaus. B) Advertisers that disagree with the NAD’s findings have an automatic right to appeal the NAD’s decision to the National Advertising Review Board. C) The NAD has no authority to direct an advertiser to stop running an ad in case the required substantiating evidence does not support the advertiser’s claim. D) Lawyers at the NAD usually seek help from local advertising agencies to find misleading advertisements. E) The NAD does not deal with complaints that come from marketers who are threatened by comparative advertising.

43) If an advertiser refuses to comply with rulings made by the National Advertising Review Board (NARB), the NARB is most likely to

A) order the advertiser to stop running the ad. B) refer the case to an industry trade association. C) refer the matter to an appropriate federal agency. D) impose a fine. E) lodge a class action suit for customers who have been in some way negatively affected by the ad.

44) Which of the following statements is true of the Electronic Retailing Self-Regulation Program (ERSP)?

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A) The mission of the ERSP is to discourage advertising and marketing in the electronic retailing industry that contains comparative advertising. B) The majority of claims reviewed under the ERSP program are for online advertising, including search media optimization and social media marketing. C) The ERSP works under the scope of the Electronic Retailing Association (ERA) to create a predisposed self-regulatory system. D) Spam e-mails along with Internet pop-up ads that lead to further e-commerce are in the ERSP’s purview as well as advertising on TV shopping channels. E) The ERSP is an initiative of the Federal Trade Commission (FTC) to work toward the self-regulation of electronic retailing.

45) The ________ is a self-regulatory program implemented by the Advertising SelfRegulatory Council (ASRC) that regulates online behavioral advertising (OBA) across the Internet.

A) Internet Advertising Review Board B) Internet Retailing Self-Regulation Program C) Council of Better Business Bureaus D) Internet-Based Advertising Accountability Program E) Information Technology Act

46)

Which of the following statements is true of online behavioral advertising (OBA)?

A) OBA permits only those advertisements that provide detailed information about an advertiser’s products and services. B) Companies engaged in OBA are monitored by the Federal Trade Commission (FTC). C) OBA is based on the seven Self-Regulatory Principles for Electronic Retailing. D) OBA uses information collected across multiple unaffiliated websites to predict a user’s preferences. E) OBA is regulated by the Electronic Retailing Self-Regulation Program (ERSP).

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47) Which of the following statements is true of the National Advertising Review Council (NARC)?

A) Cases brought to NARC are subject to extensive publicity as compared to the cases brought to court. B) It is very expensive to get a case solved through NARC. C) The NARC takes longer to solve a case when compared to the Federal Trade Commission (FTC). D) The NARC can handle cases at a lower cost as compared to a court. E) The NARC is a government agency regulating advertising agencies.

48) The ________ is a major trade association of the advertising business in the United States and has established standards of practice and its own creative code.

A) B) C) D) E)

Vision Council of America Independent Business Alliance American Association of Advertising Agencies Federal Trade Commission National Association of Broadcasters

49) Which of the following statements describes the media’s role in the self-regulation of advertising?

A) The media must accept all the advertising campaigns they receive because of the First Amendment that guarantees the freedom of speech. B) The media cannot refuse to accept advertising for an entire product class such as hard liquor. C) The media can refuse to accept individual ads they find offensive or objectionable. D) The media is expected to reject ads that are targeted toward children and older adults. E) The broadcast is required by law to reject political ads.

50) Certain magazines regularly test the products they advertise and offer a “seal of approval” and refunds if the products are later found to be defective. They do so in order to Version 1

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A) B) C) D) E)

enhance the credibility of the publication. encourage advertisers to buy more media space. eliminate puffery in their ads. discourage comparative advertising. avoid questionable advocacy advertising.

51) Advertising on television and radio was initially regulated through codes developed by the ________ until the courts found that portions of its regulations were in restraint of trade.

A) B) C) D) E)

National Advertising Review Board Federal Trade Commission Federal Communications Commission National Association of Broadcasters Standards and Practices Division

52) Which of the following media has the most stringent review and approval process for advertising?

A) B) C) D) E)

53)

community radio business magazines newspaper and trade publications the Internet the four major television networks

Television advertising is

A) B) C) D) E)

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typically not used to advertise hard liquor. regulated through codes developed and enforced by the Federal Trade Commission. regulated by affiliate networks. more stringently self-regulated than any other medium. considered a declining advertising medium.

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54) A very frustrating, and often expensive, scenario for both an agency and its client occurs when a commercial

A) B) C) D) E)

55)

is rejected at the storyboard stage. that was rejected at the storyboard stage is accepted at the final stage. is rejected for reasons such as sex, politics, and religion. is approved at the storyboard stage but then is rejected after it is produced. is rejected at the idea-generation stage.

Which of the following statements about self-regulation by media is true?

A) Most commercials once rejected cannot be rerun. B) Network standards regarding acceptable advertising have remained constant over the past 30 to 40 years. C) Advertising for contraceptives is completely banned on all networks since 1995. D) Television is probably the most carefully scrutinized of all forms of advertising. E) Network standards have become more stringent in response to competition from independent and cable stations.

56) The three major participants in the advertising process that work individually and collectively to encourage truthful, ethical, and responsible advertising are

A) B) C) D) E)

57)

advertisers, advertising review boards, and the cable operators. creative boutiques, copywriters, and consumer panels. consumer panels, advertisers, and agencies. advertisers, advertising agencies, and the media. advertisers, the government, and the television networks.

Which of the following statements is true of self-regulation of advertising?

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A) Self-regulation of advertising is typically restricted to liquor and tobacco advertisements. B) Self-regulation was initially introduced to eliminate the problem of puffery. C) Self-regulation of advertising has led to the development of more lenient standards and practices than those imposed by the legislation. D) The advertising industry views self-regulation as an effective mechanism for controlling advertising abuses. E) The advertising industry prefers government intervention over self-regulation.

58) ________, as defined by the First Amendment to the U.S. Constitution, is the most basic federal law governing advertising in the United States.

A) B) C) D) E)

59)

Freedom of using any media vehicle Freedom to advertise Freedom to stop the airing of any advertisement Freedom of speech Freedom of press

The courts have extended First Amendment protection to

A) commercial speech, a speech that promotes a commercial transaction. B) advertisers to enable them to sue the media for not providing them with the promised reach and frequency. C) the findings of marketing research studies. D) advertisers who want to use delusory wording in their ads. E) advertisers who do not want to be self-regulated.

60)

Commercial speech is most accurately defined as

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A) B) C) D) E)

an encoding and decoding tool for commercial communications. communication that promotes a commercial transaction. a type of comparative advertising used in TV commercials. an advertising component of broadcast media. speech governed by the Fifth Amendment to the U.S. Constitution.

61) The U.S. Supreme Court established the ________, a four-part test to determine restrictions on commercial speech.

A) B) C) D) E)

62) Act.

Federal regulation of advertising originated in 1914 with the passage of the ________

A) B) C) D) E)

63)

Virginia Consumer Council Test Free Speech Matrix First Amendment Analysis California Test of Affirmation Central Hudson Test

Information Technology Advertising Self-Regulatory Federal Consumer Protection Federal Trade Commission Central Hudson

Under the original Federal Trade Commission Act of 1914, the FTC

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A) was given the power to issue cease-and-desist orders against firms engaging in deceptive practices. B) was given the power to pursue corrective advertising remedies to deceptive practices. C) could not prohibit false advertising unless there was evidence of injury to a competitor. D) was given the power to regulate all false and deceptive advertising practices that might injure competition or mislead consumers. E) could not enforce antitrust laws or protect major competitors from one another.

64) The ________ empowered the Federal Trade Commission to regulate unfair or deceptive practices in commerce including those in advertising.

A) B) C) D) E)

Lanham Amendment Sherman and Clayton Antitrust Act Wheeler-Lea Amendment Food and Drug Administration Act Consumer Protection Act

65) The ________ gave the Federal Trade Commission (FTC) the power to issue cease-anddesist orders and levy fines on violators.

A) B) C) D) E)

66)

Central Hudson Test National Advertising Review Board Lanham Act Wheeler-Lea Amendment Sherman Antitrust Act

The three major divisions of the Federal Trade Commission (FTC) are the bureaus of

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A) B) C) D) E)

employment, national security, and trade. governance, compliance, and cooperation. regulation, restriction, and economic reconstruction. economics, consumer protection, and competition. distribution, distillation, and consumer diversity.

67) Which of the following divisions of the Federal Trade Commission (FTC) deals with antitrust and consumer protection investigations?

A) B) C) D) E)

Bureau of Economics Bureau of Compliance National Advertising Review Board Bureau of Reconstruction Trade Regulation Bureau

68) The ________ is the division of the Federal Trade Commission (FTC) that is responsible for investigating cases involving deceptive or misleading advertising.

A) B) C) D) E)

Bureau of Economics Bureau of Competition National Advertising Review Board Bureau of Consumer Protection Trade Regulation Bureau

69) Which of the following divisions of the Federal Trade Commission (FTC) protects consumers from deceptive and unsubstantiated advertising and enforces the provisions of the FTC Act that forbid misrepresentation, unfairness, and deception in general advertising at the national and regional level?

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A) B) C) D) E)

Division of Consumer Advertising & Protection Division of Advertising Broadcasts Division of Marketing Practices Division of Advertising Practices Division of Economic Practices

70) The Federal Drug Administration has forced a number of companies to run corrective ads as a remedy for

A) B) C) D) E)

false and misleading ad campaigns. not providing the proper disclaimers. not identifying the name of the company. not recognizing FDA approval. bashing competitors’ products.

71) The ________ test considers whether consumers are left with a latent impression that would continue to affect buying decisions and whether corrective ads are needed to remedy the situation.

A) B) C) D) E)

SOUP Unfair Practices STP Magnuson-Moss Warner-Lambert

72) Over the past decade the FTC has focused its attention on the enforcement of existing regulations in areas such as

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A) B) C) D) E)

telemarketing and Internet privacy. magazines and newspapers. infomercials and video on demand. radio and television. public relations and publicity.

73) According to Federal Trade Commission (FTC) policy, the basis for determining ________ is that a trade practice causes substantial physical or economic injury to consumers, could not reasonably be avoided by consumers, and must not be outweighed by countervailing benefits to consumers or competition.

A) B) C) D) E)

unfairness deception puffery affirmative disclosure cease-and-desist orders

74) Gretchen learned that an ad her team worked on for a client was not being allowed to air because it was profane and in poor taste. Which agency has the authority to purge ads that are profane, deceptive, or misleading?

A) B) C) D) E)

FDA FCC US Post Office ATF Supreme Court

75) ________ has been legally defined as “advertising or other sales presentations which praise the item to be sold with subjective opinions, superlatives, or exaggerations, vaguely and generally, stating no specific facts.”

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A) B) C) D) E)

Deceptive advertising Unfairness Comparative advertising Puffery Affirmative disclosure

76) Scrumptious Inc., an American food and beverages company, claims that “Scrumptious makes the world’s best chocolate frosting.” This is an example of

A) B) C) D) E)

sales promotion. superiority advocacy. puffery. comparative advertising. trickery.

77) Esme Inc., a manufacturer of cosmetics, ran an ad campaign in which it claimed that Esme’s “Vivid” range of water-proof mascara is the best mascara in the world. It also claimed that the mascara gives 10 times more volume to the eyelashes and provides more definition to the eyes than any other mascara brand. This campaign is an illustration of

A) B) C) D) E)

78)

deception. superlative advertising. unfairness. puffery. unethical advertising.

Which of the following is the best example of the use of puffery in advertising?

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A) A bank advertises free checking with a minimum balance of $1,000. B) A tire manufacturer advertises a 50,000-mile guarantee for its tires. C) A manufacturer of premium chocolates claims that it makes the finest chocolates in the world. D) A popular shampoo brand advertises that it has been proven to be effective in preventing dandruff. E) A provider of courier services advertises guaranteed overnight delivery service.

