Chapter 01 - An Introduction to Integrated Marketing Communications
Chapter 01 An Introduction to Integrated Marketing Communications
Multiple Choice Questions 1. (p. 4) With Google's Adsense online marketing, the company: A. avoided mass media boycotts B. facilitated the opportunity for low-tech media to reach non-target markets C. refined the concept of targeted advertising D. allowed advertisers to use an undifferentiated marketing strategy E. none of the above See opening vignette.
2. (p. 5) Google's ability to track purchases made directly through Internet advertising fulfills marketers' dream of: A. integrating online advertising into the manufacturing strategy B. efficient supply-chain communication C. replacing internal analysis with external analysis D. mastering the marketing mix E. paying for the advertising that works See opening vignette.
3. (p. 5) Why are marketers decreasing their usage of advertising in mass media to reach their target market and increasing their use of integrated marketing communications? A. The mass market has become fragmented. B. The explosion of new technologies has given consumers greater control over the communication process. C. The use of the Internet and electronic commerce is growing. D. New global markets are emerging. E. All of the above explain the increasing reliance on integrated marketing communications.
1-1
Chapter 01 - An Introduction to Integrated Marketing Communications
4. (p. 6) According to the text, why are marketers decreasing their usage of advertising in mass media to reach their target market and increasing their use of integrated marketing communications? A. The number of new products being introduced annually is growing. B. Advertising agencies find it easier to develop effective integrated marketing communications than to use mass media advertising. C. The product life cycle is becoming shorter. D. The use of the Internet and electronic commerce is growing. E. All of the above explain the increasing reliance on integrated marketing communications.
5. (p. 8) The tremendous growth in advertising and promotion throughout the world is due to: A. a redefining of the term marketing B. the growth of the U.S. and global economies C. the lack of print and broadcast media in many nations D. the tremendous growth in the number of advertising agencies worldwide E. an international tendency to abandon growth strategy and promote existing products in the growth and maturity stages of their product life cycles
6. (p. 8) _____ is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives. A. Integrated marketing communications B. Marketing C. Advertising D. Sales promotion E. Exchange communications
7. (p. 8) Which of the following is the BEST example of a marketing exchange? A. The waitress gave Sunil a menu, and he placed his food order. B. Griffin helped Mandy replace the air filter in her lawn mower. C. A. C. and Maggie gave their son a CD player for his birthday. D. In return for painting her fence, Mrs. Maloney gave Larry a box of homemade fudge. E. None of the above is an example of a marketing exchange.
1-2
Chapter 01 - An Introduction to Integrated Marketing Communications
8. (p. 8) Which of the following is an example of a marketing exchange? A. Jennifer purchased a chocolate milkshake at a local drive-in restaurant. B. Lionel sold Guy two season tickets to a Tennessee Titans professional game for $750. C. Jeremy gave a $500 donation to receive an autographed set of Harry Potter books for his daughter. D. Kendrick's Cleaning Service bought airtime on KRAX. E. All of the above are examples of a marketing exchange.
9. (p. 8) Which of the following statements about marketing is true? A. A marketing transaction does not have to involve the exchange of money. B. Marketing is used by nonprofit organizations. C. Marketing is used by colleges and universities to solicit donations in exchange for psychological satisfaction. D. Effective marketing requires that managers recognize the interdependence of sales and promotion and how they can be combined to develop a marketing program. E. All of the above statements about marketing are true.
10. (p. 8) Which of the following statements about marketing 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. It is often more cost effective to use marketing to retain customers than to acquire new ones. D. Marketing does not play an important role in developing and sustaining relationships with customers. E. By definition, a marketing transaction involves the exchange of money.
11. (p. 9) _____ is the process of creating, maintaining and enhancing long-term relationships with individual customers as well as other stakeholders for mutual benefit. A. Integrated marketing B. Integrated marketing communications C. Marketing planning D. Exchange E. Relationship marketing
1-3
Chapter 01 - An Introduction to Integrated Marketing Communications
12. (p. 9) The increased usage of relationship marketing is due to the fact: A. customers have become less demanding B. customers want products and services that are mass-produced rather than tailored to their specific needs and wants C. retaining customers is generally more cost effective than acquiring new ones D. it is very costly to prevent customer defections E. most international customers already use relationship marketing
13. (p. 9) ________ is the customer's perception of all the benefits of a product or service. A. Mass marketing B. Information C. Mass customization D. Value E. Batch processing
14. (p. 9) To decrease marketing costs and to improve response rates Williams-Sonoma catalog retailer, decided it needed to better match their catalog brands to recipients. Based on the retailer's understanding of a customer's special interests one person might receive a catalog about cookware while his neighbor receives a catalog focused on household goods with a July 4ththeme. This strategy to be more attuned to its customers' needs and at the same time improving its own financial picture is an example of how a company can use: A. mass marketing B. an information marketing system C. a product penetration strategy D. relationship marketing E. batch processing
15. (p. 9) Rives de France, a canal boat rental company, developed a tracking system recording customers' preferences and behaviors in order to better meet the needs of individual customers and increase customer retention. Rives de France developed a: A. customer relationship management system. B. an information marketing system C. mass customization operation D. advertising efficiency system E. batch processing program
1-4
Chapter 01 - An Introduction to Integrated Marketing Communications
16. (p. 9) Advances in technology and flexible manufacturing systems have allowed a boot manufacturer in Texas to take several measurements of a customer's feet and make boots that precisely fit those feet. No one but the person for whom the boots were made can wear them comfortably. This Texas boot maker uses: A. mass marketing B. an information marketing system C. mass customization D. a product development strategy E. batch processing
17. (p. 10) The _____ is the controllable elements of product, promotion, price, and place (distribution), which are used to facilitate exchange in a marketplace. A. promotional mix B. marketing mix C. advertising mix D. IMC mix E. internal exchange environment
18. (p. 10) Prior to the movement to integrated marketing communications, the promotional function in most companies was dominated by: A. mass media advertising B. sales promotion C. public relations D. publicity E. direct marketing
19. (p. 10) As advertisers embraced the process of integrated marketing communications,: A. auxiliary promotional services became an important element in effective marketing communications B. many companies began looking beyond their traditional advertising agencies and using other types of promotional specialists to develop and implement their promotional programs C. many ad agencies acquired public relations, sales promotion, and direct marketing companies to expand their capabilities and offer clients one-stop shopping for all their promotional needs D. companies began using a variety of promotional tools rather than relying primarily upon mass media advertising E. all of the above occurred
1-5
Chapter 01 - An Introduction to Integrated Marketing Communications
20. (p. 11) Which of the following conditions must be met to effectively utilize integrated marketing communications? A. Individuals working in marketing need to thoroughly understand the creative process of advertising. B. Advertising agencies need to acquire firms specializing in other areas of marketing communications. C. Individuals working in marketing, advertising, and other promotional areas need to better understand how to use a variety of marketing communications tools. D. All promotional mix elements need to be brought under the control of the ad agency E. All of the above conditions must be met for an effective utilization of integrated marketing communications.
21. (p. 11) British Airways employed _____ when it used product placement to make sure that viewers of the movie Die Another Day knew that James Bond flies first class on a British Airways plane. (The scene occurs late in the movie.) The airline ran advertising campaign based around the slogan, "Save your Pennys, fly like Bond," referring to the secretary that Bond flirts with in each film. British Airways also paid for the rights to screen the film on its flights before the movie was available at video stores. A. the marketing mix B. exchange C. integrated marketing communications D. the 4As E. relationship marketing
22. (p. 11) Arm & Hammer UltraMax deodorant contains time-released baking soda and provides "extra muscle for the game of life." Ads for the product featured a baseball star saying "When your day goes into extra innings, you need a deodorant with extra muscle," appeared in television and print ads. At the same time, Arm & Hammer ran sweepstakes in which people could enter to win a chance to meet the baseball star plus other great prizes. To enter sweepstakes customers had to fill out a $1-off coupon for deodorant or visit the website ahultramax.com. This is an example of: A. the marketing mix B. exchange C. integrated marketing communications D. the 4As E. relationship marketing
1-6
Chapter 01 - An Introduction to Integrated Marketing Communications
23. (p. 11) The central theme of the concept of _____ is that all of an organization's marketing and promotional elements and activities communicate with its customers. A. the marketing mix B. exchange C. integrated marketing communications D. the promotional mix E. relationship marketing
24. (p. 12) Integrated marketing communications requires a "big picture" approach to planning marketing and promotion programs, requiring advertising agencies to develop a(n): A. alternative approach for each media method B. support system for production differentiation C. total marketing communications strategy D. reduced emphasis on information advertising and increased emphasis on persuasive marketing E. all of the above
25. (p. 12) _____ 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. The marketing concept B. The promotional mix concept C. The exchange concept D. Integrated marketing communications E. Promotional planning
26. (p. 12) Terms such as new advertising, orchestration, and seamless communication have been used to describe: A. relationship marketing B. integrated marketing communications C. the promotional mix D. relationship marketing E. the 4 A's
1-7
Chapter 01 - An Introduction to Integrated Marketing Communications
27. (p. 12) Advocates of integrated marketing communications argue that: A. a company communicates with its customers primarily through media advertising B. a company communicates with its customers primarily through one-on-one communication techniques. C. package design is the most important way of communicating with customers D. nonpersonal communications is more effective than personal communications E. none of the above is true
28. (p. 12) The goal of an integrated marketing communications program is to: A. have all of a company's 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 advertising D. have complete control over all facets of the marketing mix E. create a brand image so strong that it destroys all of its competition
29. (p. 11-12) As marketers become more sophisticated in their understanding of integrated marketing communications, they are recognizing that: A. effective integrated marketing communications calls for a centralized messaging function B. integrated marketing communications must consider all sources of brand or company contact that a customer or prospect has with a product C. integrated marketing communications offers more than just ideas for coordinating all of the elements of the marketing and promotional program D. integrated marketing helps companies identify the most appropriate and effective methods for contacting customers E. all of the above are true
30. (p. 11-12) The move toward integrated marketing communications: A. allows marketers to develop more efficient and effective marketing communication programs B. reflects an adaptation by marketers to a changing environment C. is being driven by changing technologies that are creating new ways for marketers to reach consumers D. is being driven by changing demographics, life styles, media, and shopping patterns E. is correctly defined by all of the above
1-8
Chapter 01 - An Introduction to Integrated Marketing Communications
31. (p. 11-12) Which of the following statements describes a reason why marketers are adopting the concept of integrated marketing communications? A. Marketers recognize the value of strategically integrating the various communication functions. B. Traditional media advertising has become too expensive and less cost effective. C. The shift in marketplace power from manufacturers to retailers is leading marketers to allocate less money to advertising and consider promotional tools that can provide immediate results. D. The rapid growth and development of database marketing is prompting firms to target consumers through a variety of direct marketing methods. E. All of the above are reasons why marketers are adopting the concept of integrated marketing communications.
32. (p. 13) Which of the following statements describes a reason why marketers are adopting the concept of integrated marketing communications? A. There is a shift in marketplace power from retailers to manufacturers. B. Escalating price competition in many markets has forced marketers to spend more of their promotional budget on price promotions rather than media advertising. C. Privacy issues are causing many marketers to abandon database marketing. D. Companies are paying their advertising agencies using a fixed salary as opposed to incentive plans. E. All of the above are reasons why marketers are adopting the concept of integrated marketing communications.
33. (p. 15) Many companies are attempting ______________, where their brand come-ons become part of popular culture and consumers are lured into spreading the message. A. direct-response advertising B. buzz marketing C. exchange-driven communication D. external marketing alliances E. integrated internal advertising allowances
1-9
Chapter 01 - An Introduction to Integrated Marketing Communications
34. (p. 14) With changes in technology, many markets are becoming increasingly fragmented. In response, marketers are moving away from mass marketing and engaging in: A. mass media communication B. mass customization C. micromarketing D. interactive marketing E. relationship management See IMC Perspective 1-1.
35. (p. 16) The brand identity for Quaker Oats would include: A. consumer perception that the cereal is nutritious B. the Quaker gentleman who appears on the box and in the Quaker ads C. the round shape of the oatmeal package D. the taste of the cooked oatmeal E. all of the above
36. (p. 16) Arm & Hammer UltraMax deodorant contains time-released baking soda and provides "extra muscle for the game of life." Ads for the product featured a baseball star saying "When your day goes into extra innings, you need a deodorant with extra muscle," appeared in television and print ads. At the same time, Arm & Hammer ran sweepstakes in which people could enter to win a chance to meet the baseball star plus other great prizes. To enter sweepstakes customers had to fill out a $1-off coupon for deodorant or visit the website ahultramax.com. Through the use of IMC, Arm & Hammer is hoping to create _____ for its new product. A. brand adaptation B. laggard adoption C. mass customization D. brand identity E. cognitive dissonance
1-10
Chapter 01 - An Introduction to Integrated Marketing Communications
37. (p. 17) Traditionally, __________________ has been the cornerstone of brand-building efforts. A. interactive media B. mass-media advertising C. public relations D. government policy controls E. personal selling See IMC Perspective 1-2.
38. (p. 17) Today, companies are often using ___________ to build brands. A. interactive media B. entertainment C. consumer experience D. mass customization E. all of the above See IMC Perspective 1-2.
39. (p. 18) ______ is the coordination of all seller-initiated efforts to set up channels of information and persuasion to sell goods and services. A. Publicity B. Advertising C. Organizational communication D. Promotion E. Marketing
40. (p. 18) Which of the following is NOT an element of the traditional promotional mix? A. packaging B. advertising C. personal selling D. sales promotion E. public relations
1-11
Chapter 01 - An Introduction to Integrated Marketing Communications
41. (p. 18) The basic elements that are used to accomplish an organization's communication objectives are referred to as: A. the marketing mix B. marketing strategy tools C. 5 C's D. the promotional mix E. public relations
42. (p. 18) _____ is defined as any paid form of nonpersonal presentation of ideas, goods, or services by an identified sponsor using predominantly mass media communication. A. Advertising B. Personal selling C. The promotional mix D. Publicity E. Sales promotion
43. (p. 18) Advertising may be defined as any: A. paid forms of nonpersonal communication about a good, service, or company B. any communications about a good, service, or company C. any communication that moves a product from one level to another level of the distribution channel D. personal communication from a company representative to prospective buyers E. nonpersonal communication about a good or service that is not paid for or run under identified sponsorship
44. (p. 18) Which of the following is NOT a characteristic of advertising as a form of promotion? A. low cost per contact B. the ability to create images for brands C. the ability to reach large audiences with the advertising message D. immediate feedback and capability to close sales. E. the use of mass media
1-12
Chapter 01 - An Introduction to Integrated Marketing Communications
45. (p. 18) The best-known and most widely discussed form of promotion is: A. personal selling B. sales promotion C. direct marketing D. advertising E. publicity/public relations
46. (p. 18) Which the following is NOT an advantage inherent in the use of advertising? A. ability to control the message B. low cost per contact C. ability to create brand images and symbolism D. immediate feedback E. control of message content and media placement
47. (p. 19) If a company wanted to reach a large consumer audience and create a symbolic image or appeal for a new brand, which promotional mix element would probably be used? A. advertising B. personal selling C. sales promotion D. publicity E. public relations
48. (p. 18-19) Marketers use advertising to: A. create brand image B. strike a responsive chord with consumers when differentiation using other elements of the marketing mix is difficult C. create symbolic appeals for a company or brand D. take advantage of the fact that advertising is a very cost-effective method of reaching a large audience E. do all of the above
1-13
Chapter 01 - An Introduction to Integrated Marketing Communications
49. (p. 20) _____ is a system of marketing by which organizations communicate directly with target customers to generate a response and/or a transaction. A. Advertising B. Sales promotion C. Direct marketing D. Publicity E. Public relations
50. (p. 21) Advertising done by manufacturers of well-known brands on a nationwide basis or in most regions of the country is known as _____ advertising. A. primary demand B. trade C. consumer D. national E. retail See Figure 1-4.
51. (p. 21) Advertising done by Target, Kohl's, and Macy's for the purpose of building store traffic and encouraging consumers to make a purchase now is known as _____ advertising. A. trade B. retail image C. cooperative D. direct-action E. direct-response See Figure 1-4.
1-14
Chapter 01 - An Introduction to Integrated Marketing Communications
52. (p. 21) Advertising done by Blessings Realty Company to encourage consumers to consider it when they are in the market for a new home or are selling their old home is known as _____ advertising. A. national B. primary demand C. secondary demand D. retail/local E. direct-response See Figure 1-4.
53. (p. 21) A used bookstore that ran an ad in which it announced a "12-hour, everything must go" sale would be using: A. homogeneous marketing B. direct-response advertising C. a direct-action promotion D. indirect-response advertising E. bait and switch advertising See Figure 1-4.
54. (p. 21) Primary demand advertising is designed to: A. draw particular attention to a particular branded item B. stimulate demand for a general product class or industry C. help launch a specific line extension D. compare two or more competitors in a real world situation E. create a market share gain for the industry leader See Figure 1-4.
1-15
Chapter 01 - An Introduction to Integrated Marketing Communications
55. (p. 21) _____ advertising is a type of consumer-oriented advertising that focuses on creating demand for a specific company's brand. A. Primary demand B. Selective demand C. Trade D. Secondary demand E. Industrial See Figure 1-4.
56. (p. 21) _____ advertising is targeted at individuals who influence the purchase of goods and services used to make other products. A. Professional B. Primary demand C. Retail D. Industrial E. Direct-response See Figure 1-4.
57. (p. 21) Ads for Wagner Brake Products, Champion spark plugs, MOOG chassis parts, and Keystone wheels in Tire Review, a journal written and published especially for owners/operators of auto shops, are examples of _____ advertising. A. retail B. direct-response C. business-to-business D. professional E. primary-demand See Figure 1-4.
1-16
Chapter 01 - An Introduction to Integrated Marketing Communications
58. (p. 21) Advertisements for Tungue Safekeeper lockable outdoor storage bins in Textile Rental, a publication for those in the uniform and linen rental business, is an example of _____ advertising. A. professional B. trade C. regressive D. progressive E. media mix See Figure 1-4.
59. (p. 20) Which of the following statements about direct marketing is true? A. Direct marketing and direct mail are not synonymous. B. Direct marketing includes a variety of techniques and activities such as direct mail, telemarketing, direct selling, and direct response advertising. C. Direct marketing is used by consumer product companies who distribute their products through retail stores. D. Business-to-business marketers often use direct marketing to identify potential sales leads, communicate with customers, and provide them with information about their products or services. E. All of the above statements about direct marketing are true.
60. (p. 19-20) Which of the following statements about direct marketing is true? A. Direct marketing has not traditionally been considered an element of the promotional mix. B. Direct marketing and direct mail are synonymous. C. One of the major tools of direct marketing is indirect-response advertising. D. Direct marketing is seldom, if ever, used by companies that have an external sales force. E. Direct marketing does not exist beyond direct mail and mail-order catalogs.
1-17
Chapter 01 - An Introduction to Integrated Marketing Communications
61. (p. 20) The Bradford Exchange is a company that sells collectible plates. If you order one plate from the company, you will receive multiple mailings each month announcing new issues and encouraging you to place your order for additional plates the company is making available. Given this information, which promotional element do you think The Bradford Exchange depends upon most heavily? A. advertising B. sale promotion C. direct marketing D. public relations E. pricing
62. (p. 20) One of the major tools of direct marketing is ______ advertising, whereby a product is promoted through an ad that encourages the consumer to purchase directly from the manufacturer. A. direct-response B. primary-demand C. business-to-business D. trade E. selective demand
63. (p. 20) The ad for the Bose Wave radio/CD player in Newsweek magazine has a coupon that you could use to order the radio/CD player, a toll-free number you could call to place an order, and a Web site for placing orders. This ad is an example of _____ advertising. A. direct-response B. primary-demand C. business-to-business D. trade E. secondary demand
64. (p. 22) The Internet is: A. a promotional medium B. a marketing communications tool C. a medium that can be used to execute all the elements of the promotional mix D. an interactive medium E. accurately described by all of the above
1-18
Chapter 01 - An Introduction to Integrated Marketing Communications
65. (p. 22) Coldwater Creek is a retailer that uses its Web site to promote and sell new merchandise. Coldwater Creek views the Internet as a(n) _____ medium. A. interactive B. broadcast C. selective-demand D. print E. one-way
66. (p. 22) According to the text, which of the following is NOT an example of an interactive medium? A. CD-ROMs B. kiosks C. direct marketing D. the Internet E. interactive television
67. (p. 23) _____ includes those marketing activities that provide extra value or incentives for purchasing a product such as coupons and premiums. A. Direct marketing B. Advertising C. Public relations D. Sales promotion E. Brand equity
68. (p. 23) Sales promotions targeted to the ultimate users of a product such as sampling, coupons, contests, or sweepstakes are known as: A. consumer-oriented sales promotion B. trade-oriented sales promotion C. direct marketing incentives D. public relations E. strategic promotions
1-19
Chapter 01 - An Introduction to Integrated Marketing Communications
69. (p. 23) Chicken of the Sea includes coupons in their magazine advertisements. This is an example of: A. consumer-oriented sales promotion B. direct-response advertising campaign C. primary demand advertising campaign D. trade-oriented sales promotion E. service-oriented sales promotion
70. (p. 24) Sales promotion programs targeted toward marketing intermediaries such as wholesalers, distributors, and retailers are known as: A. a consumer-oriented sales promotion B. a trade-oriented sales promotion C. a functional inducement D. direct marketing E. integrated promotions
71. (p. 24) Florafax Wire Service allows a consumer in Alaska to go to his or her local florist and order roses to be sent to a friend in Maine. The Alaskan florist uses Florafax to order the roses from a florist in Maine who will arrange and deliver them. An ad for Florafax in a trade journal for florists offers retail florists a $4 rebate when they send 20 orders and an additional $.75 per order when they use florafax.net online sending. In its ad, Florafax is using: A. a consumer-oriented sales promotion B. a trade-oriented sales promotion C. a functional inducement D. telemarketing E. integrated promotions
72. (p. 24) _____ is nonpersonal communication neither directly paid for nor run under identified sponsorship. A. Advertising B. Sales promotion C. Publicity D. Public relations E. Personal selling
1-20
Chapter 01 - An Introduction to Integrated Marketing Communications
73. (p. 24) How does advertising differ from publicity? A. Advertising is done by manufacturers, and publicity is done be retailers. B. Advertising is personal, and publicity is nonpersonal in nature. C. Advertising is paid for by the sponsoring organization, and publicity is not. D. Advertising is never institutional (i.e., promoting the company itself), and publicity usually is institutional in character. E. Advertising typically utilizes mass media, and publicity does not.
74. (p. 24) Which of the following is NOT a technique used to generate publicity? A. new releases B. feature articles C. photographs, films, and videotapes D. packaging E. press conferences
75. (p. 24) One of the primary advantages inherent in the use of publicity is its: A. ability to be personalized B. credibility C. almost non-existent variable costs D. tangibility E. ability to be closely controlled and monitored by the organization that is being publicized
76. (p. 24) When the individual voted off of The Survivor reality series appears on David Letterman as a guest to discuss the series and his or her role in the series, it is an example of __________________ for the CBS television show. A. advertising B. publicity C. sales promotion D. personal selling E. direct marketing
1-21
Chapter 01 - An Introduction to Integrated Marketing Communications
77. (p. 24) Because of the perceived objectivity of the source, which element of the promotional mix is usually regarded as most credible? A. advertising B. publicity C. packaging D. sales promotion E. direct marketing
78. (p. 25) Which of the following statements about publicity and public relations is true? A. Publicity generally has a broader purpose and objective than public relations. B. Publicity is the only tool used in a firm's public relations efforts. C. Publicity is one of the most important communication techniques used in public relations D. Publicity has more of a long term, on-going purpose than public relations. E. Publicity and public relations are synonyms for each other.
79. (p. 25) Which of the following statements describes a disadvantage associated with publicity? A. Publicity is expensive to implement. B. Publicity has relatively low credibility. C. Publicity is not always under the control of the organization that reaps the negative and positive benefits from it. D. Publicity is not useful with a market segmentation strategy. E. Publicity makes a market aggregation strategy ineffective.
80. (p. 25) An article in Financial Times announced that Puma had developed the Thrift shoe, based on its award-winning design. The Thrift shoe was to be made in a limited edition of 510 pairs of fabric from second-hands clothes and would not be available in the U.S. According to the article, each pair would come complete with a numbered certificate of authenticity and a private password for the dedicated Web page so all proud owners could "swap their soles." The article created interest in the shoes and is an example of: A. sales promotion B. advertising C. personal selling D. sponsorship E. positive publicity
1-22
Chapter 01 - An Introduction to Integrated Marketing Communications
81. (p. 25) A lawsuit charged a mortgage lender with racism because it allegedly charged African-American borrowers higher rates than other borrowers. News of the lawsuit was reported by the wire service, and it appeared in several newspapers. This is an example of: A. sales detraction B. negative advertising C. cause selling D. negative publicity E. neutral publicity
82. (p. 25) A review of a movie in Newsweek magazine or on the Good Morning America television show is an example of: A. personal selling B. publicity/public relations C. promotion D. advertising E. media-selling
83. (p. 25) When an organization systematically plans and distributes information in an attempt to control and manage the nature of the publicity it receives and its image, it is engaging in a function known as: A. image management B. advertising C. integrated marketing D. public relations E. sales promotion
84. (p. 25) _____ is the management function that evaluates public attitudes, identifies the policies and procedures of an individual or organization with the public interest, and executes a program of action to earn public understanding and acceptance. A. Direct marketing B. Publicity C. Corporate affairs D. Public relations E. Sales promotion
1-23
Chapter 01 - An Introduction to Integrated Marketing Communications
85. (p. 25) In response to allegations that it charged African-Americans higher mortgage rates than others, the mortgage lender created a mystery shopper program in which it sent out African-American customers to report on their experience with the firm's lending offices. Their reports were released to the news media. This is an example of: A. public relations B. advertising C. media-selling D. sales promotion E. cause marketing
86. (p. 25) Public relations involves all of the following EXCEPT: A. sponsorship of a fun run to benefit breast cancer research B. financial and personnel involvement in local arts and crafts festival C. product design D. participation in the community effort to build a playground E. publicity
87. (p. 25) _____ is a promotional mix element that allows for direct contact between a buyer and seller and allows a message to be modified according to the needs or reactions of the customer. A. Advertising B. Direct mail C. Public relations D. Sales promotion E. Personal selling
88. (p. 25-26) Which of the following statements accurately describe how mass communication differs from personal communication? A. To reach a large audience, interpersonal communication is faster. B. Interpersonal communication messages are more easily adapted to the receiver. C. Mass communication has a greater ability to attract attention. D. Cost per individual reached tends to be higher with mass communication. E. Feedback tends to be more accurate with mass communication.
1-24
Chapter 01 - An Introduction to Integrated Marketing Communications
89. (p. 25-26) The promotional mix element that allows for the most immediate and precise feedback from the customer is: A. advertising B. sales promotion C. direct marketing D. public relations/publicity E. personal selling
90. (p. 26) Which of the following organizations is most likely to rely heavily on personal selling? A. marketers of packaged goods products like detergent, cake mixes, and sugar B. the hotel and restaurant industry C. governmental regulatory agencies D. business-to-business marketers of robotic surgical equipment E. a retailer that sells professional sports uniforms
91. (p. 25) Business-to-business marketers who sell expensive, risky, and often complex products rely most heavily on which of the following promotional tools? A. print advertising B. coupons C. direct mail D. personal selling E. pricing
92. (p. 25) What is the major advantage of personal selling over advertising as a communication method? A. Personal selling generates more sales per dollar invested. B. Personal selling improves the image of the firm. C. Personal selling activates the receiver's selective processes, and advertising does not. D. Personal selling results in sales responses that are more difficult to measure than advertising is. E. Personal selling is more persuasive because the communicator can judge the sales prospect and modify his or her message accordingly.
1-25
Chapter 01 - An Introduction to Integrated Marketing Communications
93. (p. 26) Kerry is asked to evaluate the strengths and weaknesses of each IMC tool being used by the agency and make recommendations to plan and execute communications with target audiences. Kerry is engaged in: A. survey research strategies B. account-client articulation agreements C. integrated marketing communications management D. derived demand analysis E. efficient synergy management
94. (p. 26) How does the integrated marketing communications 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 advertising. C. IMC recognizes that marketers must be able to use a wide range of marketing and promotional tools to communicate effectively and 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. All of the above describe ways that the IMC perspective differs from traditional approaches to promotion.
95. (p. 26) _____ is the process for planning, executing, evaluating, and controlling the use of the various promotional-mix elements to effectively communicate with target audiences. A. Integrated advertising marketing B. Integrated marketing communications management C. Market auditing D. Situation analysis E. Communications process accounting
96. (p. 28) The _____ is a written document that describes the overall marketing strategy and programs developed for an organization, product line, or brand. A. promotional plan B. marketing plan C. communications plan D. marketing audit E. situation analysis
1-26
Chapter 01 - An Introduction to Integrated Marketing Communications
97. (p. 28) A marketing plan usually includes all of the following EXCEPT: A. a program for implementing marketing strategy B. criteria and procedures for the hiring all marketing personnel C. a way to monitor and evaluate performance D. the establishment of marketing objectives E. a detailed situation analysis
98. (p. 28) A marketing plan usually includes: A. a corporate mission statement B. job descriptions and job specifications C. a media schedule D. a detailed situation analysis E. sales and market forecasts
99. (p. 28) The first step in the IMC planning process is: A. the situation analysis B. budget determination. C. a review of the marketing plan D. specification of communications objectives E. development of the promotional mix strategies
100. (p. 30) The second stage of the IMC planning process is the: A. mission statement B. development of marketing job descriptions C. promotional analysis D. advertising plan E. marketing plan See Figure 1-6.
1-27
Chapter 01 - An Introduction to Integrated Marketing Communications
101. (p. 31) An internal situation analysis looks at all of the following EXCEPT: A. competitive analyses B. corporate and brand image analyses C. organization of the promotional department D. results of the firm's previous promotional programs E. ability of the firm to implement new promotional programs See Figure 1-7.
102. (p. 31) An external situation analysis could include all of the following EXCEPT: A. a competitive analysis B. a hierarchy for firm's marketing and promotion departments C. a review of legal and regulatory factors D. an analysis of overall economic trends in society E. an analysis of consumer purchase patterns and behavior See Figure 1-7.
103. (p. 29) The situation analysis stage of the promotional planning process is intended to: A. specify the media to be used in the promotions strategy B. designate the pricing strategy and tactics that a firm should use C. accurately assess the relevant strengths, weaknesses, problems, and opportunities that confront a firm in developing marketing and promotional plans D. decide length and type of channels of distribution E. do all of the above
104. (p. 33) _____ refer to what is to be accomplished by the overall marketing program and is stated in terms of sales, market share, and profitability. A. Communication objectives B. Marketing objectives C. Advertising platforms D. Segmentation approaches E. External analysis factors
1-28
Chapter 01 - An Introduction to Integrated Marketing Communications
105. (p. 33) _____ refer to what the firm seeks to accomplish with its promotional program and are often stated in terms of the nature of the message to be communicated. A. Communication objectives B. Sales quotas C. Advertising platforms D. Shaping goals E. External analysis factors
106. (p. 33) Which of the following is NOT a good example of a communications objective? A. to create awareness of the attributes of a brand or product B. to create a favorable attitude about a product C. to develop consumers' intentions to purchase a product D. to create awareness about a new brand E. to increase sales volume
107. (p. 33) _____ should be the guiding force for development of the overall marketing communications strategy and of objectives for each element of the promotional mix. A. Communication objectives B. Sales objectives C. Marketing objectives D. Promotional objectives E. All of the above
108. (p. 33) What is the next stage in the IMC planning process, once marketing and communication objectives have been set? A. budget determination B. implementation of those objectives C. media selection scheduling D. recruitment of marketing and promotion personnel E. development of the IMC program See also Figure 1-7.
1-29
Chapter 01 - An Introduction to Integrated Marketing Communications
109. (p. 34) The development of the advertising message that the marketer wants to convey to its target audience is called _____, and the determination of which communications channels to use to deliver the message is _____. A. creative strategy; media strategy B. media strategy; message strategy C. the marketing program; the communications program D. the Five Cs; the 4 Ms E. message strategy; channel strategy
110. (p. 34) According to the planning model presented in the text, the most involved and detailed step of the promotional planning process is: A. reviewing the marketing plan and situation analysis B. determining the promotional budget C. developing the integrated marketing communications (IMC) program D. monitoring, evaluating, and controlling the promotional program E. determining the media strategy See also Figure 1-6.
111. (p. 34) According to the IMC planning model,: A. promotional mix elements share a set of objectives and a strategy for meeting these objectives B. objectives and strategies for each promotional mix element are based on advertising goals C. budgeting is done only for advertising D. it is important to monitor, evaluate, and control the promotional program to determine how well it is meeting communications objectives E. the internal and external situation analysis is done after the budget is determined See also Figure 1-6.
1-30
Chapter 01 - An Introduction to Integrated Marketing Communications
112. (p. 35) The final stage of the IMC planning model is: A. budget determination B. the development of the media strategy C. analysis of communication process D. integrating creative strategies E. monitoring, evaluation, and control See also Figure 1-6.
1-31
Chapter 02 - The Role of IMC in the Marketing Process
Chapter 02 The Role of IMC in the Marketing Process
Multiple Choice Questions 1. (p. 39-40) Under Armour developed dynamic advertising, sponsorships of sports leagues, a creative Web site and celebrity spokespeople to promote their sports and clothing products. Under Armour is engaged in: A. integrated marketing communications B. a centralized market strategy C. a concentrated market strategy D. an undifferentiated market strategy E. lifestyle segmentation based on sports See opening vignette.
2. (p. 41) According to the marketing and promotions process model, which of the following is NOT a stage in the target marketing process? A. market identification B. promotional decisions C. market segmentation D. positioning through marketing strategies E. target market selection
3. (p. 41) The marketing promotion model includes all of the following major components EXCEPT: A. the organization's marketing strategy and analysis B. the marketing planning program development C. the target marketing process D. the marketing management hierarchy plan E. the target market
2-1
Chapter 02 - The Role of IMC in the Marketing Process
4. (p. 41) According to the marketing and promotions process model, the marketing process begins with the: A. development of the marketing mix B. development of a marketing strategy and analysis C. development of the promotional mix D. determination of the target market E. establishment of marketing objectives
5. (p. 42) A(n) _____ is a document that evolves from an organization's overall corporate strategy and serves as a guide for specific marketing programs and policies. A. strategic marketing plan B. integrated marketing communications plan C. situation analysis D. opportunity analysis E. competitive plan
6. (p. 42) _____ are defined as external areas where there are favorable demand trends, where customer needs and wants are not being satisfied, and where a company thinks it can compete effectively. A. Market opportunities B. Market segments C. Competitive advantages D. Market strengths E. Market plans
7. (p. 43) To reach tweens (8-12 year olds), Jell-O brand gelatin marketers introduced X-treme Jell-O in wild berry, green apple, and watermelon flavors. The ads describe the gelatin flavors as "Jell-O with an attitude" because these fruit flavors "will bite you back." Jell-O has defined tweens as: A. part of an undifferentiated market B. aggregated market C. a response-stimulus market D. the mass market for gelatin E. a market segment
2-2
Chapter 02 - The Role of IMC in the Marketing Process
8. (p. 43) China is the world's second-largest beer market after the U.S. It is also one of the fastest growing with annual growth of 10 percent. Anheuser-Busch responded to this _____ in China when it established Budweiser Wulhan International Brewing in central China. There it brews Budweiser and Budweiser Ice which are sold to the local market. A. market opportunity B. market aggregation C. competitive advantage D. market strength E. market threat
9. (p. 43) Anyone who has ever attended a state fair understands how complicated the ticketing system can be. Attendees buy a number of tickets and then turn them in to various ride operators. One ride may require 3 tickets, another 5, and another 2. The system was complicated for workers and for consumers. A company named Funtastic has developed a SmartCard that is purchased at the ticket booth for any amount customers want to spend. Each ride requires one swipe of the card, and the amount of the ride is deducted electronically from the card's total. Funtastic has recognized a: A. market opportunity B. market segment C. competitive advantage D. market strength E. market threat
10. (p. 43) There are many different types of medicines for relieving allergy symptoms, and there are several that offer 24-hour relief, but only Alavert comes in a quick-dissolving form that can be easily swallowed without water. The maker of Alavert hopes the fact that it dissolves and enters the system more quickly than other brands will create a: A. market aggregation B. market segment C. competitive advantage D. market strength E. market threat
2-3
Chapter 02 - The Role of IMC in the Marketing Process
11. (p. 43) When the brand marketing manager for Hostess Twinkies snack cakes analyzes the competition, he or she should look at: A. Little Debbie snack cakes B. Lay's potato chips C. Washington State apples D. SunMaid raisins E. any food that might be eaten as a snack
12. (p. 43) _____ is something unique or special a firm possesses or does that gives it an edge over its competitors. A. Brand quality B. Brand equity C. A competitive advantage D. Brand power E. A market opportunity
13. (p. 43) Competitive advantage can be achieved through: A. quality products that command a premium price B. excellent advertising that creates and maintains product differentiation C. low production costs and low prices D. strong channels of distribution E. all of the above.
14. (p. 45) Today many people take an aspirin at their doctor's recommendation as preventive medicine. The maker of Bayer aspirin has added calcium to its aspirin. The calcium is also often recommended by doctors to help maintain bone density. There are many types of aspirin on the market, but only one brand that also contains calcium. For Bayer, this calcium additive is an example of: A. brand quality B. brand equity C. a competitive advantage D. brand power E. a market opportunity
2-4
Chapter 02 - The Role of IMC in the Marketing Process
15. (p. 44-45) Which of the following is part of an IMC strategy used by the San Diego Padres to reach diverse audiences? A. bilingual broadcasts B. e-mail newsletter C. Padres Jr. promotions D. corporate sponsorships. E. all of the above See Diversity Perspective 2.1.
16. (p. 45) The first step in the target marketing process is to: A. develop positioning strategies B. request government approval C. determine whether to use a market segmentation strategy or a mass marketing strategy D. identify markets with unfulfilled needs E. develop new products
17. (p. 45) The market segmentation process: A. divides a market into distinct groups that have heterogeneous needs B. divides a market into distinct groups that will respond similarly to marketing actions C. offers one version of the product to all markets D. identifies markets with unfulfilled needs E. positions products in the minds of prospects and customers
18. (p. 46) Factors that influence the decision as to how far the segmentation process should go include: A. whether the segment is accessible B. whether sufficient funds exist for developing the necessary advertising campaign C. the availability of media that reaches the segment D. the ability of the sales force to reach the segment E. all of the above
2-5
Chapter 02 - The Role of IMC in the Marketing Process
19. (p. 48) NASCAR, Coors, and Unilever have found that: A. the Hispanic market is a sizable and growing market segment B. psychographic segmentation of NASCAR fans will lead to increase beer and personal care product sales C. before benefit segmentation can be used the costs need to be assessed D. geographic differences in topography lead to intrinsic supply chain variations E. demographic segmentation among Asian immigrant populations can lead to reduced postpurchase anxiety
20. (p. 50-51) When retail buyers told the people who sold Duck Tape brand duct tape that tweens and teens were significant purchasers of the tape and used it to repair skateboards and other extreme sports equipment, the makers of Duck Tape introduced duct tape in wild neon colors specifically for this market because research showed this market liked fun colors. By targeting tweens and teens that skateboard and engage in other extreme sports, the maker of Duck Tape used _____ segmentation. A. geographic and demographic B. sociocultural C. demographic and behavioristic D. behavioristic and psychographic E. demographic and psychographic
21. (p. 50) Division of the market based on age, sex, family size, income, and other measurable characteristics is known as: A. demographic segmentation B. psychographic segmentation C. quantified aggregation D. lifestyle aggregation E. undifferentiated marketing
22. (p. 50) All of the following are demographic factors EXCEPT: A. age B. family size C. income D. sex E. product usage
2-6
Chapter 02 - The Role of IMC in the Marketing Process
23. (p. 50) Bubba's Frozen Barbecue Sandwiches contain pork drenched with a vinegar-based barbecue sauce. It would not be popular in Texas where barbecue lovers want goat meat, or in the Carolinas where a mustard-based sauce is preferred. Given this information, Bubba's should use _____ segmentation. A. demographic B. buying condition C. personality D. geographic E. behavioristic
24. (p. 51) An ad for Shangri-La Travel Agency offers trips especially designed for grandparents and their grandchildren to enjoy together. This example illustrates the use of _____ segmentation. A. geographic B. demographic C. lifestyle D. behavioristic E. personality
25. (p. 51) General Foods' determination that Southerners preferred milder mustard than those in the Northeast led the company to develop a new "Southern Style Mustard." This strategy best exemplifies: A. geographic segmentation B. lifestyle segmentation C. concentrated marketing D. usage segmentation E. undifferentiated marketing
26. (p. 51) Ads for consumer finance companies are often aimed at people making annual salaries of $25,000 or less. Consumer finance companies are using _____ segmentation. A. geographic B. demographic C. lifestyle D. behavioristic E. personality
2-7
Chapter 02 - The Role of IMC in the Marketing Process
27. (p. 51-52) Gatorade sports drink has defined its target market as 18-34 year old males who are active in sports. Which two bases of segmentation is Gatorade employing? A. benefit and demographic B. psychographic and geographic C. demographic and psychographic D. geographic and benefit E. benefit and psychographic
28. (p. 52) An ad for Nivea Visage Wrinkle Control states that the cream allows women to "give their skin back its own wrinkle control." It shows a woman in her forties using the product. This ad is using _____ segmentation. A. behavioristic and benefit B. benefit and demographic C. psychographic and behavioristic D. geographic and benefit E. demographic and psychographic
29. (p. 50) Which of the following is a potential basis for segmenting the consumer market for prune juice? A. age B. how often juice is drunk C. benefits sought D. lifestyle E. all of the above See Figure 2-4.
30. (p. 50) Which of the following would be an example of a demographic segmentation variable in the industrial market? A. number of employees B. type of buy C. nature of product D. region of country E. purchase location See Figure 2-4.
2-8
Chapter 02 - The Role of IMC in the Marketing Process
31. (p. 50) Which of the following is NOT a variable commonly employed in the segmentation of industrial markets? A. lifestyle B. geographic C. demographic D. buying condition E. nature of good See Figure 2-4.
32. (p. 50) An example of demographic segmentation in industrial markets would be: A. number of establishments B. number of employees in the firm C. annual sales volume D. number of production workers E. all of the above See Figure 2-4.
33. (p. 50) Nature of the good and the buying conditions are examples of industrial-based _____ segmentation. A. demographic B. benefit C. buying situations D. behavioristic E. geographic See Figure 2-4.