79)

The use of superlatives such as “greatest,” “best,” and “finest” in advertising constitutes

A) B) C) D) E)

80)

The Federal Trade Commission (FTC) takes the position that

A) B) C) D) E)

81) of

an unfair claim. puffery. deception. an affirmative disclosure. advertising substantiation.

consumers cannot distinguish between factual information and puffery. puffery has a detrimental effect on consumers’ purchase decisions. consumers recognize puffery and don’t believe it. puffery is illegal under the Wheeler-Lea Act. consumers believe in puffery.

Snapple’s claim that its beverages are “made from the best stuff on Earth” is an example

A) B) C) D) E)

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an unfair claim. puffery. deception. an affirmative disclosure. advertising substantiation.

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82) The Federal Trade Commission defines ________ as an express or implied statement contrary to fact.

A) B) C) D) E)

selective exposure affirmative disclosure selective retention misrepresentation comparative disclosure

83) According to the Federal Trade Commission, ________ exists if there is a misrepresentation, omission, or practice that is likely to mislead the consumer acting reasonably in the circumstances to the consumer’s detriment.

A) B) C) D) E)

puffery affirmative disclosure selective retention deception selective disclosure

84) According to the Federal Trade Commission, ________ occurs when qualifying information necessary to prevent a practice, claim, representation, or reasonable belief from being misleading is not disclosed.

A) B) C) D) E)

misinterpretation affirmative disclosure coercion misleading omission fraud

85) The key elements in the Federal Trade Commission’s definition of deception are that the representation, omission, or practice must be likely to mislead the reasonable consumer and that it must have

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A) B) C) D) E)

materiality. selective exposure. selective retention. puffery. peripheral importance.

86) According to the Federal Trade Commission’s definition of deception, a representation, omission, or practice has materiality if it

A) B) C) D) E)

is seen by a substantial number of consumers leading to significant injury. can be decoded to have several different meanings. is likely to influence consumers’ purchase decisions. uses superlatives and can be substantiated. can influence the consumers’ decision-making process in a detrimental way.

87) Which of the following factors does the Federal Trade Commission (FTC) consider in evaluating an ad for deception?

A) B) C) D) E)

presence of superlative words in the advertisement significant omissions of important information lack of selective disclosure presence of puffery in the advertisement violation of trade regulation rule

88) Under its affirmative disclosure requirement, the Federal Trade Commission may require advertisers to include certain types of information in their ads so that

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A) consumers can substantiate the claims made for advertisers’ product or service. B) consumers will be aware of all the consequences and limitations associated with the use of a product or service. C) consumers’ choice or conduct with regard to a product or service will remain unaffected. D) consumers can distinguish exaggeration or inflated claims in advertising and also recognize puffery. E) consumers can easily understand any technical data or information provided.

89)

The goal of affirmative disclosure is to

A) B) C) D) E)

avoid ads that might be offensive or misleading to consumers. give consumers sufficient information to make an informed decision. protect advertisers from suits involving accuracy of advertising claims. restrict the content of attorney ads and necessitate a disclaimer. enhance consumer confidence in advertisements.

90) In 1971, the Federal Trade Commission’s ________ program required advertisers to have supporting documentation for their claims and to prove the claims are truthful.

A) B) C) D) E)

Central Hudson Lanham cease-and-desist advertising substantiation affirmative disclosure

91) The Federal Trade Commission’s advertising substantiation program now requires advertisers to substantiate their claims

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A) within one month of the appearance of an ad. B) if an ad does not provide sufficient information to consumers so as to make an informed decision. C) if an ad uses puffery. D) before an ad appears. E) if an ad runs for more than six months.

92) The Federal Trade Commission’s advertising substantiation program has had a major effect on the advertising industry because it

A) B) injuries. C) D) E)

simplified the advertising decision-making process. led to fewer liability litigations involving products that are associated with consumer enabled advertisers to make accurate advertising claims. shifted the burden of proof from the commission to the advertiser. increased consumer confidence in all advertising claims.

93) The Federal Trade Commission (FTC) requires advertising for any product that is sweetened with saccharin to contain a warning that it may be hazardous to one’s health. This requirement falls under the FTC’s ________ requirement.

A) B) C) D) E)

misleading omission advertising substantiation elimination of puffery cease-and-desist materiality

94) Which of the following Federal Trade Commission (FTC) programs requires firms to verify the veracity of product information before making any advertising claims about the product?

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A) B) C) D) E)

corrective advertising implied uniqueness comparative advertising affirmative disclosure advertising substantiation

95) The Federal Trade Commission (FTC) requires the advertisers for The Atkins Diet prove their products promote weight loss. This requirement falls under the FTC’s ________ requirement.

A) B) C) D) E)

misleading omission advertising substantiation elimination of puffery cease-and-desist materiality

96) A(n) ________ is an agreement to stop the practice or advertising in question, is for settlement purposes only, and does not constitute an admission of guilt by an advertiser.

A) B) C) D) E)

97)

cease-and-desist order consent order ad substantiation agreement affirmative disclosure order injunction

Which of the following statements is true of a consent order?

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A) The signing of a consent order constitutes an admission of guilt by an advertiser. B) If an advertiser refuses to sign a consent order, the inquiry is handed to the U.S. Department of Justice. C) A consent order is for settlement purposes only. D) A consent order prohibits an advertiser from making a specified advertising claim for 30 days. E) A consent order leads to adverse publicity.

98) Under the Wheeler-Lea Amendment, the Federal Trade Commission is empowered to stop an advertiser from making a specified claim within 30 days and prohibit the advertiser from engaging in the objectionable practice until after a hearing is held. This is known as

A) B) C) D) E)

99)

a consent order. injunctive power. a cease-and-desist order. corrective advertising. advertising substantiation.

Cease-and-desist orders

A) B) C) D) E)

are used to regulate public service announcements. require an advertiser to run comparative advertisements. are issued by the Federal Trade Commission. are made legally binding by the Robinson-Patman Act. do not impose punishments upon violation.

100) The Federal Trade Commission program that requires an advertiser who is found guilty of deceptive advertising to run additional advertising to remedy the deception or misinformation contained in previous ads is known as

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A) B) C) D) E)

the fairness doctrine. ad substantiation. affirmative disclosure. corrective advertising. the puffery dogma.

101) The origin of the Federal Trade Commission’s corrective advertising program came from a deceptive advertising case involving

A) B) C) D) E)

Listerine. Ocean Spray Cranberry Juice. Campbell Soup. STP Corporation. McDonald’s.

102) Which of the following programs is likely to be the most controversial of all the Federal Trade Commission’s programs?

A) B) C) D) E)

ad substantiation implied uniqueness puffery legitimization advertising deregulation corrective advertising

103) The ________ is a federal agency that was founded in 1934 to regulate broadcast communication and that has jurisdiction over the radio, television, telephone, and telegraph industries.

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A) B) C) D) E)

104)

Federal Trade Commission Federal Communications Commission Fairness Doctrine U.S. Postal Service National Association of Broadcasters

Under the Children’s Television Act,

A) advertising aimed at children is prohibited. B) advertising during children’s programming is limited to 12 minutes an hour on weekdays. C) broadcasters are required to provide time for opposing viewpoints on important issues. D) advertisers have no restrictions on the amount of advertising aimed at children. E) the Federal Communications Commission (FCC) can fine advertisers who exceed advertising limits as defined by the act.

105) Under the Reagan administration, the controversial ________, which required broadcasters to provide time for opposing viewpoints on important issues, was repealed on the grounds that it was counterproductive.

A) B) C) D) E)

Deception Doctrine Misinterpretation Dogma Affirmative Disclosure Doctrine Fairness Doctrine Substantiation Dogma

106) Under the ________, the Federal Communications Commission (FCC) required stations to run commercials about the harmful effects of smoking.

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A) B) C) D) E)

Substantial Omission Doctrine Misinterpretation Doctrine Affirmative Disclosure Doctrine Fairness Doctrine Substantiation Doctrine

107) The ________ is the federal agency that has authority over the labeling, packaging, branding, ingredient listing, and advertising of packaged foods and drug products, as well as cosmetics.

A) B) C) D) E)

Federal Food and Drugs Commission Federal Commission for Substance Abuse Control U.S. Commission for Food, Drugs, and Cosmetics Bureau of Alcohol, Tobacco, and Firearms Food and Drug Administration

108) In 1996, President Clinton signed an executive order declaring that nicotine was an addictive drug and gave the ________ board jurisdiction to regulate the advertising of cigarettes and smokeless tobacco.

A) B) C) D) E)

U.S. Commission for Food and Drugs Federal Trade Commission Bureau of Alcohol, Tobacco, and Firearms Food and Drug Administration Tobacco Institute

109) The ________ has control over advertising involving the use of the mail and ads that involve lotteries, obscenity, or fraud.

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A) B) C) D) E)

U.S. Postal Service Federal Communications Commission National Association of Attorneys General Federal Trade Commission U.S. Department of Welfare

110) The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) is an agency within the ________ that enforces laws, develops regulations, and is responsible for tax collection for the liquor industry.

A) B) C) D) E)

111)

Which of the following agencies is responsible for tax collection for the liquor industry?

A) B) C) D) E)

112)

Department of Internal Affairs Better Business Bureau Department of Commerce Food and Drug Administration Treasury Department

Federal Commission for Substance Abuse Control Food and Drug Administration Bureau of Alcohol, Tobacco, Firearms and Explosives Federal Trade Commission National Association of Attorneys General

The ________ regulates and controls the advertising of alcoholic beverages.

A) B) C) D) E)

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Federal Commission for Substance Abuse Control Food, Alcohol, and Drug Administration Bureau of Alcohol, Tobacco, Firearms and Explosives Federal Trade Commission National Association of Attorneys General

856

113) The ________ is a government regulation that is increasingly being used by companies to file lawsuits against competitors they believe are making false claims.

A) B) C) D) E)

Federal Trade Commission Act Wheeler-Lea Amendment Lanham Act Robinson-Patman Act Clayton Antitrust Act

114) Garrett Inc., an oil retailer, claimed its Clear Index gasoline cleaned car engines, boosted mileage, and reduced pollution emissions better than any other gas. Vaughn Corp., an energy corporation, contended that its products were just as good as Garrett’s. The ________ is likely to make it easier for Vaughn to sue Garrett for this perceived misrepresentation.

A) B) C) D) E)

Wheeler-Lea Amendment Federal Trade Commission Improvements Act Clayton Antitrust Act Lanham Act Competitor Trademark Act

115) Roberto’s, a pizzeria, claimed in its print and television ads that its pizza was made from the best ingredients and tasted better than Pacifix Crust’s pizza. Pacifix Crust can launch a civil suit against Roberto’s for false and misleading advertising under the ________ Act.

A) B) C) D) E)

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Federal Trade Commission Wheeler-Lea Lanham Robinson-Patman Clayton Antitrust

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116) Wagner Tire, a manufacturer of tires, is developing an advertising campaign that will claim that cars using its new RX model stop 25 percent faster on wet surfaces when compared to other brands of tires. The company must conduct careful studies to provide support for the claim because

A) the Federal Trade Commission may sue Wagner for comparative advertising. B) Wagner’s competitors may sue the company under the Lanham Act if it cannot substantiate its claims. C) the Better Business Bureau may sue Wagner if it cannot substantiate its claims. D) the Federal Trade Commission may charge Wagner for using puffery, which is an illegal form of advertising. E) the consumers may sue the company for the nonsubstantiation of the ad.

117) Alyssa was asked to edit her team’s testimonial ad so it would include a disclosure that said, “Results not typical.” Which agency scrutinizes the use of testimonial ads and asks for this type of disclosure in situations where the outcomes vary substantially?

A) B) C) D) E)

U.S. Post Office Supreme Court FCC FTC Trademark Registrars

118) Which of the following is an important early development in state regulation that is used in 44 states as a basis for advertising regulation?

A) B) C) D) E)

Printers Ink model statutes Better Business Bureau guidelines Wheeler-Lea Amendment Consortium of Trade Association’s regulations Fifth Amendment rectifications

119) The ________ moved against a number of national advertisers as a result of inactivity by the Federal Trade Commission (FTC) during the Reagan administration. Version 1

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A) B) C) D) E)

Better Business Bureau National Advertising Review Council National Advertising Review Board National Association of Attorneys General Federal Communications Commission

120) Many areas of sales promotions are regulated by the ________ through the Marketing Practices Division of the Bureau of Consumer Protection.

A) B) C) D) E)

Federal Communications Commission Food and Drug Administration Federal Trade Commission U.S. Justice Department Promotional Products Marketing Association

121) This agency has stepped up its efforts to stop fraud that targets financially distressed customers and to protect consumers’ online privacy.

A) B) C) D) E)

Federal Communications Commission Food and Drug Administration Federal Trade Commission U.S. Justice Department Promotional Products Marketing Association

122) If a participant is required to give up something of value in order to participate in a game or sweepstakes, then ________ is present, and the promotion is considered a lottery.

A) B) C) D) E)

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misrepresentation consideration deception enticement remuneration

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123) Raiment Sportswear, a clothing manufacturer specializing in sportswear, has developed a “Super Bowl Sweepstakes” that it plans to promote during the football post-season. To avoid having this promotion classified as a lottery, Raiment should

A) not make premium offers to special audiences such as children. B) offer only merchandise and no cash as part of the sweepstakes prizes. C) not require that consumers buy one of their products as a condition for entering the sweepstakes. D) run the promotion only in the state where the Super Bowl is being held. E) avoid comparative advertising.

124)

A promotion such as a contest or sweepstakes can avoid being considered a lottery by

A) conducting the contest or sweepstake only at the regional level and not national level. B) C) D) E)

providing full disclosure. not requiring consideration to be present. publishing the odds of winning. ensuring puffery is avoided in advertisements.

125) A study by the Children’s Advertising Review Unit (CARU) found that the most prevalent violation of its voluntary advertising guidelines occurred with ________ aimed at children.

A) B) C) D) E)

rebates and refunds premiums trade allowances discounts contests and sweepstakes

126) Marketers’ use of trade allowances is controlled by the ________, which prohibits price discrimination.

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A) B) C) D) E)

Federal Trade Commission Act Lanham Act Robinson-Patman Act FDA Act Wheeler-Lea Amendment

127) The ________ determined that POM Wonderful LLC had made unsubstantiated claims about the health benefits of its pomegranate juice.

A) B) C) D) E)

FTC FCC FDA ATF BBB

128) The Federal Trade Commission (FTC) and U.S. Postal Service have rules that govern the use of ________ plans whereby a company proposes to send merchandise to consumers and expects payment unless a consumer sends a notice of rejection or cancellation.

A) B) C) D) E)

unsolicited order negative option contradictory option false substitution unsubstantiated order

129) The ________ was established as part of the 1998 tobacco settlement and is dedicated to reducing tobacco use.

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A) B) C) D) E)

Direct Marketing Reform Agency Telephone Consumer Protection Agency Direct Selling Association American Legacy Foundation Federal Telemarketing Reform Agency

130) In 2014, ________ changed its policy to prohibit marketers from “like-gating” a page to gain access to content or enter a contest.

A) B) C) D) E)

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Facebook Snapchat LinkedIn Twitter Pinterest

862

Answer Key Test name: chapter 20 1) TRUE 2) TRUE 3) TRUE 4) TRUE 5) FALSE 6) FALSE 7) FALSE 8) C 9) C 10) C 11) A 12) B 13) C 14) A 15) C 16) C 17) A 18) B 19) C 20) D 21) C 22) D 23) A 24) A 25) D 26) C Version 1

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27) D 28) A 29) C 30) D 31) B 32) A 33) A 34) A 35) B 36) C 37) C 38) D 39) B 40) A 41) D 42) B 43) C 44) D 45) D 46) D 47) D 48) C 49) C 50) A 51) D 52) E 53) D 54) D 55) D 56) D Version 1

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57) D 58) D 59) A 60) B 61) E 62) D 63) C 64) C 65) D 66) D 67) A 68) D 69) D 70) A 71) E 72) A 73) A 74) B 75) D 76) C 77) D 78) C 79) B 80) C 81) B 82) D 83) D 84) D 85) A 86) C Version 1

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87) B 88) B 89) B 90) D 91) D 92) D 93) B 94) E 95) B 96) B 97) C 98) C 99) C 100) D 101) C 102) E 103) B 104) B 105) D 106) D 107) E 108) D 109) A 110) E 111) C 112) C 113) C 114) D 115) C 116) B Version 1

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117) D 118) A 119) D 120) C 121) C 122) B 123) C 124) C 125) B 126) C 127) C 128) B 129) D 130) A Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) An action that is legal is always ethical. ⊚ ⊚

true false

2) The American Advertising Federation requires that members of the team creating ads should be given permission to express internally their ethical concerns. ⊚ ⊚

true false

3) Critics argue that advertising plays a major role in influencing and transmitting social values. ⊚ ⊚

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true false

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4) Critics of advertising argue that consumers ignore ads for products and services they do not really need or that fail to interest them. ⊚ ⊚

true false

5) Advertising has been guilty of stereotyping women and ethnic groups in the past and, in some cases, still does so. ⊚ ⊚

true false

6) The International Advertising Association has been running a campaign for several years to convince consumers around the world of the economic value of advertising. ⊚ ⊚

true false

7) The global campaign launched by the American Advertising Federation (AAF) was targeted at members of the creative teams in ad agencies who were primarily responsible for the message and presentation. ⊚ ⊚

true false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 8) A particular action may be within the law and still not be ethical. For example, ________ laws restrict tobacco companies from targeting advertising and promotion for new brands to a select group.

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A) B) C) D) E)

local international national no state

9) Most advertisers do not design their messages with the intention to mislead or deceive consumers. Alcohol advertising is regulated by the

A) B) C) D) E)

10)

Tobacco and Trade Bureau (TTB). Tobacco and Tax Bureau (TTB). Tobacco Tax and Trade Bureau (TTB). Tobacco Trade and Tax Bureau (TTB). Trade and Tobacco Tax Bureau (TTB)

Untruthful or fraudulent advertising and promotion exist more at the ________ level.

A) B) C) D)

local state national international

11) Evaluating the credibility of information received by youth is a responsibility for marketing and advertisers. According to the ________, advertisers have a special responsibility to protect children from their own susceptibilities.

A) B) C) D) E)

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Children’s Advertising Review Unit Children’s Marketing Review Center Center for Children’s Advertising Review Children’s Marketing Review Unit Center for Advertising Review

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12) A recent survey of 33,000 people showed that the level of trust for both traditional and search media hit an all-time high of 65 percent. Nevertheless, the trust in media ________ remains the lowest of any institution trusted worldwide.

A) B) C) D) E)

13)

locally internationally nationally domestically by state

Which of the following statements is true of advertising and promotion?

A) B) C) D) E)

They are the most visible of all business activities. They are less common in a free-market economy. They are not subject to governmental regulation. The methods they use are less prone to scrutiny. They are the least prevalent of all marketing tools.

14) ________ are moral principles and values that govern the actions and decisions of an individual or group.

A) B) C) D) E)

15)

Regulations Guidelines Policies Ethics Norms

Which of the following statements is true of the relationship between law and ethics?

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A) B) C) D) E)

All ethical actions are legal. An action may be within the law and still not be ethical. Legal actions are typically not treated as ethical actions. Ethical actions will not have legal implications. All legal actions are ethical.

16) A lapse in ethical standards or judgment in advertising and promotion can be more damaging to a company than a lapse in other disciplines. Which of the following is a reason for this?

A) Advertising and promotional actions are highly visible and subject to scrutiny. B) Advertising and promotion are the least expensive of all marketing efforts. C) Customers are more aware of the activities within an organization than they are of its marketing techniques. D) Governments do not regulate the flow of information in the other disciplines. E) There is a two-way interaction between marketers and audience in advertising and promotion.

17) Stall 5 Inc. claims to be a marketing services provider. It posts online ads that offer freebies to viewers who are willing to sign up for its newsletter. It tricks viewers into providing personal information and delivers no freebies or services in return. Critics of advertising are likely to call this a(n) ________ ad.

A) B) C) D) E)

offensive distasteful boring ethical deceptive

18) ScH Corp., a pharmaceutical company, launches a new painkiller. It claims that the product provides relief within two minutes due to its unique ingredients. Tests reveal that ScH’s painkiller contains the same ingredients as those of its competitors and that relief is not guaranteed in all cases. Critics would classify this as a(n) ________ advertisement.

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A) B) C) D) E)

ethical odious deceptive offensive asocial

19) A study by John Wirtz analyzing thousands of participants’ reactions to sexy ads found that sexy ads were remembered for longer and they had ________ impact on sales.

A) B) C) D) E)

a major a minor no a minimal a huge

20) When advertisers make false or misleading claims or fail to award prizes promoted in a contest or sweepstakes, their ads are likely to be labeled as

A) B) C) D) E)

21)

deceptive. playful. childish. intrusive. ineffective.

A common criticism of inappropriate sexual appeals in advertisements is that they

A) B) C) D) E)

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are deceptive in nature. mislead consumers. are conservative and boring. make false claims. demean women.

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22) Which of the following are critics of advertising likely to state as a reason that marketers engage in deceptive advertising?

A) Most products in the market are not of good quality. B) Advertisers usually present only information that is favorable to their position. C) The National Advertising Review Council does not regulate deceptive advertisements. D) Studies have found that deceptive advertisements increase sales drastically. E) Unlike other unethical practices, deceptive advertising has no legal implications.

23)

Which of the following statements is true of advertising for condoms?

A) States prohibit advertising condoms unless it is part of a health campaign. B) Ads for condoms are permitted on cable television but not on the major networks. C) Ads for condoms are considered offensive and are legally prohibited from appearing in print media. D) Health-oriented ads are not as well received by conservatives as are entertaining ads. E) Condom ads were shown only in late-night time slots until recently.

24) An automobile dealer gives away promotional calendars to customers. The calendars show scantily clad female models posing suggestively alongside expensive cars. Critics of advertising would argue that such calendars are

A) B) C) D) E)

untruthful. misleading. deceptive. in poor taste. antisocial.

25) Which of the following is the right classification for advertisements that project sexually appealing images that don’t have much relevance to the products that they advertise?

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A) B) C) D) E)

deceptive advertising misleading advertising offensive advertising untruthful advertising ethical advertising

26) The advertising appeals that have received the most criticism for being in poor taste are those using

A) B) C) D) E)

misrepresentations. violence. sexual appeals. deceptive claims. celebrities.

27) According to research, which of the following products have the reputation of producing the most irritating commercials?

A) B) C) D) E)

soft drinks industrial machinery alcoholic beverages feminine hygiene products insurance services

28) Advertisers continue to use sexual appeals to advertise products such as beer, cigarettes, and cosmetics despite increased criticism from all corners. Which of the following reasons best explains this advertising trend?

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A) Sexual appeals in ads can help draw consumers’ attention to the brands being advertised. B) Sexual appeals have a strong association with these kinds of products. C) Sexual appeals in ads are perceived as relevant and acceptable by men and women equally. D) Sexual appeals are common in movies and TV shows and have thus become necessary in ads. E) Sexual appeals offer a strong positioning strategy that results in greater brand loyalty.

29) The type of advertising appeals that have received the most criticism for being in poor taste are

A) B) C) D) E)

ads targeted at children. fear appeals used to sell beauty products. ill-humored ads that make fun of the socially inept. ads that use sex or nudity. unfair comparative ads used by competing brands.