34. (p. 51) _____ divides a market on the basis of lifestyles. A. Leisure marketing B. Psychographic segmentation C. Benefit segmentation D. Demographic segmentation E. Behavioristic segmentation
2-9
Chapter 02 - The Role of IMC in the Marketing Process
35. (p. 51) Crossings is the name of a book club designed to appeal to conservative Christians. It sells inspirational fiction and nonfiction books that express moral values consistent with the views of these Christians. Crossings uses _____ segmentation. A. psychographic B. demographic C. behavioristic D. usage E. geographic
36. (p. 51) The ad for the Disney Institute at Walt Disney World describes vacations during which an individual can immerse him or herself in the joys of gardening for a week and take classes with horticulturists. This is an example of _____ segmentation. A. psychographic B. demographic C. behavioristic D. usage E. geographic
37. (p. 52) _____ segmentation divides consumers into groups according to their usage, loyalties, or buying responses to a product. A. Benefit B. Geographic C. Demographic D. Behavioristic E. Psychographic
38. (p. 52) Research shows that about two-thirds of the new insurance policies Prudential sells will be to current policyholders. This information indicates a(n) ______ segmentation would be appropriate for Prudential to use along with demographic and psychographic segmentation. A. benefit B. geographic C. SRI D. behavioristic E. VALS
2-10
Chapter 02 - The Role of IMC in the Marketing Process
39. (p. 52) New York Telephone uses _____ segmentation to segment consumers in terms of how much leisure telephone calling they do. It advertises on "Nick at Night" and MTV when it wishes to target the group it calls "chatterboxes." A. behavioristic B. benefit C. demographic D. geographic E. VALS
40. (p. 52) Which of the following bases for segmentation is employed when consumers are grouped according to their use of a product or service (heavy versus light)? A. behavioristic B. demographic C. benefit D. lifestyle E. psychographic
41. (p. 52) Degree of usage as a basis of segmentation is best reflected by: A. demographic segmentation variables B. the iceberg principle C. the benefit rule D. the rule of equity E. the 80-20 rule
42. (p. 52) _____ segmentation is most closely related to the "80-20 rule," which states that 80 percent of a company's business comes from 20 percent of its customers. A. Geographic B. Behavioristic C. Demographic D. Psychographic E. Benefit
2-11
Chapter 02 - The Role of IMC in the Marketing Process
43. (p. 52) _____ segmentation is the grouping of customers on the basis of attributes sought in a product. A. Benefit B. Geographic C. VALS D. Demographic E. Lifestyle
44. (p. 52) An advertising campaign stating that BMW "outperforms most cars on the road even before you step on the accelerator" is an example of _____ segmentation. A. benefit B. demographic C. geographic D. VALS E. SRI
45. (p. 52) The ad for Tempur-Pedic's weight control mattress describes the mattress as "a perfect refuge from the cares of the day." This description indicates that the mattress maker is using _____ segmentation to define its market. A. benefit B. demographic C. geographic D. behavioristic E. SRI
46. (p. 52) The fact some consumers want pure bottled water while some want flavored bottle water and others want bottled water with added minerals provides an opportunity for _____ segmentation in the bottled water market. A. behavioristic B. benefit C. geographic D. psychographic E. demographic
2-12
Chapter 02 - The Role of IMC in the Marketing Process
47. (p. 52) Volvo's strategy of emphasizing the safety of its cars in their advertising reflects a positioning strategy based on: A. benefit segmentation B. demographic segmentation C. psychographic segmentation D. positioning by price/quality E. positioning by product class
48. (p. 55) When Coca-Cola only had one product in its line and was targeting everyone, the company was employing: A. concentrated marketing B. undifferentiated marketing C. market atomization D. niche marketing E. benefit segmentation
49. (p. 55) When MetaboLife first came on the market, its only product was a weight-loss pill that was guaranteed to energize the user by causing a greater level of physical activity, which would burn calories. This was its only product, and it was marketed to anyone who wanted to lose weight or have more energy. This means, that its target market was virtually anyone breathing because very few people like their current weight, and everyone could use a little more energy. MetaboLife used: A. concentrated marketing B. undifferentiated marketing C. market atomization D. niche marketing E. demographic segmentation
50. (p. 55) _____ involves developing separate marketing strategies for a number of segments. A. Differentiated marketing B. Undifferentiated marketing C. Concentrated marketing D. Behavioristic segmentation E. Geographic segmentation
2-13
Chapter 02 - The Role of IMC in the Marketing Process
51. (p. 55) L'Oreal, the giant cosmetics manufacturer, targets the luxury market with Helena Rubinstein and Lancôme brands. Its less expensive brands like Elseve and L'Oreal are sold by discount retailers. L'Oreal uses: A. concentrated marketing B. undifferentiated marketing C. market atomization D. niche marketing E. differentiating marketing
52. (p. 55) Coca-Cola's offerings of diet, cherry-flavored, vanilla-flavored, and caffeine-free versions of its product in addition to its original product reflect the company's decision to serve: A. concentrated markets B. differentiated markets C. a demographic segment D. an undifferentiated market E. none of the above
53. (p. 55) Thirteen percent of all American males are shorter than 5'6". A retail store that sells exclusively to men of this size is using: A. market aggregation B. undifferentiated marketing C. concentrated marketing D. market atomization E. demographic segmentation
54. (p. 55) When Bruce Teilhaber opened his 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 appreciate the variety and quality of shoes Tielhaber carries and often order a dozen new pairs in a single visit. This shoe store uses: A. market aggregation B. undifferentiated marketing C. concentrated marketing D. market atomization E. demographic segmentation
2-14
Chapter 02 - The Role of IMC in the Marketing Process
55. (p. 55) When Rolls Royce attempts to capture a large market share of the $300,000 car buying market and only that market, it is an example of: A. market aggregation B. undifferentiated marketing C. concentrated marketing D. market atomization E. demographic segmentation
56. (p. 56) _____ is defined as the art and science of fitting the product or service to one or more segments of the broad market in such a way as to set it meaningfully apart from competition. A. Target marketing B. Benefit segmentation C. Undifferentiated marketing D. Demographic segmentation E. Positioning
57. (p. 56) A brand's market position refers to its: A. relative market share B. location on store shelves C. image D. distribution intensity E. stage in the product life cycle
58. (p. 56) The key factor in communicating information about a brand and differentiating it from competitors is: A. its perceived price differential B. its integrated promotional strategy C. the market positioning strategy assigned it by its manufacturer D. its distribution intensity E. the benefits the brand offers
2-15
Chapter 02 - The Role of IMC in the Marketing Process
59. (p. 56) BMW's positioning of its convertible as "the ultimate tanning machine" would reflect a positioning strategy based on: A. product attributes and benefits B. cultural symbols C. product user D. price/quality E. competitors
60. (p. 57) The headline on the ad for Broilmaster Grill read, "The Most Durable Grill Known to Man." Broilmaster is using a positioning strategy based on: A. product class B. product attributes and benefits C. price/quality D. competitor E. cultural symbol
61. (p. 57) Isopure positions itself as a zero-carb muscle recovery drink. Isopure is using a _______________________ positioning strategy. A. product class B. product attributes and benefits C. price/quality D. competitor E. cultural symbol
62. (p. 57) United Parcel Service (UPS) built its advertising campaign around the slogan, "moving at the speed of business." This slogan was an example of a positioning strategy based on: A. cultural symbols B. demographics C. price-value D. product attribute and benefit E. competitor
2-16
Chapter 02 - The Role of IMC in the Marketing Process
63. (p. 57) The manufacturer of Mercedes-Benz autos stressed that the car had side door air bags in an attempt to attract new buyers. Its focus on safety illustrated a strategy of positioning by: A. cultural symbols B. demographics C. price-value D. product attribute and benefit E. competitor
64. (p. 57) Wal-Mart has been very effective in positioning itself as a store that offers quality products at a very good price. Their strategy reflects positioning based on: A. benefit segmentation B. demographic segmentation C. psychographic segmentation D. price/quality E. product class
65. (p. 57) McDonald's Big &Tasty burger was advertised as a juicy quarter-pounder with lettuce, tomatoes, and all the trimmings that can be purchased for $1 from McDonald's Dollar Menu. The Big & Tasty burger and other items on the Dollar Menu are positioning by: A. competitor B. demographics C. product user D. price/quality E. product class
66. (p. 58) Campbell's ads contain quick and easy recipes that can be made using Campbell's soups. This is an example of positioning by: A. product class B. product use C. price/quality D. competitor E. cultural symbol
2-17
Chapter 02 - The Role of IMC in the Marketing Process
67. (p. 58) The Florida Orange Juice Commission's advertising campaign based around the slogan, "It's not just for breakfast anymore," reflected positioning by: A. product user B. use or application C. product class D. competitor E. cultural symbol
68. (p. 58) Athletic shoes advertised for tennis courts, running, or for walking are using positioning based on: A. price/quality B. use or application C. product class D. product user E. cultural symbols
69. (p. 58) To encourage more people to use mass transit, ads from metropolitan transportation services compare the ease and comfort of riding mass transit with the difficulties of congested traffic and parking headaches. These urban bus and subway services are using positioning by: A. product class B. product user C. price/quality D. product attributes E. cultural symbols
70. (p. 58) Digital cameras, computers, and high-quality printers are allowing people to take and process their photographs. An owner of a film-processing store could advertise the benefits of professional photograph finishing when compared to printer copies, which will fade over time. The film-processing store could use positioning by: A. product class B. product demographics C. product user D. competitor E. cultural symbol
2-18
Chapter 02 - The Role of IMC in the Marketing Process
71. (p. 51-58) Which of the following is NOT an example of a basis for implementing a positioning strategy? A. price/quality B. use or application C. cultural symbol D. product class E. distribution intensity
72. (p. 58) When Bruce Teilhaber opened his 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 appreciate the variety and quality of shoes Tielhaber carries and often order a dozen new pairs in a single visit. The shoe store uses positioning by: A. product demographics B. cultural symbols C. product user D. competition E. product class
73. (p. 58) In 2002, United Parcel Service (UPS) introduced a new slogan around which it would base all of its new advertising strategy. The slogan was, "What can brown do for you?" and is indicative of a positioning strategy based on: A. product attributes B. cultural symbols C. product user D. competition E. product class
74. (p. 58) An ad for Gaylord shorts found in Runner's World magazine shows how the shorts do not bind and are made of a light fabric that helps keep the wearer dry and cool. Gaylord is using positioning by: A. product user B. product demographics C. cultural symbol D. product class E. distribution intensity
2-19
Chapter 02 - The Role of IMC in the Marketing Process
75. (p. 58) Which of the following would constitute a positioning strategy focusing on the competitor? A. BMW--"The Ultimate Driving Machine" B. Red Roof Inns--"Equal Value at a Lower Price" C. Oneida flatware--"Your Table Is Ready" D. Coca-Cola--"The Real Thing" E. Broilmaster grill--"The Most Durable Grill Known to Man"
76. (p. 58) Progresso soup positioned itself as better tasting and more appropriate to the adult palate to gain a competitive advantage over Campbell's soup. Progresso used positioning by: A. product attributes B. cultural symbols C. competitor D. product user E. product class
77. (p. 58) The use of comparative advertising has become more and more common. Which of the following positioning strategies does this reflect? A. positioning by product user B. positioning by product class C. positioning by competitor D. positioning by price/quality E. positioning by cultural symbol
78. (p. 58) When many frequent travelers think of Australian-based Quantas Airlines, the first thing that comes to mind is the koala bear. Because of this strong association, Quantas is receiving the benefit of positioning by: A. product class B. use/application C. cultural symbol D. product attribute E. competitor
2-20
Chapter 02 - The Role of IMC in the Marketing Process
79. (p. 58) The use of the gecko lizard in the Geico Direct insurance company commercials indicates a positioning strategy based on: A. price/quality B. use or application C. cultural symbol D. product class E. distribution intensity
80. (p. 58) _____ is often difficult to accomplish due to previously entrenched attitudes toward the product or brand. A. Positioning by cultural symbols B. Positioning by price/quality C. Positioning by product attributes D. Repositioning E. Positioning by product user
81. (p. 58) Unisys Corporation engaged in a multi-million dollar campaign to alter its perceptions among many of its customers that it was simply a hardware manufacturer. Unisys wants customers to see it as a services and technology provider. Unisys was: A. using a repositioning strategy B. segmenting the market in new, more profitable ways C. adopting a concentrated strategy D. adopting an undifferentiated strategy E. employing lifestyle segmentation
82. (p. 58) Years ago United Parcel Service (UPS) ran an ad campaign based around the slogan, "moving at the speed of business." Later, UPS introduced a new slogan, "What can brown do for you?" The new ads are designed to make customers aware of the different services besides fast delivery that UPS offers. By moving away from promoting itself as simply a delivery company, UPS has: A. used a repositioning strategy B. segmented the market in new, more profitable ways C. adopted a concentrated strategy D. adopted an undifferentiated strategy E. employed lifestyle segmentation
2-21
Chapter 02 - The Role of IMC in the Marketing Process
83. (p. 59) Initially, Crush orange drink was marketed to teenagers, but when Cadbury Beverages acquired the drink, it was already marketing Sunkist orange drink to teens. Cadbury used _____ to move Crush toward a drink for the whole family to enjoy. A. positioning by cultural symbols B. positioning by price/quality C. positioning by product attributes D. repositioning E. positioning by product category
84. (p. 59) During declining or stagnant sales, marketers of a product often attempt: A. product repositioning B. concentrated marketing C. differentiated marketing D. undifferentiated marketing E. product differentiation
85. (p. 59-60) All of the following are steps in the development of a positioning platform EXCEPT: A. identification of competitors B. analyzing consumers' preferences C. determining competitors' positions D. making the positioning decision E. marketing segmentation
86. (p. 59) The first step in the development of the positioning platform is to: A. identify competitors B. analyze consumers' preferences C. determine competitors' positions D. make the positioning decision E. implement market segmentation
2-22
Chapter 02 - The Role of IMC in the Marketing Process
87. (p. 60) When marketers are attempting to identify the ideal brand or product, they are in which stage of the positioning platform development? A. identification of competitors B. analyzing consumers' preferences C. determining competitors' new-product processes D. making the positioning decision E. marketing segmentation
88. (p. 61) A marketer who is developing a marketing planning program is making decisions about: A. all of the elements in the marketing mix B. market segmentation variables C. the type and number of marketing objectives to set D. positioning strategies to use E. the organization's mission statement
89. (p. 61) The meaning a consumer attributes to a product or brand and what he or she experiences in purchasing it is known as: A. functional utility B. product quality C. brand extension D. product symbolism E. product utility
90. (p. 61-62) Which of the following is NOT considered a part of the product offering? A. packaging B. branding C. marketing channels D. warranties E. after-the-sale service
2-23
Chapter 02 - The Role of IMC in the Marketing Process
91. (p. 60-61) Which of the following is considered a part of the product offering? A. service B. warranties C. symbolic meanings D. packaging E. all of the above
92. (p. 62) How does strong brand equity benefit the seller? A. Product quality becomes completely irrelevant. B. It allows the seller to use undifferentiated marketing. C. It enables the seller to hide product success from its competition. D. It allows the seller to achieve higher sales volume and/or profit. E. All of the above statements describe how strong brand equity benefits the seller.
93. (p. 62) _____ is the intangible asset of added value or goodwill that results from the favorable image, impressions, differentiation, and/or strength of a consumer's attachment to a company's name or trademark. A. Product affiliation B. Product symbolism C. Brand equity D. Brand symbolism E. Trademark recognition
94. (p. 62) Which of the following statements about packaging is true? A. Packaging is one of the promotion decisions. B. Self-service stores have changed the emphasis placed on packaging. C. Packaging is one of the distribution decisions. D. Packaging is not part of an integrated marketing communications strategy. E. Packaging plays a key role in establishing product symbolism.
2-24
Chapter 02 - The Role of IMC in the Marketing Process
95. (p. 63) The marketing mix variable that deals with what a consumer must give up to purchase a product or service is: A. product B. price C. promotion D. distribution E. production
96. (p. 63) With increased competition, marketers are replacing ads with packaging to: A. reduce dependence on the demographic marketing approach B. attempt to limit competitive responses to uncontrolled variables C. offer a low-tech approach that appeals to late adopters and laggards D. present their selling proposition E. integrate a niche marketing strategy for infrequent buyers See IMC Perspective 2-3.
97. (p. 64) When developing a _______________________, costs, competition, demand factors, and perceived value must be taken into consideration. A. target market B. channel of distribution C. promotional mix D. pricing strategy E. segmentation strategy
98. (p. 64) Promotional expenditures on advertising, sales promotion, and personal selling: A. are not relevant when determining a pricing structure B. are incomes that must be covered in a firm's pricing structure C. contribute to a product's cost and price and thus make it harder to sell D. are expenses that must be covered but can also help reduce costs by creating demand for a product E. are examples of fixed costs on an organization's income statement
2-25
Chapter 02 - The Role of IMC in the Marketing Process
99. (p. 64) 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 life cycle. 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 are damaged the least, in terms of return on investment, by inconsistent advertising and pricing strategies. D. Brands with low relative advertising budgets are able to charge premium prices. E. None of the above statements about the interaction of pricing with advertising and promotion is true.
100. (p. 64) Marketing _____ are the set of interdependent organizations involved in the process of making a product or service available for consumption. A. channels B. hierarchies C. facilitators D. consumers E. programs
101. (p. 65) Doncaster is a company that sells fashionable women's clothing through wardrobe parties. It targets women who are too busy to go to stores to shop. Doncaster is utilizing a(n): A. direct channel of distribution B. indirect channel of distribution C. marketing intermediary D. direct-response advertising medium E. reseller channel
102. (p. 65) Which of the following is an example of a reseller? A. a real estate agency B. an auction company C. McRae's department store D. Clyde Fitch Wholesale Grocer E. all of the above
2-26
Chapter 02 - The Role of IMC in the Marketing Process
103. (p. 65) Hunter ceiling fans are sold to retailers who then sell them to ultimate consumer. The manufacturer of Hunter ceiling fans is using a(n): A. direct channel of distribution B. indirect channel of distribution C. multiple-level channel D. direct-response advertising medium E. reseller channel
104. (p. 63) ______ are programs designed to persuade the retailer to promote a manufacturer's products. A. Promotional pull strategies B. Spot television campaigns C. Spot radio campaigns D. Promotional push strategies E. Progressive adherence policies
105. (p. 66) With _____, advertising expenditures and promotional efforts are directed toward the ultimate consumer. A. promotional pull strategies B. promotional push strategies C. trade advertising D. market harvesting strategies E. non-intermediary marketing
106. (p. 66) An ad for Aricept, a prescription-only drug for patients in the early stages of Alzheimer's disease, was published in a Better Homes & Gardens magazine. Since the ad encouraged consumers to ask their doctors about this drug and whether it would help them or someone they knew, the drug company that placed the ad is using: A. trade advertising B. a promotional pull strategy C. a harvesting strategy D. a consumer promotion E. a promotional push strategy
2-27
Chapter 02 - The Role of IMC in the Marketing Process
107. (p. 66) An ad in a publication aimed at veterinarians explaining why they should recommend Eukanuba cat food to the owners of all the cats they treat is an example of: A. consumer advertising B. a promotional pull strategy C. a harvesting strategy D. a consumer promotion E. a promotional push strategy
108. (p. 66) An ad in Floral Management, a publication for retail florists, promotes Redwood Grove tulips as a product that will enhance any spring bouquet that the florists sell to ultimate consumers. The ad for Redwood Grove tulips is an example of: A. trade advertising B. a promotional pull strategy C. a harvesting strategy D. a consumer promotion E. a promotional inertia strategy
109. (p. 66) A company with a limited promotional budget and few funds for advertising and promotion is likely to use: A. a promotional pull strategy B. a promotional push strategy C. a brand equity strategy D. a gravity-oriented strategy E. any of the above
110. (p. 66) Whether a company decides to employ a push or pull strategy is directly influenced by: A. the company's relationship with the trade B. existing supplies of the firm's products C. the amount of money budgeted for marketing research D. the company's mission statement E. all of the above
2-28
Chapter 03 - Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing Communication Organizations
Chapter 03 Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing Communication Organizations
Multiple Choice Questions 1. (p. 72) Nike and many other marketers are finding that as the media landscape becomes more fragmented and the number of integrated marketing communication options increases: A. traditional advertising outlets are becoming more important B. public relations is being replaced with infomercials C. it is becoming more difficult to reach consumers D. advertising agencies are colluding to prevent the loss of key clients E. Internet-based sponsorships are offsetting media fragmentation See opening vignette.
2. (p. 71) The opening vignette "Nike Wants More than Great Ads" shows A. compelling ads are the key to marketing success B. marketers are using less traditional and more digital advertising C. efforts to maximize television advertising reach offers increased full service consumer satisfaction D. celebrity spokespeople are critical to institutional success E. integrated marketing communications is being replaced by Internet marketing communications See opening vignette.
3-1
Chapter 03 - Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing Communication Organizations
3. (p. 73) _____ are NOT one of the major participants in the integrated marketing communications process. A. Advertising agencies B. Advertisers or clients C. Media organizations D. Public relations firms E. New-product development firms
4. (p. 73) The term client, in the ad agency industry, refers to the: A. advertiser or organization that has the product, service or cause that needs to be marketed B. media C. purchaser of the consumer product advertised D. market for consumer products E. advertising agency
5. (p. 73) The _____ is an outside firm that specializes in the creation, production and/or placement of the communications message and that may provide other marketing and promotions related services. A. media organization B. sales promotion firm C. research organization D. advertising agency E. creative boutique
6. (p. 74) From the perspective of a promotional planner, the primary purpose of most media is to: A. entertain consumers B. inform consumers C. provide a way of reaching consumers with the company's marketing communications message D. help the company understand the marketplace E. do all of the above
3-2
Chapter 03 - Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing Communication Organizations
7. (p. 74) The ______ primary function is to provide information or entertainment to an audience. A. client's B. advertising agency's C. media's D. customer's E. advertiser's
8. (p. 74) Direct marketing agencies, sales promotion agencies and public relations firms are examples of: A. different types of advertising agencies B. media organizations C. collateral services D. specialized marketing communication services E. in-house agencies
9. (p. 74) ______ is the functional area or department in an organization most likely to be involved in the promotional planning process. A. Accounting B. Media relations C. Corporate affairs D. Finance E. Marketing
10. (p. 74) Which of the following statements about the role of top management in the advertising and promotion decision making process is true? A. Top management is usually very involved in the day-to-day decision making and operations of advertising and promotion. B. Top management never has any input into the advertising and promotion process. C. Top management is usually interested in how the advertising program represents the organization even though this is not an area in which it has much involvement. 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.
3-3
Chapter 03 - Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing Communication Organizations
11. (p. 75) Under a centralized organizational system, the responsibility for planning and controlling the advertising and promotional function lies with the: A. brand manager B. advertising manager C. product manager D. in-house agency E. vice president of marketing
12. (p. 75) Under a centralized organizational arrangement, which of the following is NOT a responsibility of the advertising manager? A. budgeting B. coordinating the creation and production of ads C. planning the media schedule D. administering sales promotion programs E. sales and sales management See Figure 3-2.
13. (p. 76) Problems associated with a(n) _____ include difficulty with coordination and less understanding of the marketing goals for individual products or brands. A. decentralized marketing system B. in-house agency C. centralized marketing system D. brand management system E. creative boutique
14. (p. 76) When a _____ is used, most of a company's advertising and promotional activities will be the responsibility of the advertising manager. A. brand manager system B. decentralized marketing system C. centralized system D. media buying service E. creative boutique
3-4
Chapter 03 - Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing Communication Organizations
15. (p. 76-78) A brand manager in a decentralized marketing system has responsibilities for ______ for his or her brand. A. planning of the marketing program B. developing and coordinating the budget C. tracking profit performance D. implementing and controlling the marketing program E. doing all of the above
16. (p. 76) The role of the advertising department in a company using a decentralized product management system is to: A. plan and coordinate the advertising campaign B. provide advertising and promotion related support for the brand managers C. conduct marketing research D. develop sales programs E. do none of the above
17. (p. 76) In a decentralized system of advertising organization, the responsibility of planning, implementing, and controlling the marketing program for an individual brand belongs to the: A. product manager B. creative director C. account executive D. layout editor E. communications team
18. (p. 77) Individuals who have the responsibility of coordinating efforts of various product or brand managers for a particular product class are known as: A. category managers B. superordinate managers C. account executives D. account supervisors E. media planners
3-5
Chapter 03 - Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing Communication Organizations
19. (p. 78) A _____ advertising organizational system has the advantages of concentrated managerial attention, rapid response to problems, and increased flexibility. A. centralized B. decentralized C. democratic D. collateral system E. functionally-incorporated
20. (p. 78) Which of the following describes a limitation associated with the decentralized organizational structure for advertising? A. Brand managers are often overqualified and want too much input into advertising. B. Brand mangers are typically highly experienced in advertising and understand exactly what advertising can do for a brand. 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. With their reliance on intuition, brand managers often jeopardize the creative activities of the advertising agency.
21. (p. 79) When the client assumes the entire promotional function, it is said to operate: A. on a client management basis B. on a creative and functional basis C. as an in-house agency D. as a full-service system E. as a self-sufficient agency
22. (p. 79) Which of the following is an advantage associated with an in-house advertising agency? A. lower advertising costs B. more highly skilled specialists C. more varied perspective on advertising problems D. greater flexibility E. all of the above
3-6
Chapter 03 - Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing Communication Organizations
23. (p. 79-80) A major reason why some companies choose to use an in-house agency is to: A. maintain creative freshness B. reduce advertising and promotions costs C. better understand how advertising works D. win advertising awards that will enhance the image of their brands E. do all of the above
24. (p. 80) All of the following are advantages of in-house agencies EXCEPT: A. more objectivity B. cost savings C. increased coordination D. more overall control E. easy access to pertinent personnel See Figure 3-5.
25. (p. 80) Lack of long-term objectivity, flexibility and creativity are a few of the reasons why a company might move away from: A. a decentralized marketing system B. an in-house agency C. the use of full-service advertising agencies D. a centralized marketing system E. the use of creative boutiques See Figure 3-5.
26. (p. 81) A company that uses an in-house agency might turn its advertising and promotion tasks over to an outside agency to: A. get more control over the advertising process B. save money C. get an objective, fresh look at its advertising situation by someone outside the company who can come up with different creative ideas D. make coordination of the advertising and promotional process easier E. do all of the above
3-7
Chapter 03 - Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing Communication Organizations
27. (p. 81) Which of the following statements about the U.S. advertising agency business is true? A. Most U. S. ad agencies are large businesses with billings exceeding $100 million per year. B. Most U. S. ad agencies are individually owned small businesses employing fewer than five people. C. Nearly all of the U.S. domestic billings are handled by the top 100 agencies. D. Most of the top U. S. ad agencies are headquartered in Chicago. E. There are approximately 1,000 agencies listed in the Standard Directory of Advertising Agencies.
28. (p. 81) ____ are the amounts of money agencies spend on media purchases and other equivalent activities. A. Billings B. Media commissions C. Retainers D. Activity fees E. Traffic compensation
29. (p. 83) Superagencies were formed: A. because advertisers were disenchanted with large agencies B. because advertisers wanted agencies were more flexible and responsive C. to save money for clients D. so agencies could provide their clients with integrated marketing communications services worldwide E. to lessen the need for competitive pricing
30. (p. 83) In the mid-1990s, a number of mid-sized ad agencies formed alliances with larger agencies: A. to save money B. to offer greater media buying capabilities C. because clients want agencies with integrated marketing communications capabilities worldwide D. so they can specialize in a particular area of integrated marketing communications E. all of the above
3-8
Chapter 03 - Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing Communication Organizations
31. (p. 83) Which of the following statements explains why an organization would want to use an outside advertising agency? A. An outside advertising agency saves money for the client. B. An outside advertising agency helps the client gain more prestige and a better image. C. An outside advertising agency has media experts. D. An outside advertising agency provides research expertise. E. An outside advertising agency provides the client with the services of highly skilled individuals who are experts in a number of areas including creative, media, and research.
32. (p. 83) Which of the following statements about advertising agencies is true? A. Agencies must be used since companies do not have the capabilities of developing their own advertising. B. Agencies are often used because of the skill, expertise, and experience they can offer in the advertising area. C. Most large, national advertisers use in-house agencies. D. Most large agencies offer only creative services to their clients. E. Most large advertisers are totally content with the current commission system of compensation.
33. (p. 84) Which type of ad agency is most likely to assist the client in areas such as marketing strategy and research, campaign planning and execution, and media planning and buying? A. a creative boutique B. a full-service agency C. a media buying service D. a collateral agency E. All of the above are equally likely to provide assistance in all areas.
34. (p. 84) A full-service agency offers its clients: A. account services B. research C. creative development D. public relations expertise E. all of the above
3-9
Chapter 03 - Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing Communication Organizations
35. (p. 84) An ad agency that offers its clients a complete range of marketing, communication, and promotion services is known as a: A. creative boutique B. media buying service C. in-house agency D. full-service agency E. integrated marketing organization
36. (p. 84) The communications link between the ad agency and its clients is: A. account services B. marketing services C. the media D. creative services E. the sales promotions department
37. (p. 84) The _____ is responsible for understanding the advertiser's marketing and promotional needs and interpreting them to agency personnel. A. account executive B. database manager C. media specialist D. copywriter E. traffic coordinator
38. (p. 84) The agency person who is the focal point of the agency-client relationship is the: A. media buyer B. product manager C. copywriter D. brand manager E. account executive
3-10
Chapter 03 - Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing Communication Organizations
39. (p. 84) The function of gathering, analyzing and interpreting information that will be useful in developing advertising is the responsibility of the agency's _____ department. A. production B. traffic C. media D. account management E. research
40. (p. 85) Account planning has become a very important and demanding function in many agencies as: A. public relations replaces advertising for achieving global integrated marketing communications B. budgeting services reduces the redundancy associated with on-task account planning C. marketing research expands the creative capacity of ad agencies D. the number of marketing communication channels and ways of contacting customers increases E. all of the above have increased the importance and demands upon account planners
41. (p. 88) Which of the following statements about the role of ad agency media departments is true? A. Many large advertisers use media departments in a variety of different agencies to purchase media time and space. B. A media department's ability to negotiate prices and make effective use of the vast array of media options has become very important. C. The media department of an ad agency reviews information on demographics, magazine and newspaper readership, radio listenership, and consumers' television viewing habits. D. Many large advertisers are consolidating their media buying with one or a few agencies' media departments to save money and improve media efficiency. E. All of the above statements about the role of ad agency media departments are true.
3-11
Chapter 03 - Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing Communication Organizations
42. (p. 88) Which of the following statements about the role of ad agency media departments is true? A. Large advertisers do not use media departments to purchase media time and space. B. Media departments do not have the ability or the authority to negotiate prices. C. The media department of an ad agency reviews information on demographics, magazine and newspaper readership, radio listenership, and consumers' television viewing habits. D. Consolidating media buying is not cost effective and may reduce media efficiency. E. All of the above statements about the role of ad agency media departments are true.
43. (p. 86) IMC Perspective 3-2 "The Changing Role of Account Reps" suggests: A. advertising is a better career choice than accounting B. accounts reps are becoming increasingly important in integrated marketing communications C. clients want account executives to be able to do more things and work across a variety of areas D. the biggest ad agencies provide the best opportunities for young advertising majors E. all of the above See IMC Perspective
44. (p. 88) _____ are the individuals who conceive the ideas for the ads and write the advertising message. A. Copywriters B. Art directors C. Traffic coordinators D. Account executives E. Media planners
45. (p. 89) The _____ is responsible for creating the visual portion of an ad such as layouts and the commercial storyboards. A. account executive B. copywriter C. product management department D. research department E. art department
3-12
Chapter 03 - Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing Communication Organizations
46. (p. 89) Which department within an advertising agency would assume the responsibility for hiring outside persons such as printers, engravers, photographers, or other vendors to turn a layout into a finished product? A. media department B. art department C. copywriters D. traffic department E. production department
47. (p. 89) The _____ department coordinates all phases of production to ensure the proper progression of the advertisement. A. research B. production C. art D. traffic E. media
48. (p. 89) Most of an advertising agency's expenses are in the area of: A. media costs B. salaries and benefits for employees C. personal selling D. production facilities E. commissions
49. (p. 89) A _____ is an agency organizational structure in which each functional area is set up as a separate department. The parts of this structure are called on as needed to perform their particular specialty and serve all of the agency's clients. A. departmental system B. group system C. creative boutique D. matrix system E. media buying service system
3-13
Chapter 03 - Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing Communication Organizations
50. (p. 89) Jackson & Morris 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. The agency is using a _____ organizational system. A. departmental system B. group system C. matrix system D. boutique system E. dedicated system
51. (p. 89) An advertising agency that wants its employees to develop expertise in servicing a variety of accounts should use a(n) _____ structure. A. group system B. departmental system C. creative boutique D. in-house E. decentralized
52. (p. 89) An advertising agency might use a group system organizational structure to: A. allow agency personnel to become very knowledgeable about a particular client's market and business B. ensure continuity in servicing a particular account C. provide better service to a key account D. create a long-term relationship with its clients E. do all of the above
53. (p. 90) A(n) _____ is an agency that specializes in and provides only creative services. A. creative boutique B. full-service agency C. in-house advertising agency D. decentralized organizational system E. media boutique
3-14
Chapter 03 - Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing Communication Organizations
54. (p. 90) Creative boutiques are agencies that: A. limit their client service to creative planning and execution B. have resulted from advertisers wanting to save money in buying media space C. can perform the same functions as full-service agencies for their clients, but charge more D. are used only when advertising is not important to the marketing success of the company that hired them E. are accurately described by all of the above
55. (p. 90) Independent companies that specialize in the purchase of radio and television time are known as: A. creative boutiques B. mid-sized agencies C. full-service agencies D. media buying services E. media boutiques
56. (p. 90) Clients and creative boutiques that have developed their own media strategies may employ _____ to execute them A. media specialist companies B. full-service agencies C. in-house agencies D. media departments E. product managers
57. (p. 90) Which of the following statements about creative boutiques is true? A. Creative boutiques are more successful today than ever before. B. The demand for IMC services has had little influence on how creative boutiques do business. C. Creative boutiques use an aggregated business model instead of niche marketing. D. Creative boutiques today are having trouble because clients often want a range of services E. Consolidation has led to the demise of creative boutiques.
3-15
Chapter 03 - Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing Communication Organizations
58. (p. 91) The traditional method of compensating ad agencies is with: A. the commission system B. hourly billings C. the fee system D. the straight salary method E. the objective-and-task compensation system
59. (p. 91) Agency compensation under the commission system is based on: A. total number of hours worked B. a percentage of a client's marketing budget C. a specified percentage of the cost of any advertising time or space the agency purchases for its client D. a percentage of advertising production costs E. the client's position in the distribution channel
60. (p. 91) An advertising agency works with its clients under a traditional commission system compensation arrangement. The agency places a 30-second spot for one of its clients on an episode of Friends, which costs $500,000. A reasonable estimate of the agency's commission on this space buy is: A. $15,000 B. $30,000 C. $45,000 D. $75,000 E. $80,000
61. (p. 91) Opponents of the agency commission system argue this system is not effective because: A. a commission keeps the emphasis on creative skills not the bottom-line B. a commission is simple to administer C. the agency time spent on an account may not be proportional to the compensation received for it D. a commission encourages agencies to limit their client's advertising expenditures E. a commission does not tie agency compensation to media costs
3-16
Chapter 03 - Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing Communication Organizations
62. (p. 92) Which of the following statements about changes in the way advertising agencies are being compensated is true? A. Most clients do not pay full commissions to their agencies because they prefer to use some type of fee or incentive-based system. B. With the move toward integrated marketing services, it is likely that there will be a return to the commission system of compensation. C. From the viewpoints of both the client and the agency, the traditional commission system is much superior to negotiated commissions. D. Since most clients want their agencies to be in total charge of the integrated marketing communications process, they are willing to compensate them based on media commissions. E. All of the above statements about changes in the way ad agencies are being compensated are true.
63. (p. 92) A major argument put forth by defenders of the commission system is that a commission: A. keeps the agencies from placing advertising in expensive media B. ties agency compensation to the inflation in media costs C. is very complex to administer D. is simple and keeps the emphasis in agency compensation on non-price factors E. encourages agencies to use noncommissionable media such as direct mail
64. (p. 92) Critics argue the use of _____ can encourage agencies to ignore cost accounting systems and avoid media such as direct mail and sales promotions. A. percentage charges B. fixed fee arrangements C. cost-plus agreements D. the commission system E. the objective-and-task compensation system
3-17
Chapter 03 - Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing Communication Organizations
65. (p. 92) Which of the following is NOT a valid criticism of the commission compensation system as it is currently used to compensate ad agencies? A. It is difficult to administer. B. Media costs have risen more rapidly than inflation. C. There is an incentive to avoid noncommissionable media. D. Media costs do not relate directly to effort or expertise expended by agencies. E. It keeps the emphasis in agency competition on nonprice factors.
66. (p. 92) Under which type of compensation system might an agency be more inclined to recommend expensive media such as network television and national magazines to its clients? A. commission system B. fee arrangement system C. cost-plus system D. incentive-based compensation system E. objective-and-task compensation system
67. (p. 92) Why are negotiated commission structures becoming more common? A. to keep from paying the traditional 25 percent commission system B. to ensure that agencies do not make too much money C. to consider the needs of clients as well as the amount of time and effort the agency spends on an account D. to encourage agencies to cut back on buying network TV for their clients E. to support the creation of a transactional relationship between agency and client
68. (p. 92) Which of the following statements about agency commissions is true? A. Some leading agencies now receive average commissions of 8 to 10 percent. B. Nearly all of the leading agencies still earn a 15 percent commission. C. Most agencies are earning more of their income from fixed commissions as clients expand their IMC programs to include other forms of promotion. D. Most agencies are unwilling to negotiate their commission rates. E. Leading agencies often get 20 percent commissions.
3-18
Chapter 03 - Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing Communication Organizations
69. (p. 92) What form of compensation is used to pay the advertising agency when the client's advertising program does not involve a large amount of media billings? A. a 15 percent commission B. a negotiated fee C. a rebate from the media D. a share of the profits E. a 17.65 percent mark up on costs
70. (p. 92) Negotiated commission rates for advertising agencies: A. are becoming more commonplace B. are becoming less common C. set a 15 percent minimum commission rate for all agency work D. are rarely used by consumer-products advertisers E. are designed primarily to benefit agencies
71. (p. 92) A(n) ______ is a type of compensation arrangement where an agency charges a client a fixed monthly amount of money for all of its services and credits media commissions against this monthly rate. A. fixed fee B. negotiated commission C. cost-plus agreement D. incentive-based compensation E. fee-commission combination
72. (p. 92) If an advertiser wants a very detailed accounting of how its advertising and promotional monies are being spent and what it is being charged by its ad agency, it is likely to use a(n) _____ compensation system. A. fee arrangement B. media commission C. incentive-based D. fee-combination E. cost-plus
3-19
Chapter 03 - Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing Communication Organizations
73. (p. 92) The DDB Needham advertising agency receives compensation from its clients based on their sales and market share performance. This is an example of a(n) _____ compensation system. A. fixed-fee B. mediated C. incentive-based D. cost-plus system E. fee-commission
74. (p. 93) Why would General Motors switch to an incentive-based compensation system with several of its agencies? A. to encourage its agencies to use more mass media advertising B. to encourage its agencies to stop using network TV advertising C. to save money on advertising D. to encourage its agencies to look beyond traditional mass media advertising and develop other ways of reaching consumers E. to accomplish all of the above objectives
75. (p. 93) Percentage charges on market research, artwork, printing photography, and other services agencies purchase for their clients: A. are reasonable since suppliers of these services do not offer commissions to agencies B. are markups on costs C. allow an agency to cover its administrative costs for acquiring and handling these services and make a reasonable profit D. usually range from 17.65 to 20 percent E. are accurately described by all of the above
3-20
Chapter 03 - Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing Communication Organizations
76. (p. 93) As more companies adopt the integrated marketing communications approach to their advertising and promotions,: A. they are increasing their reliance on mass media advertising and paying full commissions to agencies B. they are reducing their reliance on mass media advertising and changing their agency compensation system C. they are likely to move totally to cost-plus compensation systems D. incentive systems are becoming less important in compensating agencies E. none of the above is occurring
77. (p. 94) A _____ audit of an agency focuses on factors such as costs, expenses and payments to outside suppliers while a _____ audit focuses on factors such as the agency's efforts in planning, development and implementing the advertising program. A. financial/qualitative B. qualitative/financial C. financial/creative D. qualitative/quantitative E. fixed costs/variable costs
78. (p. 94) A client's evaluation of its advertising agency's performance should take into account: A. financial considerations, such as how the agency conducts its business B. qualitative considerations, such as the quality of the agency's efforts in creative, media, etc. C. performance of account representatives D. market performance measures, such as sales and market share E. all of the above
79. (p. 94) Ad agencies lose clients due to: A. personality conflicts B. unrealistic demands by clients C. changes in the size of the client or agency D. personnel changes E. all of the above
3-21
Chapter 03 - Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing Communication Organizations
80. (p. 97) Which of the following would be a valid reason for a company to switch advertising agencies? A. dissatisfaction over the quality of the advertising produced by the agency B. conflicts over compensation policies C. a change in the company's marketing strategy D. a stagnation or decline in sales of the product E. all of the above
81. (p. 97-98) If a client thinks they need to use several ad agencies in order to achieve multiple advertising objectives, they may leave their currency due to: A. conflict of interests B. conflicting compensation philosophies C. personality conflicts D. lack of integrated marketing capabilities E. disagreement over creative strategies
82. (p. 98) Agencies can search and compete for new clients by: A. making a speculative presentation B. working with charitable organizations pro bono C. direct solicitations D. referrals from all businesses with which the agency interacts E. doing any of the above
83. (p. 99) Which of the following statements about speculative presentations is true? A. Speculative presentations require little time and effort on the part of agencies. B. Many agencies do not like to participate in speculative presentations because there is no guarantee they will win the account, and they require time and money. C. Speculative presentations are rarely used in the advertising industry. D. Most agencies do not participate in speculative presentations to acquire new business. E. None of the above statements about speculative presentations is correct.
3-22
Chapter 03 - Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing Communication Organizations
84. (p. 99) A(n) _____ is an individual who specializes in helping clients choose their advertising agencies. A. media specialist B. ad agency review consultant C. account representative D. brand manager E. compensation specialist
85. (p. 99) Probably the most effective way for an agency to acquire new business is through: A. its image and reputation B. its public relations effort C. solicitations D. referrals E. its pricing strategy
86. (p. 101) _____ are agencies that specialize in offering services, such as database management, and the ability to create, produce, and disseminate direct mail and other types of communications that go straight to target customers. A. Full function ad agencies B. Sales promotion agencies C. Direct-response agencies D. Public relations firms E. Creative boutiques
87. (p. 101) Direct-response agencies: A. manage premium and incentive offers B. specialize in the development of Web sites C. engage in crisis management D. manage clients' databases E. do all of the above
3-23
Chapter 03 - Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing Communication Organizations
88. (p. 101) A typical direct-response agency is divided into three main departments. They are: A. customer relations, production, and traffic B. media, customer relations, and sales C. sales, account management, and production D. account management, creative, and media E. creative, traffic, and financial
89. (p. 102) _____ specialize in the development and management of sweepstakes, refund and rebate offers and incentive programs. A. Sales promotion agencies B. Direct response agencies C. Creative boutiques D. Interactive agencies E. Public relations firms
90. (p. 102) Which type of specialized service would have most likely coordinated a program to allow consumers to mail in UPC codes from three Reynolds products to receive a free Blockbuster movie rental? A. sales promotion agency B. public relations firm C. creative boutique D. interactive agency E. direct-response agency
91. (p. 102) A(n) _____ is the type of firm an organization would hire to develop and implement programs to manage the organization's publicity and affairs with consumers and other relevant publics. A. public relations agency B. advertising agency C. media mix organization D. creative boutique E. direct-response agency
3-24
Chapter 03 - Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing Communication Organizations
92. (p. 102) A public relations firm: A. generates publicity B. develops programs to maintain the client's image C. analyzes the relationship between the client and its publics D. prepares news releases E. does all of the above
93. (p. 102) Which specialized service would be responsible for promoting and managing the concert a client wants to hold to benefit Habit for Humanity? A. the traffic department B. a marketing research firm C. an interactive agency D. a public relations firm E. a sales promotion agency
94. (p. 103) Organizations that specialize in the creation of interactive media such as CD-ROMs, kiosks, and web sites are known as: A. sales promotion agencies B. public relations firms C. creative boutiques D. interactive agencies E. direct-response agencies
95. (p. 103) To implement BMW's new branding campaign, the decision was made to use short digital films and to create a Web site where consumers could view the films. Which specialized service would have most likely been involved in this campaign? A. sales promotion agencies B. public relations firms C. creative boutiques D. interactive agencies E. direct-response agencies
3-25
Chapter 03 - Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing Communication Organizations
96. (p. 103) Which of the following statements about the development of interactive media is true? A. Many traditional advertising agencies have developed interactive media capabilities. B. Many marketers are using specialized firms with expertise in the area to develop their interactive messages. C. As the importance of the Internet as a marketing tool increases, more companies are likely to be relying on interactive agencies. D. Advertising agencies have the capability to develop interactive media for their clients. E. All of the above statements about the development of interactive media are true.
97. (p. 104) Package design firms, market research companies, photographers, and printers are examples of: A. sales promotion agencies B. interactive agencies C. companies that provide collateral services to the advertising and promotion industry D. marketing support agencies E. support agencies
98. (p. 104) To implement BMW's new branding campaign, the decision was made to use short digital films and to create a Web site where consumers could view the films. The video production house that made and edited the films is an example of a(n): A. collateral service B. support agency C. interactive agency D. sales promotion agency E. creative boutique
3-26
Chapter 03 - Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing Communication Organizations
99. (p. 104) National Fruit Company makes White House brand apple juice. Market research determined that the company needed to mold its bottle so as to make it easier to grasp. Its market research would have been conducted by a(n) _____, and its packaging changes would have been done by a(n) _____. A. specialized service; interactive agency B. interactive agency; collateral service C. collateral service; specialized service D. interactive service; creative boutique E. collateral service; collateral service
100. (p. 104) Marketing research firms: A. seldom conduct qualitative research for ad agencies B. are one of the most widely used types of collateral services C. are actually classified as data warehouses because of their relations with ad agencies D. are not typically used by ad agencies. E. are described by none of the above
101. (p. 104) Which of the following statements describes an argument used by either the opponents or the proponents of the use of a single agency to provide all integrated marketing communication services for a client? A. Proponents of this approach argue that using one agency allows for greater control of and more synergy among each of the communication elements. B. Opponents of this approach argue it is an attempt by ad agencies to retain business that might otherwise be lost to other communication service companies. C. Opponents argue that the approach does not work well due to internal conflicts within the various departments of these agencies. D. Proponents of the system argue the one-stop shop makes it more convenient for the client to coordinate all of its marketing efforts. E. All of the above statements reflect arguments for and against using a single agency to provide all integrated marketing communication services for clients.
3-27
Chapter 03 - Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing Communication Organizations
102. (p. 105) Many agencies are moving toward offering additional integrated marketing communication (IMC) services because: A. they want to maintain control of the entire promotional process because it leads to more synergy among the various communication elements B. it is more convenient for a client to coordinate all of its promotional efforts with one agency C. an agency with integrated marketing communication capabilities can create a single unified image for the product to all relevant publics D. they believe that economies of scale and synergy will make the decision to offer more IMC services a profitable one E. of all of the above reasons
103. (p. 105) A study by the Corporate Executive Board's Advertising and Marketing Roundtable found: A. consumers are more interested in integrated marketing communications B. clients prefer full service agencies over brokered advertising services C. situational factors are creating a promotional overlay effectively synthesizing D. integrated marketing communications in most organizations E. marketers are using numerous partners to access the special talents and expertise F. needed G. advertising is replacing marketing as the most effective incentive-based qualitative H. system
104. (p. 105) Surveys of marketing and ad agency executives about integrated marketing communications (IMC) have shown: A. agency executives do not support the idea of integrated marketing B. marketers and agency executives have similar opinions regarding who should be in charge of the IMC program C. internal turf battles, agency egos, and fear of budget reductions are seen as major barriers to successful IMC campaigns D. marketing executives think a lack of people with IMC skills is a major obstacle to implementing integrated marketing E. none of the above is true about marketing and agency executives' opinions regarding IMC
3-28
Chapter 04 - Perspectives on Consumer Behavior
Chapter 04 Perspectives on Consumer Behavior
Multiple Choice Questions 1. (p. 107) In the opening vignette "It's Not Just about Products and Price: Think Sustainability" all of the following EXCEPT ___________ are important to conscious consumers. A. promoting health and safety benefits B. manufacturing efficiency C. promoting Al Gore's book Earth in the Balance D. supporting fair labor and trade practices E. being committed to environmentally friendly practices See opening vignette.
2. (p. 109) Consumer behavior is defined as: A. conspicuous consumption B. the process people engage in when searching for, selecting, and using products and services they need C. the act of physically purchasing a product D. the act of making a final decision as to which product to purchase E. the process product producers use to design new products
3. (p. 109) _____ is 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. Marketing B. Exchange C. Consumer behavior D. Conspicuous consumption E. Learning
4-1
Chapter 04 - Perspectives on Consumer Behavior
4. (p. 112) Which of the following statements about marketers and teens is true? A. Teens are not easy to reach. B. Teens are not a large enough segment for retailers to target. C. Teens do not want clothes and accessories that make them look older than their years. D. Marketers realize that teens cannot be reached through concerts and other sponsorships. E. None of the above statements about marketers and teens is true. See IMC Perspective 4-1.
5. (p. 113) _____ occurs during the first stage in the consumer decision making process. A. Internal search B. External search C. Problem recognition D. Alternative evaluation E. Post-purchase evaluation
6. (p. 113) Ilon loves his car and does everything necessary to keep the vehicle in top running condition. When he heard a strange popping noise under the hood, he knew the car needed the services of a mechanic. The noise triggered the _____ stage of the consumer decision-making process. A. internal search B. external search C. problem recognition D. alternative evaluation E. post-purchase evaluation
7. (p. 113-114) Consumer problem recognition occurs when: A. the consumer has depleted his or her inventory of a product B. the consumer is dissatisfied with his or her previous purchase C. the consumer has a situation creating new needs D. the purchase of one product necessitates a new purchase of a related product E. any of the above occur
4-2
Chapter 04 - Perspectives on Consumer Behavior
8. (p. 114) Energizer batteries come with a tester on each battery that lets a user see if the battery needs to be replaced. This strategy is focused to reach consumers at which stage of the consumer decision making process? A. problem recognition B. internal search C. external search D. alternative evaluation E. purchase
9. (p. 114) Which of the following statements describe a situation in which marketer-induced problem recognition was apparently used? A. Each year designers hold fashion shows to show the public what is in style and out of style. B. As Petra was leaving the hospital with her firstborn child, she received a manufacturer's coupon for a free package of Huggies disposable diapers. C. When April brought a book on landscaping at Amazon.com, the site offered her four other books on gardening that the company thought would also be useful to her. D. Purina-Ralston markets a cinnamon-flavored Chex cereal to appeal to people who like the existing brands of Chex cereal. E. All of the above are examples of marketer-induced problem recognition.
10. (p. 115) Marketers often introduce new brands into markets that are mature and saturated because of consumer's tendency toward: A. internal search B. novelty seeking behavior C. external search D. brand loyalty E. habitual choice behavior
11. (p. 115) The market for snack foods seems saturated, but still manufacturers continue to develop new offerings. Which of the following best explains why the makers of Honey Maid graham crackers found it necessary to develop and market Honey Maid graham sticks? A. consumer's novelty-seeking behavior B. to satisfy a physiological need C. to broaden the marketer consideration set D. consumer cocooning E. to balance any product deletion
4-3
Chapter 04 - Perspectives on Consumer Behavior
12. (p. 114-115) Yonique was a beverage made from yogurt. It was similar in consistency to a milkshake, but made with yogurt instead of milk. Even though its manufacturer tried to use marketer-induced problem recognition, the product failed in large measure because: A. consumers did not see a need for the product B. the product was not homogeneous C. marketers cannot induce problem recognition D. consumers do not engage in novelty-seeking behavior E. problem recognition does not occur with new products
13. (p. 115) _____ are factors that compel or drive a consumer to take a particular action. A. Motives B. Impulses C. Wants D. Evaluative criterion E. Attributes
14. (p. 115) According to Abraham Maslow's hierarchy of needs theory, the highest level of needs are ______ needs. A. physiological B. social C. self actualization D. esteem E. safety
15. (p. 115) Lower level needs such as hunger and thirst are important to marketers because these needs: A. are the hardest to satisfy B. are an ongoing source of motivation for most consumer purchase behavior C. provide marketing opportunities for international marketers who do not want to make major financial investments in product adaptation D. offer marketers a basis for differentiating their products E. are the source for most market development strategies
4-4
Chapter 04 - Perspectives on Consumer Behavior
16. (p. 115) The headline for the National Flood Insurance program ad reads, "There's a chance of flooding in your area. Are you willing to bet the house on it?" The ad shows a picture of a flooded home and shows how flood insurance helps to satisfy the ______ need as defined by Maslow's hierarchy. A. physiological B. social C. self actualization D. esteem E. safety
17. (p. 115) The ad for Riverside Military Academy (RMA) states, "RMA sets standards that enable young men to achieve extraordinary excellence for a lifetime of accomplishments." In other words, students attending RMA will satisfy their ______ needs as defined by Maslow's hierarchy. A. physiological B. social C. self actualization D. esteem E. safety
18. (p. 115) An ad for Duncan Hines cake mixes advises consumers to "Tell Them What Is in Your Heart Without Saying a Word" by preparing Duncan Hines brownies for your family and close friends. Duncan Hines is claiming to help satisfy consumers' _____ need as defined by Maslow's hierarchy. A. physiological B. social C. self actualization D. esteem E. safety
4-5
Chapter 04 - Perspectives on Consumer Behavior
19. (p. 116) _____ is an approach to the structure and development of personality that focuses on the underlying motivations for human behavior. A. Maslow's hierarchy of needs B. Psychoanalytic theory C. Integration heuristics D. Multiattribute attitude theory E. Operant conditioning
20. (p. 116) The print ad for Thomasville furniture's Louis Phillipe design shows a rumbled bed with pillows flung on the floor and two empty glasses of wine on a nearby table. The door to the balcony is open and looks as if the lovers have just stepped out to look at the moon. The use of sexual innuendoes in this ad to attract attention would be an application of: A. the cognitive learning theory B. the psychoanalytic theory C. the behavioral learning theory D. affective modeling E. shaping
21. (p. 116) Clothing manufacturers like Calvin Klein and DKNY often employ sexy models in an attempt to attract attention to their ads. The theoretical explanation that would most support the idea that stimulating the consumer's sex drive would lead to product purchase is: A. the cognitive learning theory B. the psychoanalytic theory C. the behavioral learning theory D. affective modeling E. shaping
22. (p. 117) If one subscribes to the theory that "sex sells," which of the following theories would best support this position? A. cognitive theory B. operant conditioning C. classical conditioning D. psychoanalytical theory E. postmodernist theory of consumer behavior
4-6
Chapter 04 - Perspectives on Consumer Behavior
23. (p. 117) In-depth interviews, projective techniques and association tests are methodologies used primarily by: A. motivation researchers B. attitude researchers C. learning theorists D. demographic researchers E. social influence researchers
24. (p. 117) Critics of psychoanalytic theory believe any results from motivation research are unusable because: A. results are unpredictable B. the theory is too responsive to external environmental stimuli C. the research requires the use of very large samples D. the theory is too vague E. the research is too structured
25. (p. 117) Martha took part in a marketing research experiment in which she was given two pictures of two distinctly different kitchens and asked to write a description of the person who owned each one. What kind of motivation research was Martha participating in? A. projective techniques B. an association test C. a focus interview D. a mall intercept E. subliminal test See Figure 4-3.