30) In ________, marketers use nudity, sexual suggestiveness, or other startling images to get consumers’ attention.

A) B) C) D) E)

31)

surrogate advertising open advertising shock advertising covert advertising classified advertising

Advertisers use shock advertising primarily to

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A) B) C) D) E)

increase the brand association of certain products. get consumers’ attention amid the clutter. create an ethical model of shock advertising for others to follow. avoid controversy and scrutiny and deliver a direct message. reach conservative or older audiences.

32) Manufacturers of products such as beer often use nudity, sexual suggestiveness, or other startling images to get consumers’ attention. Which of the following terms best represents this practice?

A) B) C) D) E)

covert advertising surrogate advertising open advertising shock advertising hidden advertising

33) Print ads for Brooke’s Clothing Inc. often include nude pictures and content that is sexually suggestive. Which of the following types of advertising is Brooke’s using?

A) B) C) D) E)

34)

shock advertising surrogate advertising open advertising covert advertising hidden advertising

Advertisers spend billions of dollars each year to reach children because

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A) B) C) D) E)

they are not vulnerable to advertising. their direct purchases are influenced by ads. they can easily interpret the selling intent of a message. they do not have much influence on their family’s spending. products made for children are more saleable.

35) Critics state that advertising to children is inherently unfair and deceptive and should be banned or severely restricted. Which of the following statements supports this argument?

A) B) C) D) E)

Most advertisements shown in traditional media contain nudity. Children have a limited ability to interpret the selling intent of a message. Most advertisements shown in traditional media contain violence. Children do not have spending power though they can identify products. The consumer socialization process is slower in children than in adults.

36) Nina argues that it is unfair and deceptive to advertise to children. Which of the following statements is likely to strengthen her argument?

A) B) C) D) E)

37)

Children can differentiate between commercials and programs. Children can perceive the selling intent of commercials. Children require no guidance to distinguish between reality and fantasy. Children require cognitive defenses against misleading advertisements. Children require their parents to make the actual purchase.

Which of the following best describes the consumer socialization process?

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A) It refers to how marketers influence consumers to move from need recognition to final purchase. B) It explains why consumers will never completely abandon department store shopping for online shopping. C) It explains how marketers engage consumers in relationship marketing. D) It refers to consumers acquiring the skills needed to function in the marketplace. E) It refers to marketers studying consumers’ social skills to understand the market.

38) From an advertising perspective, which of the following statements best explains why critics might be opposed to the use of commercial characters or brand mascots as stars of TV shows?

A) B) C) D) E)

Preschool children cannot differentiate between commercials and programs. Such shows come with requirements for parental guidance and control. Such shows contain violence that is unsuitable for preschool children. There are too many commercial slots in these shows. Children needn’t understand advertising to use their cognitive defenses against them.

39) Maya argues that advertising to children is unethical. If Talia disagrees with her, which of the following arguments offered by Talia is the most plausible?

A) B) C) D) E)

Young children can differentiate between advertisements and programs. Children can differentiate between reality and fantasy. Children can use their cognitive defenses against misleading ads. Existing restrictions are enough to control children’s advertising. Advertising is a part of life and children must learn to deal with it.

40) Which of the following statements is true of the Children’s Advertising Review Unit (CARU)?

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A) It is a division of the Federal Trade Commission. B) It limits its review to print media; it does not cover special effects and animation. C) It has strict regulatory guidelines for product presentations directed to children. D) It supervises the advertisements in the United States rather than issuing selfregulatory guidelines. E) It bases its regulations on the protection of children’s rights as defined by the Constitution.

41) Which of the following justifications did marketing and advertising trade groups use to defend themselves against the American Psychological Association’s (APA’s) restrictions on advertising?

A) decisions. B) C) D) E) children.

Parents of younger children, rather than the children themselves, make purchase Products for children are also commercial merchandise that requires advertising. Products for children require more awareness than other commercial products. Children are less aware of their needs compared to adults. Viewing such advertisements is a part of the consumer socialization process in

42) Which of the following is a condition that exists in the Children’s Advertising Review Unit (CARU) guidelines for advertising?

A) Manufacturers of baby-care products should not advertise their products through fictional characters. B) Children’s toys should be advertised only in print media. C) Advertisers should be cautious not to run baby-care advertisements during prime time. D) Advertisements targeting children should be withdrawn from mainstream channels. E) Care should be taken to incorporate minority and other groups in advertisements.

43) The Children’s Advertising Review Unit (CARU) guidelines urge that products and content inappropriate for children should not be advertised or promoted

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A) B) C) D) E)

directly to children. through mainstream channels. to children or their parents. through traditional media. during prime time.

44) The Children’s Advertising Review Unit (CARU) guidelines urge that care should be taken to incorporate minority and other groups in advertisements

A) B) C) D) E)

to encourage racial and ethnic stereotypes. to project a nonracial image of the United States. to control the number of advertisements that are shown on TV channels. to present positive and pro-social roles and role models wherever possible. as a means to promote appeals to prejudice toward gender roles.

45) PlayNet Inc., a toy manufacturer, believes that it is important to communicate directly with children rather than with their parents. To avoid ethical issues, which of the following considerations should PlayNet keep in mind while advertising?

A) messages. B) much. C) D) E)

Ads should be such that children’s cognitive defenses are required to screen Fantasy characters must be used to sell products that children may not desire as The same tools used to reach adults must be used for children for an effective reach. The advertisement must be sensitive to the naiveté of children as consumers. Communication that creates a strong need for the product must be designed.

46) When Abercrombie & Fitch (A&F) CEO Mike Jeffries bragged about being exclusionary and only marketing to cool, good-looking people who were not too large, the result was

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A) B) C) D) E)

47)

A social influence agent, advertising is criticized because it encourages

A) B) C) D) E)

48)

liberating consumers and controlling the media. maternalism and perpetuating stereotypes. manipulating minimalism, perpetuating stereotypes, and controlling the media. materialism, manipulating consumers, and perpetuating stereotypes. breaking stereotypes and controlling the media.

There is a consensus among all groups that advertising

A) B) C) D) E)

49)

the lowest ratings in the 2016 American Customer Satisfaction Index. a decrease in sales at competitor H&M. an increase in A&F stock prices. stronger brand loyalty from cool, good-looking people. a change in stereotypes.

does not create false needs in consumers. attempts to discourage materialism in society. has a more positive social influence than a negative one. is an important social influence agent. minimizes stereotypes about people and groups.

One of the criticisms of advertising is that it

A) B) C) D) E)

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perpetuates stereotypes. is not aggressive enough. lacks detailed information. discourages capitalism. is unable to control other media content.

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50) Advertising for products such as expensive clothing, jewelry, and luxury automobiles is often criticized for promoting

A) B) C) D) E)

differentiation. shock advertising. materialistic values. brand recognition. economies of scale.

51) Many believe that materialism is an acceptable part of ________, which stresses hard work and individual effort and initiative and views the accumulation of material possessions as evidence of success.

A) B) C) D) E)

capitalism the school of hard knocks the First Amendment the rite of passage the Protestant ethic

52) The decrease in _________ has those publications reducing their publication schedules and beginning to charge or increase rates for online subscriptions.

A) B) C) D) E)

magazine subscriptions digital subscriptions journal subscriptions newspaper subscriptions website subscriptions

53) Jake argues that ads with sex appeals are offensive and ineffective. Dan disagrees and feels that creativity must be respected in all art forms. Which of the following statements is likely to strengthen Jake’s argument?

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A) B) C) D) E)

Ads with sex appeal have high stopping power. Ads with sex appeal are enjoyed by men and women equally. Ads with sex appeal reach only a focused audience. Ads with sex appeal objectify women and demean them. Ads with sex appeal increase the strength of brand identity.

54) Tara argues that ads with sex appeals are in bad taste and ineffective in influencing the target audience. Amy disagrees and is of the opinion that these ads are effective as long as they fulfill the marketing objective. Which of the following statements is likely to strengthen Amy’s argument?

A) B) C) D) E)

55)

Ads with sex appeal have high stopping power. Ads with sex appeal are enjoyed by men and women equally. Ads with sex appeal are dismissed by conservatives. Ads with sex appeal objectify women and demean them. Ads with sex appeal could distract viewers from the product.

Attitudes toward the use of sex in advertising is a polarizing issue because

A) B) C) D) E)

sexual ads promote a deterioration of moral and social values. the use of sex in ads is demeaning for the actors. sexual ads have high stopping power and easily attract attention. everyone agrees that some sexual ads are inappropriate while some aren’t. different people have different values and religious orientations.

56) Advertisements often seek to create needs rather than merely show how a product or service fulfills them. Many critics claim that this aspect of advertising has an adverse effect on consumers’ values. Which of the following is the main reason for this claim?

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A) B) C) D) E)

Creating needs is likely to discontinue social stereotyping. Consumers are always aware of the difference between needs and wants. Creating needs encourages materialism in people. Advertising leads to easily-content individuals. Marketers who create needs are likely to gain a greater market share.

57) Critics say that by surrounding consumers with images of extravagant lifestyles and by showing products as symbols of status and success, advertising is likely to

A) B) C) D) E)

promote a sense of patriotism. initiate positive consumer socialization. raise awareness against stereotypes. reduce people’s needs and wants. encourage materialism.

58) ________ is a preoccupation with accumulating possessions rather than intellectual or spiritual concerns.

A) B) C) D) E)

Idealism Naturalism Ethnocentrism Materialism Mysticism

59) Those who value individual effort and hard work and believe that material possessions are evidence of success are likely to accept materialism as a part of the

A) B) C) D) E)

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socialist culture. Protestant ethic. communist ideal. spiritualist way of life. feminist movement.

884

60) For which of the following product categories is the advertising most likely to be criticized as promoting materialistic values?

A) B) C) D) E)

consumer goods industrial machinery health products transportation services alcoholic beverages

61) Which of the following products’ advertisements is least likely be criticized for encouraging materialism?

A) B) C) D) E)

62)

Critics argue that a major contributor to materialism is advertising that

A) B) C) D) E)

63)

expensive cars diamond jewelry wind turbines specialty foods furniture

seeks to fulfill existing needs rather than creating new needs. implies that accumulation of possessions can lead to a content life. promotes equality of ethnic and racial minorities. states that physical goods cannot be symbols of respect and dignity. voices against social stereotypes and gender inequalities.

Which of the following supports the view that advertising encourages materialism?

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A) B) C) D) E)

Most advertisements are shown during prime time. Ads seek to create needs rather than show how a product fulfills needs. Advertising seeks to promote intellectual rather than materialistic growth. Many ads are broadcast through nontraditional media. Advertisements promote violence rather than showing images of the good life.

64) Which of the following statements supports the idea that advertisements do not promote materialism?

A) B) C) D) E)

Advertisements create brand loyalty. Material possessions are indicators of status and success. Advertisements can increase or decrease the price elasticity. Consumers’ values are defined by the society in which they live. Advertising can create needs that did not exist before.

65) Which of the following components is most likely to be reflected in an informational advertisement?

A) B) C) D) E)

elevation of social status from using the product celebrities who use the product performance and availability of the product attractive appearance of the product emotional fulfillment from using the product

66) Which of the following is a component most likely to be present in a persuasive advertisement?

A) B) C) D) E)

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price performance social status availability specifications

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67) Track Inc., a bike manufacturer, decides to launch a new model. If Track decides to use a persuasive rather than an informational strategy, which of the following components is likely to be the focus of the advertisement?

A) B) C) D) E)

price performance durability specifications attractiveness

68) Space-it-out Design Inc. launches a new range of furniture. The marketing head, Sana, wants to change the advertising strategy from persuasive to informational. Which of the following components is she most likely to remove from the existing advertisement?