4-7
Chapter 04 - Perspectives on Consumer Behavior
26. (p. 118) On a trip to Spokane, Joy experienced car trouble. She knew she needed to find a good mechanic, so she asked the advice of the people running the motel where she was staying. She also called the local Better Business Bureau to help and looked in the local Yellow Pages. Finally, she called a friend who used to live in Spokane for his recommendation. Joy was obviously engaged in which stage of the consumer decision making process? A. problem recognition B. information search C. postpurchase evaluation D. subliminal problem avoidance E. purchase decision
27. (p. 118) _____ is the stage of the consumer decision making process whereby the individual scans information stored in memory to recall past experience and/or knowledge regarding various purchase alternatives. A. Problem recognition B. Internal information search C. External information search D. Alternative evaluation E. Post purchase evaluation
28. (p. 118) Sam Crenshaw looked at realty ads in local newspaper and in the listings magazine he found at a local restaurant, asked his friends, and called the local Chamber of Commerce before purchasing a home site in Lincoln. These activities are examples of: A. internal information search B. external information search C. post purchase evaluation D. problem clarification E. evoked set manipulation
4-8
Chapter 04 - Perspectives on Consumer Behavior
29. (p. 118-119) External sources of information used in the consumer decision-making process include: A. personal experiences B. public sources C. commercial sources D. personal sources E. all of the above
30. (p. 119) _____ is the process by which an individual receives, selects, organizes, and interprets information to create a meaningful picture of the world. A. Information search B. Problem solving C. Perception D. Motivation E. Integration
31. (p. 119) _____ is the immediate, direct response of the senses to stimuli like the smell of coffee, the feel of an ocean breeze, and the taste of chocolate. A. Evocation B. Sensation C. Perception D. Attitudinal adjustment E. Perception retrieval
32. (p. 119) Perception is an important consideration when creating attention-getting ads. Obsession and other brands of perfume use scented strips in their ads to influence _____ and to increase the probability that the ad will be perceived. A. the consumer's level of sensory input B. consumer personality C. the internal information search D. perception retrieval E. subliminal perception
4-9
Chapter 04 - Perspectives on Consumer Behavior
33. (p. 119) One way advertisers attempt to influence consumers' perceptual processes is through the use of: A. songs popular with the target audience B. a mass audience appeal C. generalized advertising messages D. ads that appeal to only one sense E. noise elimination
34. (p. 119) The perceptual process has often been referred to as the consumer's _____ process. A. shaping B. information retrieval C. filtering D. situation-defining E. modeling
35. (p. 121) _____ is a filtering or screening of exposure, attention, comprehension, and retention of stimuli. A. Subliminal perception B. Information discrimination C. Sensation D. Selective perception E. Information retrieval
36. (p. 121) Micah and Jeremy both watched the Sugar Bowl on television. Micah was especially interested in the ads for Ford and GMC trucks because he is planning on buying a new truck soon. Jeremy did not notice the truck, but because he is a theater major, he did notice the ads for a new movie based on an Alfred Hitchcock classic. _____ accounts for why the two watched the same television show and saw different commercials. A. Selective attention B. Selective exposure C. Subliminal perception D. Selective retention E. Selective comprehension
4-10
Chapter 04 - Perspectives on Consumer Behavior
37. (p. 121) _____ occurs when Mae elects to read only the book section of the New York Times Sunday newspaper and not look at the other sections of the paper. A. Selective retrieval B. Selective exposure C. Selective comprehension D. Selective retention E. Subliminal perception
38. (p. 121) The perception process whereby consumers interpret information based on their own attitudes, beliefs, motives and experiences is known as: A. selective attention B. selective exposure C. selective comprehension D. selective retention E. subliminal perception
39. (p. 121) As you are watching television, have you ever seen the same commercial repeated numerous times over a period of days? The best explanation for the repetitive ads is the advertisers' desire to create: A. selective attention B. selective exposure C. selective comprehension D. selective retention E. subliminal perception
40. (p. 121) Through the use of mnemonics, advertisers hope consumers will engage in _____ when they see the advertisements. A. selective attention B. selective exposure C. selective comprehension D. selective retention E. subliminal perception
4-11
Chapter 04 - Perspectives on Consumer Behavior
41. (p. 121) The gecko lizard in the Geico Direct insurance ads, the golden arches of McDonald's, and the Mr. Peanut character used by Planters' Peanuts are all examples of: A. drives B. cues C. mnemonics D. trigger points E. persuaders
42. (p. 121) Symbols, rhymes, association and images that assist in the learning and memory processes are known as: A. drives B. cues C. mnemonics D. trigger points E. persuaders
43. (p. 122) Ads reminding people to use the FEDEX by dialing 1-800-GOFEDEX are based on: A. a subliminal technique B. classical conditioning C. reinforcement theory D. a mnemonic E. shaping
44. (p. 121) Pet scans and MRI imaging measure chemical activity and/or changes in the magnetic fields of peoples' brains. Marketers are now using these scientific technologies to: A. to see if American consumers respond to the use subliminal advertising. B. learn how consumers make up their minds C. support medical integrated marketing communications D. offset negative images of marketing brainwashing consumers E. all of the above See IMC Perspective 4-2.
4-12
Chapter 04 - Perspectives on Consumer Behavior
45. (p. 123) The basis for subliminal advertising can be found in: A. cognitive theory B. psychoanalytic theory C. behavioral learning theory D. affective theory E. multiattribute motivational model See also Ethical Perspective 4-1.
46. (p. 123) According to those who believe in subliminal advertising, effective symbols, such as skulls and cross bones, phallic symbols and words such as "sex", are embedded in the ads. The use of these symbols to stimulate consumers' motives would receive support from _____ theory. A. cognitive B. reinforcement C. behavioral learning D. psychoanalytical E. operant learning See also Ethical Perspective 4-1.
47. (p. 122) The various brands identified as purchase options to be considered during the alternative evaluation process are known as: A. decision criteria B. a brand attribution list C. the working model D. the evoked set E. subliminal choices
48. (p. 122) During which stage of the consumer decision-making process are evoked sets and evaluative criteria relevant? A. problem recognition B. information search C. postpurchase evaluation D. alternative evaluation E. purchase decision
4-13
Chapter 04 - Perspectives on Consumer Behavior
49. (p. 122) Every afternoon about 3 o'clock, Todd buys a cold drink. He either buys a CocaCola, or a Minute Maid lemonade. He will not consider any other brand or type of soft drink because the two drinks make up his: A. decision criteria B. brand attribution list C. working model D. evoked set E. subliminal choices
50. (p. 122) Leeanne is going to buy canned vegetables for her family's meals. Her evoked set would best be described as: A. all brands of canned vegetables B. all brands of canned vegetables that are not store brands C. Del Monte and Stokely's canned vegetables because they are the only two brands she ever buys D. any vegetable—fresh, frozen, or canned E. whatever is stocked on her supermarket's shelves
51. (p. 124) Which of the following techniques can marketers use to ensure their brand is included in the consumer's evoked set? A. Create top-of-mind awareness. B. Use comparative advertising to encourage consumers to consider their brand along with market leaders. C. Use point-of-purchase displays to draw attention to a brand in the store. D. Use in-store sampling to encourage consumers to try a brand. E. Do all of the above.
52. (p. 124) _____ are the dimensions or attributes of a product that are used to compare different alternatives. A. Evaluative criteria B. Attribute assignments C. Dissonance motives D. Consequences E. Reinforcement criteria
4-14
Chapter 04 - Perspectives on Consumer Behavior
53. (p. 124) Which of the following could be an example of an evaluative criterion a parent might use to select a pediatrician for her children? A. the location of the doctor's office B. where the doctor attended medical school C. how the doctor handles emergency situations D. how compassionate the doctor seems E. all of the above
54. (p. 124) During which stage of the consumer decision making process are both functional and psychosocial consequences important? A. problem recognition B. information search C. postpurchase evaluation D. alternative evaluation E. purchase decision
55. (p. 124) _____ refer to specific events or outcomes consumers experience when a product or service is purchased and/or consumed. A. Evaluative criteria B. Attribute assignments C. Dissonance motives D. Consequences E. Reinforcement criteria
56. (p. 124) _____ are the concrete outcomes of product or service usage that are tangible and directly experienced by consumers. A. Functional consequences B. Psychosocial consequences C. Bundles of attributes D. Service assessments E. Physiological stimuli
4-15
Chapter 04 - Perspectives on Consumer Behavior
57. (p. 124) In terms of 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 grass stains are all examples of: A. functional consequences B. psychosocial consequences C. bundles of attributes D. service assessments E. physiological stimuli
58. (p. 124) Which of the following is an example of a functional consequence? A. the need to order champagne to celebrate a birthday B. the desire to eat a pound of chocolate C. the feeling of success that comes with the purchase of a Mercedes D. the taste of buttered popcorn in a movie theater E. the joy of finding the perfect gift for a friend
59. (p. 124) Which of the following is an example of a psychosocial consequence? A. the taste of a soft drink B. the feeling of prestige associated with wearing a Rolex watch C. the acceleration of an automobile D. the processing speed of a personal computer E. the firmness of a mattress
60. (p. 124) In terms of the alternative evaluation stage of the consumer decision-making process, how you feel when you wear new shoes, how you think others like your new hair style, and how a new weight-loss plan makes you feel about yourself are all examples of: A. functional consequences B. psychosocial consequences C. bundles of attributes D. service assessments E. physiological stimuli
4-16
Chapter 04 - Perspectives on Consumer Behavior
61. (p. 124) _____ are the abstract outcomes of product or service usage that are intangible, subjective and personal. A. Functional consequences B. Psychosocial consequences C. Bundles of attributes D. Service assessments E. Psychological stimuli
62. (p. 125) _____ is a construct that represents an individual's overall feelings or evaluation of an object and is viewed as a learned predisposition to respond toward it. A. A motive B. A need C. Perception D. An attitude E. A decision rule
63. (p. 125-126) Which of the following statements describes a major advantage inherent in the use of multiattribute models to study consumer behavior? A. Multiattribute models offer very simple ways to assess attitudes. B. Multiattribute models focus only on the overall feelings a consumer has towards a brand. C. Multiattribute models help marketers better understand and diagnose the underlying structure or basis of consumers' attitudes. D. Multiattribute models view consumer attitude formation and decision making as noncompensatory in nature. E. All of the above describes advantages inherent in the use of multiattribute models to study consumer behavior.
64. (p. 125-126) _____ views a consumer's attitude toward brand as possessing a number of attributes that provide the basis on which consumers form their attitudes. A. A multiattribute attitude model B. An affect referral attitude model C. Heuristics D. Stimulus-response theory E. Operant conditioning
4-17
Chapter 04 - Perspectives on Consumer Behavior
65. (p. 126) Beliefs concerning specific attributes or consequences that are activated and form the basis of an attitude are known as: A. affective beliefs B. cognitive beliefs C. heuristics D. evaluative beliefs E. salient beliefs
66. (p. 126) Spalding ran an advertisement promoting its Top Flight golf balls as the brand that is the most durable and goes the farthest. This ad campaign attempted to influence consumers' attitudes by: A. increasing or changing the strength or belief rating of the brand on an important attribute B. changing consumers' perceptions of the importance or value of an attribute C. adding a new attribute to the attitude formation process D. ignoring the competition E. avoiding any direct effect on consumers' attitudes
67. (p. 126) Information such as product knowledge, meanings, and beliefs is combined to evaluate alternatives through: A. motive stimulation B. subliminal perception C. integration processes D. cognitive dissonance E. affective reasoning
68. (p. 126) Simplified decision rules such as "Always buy the largest size of the cheapest priced detergent" or "Only buy motor oil if the manufacturer is offering a rebate" are: A. the result of integration processes B. called heuristics C. formalized group norms D. problem-solving consequences E. stimulus-response benefits
4-18
Chapter 04 - Perspectives on Consumer Behavior
69. (p. 127) Which of the following would be an example of a consumer heuristic? A. Never buy cat litter that does not contain a deodorizing agent. B. Do not buy national brands of pet food. C. Use coupons for the purchase of all snack foods. D. Do not buy cake mixes that contain artificial color. E. Any of the above could be an example of a consumer heuristic.
70. (p. 127) In its ads, Maxwell House Coffee stresses consumers' overall emotional impression of the brand with its "Good to the last drop" slogan. Maxwell House wants consumers to purchase on the basis of this impression and not by comparing specific attributes of other brands of coffee. This is an example of a marketer using: A. the affect referral decision rule B. intermittent stimulation C. cognitive input/output D. psychosocial consequences E. non-qualitative evaluative criteria
71. (p. 127) Nestlé uses the slogan, "Good Food, Good Life" to stress that its products provide everything consumers need—there is no need of looking at any other brands. Nestlé uses: A. the affect referral decision rule B. intermittent stimulation C. cognitive input/output D. psychosocial consequences E. non-qualitative evaluative criteria
72. (p. 127) _____ is an outcome of the alternative evaluation process and represents a predisposition to buy a certain brand. A. A purchase decision B. A purchase intention C. Affective behavior D. Satisfaction E. Cognitive dissonance
4-19
Chapter 04 - Perspectives on Consumer Behavior
73. (p. 127) _____ is a preference for a particular brand that results in its repeated purchase. A. A purchase intention B. Brand affectation C. Cognitive dissonance D. Brand loyalty E. A heuristic
74. (p. 127) David Pruitt owns several rental apartments. Having tried some other appliance brands in his apartments and been dissatisfied with their short life span, Pruitt will now only purchase Maytag brand appliances to go into his apartments. Pruitt's repeat purchases of Maytag appliances indicate: A. the existence of cognitive dissonance B. the absence of any affect referral decision rule C. strong brand loyalty D. extensive decision making and strong psychosocial consequences E. a lack of evaluative criteria
75. (p. 127) Why must marketers recognize the significance of the consumer's postpurchase evaluation stage? A. Cognitive dissonance may cause customers to never again purchase the product that was the source of the psychological tension. B. Dissatisfied customers are unlikely to repurchase the marketer's product. C. Consumers often seek out information to confirm the wisdom of their choice. D. Dissatisfied customers are likely to be a source of negative word-of-mouth information. E. All of the above are reasons why marketers must recognize the significance of the consumer's post-purchase evaluation stage.
76. (p. 128) _____ is a state of psychological tension or post-purchase doubt a consumer may experience after making a difficult purchase decision. A. Post-purchase evaluation B. Dissatisfaction C. Cognitive dissonance D. Conditioned anxiety E. Affective response
4-20
Chapter 04 - Perspectives on Consumer Behavior
77. (p. 128) For which of the following products is the consumer most likely to experience cognitive dissonance? A. chewing gum B. diamond engagement ring C. office supplies D. light bulbs E. garden fertilizer The purchase of a ring is an important decision and the buyer must choose among close alternatives.
78. (p. 128) Most of the purchase decisions made by consumers for low-priced frequently purchased products are characterized by: A. routine response behavior B. limited problem solving C. extended problem solving D. high involvement E. cognitive learning
79. (p. 129) For which of the following situations is a consumer's purchase behavior most likely to be characterized by extended problem solving? A. the purchase of laundry detergent B. the purchase of a new pair of running shoes by a consumer who runs regularly C. the purchase of a new set of skis by an avid skier D. the selection of a restaurant for lunch with friends E. the first time purchase of a personal computer by someone with no prior knowledge of PCs
80. (p. 129) A product manager for a new brand of laundry detergent must: A. increase problem recognition for detergent purchases B. interrupt consumers' routine choice behavior and get them to consider a new brand C. maintain a lower price than competitors D. provide detailed information to consumers E. create pioneering advertising.
4-21
Chapter 04 - Perspectives on Consumer Behavior
81. (p. 130) _____ assumes that learning is an associative process with an already existing relationship between a stimulus and a response. A. Classical conditioning B. Operant conditioning C. Instrumental conditioning D. Cognitive learning E. Affective modeling
82. (p. 130) _____ occurs when an unconditioned stimulus and a conditioned stimulus occur in close proximity in time and space. A. Association B. Repetition C. Frequency D. Conditioning E. Generalization
83. (p. 130) _____ is likely to occur when a point-of-purchase display for a new type of dental adhesive is teamed with a life-size portrait of the late Clint Eastwood, a man many people who are over 50 admire and want to emulate. A. Classical conditioning B. Psychological conditioning C. Affective modeling D. Reversal design E. Cognitive conditioning
84. (p. 130) Many baby boomers, especially males, can easily recognize the aqua blue color that was used on many 1950s automobiles. Seeing that color on a restaurant wall or as the color used on restaurant booths will elicit a response to that restaurant that is: A. similar to that used for evaluating a product with both functional and psychological consequences B. exemplary of cognitive planning C. consistent with classical conditioning principles D. related to current trends in advertising E. reflective of the wheel of retailing hypothesis
4-22
Chapter 04 - Perspectives on Consumer Behavior
85. (p. 130) An ad for Lowe's Home Improvement Warehouses shows a U.S. flag made out of flowers and has the headline, "Hooray for the red, white, and bloom." The ad associates Lowe's with the beauty of flowers as well as patriotism—both of which evoke positive responses in consumers and by association should evoke positive responses for Lowe's. This is an example of: A. the application of classical conditioning theory B. the wheel of retailing hypothesis C. cognitive planning D. using functional consequences to make a positioning statement E. perception retrieval
86. (p. 131) Why are principles of operant conditioning useful in the development of promotional strategies? A. The principles of operant conditioning explain the cognitive processes that mediate a consumer's response to advertising. B. The principles of operant conditioning show that experiences with products provide reinforcements that affect future purchase behaviors. C. The principles of operant conditioning explain why coupons and samples are unlikely to have any desirable effect on consumer behavior. D. The principles of operant conditioning explain consumer behavior in both high and low involvement situations. E. The principles of operant conditioning explains how the pairing of a neutral stimulus with a positive stimulus can produce an immediate desired response.
87. (p. 131) _____ is most closely associated with positive reinforcement. A. Projective conditioning B. Psychoanalytic theory C. Operant conditioning D. Affective theory E. The multiattribute motivational model
4-23
Chapter 04 - Perspectives on Consumer Behavior
88. (p. 131) Operant conditioning is sometimes referred to as _____ conditioning. A. stimulus-response B. psychoanalytical C. subliminal D. instrumental E. valence-oriented
89. (p. 131) Campbell's uses coupons, premiums and sweepstakes to promote its soup. This reflects an application of: A. cognitive theory B. psychoanalytic theory C. operant conditioning D. affective theory E. the multiattribute motivational model
90. (p. 131) The presence of a prize in every box of Cracker Jack snacks is an example of: A. classical conditioning B. continuous reinforcement C. partial reinforcement D. cognitive learning E. intermittent reinforcement
91. (p. 131) Learning occurs most rapidly under a(n) _____ reinforcement schedule, but the behavior is likely to cease when the reinforcement stops. A. continuous B. partial C. intermittent D. modeled E. flexible
4-24
Chapter 04 - Perspectives on Consumer Behavior
92. (p. 132) _____ is the reinforcement of successive acts that lead to a desired behavioral pattern or response. A. Shaping B. Continuous reinforcement C. Partial reinforcement D. Stimulus generalization E. Internal processing
93. (p. 132) When Sunkist introduced Almond Accents, a topping for everything from salads to casseroles, the promotional program for the introduction process included a 75-cents-off coupon on one 6 ounce bag and a $1.25-cents off coupon for two 6-ounce bags. In addition, consumers were asked to enter an original recipe using Almond Accents in a contest in which the first prize was a trip for two to the Culinary Institute of America. The use of these promotional tools is a good example of the application of: A. classical conditioning theory B. shaping procedures C. cognitive learning theory D. intermittent reinforcement E. attitude modification theory
94. (p. 132) 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. being useless in explaining consumers' decision-making processes E. assuming a mechanistic view of the consumer placing too much emphasis on external stimulus factors.
95. (p. 133) An approach to consumer learning that views the consumer as an information processor and problem-solver who forms judgments and evaluates various alternatives is consistent with: A. classical conditioning B. instrumental conditioning C. shaping D. cognitive learning theory E. process integration
4-25
Chapter 04 - Perspectives on Consumer Behavior
96. (p. 133) Peugeot ran a print advertising campaign for its automobiles that presented twenty good reasons for buying a Peugeot 505. The ad was very detailed and contained a great deal of information concerning performance characteristics of the car. This type of ad campaign would be consistent with which of the following learning theories? A. instrumental conditioning B. classical conditioning C. low involvement learning D. cognitive learning theory E. multiattribute learning
97. (p. 133) Business-to-business advertisers often assume their ads must contain a lot of information so potential customers can use this information to solve their problems. The basis for this type of advertising would be: A. cognitive learning theory B. psychoanalytic theory C. behavioral learning theory D. affective modeling E. shaping
98. (p. 133) The print ad for Chevy Ventura vans contains about ten times more copy than other ads in a recent issue of Better Homes & Gardens magazine. Which of the following theories states that this is an appropriate way to shape consumer behavior? A. psychoanalytical theory B. cognitive theory C. reinforcement theory D. affective modeling E. operant conditioning
4-26
Chapter 04 - Perspectives on Consumer Behavior
99. (p. 134) External factors that might affect the way consumers perceive advertisements include: A. subcultural purchasing patterns B. social class values C. attitudes of friends and family D. reference group norms E. all of the above See Figure 4-11.
100. (p. 134) _____ is defined as the complexity of learned meanings, values, norms and customs shared by members of a society. A. Culture B. Social class C. Reference groups D. Aspirational groups E. Situational influences
101. (p. 134) _____ are groups or segments in a society that possess similar beliefs, values, norms and patterns of behavior that set them apart from the larger mainstream. A. Demographic groups B. Subcultures C. Neighborhoods D. Social classes E. Reference groups
102. (p. 134) Ads for cruises, vacation time shares, and resort areas often show a couple enjoying quiet time together. Many of these ads contain two men or two women rather than a man and a woman in order to appeal to the lucrative gay market. This type of ad campaign with same sex couples is an example of how _____ affect marketing. A. demographic groups B. subcultures C. cultures D. social classes E. reference groups
4-27
Chapter 04 - Perspectives on Consumer Behavior
103. (p. 135) Why is it important that marketers understand how social class affects consumer behavior? A. Consumers in various social class strata differ in the degree to which they use various products and services. B. Consumers in various social class strata often exhibit similar values, lifestyle, and buyer behavior. C. Social class strata provide a basis for market segmentation for various products and services. D. Consumers in various social class strata often have similar media habits. E. All of the above are reasons why marketers need to understand how social class affects consumer behavior.
104. (p. 135) A _____ is a group whose presumed perspective or values are used by an individual as the basis for his or her judgments, opinions, and actions. A. subculture B. social class C. reference group D. demographic group E. cultural mix
105. (p. 136) A reference group to which one does not wish to belong is a(an) _____ group. A. aspirational B. disassociative C. disconnected D. confrontational E. segregated
106. (p. 136) Reference groups to which one would like to belong are called _____ groups. A. aspirational B. disassociative C. evoked D. acquisitive E. integrated
4-28
Chapter 04 - Perspectives on Consumer Behavior
107. (p. 136) Civic organizations like Rotary Clubs, Kiwanis and Lions Clubs offer their members camaraderie and a chance to help others through donations of time and money. By being positive forces in their communities, these organizations become: A. disassociative groups B. aspirational reference groups C. social class referents D. subcultural referents E. external referents
108. (p. 136) Boxing champion Evander Holyfield is a popular role model for young AfricanAmerican children, especially in his home state of Georgia. An anti-litter ad campaign that features Holyfield attempts to convince children to "Keep Georgia Peachy Clean" just like Evander does. This ad campaign hopes children will want to emulate Holyfield and convince others to emulate the fighter. Thus, a(n) _____ reference group will be created. A. aspirational B. disassociative C. evoked D. acquisitive E. integrated
109. (p. 137) In the family decision-making process, the person in the family who is responsible for problem recognition is the: A. purchasing agent B. consumer C. initiator D. information provider E. influencer See Figure 4-12.
110. (p. 137) Family role structures are important to advertisers in determining: A. whether to use operant or classical conditioning B. whether to appeal to the subconscious motives of the husband or the wife C. what information to feature in advertising to each family member D. whether to use a high or low involvement ad E. all of the above
4-29
Chapter 04 - Perspectives on Consumer Behavior
111. (p. 137) As the family sat at the dinner table, son Kent asked for a puppy. His request was immediately seconded by his sister Jeanine. Their mother asked who would care for the puppy while the father sat in his chair shaking his head. Which of the following statements describes the roles family members played in this decision-making process? A. Kent, Jeanine, and mother acted as initiators. B. Kent and Jeanine were initiators, and the mother was the decision maker. C. Jeanine was the initiator, Kent was the consumer, and the mother was the influencer. D. Jeanine and Kent planned to be the consumers until their father assumed the role of decision maker. E. The only person who did not have a role in the family decision making process in the mother. See Figure 4-12.
112. (p. 137) Factors such as time of day, store environments, or occasion for which a product will be used are examples of: A. group norms B. cultural factors C. subcultural influences D. family influences E. situational determinants
113. (p. 137) Which of the following is an example of a situational determinant that would affect consumer behavior? A. Beth had less than an hour to buy sheets, towels, shower curtain, and trash cans for her new apartment. B. Wednesday is Senior Citizen Day at Kroger, and the store plays big band music all day. C. Roger needed to buy a gift for his twentieth-fifth wedding anniversary. D. Even though Lonnie wants to buy a new mattress, he missed the ad for the mattress sale because he was listening to his friends argue about the correct way to eat crawfish. E. All of the above are examples of a situational determination that could affect consumer behavior.
4-30
Chapter 04 - Perspectives on Consumer Behavior
114. (p. 138-139) Which of the following research strategies would cross-disciplinary market researchers likely employ if they were researching how to create ads to increase the use of the U.S. Postal Service? A. observation of how customers interact with people behind the counter at post offices B. interpretative analyses C. in-depth personal interviews D. ethnographic participant observer studies E. all of the above.
4-31
Chapter 05 - The Communication Process
Chapter 05 The Communication Process
1. (p. 143) Early adopters are critical to the success of new products because: A. many customers pay attention to what they say and do B. consumers prefer early adopters over late adopters C. they engage in alternative-dynamic analysis D. integrated marketing communications are not designed to attract this market segment E. cognitive dissonance may alter pre-purchase evaluation by this market segment See opening vignette.
2. (p. 144) Marketers use a variety of alternative communications methods to reach early adopters because: A. government regulations alert early adopters to the communication process B. alternative media deny access to new product marketers C. a majority of this market segment are annoyed by the amount of advertising today D. these consumers are less likely to think about product choices before adopting them E. publicity is not usually available for targeting this market segment See opening vignette.
3. (p. 137) The basic function of all of the elements of the integrated communications program is to: A. communicate with a firm's target audience B. convince customers to make a purchase immediately C. convince customers to pay a higher price for a good or service D. educate customers about the features of a good or service E. persuade customers to try a product category
5-1
Chapter 05 - The Communication Process
4. (p. 145) _____ is defined as the passing of information, the exchange of ideas or process of establishing a commonness of thought between a sender and receiver. A. Advertising B. Sales promotion C. Encoding D. Decoding E. Communication
5. (p. 145) Which of the following statements about effective communication is true? A. Advertising communication is effective because marketers are able to tell consumers how to interpret their messages within the context of the communications. B. For effective communication, marketers must understand the meanings that consumers attach to words and symbols and how these words and symbols are interpreted. C. Effective integrated marketing communications always is nonpersonal in nature. D. Effective communication is unaffected by the reception environment. E. Whether an ad is in black and white or in full color has no impact on how effectively the message is communicated.
6. (p. 145) Successful communication depends on A. the nature of the message B. the interpretation of the message by the audience C. the environment in which a message is received D. the receiver's perception of the source of the message E. all of the above
7. (p. 145-146) Which of the following is NOT a controllable variable in the communications process? A. senders B. source C. message D. channel E. receivers
5-2
Chapter 05 - The Communication Process
8. (p. 145-146) Which of the following is NOT a basic element of the communications process? A. source B. message C. channel D. integration E. receiver
9. (p. 147) Communication problems in international marketing include misinterpretation of: A. brand names B. ad slogans C. signs and symbols D. language E. all of the above See Global Perspective 5-1.
10. (p. 148) Putting thoughts, ideas or information together in symbolic form is called: A. encoding B. deciphering C. shaping D. flighting E. decoding
11. (p. 148) An ad purchased by the Tennessee Department of Tourist Development encouraging people to choose the state of Tennessee for their vacation destination was published in Southern Living magazine. The ad shows various scenic pictures of Tennessee and includes the slogan, "Tennessee sounds good to me." In this print ad, the source of the advertising message is: A. the Tennessee Department of Tourist Development B. Southern Living magazine C. the people in the scenic pictures D. the slogan E. readers of the magazine
5-3
Chapter 05 - The Communication Process
12. (p. 148) Commercials for Planter's nuts describe the nuts as a delicious snack food for everyone. The commercials show animals that eat nuts as part of their usual diet trying to convince humans to share their Planter's nuts. In these commercials, the source of the advertising message is: A. Mr. Peanut, the company's visual image personality B. the television networks on which the ads run C. the specific television shows in which the ads are seen D. Planter's peanuts company E. people who talk about how humorous the commercials are
13. (p. 148) When actresses from the television show Desperate Housewives appear in a commercial endorsing Garnier Lumia hair products, the message source is: A. the television network showing the commercial B. the television program that the advertising provides financial support for C. the actresses D. consumers who view the commercial E. Desperate Housewives
14. (p. 148) The communication process begins with the process of _____, which leads to the development of a _____ that contains the information or meaning a source hopes to convey. A. encoding; message B. encrypting; transmission C. encoding; response D. decoding; message E. decoding; transmission
15. (p. 148) The source or sender of an advertising communication: A. is typically a salesperson B. is never a nonpersonal entity C. is typically identified as the owner of the medium in which the communication appeared D. can be an individual or a nonpersonal entity such as a corporation E. is never involved in the encoding process
5-4
Chapter 05 - The Communication Process
16. (p. 148) When marketers develop an advertising message, one of their primary goals is to encode the message: A. in a way that makes their message unique to each individual who is exposed to the ad B. so that it can only be understood by members of the target audience C. so that it will be understood and interpreted in a similar way by most consumers D. using nonverbal communication so as to eliminate problems with connotations and jargon E. so that it requires effort to decode it
17. (p. 148) The encoding process leads to the development of: A. a message B. noise C. a channel D. feedback E. a receiver
18. (p. 148) Which of the following would be an example of an advertising message? A. a radio commercial telling you to why you should fly to Florida on Delta Airlines B. a print ad explaining a sweepstakes in which the winner will receive a walk-on role on an NBC soap opera C. a print ad for DeBeers diamonds with a picture of a woman wearing a diamond necklace and the DeBeers name D. a television ad that tells you to watch the next episode of Grey's Anatomy E. all of the above
19. (p. 148) Which of the following statements about an advertising message is true? A. Advertising messages can be verbal or nonverbal. B. Advertising messages can be primarily visual. C. Advertising messages are generally put into a transmittable form that is appropriate for the channel of communication being used. D. The effectiveness of an advertising message may be determined by the impression or image it creates rather than the information it contains. E. All of the above statements about an advertising message are true.
5-5
Chapter 05 - The Communication Process
20. (p. 148) _____ is the study of the nature of meaning and how words, gestures and symbols acquire meaning. A. Communication derivation B. Language arts C. Symbolics D. Semiotics E. Linguistics
21. (p. 148) To help understand what the teddy bear on its Snuggle fabric softener might symbolize to consumers, Lever Brothers could use: A. life style research B. cognitive response research C. involvement research D. semiotic analysis E. common ground research
22. (p. 148) Advertisers can determine how people react to words like juvenile, immature and childish that have the same basic denotation but differing connotations through the use of: A. psychoanalysis B. semiotic analysis C. common ground research D. affective theory E. involvement research
23. (p. 148) Before the U.S. Postal Service (USPS) adopted the stylized eagle that appears on all labels, buildings, trucks and postal boxes it used a sticklike mailman figure called Mr. Zip. Research showed the eagle was a much more positive symbol—denoting ruggedness, individuality, and the American "can-do" spirit. _____ would have provided the USPS with the ability to understand the meaning consumers give to the eagle. A. Lifestyle research B. Cognitive response research C. Involvement research D. Semiotic analysis E. Common ground research
5-6
Chapter 05 - The Communication Process
24. (p. 148) Some advertising and marketing people are skeptical about the value of semiotics because they believe: A. the meaning of an advertisement and all other forms of marketing communication lies solely in the message B. social scientists may read too much into advertising messages and are overly intellectual in interpreting these messages C. consumers interpret advertising messages in basically the same way D. it costs too much money to conduct semiotic analysis of advertising messages E. culture cannot be explained by anything as simplistic as semiotics
25. (p. 148) Semiotic analysis can be helpful to marketers in understanding how consumers perceive and interpret: A. advertising messages B. brand names C. non-verbal communication used by salespeople D. package designs E. all of the above
26. (p. 149) An ad purchased by the Tennessee Department of Tourist Development encouraging people to choose the state of Tennessee for that vacation destination was published in Southern Living magazine. The ad shows various scenic pictures of Tennessee and includes the slogan, "Tennessee sounds good to me." In this example, Southern Living magazine would be an example of a _____, a part of the communication process. A. channel B. receiver C. feedback mechanism D. source E. message transmitter
5-7
Chapter 05 - The Communication Process
27. (p. 149) Which of the following would be an example of a channel in the communication process? A. the number of customers that redeemed a cents-off coupon B. a billboard beside an interstate highway C. the creative people who designed the new Wendy's ad D. an ad's spokesperson E. all of the above
28. (p. 150) Advertisements for Planter's nuts describe the nuts as a delicious snack food for everyone. The commercials show animals that eat nuts as part of their usual diet trying to convince humans to share their Planter's nuts. The channel for these ads is: A. television B. the computer-generated animals C. an increase in the sales of Planter's nuts D. the can of Planter's nuts shown in the ad E. the people in the ads
29. (p. 150) The _____ is the method or medium by which communication travels from the source to the receiver: A. channel B. receiver C. feedback mechanism D. source E. message transmitter
30. (p. 149) Rosa Martinez sees an ad for DKNY jeans in the copy of Vanity Fair magazine she is reading. The ad would be considered a _____ while Vanity Fair would be considered a _____. A. source; message B. channel; message C. message; receiver D. message; channel E. channel; source
5-8
Chapter 05 - The Communication Process
31. (p. 150) Which of the following is an example of a personal channel of communication? A. salesperson B. newspaper C. radio D. magazines E. television
32. (p. 150) Michael told Terry and Bill, and Terry told Melissa, and Melissa told Ty, Andrew, and Beryl that the new Mexican restaurant in town had authentically prepared Mexican dishes. This word-of-mouth took place via a(n) _____ channel of communication. A. individualized B. direct-response C. nonpersonal D. personal E. customized
33. (p. 150) Honda broadcasts a commercial during Law & Order, a TV program that is seen by eight million viewers. The broadcasting of this ad takes place in a(n) _____ channel of communication. A. individualized B. direct-response C. nonpersonal D. semiotic E. verbal
34. (p. 150) Kroger supermarkets buy an insert to go into Thursday's Atlanta JournalConstitution. The newspaper is read by over 100,000 people. The newspaper is a(n) example of a(n) _____ channel of communication. A. individualized B. direct-response C. nonpersonal D. semiotic E. verbal
5-9
Chapter 05 - The Communication Process
35. (p. 150) Nonpersonal channels of communication include: A. newspapers, magazines, billboards, and salespeople B. salespeople, friends, relatives, and spokespeople C. reference groups, sales clerks, and telemarketers D. television, radio, newspapers, and magazines E. television, salespeople, and radio
36. (p. 152) _____ is the process of interpreting a sender's message into thought. A. Decoding B. Encoding C. Channeling D. Responding E. Transmitting
37. (p. 152) When Bart heard an ad state that Kraft It's Pasta Anytime microwave meals could be prepared in three minutes, he thought he understood that he would find the meals in his supermarket's frozen food aisle with other microwave meals. When he could not find the Kraft meals, he purchased another brand. He did not understand the Kraft meals were not frozen and that was why they cooked so quickly. He should have looked on the supermarket aisle that contains pasta. Bart experienced a problem with: A. decoding B. encoding C. channeling D. responding E. transmitting
38. (p. 152) Which of the following communication processes will be most influenced by the experiences, perceptions, attitudes and values of the message recipient? A. encoding B. decoding C. noise D. feedback E. transmission
5-10
Chapter 05 - The Communication Process
39. (p. 152) The field of experience of the receiver most heavily influences which component of the communications process? A. encoding B. decoding C. message D. feedback E. noise
40. (p. 152) The experiences, perceptions, attitudes and values a consumer brings to a communication situation is referred to as his or her: A. semiotic experiences. B. field of experience. C. common ground. D. source characteristics. E. selective perceptions.
41. (p. 152) Mentos mint candy uses an advertising campaign that shows people solving problems by thinking outside of the box—by taking a fresh look at a common problem. "Freshness" is the message the ad is supposed to deliver, but if Rick and Beth Minton think the ad is simply showing people being rude and boorish then in terms of the communication process, the Mintons have _____ the message improperly. A. encoded B. interpreted C. decoded D. transmitted E. channeled
42. (p. 152) The fact that marketing and advertising people have backgrounds and interests that are often quite different from consumers who comprise mass markets for many products and services makes it difficult to establish: A. decoding B. feedback mechanisms C. response hierarchies D. common ground E. fields of experience
5-11
Chapter 05 - The Communication Process
43. (p. 152) Mentos mint candy uses an advertising campaign that shows people solving problems by thinking outside of the box—by taking a fresh look at a common problem. The advertisers think the message the ad delivers is freshness. However, Rick and Beth Minton think the ad is simply showing people being rude and boorish. One of the possible explanations for these highly different perceptions of the ads is due to an absence of: A. interpretative links B. feedback mechanisms C. response hierarchies D. common ground E. fields of experience
44. (p. 153) Which of the following statements about ageism in advertising is true? A. Mature people are more likely to be shown in television than print ads. B. Some people believe too many mature people 60 and over are used in advertising today. C. Because the mean age of the population is increasing, you can expect to see more youthoriented advertising. D. There have been no successful ad campaigns showing people 60 and over performing age appropriately. E. None of the above statements about ageism in advertising is true. See IMC Perspective 5-2.
45. (p. 154) _____ is any unplanned distortion or interference in the communication process. A. Semiotics B. Selective perception C. Noise D. Feedback E. Blocking
5-12
Chapter 05 - The Communication Process
46. (p. 154) Winston is watching a suspenseful TV program with a group of friends. During the commercial break everyone starts discussing the show and he cannot hear the commercials even though he really wanted to watch the new Pepsi ad. Winston's inability to receive the Pepsi message illustrates which element of the communications process? A. encoding B. decoding C. feedback D. common ground E. noise
47. (p. 154) Ronell missed the small ad for Smythe Catering in the newspaper today because his attention was attracted by an ad for an estate sale that was on the same page. In terms of the communication process, the ad for the estate sale kept Ronell from seeing the ad for the caterer and acted as: A. an encoding hazard B. a decoding block C. negative feedback D. a receptor block E. noise
48. (p. 154) ______ is the part of the receiver's response that is communicated back to the sender. A. Feedback B. Noise C. Reciprocity D. Encoding E. Reception
49. (p. 154) Which of the following provides the sender of an advertising message with a way of monitoring the effectiveness of the message? A. encoding mechanisms B. decoding mechanisms C. feedback D. noise filters E. the channel
5-13
Chapter 05 - The Communication Process
50. (p. 154) An ad for The Peabody Hotel in Memphis, Tennessee, has an 800-number people can call if they are interested in reserving rooms at the hotel or knowing more about the hotel. One way to determine the effectiveness of this ad is to count the number of phone calls it receives in response to its ad. This response count is an example of: A. feedback B. encoding C. noise filtering D. noise blocking E. decoding
51. (p. 154) Tyra Hubbard sells beauty care products to retailers and is making a sales presentation to the buyer at a major department store. Which of the following would be considered a form of feedback Hubbard might receive from the buyer? A. the questions the buyer asks B. nonverbal responses the buyer makes such as frowns or gestures C. the buyer's comments on Hubbard's company and products D. the size of the order the buyer is willing to make E. all of the above
52. (p. 154) The element of the communications process that closes the loop in the communications flow and allows the sender to monitor how a message is being received and interpreted is: A. encoding B. decoding C. feedback D. reception E. response
53. (p. 154) Instantaneous feedback on how effective a marketing communication method is will most likely appear in: A. personal selling situations B. radio advertising C. television advertising D. direct mail advertising E. mass communication channels
5-14
Chapter 05 - The Communication Process
54. (p. 154) For most marketers, the ultimate form of feedback is: A. use of reply cards B. the communication effects C. store visits D. sales E. consumer inquiries
55. (p. 154) Counts of customer visits to a store, consumer inquiries, coupon redemption and recall of advertising are all possible forms of: A. internal communication B. feedback C. noise D. message channels E. decoding mechanisms
56. (p. 155) Individual and group audiences, niche markets, market segments and mass markets are all examples of: A. different stages of the response process B. hierarchies of effects C. levels of audience aggregation D. communication elements E. nonpersonal channels of target audiences See Figure 5-2
57. (p. 155) Which of the following products is most likely to be promoted through personal selling? A. Butterfinger candy bars B. cat litter C. light bulbs D. real estate E. silk flowers
5-15
Chapter 05 - The Communication Process
58. (p. 155) When developing a communications plan, the process should begin with: A. determining who will be the source of the communications B. the identification and analysis of receivers in the target audience C. deciding what feedback level is acceptable D. determining what media to use E. ascertaining the type of feedback that will be accepted
59. (p. 155) The best way to reach a narrowly defined group of customers or market niche is through: A. television advertising and billboards B. personal selling and targeted direct mail C. targeted direct mail and radio advertising D. any form of broadcast media E. transit advertising, billboards, and ads with pithy headlines
60. (p. 155) Television advertising is used most often to communicate with what type of target audiences? A. niche markets B. industrial buying centers C. mass audiences D. resellers E. purchasing agents
61. (p. 156) The AIDA model is often used to represent what ideally happens during: A. personal selling B. the decoding of direct marketing advertising pieces C. mass marketing D. sales promotions E. the introduction of innovative new consumer products
5-16
Chapter 05 - The Communication Process
62. (p. 156) Inez and Troy were just strolling through the mall when they saw a mattress with adjustable levels of firmness in a store window. Once they became aware such a product existed, they were eager to talk to a salesperson and learn more about the mattresses. After talking to the salesperson for thirty minutes, Inez and Troy realized they wanted to own one. They used their credit card to order a mattress and to pay for its delivery to their home. In terms of the models of response process, Inez and Troy have just gone through the stages in the _____ model. A. AIDA B. hierarchy of effects C. innovation-adoption D. adoption response E. diffusion rate
63. (p. 156) The hierarchical model representing the stages a salesperson must take a customer through in the personal selling process is the _____ model. A. AIDA B. hierarchy of results C. diffusion rate D. innovation-adoption E. information processing
64. (p. 156) The _____ model is a response model that was developed for setting and measuring advertising objectives. A basic premise of this model is that advertising effects occur over a period of time. A. AIDA B. hierarchy of effects C. innovation-adoption D. adoption response E. diffusion rate
5-17
Chapter 05 - The Communication Process
65. (p. 156) The _____ model, the best known of the response hierarchies, shows the process by which advertising works. The premise of this model is that advertising effects occur over a period of time. A. diffusion rate B. objective-task C. innovation-adoption D. hierarchy of effects E. adoption objective
66. (p. 155) Which of the following response hierarchy models depicts consumers as going through the stages of awareness àinterest à evaluation à trial àadoption? A. the AIDA model B. the hierarchy of effects model C. the innovation adoption model D. the information processing model E. the integrated information response model See also Figure 5-3.
67. (p. 155) Which of the following response hierarchy models depicts consumers as going through the stages of attention àcomprehension à yielding àretention àbehavior? A. the AIDA model B. the hierarchy of effects model C. the innovation adoption model D. the information processing model E. the integrated information response model See also Figure 5-3.
5-18
Chapter 05 - The Communication Process
68. (p. 155) Which of the following response hierarchy models includes a cognitive stage? A. the AIDA model B. the hierarchy of effects model C. the innovation-adoption model D. the information processing model E. all of the above See Figure 5-3.
69. (p. 157) Which of the following hierarchical response models views the receiver of a persuasive communication as a problem solver? A. the AIDA model B. the hierarchy of effects models C. the innovation-adoption model D. the information processing model E. the 5-Ws model
70. (p. 155) In 2004, Delta Airlines was the first major airline to charge passengers for brand name snacks and meals. The _____ model would have been most relevant to communicating this change. A. hierarchy of effects B. AIDA C. innovation-adoption D. cognitive response E. information processing See also Figure 5-3.
5-19
Chapter 05 - The Communication Process
71. (p. 155) 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. A. hierarchy of effects model B. AIDA model C. innovation-adoption model D. cognitive response model E. information processing model See also Figure 5-3.
72. (p. 157) Nike conducts a marketing research study and finds the majority of consumers recall the company's "Just do it" ad slogan. Nike can safely assume: A. consumers are aware of Nike's advertising B. consumers have favorable attitudes toward Nike C. consumers understand the advertising message Nike is trying to communicate D. consumers will probably buy Nike athletic shoes E. all of the above
73. (p. 157) Which of the following statements describes how the traditional hierarchy of effects model can be used as a measure for advertising effectiveness? A. Consumers must pass through each stage before making a purchase. B. Awareness and recall are the most important measures of ad effectiveness. C. The stages of the hierarchy offer useful intermediate measures of advertising effectiveness. D. The hierarchy is not useful because sales are the only appropriate goal of advertising. E. Time is not a situational factor when using this model to measure ad effectiveness.
74. (p. 157) Attention, awareness, and knowledge are all examples of the _____ stage of the response process and appear in all of the models describing the consumer response process. A. cognitive B. affective C. behavioral D. subliminal E. conative
5-20
Chapter 05 - The Communication Process
75. (p. 157) Trial, purchase, adoption, and rejection are all examples of the _____ stage of the response process and appear in all of the models describing the consumer response process. A. cognitive B. affective C. behavioral D. motivational E. learning
76. (p. 158) Interest, liking, preference, evaluation and yielding are all examples of the _____ stage of the response process and appear in all of the models describing the consumer response process. A. cognitive B. affective C. behavioral D. conative E. learning
77. (p. 159) According to the _____, the consumer is an active participant in the communication process and gathers information through active learning. A. standard learning hierarchy B. low-involvement hierarchy C. dissonance/attribution model D. peripheral processing model E. maximum likelihood model
78. (p. 159) According to the standard learning model, the consumer passes through which of the following response sequences during the decision making process? A. learn feel do B. learn do feel C. feel learn do D. do feel learn E. do learn feel
5-21
Chapter 05 - The Communication Process
79. (p. 159) For which of the following products would an advertiser be more likely to use the standard learning model to explain the consumer decision-making process? A. bar of soap B. pickup truck C. garden rake D. bag of cement E. computer disks
80. (p. 159) The _____ model explains the decision-making process when a consumer buys a high-involvement product for which there is a high amount of differentiation among brands. A. standard learning B. dissonance/attribution C. low-involvement D. cognitive response E. 5-Ws
81. (p. 159) The _____ model involves selective learning, whereby the consumer seeks information that supports the purchase choices made and avoids information that would raise doubts about the decision. A. standard learning B. dissonance/attribution C. low-involvement D. cognitive response E. 5-Ws
82. (p. 159) Graduate schools that offer MBAs are typically rated annually by business publications. Oftentimes when an MBA program rates high on a list, the information is publicized. If the purpose of the communication is to make sure current students know they have made the right choice and are attending a prestigious institution, then the _____ model would be correct. A. standard learning B. dissonance/attribution C. low-involvement D. cognitive response E. 5-Ws
5-22
Chapter 05 - The Communication Process
83. (p. 160) According to the dissonance/attribution model, the consumer passes through which of the following response sequences during the decision making process? A. learn feel do B. learn do feel C. feel learn do D. do feel learn E. do learn feel
84. (p. 160) According to the _____ model, the major impact of the mass media occurs after the purchase is made. A. low-involvement B. standard learning C. dissonance/attribution D. cognitive response E. elaboration likelihood
85. (p. 161) According to the _____ hierarchy, advertisers of products like light bulbs, ketchup, computer paper, nail clippers, and other items bought without a lot of thought need to use a heavy repetition strategy. A. three-orders response B. standard learning C. dissonance-attribution D. low-involvement E. high involvement
86. (p. 161) For which of the following products would an advertiser be more likely to use the low-involvement hierarchy to explain the consumer decision-making process? A. bar of soap B. digital camera C. refrigerator-freezer combination D. yard landscaping E. wedding dress
5-23
Chapter 05 - The Communication Process
87. (p. 161) According to the low-involvement hierarchy, the consumer passes through which response sequence during the purchase decision making process? A. learn feel do B. learn do feel C. do feel learn D. feel learn do E. do learn feel
88. (p. 161) Which response hierarchy views the consumer as engaging in passive learning and random information catching? A. standard learning B. low-involvement C. dissonance/attribution D. habit formation E. informative processing
89. (p. 161) The repeated use of the "Got milk" slogan by America's Dairy and Milk Processors in their ads can most readily be justified by the _____ hierarchy. A. standard learning B. low-involvement C. dissonance/attribution D. habit formation E. informative processing
90. (p. 161) Marketers trying to sell _____ will find the use of a catchy jingle or ad slogan to be most effective. A. products characterized by a low-involvement response hierarchy B. products characterized by high-involvement response hierarchy C. consumer durables that require detailed information D. services where differentiation is important E. products to the business-to-business market
5-24
Chapter 05 - The Communication Process
91. (p. 163) Marketers of _____ often must communicate with passive, uninterested consumers who may focus more on non-message elements such as music, slogans, and jingles than on message content. A. employment services B. ketchup, mustard, margarine, and soy sauce C. personal computers D. x-ray machines, road building equipment, and walk-in refrigeration units E. business-to-business services such as advertising agencies
92. (p. 163) Advertisers of products characterized by low levels of involvement might consider using _____ in designing their advertising strategy. A. heavy repetition of simple product claims B. catchy slogans C. attention-attracting gimmicks D. visual image personalities E. all of the above
93. (p. 163) Geico's gecko, the Green Giant, and the AFLAC duck are examples of: A. visual image personalities B. affective characters C. selectively remembered personalities D. high-involvement advertising appeals E. cognitively processed characters
94. (p. 163) Visual image personalities: A. are typically used with complex products that require high-involvement B. appear in ads for low-involvement products C. require central route processing to be effective D. typically shorten the cognitive stage of the consumer decision-making process E. are used when consumers must go through all stages of AIDA before making a purchase
5-25
Chapter 05 - The Communication Process
95. (p. 153) The various models of the ways consumers respond to advertising and other forms of marketing communication show that: A. consumers are generally highly involved in the response process and engage in active information processing B. consumers never make purchase decisions based on a general awareness resulting from repetitive exposure to advertising C. the notion of a highly involved consumer who engages in active information processing and acts on the basis of higher-order beliefs and well-formed attitudes is appropriate for all purchase situations D. at no time can consumers develop brand preferences primarily on the basis of their direct experiences with a product E. none of the above is true
96. (p. 163) Although there is no single precise definition of consumer involvement, most conceptualizations of it focus on: A. consumer wants B. consumer motives C. personal goals D. personal relevance E. communications integration
97. (p. 164) Which of the following is an example of an antecedent variable that would influence a consumer's level of involvement in a purchase? A. personal needs B. consumer's interest in the product C. the occasion for which the product is being purchased D. the degree of difference between various brands of the product E. all of the above
5-26
Chapter 05 - The Communication Process
98. (p. 164) Which of the following is NOT a strategy associated with the FCB planning grid? A. dissonance strategy B. self-satisfaction strategy C. habit formation strategy D. affective strategy E. informative strategy See also Figure 5-6.
99. (p. 164) The Foote, Cone & Belding grid is based on the dimensions of _____ and highversus low-involvement. A. dissonance versus attribution B. rational versus irrational thought C. thinking versus feeling processing D. affect versus dissonance E. selective versus passive learning See also Figure 5-6.
100. (p. 164) According to the FCB model, the _____ strategy is for highly involving products where rational thinking and economic considerations prevail. A. habitual B. informative C. affective D. satisfaction E. dissonance reduction See also Figure 5-6.
5-27
Chapter 05 - The Communication Process
101. (p. 164) According to the FCB planning model, for which of the following products would an affective strategy be most appropriate? A. storm windows B. bag of cat litter C. can of Planter's peanuts D. a hall table E. cosmetics See also Figure 5-6.
102. (p. 164) According to the FCB planning model, a package goods company might want to send out free samples to generate trial and follow this with discount coupons to encourage repeat purchase when using a(n) _____ strategy. A. informative B. affective C. habit formation D. self-satisfaction E. counter arguing See also Figure 5-6.
103. (p. 165) _____ are thoughts that occur to a consumer when reading, viewing, and/or hearing a communication. A. Cognitive responses B. Affective responses C. Selective impressions D. Elaborations E. Conative impressions
5-28
Chapter 05 - The Communication Process
104. (p. 165) Kenya was asked to look at a television ad for a movie that was going to be released in December. She was then asked her reactions to the ad—Did it make her want to see the movie? Did the title seem appropriate? Did she feel that she understood the subject of the movie? As a result of using _____, it was determined that the communication created the appropriate reactions. A. cognitive responses B. affective responses C. selective impressions D. elaborations E. conative impressions
105. (p. 166) When Johann saw the television ad advising him to mark on his calendar when the latest of Survivor series would start, he was appalled that the network would provide such trite and derivative programming. Johann's response to the ad for the reality program would be an example of: A. counter arguing B. support arguing C. source bolstering D. negative dissonance E. source blockage
106. (p. 166) Tia saw a television commercial that said a specific brand of pain reliever was much more effective than the brand she had used and trusted for the last twenty years. As a result of this commercial, Tia is likely to engage in: A. counter arguing B. support arguing C. source bolstering D. negative dissonance E. source blockage
5-29
Chapter 05 - The Communication Process
107. (p. 166) The ad for Jergens lotion indicated it has both beta hydroxy to defoliate dry skin and alpha hydroxy to moisturize skin. Someone who knew something about these additives work might respond to the ad by thinking, "Those fancy-sounding ingredients won't help my skin. It's too dry for some over-the-counter lotion to soften it." The individual's response to the ad's copy would be an example of a: A. negative ad execution thought B. source derogation C. support argument D. counterargument E. positive execution thought
108. (p. 166) The ad for Jergens lotion indicated it has both beta hydroxy to defoliate dry skin and alpha hydroxy to moisturize skin. Someone who knew something about these additives work might respond to the ad by thinking, "If it has both those ingredients, it must be really good for my skin. I'm going to buy a bottle." The individual's response to the ad's copy would be an example of a: A. negative ad execution thought B. source derogation C. support argument D. counterargument E. positive execution thought
109. (p. 166) When Harrison saw the television ad advising him to mark on his calendar when the latest of Survivor series would start, he actually did make a mental note of the starting day because he had enjoyed the previous Survivor shows so much. Harrison's response to the communication was an example of a: A. negative ad execution thought B. source derogation C. support argument D. counterargument E. positive execution thought
5-30
Chapter 05 - The Communication Process
110. (p. 166) Kasey hears a radio commercial for a weight loss program involving hypnosis that claims an individual can lose weight through its program. Kasey thinks to himself, "Yep, it sure does work. I wouldn't have been able to lose thirty pounds without it." This thought would be an example of a: A. source derogation B. source bolster C. counterargument D. support argument E. ad executive thought
111. (p. 166) Mentos mint candy uses an advertising campaign that shows people solving problems by thinking outside of the box—by taking a fresh look at a common problem. "Freshness" is the message the ad is supposed to deliver. When Rick and Beth Minton saw the ad, Rick said to Beth, "That ad is simply showing people being rewarded for being rude and boorish. How could any company think that sort of ad would appeal to decent people?" Rick's comment about the ad source represents a: A. negative ad execution thought B. source derogation C. support argument D. counter argument E. positive execution thought
112. (p. 166) Negative thoughts about a spokesperson in an ad are called: A. source derogations B. counterarguments C. source bolsters D. source blockages E. message blockages
5-31
Chapter 05 - The Communication Process
113. (p. 166) Florence is watching television and sees a commercial in which Sarah Jessica Parker is endorsing a hair care product. Florence thinks to herself, "That girl is was that scandalous show, Sex in the City. I wouldn't buy anything she promotes." This is an example of a: A. counterargument B. support argument C. source bolster D. source derogation E. message blockage
114. (p. 166) Sometimes when celebrities are convicted in drug-related cases, part of the sentencing is to perform community service by speaking to students about the evils of drug usage. Some people have questioned the value of this form of community service because it could glamorize the use of drugs. The ill feelings some people have towards celebrities in these types of programs can create: A. source derogation B. counterargument C. source bolster D. source blockage E. message blockage
115. (p. 166) Most advertisers attempt to hire spokespeople their target audience likes so as to generate _____ for the message. A. source derogation B. counterargument C. source bolster D. source blockage E. message synergy
116. (p. 166) A company that wanted to make use a source bolster could: A. create a rational message B. hire a popular celebrity to serve as a spokesperson C. use non-traditional channels D. eliminate noise from the communication process E. encode without consideration for the target audience's field of reference
5-32
Chapter 05 - The Communication Process
117. (p. 166) Of the categories of cognitive responses discussed in the text, which is most likely to predict a viewer's attitude toward the ad? A. product/message thoughts B. source-oriented thoughts C. ad execution-related thoughts D. brand attitudes E. purchase intention thoughts
118. (p. 166) Which category of cognitive responses includes a message recipient's reactions to factors such as the creativity of an ad, the quality of the visual effects, colors, voice tones, and the like? A. counterarguments B. support arguments C. source derogations D. ad execution-related thoughts E. attitude toward the brand
119. (p. 167) ____ is a term used to describe a message receiver's feelings of favorability or unfavorability toward an advertisement. A. Brand attitude B. Purchase intent C. Attitude toward the ad D. Counterargument E. Source derogation
120. (p. 167) The _____ is a model that addresses the differences in the ways consumers respond to persuasive messages. A. elaboration likelihood model (ELM) B. 5-W's model of communication C. AIDA model D. information processing model E. cognitive response model
5-33
Chapter 05 - The Communication Process
121. (p. 168) Studies show sex and nudity increase viewers' attention but: A. do not assist marketers in overcoming consumer resistance B. damage dramatic positioning of niche market products C. push channel marketing promotion better than pulling systematic results D. should not be used for innovative and award-winning advertorials E. may distract from consumers attending to the ad message See IMC Perspective 5-3.
122. (p. 168) The "vampire effect" described in "Do Men and Women Process Sexy Ads Differently" refers to the conclusion that: A. sexual imagery can be used to sell both sex-related and everyday consumer products B. buzz marketing works when combined with sexual imagery C. bloody images are effective stimuli for marketing of a wide variety of products D. strong sexual imagery sucks up the attention that would have been spent on the ad E. marketers need to carefully choose celebrity spokespeople to avoid being associated with vampire imagery See IMC Perspective 5-3.
123. (p. 169) The elaboration likelihood model (ELM) was developed to explain the process by which persuasive communications influence: A. dissonance formation B. attributions C. beliefs D. attitudes E. group norms See also Figure 5-8.
5-34
Chapter 05 - The Communication Process
124. (p. 169) The elaboration likelihood model (ELM) indicates that the willingness to process an ad is a function of two elements. They are the _____ to process the message. A. encoding and decoding abilities B. motivation and ability C. knowledge and technical skills D. attitude and linguistics skills E. verbal and nonverbal skills
125. (p. 169) Ned is planning on buying a new computer. He carefully studied the contents of an ad describing the superiority of Dell computers and scrutinized how the advertising message argued in favor of Dell's superiority. According to the ELM, Ned is engaging in what type of message processing? A. support arguing B. central processing C. peripheral processing D. source bolstering E. comparative analysis
126. (p. 169) The elaboration likelihood model (ELM) states that there are two basic routes to persuasion, the central route and the peripheral route. Under the central route to persuasion, a message recipient is viewed as: A. lacking the motivation to process a message B. having a low level of involvement and relying on imagery processing C. a very active and involved participant in the communications process D. having low ability to attend to and comprehend a message E. unlikely to engage in detailed cognitive processing
127. (p. 169) According to the elaboration likelihood model (ELM), a receiver lacks the ability or motivation to process information under the _____ route to persuasion. A. central B. peripheral C. cognitive D. high-involvement E. affective
5-35
Chapter 05 - The Communication Process
128. (p. 169) The elaboration likelihood model (ELM) states that there are two basic routes to persuasion, the central route and the peripheral route. With the peripheral route to persuasion,: A. the message will be more likely received if a celebrity endorser is used B. the message should contain a lot of information C. the receiver is viewed as very actively involved in the communication process D. the quality of the message claims are more important than the spokesperson, headline, pictures, or music bed E. the sender is dealing with a high-involvement buying situation
129. (p. 167) Trevor is watching a late night TV show when a low-budget commercial for a local restaurant comes on the air. He is turned off by the poor quality of the commercial and immediately tunes out the message without processing any of the information. Trevor is engaging in what type of message processing? A. support arguing B. central processing C. peripheral processing D. source bolstering E. source blocking
130. (p. 169) According to the elaboration likelihood model (ELM), an advertiser who wants to reach a receiver through a peripheral route to persuasion could use: A. old 1960s music that is recognized by all baby boomers B. football stars as spokespeople C. images of the Vietnam War D. psychedelic colors E. any of the above
5-36
Chapter 05 - The Communication Process
131. (p. 171) Research on the elaboration likelihood model (ELM) has shown that: A. celebrities are effective peripheral cues in a high-involvement situation B. celebrities are effective peripheral cues in a low-involvement situation C. the quality of message arguments is likely to be very important in a low-involvement situation D. the quality of the message claims is always less likely to be persuasive than the status of the celebrity endorser E. peripheral cues are more important than detailed messages in high-involvement situations
132. (p. 171) Gillette believes commercials for deodorants are processed primarily through a peripheral processing route. This might explain why the company would use which of the following advertising strategies? A. very detailed ads with a great deal of information about the causes of body odor B. detailed ads with strong message arguments about Gillette brands C. ads that use celebrity endorsers such as basketball star Lebron James 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
5-37
Chapter 06 - Source, Message, and Channel Factors
Chapter 06 Source, Message, and Channel Factors
Multiple Choice Questions 1. (p. 176) One of the criticisms of using celebrities in advertising is consumers may remember the celebrity but not what they were promoting. Which of the following is NOT one of the products/services Tiger Woods is promoting? A. Accenture B. Bear Sterns C. Gillette D. Buick E. Nike See opening vignette.
2. (p. 176) Three reasons marketers are paying huge sums to have Tiger Woods as their celebrity spokesperson include: A. persuasiveness, primacy effect and refutational appeal B. creativity, source clutter and sleeper effect C. likeability, believability and popularity D. sincerity, simplicity and superhuman capabilities E. assertiveness, aggressiveness and accomplishments See opening vignette.
3. (p. 177) The _____ is a planning tool that can be used by marketers to consider how controllable elements of the communications process interact with the consumers' response process. A. dissonance/attribution model B. persuasion matrix C. AIDA model D. response model E. elaboration likelihood model (ELM)
6-1
Chapter 06 - Source, Message, and Channel Factors
4. (p. 177) According to the persuasion matrix, which of the following is NOT a controllable communication component? A. source B. message C. comprehension D. channel E. receiver See also Figure 6.1.
5. (p. 177) The independent variable in the persuasion matrix that takes into account the passage of information from one person to another is: A. the source B. the message C. behavior D. retention E. destination
6. (p. 177) According to the persuasion matrix, which of the following is NOT a dependent variable or stage in the response process? A. attention B. comprehension C. destination D. yielding E. retention See Figure 6-1.
6-2
Chapter 06 - Source, Message, and Channel Factors
7. (p. 177) What combination of independent and dependent variables of the persuasion matrix did The Golf Channel consider when it hired Canadian golfing pro Steve Allen to be its spokesperson in a Canadian advertising campaign and assumed he would be noticed by Canadians who golf and are interested in golf? A. source/yielding B. message/yielding C. channel/attention D. source/attention E. message/retention See Figure 6-1.
8. (p. 177) When FX cable network promotes its television show The Shield, it shows bloody and provocative excerpts from upcoming episodes. Which combination of independent and dependent variables does the advertiser using the persuasion matrix consider for this commercial? A. source/attention B. source/comprehension C. message/yielding D. channel/behavior E. receiver/attention See Figure 6-1.
9. (p. 177) A series of anti-smoking commercials show three people having fun and then one getting killed in some particularly gruesome fashion using some bogus product. The tag at the end of the commercial reads, "The only product that is allowed to kill one out of every three people is tobacco." What combination of independent and dependent variables does the advertiser using the persuasion matrix consider for this commercial? A. source/attention B. source/comprehension C. message/yielding D. channel/behavior E. receiver/attention See Figure 6-1.
6-3
Chapter 06 - Source, Message, and Channel Factors
10. (p. 177) A mobile phone company uses Catherine Zeta-Jones in all of its print and broadcast advertising. The extremely attractive and talented English-born actress is used because she is more likely to attract the attention of potential consumers of mobile phones. In terms of the response stages of the persuasion matrix, the mobile phone company is trying to influence: A. retention B. channels C. attention D. presentation E. behavior
11. (p. 177) Which of the following would be an example of a message source? A. actress Sarah Michelle Geller in Revlon commercials B. Writers' Digest magazine C. the organization in Orlando to promote tourism D. Tiger Woods E. all of the above
12. (p. 178) A spokesperson who delivers an advertising message and/or demonstrates a product or service is known as a(n): A. direct source B. indirect source C. message shaper D. source mirage E. source echo
13. (p. 178) Marketers try to select spokespeople whose traits will maximize their message influence. The three categories of source attributes that should be considered during the selection process are: A. power, image, and knowledge B. credibility, attractiveness, and power C. knowledge, fee, and recognizability D. consistency, credibility, and continuity E. credibility, recognizability, and individuality
6-4
Chapter 06 - Source, Message, and Channel Factors
14. (p. 178) Marketers who try to select spokespeople whose traits will maximize their message influence are concerned about their credibility. The two important dimensions associated with credibility are: A. consistency and image B. image and trustworthiness C. recognizability and expertise D. expertise and trustworthiness E. image and expertise
15. (p. 179) Information from a credible source influences beliefs, opinions, attitudes, and/or behaviors through a process known as: A. identification B. compliance C. internalization D. conformity E. yielding
16. (p. 178) Expertise and trustworthiness are very important when focusing on source _____, one of the categories of source attributes. A. power B. attractiveness C. credibility D. identification E. image
17. (p. 178) A pharmaceutical company wants to promote a new over-the-counter allergy inhaler. The company has hired as its spokesperson an actor who has played a physician for several years on a popular soap opera. The first line of the commercial is, "Hi. I play a doctor on television." For people who are unfamiliar with this actor, the message source lacks _____, one of the source attribute categories. A. credibility B. power C. positive image D. attractiveness E. charisma
6-5
Chapter 06 - Source, Message, and Channel Factors
18. (p. 179) A study by Roobina Ohanian of consumers' perceptions of celebrity endorsers found that the characteristic which influenced consumers' intentions to purchase a product endorsed by a celebrity was perceived: A. expertise B. attractiveness C. trustworthiness D. similarity E. likability
19. (p. 179) A marketer of supercomputers would recruit individuals with backgrounds in computer science and engineering to work as salespeople in order to ensure its sales force has high levels of: A. expertise B. trustworthiness C. attractiveness D. power E. yielding
20. (p. 179) One way a supermarket can make its ads seem more trustworthy is to: A. show customers talking about the supermarket on hidden cameras B. hire attractive actors and actresses who look like people wished they looked C. use cartoon characters in humorous shopping experiences D. use loud music or an unsettling color combination E. do none of the above
21. (p. 180) Many American celebrities endorse products and serve as advertising spokespersons in foreign countries such as Japan because: A. they receive intrinsic pay for their endorsements B. they cannot get any jobs doing endorsements in the U.S. C. they want to protect their image in the U.S. and thus do not want to appear in commercials in this country D. their images match up better with foreign companies than U.S. firms E. their popularity is tied to closely to a specific movie or television role See Global Perspective 6-1.
6-6
Chapter 06 - Source, Message, and Channel Factors
22. (p. 180) Which of the following statements describes a reason why American celebrities such as Brad Pitt, Meg Ryan, and Harrison Ford are used to promote products in Japan: A. Few Japanese identify with the Western life style. B. Japanese commercials emphasize substance rather than style and focus on the intellect. C. Japanese commercials are much longer than ads in other countries so celebrities are needed to hold viewers' attention. D. Japanese commercials average only 15 seconds, and popular Western celebrities help capture viewers' attention. E. Western celebrities are not willing to endorse products in Japan. See Global Perspective 6-1.
23. (p. 181) The use of corporate leaders as spokespersons for a company improves the message source's: A. expertise and attractiveness B. power and compliance C. attractiveness, power, and expertise D. compliance, contiguity, and image E. credibility and image
24. (p. 181) The owner of the Shane Company, a jewelry retail chain, is the voiceover on all of his stores' commercials. He explains how his company differs from other chain stores and gives advice on buying jewelry. Because he is a recognized as a professional jewelry expert, his appearance in his company's ads can enhance the ads' source: A. credibility B. attractiveness C. power D. recognizability E. likability
6-7
Chapter 06 - Source, Message, and Channel Factors
25. (p. 181) Which of the following statements about the use of corporate leaders as advertising spokespersons is true? 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 major Fortune 500 type companies use corporate leaders as spokespersons. C. The use of corporate leaders as spokespersons can create problems if the firm's image becomes too closely tied to this individual. D. Corporate spokespersons are ineffective for consumer products. E. Corporate spokespersons improve the message source image but have no effect on its trustworthiness.
26. (p. 181) Which of the following statements describes a potential problem associated with using a chief executive officer (CEO) as a company spokesperson? A. CEOs usually do not have any expertise about the company or its products. B. A company's image may be tied too closely to a popular product or brand name. C. Consumers may question their credibility since they have so much at stake in the company. D. Consumers may pay too much attention to the product or advertising message and ignore the CEO. E. All of the above statements describe potential problems associated with using a CEO as a company spokesperson.
27. (p. 182) Which of the following statements about source credibility is true? A. High credibility sources are always more effective than low credibility sources. B. The use of a low credibility source is more effective when the audience has an unfavorable initial opinion or attitude on the issue. C. The persuasiveness of a low credibility source may decline over time due to the sleeper effect phenomenon. D. A low or moderately credible source may be more effective than a high credibility source when the receiver has a favorable initial attitude or opinion. E. None of the above statements about source credibility is true.
6-8
Chapter 06 - Source, Message, and Channel Factors
28. (p. 182) When may a high credibility source be less effective than a moderately credible source? A. when a receiver has an unfavorable initial attitude or position on the issue B. when a receiver has a favorable initial attitude or position on the issue C. when the source is arguing for a position that is in line with his or her own best interest D. when the high credibility source is a celebrity E. never; high credibility sources are always more effective than low credibility sources
29. (p. 182) The notion that a low credibility source may be just as effective as a high credibility source with the passing of time is known as the: A. sleeper effect B. time/place consequence C. identification outcome D. decay effect E. mirage effect
30. (p. 182) According to the sleeper effect phenomenon,: A. the impact of persuasive messages diminishes over time B. people retain advertising messages when they see them right before going to bed and rehearse them in their sleep C. the impact of persuasive messages from low-credibility sources can increase over time since the message content becomes disassociated from the source D. the impact of persuasive messages from low-credibility sources decreases over time since people forget the content of the message E. people instinctively disassociate low-credibility sources from messages when they are paying less than full attention to the message
31. (p. 182) The source characteristic of attractiveness encompasses: A. power, expertise, and recognizability B. similarity, likeability, and familiarity C. comfort, recognizability, and beauty D. beauty, familiarity, and recognizability E. expertise, familiarity, and comfort
6-9
Chapter 06 - Source, Message, and Channel Factors
32. (p. 183) _____ is defined as an attraction for a source based on a resemblance between the source and receiver. A. Likability B. Familiarity C. Similarity D. Expertise E. Power
33. (p. 183) _____ is defined as affection for a source as a result of the source's physical appearance, behavior, or other physical characteristics. A. Expertise B. Power C. Compliance D. Familiarity E. Likeability
34. (p. 183) Source attractiveness leads to persuasion through a process of: A. internalization B. identification C. compliance D. repositioning E. comprehension
35. (p. 183) The use of celebrities in commercials is generally based on the source characteristics of _____ and represents an attempt to induce persuasion through the ______ process. A. expertise; yielding B. expertise; identification C. power; identification D. attractiveness; identification E. attractiveness; internalization
6-10
Chapter 06 - Source, Message, and Channel Factors
36. (p. 183) Marketers can try to capitalize on source similarity by hiring: A. a beautiful model to appear in an ad B. a well known athlete to endorse a product in a commercial 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 pretend they are ordinary consumers
37. (p. 183) Studies have shown that customers are more likely to be influenced by a salesperson who is: A. high in power B. very similar to them C. low in credibility D. low in expertise E. unique in appearance and ability
38. (p. 183) A commercial for a floor-cleaner shows a young mother having to clean her kitchen floor after feeding her toddler. This _____ commercial is effective in part because it utilizes high source similarity. A. comparative B. refutational C. slice-of-life D. spokesperson-oriented E. power-based
39. (p. 183) A slice-of-life commercial that shows an average head of household having great difficulty filing his federal income tax is designed to utilize which source characteristic? A. power B. compliance C. expertise D. similarity E. attractiveness
6-11
Chapter 06 - Source, Message, and Channel Factors
40. (p. 183) Which of the following statements describes a good reason for using celebrities in ads and having them endorse a company's product or service? A. Celebrities cannot draw attention to advertising messages in a cluttered media environment. B. The respect, popularity or admiration a celebrity enjoys may carry over to the product she or he endorses. C. Celebrities may be unable to enhance the target audience's perceptions of the products' image or performance. D. Consumers may focus attention on the celebrity and not attend to the product and advertising message. E. The celebrity may be overexposed and not have the recognizability that is desired.
41. (p. 184) Which source characteristic is likely to suffer when a celebrity endorses too many products and is seen too often by consumers? A. expertise B. trustworthiness C. power D. compliance E. internalization
42. (p. 184) Which of the following statements about celebrity endorsers is true? A. Consumers who are very knowledgeable about a product or service tend to be most persuaded by celebrity endorsers. B. The teenage market is generally not receptive to celebrity endorsers. C. An individual who has strong feelings about a product will be less likely to be influenced by a celebrity endorser than someone who has a neutral attitude about the same product. D. Recent studies suggest celebrity endorsements are becoming increasingly more important in purchase decisions. E. All of the above statements about celebrity endorsers are true.
6-12
Chapter 06 - Source, Message, and Channel Factors
43. (p. 184) Which of the following statements about celebrity endorsements is true? A. Consumers who are particularly knowledgeable about a product are less likely to be influenced by celebrity endorsements than consumers who have little or no product knowledge. B. College-aged consumers are not influenced as significantly by celebrity endorsements as their parents are. C. Teenage consumers respond best to ad with celebrity endorser, and the use of such endorsements is increasing rapidly. D. Parodies of celebrity endorsers are completely ineffective with all target audiences. E. All of the above statements about celebrity endorsements are true.
44. (p. 185) Which of the following is the most important endorser trait to older and younger adults? A. plays a sport I follow B. doesn't use drugs C. is religious D. has been playing the sport for a long time E. none of the above is important as an endorser trait
45. (p. 186) Because of the _____ model, marketers may experience negative publicity if their product endorser is accused of immoral behavior. A. celebrity expertise B. meaning transfer C. celebrity popularity D. endorsement shift E. consumer-celebrity merging
46. (p. 186) Sachin Tendulkar, India's top cricketer, was paid $4.14 million over three years to promote motorbikes made by TVS, an Indian manufacturer. TVS hoped to use _____ to build brand credibility for its motorbikes. A. celebrity expertise B. meaning transfer C. celebrity popularity D. endorsement shift E. consumer-celebrity merging
6-13
Chapter 06 - Source, Message, and Channel Factors
47. (p. 186) Using the meaning transfer model of the celebrity endorsement process, celebrities draw their meanings from: A. the products they endorse B. their popularity among consumers C. their physical appearance D. the roles they assume in their careers and the objects, persons and contexts these roles bring them into contact with E. the commercial development process and media selection
48. (p. 186) Which of the following is the best example of a celebrity endorser enhancing consumers' perceptions of the performance capabilities of a product? A. professional golfer Arnold Palmer endorsing Pennzoil motor oil B. former boxer George Foreman endorsing Meineke automobile repair service C. actress Catherine Zeta-Jones endorsing a mobile phone service D. model Cindy Crawford endorsing Revlon cosmetics E. racecar driver Ward Burton endorsing Ferris brand lawn mowers
49. (p. 186) Ferris brand riding lawn mowers uses NASCAR driver Ward Burton as its advertising spokesperson primarily because: A. he is a well-known and talented racecar driver B. of the high level of trust consumers have in him C. extensive research showed he would be the best spokesperson for Ferris lawn mowers D. a NASCAR driver would have a thorough understanding and appreciation of top-notch engine performance as well as high expectations for any product he drives E. he has limited appeal and recognition
50. (p. 186) McCracken developed a model relating to the use of celebrity endorsers. Which of the following statements represents a major implication of that model? A. Companies should choose celebrities with stopping power as endorsers. B. Companies should use physically attractive celebrities to endorse their products. C. Companies should use as endorsers celebrities who project the image or meaning they want for their products. D. The image of a celebrity comes primarily from the products she or he endorses. E. Decisions regarding the choice of a celebrity to use as an endorser can only be made on the basis of judgment or intuition.
6-14
Chapter 06 - Source, Message, and Channel Factors
51. (p. 186-187) Which of the following statements does NOT describe an implication of McCracken's meaning transfer model for companies selecting a celebrity endorser? A. The company must first decide on the image or symbolic meaning that it wants to project to the target audience for its company and/or brand. B. Companies must determine which celebrity best represents the image they want to project for their company and/or brand. C. Advertising campaigns must be designed that can effectively transfer the image of the celebrity to the company and/or brand. D. The popularity of a celebrity is a critical factor in choosing a celebrity endorser. E. Marketing research may be needed to determine consumers' perceptions of the meaning of celebrities who may be used to endorse a company and/or brand.
52. (p. 188) Which of the following statements describes one of the findings of research on the use of decorative or physically attractive models? A. They do not result in favorable evaluations of an advertisement. B. Their effectiveness is limited solely to cosmetics and fashion products. C. The relevancy of the model to the product being advertised is not important. D. A decorative model can facilitate recognition of the ad but not enhance readership or recall of the message. E. All of the above statements describe research findings on the use of decorative or physically attractive models.
53. (p. 189) For which of the following products would a marketer be likely to find the use of a physically attractive model to be most effective? A. cattle feed B. bricks C. azalea bushes D. biscuit mix E. lipstick
54. (p. 190) Which of the following statements about source power is true? A. Source power can never be used in nonpersonal selling situations. B. Source power is most effective in nonpersonal selling situations. C. Persuasion induced through compliance is always long-term. D. Perceived scrutiny is an important part of source power. E. All of the above statements about source power are true.
6-15
Chapter 06 - Source, Message, and Channel Factors
55. (p. 190) If viewers of the commercial perceived Barnes as being able to mete out punishment if the census forms were not filled out, then Barnes as a message source can be said to have: A. perceived control B. control persuasion C. perceived scrutiny D. expertise E. perceived concern
56. (p. 190) If viewers of the commercial perceived Barnes as being sincerely interested in whether every citizen filled out a census form, then Barnes as a message source could be said to have: A. perceived control B. control persuasion C. perceived scrutiny D. expertise E. perceived concern
57. (p. 190) Barnes as the message source is using which source attribute to persuade Georgians to fill out their census form? A. power B. compliance C. expertise D. similarity E. attractiveness
58. (p. 190) If citizens of Georgia filled out the census form because they were persuaded he had the power to negatively impact their quality of life, Barnes would have influence through: A. internalization B. compliance C. identification D. attractiveness E. referent power
6-16
Chapter 06 - Source, Message, and Channel Factors
59. (p. 190) The process by which a source high in power can influence behavior is known as: A. internalization B. identification C. compliance D. retention E. scrutiny
60. (p. 190) When a source is able to administer rewards and punishments to the receiver, influence occurs through: A. compliance B. identification C. internalization D. attractiveness E. expertise
61. (p. 190) Marketing Evaluations Inc.'s Q rating measures: A. the popularity of television shows B. the size of television viewing audiences C. the percentage of people who recognize a celebrity and rate him or her as one of their favorite performers D. the percentage of people who see celebrities as trendsetters E. the Feedback from advertisements
62. (p. 190) Factors that marketers consider in choosing celebrity endorsers include: A. their Q rating B. their appeal among various demographic groups C. their physical attractiveness D. their visibility and personality E. all of the above
6-17
Chapter 06 - Source, Message, and Channel Factors
63. (p. 190) In which of the following situations would source power be most influential? A. a television commercial for a fast-food restaurant B. a radio ad advising you to watch the news on your local CBS affiliate C. a mortician advising a bereaved family on what casket to buy D. a print ad in The Wall Street Journal E. a four-page magazine advertisement for an electric-powered car
64. (p. 190) Which of the following source characteristics would be LEAST likely used in advertising for a new brand of deodorant? A. similarity B. expertise C. trustworthiness D. attractiveness E. power
65. (p. 191) Message sidedness, order of presentation, and refutation are all related to which communication variable? A. channel B. source C. message structure D. receiver E. emotional appeals
66. (p. 191) Presenting the strongest arguments at the beginning of the commercial message assumes a _____ is operating. A. primacy effect B. recency effect C. sleeper effect D. credibility effect E. compliance hierarchy
6-18
Chapter 06 - Source, Message, and Channel Factors
67. (p. 191) A commercial that begins, "Is it just forgetfulness or Alzheimer's disease?" and then lists the warning signs of Alzheimer's is 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 used to treat mild and moderate cases of Alzheimer's. The advertising is using a _____ to arouse interest. A. primacy effect B. recency effect C. sleeper effect D. credibility effect E. compliance hierarchy
68. (p. 191) A commercial that places the strongest points at the end of the message assumes a _____, whereby the last arguments presented are the most persuasive. A. recency effect B. primacy effect C. sleeper effect D. credibility effect E. compliance hierarchy
69. (p. 191) The commercial for Burpee gardening supplies begins with a discussion of how beautiful and enjoyable gardens can be. It ends with the directive to visit the company at Burpee.com and let Burpee's experience get you off to a good start. By placing the strongest point at the end of the ad, Burpee is hoping to benefit from the: A. primacy effect B. recency effect C. sleeper effect D. credibility effect E. compliance hierarchy
6-19
Chapter 06 - Source, Message, and Channel Factors
70. (p. 191) The commercial to convince people to stop smoking uses three teens bungee jumping off a bridge. When they reach the ground, each grabs a can, opens it, and takes a drink. As the third person takes a drink, the can explodes and kills him. The final screen reads, "No other product but tobacco kills every third consumer." By placing the strongest point in the ad at the end, the ad's source is hoping its message benefits from the: A. primacy effect B. recency effect C. sleeper effect D. credibility effect E. compliance hierarchy
71. (p. 191) The top of the ad in a magazine targeted to women reads, "Synvise can be a great approach to osteoarthritis knee pain, says LPGA golfer Nancy Lopez and Synvise user." The rest of the ad copy explains how the prescription medication works and describes possible side-effects. The ad's source is hoping its message benefits from the: A. primacy effect B. recency effect C. sleeper effect D. credibility effect E. compliance hierarchy
72. (p. 192) A marketer may not want to put weak arguments at the beginning of an advertising message because this action may: A. reduce the level of counterarguing B. increase retention of the message C. lead to a high level of counterarguing D. increase the level of interest in the message E. deter recipients from drawing their own conclusions
73. (p. 193) Marketers should draw explicit conclusions in their advertising messages when: A. the audience is highly educated B. the product or service is highly personal or ego involving C. immediate action is an objective, and the audience does not have the time or opportunity to draw a conclusion D. the marketer wants to increase the audiences' involvement in the message E. any or all of the above conditions occur
6-20
Chapter 06 - Source, Message, and Channel Factors
74. (p. 193) The headline for the Dodge Caravan ad reads, "What idiot coined the phrase 'stay-athome-mom'?" The only other information in the ad is directions on where to call to find the nearest Dodge dealer. This ad is: A. an example of a fear appeal B. designed to let the target audience draw its own conclusions C. an example of a refutational appeal D. designed to express a two-sided message E. effective no matter what the context of the ad medium
75. (p. 193) A marketer may NOT want to use a message that draws an explicit conclusion for a target audience if: A. the audience is highly involved with the topic B. the audience is highly educated C. the message is low in complexity D. the audience will be exposed to the message numerous times E. any or all of the above are true
76. (p. 193) What type of message structure should a marketer use if immediate behavior is not an objective of the advertiser and repeated exposure will give the target audience opportunity to draw their own conclusions? A. an open-ended message B. a close-ended message C. a primacy message D. a refutational appeal E. a fear appeal
77. (p. 193) _____ are commercials that mention only positive product attributes or benefits. A. One-sided messages B. Two-sided messages C. Refutational appeals D. Conclusive messages E. Slice-of-life commercials
6-21
Chapter 06 - Source, Message, and Channel Factors
78. (p. 193) The manufacturer of Smuckers jams and jellies used the following slogan for years: "With a name like Smuckers, it has to be good." The ad implies the brand name is poorly chosen and is a negative attribute that is overcome by the high quality of the product. This is an example of a(n): A. one-sided message B. two-sided message C. confrontational appeal D. conclusive message E. slice-of-life commercial
79. (p. 193) Most advertisers refuse to use two-sided messages because they: A. are concerned about the impact of a two-sided message on source credibility B. are concerned over presenting only the negative attributes of their brands C. are concerned over the negative effects of acknowledging a weakness in their brand D. have been proven ineffective by a number of different advertising research studies E. cause consumers to expect more than any product can offer
80. (p. 193) When a target audience already holds a favorable opinion on a topic, or issue a(n) _____ is most effective: A. one-sided message B. two-sided message C. nonverbal appeal D. open-ended message E. fear appeal
81. (p. 194) When marketers wants to build attitudes that are resistant to attacks or criticism of their product by a competitor, they can use a(n): A. one-sided message B. nonverbal message C. emotional appeal D. refutational appeal E. slice-of-life appeal
6-22
Chapter 06 - Source, Message, and Channel Factors
82. (p. 194) You would expect an ad for organic food in a magazine entitled Natural Health: The Guide to True Wellness to have a(n): A. one-sided message B. nonverbal message C. emotional appeal D. refutational appeal E. slice-of-life appeal
83. (p. 194) A radio commercial begins with the following line: "Our competitors think we can't sell furniture for so little money, but we want our customers to know that we work hard to bring you value for your dollar, and our prices are for real." The furniture store is using a(n) _____ appeal. A. one-sided B. functional C. emotional D. refutational E. slice-of-life
84. (p. 194) The Potato Board ran ads recognizing the perception held by many people that potatoes are fattening but then presenting information countering this belief. This is an example of: A. conclusion drawing B. a fear appeal C. a refutational appeal D. a humorous appeal E. an affective conclusion
85. (p. 194) The campaign centered around the theme, "Pork, the Other White Meat" is designed to show consumers that pork is not all fat as some people think. These ads trying to convince consumers pork is as lean as chicken use: A. conclusion drawing B. a fear appeal C. a refutational appeal D. a humorous appeal E. an affective conclusion
6-23
Chapter 06 - Source, Message, and Channel Factors
86. (p. 194) When a communicator presents information on both sides of an issue and offers arguments to counter an opposing viewpoint, a(n) _____ message appeal is being used. A. confrontational B. recency C. nonverbal D. refutational E. one-sided
87. (p. 194) Refutational appeals, where an communicator presents both sides of an issue then refutes the opposing viewpoint, may be effective because refutational appeals: A. present only arguments favoring the advertiser's position B. put the strongest arguments at the end of the message C. inoculate the target audience against a competitor's counterclaim D. increase the level of counterarguing E. are easily understood
88. (p. 194) The effectiveness of an advertisement for Purina Kitten Chow is influenced by: A. the copy that explains why kittens need a special diet B. the picture of an adorable kitten C. a headline that says, "Kittens need Kitten Chow." D. a picture of a bag of Kitten Chow E. all of the above
89. (p. 194) An ad picturing a young boy using a toilet has the headline, "Don't expect Windex Wipes to do a Clorox Wipes job," and the copy explains that Clorox is a disinfectant and Windex is not. In this ad, the: A. visual element reinforces the copy B. advertiser is using a poster appeal C. visual element is superfluous D. source relied on a recency effect E. mass marketing strategy is clearly defined
6-24
Chapter 06 - Source, Message, and Channel Factors
90. (p. 195) The visual portion of an advertisement may reduce its persuasiveness because: A. the picture may not attract attention to the product B. the processing stimulated by the picture may be less controlled and less favorable than the processing stimulated by words C. pictures are always low in imagery value D. pictures may have a negative effect on recall E. verbal is always more effective than nonverbal communications
91. (p. 195) An advertiser may design an ad in which the visual portion is incongruent with or contradicts the verbal information as a strategy to: A. gain consumers' attention B. confuse consumers C. distract consumers D. get consumers to engage in more simplistic processing E. distract consumers from the negative aspects of the product
92. (p. 195) Comparative advertising messages are: A. illegal in the United States B. used primarily by industry leaders C. used more by brands with a smaller market share D. never used by market leaders E. primarily nonverbal in nature
93. (p. 195) Which of the following situations would be most conducive to the use of a comparative advertising message? A. A company is a market leader with high market share. B. A company is a market leader and is concerned about a new, small company entering the market. C. A company wants to promote its brand to loyal users of a major competitor. D. A company with a new brand wants to position that brand against established brands and thus enter the customers' evoked set. E. All of the above are conducive to the use of comparative advertising.
6-25
Chapter 06 - Source, Message, and Channel Factors
94. (p. 195) _____ is advertising that either directly or indirectly names competitors and compares the brands on one or more attributes. A. One-sided advertising B. Two-sided advertising C. Comparative advertising D. Verbal appeals E. Refutation
95. (p. 195) Which of the following statements presents a reason for using comparative advertising? A. Comparative advertising prevents a new market entrant from positioning itself against established brands. B. Comparative advertising is a way of helping position a brand in the evoked or choice set of alternatives that consumers consider. C. Comparative advertising may be perceived as less credible than non-comparative ads. D. Comparative advertising does not work for market leaders. E. Comparative advertising is generally permitted by the Federal Trade Commission.
96. (p. 195) The ad in the parenting magazine stated that Lysol Basin Tub & Tile Cleaner cleans soap scum better than either Scrubbing Bubbles marketed by SC Johnson & Son, Inc. or Tilex marketed by the Clorox Company. Therefore, this ad is an example of: A. confrontational advertising B. two-sided advertising C. comparative advertising D. a recency appeal E. refutational advertising
97. (p. 195) "Try new OHM by Olay Body Wash. "It's better for your skin than Bath & Body Works, Origins, Aveda, or Clinique." This headline from an Olay Body Wash ad in Ladies Home Journal is an example of: A. confrontational advertising B. two-sided advertising C. comparative advertising D. a recency appeal E. refutational advertising
6-26
Chapter 06 - Source, Message, and Channel Factors
98. (p. 195) A magazine ad picturing a young boy using a toilet has the headline, "Don't expect Windex Wipes to do a Clorox Wipes job," and the copy explains that Clorox is a disinfectant and Windex is not. This ad is an example of: A. confrontational advertising B. two-sided advertising C. comparative advertising D. a verbal appeal E. refutational advertising
99. (p. 195) An ad for Tums antacid shows a patron at a diner asking for Tums to alleviate his heartburn. The waitress points to a bowl that is filled with a jumble of Maalox, Rolaids, Tums and other antacids. The waitress says that all antacids are the same, and the patron then explains her to that Tums is the only antacid that has calcium. Tums is using: A. one-sided advertising B. two-sided advertising C. comparative advertising D. verbal appeals E. refutation
100. (p. 197) Advertising appeals that express or imply some type of physical or emotional danger and try to arouse consumers to take steps to remove the threat are known as _____ appeals. A. comparative B. irrational C. humor D. fear E. nonverbal
6-27
Chapter 06 - Source, Message, and Channel Factors
101. (p. 197) A dental hygienist in an ad for toothpaste is quoted as saying, "If patients could see what I see, they'd all use Colgate Total." Since everyone who goes to a dentist regularly is worried about plaque, gingivitis, and cavities, and her statement implies other brands do a poorer job than Colgate Total at preventing dental problems, Colgate is using a(n) _____ appeal. A. comparative B. irrational C. humor D. fear E. nonverbal
102. (p. 197) An ad campaign to convince people to stop smoking uses three teens bungee jumping off a bridge. When they reach the ground, each grabs a soda can, opens it, and takes a drink. As the third person takes a drink, the can explodes and kills him. The final screen reads, "No other product but tobacco kills every third consumer." This ad is using a(n) _____ appeal. A. comparative B. irrational C. leveling D. fear E. nonverbal
103. (p. 197-198) The Dial soap ad campaign that used the slogan, "Aren't you glad you use Dial? Don't you wish everybody did?" is a good example of: A. a low fear appeal B. an irrational appeal C. comparative advertising D. a refutational appeal E. source power
6-28
Chapter 06 - Source, Message, and Channel Factors
104. (p. 197-198) Before deciding to use a fear-appeal message strategy, an advertiser should consider what level of fear to use in the message because: A. fear appeals have both facilitating and inhibiting effects B. defensive reactions such as tuning out a message or perceiving it selectively may occur if the level of fear is high C. the message recipient may not be motivated to act to resolve the threat if the level of fear is too low D. a low to medium level of fear can attract attention and interest and may motivate the receiver to act to resolve the threat E. all of the above are true
105. (p. 199) A potential problem of using advertising with a strong fear appeal message to try to discourage drug abuse by teenagers is that: A. there is no appropriate medium B. fear appeals never work with teenagers C. a message with a high level of fear may have inhibiting effects and be tuned out by teenagers D. the high fear message may not work among teenagers who are low in self-confidence and want to avoid the issue E. parents may be offended if the message is perceived as too frightening
106. (p. 199) Fear appeal ads promoting _____ would stress negative physical consequences or outcomes while appeals for _____ would stress the threat of social disapproval or rejection. A. anti-smoking; seat belts B. seat belts; deodorant C. deodorant soap; mouthwash D. a political candidate; a constitutional amendment E. acne medicine; life insurance
6-29
Chapter 06 - Source, Message, and Channel Factors
107. (p. 199) The _____ is another approach to explain the curvilinear nature of fear appeals. The model suggests both the cognitive appraisal of information in a fear appeal message and the emotional response mediate persuasion. A. protection motivation model B. non-monotonic model C. cognitive response model D. response-stimuli hierarchy E. persuasive delimiter model
108. (p. 199) The protection motivation model suggests that ads using fear appeals should provide the target audience with information about: A. the severity of the threat B. the probability of the threat occurring C. the effectiveness of a coping response D. the ease with which a coping response can be implemented E. all of the above
109. (p. 199) An ad for Snorestop Extinguisher, a nose spray for eliminating snoring has the headline, "Wife shoots husband and rests in peace." This ad uses _____ to attract attention and convey a key selling point. A. a two-sided message approach B. a humor appeal C. comparative advertising D. a refutational appeal E. a primacy appeal
110. (p. 199) Humorous messages may be effective because they enhance _____ and may reduce _____. A. counterarguing; support arguing B. counterarguing; attention C. attention; support arguing D. attention; counterarguing E. counterarguing; distraction
6-30
Chapter 06 - Source, Message, and Channel Factors
111. (p. 200) The tendency of a commercial to lose its effectiveness when it is seen repeatedly by viewers is known as: A. repetition B. the qualitative effect C. wearout D. commercial reactance E. frequency overexposure
112. (p. 200) Which of the following statements about the use of ad campaigns based on humorous commercials is true? A. Humorous commercials never become boring. B. Wearout from humorous commercials can be avoided by using multiple message executions in a campaign. C. Research evidence proves humor does not wear out as fast as other types of advertising appeals. D. All well-designed commercial are immune to commercial wearout. E. All of the above statements about the use of ad campaigns based on humorous commercials are true.
113. (p. 200) Some marketers avoid the use of humor in their advertising because: A. humor can draw attention away from the product B. humor has no shock value and does not draw consumers' attention to the ad C. effective humor is no challenge for creatives to produce D. humor can put the consumer in a good mood and increase liking of the ad E. humor compels the receiver to engage in counterarguing
114. (p. 200) Humor is more commonly used and is typically more effective with _____ products. A. low-involvement, thinking B. high-involvement, thinking C. low-involvement, feeling D. high-involvement, feeling
6-31
Chapter 06 - Source, Message, and Channel Factors
115. (p. 200) Philips Lighting is concerned over whether its humorous advertising campaign will be effective in increasing its level of brand awareness among consumers. In terms of the persuasion matrix the independent and dependent variables of interest here are: A. message/behavior B. source/attention C. message/retention D. source/presentation E. receiver/behavior
116. (p. 200) NYNEX owned a substantial portion of the yellow pages advertising business in the New York/New England region, which it needed to protect following the breakup of AT&T. To protect itself from competitors, NYNEX ran a series of ads. One was a picture of a blue rabbit and headlined, "Hair Tinting." Another showed Barbie and Ken dressed in doctor costumes and headlined "Plastic Surgeons." At the bottom of each ad was the tag line, "If it's out there, it's in NYNEX yellow pages." This approach to yellow pages listings was successful because it had a _____ appeal. A. fear B. two-sided C. refutational D. comparative E. humorous
117. (p. 200) Top ad agency researchers and creative directors generally believe: A. humor aids awareness B. humor may aid name and simple copy registration C. radio and television are the best media for executing humor D. humor should not be used for advertising sensitive products E. all of the above statements about the use of humor in advertising are true See Figure 6-7.
6-32
Chapter 06 - Source, Message, and Channel Factors
118. (p. 201) Which of the following statements describes a reason why marketers often use personal channels of communication? A. Information received from personal influence channels is generally more persuasive than information received from the mass media. B. Personal channels of communication offer more flexibility than nonpersonal channels. C. Personal channels of communication can be easily adapted to fit the needs of the receiver. D. Personal channels of communication can respond to objections raised by consumers. E. All of the above.
119. (p. 201) For which of the following media is the processing of information in advertisements likely to be externally paced? A. television and radio B. magazines, billboards, and radio C. magazines and newspapers D. transit advertising, billboards, and all forms of outdoor advertising E. magazines, newspapers, and direct mail
120. (p. 201) When an advertiser wants to present a detailed message with a large amount of information, which medium should be used? A. radio B. television C. billboards D. magazines E. transit signs
121. (p. 201) Information from ads presented in the broadcast media is: A. externally paced B. self-paced C. visual only D. controlled by the message sender E. qualitative media
6-33
Chapter 06 - Source, Message, and Channel Factors
122. (p. 201) A direct mail piece advertising a collection of home maintenance books would have its information: A. externally paced B. self-paced C. visual only D. controlled by the message recipient E. qualitative media
123. (p. 201) The attractive editorial and advertising environment created by a publication such as Architectural Digest has a(n) _____ on advertising messages contained within its slick pages. A. externally paced impact B. positive quantitative media effect C. cluttered effect D. shaping effect E. positive qualitative media effect
124. (p. 201) A magazine entitled Natural Health: The Guide to True Wellness would have a strong _____ on an ad for organic produce. A. externally paced impact B. positive quantitative media effect C. cluttered effect D. shaping effect E. positive qualitative media effect
125. (p. 201) For which of the following products would the qualitative environment of the media vehicle be most important? A. laundry detergent B. an over-the-counter allergy medication C. a small truck D. diamonds E. a mouthwash
6-34
Chapter 06 - Source, Message, and Channel Factors
126. (p. 201) Advertisers who want to advertise on Emmy-winning television shows are looking to have the positive impressions of the show transfer to their products. This transference is called a: A. self-paced impact B. positive quantitative media effect C. cluttered effect D. shaping effect E. positive qualitative media effect
127. (p. 201) A _____ is the influence the medium on has on a message. A. qualitative media effect B. quantitative media effect C. media mix effect D. promotional mix influence E. self-paced effect
128. (p. 202) Companies are willing to pay premium rates to advertise on special events such as the Olympic Games or 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 affective appeals that are minimized by the cognitive appeal of the commercials
129. (p. 202) An advertiser whose message is placed in the middle of five consecutive commercials during a program break is facing a problem known as: A. clutter B. media flooding C. media bombardment D. flighting E. information overload
6-35
Chapter 06 - Source, Message, and Channel Factors
130. (p. 202) All nonprogram material that appears in a broadcast environment including commercials, public service announcements, and promotions for upcoming programs contribute to the _____ problem: A. message comparison phenomenon B. comparative advertising C. clutter D. media reduction E. quantitative media effect
131. (p. 202) The average commercial on Japanese television is 15-seconds long. Assuming their commercial breaks are as long as the ones in the United States, there is problem with the _____ in Japanese television advertising. A. message comparison phenomenon B. comparative advertising C. clutter D. media reduction E. quantitative media effect
132. (p. 202) Which of the following factors probably contributes the most to the "clutter" problem in television advertising? A. the use of celebrities in ads B. the use of emotional appeals C. the trend toward shorter commercials D. the increase in zapping or channel changing via remote control E. all of the above
133. (p. 202) Factors contributing to the problem of commercial clutter during prime time viewing hours include: A. the tendency of the networks to add more commercials to hit shows because they can charge higher rates B. advertisers and agencies pressuring networks to put their commercials in top-rated shows which attract the largest audiences C. the airing of commercials for directly competing products during the same program D. the development and airing of 15-second commercials E. all of the above
6-36
Chapter 07 - Establishing Objectives and Budgeting for the Promotional Program
Chapter 07 Establishing Objectives and Budgeting for the Promotional Program
Multiple Choice Questions 1. (p. 207-208) The "Starbucks Turns to National Advertising" opening vignette in chapter 7 reports on one of the prime issues facing Starabucks is the use of national advertising: A. may create social concerns about their environmental policies B. could hurt employee morale C. does not provide qualitative benchmark measures D. could reduce advertising selectivity E. may be inconsistent with its brand image See opening vignette.