A) B) C) D) E)

69)

price performance comfort availability attractiveness

Persuasive advertising is criticized for

A) B) C) D) E)

ignoring the psychological needs of consumers. fostering discontent among consumers. encouraging people to focus on intellectual growth. providing too much information in advertisements. ignoring consumers’ emotions and anxieties.

70) ________ advertising is criticized for fostering discontent among consumers and encouraging them to purchase products and services as a way of dealing with deeper problems.

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A) B) C) D) E)

Educative Social-awareness Persuasive Informational Knowledge-based

71) Most critics of advertising tolerate informative advertisements better than persuasive advertisements. Which of the following reasons best explains why it is hard to engage in only informational advertising?

A) B) C) D) E)

Customers also want to obtain information from sources other than advertising. Information presented in advertisements often lacks credibility. It is difficult to separate informational advertising from persuasive advertising. Customers would not buy products or services without being persuaded. Advertisements should create needs for marketers to reach their profit objectives.

72) Which of the following statements supports defenders of persuasive advertising in terms of Maslow’s hierarchy of needs theory?

A) B) C) D) E)

It is natural for individuals to move to higher-order needs such as self-esteem. The basic needs of all individuals are not met in society. Advertising determines how well people can satisfy their basic needs. Consumers lack the ability to defend themselves against persuasive advertisements. Consumers do not have the freedom to make their own purchase decisions.

73) Which of the following statements can proponents of advertising use against the charge that advertising makes people buy things they do not need?

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A) Customers benefit from the economies of scale that occur due to persuasive advertising. B) Consumers have the freedom to make their own choices when confronted with persuasive advertising. C) Materialism is an important freedom of choice in an individualistic society. D) Advertising provides information on basic needs to customers rather than persuading them. E) Most persuasive advertisements do not use emotional appeals to persuade customers.

74)

Portrayals of adult women on American television and in print advertising emphasize

A) B) C) D) E)

75)

passivity. credibility. self-dependence. need for power. intelligence.

American television and print advertising have portrayed men as

A) B) C) D) E)

passive. deferent. achieving. lacking intelligence. dependent.

76) Research has shown that nonverbal behaviors involving ________ are associated more with boys than girls.

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A) B) C) D) E)

passivity and knowledge dominance and control aggression and lack of credibility passivity and trustworthiness aggression and lack of knowledge

77) Which of the following groups in the United States argues that advertising that portrays women as sex objects contributes to violence against women?

A) B) C) D) E)

Advertising Research Foundation American Advertising Federation American Women’s Association American Psychological Association National Organization for Women

78) Which of the following groups in the United States has been critical of advertisers for the way they portray women in advertisements for clothing, cosmetics, and other products?

A) B) C) D) E)

Advertising Research Foundation American Advertising Federation American Association of Advertising Agencies American Women’s Association National Organization for Women

79) Which of the following has had a profound impact in reducing sexism and stereotyping in advertising?

A) B) C) D) E)

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decrease in the purchasing power of American women increase in portrayal of women as submissive increase in the number of working women decrease in portrayal of women as independent increase in the number of economically dependent women

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80) Which of the following statements is true of advertising targeted to African American and Hispanic consumers?

A) For many years, advertisers ignored African American and Hispanics as identifiable subcultures and viable markets. B) Over the past two decades, marketing and advertising programs targeted at African American consumers have decreased. C) Hispanics or African American have always appeared more often in TV advertisements than white people. D) The use of Hispanic people as spokespersons has been prevalent since the conception of print ads. E) Hispanics and African American together constitute the largest consumer group in the United States.

81)

Which of the following is a reason for the increased attention to multicultural marketing?

A) B) C) D) E)

increase in the purchasing power of ethnic minorities increase in the budget allotted to advertising decrease in a multicultural workforce in large corporations emergence of white females in key agency roles insufficient policies that focus on antidiscriminatory practices

82) Which of the following statements is true of trends in advertising targeted to the gay community?

A) Gay-themed ads are generally limited to spot TV. B) Most gay themes in mainstream commercials openly show the intent. C) The number of advertisers turning to gay themes in mainstream commercials is decreasing. D) Most advertisers run gay-themed ads on network television. E) Unambiguous gay themes are more common than unclear themes.

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83) Media often avoid certain topics or even present biased news coverage, in compliance to advertiser demands. Which of the following terms represents this practice?

A) B) C) D) E)

Protestant ethic stereotyping economic censorship consumer socialization shock advertising

84) Yevon Inc., a manufacturer of fruit-based beverages, runs its ads on a particular news station. It packages the drinks in boxes and plastic bottles. A recent study done by a local doctor reveals that there is a direct correlation between stomach infections and drinking from juice boxes. Although the doctor does not mention any brand names, the news station decides not to air the news report in compliance with Yevon, its prime sponsor. This is an example of

A) B) C) D) E)

media stereotyping. consumer socialization. economic censorship. shock advertising. the Protestant ethic.

85) A magazine decides to run an article on the ill effects of certain types of cosmetics and the harm they cause to skin in the long run. The article includes facts given by environmentalists who are opposed to animal testing. However, in compliance with one of its lead sponsors, the magazine drops the facts on animal testing and writes only about skin-related issues. This is an example of

A) B) C) D) E)

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shock advertising. the Protestant ethic. media stereotyping. consumer socialization. economic censorship.

892

86) Which of the following facts has led to a concern that advertisers may influence or even control the media?

A) B) C) D) E)

The Constitution guarantees advertisers the freedom of speech. Disclosure laws in the United States are relatively strong. Most consumers tend to distrust the media. Most consumers tend to be skeptic of persuasive advertising. Advertising plays an important role in financing the media.

87) Which of the following is the most important source of revenue for newspapers and magazines?

A) B) C) D) E)

sales subscriptions editorials advertising donations

88) Which of the following are most likely to be susceptible to pressures from advertisers on the type of stories to run?

A) B) C) D) E)

high-revenue media companies large broadcast stations popular radio stations with high audience ratings financially insecure magazines newspapers with a diverse range of advertisers

89) Which of the following is a strong argument against the charge that advertisers control the media?

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A) All media can obtain advertisements from a variety of sources and hence cannot be influenced. B) Advertisers have very little influence in determining the earnings of most media companies. C) Most advertisers have a diverse array of media to choose from and hence do not have to influence a particular medium. D) To retain public confidence, media must report the news fairly and accurately without showing bias. E) News and business departments work together as a unit to minimize the effects of biased influences.

90) Which of the following is a plausible reason to argue that advertisers do not exert undue influence over the media?

A) B) C) D) E)

Media does not often show advertisements with sexual content. Advertisements help the media reduce its costs of operation. Only a few large companies are influenced by the effect of biased advertising. An advertiser needs the media more than the media needs any individual advertiser. Only minor media companies are subject to economic censorship by influential

brands.

91) A newspaper editor who talks about “The Wall” with respect to in-house operations is referring to

A) B) C) D) E)

the difference between veteran and cub reporters. the formal separation of the newspaper’s editorial staff and sales force. how difficult it is to access certain information from internal sources. the separation of classified advertising from other types of advertising. the lowest ad-placement rate accepted in the newspaper.

92) Most print media try to maintain “The Wall” within the organization in order to ensure independence and credibility. However, it is becoming increasingly difficult to maintain “The Wall.” Which of the following is the primary reason for this?

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A) B) C) D) E)

changes in the type of information in print media changes in advertising patterns increased competition from other media change in the attitude of advertisers increased customer awareness and price sensitivity

93) Which of the following alternatives run counter to most people’s desire for freedom of the press?

A) B) C) D) E)

nonprofit media campaigns pay-per-view television systems government-sponsored media private news channels self-financing media initiatives

94) One study of minorities represented in magazine print ads showed that ________ percent of all models used were African American.

A) B) C) D) E)

6.6 9.5 53.4 66 83.8

95) Advertising not only informs customers of available goods and services but also leads to ________ in production, marketing, and distribution, which in turn lead to lower prices.

A) B) C) D) E)

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differentiation barriers to entry materialistic values brand recognition economies of scale

895

96) Able to allocate more monies to advertising so they can afford the costly but more efficient media like network television, ________ usually sell more of a product or service, which means they may have lower production costs.

A) B) C) D) E)

independent advertisers international advertisers large advertisers local advertisers creditable advertisers

97) Defenders of advertising point out a number of factors, such as price, product quality, distribution effectiveness, production efficiencies, competitive strategies and even government legislation, that substantiate why it is unrealistic to attribute a firm’s market dominance and ________ solely to advertising.

A) B) C) D) E)

98)

Advertising plays a positive role in a free-market system by

A) B) C) D) E)

99)

differentiation barriers to entry materialistic values brand recognition economies of scale

making consumers aware of products and services. creating needs that did not exist before. encouraging materialistic values in society. creating barriers to entry for smaller brands. making products highly differentiated.

Which of the following is a major benefit of advertising?

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A) It limits the earning potential of larger companies and maximizes the potential of smaller companies. B) It leads to economies of scale in production. C) It encourages materialistic values in society. D) It helps in altering the collective values of society. E) It helps nations discourage individualistic values in citizens.

100) Some critics state that advertising hampers consumer choice. Which of the following is the most reasonable justification for this argument?

A) B) C) D) E)

Advertisers often provide informational rather than persuasive messages. Advertising discourages gender and social stereotyping. Advertisements can be used to create economies of scale. Advertising creates the perception that the advertised product is unique. Advertising minimizes the effect of economic censorship.

101) Larger companies often end up charging higher prices and achieve a more dominant position in the market than smaller firms that cannot compete against them and their large advertising budgets. When this occurs, advertising

A) B) C) D) E)

helps quality products from smaller brands reach the target audience. increases the choice of alternatives for consumers. becomes a substitute for competition based on price. encourages competition based on product improvement. discourages large brands from becoming market leaders.

102) As a result of advertising, the products or services of large advertisers are perceived as unique or better than competitors’ products. This is referred to as

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A) B) C) D) E)

diversification. scalability. economies of scale. innovation. differentiation.

103) Vendre Inc., a clothing company, spends over $2 billion annually on advertising for its various products. It gains market leadership even though other, smaller brands produce products of higher quality and offer better prices. This is an example of how a large advertiser can help achieve a competitive advantage based on

A) B) C) D) E)

differentiation. economies of scale. economic censorship. diversification. the Protestant ethic.

104) Large advertisers usually sell more of a product or service, which means they may have lower production costs and can allocate more monies to advertising, so they can afford the costly but more efficient media like network television. Which of the following phenomena describes this effect?

A) B) C) D) E)

105)

economies of scale economic censorship diversification Protestant ethic differentiation

Consumer advocates argue that advertising

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A) B) C) D) E)

106)

should create brand loyalty rather than provide mere information. is useful to consumers as it creates an equal and content society. makes consumers aware of their needs, rather than creating needs. reduces the market power of large companies. costs are expenses that make the price higher for consumers.

Critics of advertising argue that barriers to entry are likely to

A) B) C) D) E)

decrease market concentration. assist new brands in gaining a market share. make larger brands give up market dominance. increase consumer awareness of smaller, more efficient brands. cause entrants to spend more on advertising.

107) Turn Inc., a large consumer-goods manufacturer, has a strong brand loyalty created by effective advertising over the years. Tim states that this kind of advertising causes barriers to entry, while Joan argues that this is not the case. Which of the following statements supports Joan’s argument?

A) Turn Inc. is the market leader in the industry. B) Smaller brands spend more than Turn Inc. does on advertising. C) Autumn Corp., a new brand, gains an equal market share to Turn Inc. D) Neil Read Inc., a small-scale magazine, rejects other sponsors to accommodate Turn Inc.’s ads. E) There is high market concentration in the industry caused by Turn Inc. and other leading brands.