2. (p. 209) The purpose of setting specific advertising goals and objectives is to: A. provide a standard against which performance can be measured B. put constraints on the creative department C. have a method of determining when to delete products from the product line D. forecast the market share level that can be attained by good advertising E. protect all investors and debt holders
3. (p. 209) To many marketing managers, the only goal of their company's advertising and promotional program is to: A. position the company and its brands B. create a positive corporate image C. generate sales D. create memorable advertising E. create awareness of the company
7-1
Chapter 07 - Establishing Objectives and Budgeting for the Promotional Program
4. (p. 209-210) Which of the following is NOT given as a realistic reason for setting specific objectives for an integrated marketing communications program? A. Specific objectives serve as communication devices and facilitate coordination of various groups working on the campaign. B. Specific objectives serve as a guide for planning and decision making. C. Specific objectives provide a benchmark against which success or failure of a campaign can be measured. D. Specific objectives help specify a method and criteria for assessing how well the promotional program is working. E. Specific objectives provide specific ideas on how to develop more creative and effective advertising.
5. (p. 210) The more specific the firm's advertising objectives, the: A. easier it becomes to measure advertising effectiveness B. more difficult it is for competitor's advertising to be effective C. easier it is to measure the advertising-sales response function D. smaller the funding needed to meet advertising goals E. more difficult it is for a competitor to use competitive parity budgeting
6. (p. 210) Companies that develop integrated marketing communications (IMC) programs which do not contain specific objectives: A. will often have too many benchmark measures against which the success or failure of their programs can be assessed B. will never be successful C. may find it difficult to facilitate coordination of the efforts of various groups working on a promotional campaign since the various groups may not understand what goal they are working toward D. will be able to save money since they won't spend too much time worrying about what they are trying to do E. be more successful than companies that develop IMC programs with specific objectives
7-2
Chapter 07 - Establishing Objectives and Budgeting for the Promotional Program
7. (p. 210) 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 objectives C. develop creative objectives D. develop communication goals E. create a creative mission statement
8. (p. 210) Arden's task is to determine what was accomplished by his company's advertising and promotional program for a vinyl siding cleanser. You are able to tell him that: A. his task is impossible B. all he needs is sales results to determine what the program accomplished C. his task is easier if specific communications objectives were set D. all he needs is post-promotional consumer awareness levels to determine what the program accomplished E. this is the easiest task his company has ever asked him to perform if the company did not set specific objectives
9. (p. 210) _____ objectives are types of objectives that are usually stated in terms of specific, measurable outcomes such as sales volume, market share, or return on investment. A. Sales B. Marketing C. Communication D. Advertising E. Organizational
10. (p. 210) 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 communication objectives. C. Communications objectives are derived from marketing objectives. D. For a successful campaign, communications objectives can be developed before or after the development of marketing objectives. E. There is no relationship between the two.
7-3
Chapter 07 - Establishing Objectives and Budgeting for the Promotional Program
11. (p. 210) Ace computer has an objective of increasing its share of the home personal computer market by 5 percent during the upcoming year. This is an example of a(n) _____ objective. A. marketing B. organizational C. advertising D. functional E. communication
12. (p. 210) Pace Foods had a goal of expanding its business beyond its traditional Texas market base. This goal is an example of a _____ objective while the goal of establishing a position of authenticity and making Mexican food seem fun is an example of a(n) _____ objective: A. communication; marketing B. communication; positioning C. marketing; communication D. positioning; organizational E. advertising; functional
13. (p. 210) To be effective, marketing objectives need to be: A. reasonable and attainable B. erudite and challenging C. philosophical and fungible D. long-term and qualitative E. all of the above
14. (p. 211) Marketing goals defined in terms of sales, profits or market share increases are: A. situational response objectives B. usually not appropriate for promotional objectives C. integrated marketing communications objectives D. relationship marketing objectives E. internal marketing goals
7-4
Chapter 07 - Establishing Objectives and Budgeting for the Promotional Program
15. (p. 211) To develop integrated marketing communications objectives, managers need the situation analysis to provide them with information on: A. demographics and purchase motives of target markets B. the main features, advantages and benefits of the product to be promoted C. competitors' brands D. how the brand should be positioned E. all of the above
16. (p. 211) Many marketing managers approach promotion from a(n) _____ perspective and believe the objective of advertising and other promotional mix elements is to relay information about a product to customers. A. informational B. communications C. sales-oriented D. segmentation E. product development
17. (p. 211) Many marketing managers prefer sales-oriented objectives for advertising because they believe: A. the reason a company spends money on advertising and promotion is to sell its products or service B. money spent on advertising and promotion should show measurable results C. sales-oriented objectives help get everyone involved in the promotional program to think about how advertising and promotion will influence sales D. objectives should be based on the achievement of sales results E. all of the above are true
18. (p. 212) Financially oriented managers who view marketing communications as an expense rather than an investment are likely to prefer _____ objectives for advertising and other promotional areas. A. sales-oriented B. communication C. positioning D. image E. functional
7-5
Chapter 07 - Establishing Objectives and Budgeting for the Promotional Program
19. (p. 212) In addition to advertising and promotion, _____ might also influence a company's sales. A. product quality B. price C. economic factors D. distribution E. all of the above
20. (p. 212) After initially cutting prices in response to decreased demand fro cereal, Kellogg's found that sales some heavily advertised brands were increasing. The firm then increased advertising in order to: A. reduce other promotional costs B. maintain brand differentiation achieved through advertising C. coordinate production scheduling with seasonal demand variations D. meet consumers' needs for selling objectives E. all of the above
21. (p. 213) The concept of advertising expenditures producing long term as well as immediate results is known as: A. the carry-over effect B. the communication effect C. the low-involvement effect D. the halo effect E. DAGMAR
22. (p. 213) The carryover effect: A. has no impact on sales objectives B. has no effect on the relationship between advertising and sales C. encourages the use of nonspecific objectives D. is particularly apparent with mature, low-priced, and frequently purchased products E. is accurately described by all of the above
7-6
Chapter 07 - Establishing Objectives and Budgeting for the Promotional Program
23. (p. 213-214) Which of following is a likely problem for a manager who 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 unmeasurable, 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. With the correctly selected promotion variables, no external environmental variables have any significant influence on sales results.
24. (p. 213-214) Which of following is a likely problem for a manager who 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 often a long period between when advertising is run and when sales actually occur. C. Other marketing mix variables besides advertising can affect sales results. D. The marketing and competitive environment can influence sales. E. All of the above are likely problems for a manager who uses sales as a measure of advertising effectiveness.
25. (p. 214) The use of sales as an advertising objective can be difficult due to: A. how difficult it is to isolate the effects of advertising on sales B. the fact there is often a lagged effect whereby the effect of advertising on sales is not immediate C. the fact advertising objectives emphasizing sales are generally not good operational guides to decision making D. the fact they offer little guidance for those responsible for planning and developing promotional programs E. all of the above
7-7
Chapter 07 - Establishing Objectives and Budgeting for the Promotional Program
26. (p. 214) Heinz developed a sales promotion program called "All About Family." It offered a coupon good for free Halloween candy when you purchased any of five different participating Heinz brands. Cents-off coupons for the participating brands were placed in newspaper inserts. The campaign also featured a contest called the "Ultimate Family Night" sweepstakes. Heinz management most likely used _____ objectives to measure the effectiveness of this sales promotion. A. communication persuasiveness B. short-term sales C. long-term sales D. brand inquiry E. information parameters
27. (p. 214) For which of the following would an advertiser be most likely to use a sales-oriented objective? A. a direct response ad for a record album B. a commercial for a new type of electric-powered automobile C. a political announcement D. an anti-drug public service announcement E. a commercial comparing Verizon to AT&T
28. (p. 214) Direct-response advertisers generally set objectives and measure success in terms of: A. brand awareness B. brand attitudes C. purchase intentions D. sales response generated by an ad E. brand equity
29. (p. 214) Sales-oriented objectives are appropriate for: A. all Internet marketing B. retail advertising promoting a sale or special event C. products that have been introduced in a highly volatile market D. any advertising campaign aimed at maintaining brand awareness E. all of the above
7-8
Chapter 07 - Establishing Objectives and Budgeting for the Promotional Program
30. (p. 215) Which of the following statements regarding the relationship between advertising and promotion, and sales performance is true? A. In mature markets where other marketing mix variables are stable, it is impossible to determine the relationship between advertising and/or sales promotion and sales. B. The repositioning of brands is often done with a goal of improving sales or market share. C. When sales expectations are not being met, experienced managers are not very likely to consider changes in their advertising and sales promotion programs. D. Marketing and brand managers are often under pressure to show sales results and thus may take long-term perspective in evaluating advertising and promotion programs. E. All of the above statements regarding the relationship between advertising and promotion and sales performance are true.
31. (p. 215) Various response hierarchy variables such as awareness, knowledge, interest, attitudes, and intention are the basis for: A. marketing objectives B. sales-oriented objectives C. image objectives D. communications objectives E. the carry-over effects
32. (p. 217) Advocates of communication-based objectives for advertising propose using _____ as a basis for setting these objectives. A. sales B. market share C. stages of a hierarchical response model D. carry-over effects E. market behavior
33. (p. 217) Which of the following is at the top of the communication effects pyramid? A. awareness B. knowledge C. liking D. preference E. purchase/repurchase See Figure 7-3.
7-9
Chapter 07 - Establishing Objectives and Budgeting for the Promotional Program
34. (p. 217) Managers who use the communications effects pyramid to set objectives believe: 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
35. (p. 217) In 2007, Cingular acquired AT&T but renamed itself using AT&T. The choice of the name reflected consumers' awareness and recognition of an established brand. Advertising to make consumers aware of new combined firm would more than likely have _____ objectives. A. sales-oriented B. market-oriented C. product development D. communications E. product penetration
36. (p. 218) "Encouraging current drinkers of Coca-Cola to drink more of the beverage," would be an example of a(n) _____ objective. A. sales-oriented B. market-oriented C. product development D. communications E. product penetration
7-10
Chapter 07 - Establishing Objectives and Budgeting for the Promotional Program
37. (p. 217-219) Which of the following statements about communications objectives is true? A. It is easy to translate sales goals into communications objectives. B. It can be difficult 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 the promotional program. D. Marketing managers do not recognize the value of setting communications objectives. E. There are precise formulas to use when translating sales goals into specific communications objectives.
38. (p. 217-219) Which of the following statements about communications objectives is true? A. When setting objectives using the communications effect pyramid, the last step reached is trial. B. Sales goal cannot be translated into communications objectives. C. Marketing and advertising managers do not 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. All of the above statements about communications objectives are true.
39. (p. 220) DAGMAR is: A. a philosophy of advertising goal setting B. a model of consumer behavior C. a method of setting sales objectives D. the most often used method of setting objectives E. an attitude measurement device
40. (p. 220) _____ is an approach to setting advertising goals and objectives which states that communication effects are the logical basis for advertising goals and objectives against which success or failure should be measured. A. The carryover effect B. The hierarchy of effects model C. Zero based communications planning D. Inside-out communications planning E. DAGMAR
7-11
Chapter 07 - Establishing Objectives and Budgeting for the Promotional Program
41. (p. 220) In 2007, Cingular acquired AT&T but renamed itself using AT&T. The choice of the name reflected consumers' awareness and recognition of an established brand. To determine how successful it was in making consumers aware of its name change and its new positioning strategy, the firm could have used: A. zero-based communications planning B. a benchmark orientation C. DAGMAR D. the carryover effect E. the recency effect
42. (p. 221) According to DAGMAR, the basic function of advertising is to: A. create sales B. communicate C. increase market share D. generate action E. change behavior
43. (p. 221) Under the DAGMAR model, a(n) _____ can be performed by, and attributed to advertising rather than a combination of marketing factors. A. advertising hierarchical plan B. functional communication change C. communications task D. marketing task E. advertising benchmark
44. (p. 221) A stereo speaker manufacturer developed advertising objectives, which stated that the goal of the company's new ad campaign is "To communicate our ability to create an environment of total audio ambiance in the home." This statement could serve as an example of a: A. target audience delineation B. benchmark measure C. communications task D. sales objective E. short-term promotional objective
7-12
Chapter 07 - Establishing Objectives and Budgeting for the Promotional Program
45. (p. 221) According to the criteria outlined in DAGMAR, which of the following is the best statement of a quantitative communications objective? A. "Increase product users to 40 percent of the total market." B. "Win new customers and increase sales volume by 15 percent." C. "Increase the number of customers mentioning the brand name when asked for brand preference from 40 percent to 50 percent." D. "Increase awareness of the brand." E. "Increase sales revenue by 10 percent."
46. (p. 221) Using the DAGMAR approach, which of the following is NOT a stage of commercial communication? A. awareness B. comprehension C. conviction D. action E. sales
47. (p. 221) 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 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 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
48. (p. 221) Successful communications objectives must: A. be concrete and measurable B. specify a time period for accomplishing the objective C. specify well-defined target market D. have benchmark measures as starting points E. be all of the above
7-13
Chapter 07 - Establishing Objectives and Budgeting for the Promotional Program
49. (p. 221) According the DAGMAR model, which of the following is NOT a characteristic of a good objective? A. A good objective is concrete and measurable. B. A good objective specifies the target audience. C. A good objective includes benchmark positions and the degree of change sought. D. A good objective specifies a time period for accomplishment. E. A good objective is based on sales results.
50. (p. 221) According to the DAGMAR model, a good communications objective does NOT: A. target an aggregated market B. specify a time period during which the objective must be accomplished C. indicate a benchmark starting point D. specify degree of change sought E. specify a specific target audience
51. (p. 222) Determining a target market's present level of awareness, knowledge and liking toward a product often requires the taking of _____ measures. A. benchmark B. sales interval C. qualitative awareness D. quantitative awareness E. reach and frequency
52. (p. 222) Before beginning its new advertising campaign, Landmark Bank conducted a study to determine consumers' level of awareness and knowledge of the bank and its services as well as consumers' perceptions of the bank's image. These are examples of: A. advertising goals B. communication tasks C. benchmark measures D. DAGMAR objectives E. marketing research goals
7-14
Chapter 07 - Establishing Objectives and Budgeting for the Promotional Program
53. (p. 222) Assume the Greyhound Bus Company runs a six-month advertising campaign promoting its convenient bus routes and excellent on-time service without conducting any sort of marketing research. At the end of the six-month period, Greyhound conducts a study and finds 80 percent of its frequent travelers agree the bus company has convenient bus routes and excellent on-time service. Greyhound can conclude that: A. the campaign was successful in changing perceptions regarding its fares B. the campaign was successful in changing perceptions regarding its service C. the campaign was not successful since it should have nearly 90 percent of riders agreeing that it offers convenient bus routes and excellent on-time service D. its advertising is working E. without benchmark measures, it will never know if the campaign was a success or a failure
54. (p. 222) For which of the following advertising communication tasks should the specified time period required be the longest? A. creating brand awareness B. increasing brand awareness levels C. creating knowledge regarding a brand attribute D. increasing knowledge levels about a brand attribute E. repositioning a brand
55. (p. 222) In January 2003, Philip-Morris Companies, Inc., and Kraft Foods became the Altria Group. The name change reflected the fact the company has changed itself structurally, behaviorally, and culturally. The new name was designed to focus attention on the company's superior performance, financial strength, and its commitment to integrity and corporate responsibility. Which of the following statements about the communications objectives the company would have used as part of this repositioning strategy is true? A. The communications objectives established with this strategy would need to be abstract. B. It would be impossible for the company to have any benchmark measures for determining whether it reached its communications objectives. C. A communications objective concerning the repositioning of the Altria Group would take longer to accomplish than an objective designed to create brand awareness. D. The target audience could not be specifically defined in the communications objective. E. Quantitative benchmarks would be impossible due to the fact the Altria Group markets new products.
7-15
Chapter 07 - Establishing Objectives and Budgeting for the Promotional Program
56. (p. 222) The DAGMAR approach to setting objectives: A. has had little effect on the advertising planning process B. has focused advertisers' attention on the value of using communications objectives rather than sales objectives C. has never been criticized because it focuses on the hierarchy of effects model D. has increased the degree of subjectivity used in the selection of objectives toward which planners' efforts should be directed E. has been successful because it is easy to implement
57. (p. 222) DAGMAR MOD II was developed to alleviate problems with: A. the response hierarchy used in the original DAGMAR model B. the costs of using DAGMAR C. the fact DAGMAR ignores sales results D. setting benchmark measures E. creating measurable communications objectives
58. (p. 222-223) Which of the following is NOT an example of a common criticism of DAGMAR? A. It ignores communications objectives. B. It is difficult to implement. C. It is a costly and time-consuming process. D. It runs counter to the belief that the function of advertising is to create sales. E. It inhibits creativity.
59. (p. 222-223) You are working in the advertising department of a large consumer products company. You have suggested the company use the DAGMAR approach to setting advertising goals. Which of the following is NOT an example of an argument that you are likely to hear against the use of the DAGMAR approach to set advertising goals? A. Sales should be the measure of advertising effectiveness rather than communication goals. B. DAGMAR inhibits creativity in advertising. C. DAGMAR can be quite expensive due to research costs and is thus good only for large companies. D. DAGMAR is too quantitative for most managers to understand. E. It is difficult to show the relationship between the communications objectives advocated by DAGMAR and sales.
7-16
Chapter 07 - Establishing Objectives and Budgeting for the Promotional Program
60. (p. 222-223) Why might a small company with limited resources NOT want to use the DAGMAR approach to setting objectives? A. DAGMAR does not support the use of communications objectives. B. DAGMAR requires managers to use more subjectivity in setting objectives than other methods. C. Small companies are unlikely to want to spend money on marketing research to develop benchmark measures and track advertising effects. D. Small companies often cannot identify their real target audience. E. All of the above are reasons why a small company with limited resources may not want to use the DAGMAR approach to setting objectives.
61. (p. 222-223) 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' from 55 percent to 75 percent over the next six months." Using the criteria associated DAGMAR approach to setting objective, what is wrong with this objective? A. It is not a concrete statement of what message the airline wants to communicate. B. It does not contain a benchmark measure and statement of 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. Nothing is wrong with this objective; it satisfies all of the criteria specified in the DAGMAR model.
62. (p. 223) Advertising creative people might oppose the DAGMAR approach to setting objectives because it: A. inhibits their creativity by putting too much emphasis on numbers and the quantitative assessment of an advertising campaign B. requires that speculative presentations be created and used to set benchmark measures C. is only successful if it produces the desired sales results D. does not provide any type of communication guidelines E. is too concerned with qualitative assessments of the finished campaign
7-17
Chapter 07 - Establishing Objectives and Budgeting for the Promotional Program
63. (p. 223) Many companies fail to set appropriate integrated marketing communications objectives because: A. they cannot determine which benchmark measures to use B. subjectivity is as important as creativity in a successful advertising campaign C. top management has only an abstract idea of what the firm's IMC program is supposed to do D. they want to target several different target markets E. corporate culture supports abstract objectives and not the concrete type needed for a successful IMC program
64. (p. 224) Inside-out planning: A. focuses on what the marketer wants to say, when the marketer wants to say it, things the marketer believes are important to his or her brand, and the media form 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
65. (p. 224) Outside-in planning: A. focuses on what the marketer wants to say, when the marketer wants to say it, things the marketer believes are important to his brand, and the media form 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
7-18
Chapter 07 - Establishing Objectives and Budgeting for the Promotional Program
66. (p. 224) _____ is an approach to integrated marketing communications planning that involves determining what tasks need to be done and which marketing communications planning functions should be used to accomplish them. A. The objective/task pyramid B. DAGMAR C. Inside out planning D. Zero-based communications planning E. Refutational planning
67. (p. 224) According to Duncan's zero-based marketing communications planning approach,: A. advertising should always be the main tool for accomplishing marketing communications objectives B. sales promotion is usually the best tool for accomplishing marketing communications objectives C. big ideas for a promotional campaign can be 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
68. (p. 226) To more fully appreciate the value of advertising and promotion managers should treat the communications budget as a(n): A. asset B. expense C. liability D. investment E. fixed cost
69. (p. 227) _____ is the difference between total revenue generated by a brand and its total variable costs. A. Contribution margin B. Aggregated cost C. Promotional result D. Net worth E. Return on investment
7-19
Chapter 07 - Establishing Objectives and Budgeting for the Promotional Program
70. (p. 227) According to Robert Steiner, which of the following terms is essentially synonymous with contribution margin? A. total revenue generated by a product B. net worth C. financial optimization D. marginal analysis E. total profit generated by a product
71. (p. 227) In marginal analysis all of the following should be considered EXCEPT: A. sales B. fixed costs of advertising C. advertising expenditures and other variable costs D. gross margin E. net worth
72. (p. 227) Which of the following statements describes a weakness inherent in the use of the marginal analysis model for establishing an advertising budget? A. Using this model, it is difficult to demonstrate the effects of advertising and promotions on sales. B. Environmental factors not considered by the model may affect the effectiveness of the promotional program. C. Product quality, pricing, and distribution may also contribute to sales. D. Awareness, interest, and attitude change are also goals of the promotional effort. E. All of the above describe a weakness inherent in the use of the marginal analysis model for establishing an advertising budget.
73. (p. 228) The _____ function model is based on the microeconomics law of diminishing returns. A. concave-upward B. S-shaped demand C. S-shaped response D. marginal utility E. concave-downward
7-20
Chapter 07 - Establishing Objectives and Budgeting for the Promotional Program
74. (p. 228) The concave-downward function model is based on: A. the microeconomics law of diminishing returns B. the economic law of supply and demand C. price elasticity of demand quotients D. the change in contribution margins as item price is changed E. perceptual mapping results
75. (p. 228) The S-shaped response function implies that: A. initial advertising expenditures will have little impact on sales B. advertising expenditures will have major impact on sales C. sales effects will follow the microeconomic law of diminishing returns D. sales will immediately increase then decrease E. sales will immediately decrease then increase
76. (p. 228) The two models that are commonly used to explain the relationship between advertising and sales are the: A. concave-downward function and the S-shaped response function B. S-shaped response function and the concave-upward function C. marginal utility function and the S-shaped demand function D. S-shaped demand function and the convex-downward function E. concave-upward function and the S-shaped demand function
77. (p. 228) Well known brand name products do not receive incremental advantages from increased dollar expenditures on advertising. Once the ad hits the market, subsequent budget increases result in little or no incremental gains. This might best be explained by: A. arbitrary allocation B. the objective and task method C. competitive parity D. an S-shaped response E. rapidly diminishing returns
7-21
Chapter 07 - Establishing Objectives and Budgeting for the Promotional Program
78. (p. 228) According to the concave-downward model,: A. the effects of advertising quickly begin to diminish B. the carryover effect is especially true for low-priced, frequently purchased consumer products C. sales decrease rapidly if the price is too high D. initial outlays of the advertising budget have little impact on sales E. sales are not directly related to the size of the advertising budget
79. (p. 228) According to the S-shaped response curve,: A. the effects of advertising quickly begin to diminish B. the carryover effect is especially true for low-priced, frequently purchased consumer products C. sales decrease rapidly if the price is too high D. initial outlays of the advertising budget have little impact on sales E. sales are not directly related to the size of the advertising budget
80. (p. 228) A marketing firm decides to purchase media time in an attempt to sell its new product. After purchasing approximately $1 million dollars of time, it has noticed no impact on the sales of the product. However, at $3 million, a substantial increase is shown. This might best be explained by: A. arbitrary allocation B. the objective and task method C. competitive parity D. an S-shaped response E. rapidly diminishing returns
81. (p. 228) The S-shaped response curve suggests: A. advertising effectiveness will not be related to spending B. very low spending levels will not work C. advertising effectiveness will vary directly according to spending levels D. the carryover effect is especially true for low-priced, frequently purchased consumer products E. sales and spending on advertising are not directly related
7-22
Chapter 07 - Establishing Objectives and Budgeting for the Promotional Program
82. (p. 229) Which of the following is a factor that influences the setting of the advertising budget? A. what stage of its life cycle the product is in B. whether competition is active or concentrated C. whether the marketer is a pioneer in the market D. the cost of the product E. all of the above See Table 7-11.
83. (p. 229) Which of the following is a factor that influences the setting of the advertising budget? A. whether the company uses communications or sales objectives B. corporate structure C. the basis for product differentiation D. the extent of selective retention E. all of the above See Table 7-11.
84. (p. 231) When higher-level executives determine the budget amounts to be allocated for each department's advertising expenditures, a _____ approach is being used: A. bottom-up B. marginal contribution C. top-down D. Delphi E. contribution forecast
85. (p. 231) All of the following are considered top-down approaches to determining budgets EXCEPT: A. the objective and task method B. the affordable method C. the percentage of sales method D. arbitrary allocation E. the competitive parity method
7-23
Chapter 07 - Establishing Objectives and Budgeting for the Promotional Program
86. (p. 231) Which of the following is NOT a top-down approach to budget setting? A. the affordable method B. percentage of sales C. competitive parity D. return on investment E. payout planning
87. (p. 231) The _____ method of budgeting is being employed when expenditures are allocated by an analysis of expenditures for all aspects of producing and marketing the product. The ad budget is determined by making sure a certain amount is not exceeded. A. arbitrary allocation B. percentage of sales C. affordable D. return on investment E. competitive parity
88. (p. 232) You know the _____ method of budgeting is being employed after hearing an experienced marketing department manager respond 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 for how much should be budgeted where." A. arbitrary allocation B. percentage of sales C. ROI D. return on investment E. competitive parity
89. (p. 232) Which top-down budgeting method is being employed when expenditures are allocated by assigning a budget based on gut feelings? A. arbitrary allocation B. percentage of sales C. affordable method D. payout planning E. competitive parity
7-24
Chapter 07 - Establishing Objectives and Budgeting for the Promotional Program
90. (p. 232) The most commonly utilized method of budget determination by large firms is: A. competitive parity B. objective and task C. percentage of sales D. arbitrary allocation E. the affordable method
91. (p. 232) The _____ method of budgeting is being employed when expenditures are allocated by assigning a part of the cost of the product to be allocated to advertising. The total budget is based on units sold. A. arbitrary allocation B. percentage of sales C. objective and task D. return on investment E. competitive parity
92. (p. 232) To set an advertising budget, the marketer of filing cabinets examines advertising to sales ratios published in trade magazines, and then allocates a percentage of sales dollars to the advertising effort. Which two budgeting methods are being employed? A. competitive parity and percent of sales B. competitive parity and payout planning C. payout planning and percent of sales D. percent of sales and objective and task E. payout planning and arbitrary allocation
93. (p. 232) Which of the following budgeting procedures would be used if a firm wanted a method that is simple to understand and financially safe? A. competitive parity B. marginal analysis C. percentage of sales D. objective and task E. arbitrary method
7-25
Chapter 07 - Establishing Objectives and Budgeting for the Promotional Program
94. (p. 232) The _____ method of budgeting uses advertising/sales ratio data. A. objective and task B. affordable C. percent of sales D. ROI E. arbitrary allocation
95. (p. 232) The major problem associated with the _____ budgeting method is a reversal of the cause and effect relationship. A. percent of sales B. objective and task method C. competitive parity D. S-shaped response E. rapidly diminishing returns
96. (p. 236) The _____ budgetary allocation method is designed to promote stability and minimize marketing warfare as well as taking advantage of the collective wisdom of the industry. A. ROI B. arbitrary allocation C. percentage of sales D. competitive parity E. objective and task
97. (p. 236) When using the competitive parity budgeting method, the firm: A. matches its share of total industry advertising expenditures to its market share 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
7-26
Chapter 07 - Establishing Objectives and Budgeting for the Promotional Program
98. (p. 236) For which of the following methods of determining budget would a marketing department manager be most likely to use input from a clipping service? A. ROI B. arbitrary allocation C. percentage of sales D. competitive parity E. objective and task
99. (p. 236) The _____ method of budgeting is being employed when expenditures are allocated according information about industry averages for advertising. The budget is set to maintain a level consistent with industry spending. A. arbitrary allocation B. percentage of sales C. objective and task D. return on investment E. competitive parity
100. (p. 236) A disadvantage associated with the _____ method is its assumption that because firms have similar promotional expenditures their programs will be equally effective. A. return on investment B. affordable C. competitive parity D. objective and task E. payout planning
101. (p. 236) The _____ method of budgeting is being employed when expenditures are allocated by looking at the revenue generated from sales of the product during one year. The information gathered from this examination is used to determine the next year's dollar amounts. A. arbitrary allocation B. ROI C. payout planning D. return on investment E. competitive parity
7-27
Chapter 07 - Establishing Objectives and Budgeting for the Promotional Program
102. (p. 237) In the _____ method of budget determination advertising considered an investment, similar to plant and equipment. A. payout planning B. objective and task C. ROI budgeting D. competitive parity E. percentage of sales
103. (p. 237) Top-down budgeting methods are commonly used because of: A. their effectiveness B. upper management's desire for control C. the growing availability of computer simulations D. the ease with which a manager can assess the impact of sales on ROI E. their quantitative nature
104. (p. 237) The task and objective method of budgeting as well as the payout plan are both examples of the _____ approach. A. trading up B. top-down C. bottom-up D. build-up E. trickle up
105. (p. 238) Defining the communications objectives to be accomplished and estimating the costs associated with the performance of the necessary strategies and activities are steps in the _____ method of budgeting. A. competitive parity B. payout planning C. ROI D. return on investment E. objective and task
7-28
Chapter 07 - Establishing Objectives and Budgeting for the Promotional Program
106. (p. 238) Which of the following is an example of a budgeting allocation method that uses a build-up approach? A. ROI B. competitive parity C. objective and task D. arbitrary allocation E. percentage of sales
107. (p. 238) All of the following are components of the objective and task method EXCEPT: A. a re-evaluation of objectives B. determination of competitor's expenditures C. isolation of objectives D. estimation of required expenditures E. monitoring
108. (p. 238) The first task in the objective and task method of budgeting is to: A. conduct a system analysis B. create an organizational budget C. isolate advertising objectives D. determine what tasks need to be accomplished E. reevaluate objectives from previous years
109. (p. 238) Which of the following statements provides a good rule of thumb for setting the advertising budget for a new product? A. Its advertising budget should be double that needed to maintain 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 ten percent greater than the average budget planned for the entire payout period. E. None of the above is a good rule of thumb for setting advertising budgets.
7-29
Chapter 07 - Establishing Objectives and Budgeting for the Promotional Program
110. (p. 238) The objective and task method is most difficult to use when: A. the product to be promoted is intangible and in the maturity stage of its product life cycle B. the product to be promoted is in the decline stage of its product life cycle C. the product to be promoted is a cash cow D. the product to be promoted is new to the market E. a service is being promoted
111. (p. 240) _____ is a method for allocating budgets designed to determine the investment value of the advertising appropriation. A. Payout planning B. Percent of sales method C. Competitive parity D. Arbitrary allocation E. Objective and task
112. (p. 240) During situation analysis, a useful budgeting technique to determine a ballpark figure for setting feasible objectives is the _____ method. A. payout planning B. percent of sales C. competitive parity D. 401k E. marginal analysis
113. (p. 240) When used in conjunction with the objective and task method, _____ is the most useful method for establishing an advertising budget. A. competitive parity B. payout planning C. the affordable method D. concave analysis E. qualitative distribution
7-30
Chapter 07 - Establishing Objectives and Budgeting for the Promotional Program
114. (p. 240) As a tool for budget allocation, multiple regression analysis is most often employed in budget models using: A. computer simulation B. competitive parity C. arbitrary allocation D. percentage of sales E. a top-down approach
115. (p. 240) The most commonly employed quantitative models for allocating advertising budgets are: A. computer simulation and regression analysis B. competitive parity and arbitrary allocation C. regression analysis and ROI D. ROI and competitive parity E. arbitrary allocation and objective and task
116. (p. 240) Which of the following is NOT a factor that typically influences the budget allocation decision? A. client/agency policies B. market size C. market potential D. the ad agency's organizational structure E. economies of scale in advertising
117. (p. 244) A company in the process of allocating its budget would use syndicated services like A. C. Nielsen and Dun & Bradstreet to estimate: A. market share goals B. market potential C. consumer trends D. achievable economies of scale E. all of the above
7-31
Chapter 07 - Establishing Objectives and Budgeting for the Promotional Program
118. (p. 245) As a result of _____, large advertisers can maintain advertising expenditure shares that are smaller than their market shares because they get lower advertising rates and accrue the advantages of advertising several products jointly. A. economies of scale B. differential advertising advantages C. competitive parity D. a concave-downward response E. multiple advertising channels
119. (p. 245) 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 advantages of advertising several products jointly D. have declining average costs of production E. benefit from all of the above
120. (p. 245) As a result of economies of scale, smaller advertisers: A. are likely to enjoy more favorable advertising time and space than large advertisers B. have declining average costs of production C. get higher advertising rates than large advertisers D. can maintain advertising expenditure shares that are smaller than their market shares E. benefit from all of the above
121. (p. 245) Which of the following is an organizational characteristic that can have a direct effect on the budget allocation process? A. approval and negotiation channels B. pressure from senior managers to arrive at the optimal budget C. power and politics in the organizational hierarchy D. whether the organization is centralized or decentralized E. all of the above
7-32
Chapter 07 - Establishing Objectives and Budgeting for the Promotional Program
122. (p. 245) Which of the following is NOT an organizational characteristic that often has a direct effect on the budget allocation process? A. the preferences and experiences of the decision maker B. the degree of formalization C. the ratio of staff to line personnel D. the willingness to employ outside consultants E. pressure from senior managers to arrive at the optimal budget
7-33
Chapter 08 - Creative Strategy: Planning and Development
Chapter 08 Creative Strategy: Planning and Development
Multiple Choice Questions 1. (p. 249) The goal of the Las Vegas Convention and Visitors Authority's ad campaign was to: A. undercut new gambling destinations in other parts of the country B. reduce the promiscuous image of Las Vegas C. position Las Vegas as a full-blown vacation destination D. increase tax revenue E. promote Las Vegas as a retirement destination See opening vignette.
2. (p. 249) The "What Happens in Vegas, Stays in Vegas" ad campaign was designed to create a unifying theme of: A. sophistication B. indulge C. serenity D. shopping E. low-cost living See opening vignette.
3. (p. 251) The role of any advertising message is to: A. communicate information about a company's product or service B. motivate a consumer to take action C. shape consumers desires and goals D. create images that can position a brand in the consumer's mind E. do all of the above
8-1
Chapter 08 - Creative Strategy: Planning and Development
4. (p. 251) In the development of an advertising campaign or message, creative _____ involves determining what the message will say or communicate, while _____ deals with how the message will be implemented or executed. A. strategy; tactics B. tactics; strategy C. mission: strategy D. tactics; vision E. vision; mission
5. (p. 251) Which of the following statements about creative strategy and execution is true? A. A good creative strategy and execution guarantees a brand will exceed its sales objectives. B. A good creative strategy almost never helps generate sales for a brand. C. Ads that are very creative and popular among consumers still 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.
6. (p. 251) Many companies are willing to spend hundreds of millions of dollars each year on creative advertising because: A. they believe strongly in competitive parity B. they realize marketing success is unrelated to their creative advertising effort C. good creative strategy and execution are often critical to the success of a product or service D. they want to win creative awards in order to respond to the intangibility and homogeneity characteristics of service E. the development of good creative strategy is a science and is explained by marketing research
8-2
Chapter 08 - Creative Strategy: Planning and Development
7. (p. 252) Nissan ran an advertising campaign using "Shift" as the umbrella tagline. The campaign uses a combination of emotional and product-focused ads designed to strengthen Nissan's brand image while showing its revitalized product line. Creative advertising, like Nissan's, is likely to be particularly important when: A. companies are selling brands that are very similar in quality and difficult to differentiate on functional features B. a brand clearly has functional superiority over the competition that is easily noticed by consumers C. companies are very risk averse D. consumers are not responsive to advertising messages E. any or all of the above conditions are met See Exhibit 8-2
8. (p. 252) Which of the following statements regarding awards for advertising creativity is true? A. Ads that win creative awards almost always have a positive impact on sales. B. Most advertising and marketing people are supportive of advertising awards because they feel creative people are more concerned with creating advertising that sells their client's products than with winning awards. C. As a rule, all advertising people believe awards are an inappropriate way of recognizing advertising creativity that often helps sell a client's products. D. Not all advertising campaigns that have won creative awards have successfully generated sales for the clients' products. E. None of the above statements about advertising creativity is true.
9. (p. 254) _____ is a quality possessed by individuals that enables them to generate novel approaches to handling problems and that is reflected in new and improved solutions to those problems. A. Uniqueness B. Dramatization C. Creativity D. Proficiency E. Personification
8-3
Chapter 08 - Creative Strategy: Planning and Development
10. (p. 254) From the perspective of a product manager, a commercial is likely to be judged as creative if it: A. is novel and innovative B. has a high level of artistic or aesthetic value C. communicates the message clearly and leaves favorable impressions among the target audience D. wins creative awards E. is unlike anything currently in the marketplace
11. (p. 254) A study by Elizabeth Hirschman examined the perceptions of individuals involved in the creation and production of television commercials and found: A. product managers view advertising from an aesthetic perspective B. product managers and account executives both view advertising as a promotional tool whose primary purpose is to communicate favorable impressions about a brand C. art directors and copywriters view advertising primarily as a promotional tool whose primary function is to communicate information D. brand managers prefer creative commercials that take risks E. art directors and copywriters evaluate advertising on the basis of how well it fulfilled preset communications objectives
12. (p. 254) Based on the findings of the study conducted by Elizabeth Hirschman, which of the following individuals is most likely to be risk averse and prefer commercials that focus on the product rather than creative impact? A. product and brand managers B. art directors C. copywriters D. creative directors E. product consumers
8-4
Chapter 08 - Creative Strategy: Planning and Development
13. (p. 253) Which of the following statements about the advertising competition at the Cannes International Advertising Film Festival is true? A. The Cannes International Advertising Film Festival is the only award given for advertising creativity. B. The Cannes International Advertising Film Festival is not a global competition C. Entry into the Cannes International Advertising Film Festival is limited to members of the European Union. D. The award given by the Cannes International Advertising Film Festival is called the Clio. E. None of the above statements about the Cannes International Advertising Film Festival is true. See Global Perspective 8-1.
14. (p. 253) The Cannes Gold Lion award is: A. recognized as the most prestigious of all advertising awards B. given to the best example of product placement in the preceding year C. only awarded to companies that are members of the European Union D. awarded to the most creative tourism development advertising campaign of the preceding year E. not nearly as prestigious as the U.S.-based Clio awards See Global Perspective 8-1.
15. (p. 255) _____ is the ability to generate fresh, unique and appropriate ideas that can be used as solutions to communication problems. A. A unique selling plan (USP) B. Promotional uniqueness C. Problem detection D. Positioning E. Advertising creativity
8-5
Chapter 08 - Creative Strategy: Planning and Development
16. (p. 255) Which of the following statements gives a reason why a marketer might want to emphasize creativity in the development of an advertising campaign? A. Creative advertisements that are creative for the sake of being creative often fail to produce sales. B. Creative advertising can break through the clutter and make an impression on buyers. C. Creative advertising cannot create positive feelings that transfer to the product or service. D. Creative advertising is effective even if it is irrelevant to the target audience. E. All of the above statements give a reason why a marketer might want to emphasize creativity over all other elements in the development of an advertising campaign.
17. (p. 255) Which of the following statements about the use of creativity in an advertising campaign is true? A. Because most advertising is creative, creativity is not nearly enough to break through the clutter. B. Creative advertising always has a positive impact on sales. C. Creative advertising that is not relevant to the target audience may have a greater impact than advertising that is relevant. D. The nature of advertising requires that everyone involved in the promotional planning process engage in creative thinking. E. Users of creative advertising can avoid using big ideas and unique selling propositions in their advertising campaigns.
18. (p. 256) According to the universal advertising standards developed by the D'Arcy, Masius Benton & Bowles agency, a creative advertising message is built around a: A. unique selling plan (USP) B. strong brand image C. power idea or a creative core D. slice-of-life concept E. dramatization See also Figure 8-1.
8-6
Chapter 08 - Creative Strategy: Planning and Development
19. (p. 256) According to the universal advertising standards of the D'Arcy, Masius Benton & Bowles agency, creative and effective advertising: A. requires synergy B. does not use a brand personality C. uses a complex product or brand positioning strategy D. is careful to not be distinctly different from other advertising E. neither rewards nor punishes the prospect See also Figure 8-1.
20. (p. 258) When planning creative strategy, an advertising agency hopes to have: A. clients that appreciate the formalized system used to develop this strategy B. clients that are risk-aversive to squelch unorthodox strategies C. products with winning ad campaigns that simply need a slight tweaking D. clients who realize there are no new strategies left--only modifications of existing ones E. none of the above
21. (p. 258) Some of the more successful advertising agencies, such as TBWA and Wieden & Kennedy, attribute their excellent creative work to the fact that: A. they have clients who are risk averse B. they have clients who are willing to take creative risks C. they have clients who never become involved with or interfere in the creation process D. their clients keep them in check and don't let them try creative approaches that are excessively different E. their relationship with the client is significantly more important than any creative work
22. (p. 259) The perpetual debate over the most effective role for advertising is between: A. rationalists and poets B. environmentalists and pragmatics C. liberals and conservatives D. functionalists and operationalists E. supporters of centralization and supporters of decentralization
8-7
Chapter 08 - Creative Strategy: Planning and Development
23. (p. 259) The proponents of creative advertising argue that: A. the more information in the ad the more effective the ad 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
24. (p. 260) Advertising creative personnel tend to: A. rely on intuition rather than logic when solving a problem B. have educational backgrounds in nonbusiness areas C. be more abstract and less conventional in their approach and solution to a problem D. be more intuitive and perceptual than people with a business background E. be all of the above
25. (p. 260) Advertising creative personnel tend to: A. be more concrete and formalized than intuitive when solving a problem B. have majored in marketing in college C. rely on intuition more than logic D. be highly structured and organized individuals E. be no different from people with business executive backgrounds
26. (p. 260) According to James Webb Young, a former creative director at the J. Walter Thompson agency, the production of creative advertising ideas: A. is a random process that cannot be taught B. does not follow a definitive plan C. cannot be learned and controlled D. is a definitive process that can be learned and controlled E. has as many different routes as there are different forms of creativity
8-8
Chapter 08 - Creative Strategy: Planning and Development
27. (p. 261) There are five steps in the creative process as designed by James Webb Young, a former creative director at the J. Walter Thompson agency. They are: A. preparation, brainstorming, growth, reality check, and verification B. immersion, testing, illumination, creation, and verification C. immersion, digestion, incubation, illumination, verification D. preparation, incubation, immersion, illumination, and reality check E. immersion, brainstorming, incubation, creation, and reality check
28. (p. 261) According to the work of sociologist Graham Wallace, in order, the four-step approach to the creative process includes: A. preparation, incubation, illumination, and verification B. immersion, brainstorming, creation, and reality check C. preparation, illumination, creation, and verification D. preparation, immersion, creation, and verification E. immersion, incubation, illumination, and creation
29. (p. 261) A client who manufactures maternity clothes for businesswomen wants a new advertising campaign. Visits to obstetrician's offices to observe the clothes being worn and to maternity shops at the mall to see how they were selected could be a part of the _____ stage of the creative process. A. preparation B. verification C. revision D. reality check E. incubation
30. (p. 261) 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 starting to develop creative ideas, Leon reads some golfing magazines and spends time talking to some friends and co-workers who play golf. These activities are part of which stage of the creative process? A. preparation B. incubation C. illumination D. verification E. revision
8-9
Chapter 08 - Creative Strategy: Planning and Development
31. (p. 261) Inna has been hired to promote a membership-only genealogical Web site, which provides demographic information on over one billion people. She has gathered together all the relevant environmental information and has studied the product as closely as possible. Now it is time for the _____ stage of the creative process. She needs to work on another project and put the genealogical project completely out of her conscious mind. Her subconscious needs time to work on a solution. A. preparation B. digestion C. incubation D. illumination E. verification
32. (p. 261) For weeks, Bridgette had been trying to come up with a creative approach to advertise light bulbs. She had decided to try not to think about it for a while to see if her subconscious could figure something out. As she was relaxing in her bath one night, a great idea for a creative light bulb advertising campaign just seemed to pop into her head. She leapt out of the tub and began to write it all down before she forgot it. In terms of the creative process, Bridgette has just experienced the _____ stage. A. immersion B. verification C. revision D. illumination E. reality check
33. (p. 261) Why are models of the creative process valuable to those working in the creative areas of advertising? A. The models let the client see what he or she is paying for. B. The models provide an organized approach to a creative problem. C. The models let creatives approach the creative process in whichever manner feels most comfortable to them. D. The models were developed by people who were successful advertisers themselves. E. The models create heuristics needed to determine whether an ad will accomplish its goals.
8-10
Chapter 08 - Creative Strategy: Planning and Development
34. (p. 261) No matter which model of the creative processes you use, the last step in the creative process is: A. resolution B. illumination C. verification D. market evaluation E. confirmation
35. (p. 261) _____ is a process that involves conducting research and gathering all information about a client's good or service, brand, and members of the target audience. A. Incubation B. Germination C. Account planning D. Creative research E. Account seeding
36. (p. 261-262) An advertising executive who works for Hughes & O'Reilly Agency has just been assigned to a new Schlotsky's restaurant account. One of the first things he may want to do is: A. sit down and begin writing copy for sample ads B. spend some time visiting similar restaurants, eating their food and talking to consumers about some of their specific likes and dislikes of Schlotsky's and their competitors C. try to come up with some big ideas that can be the basis of a creative ad campaign D. come up with alternative positioning concepts for Schlotsky's E. any of the above
37. (p. 261-262) Account planning plays an important role during creative strategy development by: A. making sure the client knows the agency has the final say on which strategy will be used B. driving the process from the customers' point of view C. making sure all advertising complies with local, state, and FTC regulations D. determining whether the account should be accepted E. forecasting demand for the product category
8-11
Chapter 08 - Creative Strategy: Planning and Development
38. (p. 261-262) Which of the following statements about account planning is true? A. Account planners do not conduct any quantitative research. B. Account planners work with the client as well as other agency personnel. C. Account planners only work with the client to avoid agency bias. D. With account planning, the agency takes the 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 it is proprietary information.
39. (p. 262) How might an advertising creative specialist acquire general preplanning input about a market that can be used as to develop the creative strategy for a calcium-enhanced sports drink? A. Talk to coaches and trainers to get their reactions to the new product. B. Talk to nutritionists about the actual nutritional value of the added calcium. C. Get a group of athletes to sample the drink and give their opinions about its taste and consistency. D. Read reports on consumers' feelings about the addition of vitamins and minerals to their food. E. Do all of the above.
40. (p. 262) Tiffany is the creative director for 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 the: A. general preplanning input B. product specific preplanning input C. problem detection studies D. illumination studies E. brainstorming process
8-12
Chapter 08 - Creative Strategy: Planning and Development
41. (p. 262) Jonathan is the creative director for the Peet, Williams & Greene advertising agency. He spends an hour every morning reading publications such as Advertising Age, The Wall Street Journal and Brand Week to gain a better understanding of what is happening in the world of marketing and advertising. This activity can be characterized as: A. general preplanning input B. product specific preplanning input C. verification research D. brainstorming E. problem detection research
42. (p. 262) Product usage, attitude studies, and perceptual mapping would be examples of: A. general preplanning inputs B. product/service specific preplanning inputs C. verification studies D. revision studies E. demographic studies for business-to-business clients
43. (p. 262) Ramon participated in a study done 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 Ramon 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. Since the ad agency doing the research is the one that will develop the creative strategy for the airline's new ad campaign, you know Ramon most likely provided the agency with: A. product/service specific preplanning inputs B. general product inputs to be stored and used later C. secondary internal data D. secondary external data E. quantitative data which will be used by the client to determine market development strategies
8-13
Chapter 08 - Creative Strategy: Planning and Development
44. (p. 264) ______ 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. Consumer brainstorming B. General preplanning input C. Perceptual mapping D. Problem detection E. Market profiling
45. (p. 264) Douglas was asked to fill out a survey on dill pickles. He was asked questions about what he liked and disliked about dill pickles, when and where he usually ate dill pickles, and to list and rate all brands of dill pickles he could recall. He was also asked about packaging as well as degree of sourness in the different brands of pickles. Since the survey was conducted by an ad agency prior to developing a creative strategy for its client, a pickle manufacturer, and there were several people surveyed besides Douglas, you can assume he was participating in a _____ study. A. consumer brainstorming B. general preplanning input C. perceptual mapping D. problem detection E. market profiling
46. (p. 264) Psychographic studies are used by advertising agencies to: A. identify age, educational level, and ethnic background of the target audience B. provide creative personnel with a better understanding of the target audience for whom they are developing the advertising message C. determine how to allocate the advertising budget D. understand specific consumption problems consumers encounter with various products and services E. do all of the above
8-14
Chapter 08 - Creative Strategy: Planning and Development
47. (p. 264) In-depth interviews with consumers, focus groups, and observational studies of how consumers conduct their daily lives as consumers are all examples of: A. quantitative research techniques B. qualitative research techniques C. problem detection studies D. econometric research E. secondary internal research
48. (p. 264) Young & Rubicon developed, BrandAsset Valuator, a proprietary tool for building and managing a brand. Their tool measures four factors including ________________ to identify issues and evaluate brand performance. A. focus group quantification, brand power, associative cognizance and creativity B. problem detection, account planning, ethnographic diversity and campaign theme C. brand differentiation, relevance, esteem and knowledge D. brand preparation, brand valuation, brand drama and brand diversification E. projective brand respect, animatic projection, brand proposition and brand creativity
49. (p. 264) Lisle Ju, the creative director for JTT ad agency, is observing a focus group for fourwheel drive SUVs. She is gathering _____ before she begins to develop creative strategy for an SUV manufacturer. A. general preplanning input B. market detection research C. product specific preplanning input D. illumination research E. secondary internal data
50. (p. 264) Focus groups can be used during the advertising creative process to: A. find any special needs that are not being satisfied B. gain detailed insight into how and why consumers use a product or service C. evaluate creative concepts, ideas, and campaign themes D. better understand consumers' specific needs for a product or service E. do all of the above
8-15
Chapter 08 - Creative Strategy: Planning and Development
51. (p. 265) _____ research involves anthropologists or other types of trained researchers observing consumers in their natural environments. A. Psychographic B. Internalization C. Demographic D. Sociocultural E. Ethnographic
52. (p. 265) Researchers Daniel Miller and Don Slater monitored Web sites, lurked in chat rooms, and hung out in cyber cafés and observed how Internet users act. The users they observed consider the Internet to be a tool to augment traditional forms of communication. Miller and Slater conducted _____ research. A. e-marketing B. ethnocentric C. demographic D. communal E. e-commerce
53. (p. 265) Canadian researchers went into people's homes and observed how they watched television and more specifically what they did when commercials came on. This was an example of _____ research. A. psychographic B. demographic C. ethnographic D. perceptual E. interactive marketing
54. (p. 265) At what stage of the creative process are various ideas evaluated and refined before actually being used? A. preparation B. incubation C. illumination D. verification/revision E. verdict
8-16
Chapter 08 - Creative Strategy: Planning and Development
55. (p. 265) At what stage of the creative process would consumers in the target audience be asked to evaluate storyboards and animatics? A. preparation B. incubation C. verification/revision D. illumination E. verdict
56. (p. 266) The ideas of Malcom Gladwell in Blink: The Power of Thinking Without Thinking, suggest that many unique insights that drive innovation and great advertising campaigns are NOT gained through: A. focus groups B. surveys C. sampling D. traditional market research techniques E. all of the above See IMC Perspective 8-2.