108) Topaz is a brand of wrist watches manufactured by Krypton Inc. Krypton spends little money on its advertising, yet Topaz is a highly successful brand owing to its attractive features, exquisite design, and performance. The success of Topaz can be interpreted as evidence that

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A) B) C) D) E)

advertising increases product costs and prices. advertising is a major barrier to entry. product quality is an important determinant of a brand’s success. advertising is not needed for a brand to be successful. advertising can minimize competition based on product improvement.

109) Some critics state that advertising hampers consumer choice. Which of the following statements could weaken their argument?

A) B) C) D) E) market.

110)

The opportunity to advertise gives companies the incentive to develop new brands. Advertising creates needs in society by changing people’s values. Advertising is not susceptible to the effect of economies of scale. Consumers become brand loyal and less sensitive to pricing due to advertising. Advertising results in differentiation that allows larger brands to dominate the

From an economic perspective, advertising can lower prices of a product by

A) B) C) D) E)

creating barriers to entry for smaller firms. focusing more on persuasion than on quality. making a market more competitive. reducing the economies of scale. creating brand loyalties.

111) Critics point out that relatively homogenous products have price differentiation due to advertising. Which of the following products is likely to be in this category?

A) B) C) D) E)

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aspirin wrist watches shower gel perfume computers

900

112) Which of the following statements supports the ideology that advertising equals market power?

A) B) C) D) E)

Advertising does not change the way customers value various product attributes. Industry prices of products in the market decrease as a result of advertising. Advertising encourages new brands to enter the market. Only the relationship between price and quality affects elasticity for a product. Firms are insulated from market competition and they can be more discretionary.

113) Many argue that industry prices decrease as a result of advertising. Which of the following perspectives supports this view?

A) B) C) D) E)

Advertising equals market power. Advertising isolates markets. Advertising produces differentiation. Advertising equals brand loyalty. Advertising equals information.

114) Which of the following statements supports the “advertising equals information” ideology?

A) B) C) D) E)

Advertising affects consumer preferences and tastes. Consumers become brand loyal and less price sensitive due to advertising. Advertising makes entry possible for new brands. Advertisements help firms establish strong brand loyalty. Advertising makes customers highly inelastic.

115) The belief that advertising equals ________ reflects traditional economic thinking that views advertising as a way to change consumers’ tastes, lower their sensitivity to price, and build brand loyalty among buyers of advertised brands.

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A) B) C) D) E)

empowerment information equality market power ethics

116) If a marketer for an established company believes that potential entrants to the marketplace must overcome established brand loyalty and spend relatively more on advertising, then he or she is likely to believe that advertising equals

A) B) C) D) E)

market power. ethics. information. empowerment. equality.

117) Marketers who believe that advertising equals ________ view advertising as providing consumers with useful facts of the products and increasing competition in the market.

A) B) C) D) E)

economies of scale materialism differentiation market power information

118) According to the “advertising equals information” ideology, advertising causes consumers to

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A) B) C) D) E)

119)

value product attributes differently. become brand loyal. become more price sensitive. perceive fewer substitutes for advertised brands. give up comparison of competitive offerings.

Which of the following beliefs takes a positive view of advertising’s economic effects?

A) B) C) D) E)

Advertising equals materialism. Advertising equals market power. Advertising equals differentiation. Advertising equals brand loyalty. Advertising equals information.

120) According to the “advertising equals information” ideology, advertising makes entry possible for new brands because it

A) B) C) D) E)

can maintain brand loyalty for dominant brands. can provide more discretionary power to new brands. discourages product innovation. can communicate product attributes to consumers. can insulate accomplished firms from competition.

121) Which of the following is a major reason for the American Advertising Federation (AAF) to develop an integrated marketing communications (IMC) campaign?

A) B) C) D) E)

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to provide proof for the advertising industry’s capabilities to redefine advertising in the eyes of corporate executives to encourage the development of new advertising agencies to help advertisers improve product differentiation to encourage purchase of more time and space in traditional media

903

122) The ________ has been running a campaign for several years to convince consumers around the world of the economic value of advertising.

A) B) C) D) E)

Advertising Research Foundation Consumers International American Psychological Association Outdoor Advertising Association of America International Advertising Association

123) Which of the following is identified as the American advertising industry’s primary trade organization?

A) B) C) D) E)

American Advertising Federation Advertising Research Foundation Association of National Advertisers National Advertising Review Council Outdoor Advertising Association of America

124) The Great Brands campaign, developed by the American Advertising Federation, promoted the economic power of advertising by

A) B) C) D) E)

providing financial incentives to smaller firms in the industry. featuring companies synonymous with quality advertising. protesting against restrictions enforced by the Children’s Advertising Review Unit. voting against offensive and obnoxious advertising. enforcing restrictions on unethical and immoral advertising.

125) Which of the following statements is indicative of the “advertising equals market power” school of thought on advertising’s role in the economy?

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A) Advertising informs consumers about product attributes but does not change the way they value those attributes. B) Advertising causes consumers to become more price sensitive and buy best “value.” C) Advertising affects consumer preferences and tastes, changes product attributes, and differentiates the product from competitive offerings. D) Advertising makes entry possible for new brands because it can communicate product attributes to consumers. E) Consumers can compare competitive offerings easily and competitive rivalry increases.

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Answer Key Test name: chapter 21 1) FALSE 2) TRUE 3) TRUE 4) FALSE 5) TRUE 6) TRUE 7) FALSE 8) D 9) C 10) A 11) A 12) B 13) A 14) D 15) B 16) A 17) E 18) C 19) C 20) A 21) E 22) B 23) E 24) D 25) C 26) C Version 1

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27) D 28) A 29) D 30) C 31) B 32) D 33) A 34) B 35) B 36) D 37) D 38) A 39) E 40) C 41) A 42) E 43) A 44) D 45) D 46) A 47) D 48) D 49) A 50) C 51) E 52) D 53) D 54) A 55) E 56) C Version 1

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57) E 58) D 59) B 60) E 61) C 62) B 63) B 64) D 65) C 66) C 67) E 68) E 69) B 70) C 71) C 72) A 73) B 74) A 75) C 76) B 77) E 78) E 79) C 80) A 81) A 82) A 83) C 84) C 85) E 86) E Version 1

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87) D 88) D 89) D 90) D 91) B 92) C 93) C 94) B 95) E 96) C 97) B 98) A 99) B 100) D 101) C 102) E 103) A 104) A 105) E 106) E 107) C 108) C 109) A 110) C 111) A 112) E 113) E 114) C 115) D 116) A Version 1

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117) E 118) C 119) E 120) D 121) B 122) E 123) A 124) B 125) C Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) When the final price is to be negotiated between the buyer and the seller, personal selling is effective. ⊚ ⊚

true false

2) When the number and dispersion of customers does not allow for acceptable advertising economies, the sales force is likely to be a major part of the integrated marketing communications (IMC) mix. ⊚ ⊚

true false

3) Unlike advertising, personal selling does not provide the sender with the opportunity to determine the impact of the message. ⊚ ⊚

true false

4) When the cost per sales call for a firm continues to climb, the firm may find mass communications a more cost-effective alternative.

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⊚ ⊚

true false

5) Supplementing personal selling efforts with phone calls allows the sales force to spend less time selling. ⊚ ⊚

true false

Unlike other IMC program elements, personal selling is usually used alone. ⊚ ⊚

true false

7) The ability of a sales representative to take care of company property is a quantitative measure used to evaluate sales forces. ⊚ ⊚

true false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 8) According to Marketo CMO Sanjay Dholakia, marketing is becoming the de facto owner of

A) B) C) D) E)

sales. advertising. customer contact. customer journey. online sales.

Which type of goods is best suited for personal selling?

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A) B) C) D)

low-priced goods non-durable goods high-priced non-durable goods high-priced durable goods

10) When salespeople are educating themselves more about their customers’ businesses and regularly assessing these businesses and their customers to achieve a position of knowledgeable authority, they are engaging in

A) B) C) D)

surveying. mapmaking. guiding. fire starting.

11) According to Hoffberg and Corcoran, when salespeople engage in ________, they are engaging customers and driving them to commit to a solution.

A) B) C) D)

surveying mapmaking guiding fire starting

12) Which of the following expresses the key difference between relationship marketing and CRM?

A) B) C) D)

13)

Relationship Marketing = tool, CRM = concept Relationship Marketing = concept, CRM = tool Relationship Marketing = practice, CRM = concept Relationship Marketing = concept, CRM = salesperson

Which of the following is an advantage of personal selling?

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A) B) C) D)

better messaging lower cost better reach fewer distractions

14) Customers consider a salesperson energetic when he or she displays a positive attitude, enthusiasm, affability, and

A) B) C) D)

15)

Which of the following is a disadvantage of personal selling?

A) B) C) D)

16)

a neutral affect. firm mindedness. consistency. company loyalty.

tailored messaging higher cost two-way interaction source of information

Personal selling is most likely used in which stage of the response hierarchy?

A) B) C) D)

planning creating awareness creating interest stimulating trial

17) Which of the following tools is an example of combining personal selling with sales promotion?

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A) B) C) D)

promotional pens downloadable coupons direct mail QR codes

18) Announcing company activities through social media is an example of combining what promotional tool with personal selling?

A) B) C) D)

public relations sales promotion advertising direct marketing

19) Flip charts and specialty ads designed to assist the sales staff are an example of combining what activity with personal selling?

A) B) C) D)

advertising direct marketing public relations sales promotion

20) In its use to complement personal selling, most marketing managers find the Internet to be valuable for

A) generating leads. B) closing orders. C) prospecting. D) problem solving.

21) When a salesperson is evaluated on the number of shelf or counter displays he or she uses, the manager is using what criterion?

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A) B) C) D)

provision of marketing intelligence follow-up activities program implementation attainment of communication objectives

22) The sales manager supervises the sales force; as a result, salesperson evaluations are typically based on

A) B) C) D)

23)

Personal selling is typically under the control of the

A) B) C) D) E)

24)

communication objectives. sales criteria. program implementations. marketing partnership.

sales manager. advertising department. promotions department. marketing department. operations manager.

Which of the following statements is true of personal selling?

A) Personal selling involves inexpensive forms of communication. B) For personal selling to be effective, the sales and promotions department should operate independently. C) Integrated marketing communications (IMC) tools are used in conjunction with personal selling to make it effective. D) In an integrated marketing communications (IMC) program, personal selling is a substitute for other promotional-mix elements. E) Personal selling is typically controlled by the advertising and promotions department.

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25)

Personal selling refers to selling

A) B) C) D) E)

personalized products to individuals and organizations. homemade products through online stores. through a person-to-person communications process. personalized products to only individuals and not organizations or groups. low-value products to only individuals and not organizations or groups.

26) Which of the following products is most likely to use personal selling as the dominant tool of marketing?

A) B) C) D) E)

27)

Which of the following is an example of a direct-marketing effort by a company?

A) B) C) D) E)

28)

pizza pens OTC medications fresh flowers earth-moving equipment

selling through salespeople selling through resellers missionary selling territory distribution advertising

Personal selling differs from other forms of promotional communication in that it

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A) B) C) D) E)

involves no direct contact with the customer. provides opportunity for immediate feedback. does not serve as a link to resellers. uses only standardized messages in communication. relies on advertising and other promotional tools.

29) ________ allows for more specific tailoring of the message and more personal interaction than other communications media.

A) B) C) D) E)

Informative advertising Mobile marketing Online promotion Dyadic communication Classified advertising

30) In personal selling, the sender can immediately receive and evaluate feedback from the receiver due to ________ communication.

A) B) C) D) E)

31)

impersonal one-way indirect dyadic nonlinear

Dyadic communication in personal selling is likely to result in

A) B) C) D) E)

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a customized message that addresses the receiver’s needs. confusion caused by third parties or intermediaries. impersonal communications between receiver and sender. the sales force having to rely on advertising to address customer needs. a time lag between the message and feedback.

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32) Management should determine the specific responsibilities of personal selling and the role it will assume relative to the other promotional-mix elements. Which of the following questions would best guide the management in determining these roles?