57. (p. 267) A(n) ____ is a series of drawings used to present the visual plan or layout of a commercial along with a description of the audio for each scene. A. animatic B. rough layout C. storyboard D. creative map E. copy platform
58. (p. 267-268) To make a creative layout of a commercial more realistic, a(an) _____ may be produced by making a videotape of the _____ along with an audio soundtrack. A. animatic; storyboard B. storyboard; animatic C. animatic; copy platform D. copy platform; storyboard E. campaign; storyboard
8-17
Chapter 08 - Creative Strategy: Planning and Development
59. (p. 268) The Rogers Agency wants to test a creative idea it has for a new commercial before moving ahead with the production of the spot. To make the test more realistic it wants to test both the visual layout of the commercial as well as the audio portion of the message. The commercial should be tested in which of the following forms? A. storyboard B. animatic C. reaction profile D. print copy E. rough layout
60. (p. 268) One of the most popular and long-running advertising campaigns was created by the Leo Burnett agency for Maytag appliances. The ____ or central message of the advertising campaign was "Maytag Dependability." A. animatic B. campaign theme C. repositioning strategy D. copy platform E. product specific preplanning input
61. (p. 268) The print ads and the television ads for Maytag appliances were designed to show "The Loneliest Man in the World" was a Maytag repairman. Public appearances by the actor who appeared in the commercials as well as consumer brochures and point-of-purchase displays were also used in this interrelated and coordinated effort called a(n): A. advertising campaign B. copy platform C. animatic D. campaign illumination E. interrelated marketing campaign (IMC)
62. (p. 268) A(n) _____ is a series of advertising messages in a variety of media that center on a single theme or idea. A. advertising campaign B. copy platform C. unique proposition D. creative blueprint E. creative work plan
8-18
Chapter 08 - Creative Strategy: Planning and Development
63. (p. 268) Visa credit cards ran ads for a number of years that center around the basic theme that "Visa Is Everywhere You Want to Be." These ads emphasized the fact that Visa is accepted more places than any of its competitors are. This is an example of a(n): A. inherent drama appeal B. long-running advertising campaign C. conflict between the agency and the client producing an inability to create a new campaign theme D. copy platform E. creative blueprint
64. (p. 268) Advertising campaign themes: A. are always tactical in nature and design B. set the tone or direction for all of the individual ads that make up the campaign C. are typically designed by the client and implemented by the agency D. are usually used for ads that run in only one type of media vehicle E. are accurately described by all of the above
65. (p. 268) An advertising campaign may last for only a short time period: A. because of changing consumer trends B. due to an ineffective campaign theme C. because competitors develop similar products and remove the product's competitive advantage D. because market conditions change, and a new campaign is needed E. due to of any of the above reasons
66. (p. 268) "Diamonds are forever," "Tastes Great, Less Filling," and "Just do it" are all examples of: A. unique selling propositions B. long-running advertising campaign themes C. inherent drama appeals D. copy platforms E. creative blueprints See Table 8-2.
8-19
Chapter 08 - Creative Strategy: Planning and Development
67. (p. 268) Which of the following is NOT one of the top 10 advertising slogans of the century? A. "The pause that refreshes" B. "Taste Great, Less Filling" C. "Good to the last drop" D. "That dog won't hunt" E. "Does sheor doesn't she" See Table 8-2.
68. (p. 268) The creative strategy is affected by: A. the identification of the target audience B. the basis problems, issues, or opportunities that advertising needs to address C. the major selling ideas that the advertising needs to communicate D. any information supporting the major selling ideas that needs to be included in the ads E. all of the above
69. (p. 268) A(n) _____ is a work plan or checklist that is used to guide the creative development of an advertising message or campaign. A. animatic B. working document C. copy platform D. selling idea E. unique selling proposition
70. (p. 269) A typical copy platform does NOT contain: A. the basic problem to be addressed by the advertising B. advertising and communication objectives C. the major selling idea D. a creative strategy statement E. media goals and objectives See Figure 8-3.
8-20
Chapter 08 - Creative Strategy: Planning and Development
71. (p. 269) The copy platform: A. specifies the basic elements of the creative strategy B. is also called a creative platform C. is usually prepared by the account representative or manager assigned to the account D. is also called a creative blueprint E. is accurately described by all of the above
72. (p. 269) The copy platform: A. is typically developed by agency personnel with no input from the client B. is developed by the client before ever meeting with the agency C. often involves individuals from both the client side and agency personnel D. has a predetermined format that makes it easier to compare platforms from two disparate products E. typically contains both the advertising and the communications objectives See also Figure 8-3.
73. (p. 270) According to A. Jerome Jeweler, the _____ is the strongest singular thing an advertiser can say about its product or service and should be the central point in every ad. A. unique selling plan (USP) B. mission statement C. major selling idea D. brand equity statement E. competitive advantage
74. (p. 270) According to well-known advertising executive John O'Toole, a flash of insight that joins together a product benefit with what consumers desire in a fresh, involving way is called a(n): A. unique selling theme B. epiphany C. revelation D. big idea E. illumination
8-21
Chapter 08 - Creative Strategy: Planning and Development
75. (p. 270) All of the following could be considered an example of a big idea used as the basis of an advertising appeal EXCEPT: A. "You're in Good Hands with Allstate" B. "Go Milk" C. "Macintosh—A Computer for the Rest of Us" D. "We Build Excitement" E. "Buy Yoplait Yogurt Today"
76. (p. 270) Leslie is working for a local agency as an intern. Her company has been hired to develop an advertising campaign for chain of coffee shops. She has been given the task of coming up with the big idea. You can tell her big ideas: A. are very easy to come by B. really only matter in advertising for consumer products not for retail establishments C. are typically not the basis for effective advertising campaigns D. are only effective in business-to-business advertising E. are easier to develop when the service being advertised is heterogeneous
77. (p. 271) The "Softer Side of Sears" and Dr Pepper's "Just What the Doctor Ordered" advertising campaign themes are examples of: A. universal selling propositions (USPs) B. big ideas that have been the basis for effective advertising campaigns C. inherent drama approaches to developing big ideas D. big ideas for ad campaigns that did not last very long E. creative platforms that support products in the pioneering stage of their product life cycles
78. (p. 271) Hubba Bubba bubble gum is the only chewing gum that lets you blow great big bubbles that won't stick to your face. This statement represents the gum's: A. unique selling proposition B. brand image C. inherent drama D. competitive weakness E. brand equity
8-22
Chapter 08 - Creative Strategy: Planning and Development
79. (p. 271) Unlike other alkaline batteries and traditional rechargeable batteries, Rayovac Renewal alkaline battery is reusable 25 times or more. The ad headline read, "Introducing the Best-Performing Battery System in All of Creation." This ad was based on the Rayovac Renewal alkaline batteries: A. unique selling proposition B. brand image C. inherent drama D. tangibility E. brand equity
80. (p. 271) A unique selling proposition (USP): A. should offer a specific benefit to the consumer B. must be a feature, benefit, or advantage that the competition either cannot or does not offer C. must be strong or important enough to pull consumers to the brand D. should be an important part of a repetitive advertising strategy E. is accurately described by all of the above
81. (p. 271) Poinsettias are a very popular plant during the Christmas season. A major problem for growers of poinsettias is root rot. Syngenta has developed a patented product that eliminates root rot when it is placed in soil mix in which the plants are grown. Syngenta can use _____ to develop its creative strategy for advertising this new product. A. brand image B. inherent drama C. unique selling proposition D. diversified promotion E. transformational advertising
82. (p. 271) When using a unique selling proposition (USP) as the basis for a creative strategy, an advertiser the least important consideration for the advertiser would be: A. Does the USP provide a sustainable competitive advantage? B. Can the USP be easily copied or imitated by competitors? C. Can the USP claim be substantiated? D. Is the claim used as a USP important to consumers? E. Does the UPS create a brand personality?
8-23
Chapter 08 - Creative Strategy: Planning and Development
83. (p. 271) Nizoral A-D shampoo is the only dandruff shampoo made with the number one doctor-prescribed ingredient, an ingredient that its manufacturer holds the patent on. This is the product's unique selling proposition (USP). Which of the following statements about this USP is true? A. This USP can be easily imitated. B. This USP does not benefit a large enough target market. C. This USP creates a sustainable competitive advantage. D. This USP will cause the copy platform to be more cognitive than affective. E. This USP allows for the creation of a strong brand personality.
84. (p. 272) The online component of advertising campaigns is becoming the focal point of many campaigns because: A. there are more creative opportunities through online advertising B. for many companies that is where their customers are C. it provides the opportunity to interact with customers D. it allows the opportunity to integrate traditional media with online E. all of the above See IMC Perspective 8-3
85. (p. 273) Poinsettias are a very popular plant during the Christmas season. A major problem for growers of poinsettias is root rot. Syngenta has developed a patented product that eliminates root rot when it is placed in soil mix in which the plants are grown. Unlike other unique selling propositions such as new packaging, this USP creates a(n): A. sustainable competitive advantage B. need for a repositioning drama C. opportunity for an inherent drama appeal in the consumer market D. potential weakness for Syngenta's competition E. opportunity for ethnographic research
8-24
Chapter 08 - Creative Strategy: Planning and Development
86. (p. 273) 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. unique selling proposition B. image advertising C. inherent drama D. attribute-based positioning E. refutational appeal
87. (p. 273) All Nippon Airways (ANA) is the largest airline in the Far East. It ads focus on the Japanese hospitality that is offered on its planes—everything from elegant tableware to the finest in Far Eastern cuisine. If comfort and fine food is important to you when you travel, then you should think of ANA next time you are booking a flight to Asia. This development of a strong, memorable identity for ANA is an example of: A. a universal selling proposition B. image advertising C. inherent drama D. attribute-based positioning E. refutational appeal
88. (p. 273) Fortnum & Mason in London is a retail store committed to providing the best of traditional British meats and cooking. The store is lit by crystal chandeliers, and there are deep red carpets underfoot. The staff all wear tail-coats. Its ads want customers to associate the store with the royal treatment they will receive when they shop there. This development of a strong, memorable identity is an example of: A. a universal selling proposition B. image advertising C. inherent drama D. attribute-based positioning E. refutational appeal
8-25
Chapter 08 - Creative Strategy: Planning and Development
89. (p. 273) Spanish vintners want to improve consumers' perceptions of the sparkling wine they produce, which they contend is just as good as or even better than that produced in France. The French call the sparkling wine they produce in a specified region, champagne, and this is what most people choose when they are celebrating. Which of the following methods for developing a creative strategy for Spanish sparkling wine seems most appropriate? A. testimonials B. image advertising C. inherent drama D. benefit-based positioning E. refutational appeal
90. (p. 273) Which of the following statements about image advertising is true? A. Image advertising is used most often when there are significant functional or performance differences among brands. B. Image advertising is often used when competing brands are difficult to differentiate on a functional or performance basis. C. Advertisers often use image advertising when their products or services offer a unique attribute or benefit to consumers. D. Image advertising is most commonly used for business-to-business products. E. All of the above statements about image advertising are true.
91. (p. 273) Which of the following products would be least appropriate for an image advertising appeal? A. designer jeans B. soft drinks C. beer D. dishwashing detergent E. perfume
92. (p. 273) For which of the following products would image advertising be most appropriate? A. cologne or perfume B. motor oil C. laundry detergent D. cereal E. lawn mowers
8-26
Chapter 08 - Creative Strategy: Planning and Development
93. (p. 274) An approach to finding a major selling idea that uses consumer benefits as a foundation with an emphasis on presenting these benefits in a dramatic way is the _____ approach. A. unique selling proposition B. positioning C. inherent drama D. brand image E. benefit
94. (p. 274) An ad for Federal Express shows a toy manufacturer the day before announcing a new action-figure soldier. The CEO is being shown a tape of the commercial for the new figure and is not amused to see the macho soldiers wearing ballerina costumes. His assistant explains that he tried to use a cheaper carrier, and the tutus were sent instead of military uniforms. Across the bottom of the screen reads the logo, "When it absolutely has to get there, use FedEx." This ad is an example of the _____ approach. A. unique selling proposition B. positioning C. inherent drama D. brand image E. benefit
95. (p. 274) An ad for a medication that helps people undergoing chemotherapy feel more energetic showed a grandfather sorrowfully wishing he could participate in his grandson's birthday celebration but saying he was too tired. The next scene occurs at the birthday party and shows how much better the grandfather feels after taking the medication. This ad is an example of the _____ approach. A. unique selling proposition B. positioning C. inherent drama D. brand image E. benefit
8-27
Chapter 08 - Creative Strategy: Planning and Development
96. (p. 274) Jack Trout and Al Ries introduced _____ as the basis for advertising strategy and creative development in the early 1970s. A. inherent drama B. positioning C. brand image D. unique selling proposition E. transformational advertising
97. (p. 274) _____ is the approach to finding a major selling idea can be done on the basis of product attributes, price/quality, usage or application, product users, or product class. A. Brand image B. Inherent drama C. Unique selling proposition D. Positioning E. Emotional appeals
98. (p. 274) Which of the following is often the basis of a marketer's creative strategy when the company has multiple brands competing in the same market? A. unique selling propositions B. brand image C. inherent drama D. transformational advertising E. positioning
99. (p. 274) Procter & Gamble markets Zest, Safeguard, Camay, and Lava brands of bar soaps. Zest is a "get-you-started in the morning" soap. Safeguard is marketed as a germ-fighter. Camay cleans without drying or injuring the skin. Lava is for tough cleaning jobs. Procter & Gamble uses a(n) _____ strategy. A. brand image B. universal selling proposal (USP) C. inherent drama D. positioning E. divestment
8-28
Chapter 08 - Creative Strategy: Planning and Development
100. (p. 276) General Mills has multiple brands of cereal that compete among themselves and with Post, Quaker, and Kellogg's brand cereals. General Mills would most likely use the _____ approach as a basis for its creative strategies. A. unique selling proposition B. brand image C. inherent drama D. positioning E. dramatization
101. (p. 276) Aurora Foods Inc. markets Log Cabin, Mrs. Butterworth's, and Aunt Jemima brands of pancake syrup. Aurora is most likely to use a _____ approach to developing creative strategy for each brand. A. inherent drama B. brand image C. unique selling proposition D. positioning E. repositioning
102. (p. 276) Procter & Gamble markets Tide, Cheer, Gain, Dash, Bold 3 and Ivory Snow detergents to a variety of different target markets. P&G advertises these different brands using what type of creative strategy? A. inherent drama B. brand image C. unique selling proposition D. positioning E. repositioning
103. (p. 277) According to Advertising Age, experts in creative advertising don't write books or espouse theories. They see advertising as: A. an inherent drama working to offset the reality of social issues. B. an uplifting social force, as a way to inspire and entertain. C. the replacement for the 20th century salesperson D. publicity created through unique selling propositions E. a cultural force redefining societal needs and wants
8-29
Chapter 08 - Creative Strategy: Planning and Development
104. (p. 277) With the growth of integrated marketing communications, advertisers are being challenged to think beyond traditional mass media and develop creative advertising that: A. offsets the weaknesses associated with storyboard ad design B. provides opportunities for effective government oversight C. centralizes American consumer values in a global marketplace D. engages consumers and enter into a dialogue with them E. minimizes the risk of offending technology-savvy consumers
8-30
Chapter 09 - Creative Strategy: Implementation and Evaluation
Chapter 09 Creative Strategy: Implementation and Evaluation
Multiple Choice Questions 1. (p. 283) Marketers of Hyundai automobiles recognized they needed a brand image: A. similar to other inexpensive automobile manufacturers B. that would allow the firm to avoid having to pay for television advertising C. in order to win creative advertising awards D. to support their premium positioning E. that promoted safety over security See opening vignette.
2. (p. 283) One of the reasons Hyundai utilized an integrated marketing communications campaign was research indicated: A. that product features were less important than promotional expenditures B. a high percentage of buyers do most of their comparison shopping on the Internet C. competing automobile manufacturers were reducing their Internet presence allowing Hyundai an opportunity to create an electronic comparative advantage D. situational creative appeals are easier to convey using integrated marketing communications E. all of the above See opening vignette.
3. (p. 283) The agency that developed the Jack-in-the-Box fast-food restaurants ads used an irreverent return of a brand image that was remembered by customers from previous years, thereby creating: A. advertising appeal B. creative plan C. marketing plan D. sales approach E. sales presentation
9-1
Chapter 09 - Creative Strategy: Implementation and Evaluation
4. (p. 267) A(n) _____ refers to the approach used in an advertisement to elicit some consumer response or influence feeling. The way this approach is turned into an advertising message is the _____. A. advertising appeal; advertising campaign B. creative execution style; advertising appeal C. creative execution style; advertising campaign D. advertising appeal; creative execution style E. brand image; positioning
5. (p. 283) The _____ is the manner in which an advertising idea is turned into a message and presented to consumers. A. advertising appeal B. creative execution style C. rational appeal D. emotional appeal E. big idea
6. (p. 283) An ad for Enbrel, a prescription medicine for people who have rheumatoid arthritis, tells the reader that this drug has proven to work for people who have had little or no pain relief from other drugs. The factual, news like nature of the ad indicates it is using a(n) _____ appeal. A. informational/rational B. product popularity C. emotional D. fear E. refutational
7. (p. 283) Advertising appeals that focus on functional or utilitarian needs and emphasize product features and benefits are known as _____ appeals. A. informational/rational B. emotional C. price D. inherent drama E. image
9-2
Chapter 09 - Creative Strategy: Implementation and Evaluation
8. (p. 283) Purchase motives, such as convenience, comfort, economy and performance are used as a basis for _____ appeals. A. informational/rational B. emotional C. price D. inherent drama E. refutational
9. (p. 283) The content of advertising with _____ emphasizes facts, learning and the logic of persuasion. A. emotional appeals B. informational/rational appeals C. transformational appeals D. subliminal appeals E. irrational appeals
10. (p. 283) Which of the following statements about informational/rational advertising appeals is true? A. The particular features, benefits, or attributes that serve as the basis for these appeals are constant across product categories. B. These types of appeals work well for products but not for services. C. The particular features, benefits, or attributes that serve as the basis for these appeals vary from one product or service category to another as well as by market segment. D. The particular features, benefits, or attributes that serve as a basis for these appeals generally do not vary by market segment. E. Informational/rational ads create feelings, images, beliefs, and meanings about the product or service.
11. (p. 284) An ad for Calloway Gardens Resort stresses the different forms of recreation available to visitors to the resort. This is an example of a(n) _____ appeal. A. news B. favorable price C. feature D. popularity E. emotional
9-3
Chapter 09 - Creative Strategy: Implementation and Evaluation
12. (p. 284) Which of the following statements about feature appeals is true? A. Feature appeals tend to be very informative and present a number of attributes that can be used as the basis for a rational purchase decision. B. Feature appeals are never used for technical and high-involvement products. C. Feature appeals can be used for advertising a product but not a service. D. Feature appeals never focus on attributes or benefits that are important to consumers. E. All of the above statements about feature appeals are true.
13. (p. 284) To announce sales, special offers, or everyday low prices retailers often use a _____ appeal. A. functional B. popularity C. favorable price D. transformational E. productive
14. (p. 284) Which of the following is an example of a favorable price appeal? A. Dillard's department store announces a 24-hour sale. B. Kroger supermarkets advertise their everyday low prices. C. Denny's restaurant promotes its $2.99 Grand Slam Breakfast. D. Nissan advertises the latest model of the Altima as the lowest priced car in its class. E. All of the above use a favorable price appeal.
15. (p. 284) Imagine a personal computer manufacturer has developed a significant technological breakthrough that will make its computers easier to use for novices. The computer manufacturer will probably use which of the following types of appeals to announce the breakthrough? A. favorable price appeal B. emotional appeal C. news appeal D. popularity appeal E. transformational appeal
9-4
Chapter 09 - Creative Strategy: Implementation and Evaluation
16. (p. 284) Aleve ran a series of ads showing everyday people having to deal with minor arthritic pains. In each instance, the individual was pleased to learn that two Aleve were just as effective as taking eight of his or her old pain reliever. This ad campaign is using a(n) _____ appeal. A. emotional B. competitive advantage C. fear D. favorable price E. transformational
17. (p. 284) The Glad trash bag campaign, which used the slogan "Don't get mad. Get Glad," tells the reader Glad trash bags are twice as thick as the leading volume bag. Glad uses a(n) _____ appeal. A. emotional B. competitive advantage C. fear D. favorable price E. transformational
18. (p. 284) The ad for TDAmeritrade investment company states the company is "Ranked #1 by SmartMoney Magazine for the Do-It-Yourself Investor." The ad is using a(n) _____ appeal. A. emotional B. competitive advantage C. popularity D. favorable price E. transformational
19. (p. 284) Advertisements that focus on the dominant attributes or characteristics of a product or service are known as _____ appeals. A. feature B. news C. price D. product popularity E. generic
9-5
Chapter 09 - Creative Strategy: Implementation and Evaluation
20. (p. 285) McDonald's creates commercials designed to make parents feel good when they take their children to McDonald's restaurants. This is an example of: A. how rational appeals are used B. how product popularity appeals are used C. transformational advertising D. reminder advertising E. teaser advertising
21. (p. 285) Toyota ran an advertisement proclaiming their Camry has been the best selling model in the United States for two straight years. This is an example of a _____ appeal. A. feature B. favorable price C. news D. product popularity E. generic
22. (p. 285) The computer software company Intuit runs an advertising campaign for Quicken that emphasizes the fact it is the most preferred and best selling brand of financial software. This is an example of what type of advertising appeal? A. emotional B. teaser C. product popularity D. transformational E. favorable price
23. (p. 270) Advertising appeals that relate to consumers' social and/or psychological needs for purchasing a product or service are known as _____ appeals. A. informational B. rational C. irrational D. emotional E. feature
9-6
Chapter 09 - Creative Strategy: Implementation and Evaluation
24. (p. 285) Which of the following statements provides a reason for why marketers may use emotional appeals? A. The favorable feeling created by the appeal may transfer to the brand. B. Emotional appeals can create favorable mood states, which make consumers more receptive to an advertising message. C. Research has proven that emotional messages are better remembered than non-emotional messages. D. Emotional appeals can create feelings or images that are activated when consumers use the brand. E. All of the above are reasons why a marketer may use an emotional appeal.
25. (p. 285) Advertisers frequently use emotional appeals to advertise their products and services rather than rational appeals because: A. consumers' motives for purchase decisions are often rational in nature B. consumers' feelings about a brand can be more important than their knowledge of its features or attributes C. emotional appeals to consumers often are less effective when brands are similar D. emotional appeals are often less exciting and interesting than rational appeals E. emotional appeals cannot help differentiate brands that consumers view as somewhat homogenous
26. (p. 285) Advertisers create emotional advertising appeals by: A. using humorous advertisements B. using sexual appeals C. using transformational advertising D. creating favorable mood states E. doing all of the above
27. (p. 285) Advertising appeals that portray people in an advertisement as experiencing an arousing, upbeat and/or exciting benefit or outcome from using a product or service are relying on: A. informational integration B. rational integration C. mood transfer D. emotional integration E. outcome integration
9-7
Chapter 09 - Creative Strategy: Implementation and Evaluation
28. (p. 285) An advertisement for the State of Alabama shows a family with two teens arriving in the state alienated from each other. The fun they experience in the state brings the family back together again. The commercial ends with all four running down the beach holding hands. This ad uses _____ for its appeal. A. informational integration B. rational integration C. mood transfer D. emotional integration E. outcome integration
29. (p. 286) Advertisements that create feelings, meanings, images or beliefs about a product or service that can be activated when consumers use it are known as _____ ads. A. rational B. transformational C. nostalgic D. affective E. informational
30. (p. 286) _____ advertising attempts to make the experience of using a product or service richer, warmer or more exciting. A. Informational B. Competitive advantage C. Transformational D. Image E. Rational
31. (p. 286) Transformational advertising can differentiate a product or service by: A. convincing a consumer of the superior performance of a brand B. making the consumption experience more meaningful, exciting and enjoyable C. making a consumption experience last longer D. showing performance superiority of one brand over another E. proving brand superiority
9-8
Chapter 09 - Creative Strategy: Implementation and Evaluation
32. (p. 286) The Oscar Mayer ad touched the child in all of us when it showed Andy on the pier singing the "My bologna has a first name" jingle. This example of _____ advertising won America's heart and stomach. A. competitive advantage B. refutational C. transformational D. transactional E. image
33. (p. 286) Skyy Vodka's use of cinematic-inspired cocktail moments created marketing success through: A. image advertising B. television infomercials C. CEO spokesperson press releases D. banner advertising E. all of the above See Exhibit 9-6
34. (p. 287) 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 combined since consumers' purchase decisions are often made on the basis of rational and emotional motives D. are used together only for low-involvement products E. are accurately described by none of the above
35. (p. 287) The proprietary research technique developed by the McCann-Erickson Worldwide agency that helps evaluate how consumers feel about brands and the nature of their relationship with them is known as: A. focus group research B. transformational research C. emotional bonding D. psychographics E. ethnographics
9-9
Chapter 09 - Creative Strategy: Implementation and Evaluation
36. (p. 287) According to McCann-Erickson's concept of emotional bonding, the most basic relationship a consumer has with a brand is how he or she thinks about the: A. emotional ties he or she has with the product and/or brand B. brand personality C. product benefits D. self-actualization motives for purchasing E. self-esteem motives that will be affected by the purchase
37. (p. 288) Haggar used a humorous integrated marketing campaign to: A. compete for product rank among upscale clothing manufacturers B. reposition their brand as an anti-fashion product for middle-aged men C. eliminate the for product feature specifications D. reinforce their unique selling proposition as an industrial supplier for government clothing purchasing agents E. all of the above
38. (p. 289) Research shows consumers perceive Miller beer as strong, bold, and adventurous. This is an example of how consumers assign a _____ to a brand. A. product rank B. personality C. product features D. unique selling proposition E. market rank
39. (p. 289) Consumers perceive Maytag appliance as dependable. Consumers have assigned a _____ to the brand. A. product benefit B. personality C. product features D. unique selling proposition E. market rank
9-10
Chapter 09 - Creative Strategy: Implementation and Evaluation
40. (p. 289) According to McCann-Erickson's concept of emotional bonding, the strongest relationship that develops between a brand and a consumer is based on: A. product benefits B. brand personality C. feelings or emotional attachments to the brand D. rational motives E. competitive advantage over similar products in the market
41. (p. 289) Well-known brands and market leaders often run ads that do not use any specific types of appeals but rather focus primarily on keeping their brand name in front of consumers. This type of advertising is known as _____ advertising. A. teaser B. reminder C. repetitive D. popularity E. brandstanding
42. (p. 289) Hershey's advertises heavily around Christmas with ads that show only a picture of red, green and silver wrapped Hershey Kisses chocolate. Hershey's is using _____ advertising. A. transformational B. reminder C. curiosity D. emotional integration E. teaser
43. (p. 289) Ads for Oneida flatware show a piece of Oneida flatware, the headline, "ONEIDA," and the slogan "Your table is ready" in small print. This type of ad is intended as _____ advertising. A. transformational B. reminder C. curiosity D. emotional integration E. favorable price appeal
9-11
Chapter 09 - Creative Strategy: Implementation and Evaluation
44. (p. 289) _____ advertising is sometimes used to create curiosity and build interest and excitement in a new product or brand by talking about it but not showing it. A. Reminder B. Teaser C. Curiosity D. New product E. Rational appeal
45. (p. 289) Taco Bell launched the advertising campaign for its Double Decker taco by running anonymous full-page ads featuring basketball stars issuing vague challenges to one another. This is an example of _____ advertising. A. reminder B. teaser C. transformational D. favorable price appeal E. news appeal
46. (p. 290) When the Ford Motor Company was preparing to introduce a new model, ads were run for several weeks that talked about the new car but never showed it. This is an example of _____ advertising. A. reminder B. transformational C. teaser D. emotional E. cognitive
47. (p. 290) Which of the following statements about the use of teaser advertising is true? A. Teaser ads cannot be used to draw attention to and generate publicity for an upcoming advertising campaign. B. Teaser ads do not work well because consumers really do not pay much attention to advertising. C. Teaser ads can be effective but marketers must be careful not to use them too long. D. Teaser ads usually offend consumers. E. None of the above statements about the use of teaser advertising is true.
9-12
Chapter 09 - Creative Strategy: Implementation and Evaluation
48. (p. 290) The argument by famous advertising copywriter David Ogilvy that "what you say in advertising is more important than how you say it" suggests: A. advertising appeal is more important than the way it is executed B. advertising execution is more important than the appeal C. advertising appeals and executions are equally important D. advertising execution is more important than message content E. the product is more important than the creative appeal
49. (p. 290) An advertising execution technique that relies on a straightforward presentation of information concerning the product or service is called a(n): A. straight-sell or factual message B. demonstration C. testimonial D. dramatization E. animation of key benefits approach
50. (p. 290) Straight-sell message executions are commonly used with _____ advertising appeals. A. informational/rational B. emotional C. teaser D. transformational E. emotional integration
51. (p. 290) A print ad for flood insurance lists twenty good reasons why every homeowner should have flood insurance. This is an example of _____ advertising. A. straight-sell B. transformational C. testimonial D. teaser E. refutational
9-13
Chapter 09 - Creative Strategy: Implementation and Evaluation
52. (p. 291) The ad for TDAmeritrade investment company opens with the statement, "You can't plan for tomorrow if you don't know where your money is today." This statement indicates the entire ad is an example of _____ advertising. A. straight-sell B. transformational C. testimonial D. teaser E. refutational
53. (p. 291) When an advertiser cites technical information such as the results of laboratory studies in an advertisement, a(n) _____ execution is being used. A. dramatization B. slice-of-life C. scientific/technical evidence D. testimonial E. animation
54. (p. 291) In a Neutrogena moisturizer with superior sun protection ad, a dermatologist's report stated, "A year of incidental sun equals baking for a week at the beach!" This is an example of a(n) _____ execution. A. dramatization B. slice-of-life C. scientific/technical evidence D. testimonial E. animation
55. (p. 291) An ad for Lipton 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. a dramatization B. testimonial C. scientific/technical evidence D. slice-of-life E. comparison
9-14
Chapter 09 - Creative Strategy: Implementation and Evaluation
56. (p. 293) Which of the following is an advertising execution approach designed to illustrate key advantages or features of a product by showing it in actual use? A. comparison B. demonstration C. scientific evidence D. straight-sell E. animation
57. (p. 293) An ad for Toyota vans shows how easily a child, who needs to use a bathroom, can get out of the vehicle. Which ad execution technique is being used in this ad? A. comparison B. demonstration C. scientific evidence D. straight-sell E. animation
58. (p. 293) When a person speaks on the behalf of a product or service based on his or her personal use of and/or experiences with it, a(n) _____ execution is being used. A. dramatization B. slice-of-life C. animation D. demonstration E. testimonial
59. (p. 293) Tiger Woods appears in ads for Nike in which he notes how the company's golf clubs helped him win so many major championships. This is an example of which type of advertising execution? A. slice-of-life B. testimonial C. demonstration D. scientific evidence E. dramatization
9-15
Chapter 09 - Creative Strategy: Implementation and Evaluation
60. (p. 293) In a television ad, actress and noted animal lover Betty White praised a flea and tick treatment called Frontline for the way it protects both her dogs and cats. These ads are an example of the use of what type of execution? A. comparisons B. slice-of-life C. humor D. testimonial E. demonstration
61. (p. 293) Professional golfer Arnold Palmer appeared in ads advocating the engine protection cars get from Pennzoil motor oil. This is an example of a(an): A. comparison B. endorsement C. demonstration D. straight sell E. slice-of-life
62. (p. 293) A widely used advertising execution style for packaged goods products which attempts to portray situations consumers might face in their daily lives is known as: A. dramatization B. slice-of-life C. theater style D. a testimonial E. a demonstration
63. (p. 293) A Tide detergent ad showed a high school team manager easily removed all the grass and dirt stains from two dozen baseball uniforms by simply throwing them in a washer and adding Tide. The ad creator used which execution style? A. dramatization B. slice-of-life C. slice-of-death D. testimonial E. demonstration
9-16
Chapter 09 - Creative Strategy: Implementation and Evaluation
64. (p. 293) An ad in a golfing magazine for a vacation resort in Virginia begins by stating that the resort has "Dozens of sporting diversions for the entire family." Then under that statement it reads, "Translation: guilt-free golf." The ad creator used which execution style with this ad? A. dramatization B. slice-of-life C. slice-of-death D. testimonial E. demonstration
65. (p. 293) Which of the following statements about slice-of-life executions is true? A. Slice-of-life executions are sometimes criticized for being unrealistic and irritating. B. Slice-of-life executions often present a problem consumers encounter and suggest a solution. C. Slice-of-life executions can be used effectively by business-to-business marketers. D. Procter & Gamble has traditionally been a frequent user of slice-of-life executions. E. All of the above statements about slice-of-life executions are true.
66. (p. 293) Which of the following statements about the use of slice-of-life executions is true? A. Slice-of-life executions are very inefficient in business-to-business advertising. B. To be effective, a slice-of-live execution should avoid mimicking real life because its primary purpose is to rise above the clutter. C. Slice-of-life executions only work well for advertising for consumer products with perceived homogeneous 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. All of the above statements about the use of slice-of-life executions are true.
67. (p. 294) An advertising execution technique used by business-to-business marketers depicting the negative consequences of making incorrect purchase decisions is referred to as: A. a problem-solution execution B. slice-of-death advertising C. slice-of-life advertising D. a response-stimuli execution E. informational advertising
9-17
Chapter 09 - Creative Strategy: Implementation and Evaluation
68. (p. 294) An ad for Novell solutions targeted to businesspeople was headlined, "ERP: Sound made by CIO when people see data they shouldn't." The executive in the ad has a distressed, almost fearful look on his face. Which execution technique used to create this ad? A. a problem-solution execution B. slice-of-death advertising C. slice-of-life advertising D. a response-stimuli execution E. informational advertising
69. (p. 294) An advertising execution technique that is particularly popular for creating commercials targeted at children is: A. slice-of-life B. demonstration C. testimonial D. scientific evidence E. animation
70. (p. 294) A commercial for Honey-Flavored Wheat Chex cereal mix shows a bear made out of Wheat Chex cereal climbing a tree made out of Wheat Chex to reach a beehive made of Wheat Chex. Which type of creative execution does this commercial use? A. dramatization B. testimonial C. animation D. straight-sell E. slice-of-death
71. (p. 295) Which of the following is an example of an advertising personality symbol? A. Michael Jordan B. Betty Crocker C. Tiger Woods D. Shaquille O'Neal E. all of the above
9-18
Chapter 09 - Creative Strategy: Implementation and Evaluation
72. (p. 295) Mr. Peanut from the Planters Nut Company's ads is an example of advertising that uses which of the following advertising execution techniques? A. informational/rational B. demonstration C. fantasy D. personality symbol E. a behavioral appeal
73. (p. 295) _____ is a type of advertising execution style that involves creating a central character who can deliver the advertising message and with whom the product or service can be identified. A. Demonstration B. Testimonial C. Personality symbol D. Fantasy E. Slice-of-life
74. (p. 295) The Marlboro cowboy used to advertise Marlboro cigarettes for a number of years is an example of what type of advertising execution technique? A. testimonial B. demonstration C. personality symbol D. slice-of-death E. imagery
75. (p. 295) _____ is an advertising execution technique often used for emotional appeals. It offers a viewer a form of mental escape and/or an opportunity to envision themselves in a certain situation. A. Image advertising B. Demonstration C. Slice-of-life D. Animation E. Competitive advantage
9-19
Chapter 09 - Creative Strategy: Implementation and Evaluation
76. (p. 296) Timberland Co. sells all-weather gear. For its advertising, it has developed an imaginary place called Timber Land, which is a utopian setting of extraordinary landscapes and crystal-clear water. Its ads use a _____ execution style to get the audience to envision themselves in Timber Land. A. imagery B. demonstration C. slice-of-life D. animation E. competitive advantage
77. (p. 296) Imagery executions are particularly well suited for which type of medium? A. television B. newspapers C. radio D. magazines E. direct mail
78. (p. 298) _____ is an advertising execution technique whereby the focus is on using excitement and suspense to tell a short story with the product as the star of the ad. A. Slice-of-life B. Animation C. Dramatization D. Testimonial E. Imagery
79. (p. 298) Which of the following statements about the dramatization execution technique is true? A. The dramatization execution technique is particularly well suited to television. B. The dramatization execution technique often relies on the problem/solution approach. C. The dramatization execution technique is similar to a slice-of-life execution but uses more excitement and suspense. D. The goal of the dramatization execution technique is to use drama to get the audience involved in the advertising story. E. All of the above statements about the dramatization execution technique are true.
9-20
Chapter 09 - Creative Strategy: Implementation and Evaluation
80. (p. 298) The state of Colorado runs an ad in which it shows an obviously scared third grader getting ready to go on stage for his first public stage appearance. He is dressed to look like a carrot. The ad tells the reader that being a third grader is much more stressful than we remember and causes us to have great sympathy for the young man 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 which type of execution technique? A. dramatization B. testimonial C. fear D. animation E. scientific evidence
81. (p. 298) An ad for the Ford Focus shows four college-aged students hunting for a parking place in a large nearly full parking garage. When they finally find one and put the car into the place, they discover it is such a tight fit that they can't open the car doors to get out. A moment of concern is followed by a moment of enlightenment when one of them remembers the hatchback. The commercial ends with them all leaving the parked car through the hatchback. This commercial is a(n): A. dramatization with a humorous appeal B. animation with the intent of creating a personality brand C. slice-of-life with a fear appeal D. demonstration with an emotional appeal E. straight sell with a humorous appeal
82. (p. 298) The combination of rational and emotional advertising appeals: A. should never be done B. can be used for a variety of products since consumers make purchases on the basis of both rational and emotional motives C. would not be an effective way to advertise a high tech product such as a personal computer D. has limited applicability since most purchases are made entirely for rational reasons E. does not occur if an agency is used to prepare the advertising campaign
9-21
Chapter 09 - Creative Strategy: Implementation and Evaluation
83. (p. 299) Which of the following is a basic component of a print advertisement? A. deadline B. testimonial C. trademarks and service marks D. logo E. layout
84. (p. 300) _____ is the words in the leading position of a print advertisement that are likely to be read first. A. A headline B. Body copy C. Subheads D. Layout E. Primary copy
85. (p. 300) Research has shown that the first thing people look at in a print ad is the: A. illustration B. visuals C. body copy D. subheads E. headline
86. (p. 300) Many advertising experts consider the most important part of a print ad to be the: A. headline B. subheads C. layout D. body copy E. disclosures
9-22
Chapter 09 - Creative Strategy: Implementation and Evaluation
87. (p. 300) The function of a headline in a print ad is to: A. attract readers' attention B. make readers interested in reading the body copy of a print message C. perform a segmentation function by attracting the attention and interest of consumers who are the best prospects for a product or service D. put forth the main theme, appeal, or proposition of the ad in a few words E. do all of the above
88. (p. 300) Headlines that are very straightforward and informative in the message they are presenting are known as _____ headlines. A. direct B. indirect C. straight-sell D. subhead E. rational
89. (p. 300) When an advertiser has something important or new to announce to a target audience. A(n) _____ headline will be used. A. direct B. indirect C. subhead D. visual E. affective
90. (p. 300) The headline reads, "Introducing new Crayola Washable Crayons for the youngest artist in your gallery." This is an example of a(n) _____ headline. A. direct B. indirect C. straight-sell D. subhead E. rational
9-23
Chapter 09 - Creative Strategy: Implementation and Evaluation
91. (p. 300) Which of the following statements about the use of indirect headlines is true? A. Indirect headlines are often effective in attracting a reader's attention or interest. B. Indirect headlines can provoke curiosity and encourage a reader to read the body copy of an ad. C. Indirect headlines may include questions, provocations, or challenges. D. Indirect headlines rely on their ability to generate reader interest and involvement and thus get readers to read more of the message. E. All of the above statements about the use of indirect headlines are true.
92. (p. 300) Which of the following statements describes a potential problem associated with the use of indirect headlines in a print ad? A. Indirect headlines rarely generate interest or curiosity and thus motivate the reader to become involved with the remainder of the ad. B. Indirect headlines may not be provocative enough to get the readers' attention and offer a reason for reading the remainder of the message. C. Indirect headlines must always be accompanied by an engaging visual appeal in order to be effective. D. Indirect headlines only work when readers are already interested in the category of the good or service being advertised. E. All of the above statements describe potential problems associated with the use of indirect headlines.
93. (p. 300) A print ad for the Apple Cider Vinegar Diet used the headline, "Maybe Eve was on to something." This is an example of a(n): A. direct headline B. indirect headline C. subhead D. jingle E. subhead
9-24
Chapter 09 - Creative Strategy: Implementation and Evaluation
94. (p. 301) A print ad for Wilson Ultra golf balls used the headline "Do you ever wonder why John Daly can hit a golf ball so far?" This is an example of a(n): A. direct headline B. indirect headline C. subhead D. jingle E. subhead
95. (p. 301) Under the _____ "Send in the Reinforcements!" at the top of the ad page was printed in a smaller typeface the command "Boost your immune system with Kyolic Aged Garlic Extract," which is an example of a(n) _____. A. direct headline; indirect headline B. prohead; indirect headline C. indirect headline; direct headline D. indirect headline; subhead E. prohead; body copy
96. (p. 301) Underneath the headline, "Fully Loaded," in the ad for Browning shotguns was "Our most comprehensive line of autoloading shotguns ever." The 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: A. story line B. subhead C. demonstrative appeal D. physiological appeal E. psychological appeal
97. (p. 301) _____ are secondary headlines that usually appear in a type size smaller than the main headline but larger than the body copy of a print ad. A. Direct headlines B. Indirect headlines C. Body copy D. Voice-overs E. Subheads
9-25
Chapter 09 - Creative Strategy: Implementation and Evaluation
98. (p. 301) _____ are the print ad components used to break up large amounts of copy and highlight key selling points. A. Headlines B. Subheads C. Illustrations D. Layouts E. Voice-overs
99. (p. 301) What is the main text portion of a print ad called? A. the headline B. subheads C. body copy D. the visual E. the layout
100. (p. 301) _____ is considered the heart of a print ad but is often difficult to get readers to attend to. A. The headline B. The subhead C. Body copy D. The visual E. The logo
101. (p. 301) When deciding on the visual portion of an ad, an advertiser must determine: A. what identification marks should be included B. whether to use photos or other types of illustrations C. what the focus of the visual portion of the ad should be D. how long the ad copy should be E. whether to present the ad in color or black and white
9-26
Chapter 09 - Creative Strategy: Implementation and Evaluation
102. (p. 301) The physical arrangement of the various parts of an ad including headlines, subheads, illustrations, body copy and identifying marks is known as: A. the narrative style B. visualization C. copy writing D. art direction E. a layout
103. (p. 302) A copywriter can determine how much space he or she has to work with and how much copy to write after seeing the print ad's: A. headline B. subheads C. body copy D. layout E. illustration
104. (p. 302) The audio portion of a commercial is often presented through the use of a(n): A. layout B. voice-over C. illustration D. headline E. jingle
105. (p. 303) A recent trend among major advertisers is to have _____ do the voice-overs for their commercials. A. singing groups B. celebrities with distinctive voices C. everyday people D. children E. people with rare and unusual accents
9-27
Chapter 09 - Creative Strategy: Implementation and Evaluation
106. (p. 303) _____ 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. A jingle B. A voice-over C. Needledrop D. Stock photo E. Beat music
107. (p. 303) The function of music in a commercial is to: A. provide a pleasant background for the message B. create a mood state that will make consumers more receptive to the message C. help establish or communicate a key selling point D. attract and hold E. do all of the above
108. (p. 303) The use of actor James Garner's voice reading poetry in a series of automobile commercials is an example of a: A. needledrop B. talking jingle C. voice-over D. tagline E. subtextual message
109. (p. 303) _____ are catchy songs about a product or service that usually carry the advertising theme and a simple message. A. Headlines B. Taglines C. Voice-overs D. Jingles E. Needledrops
9-28
Chapter 09 - Creative Strategy: Implementation and Evaluation
110. (p. 303) A marketer of a low-involvement product that is advertised heavily on television might want to focus a great deal of attention on _____ when creating its advertising. A. body copy B. needledrop C. catchy jingles D. subheads E. voice-overs
111. (p. 305) Which of the following statements describes a reason why companies such as Nike, Microsoft, and Mercedes-Benz are willing to pay large sums of money for the right to incorporate popular songs into their commercials? A. These songs may help their commercials break through the advertising clutter on television and attract consumers' attention. B. These songs may activate a sense of nostalgia among consumers and create a positive mood that makes them more receptive to these companies' commercials. C. These classic songs may be very relevant to the image or position the advertiser is trying to create for their company or brands. D. These songs can create positive feelings that make consumers more receptive to the advertising message. E. All of the above statements are reasons why companies pay large sums for the right to use popular songs in their commercials. See also IMC Perspective 9-3.
112. (p. 305) The playing of the song "Like a Rock" in the broadcast ads for Chevrolet trucks is: A. used primarily to get attention B. used primarily as background music C. a central part of the advertising message D. unrelated to any market segmentation strategy E. accurately described by all of the above See also IMC Perspective 9-3.
9-29
Chapter 09 - Creative Strategy: Implementation and Evaluation
113. (p. 307) A written version of a television commercial that provides a detailed description of its video and audio content is known as a: A. layout B. jingle C. voice-over D. script E. storyboard
114. (p. 307) Once the basic script for a television commercial has been conceived, the writer and the art director get together to produce a _____, a series of drawings used to present the visual plan or layout of the commercial. A. transparency board B. storyboard C. visual layout D. layout synopsis E. thumbnail sketch
115. (p. 307) During which stage of commercial production process do activities such as editing, recording of sound effects, audio/video mixing, and agency approval occur? A. preproduction B. production C. postproduction D. preparation E. incubation
116. (p. 307) The creative work of an advertising agency may be reviewed and evaluated by: A. brand managers B. advertising managers C. legal departments D. board of directors E. all of the above
9-30
Chapter 09 - Creative Strategy: Implementation and Evaluation
117. (p. 308) During the 1999 Super Bowl many people saw and remembered the ad that showed former Superman star and then wheelchair-bound Christopher Reeves walking to a podium to receive an award. Few people remember the product being advertised because: A. the creative execution overwhelmed the ad message B. the creative approach was intended to support a market aggregation strategy C. the creative message was absent from the ad D. the informational appeal of the ad was missing E. of all of the above reasons
118. (p. 309) Which of the following questions should be used as a criterion when evaluating creative output? A. Does the creative approach communicate a clear and convincing message to the customer? B. Is the creative approach consistent with the creative strategy and creative objectives? C. Is the creative approach appropriate for the target audience? D. Is the creative approach consistent with the brand's marketing and advertising objectives? E. All of the above questions should be used as criteria when evaluating creative output.
119. (p. 309) Which of the following questions should be used as a criterion when evaluating creative output? A. Does the creative approach create a segmentation base? B. Is the creative approach consistent with that used by the competition? C. Is the creative approach appropriate for the target audience? D. Does the creative approach support a market aggregation strategy? E. All of the above questions should be used as criteria when evaluating creative output.
9-31
Chapter 10 - Media Planning and Strategy
Chapter 10 Media Planning and Strategy
Multiple Choice Questions 1. (p. 315) Which of the following is NOT one of what advertisers call "new media?" A. satellite radio B. wireless C. ads on movie screens D. cable television E. Internet See opening vignette.
2. (p. 316) The biggest change in media advertising is increased use of: A. branded entertainment B. Internet advertising C. satellite radio D. product placements E. cable television See opening vignette.