A) B) C) D) E)

33)

Which of the following products is most likely to be sold using personal selling?

A) B) C) D) E)

34)

computers packaged food shoes distilled water apparel

Personal selling is the most appropriate sales method when

A) B) C) D) E)

35)

What is the workflow followed in the advertising department? What is the total sales revenue of the industry in which the company operates? How many people work in each department of the organization? What is the market capitalization of the company? What specific information must be exchanged with potential customers?

the margin of sales is low. the channel system is relatively long. advertising media provide an effective link with market targets. features and performance of the products are relatively simple. final price is negotiated between buyer and seller.

Under which of the following conditions is personal selling ideal for life insurance?

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A) B) C) D) E)

when mass communication provides an effective link with the target market when the final price of the policy is predetermined when the selling margin is relatively low when the dispersion of customers cannot enable acceptable advertising economies when sales promotion is adequate to provide policy-related information needed by

buyers

36) A sales force is a major part of an organization’s integrated marketing communications (IMC) mix when

A) B) C) D) E)

the channel system is very long and indirect to the end users. product trial by customers is unnecessary to make purchase decisions. the purchase decision is not a major one for the buyer. channel intermediaries need product and service training. selling price or quality provides an inadequate margin.

37) Alex is the marketing head of BlackSteel Corp., a manufacturer of industrial equipment that introduces a new line of machinery that requires detailed demonstration and trial for its customers. Which of the following communication methods is Alex most likely to choose to increase sales of the new product line?

A) B) C) D) E)

38)

shock advertising direct advertising personal selling retail selling mass communication

The first step of the Eight-Step Personal Selling Process is

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A) B) C) D) E)

prospecting. preapproach. handling objections. sales presentation. trial close.

39) What step in the Eight-Step Personal Selling Process is characterized by focusing on the features, advantages, and benefits of the product or service to the buyer?

A) B) C) D) E)

prospecting approach handling objections sales presentation trial close

40) Which step of the Eight-Step Personal Selling Process involves addressing concerns and requests for more information and determining exactly what is on the prospect’s mind?

A) B) C) D) E)

prospecting approach handling objections sales presentation trial close

41) Ellen heads the sales force of Track Inc. Track provides services that link buyers and suppliers. At present, the sales team’s responsibilities involve seeking out selected buyers who are perceived to have the resources and the authority to buy the services. Ellen’s team is in the ________ step of the Eight-Step Personal Selling Process.

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A) B) C) D) E)

prospecting approach handling objections sales presentation trial close

42) Zen Inc. sources furniture for hotels and restaurants. The sales team at Zen works with the hotel and restaurant managers to identify their issues. These issues are then translated into needs, and the managers are offered a selection of products to meet those needs. In this scenario, Zen is in the ________ step of the Eight-Step Personal Selling Process.

A) B) C) D) E)

prospecting approach handling objections sales presentation trial close

43) GrayScale Corp. is an insurance provider. Their salespeople are checking with their customers to be sure that everything is going as planned and resolving any issues that may arise. Which step of the Eight-Step Personal Selling Process are their salespeople performing?

A) B) C) D) E)

44)

follow-up handling objections trial close closing the sale sales presentation

In personal selling, the final price is negotiated between

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A) B) C) D)

45)

Personal selling is used when advertising does not

A) B) C) D)

46)

buyer and manufacturer. buyer and management. buyer and seller. no one; there is no negotiation.

close the sale. provide complete information. generate leads. entice the customer.

Advertising may outperform personal selling by better communicating

A) B) C) D)

complex product features. to a fragmented target market. a consistent message. information to generate interest.

47) Zest Inc. produces automated kitchen equipment. Their type of product is new on the market, and many of their customers do not understand either how to use it or why it would benefit them. Zest is trying to determine the best way to inform customers about their product and thereby produce sales. Which of the following would be the best method for Zest to secure sales?

A) B) C) D)

48)

direct-mail advertising Internet sales personal selling telesales

Brokers or manufacturer’s agents are examples of

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A) B) C) D)

49)

buyers. channel intermediaries. telemarketers. advertisers.

Which of the following is a deciding factor to use personal selling?

A) B) C) D)

The price of the product is high. The product is available online. There is no advertising available. The buyer is part of a distinct and large target market.

50) The textbook publishing market is highly competitive. Instructors can easily view multiple products online. A textbook publisher would use personal selling

A) B) C) D)

because of the high price of textbooks. to push sales through the channel. because advertising doesn’t work in the channel. to take orders.

51) Traditionally, salespeople have served the roles of information providers, influencers by proximity, and

A) B) C) D)

52)

advertisers. public relations. demonstrators. product developers.

Which of the following statements about the stages in the evolution of selling is true?

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A) B) C) D)

Salespeople’s skills and roles remain constant. The need for salespeople is declining. Salespeople will need to take on new roles due to the changing landscape. The Internet is making salespeople irrelevant.

53) The ________ role of salespeople primarily focuses on outlining both an account strategy and a solutions strategy for the customer.

A) B) C) D) E)

fire-starting guiding surveying information-providing mapmaking

54) Salespeople should educate themselves about their customers’ businesses and regularly assess these businesses and their customers to achieve a position of knowledgeable authority. These responsibilities are most closely associated with the ________ role of salespeople.

A) B) C) D) E)

mapmaking guiding fire starting surveying influencing

55) Modern salespeople bring incremental value to the customer by identifying problems and opportunities, offering alternative options and solutions, and providing solutions with tangible value. These functions of salespeople can be classified as part of the ________ role.

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A) B) C) D) E)

56)

The fire-starting role of salespeople is most closely associated with

A) B) C) D) E)

57)

fire-starting surveying mapmaking guiding influencing

outlining an account strategy and a solutions strategy for customers. laying out a customized plan for individual customers. engaging customers and driving them to commit to a solution. bringing incremental value to the customers by identifying problems. educating themselves about their customers’ businesses.

Which of the following statements is true of relationship marketing?

A) It focuses on short-term sales. B) It uses message differentiation to target different markets. C) It does not track promotional effects to improve relationships. D) It does not utilize sales representatives. E) It is synonymous with buzz marketing.

58) ________ refers to an organization’s effort to develop a long-term, cost-effective link with individual customers for mutual benefits.

A) B) C) D) E)

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Relationship marketing Missionary selling Transactional relationship Transformational exchange Joint venture

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59)

Which of the following terms is most closely associated with relationship marketing?

A) B) C) D) E)

60)

persuasion compliance consultation partnership autonomy

Which of the following is the best example of relationship marketing?

A) B) C) D) E)

Kite Inc. uses mass media to communicate with its target audience. Fin Corp. focuses on short-term gains through one-time transactions. Venus Inc. focuses on using print media to have a wide reach. Gate Corp. uses personal selling to reach individual customers. Felix Inc. develops a long-term link with individual customers for mutual benefit.

61) Adoption of a customer relationship management (CRM) approach will require sales managers to

A) B) C) D) E)

reduce the role of direct marketing. decrease their reliance on websites as strategic marketing tools. decrease the use of traditional sales strategies. focus less on building long-term collaborations. focus less on building relationships based on trust.

62) Nina, marketing head of Red Inc., changes the existing marketing strategy by adopting a customer relationship management (CRM) approach. Which of the following is likely to be a consequence of Nina’s choice of the CRM approach?

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A) B) C) D) E)

The role of direct marketing increases. The use of standardized forms of communication increases. The focus of the sale will be primarily on the price. The use of traditional strategies will increase. The reliance on tactical approaches to marketing will increase.

63) In some industries, personal selling accounts for most of the promotional budget. This is true because

A) B) C) D) E)

it has a wider reach than the mass media. it is not as expensive as other forms of communication. the average cost per sales call has decreased since 1980. the cost per sales call is less than the cost per message through other media. it is expensive and usually requires more than one sales call.

64) Which of the following products is likely to be the most expensive in terms of sales call costs?

A) B) C) D) E)

cosmetics personal care products computers cigarettes liquor

65) Personal selling has many advantages over other communications methods. However, most companies do not use it extensively. Which of the following is a reason for this?

A) B) C) D) E)

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Personal selling lacks the ability to deliver customized solutions. It is not effective when you want to reach a niche target audience. Personal selling techniques have limited persuasion capability. It does not have opportunities for immediate response and feedback. Personal selling is expensive compared to other forms of communication.

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66)

Leads are different from prospects in that

A) B) C) D) E)

leads may not have a need for the product or service offered. leads are tougher to identify than prospects. leads are more likely to make a purchase than prospects. missionary sales reps are likely to close deals with leads. leads are less likely to receive cold calls than prospects.

67) Robert performs sales activities such as prospecting, assessing the situation and determining the needs to be met, presenting his company’s capabilities for satisfying these needs, and closing the sale. Robert is in which type of sales job?

A) B) C) D)

personal selling advertising channel partner public relations

68) Catharine introduces new products, new promotions, and new programs to customers, while the actual orders are taken by Salim, the company’s order taker. Catharine is likely to be

A) B) C) D)

a sales development rep. an account manager. a regional sales manager. an account executive.

69) People who are responsible for the first part of the sales process such as researching, prospecting, and qualifying leads are called

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A) B) C) D)

70)

A salesperson who travels to customers just to get their orders is

A) B) C) D) E)

71)

sales development reps (SDRs). account managers. regional sales managers. account executives (AEs).

a sales development rep. an account manager. a regional sales manager. an account executive. an outside salesperson.

Which sales role has a steady client base and works to encourage repeat sales?

A) B) C) D) E)

sales development rep account manager regional sales manager account executive outside salesperson

72) Tom builds the product, and so knows a lot about the product. He is often asked to be on sales calls with an account executive to help answer any in-depth questions the potential client may have. Tom is working in which type of sales role?

A) B) C) D) E)

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account manager regional sales manager vice president sales engineer director of sales

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73) Which sales position has a strategic role, but also provides direction and quotas to the sales managers?

A) B) C) D) E)

vice president regional sales director sales engineer director of sales account executive

74) At Little Corp., Rick works as a sales development rep while Harry works as an account executive. If they follow a typical personal-selling procedure, which of the following is most likely to happen when Rick encounters a situation that involves a major purchase decision?

A) B) C) D)

Rick will attempt to close the sale himself only for this one time. Rick will route the sale to Harry. Rick will make the decision himself as part of his responsibilities. Rick will decline the sale.

75) Tia works in the sales team of Blitz Inc. Her role involves working leads, doing product demonstrations, and closing the initial sale. Once she has completed the initial sales, to whom at Blitz is Tia most likely to transition the client?

A) B) C) D) E)

sales development rep account executive sales manager account manager vice president

76) Which of the following roles is most responsible for the strategic direction of the sales team?

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A) B) C) D) E)

account manager account executive regional sales manager sales director vice president

77) Which of the following steps of selling is performed right before demonstrating the capabilities of the firm and its products?

A) B) C) D) E)

78)

handling the indirect objections of customers determining customers’ needs and wants recommending ways to satisfy customers’ needs and wants attempting to close the sale servicing the account

Order taking is most likely to happen at the stage of

A) B) C) D) E)

feedback. objection handling. need determination. closing the sale. pre-approach.

79) HRTech is a company that provides human resource management (HRM) services for small- and medium-sized businesses. HRTech visits LW Corp. for a sales presentation. At the end of the presentation, the HRTech salesperson asks, “Would you like us to set up a personalized HR system for you?” This question is an example of

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A) B) C) D) E)

a close. a lead screening process. objection handling. need determination. a pre-approach.

80) Rafael visits an insurance agent from whom he has purchased auto insurance to clarify some questions. The agent asks Rafael if he owns or rents where he lives, as well as what type of possessions Rafael has (such as electronics, jewelry, etc.). Then agent asks Rafael if he has renters’ insurance. The insurance agent is in which step of the sales process?