3. (p. 316) The primary objective of ______ is to develop a framework that will deliver the message to the target audience in the most efficient cost-effective manner possible. A. media planning B. market segmentation C. target marketing D. organizational planning E. a communication hierarchy
10-1
Chapter 10 - Media Planning and Strategy
4. (p. 316) Media options include: A. television B. direct marketing C. newspapers D. transit advertising E. all of the above
5. (p. 316) The media plan is a guide for: A. development of specific creative objectives B. media selection C. sales and marketing forecasts and potentials D. account auditing E. is accurately described by all of the above
6. (p. 317) USA Today, Sports Illustrated, and Tonight Show with Jay Leno are all examples of: A. media strategies B. media that have sweeps periods C. media vehicles D. communications decoders E. physical distribution channels
7. (p. 319) _____ is the measure of the number of different audience members exposed at least once to a media vehicle. A. Frequency B. Reach C. Viewer number D. Coverage E. Exposure
10-2
Chapter 10 - Media Planning and Strategy
8. (p. 319) _____ refers to the potential audience that might receive the message through a vehicle. A. Frequency B. Reach C. Viewer number D. Coverage E. Exposure
9. (p. 319) _____ is the number of times a receiver is exposed to a message in a given time period. A. Potency B. Reach C. Coverage D. Frequency E. Mediatronics
10. (p. 319) The times during the year when television audiences are measured in order to set advertising rates are called: A. sweeps periods B. GRP flighting periods C. frequency estimates D. availabilities E. upgraded media scheduling
11. (p. 319) Media planning is not an easy task. Which of the following is a reason why media planning is so difficult? A. insufficient information on audience figures B. inconsistent terminology C. time pressures inhibit proper planning D. difficulty in measuring the effectiveness of a medium E. all of the above
10-3
Chapter 10 - Media Planning and Strategy
12. (p. 321) Media planning is not an easy task. Which of the following is a reason why media planning is so difficult? A. information overload B. product life cycles differences C. media objectives conflict with communication objectives D. time pressures inhibit proper planning E. all of the above
13. (p. 320) After the situation analysis and the development of both the marketing and creative strategy plans, it is time to develop the media plan. The first step in developing a media plan is to: A. create a media plan committee B. set media objectives C. determine the reach, frequency, and coverage of all available media D. select broad media classes E. develop advertising campaigns See Figure 10-3.
14. (p. 320) Which of the following is NOT a part of the media plan? A. media objectives B. media strategy C. marketing strategies D. determination of media coverage E. frequency estimates See Figure 10-3.
10-4
Chapter 10 - Media Planning and Strategy
15. (p. 322) Many advertisers are interested in consumers' engagement with products, suggesting: A. the more engaged consumers are, the more likely they will marry a brand B. people who are engaged to be marry are a better market segment than consumers who are not engaged to be married C. that market tests reflect how infatuated consumers are with today's new media D. advertising continuity will lead to greater average pulsing frequency E. the more engaged consumers are with an ad, the more likely they are to avoid duplicated reach flighting See IMC Perspective 10-1.
16. (p. 322) One advertising analyst proposed that engagement equals A. objectives + strategy + buying power B. exposure + intent + involvement C. medium + frequency - reach D. gross ratings points – relative cost per point + daily inch rate E. pulse + flight + pursuit See IMC Perspective 10-1.
17. (p. 322) Some advertisers conclude that if "engagement" can be achieved it could lead to: A. greater government scrutiny B. increased advertising revenues C. smaller amounts of media spending D. fears of increased censorship E. greater readers per copy See also IMC Perspective 10-1.
10-5
Chapter 10 - Media Planning and Strategy
18. (p. 323) The ______ provides syndicated data on audience size and composition for approximately 100 publications as well as broadcast exposure and data for over 800 consumer products and services. A. Simmons Market Research Bureau (SMRB) B. Starch Readership Reports C. Arbitron Ratings D. Nielsen Media Index E. Mediamark Ratings Index
19. (p. 323) 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 the multiplying the quotient by 100. A. cost per media (CPM) B. quantitative advantage C. index number D. average frequency E. relative reach
20. (p. 323) An index number of 100 means the: A. use of the product is proportionately greater in that segment than in one that is average B. segment being analyzed is average C. use of the product is proportionately fewer in that segment than in one that is average D. probability of wasted coverage is 100 percent E. the probability of success in this market is 100 percent
21. (p. 323) The Simmons Market Research Bureau (SMRB) report provides clients with: A. information on the number of users of a product B. information on the number of users falling into a demographic category C. an index number reflecting category usage D. a breakdown by light, medium and heavy users E. all of the above See also Figure 10-5.
10-6
Chapter 10 - Media Planning and Strategy
22. (p. 323) Which of the following is NOT included in The Simmons Market Research Bureau (SMRB) report? A. sales growth B. lifestyle information C. demographic information D. a breakdown by light, medium and heavy users E. all of the above are included See also Figure 10-5.
23. (p. 324) __________________ is an internal factor that may influence the determination of media strategy. A. The size of the media budget B. Competitive factors C. Changes in the economy D. The development of new media E. All of the above
24. (p. 324-325) _____________________ is an external factor that may influence the determination of media strategy. A. Administrative capabilities B. Competitive factors C. Size of the media budget D. How tasks are delegated with the agency E. All of the above
25. (p. 325) Which of the following is a method used for organizing a media buying department? A. degree of product tangibility B. product life cycle C. specialization by media class D. degree of product innovation E. all of the above See Figure 10-8.
10-7
Chapter 10 - Media Planning and Strategy
26. (p. 326) The market potential in a given metropolitan area, as compared to the United States as a whole, can be determined by using: A. the Nielsen Rating Index B. BAR/LNA C. Simmons Market Research Bureau (SMRB) D. Mediamark Research Inc. (MRI) E. the survey of buying power index
27. (p. 326) The survey of buying power index is particularly useful for providing _____ information. A. geographic B. demographic C. lifestyle D. consumer behavior E. psychographic
28. (p. 326) Which of the following sources of information should be used by a media buyer wishing to acquire statistical information for a specific metropolitan market? A. Simmons Market Research Bureau (SMRB) B. Mediamark Research Inc. C. survey of buying power index D. BAR/LNA E. Standard Rates and Data
29. (p. 326) General Foods wishes to determine the percentage of Maxwell House coffee sold in a geographic area as compared with the percentage of the total population in this market. The most appropriate index to use would be: A. survey of buying power index B. brand development index C. category development index D. Simmons Market Research Bureau (SMRB) E. Mediamark Research Inc.
10-8
Chapter 10 - Media Planning and Strategy
30. (p. 326) To determine the potential for sales of coffee (as opposed to a specific brand) in a particular market area, a company should use: A. brand development index B. category development index C. survey of buying power index D. Simmons Market Research Bureau (SMRB) E. Mediamark Research Inc.
31. (p. 326) The rate of product usage in a geographical area may be calculated through the use of: A. gross ratings points (GRP) B. reach and frequency C. brand development index (BDI) D. benchmark designated index (BDI) E. category development index (CDI)
32. (p. 326) The category development index is similar to the Brand Development Index (BDI) except that it: A. uses information about the product category B. is more specific C. is concerned with companies and not with products D. is tied to an economic index E. is less reliable
33. (p. 328) 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. What do these results imply? A. high market share and good market potential B. low market share and good market potential C. high market share and monitor for sales decline D. low market share and poor market potential See Figure 10-10.
10-9
Chapter 10 - Media Planning and Strategy
34. (p. 328) 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. What do these results imply? A. high market share and good market potential B. low market share and good market potential C. high market share and monitor for sales decline D. low market share and poor market potential See Figure 10-10.
35. (p. 328) 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. What do these results imply? A. high market share and good market potential B. low market share and good market potential C. high market share and monitor for sales decline D. low market share and poor market potential See Figure 10-10.
36. (p. 328) In 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. What do these results imply? A. high market share; good market potential B. low market share; good market potential C. high market share; monitor for sales decline D. low market share; poor market potential See Figure 10-12.
10-10
Chapter 10 - Media Planning and Strategy
37. (p. 328) Which of the following situations offers the advertiser the least attractive marketing opportunity? A. high BDI; high CDI B. high BDI; low CDI C. low BDI; high CDI D. low BDI; low CDI See Figure 10-12.
38. (p. 328) Which of the following indices reflects a company with low market share in a given market? A. low brand development index (BDI) B. high brand development index (BDI) C. low category development index (CDI) D. high category development index (CDI) See Figure 10-12.
39. (p. 329) When the coverage of the media exceeds the targeted audience, this excess is referred to as: A. plusage B. flighting C. waste coverage D. geographical excess E. oversaturation
40. (p. 329) Media buyers might choose to live with a relatively high degree of waste coverage because: A. it best supports a flighting media schedule B. it may still be the most cost affordable buy on a per exposure basis C. it allows for more specific targeting D. repetition is the most effective method for pioneering advertising E. it supports a market aggregation strategy
10-11
Chapter 10 - Media Planning and Strategy
41. (p. 329) A media selection problem whereby the coverage of the media vehicle goes beyond the scope of the target audience is known as: A. rate differentials B. pass-along audience problems C. excess frequency D. waste coverage E. weighted exposure
42. (p. 329) Which of the following would be most likely to result in waste coverage? A. an ad for custom-build concession food trailers appearing in Amusement Business, a trade journal B. a business-to-business ad appearing in Time magazine C. a Mountain Dew commercial appearing on MTV D. a Reebok commercial during the NCAA basketball playoffs E. an ad for a solvent to clean rifles in Guns magazine
43. (p. 330) The use of hot sauce is most common from Louisiana west to New Mexico and north to the Arkansas-Oklahoma border. A producer of hot sauce would use this information to schedule using: A. flighting B. continuity C. geographical weighting D. intermittent E. pulsing The timing of when the advertising is run is not relevant to the locational factors present in the question.
44. (p. 315) In terms of advertising, scheduling constant advertising without variation is referred to as: A. flighting B. continuity C. geographical weighting D. circulation E. pulsing
10-12
Chapter 10 - Media Planning and Strategy
45. (p. 330) Seasonal products such as Mother's Day cards and Valentine candy would best make use of which scheduling alternative? A. weighted ratings B. market share C. flighting D. pulsing E. continuous
46. (p. 330) My product is hand-tooled leather wallets, which can be purchased at any time of the year, but which are more often purchased during the Christmas season and before Father's day. Given a limited budget, which strategy would likely be the most effective if I wanted to try to stimulate trial and/or sales? A. ratings B. share C. flighting D. pulsing E. continuous
47. (p. 330) A product that may be consumed throughout the year, but has seasonal periods where consumption is higher would most logically employ a _____ scheduling method. A. continuous B. pulsing C. flighting D. oscillating E. weighted ratings
48. (p. 330) Which media scheduling strategy would be most likely to be used by a marketer of dishwashing detergent? A. ratings B. share C. flighting D. pulsing E. continuous
10-13
Chapter 10 - Media Planning and Strategy
49. (p. 330) Which media scheduling method would be inappropriate for the product named? A. spring-blooming bulbs - continuous B. soft drinks - pulsing C. snow blower - flighting D. Christmas cards - flighting E. accounting services- flighting
50. (p. 330) For which of the following products is an advertiser most likely to use continuity scheduling? A. swimming pool chemicals B. flea collars C. cake mixes D. wood burning stoves E. tickets to professional basketball games
51. (p. 330) _____ is the employment of periods of advertising along with periods of nonadvertising. A. Weighting B. Continuity C. Pulsing D. Flighting E. Circulation
52. (p. 330) New Balance running shoes would probably wish to pursue a _____ scheduling strategy, while Rossignol snow skis would more than likely use a _____ schedule. A. continuous, pulsing B. flighting; pulsing C. pulsing; flighting D. pulsing; continuous E. continuous; continuous
10-14
Chapter 10 - Media Planning and Strategy
53. (p. 330) For which of the following products is an advertiser most likely to use a flighting schedule? A. cake mixes B. shampoo C. newspaper subscriptions D. snow tires E. candles
54. (p. 330) When a product's advertising schedule involves constant advertising with heavier efforts being made at certain times, a(n)_____ schedule is being employed. A. intermittent B. continuity C. flighting D. weighting E. pulsing
55. (p. 330) Recreation vehicles (RVs) advertise throughout the year but typically advertise more heavily June and in September. This pattern represents which scheduling method? A. flighting B. geographical weighting C. continuity D. oscillating E. pulsing
56. (p. 330) Disneyworld advertises itself as a vacation spot throughout the year, but it advertises more heavily during the summer months and during the Christmas season when more people are vacationing. This is an example of _____ scheduling. A. flighting B. geographical weighting C. continuity D. oscillating E. pulsing
10-15
Chapter 10 - Media Planning and Strategy
57. (p. 332) Which of the following statements describes an advantage inherent in the flighting method of schedule advertising? A. With flighting, there is no danger of wearout. B. Flighting creates cost efficiency by using advertising only during purchasing periods. C. Unless advertising is continuous, people will forget the message altogether. D. Forgetting is virtually eliminated by alternating periods of high and low advertising weight. E. None of the above describes an advantage inherent in flighting. See Figure 10-16.
58. (p. 332) Which of the following statements describes a disadvantage associated with the flighting method of schedule advertising? A. Consumers have a lack of awareness, interest, and retention of promotional messages during nonscheduled times. B. Flighting allows the marketers to cover the entire buying cycle. C. Because the advertising is continuous, people will not forget the advertising message. D. Flighting eliminates concerns about wearout. E. There are no disadvantages associated with flighting. See Figure 10-16.
59. (p. 332) Which of the following is an advantage inherent in the pulsing method of scheduling advertising? A. cost efficiency of advertising B. covers the entire buying cycle C. allows for the use of more than one media vehicle D. ability to use advertising as a constant reminder to the consumer E. all of the above See Figure 10-16.
10-16
Chapter 10 - Media Planning and Strategy
60. (p. 332) Given an advertising objective of achieving maximum awareness in an undifferentiated target market, the strategy should be to maximize: A. reach B. frequency C. GRPs D. CPM E. CPRP
61. (p. 332) Which of the following media strategies is suitable for a new product with a target audience concentrated in a well-defined market segment? A. one that emphasizes frequency rather than reach B. one that emphasizes reach rather than frequency C. one that balances reach and frequency D. one that uses a high cost per thousand approach E. one that allows continuous communication
62. (p. 333) Given the objective is comprehension of the message, the strategy should be to maximize ______ at the expense of _____. A. frequency; reach B. reach; frequency C. reach; GRPs D. GRPs; CPM E. frequency; CPM
63. (p. 317) A company with a substantial advertising budget with little or no awareness in the target market should: A. maximize frequency and sacrifice reach B. maximize reach C. maximize coverage D. use maximum continuity E. use a pulsing push strategy
10-17
Chapter 10 - Media Planning and Strategy
64. (p. 332) Which of the following statements about advertising reach is true? A. Reach refers to the number of times a viewer is exposed to the ad. B. Reach can be defined as the "opportunities to see" an ad. C. The total number of persons exposed once to a vehicle is referred to as reach saturation. D. Overlap that results from multiple exposures is referred to as wasted reach. E. It is easy to determine what level of reach will be required to achieve various levels of awareness in a target audience.
65. (p. 333) A company has a limited promotional budget. The target market is highly concentrated and has already been shown to have high awareness and interest in the project. The goal of the promotional strategy should be to: A. maximize coverage B. maximize reach C. increase frequency D. sacrifice frequency for improved reach E. do none of the above
66. (p. 333) Duplication of audiences is a desired factor if the media strategy is to: A. maximize reach B. optimize GRP C. optimize both reach and frequency D. maximize frequency E. reduce waste coverage
67. (p. 334) Dr Pepper ran its commercial featuring Garth Brooks during American Idol and during The Bachelor. Since many people watched both television shows, _____ occurred. A. duplicated reach B. facsimile promotion C. advertising replication D. duplicated frequency E. flighting
10-18
Chapter 10 - Media Planning and Strategy
68. (p. 334) Unduplicated reach is: A. average reach multiplied by average frequency B. duplicated reach plus total reach C. total market coverage less duplicated reach D. reach multiplied by frequency E. total reach less duplicated reach
69. (p. 334) To calculate gross ratings points (GRPs), you will need to: A. multiply reach times frequency B. divide reach times frequency by costs C. multiply CPM times average frequency D. divide average frequency by costs E. add reach and frequency and divide by CPM
70. (p. 334) _____ is a summary measure that combines reach and frequency. A. The brand development index (BDI) B. The program rating C. The category development index (CDI) D. Target ratings points (TRPs) E. Gross ratings points (GRPs)
71. (p. 335) _____ is the number of persons in the primary target audience who the media buy will reach and the number of times those persons will be reached. A. Target ratings points B. Gross ratings points C. Coverage D. Effective reach E. Total market coverage
10-19
Chapter 10 - Media Planning and Strategy
72. (p. 335) How do gross rating points (GRPs) differ from target ratings points (TRPs)? A. TRPs are calculated using average frequency figures, and GRP is not. B. TRPs calculations do not include waste coverage, and GRPs calculations do. C. TRPs use a duplicated reach estimate, and GRPs do not. D. TRPs are used when selecting broadcast media, and GRPs are used for selecting print media. E. The two terms are synonymous.
73. (p. 336) The concept of _____ is based on the assumption that one exposure to an ad may not be enough to convey the desired method. A. average frequency B. average reach C. effective reach D. GRPs E. effective frequency
74. (p. 336) Effective reach refers to the: A. number of people in the target audience exposed to the ad B. number of people seeing the ad that that took some action as a result of the ad C. number of people who can recall the ad D. percentage of a media vehicle's audience reached with the addition of one more showing of an ad E. number of times an ad appears in primetime television
75. (p. 336) Which of the following statements about reach and frequency is true? A. Evidence suggests wearout is not a result of seeing an advertisement too often. B. The central goal of media planning should be to enhance reach rather than frequency. C. Any generalizations about reach and frequency will vary according to the medium being examined. D. The evidence suggests that an exposure rate of one within a purchase level is an effective level. E. All of the above statements about reach and frequency are true. See Exhibit 10-21.
10-20
Chapter 10 - Media Planning and Strategy
76. (p. 337) _____ is the number of times the average household reached by a media vehicle is exposed to the vehicle over a specified period of time. A. Effective reach B. Unduplicated reach C. Average reach D. Average frequency E. Effective frequency
77. (p. 337) Consider the following media buy: 70 percent of the audience is reached 1 time. 20 percent of the audience is reached 4 times. 10 percent of the audience is reached 6 times. Based on this information, what does the media buyer know? A. The media buyer can use this information to calculate GRP and should not be concerned that 70 percent of the audience will only see the ad once. B. The media buyer will need to use this in making a final decision because effective frequency cannot be determined. C. The media buyer will not be able to maximize reach even if he or she has established a minimum frequency goal. D. The media buyer can only calculate average frequency from these figures, and average frequency is often misleading. E. The media buy will be cost-effective.
78. (p. 338) Which of the following is an example of a marketing factor that has been shown to be important in determining advertising frequency levels? A. message uniqueness B. clutter C. purchase and usage cycles D. media scheduling E. message complexity See Figure 10-23.
10-21
Chapter 10 - Media Planning and Strategy
79. (p. 338) Greater frequency levels of exposure would be necessary if: A. the purchase and usage cycle is short B. the message is unique C. a product, rather than an image, is being sold D. the vehicle is relatively uncluttered E. any or all of the above conditions exist See Figure 10-23
80. (p. 338) Which of the following magazines would be LEAST likely to enhance the creativity of an advertising message because the magazine does not create a mood that carries over to its communications? A. Surfing B. Reader's Digest C. Gourmet D. The New Yorker E. Mademoiselle
81. (p. 338) Why should an effective media strategy be flexible? A. due to the potential development of new advertising media B. due to an alteration of a competitor's media schedule C. due to the unavailability of the desired medium D. due to a drop in the ratings of a show previously on the media schedule E. due to all of the above
82. (p. 339) Advertising and promotional costs can be categorized in two ways. They are: A. relative cost and absolute cost B. net cost and gross cost C. fixed and variable costs D. message cost and media cost E. full costing and partial costing
10-22
Chapter 10 - Media Planning and Strategy
83. (p. 339) _____ of the medium or vehicle is the actual total cost required to place the message. A. Net contribution margin B. Net cost C. Absolute cost D. Relative cost E. Cost per media (CPM)
84. (p. 339) _____ refers to the relationship between the price paid for advertising space or time and the size of the audience delivered. A. Net contribution margin B. Net cost C. Absolute cost D. Relative cost E. Cost per media (CPM)
85. (p. 339) _____ is used to compare media vehicles. A. Net contribution margin B. Net cost C. Absolute cost D. Relative cost E. Cost per media (CPM)
86. (p. 339) Cost per thousand is a measure of the ______ of a particular media vehicle. A. reach B. absolute cost C. relative cost effectiveness D. frequency E. continuity
10-23
Chapter 10 - Media Planning and Strategy
87. (p. 340) CPM is an expression of ______ for various media vehicles. A. relative cost B. absolute cost C. reach D. frequency E. mode
88. (p. 340) ______ is an attempt to provide some standardization of relative costing procedures for making media selections. A. Daily inch rate B. Cost per repetition (CPR) C. Cost per ratings point (CPRP) D. Absolute cost E. Cost per thousand (CPM)
89. (p. 340) For newspapers, the cost efficiency formula is based on: A. the pass-along rate B. GRPs C. column inches D. the daily inch rate E. the absolute reach
90. (p. 340) In purchasing time on television, it often becomes difficult to determine the print equivalent cost. As a result, some television rate cards now express costs in terms of _____ so as to provide a comparable base. A. reach B. frequency C. GRPs D. CPM E. absolute cost
10-24
Chapter 10 - Media Planning and Strategy
91. (p. 342) According to _____, a media buyer for a manufacturer of paintball guns would be better satisfied with the ad's performance if he or she purchased an ad in Paintball Sports magazine rather than Sports Illustrated. A. the theory of absolute cost B. the concept of effective reach C. target CPM (TCPM) D. the GRP measurement E. none of the above
92. (p. 342) A retailer wants to run an ad announcing that the new Harry Potter book will be available at the store next Saturday. There are two newspapers in the community in which the retailer operates. An ad in Newspaper A will cost $500, and an ad in Newspaper B will cost $375. Newspaper A has a circulation of 10,000, and Newspaper B has a circulation of 8,000. After calculating the CPM, you know: A. Newspaper A is the more cost-effective buy B. both newspapers are equally cost-effective C. Newspaper B is the more cost-effective buy D. neither newspaper is cost-effective For the most cost-effective buy: ($500/10,000) x 1,000= $50. For both newspapers an equally cost-effective buy: ($375)/8,000) x 1,000 = $46.875
93. (p. 342) Magazine A has a cost for a full-page ad of $10,000 and a circulation figure of 5,000,000. Of these 5,000,000 subscribers, 40 percent are tennis buffs. Magazine B has a cost for a full page of $10,000 and a circulation of 3,000,000. Of the 3,000,000 subscribers 75 percent are tennis buffs. If you sold tennis racquets and wanted to compare the CPM effectiveness of these magazines, which would you choose? A. Magazine A B. Magazine B C. Magazine A would be just as effective as Magazine B D. more information is needed on audience size E. more information is needed on costs For Magazine A: 5,000,000 x 40 % = 2,000,000. (10,000/2,000,000)*1,000 = $5. For Magazine B: $3,000,000 x 75 percent = 2,225,000.
10-25
Chapter 10 - Media Planning and Strategy
94. (p. 342) A retailer wants to advertise its "Back-to-School" sale in a city that has two daily newspapers. There are 450,000 subscribers to Newspaper A and 520,000 subscribers to Newspaper B. The two-page ad in Newspaper A costs $20,000, and the same ad will cost $22,000 in Newspaper B. What else would the retailer need to know to compare the CPM effectiveness of these two newspapers? A. which newspaper has readers who have school-aged children B. the pass-along readership of each C. the CPP for both D. the daily inch rate E. the socioeconomic status of subscribers to each newspaper
95. (p. 342) With which of the following media would you find CPRP used to compare cost figures? A. magazine B. transit C. newspaper D. billboard E. television
96. (p. 342) The major problem with the use of readers per copy figures is: A. determining pass-along rates B. determining time spent reading the magazine C. calculating cost estimates efficiently D. determining an efficient way to estimate the effects of sweep periods E. calculating CPRP
97. (p. 342) In order to compare the relative costs between two print media, an advertiser needs to use: A. reach B. frequency C. GRPs D. CPM E. BDI
10-26
Chapter 10 - Media Planning and Strategy
98. (p. 342) The advertiser needs to know _____ to determine how many readers an advertiser gets for every dollar spent in print media. A. the pass-along readership B. cost per point C. frequency estimates D. gross ratings points E. average frequency
99. (p. 342) CPM is potentially an underestimate of cost efficiency because of: A. waste coverage B. the daily inch rate C. the pass-along rate D. the relative cost E. all of the above
100. (p. 342) The pass-along rate refers to the: A. newspaper advertising rate charged to manufacturers by retailers placing ads for them B. television advertising rate charged to national advertisers C. number of persons to whom a magazine copy has been given and who have read it D. magazine advertising rate for throw-away publications E. percentage of people who skip over an ad while reading a publication
101. (p. 342) The evaluation and follow-up stage of media planning: A. is the easiest stage for the media planner B. is an imperative if an organization is to evaluate its performance C. is unnecessary in most situations due to problems with comparing media vehicles D. is typically done most efficiently with computers E. must be foolproof
10-27
Chapter 10 - Media Planning and Strategy
102. (p. 343) What do The Da Vinci Code, Special K, and Tony Bennett have in common? A. They all sell food. B. They all sell intangible products. C. Adweek announced they were all winners of its best annual media plan contest. D. They use the same advertising vehicles. E. They all determine the effectiveness of their advertising based on absolute cost. See IMC Perspective 10-2.
103. (p. 344) Which of the following is NOT an advantage inherent in the selection of newspapers as the media vehicle? A. longevity B. low cost C. timeliness D. high coverage E. short lead time See Figure 10-30.
104. (p. 344) Which medium offers the most target selectivity? A. radio B. outdoor C. direct mail D. newspapers E. magazine See Figure 10-30.
10-28
Chapter 10 - Media Planning and Strategy
105. (p. 344) When the objective is to attain maximum coverage of a local market, which form of advertising would be most effective? A. outdoor B. television C. radio D. magazine E. newspaper See Figure 10-30.
106. (p. 344) When trying to attain maximum coverage of the entire U.S. market, which form of advertising would be most effective? A. radio B. television C. newspaper D. outdoor E. magazine See Figure 10-30.
107. (p. 344) In terms of media vehicles, ______ would be most efficient medium for the "Got Milk" slogan. A. television B. interactive media C. radio D. outdoor E. newspapers See Figure 10-30.
10-29
Chapter 10 - Media Planning and Strategy
108. (p. 344) Which media vehicle is described as having no valid measurement techniques, a flexible message platform, and limited creative capabilities? A. television B. interactive media C. radio D. outdoor E. newspapers See Figure 10-30.
10-30
Chapter 11 - Evaluation of Broadcast Media
Chapter 11 Evaluation of Broadcast Media
Multiple Choice Questions 1. (p. 350) The increasing use of digital video recorders (DVRS): A. will likely benefit cable companies more than the broadcast networks B. threaten to make the traditional television advertising business model obsolete C. provide Internet viewers with alternative designated market areas D. suggests scatter market research will include more zappers and fewer adjacent zippers E. increase share of audience for image transfer cumulative spot advertisers See opening vignette.
2. (p. 349) New Nielsen data refute the myth that nearly all digital video recorders (DVR) viewers: A. skip through the advertisements B. are different from people meter viewership C. prefer broadcast programs over cable choices D. alternate between live broadcasts and previously recorded programs E. engage in double-tasking, working on their computers while watching television See opening vignette.
3. (p. 349) The new Nielsen television rating system, C3: A. combines cable, commercial, and collective advertising viewership B. creates an average viewership for the three major television networks C. coordinates scatter market advertising with national spot and national designated advertising D. measures average commercial live viewership and up to three days later E. measures cume in three distinct video media alternatives See opening vignette.
11-1
Chapter 11 - Evaluation of Broadcast Media
4. (p. 351) Advertisers who want the ability to demonstrate how their product operates and actually show its use are most likely to choose: A. radio B. television C. direct mail D. magazines E. newspapers
5. (p. 351-352) Television is considered an excellent advertising medium because of: A. its ability to combine visual images with sound and motion B. the tremendous creative flexibility and opportunities available through television C. its ability to convey a mood or image for a brand D. its value in demonstrating a product or service E. all of the above
6. (p. 352) Television is a popular advertising medium among companies selling products and services that are consumed by mass markets because it: A. has such a low absolute cost B. has the ability to reach large audiences in a relatively cost efficient manner C. has a high level of geographic selectivity D. is very easy to develop creative television advertising E. has no impact on the image of a brand
7. (p. 352) Which of the following products is most likely to be advertised on popular television shows such as Let's make a Deal, American Idol, and Dancing with the Stars? A. gardening equipment B. curry mixes C. Corvette automobiles D. Pillsbury bread products E. fishing lures
11-2
Chapter 11 - Evaluation of Broadcast Media
8. (p. 352) Which of the following changes has increased the likelihood consumers may avoid seeing television commercials on the major networks? A. the increased number of channels, which give consumers more viewing, options B. the penetration of VCRs and DVDs into homes C. the increase in the use of remote control devices for TV sets D. the increase in the use of PVRs E. all of the above
9. (p. 353) The major criticism of Super Bowl advertising is: A. limited reach B. excessive pre-game hype C. the increased use of DVRs D. the cost E. decline in interest among Americans for this sporting event See IMC Perspective 11-1.
10. (p. 353) Many advertisers are using Super Bowl ads as: A. part of an integrated market communications plan B. an opportunity to win advertising creativity awards C. an alternative to print media D. as an opportunity to collect demographic data E. all of the above See IMC Perspective 11-1.
11. (p. 354) Mercedes Benz automobiles runs commercials for its expensive automobiles on the A&E cable channel, which reaches a highly educated and upscale audience. This is an example of how _____ is possible through television. A. low absolute cost B. selectivity C. clutter D. creativity E. permanence
11-3
Chapter 11 - Evaluation of Broadcast Media
12. (p. 354) Audience selectivity on television is possible due to: A. the use of PVRs B. program content C. zipping and zapping D. the use of interconnects E. a market penetration market growth strategy
13. (p. 352-354) Which of the following is NOT an advantage of television as an advertising medium? A. the creative options available B. its mass coverage and cost effectiveness for reaching large markets C. the captivity of the television viewing audience, which results in attention to commercials D. the ability to use continuous, flighting or pulsing schedules with television E. geographic flexibility within a local market area
14. (p. 354) Television can offer advertisers selective coverage of target audiences through: A. program content which appeals to specific types of audiences B. broadcast time periods that reach specific types of audiences C. cable networks which reach groups with specific interests D. the use of local or spot commercials in specific market areas E. through all of the above techniques
15. (p. 354) Which of the following televisions shows best illustrates how television provides advertisers with selective coverage of target audiences according to their lifestyles? A. ER B. Grey's Anatomy C. U.S. Open Golf D. local news programs E. Sesame Street Sesame Street is on PBS, which does not have advertisers.
11-4
Chapter 11 - Evaluation of Broadcast Media
16. (p. 354) Which of the following is NOT a limitation associated with the use of television as an advertising medium? A. high costs for airtime B. high costs for production of quality commercials C. limited creative options for developing and presenting advertising messages D. fleeting messages E. commercial clutter
17. (p. 354) Which of the following factors makes it difficult for companies with small advertising budgets to use television as part of their media mix? A. the fact television programs do not reach their target markets B. small ad agencies generally do not know how to produce TV commercials C. the high costs of producing and airing television commercials D. the limited creative options available through television E. none of the above
18. (p. 355) An art gallery in a small town near Chattanooga, Tennessee, is hosting an "outsider artist" sale and wants to invite people from the local area to attend and buy the pieces made by Tennessee artists. The local television station lacks _____ because it also reaches viewers in northwest Georgia and northeast Alabama. A. clutter control B. geographic selectivity C. bursting capability D. noise filters E. zipping capabilities
19. (p. 355) Because most TV commercials last only 30 seconds or less and leave nothing tangible for the viewer to consider, television is described as having _____ messages. A. high-involvement B. fleeting C. creative D. selective E. emotive
11-5
Chapter 11 - Evaluation of Broadcast Media
20. (p. 355) Which of the following statements about the length of television commercials is true? A. Commercials have become longer as the demand for broadcast time dwindles. B. Commercial length is increasing and 60-second spots will become dominant by the end of the decade. C. Commercials became shorter because advertisers turned to shorter spots as a way of controlling their media costs. D. Fifteen-second commercials account for over half of the ads seen on network television. E. The number of 60-second commercials has declined due to a desire by the network to sell more ads and restrict clutter.
21. (p. 355) Which of the following statements about commercial length is true? A. Fifteen-second spots are the most common commercial lengths. 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. All of the above statements about commercial lengths are true.
22. (p. 355) Which of the following statements about 15-second commercials is true? A. There have never been any restrictions on when television networks could show 15-second spots. B. Many advertising people believe 15-second spots are equal to 30-second spots in terms of communication effectiveness. C. Fifteen-second spots are especially useful for advertisers that want to use a repetition strategy. D. Fifteen-second spots typically cost about half the price of 30-second spots. E. All of the above statements about the 15-second commercial are true.
11-6
Chapter 11 - Evaluation of Broadcast Media
23. (p. 355) While watching Entertainment Tonight, Layne became frustrated by all the commercials and promotions for the 11:00 news and upcoming programs. This is an example of the problem created by: A. the limited viewer attention for commercials B. the lack of demographic selectivity of television C. the fleeting nature of television commercials D. clutter E. message source alienation
24. (p. 355) Which of the following has contributed to the problem of advertising clutter on television? A. the increased use of 30-second and 15-second commercials B. the use of split-30 second commercials by some advertisers C. the suspension of the National Association of Broadcasters code authority to limit the amount of time available for commercials D. decisions by networks to increase the number of minutes they make available for commercials E. all of the above
25. (p. 355) Which of the following has contributed to the problem of advertising clutter on television? A. the increased use of 30-second and 15-second commercials B. the use of zipping and zapping techniques by some advertisers C. the mandate of the National Association of Broadcasters to increase the amount of time available for commercials D. decisions by the major networks to decrease the number of minutes they make available for commercials E. all of the above
11-7
Chapter 11 - Evaluation of Broadcast Media
26. (p. 355) Which of the following statements best describes the amount of time available to run commercials on television? A. The amount of time is restricted to 9.5 minutes per hour during prime time and 12 minutes per hour during nonprime time by the National Association of Broadcasters. B. The amount of time is restricted to 12 minutes per hour during prime time and 17 minutes per hour during nonprime time. C. The Justice Department suspended the Code Authority of the National Association of Broadcasters in 1982, but the networks have not altered the number of commercial minutes in their schedules. D. The Justice Department suspended the Code Authority of the National Association of Broadcasters in 1982, and the number of commercial minutes on network television has risen in recent years. E. The AAF Code of Broadcasting is the only regulatory device for TV advertising currently being used.
27. (p. 356) _____ refers to the practice of fast-forwarding through commercials on prerecorded programs, while _____ refers to channel changing via remote control mechanisms. A. Zipping; zapping B. Zapping; zooming C. Zipping; time shifting D. Time shifting; zipping E. Zooming; zipping
28. (p. 356) Rick likes to watch Tremors: The Series on the Sci-Fi channel and the police car chase videos on his local Fox affiliate. Both shows are on Friday night at the same time. When commercials start on one of the shows, he immediately switches to the other. Rick is engaged in: A. time shifting B. zooming C. encoding D. zipping E. zapping
11-8
Chapter 11 - Evaluation of Broadcast Media
29. (p. 356) Parker videotapes the television show My Name is Earl, which is shown on Tuesday nights on her local WB station, so she can fast forward through the commercials. Parker engages in: A. time shifting B. zooming C. encoding D. zipping E. zapping
30. (p. 356) Ethnographic research is a type of observational research in which the researcher actually may visit consumers' homes and watch them using the product being researched._____ would be an ideal subject for ethnographic research. A. Clutter content analysis B. Zipping and zapping C. Flighting and pulsing D. Bursting and flighting E. Narrowcasting
31. (p. 356) Research has shown the demographic group that engages in the highest level of commercial zapping is: A. older adults B. preteens C. young adult females D. young adult males E. older women
32. (p. 357) Which of the following has contributed to the increased zapping of television commercials? A. the use of remote control devices for most TV sets B. the emergence of 24-hour continuous format programming on cable television C. the increasing length of television commercial breaks D. the increased use of DVRs and video on demand technologies E. all of the above
11-9
Chapter 11 - Evaluation of Broadcast Media
33. (p. 357) Advertisers can inhibit consumers' zapping commercials by: A. lobbying to have remote control devices banned B. producing creative commercials that are meaningful to consumers and that attract and hold their attention C. devising shorter commercial formats D. using more infomercials E. advertising more on cable television
34. (p. 357) One tactic used by TV networks to hold viewers' attention and inhibit zapping is to: A. increase the number of commercials during a break B. shorten the commercial breaks C. create "hybrid" pod commercial breaks that are part promotion and part ads D. convince advertisers to be the sole sponsor of a show like Hallmark does E. change the standard commercial format to 10-seconds
35. (p. 357) The pervasiveness and intrusive nature of _____, as an advertising medium, contributes to the high level of distrust consumers have for the ads that appear in it. A. radio B. television C. newspapers D. direct response E. magazines
36. (p. 357) The challenge for the television industry is how to accommodate the demand for alternative viewing methods and: A. increase the integration of television advertising with coordinated newspaper dayparts B. soften the impact of increased consumer selectivity C. capture revenue from them while protecting their traditional advertising business model D. offer alternative program rating point systems utilizing affiliate network zap compression E. alternate personal selling with promotional tie-ins
11-10
Chapter 11 - Evaluation of Broadcast Media
37. (p. 358) The WB has assembled a group of affiliated independent television stations to which it supplies programming and other services. The WB is an example of a(n): A. syndicated station B. super station C. television network D. cable station E. affiliating network
38. (p. 358) When a national advertiser runs a commercial on a prime time program that is seen all over the country, _____ advertising is being used. A. network B. affiliate C. aggregated D. spot E. up-front
39. (p. 358) _____ are primarily independently owned and are contracted to preempt time during specified hours for programming provided by the networks that carry national advertising within their programming. A. Satellite networks B. Local nets C. Affiliates D. Station reps E. Regional networks
40. (p. 358) WSIX in Nashville, WDEF in Chattanooga, and WGNX in Atlanta all show CBS programming. These local television stations that are associated with national television networks are known as: A. satellite networks B. local nets C. affiliates D. station reps E. regional networks
11-11
Chapter 11 - Evaluation of Broadcast Media
41. (p. 358) Which of the following statements about network advertising is true? A. Using network advertising can help simplify the purchase of television media time for national advertisers. B. The major networks offer the most popular programs and still dominate the prime-time viewing period. C. The high cost of network time can be a drawback to advertisers with limited media budgets. D. Advertisers use network advertising to reach large audiences with one media buy. E. All of the above statements about network advertising are true.
42. (p. 358) Which of the following statements about network advertising is true? A. Using network advertising significantly complicates the purchase of television media time for national advertisers. B. The networks do not share their advertising revenue with affiliates that allowed the ads to be shown on their stations. 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 network and local affiliates when they want to make a media buy. E. All of the above statements about network advertising are true.
43. (p. 359) Univision and Telemundo are: A. the two biggest rating services for Hispanic consumers B. satellite systems that allow cable channels to convert shows that originally were presented in English to Spanish C. the two largest Spanish-language television networks in the United States D. the two largest advertisers on Spanish-language stations E. both owned and operated by Time-Warner See Diversity Perspective 11-1
11-12
Chapter 11 - Evaluation of Broadcast Media
44. (p. 361) The buying period that takes place prior to the upcoming television season and where networks sell much of their commercial time is referred to as: A. the network market B. the regional market C. pre-screenings D. previews E. the up-front market
45. (p. 361) In order to get advertising time on the most popular shows, major television advertisers such as Coca-Cola, Ford, General Motors and State Farm are generally forced by the biggest agencies to participate in the _____ market. A. up-front B. continual C. scatter D. interconnected E. local
46. (p. 361) The buying period for television advertising time that runs throughout the television season is known as the _____ market. A. up-front B. continual C. scatter D. interconnected E. local
47. (p. 361) _____ is the term used for local television station commercials in which the various individual stations negotiate directly with the advertisers. A. Network advertising B. Spot advertising C. Regional advertising D. Syndication E. Sponsorship
11-13
Chapter 11 - Evaluation of Broadcast Media
48. (p. 361) All non-network television advertising done by a national advertiser is known as _____ advertising. A. up-front B. national spot C. local D. regional E. non-cancellation
49. (p. 361) National advertisers may use spot television advertising to: A. concentrate advertising in areas where market potential is the greatest B. concentrate advertising in areas where more ad support is needed C. advertise in test market areas D. offer support and cooperative advertising to local dealers and retailers E. do all of the above
50. (p. 361) _____ are individuals who act as salespersons for a number of local stations and represent them in their dealings with national advertisers. A. Station managers B. Affiliates C. Negotiators D. Station reps E. Sponsors
51. (p. 361) Which of the following statements describes a problem encountered by national advertisers when using spot advertising? A. Spot advertising does not allow them to adjust to local market conditions. B. Spot advertising cannot be used as part of their cooperative advertising programs. C. Spot advertising is easy to acquire since time is purchased from a number of local stations. D. There are more variations in the pricing policies of local stations than networks. E. All of the above statements describe a problem encountered by national advertisers when using spot advertising.
11-14
Chapter 11 - Evaluation of Broadcast Media
52. (p. 361) Which of the following statements about spot advertising is true? A. Spot advertising is subject to less commercial clutter than network advertising. B. Spot advertising is confined to station breaks between programs on network-originated shows. C. In terms of the communications process, spot advertising is easier to decode than network advertising. D. Only local advertisers use spot advertising. E. None of the above statements about spot advertising is true.
53. (p. 361) Which of the following statements about spot advertising is true? A. Spot advertising offers national advertisers flexibility in adjusting to local market conditions. B. Spot advertising is totally confined to station breaks between programs on network originated shows. C. Spot advertising is subject to less clutter than network advertising. D. Spot advertising is easier to buy than advertising on national networks. E. All of the above statements about spot advertising are true.
54. (p. 361) Most national advertisers: A. use only network advertising B. use only national spot advertising C. prefer spot advertising because of lower rates, less clutter, and more flexibility D. use both network and spot advertising and try to effectively combine the two E. prefer to use only network advertising and only buy spot advertising in markets where there are no network stations
55. (p. 362) _____ are shows that are sold or distributed on a station-by-station, market-bymarket basis. A. Spot broadcasts B. Televised advertorials C. Affiliate programs D. Participation programs E. Syndicated programs
11-15
Chapter 11 - Evaluation of Broadcast Media
56. (p. 362) _____ are reruns of network shows that are bought by individual stations to broadcast. A. Off-network syndications B. Sponsorships C. First-run syndications D. Network spots E. Local syndications
57. (p. 362) When Dodi watches old episodes of Friends and Everybody Loves Raymond on WVLD while she eats her evening meal, she is watching: A. off-network syndications B. sponsorships C. first-run syndications D. network spots E. local syndications
58. (p. 362) Which of the following statements about off-network syndication is true? A. Off-network syndicated shows are an important source of quality programming for local stations. B. Off-network syndicated shows an insignificant source of revenue to the studios that produce them. C. Off-network syndicated shows are usually low-budget, low quality programs. D. The FCC prime-time access rule forbids independent stations from carrying off-network syndicated shows between 7:00 and 8:00 P. M. E. None of the above statements about off-network syndication is true.
59. (p. 362) Shows produced specifically for the syndication market such as Judge Judy and Entertainment Tonight are referred to as: A. off-network syndication B. first-run syndication C. special-purpose syndication D. network-supported syndication E. reruns
11-16
Chapter 11 - Evaluation of Broadcast Media
60. (p. 362) The arrangement under which syndicated programs are offered free or at a reduced rate to local stations but with some advertising time presold to national advertisers is known as: A. off-network syndication B. first-run syndication C. barter syndication D. sponsorship E. participations
61. (p. 362) Barter syndication is also called: A. advertiser-supported syndication B. station-sponsored syndication C. participation syndication D. first-run programming E. presold programming
62. (p. 362) Which of the following statements about syndication is true? A. Syndicated programs are of limited value to advertisers since they reach a limited number of viewers. B. There is basically one 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.
63. (p. 362) Under a ____ arrangement, national advertisers can participate in the syndication market with the convenience of a network-type buy while local stations get free programming and advertising time to sell to local or spot advertisers. A. sponsorships B. participations C. barter syndication D. local syndication E. national syndication
11-17
Chapter 11 - Evaluation of Broadcast Media
64. (p. 362) Which of the following statements about syndication is true? A. The advertising revenue generated by syndicated programs is insignificant compared to that of the three major networks. B. Syndicated programs never draw larger viewing audiences than network shows. C. Many national advertisers use syndicated shows to target certain audiences. D. Syndicated programs have less commercial time and thus less clutter than network shows. E. Children and teenagers are very easy to reach through syndicated programs.
65. (p. 363) A disadvantage associated with the use of syndicated shows is: A. increased clutter B. more zipping and zapping C. their popularity among Gen Xers D. the absence of programming at undesirable times E. none of the above
66. (p. 363) Which of the following reasons would BEST explain why a company would be interested in advertising its good or service on a syndicated show such as Deal or No Deal?" A. The game show is shown during prime time on the three major networks. B. The game show reaches a young adult audience, which is important to advertisers and is a difficult market to reach. C. The game show has attractive actors and actresses which helps enhance the image of products advertised on the show. D. The game show has much less clutter than network shows. E. The game show is viewed as educational and allows advertisers to reach a demographic segment that is elusive.
67. (p. 363) In the early days of television, the production and content of most television programs was the responsibility of: A. the networks B. the local affiliate C. corporations that sponsored the shows D. independent production companies E. the FCC
11-18
Chapter 11 - Evaluation of Broadcast Media
68. (p. 363) Why does a company like Hallmark choose to sponsor the appearance of the television adaptation of classic books such as Sara: Plain and Tall? A. Sponsorship allows Hallmark to capitalize on the prestige of a high-quality program. B. No other advertiser could afford the sponsorship costs. C. The shows are never shown during a sweeps period, and therefore, sponsorship was more affordable. D. The network would not allow the shows to appear on television unless they had a sponsorship from an approved company. E. All of the above are reasons why Hallmark chose to sponsor television adaptations of classic books.
69. (p. 363) With _____, advertisers assume responsibility for the production and usually the content of the program as well as the advertising that appears within it. A. participations B. sponsorships C. adjacencies D. syndications E. countertrades
70. (p. 363) Companies prefer sponsorship arrangements for buying advertising time because sponsorship: A. allows companies to capitalize on the image of a high-quality program B. gives the advertiser less control over the placement and the length of its commercials C. is relatively inexpensive D. means the advertiser can run more commercials per hour since time regulations do not apply E. broadens advertising reach, saves money, and reaches a more aggregated market when compared to buying national spots
11-19
Chapter 11 - Evaluation of Broadcast Media
71. (p. 363) 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 and take a portion of the commercial spots during these shows. The nine advertisers are using a(n) _____ type of advertising arrangement. A. sponsorship B. participation C. adjacency D. syndication E. countertrade
72. (p. 364) Most network television advertising time is sold as: A. sponsorships B. participations C. adjacencies D. spot announcements E. affiliated offerings
73. (p. 350) Advertisers have little control over the placement of their commercials within a program when they advertise using a(n) _____ arrangement. A. sponsorship B. participation C. daypart D. exclusivity E. run-of-station (ROS)
74. (p. 364) The television time period available to local stations right before or after network programming is called: A. adjacencies B. dayparts C. access time D. less-than-prime time E. in-betweens
11-20
Chapter 11 - Evaluation of Broadcast Media
75. (p. 364) _____ are the various time periods or segments into which a broadcast day is divided. A. Adjacencies B. Participations C. Spots D. Dayparts E. Hours
76. (p. 364) Morning, daytime, prime time and late fringe are all examples of: A. television dayparts B. radio dayparts C. types of syndication D. run-of-station spots E. none of the above
77. (p. 365) All of the following are common television dayparts EXCEPT: A. morning B. daytime C. early fringe D. prime-time E. drive-time See Figure 11-4.
78. (p. 365) Programs such as The Tonight Show with Jay Leno and ABC's Nightline are aired during the _____ daypart. A. early fringe B. prime-time access C. prime-time D. late fringe E. evening
11-21
Chapter 11 - Evaluation of Broadcast Media
79. (p. 365) Which television daypart has the highest rates and is dominated by national advertisers? A. morning B. early fringe C. prime-time D. late news E. late fringe
80. (p. 365) The television daypart that attracts the largest viewing audience is: A. daytime B. early fringe C. late news D. prime-time access E. prime-time
81. (p. 365) _____ are independent local television stations that send their signals via satellite to cable operators to make available to their subscribers. A. Networks B. Interconnects C. Superstations D. Affiliates E. Cable operators
82. (p. 365) The growth of cable television has led to all of the following EXCEPT: A. more viewing options for cable households B. greater audience fragmentation for television C. lower viewing audiences for the three major TV networks D. less opportunity to reach specific target audiences E. greater competition between cable channels and networks for advertising dollars
11-22
Chapter 11 - Evaluation of Broadcast Media
83. (p. 365) The major reason for the decline in the viewing audiences of the three major networks is: A. the widespread use of videocassette recorders B. the growth of cable television C. poor programming D. the exponential growth of clutter E. changes in cultural values, which are reducing television viewing time
84. (p. 367) An arrangement where a group of cable systems in a geographic area are joined together for advertising purposes is known as: A. a geographic connection B. an interconnect C. an adjacency D. multiplexing E. cable syndication
85. (p. 367) The growth in spot cable advertising has been facilitated by the use of: A. LANs. B. multiplexing C. interconnects D. interstitials E. clutter minimizers
86. (p. 367) 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 a great deal of research information on demographics, lifestyles, and viewership patterns. E. The initial popularity of cable television has passed, and network television is once again the more popular medium.