A) B) C) D) E)

locating perspective customers determining customer’s needs and wants recommending a way to satisfy the customer’s needs and wants demonstrating the capabilities of the firm closing the sale

81) Zoe Inc. is a jewelry store whose website was designed by Quirky Inc., a graphic design firm. After the launch of the new site, the marketing head of Quirky visits Zoe’s office to ask about the new website and what Zoe thinks about it. Quirky Ink is attempting to engage in

A) B) C) D) E)

locating perspective customers. determining customer’s needs and wants. recommending a way to satisfy the customer’s needs and wants. demonstrating the capabilities of the firm. following up and servicing the account.

82) Which of the following stages in selling focuses on retaining existing customers rather than attracting new ones?

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A) B) C) D) E)

problem solving objection handling closing the sale following up trial closing

83) Which of the following stages in the selling process is typically characterized by cross selling?

A) B) C) D) E)

84) for

following up closing the sale problem solving objection handling need recognition

Of all the promotional program elements, only personal selling provides the opportunity

A) B) C) D) E)

increased product awareness. the communication of detailed information. direct feedback. maintaining customer loyalty. low sales costs.

85) Personal selling offers the opportunity to assess the sales situation and to adapt the sales message accordingly. This is called a

A) B) C) D) E)

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missionary sale. cross sale. one-way communication process. secondary response system. direct feedback network.

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86)

Which of the following is a major advantage of personal selling?

A) B) C) D) E)

consistency of messages reduced salesforce/management conflicts lack of distraction for the buyer reduced sales cost wide reach at low cost

87) Personal selling is considered more effective than other marketing communication techniques for some products. Which of the following is a reason for this?

A) B) C) D) E)

Distortion of marketing messages does not occur in personal selling. Salespeople can be involved in the decision-making process. Marketing messages tend to be consistent in personal selling. Personal selling is an inexpensive form of communication. Personal selling is associated with better reach compared to other methods.

88) Buyers consider knowledgeable salespeople to be most helpful. To have this trait, salespeople should be

A) B) C) D) E)

punctual in their appointments with buyers. flexible in making choices with buyers. personally accountable for handling customer requests. aware of every detail of the products and policies. empathetic and willing to listen to buyers.

89) Which of the following behaviors of salespeople is most closely associated with being results oriented?

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A) B) C) D) E)

listening to customers’ problems presenting innovative solutions to problems coming prepared to sales presentations displaying positive attitudes and enthusiasm quantifying the type of ROI a customer can expect

90) Robert has joined industry organizations, gained professional certifications, and contributed to industry publications. Prospects are likely to view Robert as

A) B) C) D) E)

91)

knowledgeable. punctual. efficient. helpful. results oriented.

Which of the following is a disadvantage of personal selling?

A) B) C) D) E)

lack of two-way interaction lack of personalization indirect communication increased customer distraction inconsistent marketing messages

92) Which of the following characteristics of personal selling can be both advantageous and disadvantageous?

A) B) C) D) E)

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ability to personalize the sales message lack of distraction high sales costs one-way interaction potential for direct feedback

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93) The ability to tailor the marketing message may prove to be either an advantage or a disadvantage. In which of the following situations could it become a disadvantage?

A) B) C) D) E)

94)

Which of the following is a potential disadvantage of personal selling?

A) B) C) D) E)

95)

lack of personalization conflict between sales force and management lack of direct feedback inability to tailor messages lack of customer involvement in the decision-making process

What does it mean when salespeople are described as having a poor reach?

A) B) C) D) E)

96) this?

when costs per contact are high when salespeople alter the message just to get a sale when the price of the product is standardized when the product is complex in nature when distribution channels are short and direct to the end user

They engage in too much talk that distracts the buyer. They lack the product knowledge needed to convince the buyer. They are unable to contact everyone in the target market. They lack the confidence to close the sale. They lack the skill required to influence buying decisions.

Personal selling may lead to ethical problems. Which of the following is a reason for

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A) B) C) D) E)

Most personal sale situations demand unethical practices. Many salespeople are compulsive talkers and they do not listen to customers. Personal selling does not encourage feedback from customers. Personal selling does not have opportunities for two-way interaction. Managers do not have complete control over the message that salespeople convey.

97) Marketers often use mass communications as an alternative to personal selling. Which of the following is a reason for this?

A) B) C) D) E)

need for personalized communication high cost per sales call low success rate of personal selling need for tailored marketing messages high level of distraction in personal selling

98) Personal selling often results in conflict between sales force and marketing. Which of the following is a reason for this conflict?

A) B) C) D) E)

99)

The marketing team may be responsive to the field assessment of customer needs. The sales force may not use the material provided by the marketing team. Most organizations do not distinguish between sales and marketing departments. Salespeople are forced to deliver messages to customers as defined by marketers. Personal selling does not allow for two-way interaction with customers.

At which stage of the response hierarchy is personal selling least likely to be useful?

A) B) C) D) E)

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product awareness demonstration product trial product purchase order-getting

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100) Studies have shown that the combination of advertising and personal-selling efforts is likely to

A) B) C) D) E)

101)

reduce effectiveness. weaken the image of sales reps. reduce reach. increase costs. increase the probability of a sale.

Research has shown that combining advertising with personal selling results in

A) B) C) D) E)

decreased customer trust. uninformed decision making. improved reach. impulse buying. decreased cross selling.

102) Personal selling is more likely to be used than other methods of sales communication in situations where

A) B) C) D) E)

routine information has to be provided to customers. profitability is dependent on the scale and cost effectiveness of operation. the product is inexpensive and simple. the salesperson has to stimulate a trial to make a sale. the organization wants to create product awareness.

103) When a new product is being introduced and the seller needs to reach as many people in the target market quickly and cost effectively, personal selling combined with ________ is likely to be most effective.

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A) B) C) D) E)

104)

public relations efforts advertising direct marketing missionary selling word-of-mouth communication

Personal selling is a more appropriate tool than advertising when the objective is to

A) B) C) D) E)

ask for a sale. minimize the cost per lead. provide information. create awareness. create brand appeal.

105) By servicing accounts and cooperating and empathizing with clients, salespeople are engaging in ________ activities on behalf of their firm.

A) B) C) D) E)

promotional advertising public relations direct-marketing telemarketing

106) Which of the following is a major advantage that advertising provides to personal selling?

A) It can provide personalized messages to the buyers. B) It can act as an ego booster for the buyer during sales calls. C) It helps the salesperson complete the customer’s decision-making process. D) It helps screen leads after qualifying potential buyers. E) It allows the opportunity for immediate feedback.

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107) White Inc. places an ad in a dental trade magazine, Albus Review, for a new product. The ad asks interested readers to request a product information pamphlet by e-mail. The names and addresses of dentists who request information are then given to the sales force at White Inc. This is an example of how ________ activities can be combined with personal selling.

A) B) C) D) E)

sales-promotion operational public relations direct-marketing holistic marketing

108) Many companies have started using telemarketing to supplement personal selling. Which of the following is a reason for this?

A) B) C) D) E)

109) of

increased need for personalization increased need for diseconomies of scale need to reduce selling costs need for face-to-face interaction decreased customer loyalty

Organizations use telemarketing to support personal selling. Telemarketing is an example

A) B) C) D) E)

direct marketing. field order taking. internal marketing. inbound selling. mass communication.

110) An organization wants to screen leads and qualify potential buyers before salespeople call on them. Which of the following is the most cost-efficient method to do this?

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A) B) C) D) E)

Increase advertising in mass media. Use alternate channels such as retailing. Appoint external consultants to screen leads. Use direct-marketing techniques such as telemarketing. Hire highly qualified salespeople who can convince prospective customers.

111) Telemarketing staff can provide a(n) ________ function, creating goodwill and improving customer satisfaction and loyalty.

A) B) C) D) E)

sales promotion direct marketing public relations internal marketing advertising

112) ________ refers to an online presentation that can serve a variety of purposes from conducting job training for employees to making presentations and providing in-depth product information to existing and potential customers.

A) B) C) D) E)

Social networking Virtual conferencing Podcast Teleconferencing Webinar

113) ________ refers to the ability of the sales force to report information regarding competitive programs and customer reactions.

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A) B) C) D) E)

Attainment of communications objectives Program implementation Follow-up activity Provision of marketing intelligence Personalization of communication

114) Which of the following is a factor for evaluating personal selling that considers aspects such as the use and dissemination of promotional brochures and providing feedback on the effectiveness of promotional programs?

A) B) C) D) E)

provision of promotional intelligence attainment of communications objectives provision of marketing intelligence program implementations follow-up activities

115) Lisa works as a sales manager at Zoroh Inc. She evaluates the members of the sales force based on the number of accounts to which presentations were made and the number of trial offers accepted. Which of the following criteria is Lisa using to evaluate the salespeople?

A) B) C) D) E)

attainment of communications objectives provision of marketing intelligence program implementations follow-up activities provision of promotional intelligence

116) Joelle’s manager evaluates her performance during their quarterly meeting. Which of the following criteria is a quantitative measure of Joelle’s sales efforts?

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A) B) C) D) E)

117)

attainment of communications objectives average order size program implementations follow-up activities net profit

A quantitative measure used to evaluate sales personnel is

A) B) C) D) E)

product knowledge. selling expenses per call. follow-up activities. customer feedback. marketing intelligence.

118) Which of the following quantitative measures can be used to evaluate the selling expenses of salespeople?

A) B) C) D) E)

119)

number of service calls number of displays set up average cost per sales call delivery cost per unit sold number of new accounts

A qualitative measure used to evaluate sales personnel is

A) B) C) D) E)

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the number of new accounts. the percentage of sales quota achieved. territory management. report preparation. sales call preparation.

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120) Which of the following is a qualitative measure used to evaluate sales-related activities of the sales force?

A) B) C) D) E)

product knowledge customer knowledge execution of selling techniques customer relations communication skills

121) Which of the following qualitative measures is used to evaluate the selling skills of the sales force?

A) B) C) D) E)

customer knowledge personal characteristics marketing intelligence customer relations follow-ups

122) Zoe is a sales manager who emphasizes qualitative measures of sales results in her salesperson evaluations. Which of the following might Zoe use as a qualitative measure of sales results?

A) B) C) D) E)

quality of sales presentations average order size program implementations net profit number of orders obtained

123) Baxter is completing a sales report. He is reporting the results of a calculation dividing his total orders by the number of sales calls, which is also known as his

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A) B) C) D) E)

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quality of sales presentations. average order size. batting average. net profit. gross margin.

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Answer Key Test name: chapter 22 1) TRUE 2) TRUE 3) FALSE 4) TRUE 5) FALSE 6) FALSE 7) FALSE 8) D 9) D 10) A 11) D 12) B 13) D 14) C 15) B 16) D 17) A 18) D 19) D 20) A 21) C 22) B 23) A 24) C 25) C 26) E Version 1

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27) E 28) B 29) D 30) D 31) A 32) E 33) A 34) E 35) D 36) D 37) C 38) A 39) B 40) C 41) A 42) B 43) A 44) C 45) B 46) C 47) C 48) B 49) A 50) B 51) C 52) C 53) E 54) D 55) D 56) C Version 1

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57) B 58) A 59) D 60) E 61) C 62) A 63) E 64) C 65) E 66) A 67) A 68) D 69) A 70) E 71) B 72) D 73) D 74) B 75) D 76) E 77) C 78) D 79) A 80) C 81) E 82) D 83) A 84) C 85) E 86) C Version 1

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87) B 88) D 89) E 90) A 91) E 92) A 93) B 94) B 95) C 96) E 97) B 98) B 99) A 100) E 101) C 102) D 103) B 104) A 105) C 106) B 107) D 108) C 109) A 110) D 111) C 112) E 113) D 114) E 115) A 116) A Version 1

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117) B 118) C 119) D 120) D 121) A 122) A 123) C

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