11-23
Chapter 11 - Evaluation of Broadcast Media
87. (p. 367) Why are advertisers interested in cable as an advertising medium? A. the opportunities cable offers for narrowcasting B. cable's low cost relative to network television C. the flexibility available for advertising or cable D. cable generally does not require advertisers to make large upfront commitments E. all of the above
88. (p. 368) Advertising on television to specialized audiences is known as _____ and has been made possible by: A. narrowcasting; network television B. broadcasting; cable television C. narrowcasting; cable television D. multiplexing; cable television E. broadcasting; zapping
89. (p. 369) Which of the following statements about ESPN is true? A. The programming at ESPN is starting to seem stale to its viewers. B. Advertising on ESPN targets primarily "soccer moms." C. ESPN is an acronym for Exercise and Sports Program Network D. ESPN has recently begun historical programming. E. ESPN re-vitalized its programming by outbidding the networks for major sports programming. See IMC Perspective 11-2
90. (p. 369) Imagine you have developed a computer game that has as its target market men between the ages of 18 and 24. You would be most likely to reach this market segment if you ran the ads for this computer game: A. during early morning and late afternoon drive time B. on ESPN C. on A&E, the Weather Channel, and CNN Headline News D. during the late evening network news E. during syndicated game shows See IMC Perspective 11-2
11-24
Chapter 11 - Evaluation of Broadcast Media
91. (p. 369) Which of the following describes a limitation of cable television that advertisers need to know about? A. opportunities for narrowcasting B. greater flexibility in the types of commercials which can be used C. lower costs D. a lack of penetration, particularly in major markets E. limitations on the length of commercials
92. (p. 370) Cable networks such as CNN that can transmit multiple channels from one network engage in: A. multiplexing B. interconnects C. single sourcing D. multiple sourcing E. adjacencies
93. (p. 370) One of the biggest threats to the cable television industry is: A. competition from direct broadcast satellite (DBS) services B. the creation of consortiums of advertisers for the purpose of improving network television C. the exponential growth in the use of VCRs D. FCC rulings on lengths and commercial placements E. cultural trends that move people away from the television screen to the computer screen
94. (p. 370) Which of the following statements about the cable television industry is true? A. Experts predict cable's popularity as an advertising medium will continue to decline. B. The cable industry is unaffected by the direct broadcast satellite (DBS) services because of FCC regulations forbidding DBS services to carry local television stations. C. The cable industry is highly regulated by the federal government. D. Many cable companies have become multinational companies offering programming in many foreign countries. E. Direct broadcast satellite (DBS) services offer fewer channel choices than most cable television systems.
11-25
Chapter 11 - Evaluation of Broadcast Media
95. (p. 371) The price for commercial time charged by a television network is largely a function of a program's: A. average frequency B. production costs C. audience size and composition D. duplicated reach E. overlap
96. (p. 371) The sole source of network television and local audience information is: A. Arbitron Co. B. A. C. Nielsen Co. C. RADAR D. Smart-TV E. Burke Research
97. (p. 371) The number of households in a market area that own a television set is referred to as: A. households using television B. the universe estimate (UE) C. a program rating D. households owning televisions E. audience size
98. (p. 371) The weekly Nielsen report shows that 20 million of the 97 million television households in the U.S. watched American Idol last week even though only half of the households were actually watching television during this time period. The program rating for the show is approximately: A. 18 B. 21 C. 29 D. 42 E. cannot be determined from the information given
11-26
Chapter 11 - Evaluation of Broadcast Media
99. (p. 371) _____ is defined as one percent of all the television households in a particular area tuned to a specific program. A. A program rating B. A ratings point C. Household using television (HUT) D. Share of audience E. None of the above
100. (p. 372) The percentage of homes in a given area that are watching television during a specific time period is referred to as: A. households using television (HUT) B. ratings point C. program rating D. share of audience E. total audience
101. (p. 372) The Boston designated market area (DMA) 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 the Boston Celtics in a playoff game. The program rating for the Celtic game in the Boston DMA is _____ while the share of audience is _____. A. 25; 15 B. 15; 25 C. 33; 20 D. 15; 60 E. cannot be determined from the information given
102. (p. 372) Assume the television show Grey's Anatomy had an average national program rating of 18 during the 2007 season. This means that: A. an average of 18 million households watched Grey's Anatomy B. 18 percent of the households watching television were tuned to Grey's Anatomy C. an average of 18 percent of the television households in the country were tuned to Grey's Anatomy D. an average of 18 million households watched Grey's Anatomy for at least five minutes E. 18 percent of the households in the United States watched the entire program
11-27
Chapter 11 - Evaluation of Broadcast Media
103. (p. 372) Assuming there are 97 million households in the United States with televisions and an average of 2 persons per household, a program with a rating of 20 would be seen by how many viewers? A. 19.4 million viewers B. 20 million households C. 38.8 million households D. 39 million viewers E. cannot be determined by information given
104. (p. 372) The share of a television audience indicates the: A. percent of the defined target market that is exposed to a message at least once during the relevant time period B. percent of those television sets in use at any time that are watching a particular program C. average number of exposures of a message received by each member of the target market D. percent of all households owning a television set that are watching a particular program E. number of people who responded to a televised direct-response ad
105. (p. 372) Which of the following statements about program ratings and share of audience measures is true? A. Program ratings are always higher than share of audience. B. Program ratings and share of audience are usually the same. 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. None of the above statements about program ratings and share of audience measures is true.
11-28
Chapter 11 - Evaluation of Broadcast Media
106. (p. 372) 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 the San Diego Chargers versus Pittsburgh Steelers NFL football game on Channel 7. The share of audience for the game would be: A. 22 B. 44 C. 50 D. 200 E. Cannot be determined from information given
107. (p. 372) Today the Nielsen Television Index provides weekly estimates of networks and major cable viewing audiences on a national level through the use of an electronic device that measures what is being watched and by whom. This device is called a(n): A. audimeter B. people meter C. electronic diary D. market survey E. focus group
108. (p. 373) _____ provides local audience measurement for television. A. A. C. Nielsen Company's Nielsen Station Index (NSI) B. RADAR C. Arbitron D. ADI E. Burke Research
109. (p. 373) The Nielsen Station Index (NSI) refers to local television markets as: A. areas of dominant influence B. metropolitan rating areas (MRAs) C. designated market areas (DMAs) D. local markets E. geodemographic areas
11-29
Chapter 11 - Evaluation of Broadcast Media
110. (p. 373) The ratings periods during which viewing audiences in every television market are measured are known as: A. program ratings B. designated market periods C. audience measurement intervals D. audience shares E. sweeps
111. (p. 374) One of the concerns over the method used by A. C. Nielsen to measure television viewing audiences centers around: A. the sample size used to measure national viewing audiences B. measuring viewership of commercials not just programs C. the use of the people meter to measure national viewing audiences D. an inability to measure people viewing TV outside the home environment E. an inability to measure whether people are actually watching or simply have the television on for company
112. (p. 374) In 2006, Nielsen Media Research introduced a new media rating system, A2/M2, or: A. All Ads, Make Meaning B. Average Audience, Marketing Management C. Actual Audience, Measured Meaning D. Audience, Access, Monitoring Mentality E. Anytime, Anywhere Media Measurement
113. (p. 374) Nielsen Media Research's new A2/M2 system is designed to measure ______________, the focused mental and emotional connection between a consumer, a media vehicle, and a brand's message. A. excitement B. engagement C. entanglement D. entrepreneurship E. entropy
11-30
Chapter 11 - Evaluation of Broadcast Media
114. (p. 375) One of the surprising findings of Nielsen's Extended Home study was: A. the estimated prime-time television viewing habits of extended home consumers was significantly lower than anticipated B. that traditional age college students watch as much television as non-college students in the same age group C. the extended home estimates were as accurate as other measurements using diaries. D. that more college watch television in bars than dorm rooms E. male college students are more likely to watch Oprah and female college students are more likely to watch South Park See IMC Perspective 11-3.
115. (p. 375) Television networks welcome new viewership measures like Nielsen's Extended Home study, arguing that: A. considerable viewership occurs hotel rooms, bars and airports B. most advertisers and agencies have no confidence in the current system of measurement C. fewer consumers live at home D. Local stations are encouraging viewership through non-traditional media E. this will reduce the cost of advertising See IMC Perspective 11-3.
116. (p. 374) Many advertising professionals want the primary focus of new technology for measuring television viewing audiences to be on: A. getting better measures of who watches specific programs B. measuring the size of viewing audiences for commercials rather than just programs C. determining what types of commercials people prefer to watch D. determining how many people zip through prerecorded programs E. monitoring the whole 24-hour day, not just prime-time
11-31
Chapter 11 - Evaluation of Broadcast Media
117. (p. 374) The increasing number of channels available to TV viewers and the prevalence of remote control operated television sets lead to: A. program ratings through the audimeter B. the development of a system to measure commercial ratings rather than just program ratings C. share of audience measures D. total audience measures E. the people meter being replaced by the personal participation direct audience collection system
118. (p. 375) Radio has survived as an advertising medium by: A. competing directly with television B. evolving into a national advertising medium C. evolving into a primarily local advertising medium D. charging higher rates than television E. doing all of the above
119. (p. 375) The relatively low cost of radio advertising time makes it an effective medium through which advertisers can build more _____ into their media schedules. A. absolute cost B. reach and frequency C. inherent drama D. audience selectivity E. spectaculars
120. (p. 375) Which of the following statements about radio as an advertising medium is true? A. Radio is characterized by highly specialized programming that generally appeals to narrow segments of the population. B. Radio has evolved into primarily a local advertising medium. C. Radio advertising revenue exceeded more than $20 billion in 2007. D. Radio has been called the Rodney Dangerfield of media. E. All of the above statements about radio as an advertising medium are true.
11-32
Chapter 11 - Evaluation of Broadcast Media
121. (p. 375) 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 primarily a 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. All of the above statements about radio as an advertising medium are true.
122. (p. 376) Which of the following is NOT an advantage of radio as an advertising medium? A. low cost B. audience selectivity C. flexibility D. listener fragmentation E. great number of integrated marketing opportunities
123. (p. 376) Compared to television, radio has: A. fewer segmentation opportunities B. longer buyer lead times for preparing and placing ads C. greater reach and lower frequency opportunities with individual stations D. more national network advertising E. more of a local flavor
124. (p. 376) Radio offers high levels of audience selectivity because of: A. the wide variety of program formats offered by different stations B. the broadcast overlap of local radio stations C. the transmission capability of the various stations D. its low cost E. image transfer capabilities
11-33
Chapter 11 - Evaluation of Broadcast Media
125. (p. 376) Radio is a very effective medium for reaching: A. teenagers and college students B. non-English-speaking ethnic groups C. infrequent television viewers D. infrequent readers of magazines and newspapers E. all of the above
126. (p. 376) Imagine you have inherited a small motel chain in the New England area. You know you need to buy advertising, but you have a limited budget. Which of the following reasons explain why you would want to use local radio? A. Local radio reaches travelers in their car and is low cost. B. Local radio has a short lead time and the capability to produce inherent drama. C. Local radio allows you to use an aggregated marketing strategy for very little money. D. There is no overlap with local radio stations. E. Local radio is a flexible medium that has short lead times.
127. (p. 376) An advertiser has a limited budget and wants to reach a well-defined target audience in a local market area. Which of the following would you recommend? A. network television B. network radio C. superstations D. local radio E. any of the above
128. (p. 376) When the video portion of a television commercial is implanted into a radio spot this is known as: A. positioning B. image transfer C. visualization D. flexibility E. narrowcasting
11-34
Chapter 11 - Evaluation of Broadcast Media
129. (p. 379) Why do advertisers use the image transfer process in radio advertising? A. to take advantage of vivid musical messages to create images in the mind of radio listeners B. to establish the video image of a television commercial and then use the audio portion of the TV commercial as the basis for a radio campaign C. to transfer the image created by a radio commercial to the point-of purchase D. to transfer the image of celebrities to the advertised brand E. to create brand loyalty through the use of multisensory imaging
130. (p. 379) Mountain Dew often sponsors live radio broadcasts at beaches, sporting events, and festivals in which it sets up booths for sampling and giveaways. This is an example of how Mountain Dew is capitalizing on which advantage offered by radio? A. low relative costs B. integrated marketing opportunities C. mental imagery D. geographic selectivity E. flexibility
131. (p. 379-380) Which of the following does NOT limit radio's effectiveness as an advertising medium? A. limited research data on listening audiences B. difficulty in retaining listener attention to commercials C. chaotic buying procedures when using radio on a nationwide basis D. flexibility in producing and scheduling commercials E. creative limitations because of the absence of a visual image
132. (p. 379-380) Which of the following statements describes a limitation associated with the use of radio as an advertising medium? A. Many car radio listeners change stations during commercials breaks. B. Most radio stations carry 10 to 12 minutes of commercials every hour resulting in high clutter. C. There is limited research data available on individual radio stations since they are small operations and cannot fund detailed studies of their audiences. D. The high number of stations in most markets means there is a great deal of audience fragmentation. E. All of the above are limitations of radio as an advertising medium.
11-35
Chapter 11 - Evaluation of Broadcast Media
133. (p. 380) Which of the following statements describes a limitation associated with the use of radio as an advertising medium? A. The production of radio advertising is expensive. B. The absence of clutter means radio advertising tends to be very uncreative. C. Individual radio stations trying to sell to an advertiser can often cause information overload. D. The high number of stations in most markets means there is a great deal of audience fragmentation. E. All of the above are limitations of radio as an advertising medium.
134. (p. 380) A major threat to conventional broadcast radio is: A. the emergence of satellite radio B. low-powered local radio broadcasting C. the creation of communications cartels D. the fact consumers prefer to pay a subscription fee for their radio E. the ability to zip and zap radio commercials
135. (p. 381) "Commercial-free" blocks of music are popular with many radio stations and contribute to: A. a plethora of distinctive formats B. a lack of feedback C. the absence of dyadic communications D. the inability of radio to support integrated marketing communications E. clutter problems
136. (p. 381) What do Westwood One, ABC, and Premier have in common? A. They all operate DBS services. B. They are currently the three major national radio networks. C. They are developing electronic devices for measuring radio audience listenership. D. Together they own more than three-fourths of the world's radio stations. E. They are the three media specialist groups that buy block radio time.
11-36
Chapter 11 - Evaluation of Broadcast Media
137. (p. 381) The heaviest users of radio as an advertising medium are: A. national service providers B. local advertisers C. national retail chains D. national consumer-products manufacturers and distributors E. tobacco and alcohol advertisers
138. (p. 381) Why would a local radio station air a nationally syndicated program like Rush Limbaugh? A. to increase audience fragmentation B. to cut its real costs C. to increase its appeal to national advertisers D. to bypass problems with clutter E. to do none of the above
139. (p. 381) The largest radio audiences occur during which of the following dayparts? A. morning drive time and evening drive time B. daytime and late evening C. evening drive time and daytime D. nighttime and morning drive time E. all night and daytime
140. (p. 382) Which of the following is NOT an example of a daypart for radio? A. morning drive time B. prime-time C. over night D. daytime E. nighttime See Figure 11-7.
11-37
Chapter 11 - Evaluation of Broadcast Media
141. (p. 382) The major source for radio ratings in local markets is _____ while information on network audience come primarily from ___________: A. RADAR; Arbitron B. Arbitron; RADAR C. Arbitron; A. C. Nielsen D. RADAR; A. C. Nielsen E. A. C. Nielsen; Arbitron
142. (p. 383) The _____ is the average number of people estimated to have listened to a radio station for a minimum of five minutes during any quarter-hour in a time period expressed as a percentage of the survey area population. A. average quarter-hour figure B. cumulative audience C. average quarter-hour rating D. average quarter hour share E. average daily market share
143. (p. 383) _____ 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. Average quarter-hour figure (AQH) B. Average quarter-hour rating C. Average quarter-hour share D. Cumulative audience (Cume) E. Average market share
144. (p. 384) Arbitron: A. focuses primarily on measurement of local radio audiences B. measures listenership to webcasts C. provides radio stations with monthly cume ratings D. competes with RADAR as a source of national network rating numbers E. is accurately described by all of the above
11-38
Chapter 11 - Evaluation of Broadcast Media
145. (p. 384) Statistical Research's Inc.'s RADAR: A. collects information twice a year B. is sponsored by the major national networks C. is a radio audience measurement service D. provides advertisers with time-period measurements for all dayparts E. is accurately described by all of the above
146. (p. 384) Statistical Research's Inc.'s RADAR: A. will eventually replace A. C. Nielsen as the primary collector of television audience measurement B. is sponsored by nine of the largest advertisers in the nation C. primarily measures radio listenership for local radio stations D. provides network audience measures, along with estimates of network audiences for all commercials E. collects information and issues a new report monthly
11-39
Chapter 12 - Evaluation of Print Media
Chapter 12 Evaluation of Print Media
Multiple Choice Questions 1. (p. 389) Major retailers are interested in advertising in college newspapers because: A. college students are intellectually stimulated by the diversity of advertising that appears in college newspapers B. these publications contain no advertising C. it is a way to reach a coveted but elusive target market D. print media is more effective than electronic media in meeting all target markets including college students E. government regulations offer subsidies for advertising in these not-for-profit newspapers See opening vignette.
2. (p. 390) Automobile, electronics and insurance companies are all heavy advertisers in college newspapers because: A. there are many first-time buyers of these products and services among college students B. women are more approachable than men using college media advertising C. many communities have banned outdoor advertising in areas adjacent to colleges D. cross-media advertising works best when preferred position rates are maximized in college media E. college students are a major source of pass-along readership See opening vignette.
12-1
Chapter 12 - Evaluation of Print Media
3. (p. 391) Which of the following statements about newspapers and magazines as advertising media vehicles is true? A. Newspapers are exclusively a local advertising medium. B. Newspapers are primarily a local advertising medium but are also used by national advertisers. C. Magazines are primarily a local advertising medium. D. Magazines are the primary advertising media in terms of ad revenue and number of advertisers. E. Because of the difference in media format, there is no competition between broadcast and print media.
4. (p. 391) The primary advertising medium in terms of both ad revenue and number of advertisers is: A. network television B. radio C. magazines D. newspapers E. direct mail
5. (p. 391) Which of the following statements about newspapers and magazines as advertising media is true? A. Most magazines and newspapers could survive without advertising revenue. B. Newspapers are a primary source of shopping information for many consumers. C. The number of daily newspapers in most cities has been increasing due to a dramatic increase in the amount of readily available advertising revenue. D. Magazines are not really dependent on advertising revenue since they can charge higher prices for their publications. E. All of the above statements about newspapers and magazines as advertising media are true.
12-2
Chapter 12 - Evaluation of Print Media
6. (p. 391) _____ are often referred to as high-involvement media, because they generally require some attention and effort on the part of the consumer to process the information they provide A. Newspapers and magazines B. Newspapers and television C. Magazines and radio D. Radio and television E. Radio and newspapers
7. (p. 391) What does it mean when the text describes newspapers and magazines as highinvolvement media? A. They have to be acquired outside the home. B. Unlike network television, they must be actively sought. C. They are not purchased using routine purchase decision-making techniques. D. They generally require consumers to expend some time and energy to process the information they provide. E. They provide connotative meanings to life.
8. (p. 391) Avia makes athletic shoes. Avia's marketing research has shown there are a large number of serious runners living 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. To reach this market, the best media option would probably be: A. regional editions of general interest magazines such as Time or Newsweek B. the sports section of national newspapers such as USA Today C. regional editions of general sports magazines such as a Sports Illustrated D. regional editions of specialty magazines such as Runner's World E. local television
12-3
Chapter 12 - Evaluation of Print Media
9. (p. 392) Which of the following statements about the role of magazines and newspapers as advertising media vehicles is true? A. The advantages and disadvantages associated with the use of either magazines or newspapers as advertising media vehicles are the same. B. Individual magazines reach a very selective audience and are very valuable for reaching specific types of consumers or market segments. C. Magazines generate most of their total revenue from advertising. D. Business magazines generate most of their revenue from subscriptions and single copy sales and are not really dependent on advertising. E. Both newspapers and magazines are generally considered low-involvement media.
10. (p. 392) More companies buy advertising _____ than in any other medium. A. in newspapers B. in magazines C. on cable television D. on radio E. on network television
11. (p. 392) _____ classifies magazines into three major categories and is the primary reference source for media planners. A. Standard Rate and Data Service (SRDS) B. Simmons Market Research Bureau C. Audit Bureau of Circulations D. Media Mark Research, Inc. E. A. C. Nielsen Co.
12. (p. 392) The acronym SRDS stands for: A. Standardized Reading Development Service B. Standard Rate and Data Service C. Supplementary Rating and Delivery Standards D. Sales Rating and Delivery Standards E. Standard Rating and Delivery Specifications
12-4
Chapter 12 - Evaluation of Print Media
13. (p. 392) According to Standard Rate and Data Service, magazines can be classified as _____ publications. A. consumer, farm, and business B. regional, national, and international C. agrarian, industrial, and specialized D. general, specialized, and niche E. affective, behavioral, and cognitive
14. (p. 392) A magazine can be categorized by: A. the fact that it is only available by subscription B. the fact that it is a monthly publication C. its geographic specialization D. the topics that are covered in the publication E. all of the above
15. (p. 392) Nearly two-thirds of all advertising dollars spent in magazines are spent in _____ magazines. A. consumer B. international C. business D. regional E. national
16. (p. 392) Better Homes & Gardens, Newsweek, and Cosmopolitan are all examples of: A. general interest consumer magazines B. demographically-targeted magazines C. trade publications D. professional magazines E. special interest business magazines
12-5
Chapter 12 - Evaluation of Print Media
17. (p. 392) Natural Health, Paintball Sports, and Guns magazine are all examples of: A. general interest consumer magazines B. special interest consumer magazines C. trade publications D. professional magazines E. special interest business magazines
18. (p. 392) Which of the following industries spends most of its advertising media budget in magazines since it is prohibited from advertising in broadcast media? A. beer B. tobacco C. lingerie D. toiletries E. pharmaceuticals
19. (p. 393) A magazine such as Farm Journal is an example of a _____ while a publication such as National Hog Farmer is a _____. A. general interest farm publication; specialized farm publication B. specialized farm publication; trade magazine C. specialized farm publication; general interest farm publication D. general interest farm publication; special interest consumer magazine E. general interest business magazine; general interest farm publication
20. (p. 393) Why are farm publications not classified with business publications? A. Historically farms have not been perceived as businesses. B. The number of farm magazines, if added to the number of business magazines, would make the category too large. C. Farm magazines are a hybrid of consumer and business magazines. D. The service that did the initial classification of magazines was owned by a farm publication. E. Federal laws require the breakout of farm magazines because subscriptions to these magazines help to determine farm allowances.
12-6
Chapter 12 - Evaluation of Print Media
21. (p. 393) Which of the following is an example of a trade magazine? A. Fortune B. National Law Review C. Farm Journal D. Progressive Grocer E. Architectural Digest
22. (p. 393) Floral Management is a publication aimed at providing information to retail florists so they can manage their stores more efficiently and more profitably. It is an example of a(n) _____ publication. A. general business B. trade C. professional D. industrial E. consumer-oriented
23. (p. 393) Offshore is a publication that provides information on world trends and technology to offshore oil and gas operations. It is an example of a(n) _____ publication. A. general business B. trade C. professional D. industrial E. consumer-oriented
24. (p. 393) Which of the following does Standard Rate and Data Service (SRDS) classify as a general business magazine? A. Forbes B. Drug Store News C. Restaurant News D. Architectural Digest E. Floral Management magazine
12-7
Chapter 12 - Evaluation of Print Media
25. (p. 393) Trade publications are important to advertisers because: A. they provide information on various industries to readers B. they provide an effective way to reach consumers who work in specific businesses C. they provide entertainment to business readers D. much marketing occurs at the trade level, and these publications are important for reaching decision makers E. they are a way of boosting membership in labor organizations
26. (p. 394) Selectivity, reproduction quality, creative flexibility, and prestige are all potential advantages of which advertising medium? A. place-based media B. magazines C. local radio D. billboards E. local newspapers
27. (p. 394) A company that manufactures paintball equipment might prefer to advertise in specialized publications such as Paintball Sports magazine rather than general interest magazines and sports magazines such as Sports Illustrated because of: A. the broader reach of specialized publications B. the greater audience selectivity of specialized publications C. fewer ads and less clutter in specialized publications D. because of the higher degree of pass-along readership E. the creative flexibility available in specialized magazines and not available in more general-interest publications
28. (p. 394) One of the primary advantages of using magazines as an advertising medium is their: A. selectivity B. low clutter level C. limited reach and frequency D. low absolute costs E. long lead time
12-8
Chapter 12 - Evaluation of Print Media
29. (p. 394) The fact that most magazines are published for special-interest groups gives them a high degree of: A. permanence B. flexibility C. selectivity D. reach E. clutter
30. (p. 394) The magazine The Georgia Peace Officer is targeted to everyone in law enforcement in the State of Georgia. As a medium, this magazine offers a manufacturer of bullet-proof vests a high degree of: A. permanence B. flexibility C. selectivity D. reach E. clutter
31. (p. 394) Selectivity in reaching specific target audiences is available in magazines on the basis of: A. demographics B. geographic area C. lifestyle D. interests E. all of the above
32. (p. 394) Modern Maturity, YM, and Seventeen are all magazines that offer advertisers _____ selectivity. A. demographic B. geographic C. lifestyle D. affective E. behavioral
12-9
Chapter 12 - Evaluation of Print Media
33. (p. 396) The Top Line is a Canadian publication targeted to high school teens. It offers Canadian advertisers _____ selectivity. A. demographic B. psychographic C. lifestyle D. affective E. behavioral
34. (p. 396) Advertisers who want to achieve geographic selectivity in their magazine media schedule can do so by advertising in: A. magazines like Chicago and Nashville B. special-interest farm publications C. trade publications D. international editions of magazines only E. general-interest farm magazines
35. (p. 396) Magazines like Los Angeles Magazine and Denver are categorized as: A. demographic publications B. promotional publications C. corporate magazines D. public relations magazines E. none of the above
36. (p. 396) Marketers can achieve geographic selectivity in magazine advertising by using: A. magazines edited for and targeted toward particular regions, cities, or areas B. national editions of major magazines that cover the entire country C. general-interest business publications D. magazines targeted to adults E. any of the above
12-10
Chapter 12 - Evaluation of Print Media
37. (p. 395) Magazines like In Touch and Life & Style offer advertisers _____ selectivity. A. geographic, demographic, and lifestyle B. behavioral and geographic C. only demographic D. demographic and psychographic E. only behavioral See IMC Perspective 12-1.
38. (p. 395) Celebrity magazine industry publishers wonder: A. how long Americans' appetite for celebrity gossip will continue. B. whether male and female teenagers are equally hard to reach with any type of print media C. whether female teenagers can be reached through magazines D. how long Brittany Spears will subsidize their industry E. how many children with Brad and Angelina adopt See IMC Perspective 12-1.
39. (p. 396) Buying ad space in regional editions of national magazines: A. is no longer permissible due to the passage of recent anti-competition legislation B. can reduce an advertiser's cost per thousand for reaching desired audiences C. diminishes the value of pass-along readership D. creates overlapping subscription data E. is correctly described by none of the above
40. (p. 396) Which of the following contributes to the reproduction quality of magazine advertising? A. the high quality of the paper stock used in magazines B. printing processes that provide excellent reproduction of black and white pictures C. prevalent use of color in magazine ads D. ability to reproduce pictures with colors that are replicas of the originals E. all of the above
12-11
Chapter 12 - Evaluation of Print Media
41. (p. 397) The use of a third page that folds out to create an extra large advertising spread in a magazine is called a(n): A. bleed page B. printacular C. gatefold D. page manipulator E. overrun
42. (p. 397) The inside front cover of the Business 2.0 magazine opens up to reveal a large advertising spread on the Cadillac Escalade. This ad is an example of a(n): A. bleed page B. printacular C. gatefold D. page manipulator E. overrun
43. (p. 397) Magazine advertisements that extend to the end of the page rather than leaving a margin around the ad are called: A. gatefolds B. bleed pages C. maximum coverage ads D. overruns E. total page ads
44. (p. 397) An ad for California Almonds is a close-up view of a swirl of white and milk chocolate topped with sliced almonds. The chocolate swirls extend to the very edge of the page. This ad is an example of a(n): A. gatefold B. bleed page C. maximum coverage ad D. overrun E. total page ad
12-12
Chapter 12 - Evaluation of Print Media
45. (p. 397) Novell makes security systems for computer networks. One system it offers recognizes users' fingerprints. An ad for Novell products shows a thumb with the words "Access Granted" painted on it. The blue background behind the thumb extends to the very edge of the page. This ad is an example of a(n): A. gatefold B. bleed page C. maximum coverage ad D. overrun E. total page ad
46. (p. 397) A company that manufactures a new software system for eliminating SPAM wants a creative magazine ad that will attract attention and increase the likelihood of the ad being read. The company can use: A. overruns B. pop-outs C. gatefolds D. churchfolds E. content placement ads
47. (p. 397) Gatefolds, bleed pages, inserts, and creative space buys are ways of increasing: A. the cost efficiency of magazines B. the geographic flexibility of magazines C. the selectivity of magazines D. the creativity of magazine ads and their ability to attract readers' attention E. all of the above
48. (p. 3898) Ads in magazines that utilize pop-ups, heavy inserts, talking ads or other techniques to attract readers' attention are sometimes referred to as: A. multisensory ads B. enhanced advertising pages C. printaculars D. fine-tuned sensory interceptors (FSIs) E. distractors
12-13
Chapter 12 - Evaluation of Print Media
49. (p. 398) Brut Champagne ran an ad in Esquire magazine featuring a cardboard replica of a champagne bottle that pops up when the magazine is opened to that page. This is an example of a(n): A. action page B. gatefold C. multisensory ad D. printacular E. run-of-page ad
50. (p. 398) Critics of printaculars argue they: A. limit the creative flexibility of print media B. alter the appearance and feel of a magazine and the reader's relationship to it C. are not used enough to be considered a separate advertising category D. result in horizontal promotional conflict among advertisers E. hinder the evaluation of the overall benefits of a media
51. (p. 398) Which of the following statements about advertisers' use of techniques such as popups, talking ads, heavy inserts and other methods to attract readers' attention is true? A. They are viewed as a way of breaking through the clutter created by the large number of ads in many magazines. B. Many advertisers are critical of their use and do not want to run regular ads that have to compete against them for readers' attention. C. They are not accepted by everyone in the advertising and publishing industry as a viable way of breaking through the advertising clutter in magazines. D. Some critics argue that they alter the feel of a magazine and the readers' relationship to it. E. All of the above statements about advertisers' use of techniques such as pop-ups, talking ads, heavy inserts, and other methods to attract readers' attention are true.
12-14
Chapter 12 - Evaluation of Print Media
52. (p. 398) Janome manufactures sewing machines. In an issue of Home Companion, Janome purchased the bottom quarter ad space on three successive pages to advertise the winter clearance sale on different models sewing machines at Janome authorized dealers. Janome used _____ to attract reader's attention. A. gatefold B. bleed page C. creative space buys D. overrun E. total page ad
53. (p. 398) Bob Wilkes shoes horses for a living. He has a large list of customers who often ask him for unusual features such as "Is there any sort of shock absorbers available for horses?" To answer these questions, he subscribes to American Farriers Journal and stores all of his previous issues so he can use them as reference material. The way Wilkes uses this publication demonstrates which advantage of magazines as an advertising medium? A. geographic selectivity B. creative flexibility C. prestige D. permanence E. services
54. (p. 398) Cal O'Hanlon, an avid skier, takes a weeklong ski vacation every winter. To help plan his vacation, O'Hanlon keeps all of the past issues of Skiing magazine he has received so he can consult them as he makes his selection of a ski resort. O'Hanlon 's use of the magazines in this way demonstrates which advantage of magazines as an advertising medium? A. geographic selectivity B. creative flexibility C. prestige D. permanence E. services
12-15
Chapter 12 - Evaluation of Print Media
55. (p. 399) The Hathaway Shirt Company uses most of its media budget to advertise in publications such as Esquire and The New Yorker magazines. The company thinks these magazines are very well respected and provide a favorable environment that helps enhance the image of its products. This example demonstrates which advantage of magazines as an advertising medium? A. geographic selectivity B. creative flexibility C. prestige D. permanence E. costs
56. (p. 399) The advertising manager for a fashionable, upscale women's clothing line is concerned over an ad agency recommendation to run ads for the brand in People magazine. She thinks the editorial environment of the magazine may not be appropriate to the high fashion and trendy positioning strategy being used for the brand. This reflects concern over what specific aspect of magazine advertising? A. permanence B. creative options C. prestige of the publication D. reproduction quality E. costs
57. (p. 399) You won't find Armani advertising its new line of men's toiletries in just any men's magazine. The company is striving to position its new line of toiletries as a product for the man with discerning tastes who only buys the finest products. In selecting a print medium in which to run an ad for this new product, Armani would probably be most concerned with the publication's: A. permanence B. pass-along-readership C. prestige D. reproduction quality E. costs
12-16
Chapter 12 - Evaluation of Print Media
58. (p. 399) Consumers are generally receptive to advertising in magazines because: A. the ads are relevant to them and can be of value in making a purchase decision B. ads in magazines are intrusive and cannot be easily ignored C. magazines are a low-involvement medium D. most magazines do not contain many ads, and thus, clutter is not a problem E. of all of the above reasons
59. (p. 399) Studies by the magazine industry have found: A. magazine readers are less likely to attend to and recall ads than are television viewers B. most consumers dislike magazine ads because they are intrusive and difficult to ignore C. magazines are consumers' primary source of information for many products and services D. consumers are less receptive to advertising in magazines than in any other medium E. consumers are more likely to recall newspaper ads than magazine ads
60. (p. 399) Which of the following statements provides a reason why consumers are more receptive to magazine advertising than to television advertising? A. Unlike television ads, magazine ads are intrusive and not easy to ignore. B. Consumers generally choose to purchase a magazine because they are interested in the content and ads are additional information relevant to the issue or topic area. C. There are not many ads in most magazines, so they do not bother consumers. D. Because more creative options are available for magazines than for television advertising, magazine ads are more interesting. E. Magazine advertising does not provide the psychographic or demographic selectivity that television does.
12-17
Chapter 12 - Evaluation of Print Media
61. (p. 400) The advertising agency for Sony Electronics has prepared two print ads for the company's new DVD. Ad A uses a straightforward informational appeal, which discusses the DVD player's features while ad B is an image ad that promotes the overall quality of the player. The purpose of both ads is to encourage readers to send in a card or call a toll-free number to request more information about Sony's DVD player and other products. To get some idea of which ad might work best and should be used in the national campaign Sony could: A. conduct a split run test where one of the ads is placed in Stereo Review magazine and the other is placed in Time B. conduct a split run test where one of the ads is placed in Stereo Review magazine and the other is placed in a major newspaper C. make a cross media buy that includes both newspapers and magazines D. conduct a split run test where both ads are printed in alternate copies of the same issue of a magazine and then measure which one generates more inquiries E. any of the above
62. (p. 400) A(n) _____ test is a service offered by magazines where two or more versions of an ad are run in alternate copies of a particular issue of a publication. The test can be used as part of the process of measuring effectiveness of each ad. A. split run test B. inquiry test C. Starch test D. Gallup Robinson impact test E. day-after-recall test
63. (p. 400) Aprilee Lindsey read the April issue of Farm Journal magazine when she visited her parents in North Dakota and was entranced with an ad for John Deere garden tractors, which featured toddlers dressed in overalls and straw hats. When she got home to Alabama and looked for the same ad in her April issue of Farm Journal, she found the ad for John Deere Garden tractors. This ad listed 25 reasons for buying a John Deere brand tractor and had no illustration. What is the simplest explanation for finding two completely different ads in the same issue of a magazine? A. The magazine is a regional publication. B. The magazine uses demographics such as educational levels to target its reading audience. C. John Deere purchased a split run. D. John Deere could only afford a printacular ad in a portion of the market reached by the magazine. E. John Deere was taking part in a Gallup Robinson impact test.
12-18
Chapter 12 - Evaluation of Print Media
64. (p. 400) Which of the following is a disadvantage associated with advertising in magazines? A. lack of permanence B. lack of prestige C. lack of consumer receptivity to ads D. limited reach and frequency E. no creative flexibility
65. (p. 401) Advertisers who are seeking broad reach and frequency in their media schedules: A. find magazines very effective since individual publications reach a very broad target audience B. can use monthly magazines to easily obtain desired frequency C. must purchase space in a number of different magazines since most publications have thin penetration of households D. need to advertise repeatedly in the same magazine E. will find broad reach and frequency an easy goal to accomplish with magazines
66. (p. 401) Which of the following statements about the reach and frequency of consumer magazines is true? A. Popular consumer magazines have broad reach and frequency. B. While a high percentage of adults in the U.S. read one or more magazines, the percentage reading any individual publication is quite low. C. Using multiple ads in the same issue of a magazine is a viable way of increasing the reach of the publication. D. Advertisers seeking broad reach through the use of magazines cannot accomplish this goal by making media buys in a number of different publications. E. All of the above statements about the reach and frequency of consumer magazines are true.
67. (p. 401) Which of the following is a disadvantage inherent in advertising in magazines? A. lack of geographic selectivity B. lack of demographic selectivity C. poor reproduction quality D. long lead times E. low publication prestige
12-19
Chapter 12 - Evaluation of Print Media
68. (p. 402) Imagine a smokeless tobacco company has hired a NASCAR driver to be its advertising spokesperson. If a news release revealed the driver was just found to be suffering from mouth and throat cancer could cause a serious marketing problem, and the organization had already negotiated with several magazines to run these ads. Which characteristic of magazines would be the major source of the problem? A. clutter B. lack of publication permanence C. loss of publication prestige D. limited reach and frequency E. long lead time
69. (p. 402) Which of the following is one of the disadvantages associated with the use of magazines as an advertising medium? A. low receptivity to advertising by readers B. low demographic selectivity C. thin penetration of most individual magazines D. long reading life and permanence of publication E. difficulty associated with the processing of complex messages in magazines
70. (p. 402) The high ratio of advertising to editorial content in most magazines causes magazines to have a problem with: A. clutter B. limited frequency C. long lead times D. high costs E. none of the above
71. (p. 402) Which of the following statements about clutter in magazine advertising is true? A. Clutter is not really a problem at all in magazine advertising. B. Most magazines devote less than 30 percent of their pages to advertising so clutter is a controlled problem. C. The clutter problem for a magazine increases as they become more successful since they attract more ad pages. 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. Clutter is a more serious issue for magazines than it is for either television or radio.
12-20
Chapter 12 - Evaluation of Print Media
72. (p. 402) Clutter is viewed as less of a problem for magazines than radio or television because: A. consumers tend to be less receptive to print advertising than they are to broadcast advertising B. consumers have been trained to expect more ad messages than they can decode C. exposure to magazine ads is easier to control as the consumer can simply turn a page if uninterested in an ad D. print ads are always more creative and interesting than television ads E. print ads come in different sizes and colors, which can mask the feeling of clutter
73. (p. 402) In purchasing advertising space in magazines, media planners will focus primarily on the: A. lead time for placing ads B. absolute costs C. cost of the advertising space relative to the size and composition of the audience reached D. preproduction and production costs E. circulation of the publication
74. (p. 403) _____ is the number of magazine copies distributed to original subscribers or purchasers. A. Primary circulation B. Total circulation C. Primary readership D. Guaranteed circulation E. Basic readership
75. (p. 403) Many publications base their rates on _____ and give refunds to advertisers if the number of delivered magazines is below that quantity. A. total circulation B. primary circulation C. guaranteed circulation D. circulation verification E. rebate circulation
12-21
Chapter 12 - Evaluation of Print Media
76. (p. 403) When magazines set advertising rates based on a set average circulation figure delivered by the publication but do not guarantee a rebate if they fail to meet it they are using: A. guaranteed circulation B. circulation verification C. pass-along circulation rates D. a circulation rate base system E. a rebate system
77. (p. 403) Many business magazines are sent free to individuals a publisher thinks are appropriate members of a target audience and can influence purchases for products and services advertised in the publication. This is known as _____ basis. A. primary circulation B. guaranteed circulation C. free circulation D. circulation verification E. controlled circulation
78. (p. 403) _____ verifies the circulation of consumer magazines and farm publications. A. The Audit Bureau of Circulations B. Business Publications Audit C. Standard Rate and Data Service D. Simmons Market Research Bureau E. Mediamark Research, Inc.
79. (p. 403) ______ provides media planners with reliable figures about the size and distribution of a magazine's circulation that helps the planners evaluate its worth as a media vehicle. A. Simmons Market Research Bureau B. Standard Rate and Data Service C. A circulation verification service D. Mediamark Research, Inc. E. None of the above
12-22
Chapter 12 - Evaluation of Print Media
80. (p. 403) Advertising rate structures are generally based on: A. pass-along readers B. primary readers and pass-along readers with both weighted equally C. verifiable circulation figures D. total readership estimates E. none of the above
81. (p. 403) To be eligible for verification audits by Audit Bureau of Circulations, a magazine must meet which of the following criteria? A. It must be published on a controlled-circulation basis. B. It must be a business publication. C. Seventy percent or more of the magazines must be purchased for at least half of the magazine's established base price. D. The publication must be a member of the Magazine Publishers of America trade association. E. All of the above criteria must be met for a magazine to be eligible for verification audits by Audit Bureau of Circulations.
82. (p. 403) Circulation verification figures are important to media planners because: A. the figures provide them with reliable information about the size and distribution of a magazine's circulation B. the figures show how many of the magazines were actually read C. the figures 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 that were distributed
83. (p. 404) _____ describes a situation where a primary subscriber or purchaser of a magazine gives it to another person to read or where a magazine is read in public places. A. Primary readership B. Guaranteed readership C. Pass-along readership D. Total readership E. A place-based medium
12-23
Chapter 12 - Evaluation of Print Media
84. (p. 404) Which of the following comparisons of primary in-home readers of a magazine and pass-along readers is true? A. Advertisers generally attach greater value to primary in-home readers. B. Advertisers generally attach greater value to pass-along 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 do primary readers. E. All of the above are correct comparisons.
85. (p. 404) A magazine with a circulation of 2.5 million and 3 readers per copy would have a total audience or readership of _____ million. A. 2.5 B. 4.5 C. 5.5 D. 7.5 E. 8.3
86. (p. 404) A magazine with a circulation of 100,000 and 2 readers per copy would have a _____ of 200,000. A. certified audience B. calculated market C. total audience D. circumscribed market E. market aggregate
87. (p. 404-405) Information on the characteristics of magazine audiences is provided by: A. Simmons Market Research Bureau B. Mediamark Research, Inc. C. the magazines themselves D. SRDS's Business Publication Advertising Source E. all of the above
12-24
Chapter 12 - Evaluation of Print Media
88. (p. 405) The cost of advertising space in magazines is primarily a function of: A. the size of the ad B. the ad's position in the magazine C. the frequency of ad insertions D. the circulation of the publication E. whether color is used in the ad
89. (p. 405) Which of the following would NOT affect the cost of advertising in a consumer magazine? A. the size of the ad B. the position of the ad C. the circulation of the magazine D. special production requirements E. the number and variety of ads in the magazine
90. (p. 405) Which of the following statements about the use of color in magazine advertising is true? A. The more color used in the ad, the lower the cost. B. Advertisers prefer using black and white because of the greater visual impact it makes. C. Research has shown that color ads are superior to black and white ads in terms of attracting and holding attention. D. Bleed pages are less expensive than color pages with margins because less fine-tuning is required with bleed pages. E. Black and white ads are generally considered superior to color in terms of recall, awareness, and retention.
91. (p. 405) All of the following may result in additional costs for a magazine advertisement EXCEPT: A. four-color illustrations B. bleed pages C. special inserts D. gatefolds E. large volume purchases of advertising space in the same magazine
12-25
Chapter 12 - Evaluation of Print Media
92. (p. 406) _____ offer advertisers the opportunity to buy space in a group of publications as a package deal. A. Cross media organizations B. Magazine networks C. Publication verification networks D. Magazine blocks E. News networks
93. (p. 406) Magazines try to improve their position and become more appealing to marketers by: A. developing stronger editorial platforms that appeal to changing interests, lifestyles, and demographics B. improving the quality of their circulation bases even if it means a reduction in subscribers C. offering more cross-magazine and cross-media advertising packages D. offering new technologies to better target consumers and make ads more interesting and attention getting E. doing all of the above
94. (p. 407) The "church and state" division in magazines refers to: A. the conflict between the marketing and advertising divisions in a magazine publishing business B. the separation of content from advertising C. infomercials D. government pressures to separate church and state E. the pressure from religious groups to make magazines conform to their moral concepts See IMC Perspective 12.2
95. (p. 407) To improve advertising effectiveness, many magazines are: A. offering international editions embedded into domestic offerings. B. separating the advertising process from the magazine's editorial vision. C. letting advertisers choose the content of the magazine. D. selling ad space, but not confirming if the ads were effective. E. mixing ad messages with content. See IMC Perspective 12.2
12-26
Chapter 12 - Evaluation of Print Media
96. (p. 408) Magazines such as, InStyle Weekly, Vogue, and GQ are succeeding because: A. the magazines have very large circulation bases B. the publications have large editorial staffs C. people are having fewer children D. the magazines have editorial platforms that appeal to the interests, lifestyles and demographics of their consumers E. the magazines appeal to the conspicuous consumption lifestyle of today's consumers
97. (p. 407) Increased pressure on magazine publishers to meet the demands of advertisers is in part due to: A. reach and frequency estimates B. alternative advertising choices available to advertisers C. the growth in sports and marketing stories D. increased circulation of magazines E. image and affect promotion See IMC Perspective 12-2.
98. (p. 408) Which of the following statements about the circulation of magazines is true? A. Circulation revenue is becoming a major source of income for many publications. B. The higher the circulation of a magazine, the higher the advertising rates it can generally charge. C. Many magazines are finding the incremental costs of attracting and maintaining circulation increases is not always cost effective. D. Some magazines have reduced their circulation base in recent years to control costs. E. All of the above statements about the circulation of magazines are true.
99. (p. 408) _____ involves two or more publishers offering their magazines to an advertiser in one package. A. Mag-networking B. Multimedia networking C. A multimagazine deal D. A multi-promotional strategy E. Dual promotion
12-27
Chapter 12 - Evaluation of Print Media
100. (p. 409) General Motors negotiated an $80 million media package with Time Warner that included advertising in magazines owned by the media conglomerate as well as on cable television stations it operates. This is an example of: A. a cross-magazine deal B. a cross-media deal C. a magazine network advertising D. circulation management E. an intermedia deal
101. (p. 409) Magazines are helping advertisers implement their market segmentation strategies by: A. offering special inserts, bleed pages, and gatefolds B. not running any controversial articles C. merging their databases with those of the advertiser and delivering personalized messages to consumers D. adopting a general-interest editorial platform E. increasing their circulation figures
102. (p. 409) Selective binding and ink-jet imaging are making it possible for magazines to offer: A. personalized ads B. high reach and frequency C. reduced advertising rates D. lower delivery costs E. higher pass-along readership
103. (p. 409) _____ is a computerized production process that enables magazines to send different editorial or advertising messages to groups of subscribers within the same issue of a magazine. A. Ink-jet imaging B. Selective binding C. Cross media binding D. Controlled circulation E. Desk top publishing
12-28
Chapter 12 - Evaluation of Print Media
104. (p. 409) Which of the following processes makes it possible to personalize an advertising message? A. cross-market transaction B. selective binding C. cross media binding D. controlled circulation E. desk top publishing
105. (p. 409) _____ newspapers originate in small towns or suburbs and usually focus on news, sports and events relevant to a local area or community. A. Daily B. Weekly C. Local D. Regional E. Special-audience
106. (p. 411) National advertisers tend to avoid weekly newspapers because of: A. their poor image B. their high absolute cost C. difficulties associated with purchasing and placing ads in them D. an overly broad geographic focus E. the large number of local ads they typically contain
107. (p. 410) A major problem for publishers of teen and young women's magazines is these consumers are: A. becoming more financially savvy and demanding upscale advertising B. gravitating toward more mature magazines such as Martha Stewart's World C. so concerned about economic conditions that they are drastically reducing their spending D. refocusing their attention on social media such as MySpace and Facebook. E. too often working multiple jobs with little time to read See IMC Perspective 12-3.
12-29
Chapter 12 - Evaluation of Print Media
108. (p. 411) The New York Times and The Christian Science Monitor are examples of _____ newspapers. A. weekly B. national C. regional D. special-audience E. weekday
109. (p. 411) Linn's Stamp News is a newspaper written specifically for stamp collectors and published weekly. It contains information that is interest to people who collect stamps. It is an example of a: A. trade newspaper B. special-audience newspaper C. demographically-oriented newspaper D. newspaper supplement E. regional newspaper
110. (p. 411) Which of the following would be an example of special-audience newspaper? A. the Los Angeles Times B. the Washington Post C. The Wall Street Journal D. the newspaper published by your college E. USA Today
111. (p. 411) Parade and USA Weekend are examples of: A. daily newspapers B. national newspapers C. syndicated Sunday newspaper supplements D. freestanding inserts E. special-audience newspapers
12-30
Chapter 12 - Evaluation of Print Media
112. (p. 411) The New York Times Sunday Magazine is an example of a: A. special audience newspaper B. newspaper supplement published by a major newspaper C. syndicated newspaper supplement D. national newspaper E. consumer magazine
113. (p. 412) Which of the following statements about newspaper supplements is true? A. Most national advertisers avoid them because of high clutter. B. Newspaper supplements carry no national advertising. C. Some of these publications are similar to national magazines and carry national and regional ads in four-color. D. They appeal to advertisers who are not concerned about reproduction quality and who prefer to use black and white ads. E. Newspaper supplements are a category of newspapers just like daily, weekly, and national newspapers are.
114. (p. 412) _____ advertising is a category of advertising that is found throughout a newspaper and generally uses illustrations, headlines, white space, and other visual devices in addition to the copy text. A. Display B. Classified C. Preprinted insert D. Supplement E. Index
115. (p. 412) The largest percentage of newspaper advertising revenue comes from: A. display advertising by local advertisers B. classified advertising C. display advertising by national advertisers D. freestanding inserts E. real estate ads
12-31
Chapter 12 - Evaluation of Print Media
116. (p. 412) Employment, automotive, and real estate ads are the three major categories of type of _____ advertising. A. display B. supplement C. special insert D. classified E. retail
117. (p. 412) JCPenney's department store distributed a four-color catalog in newspapers in major metropolitan areas advertising its President's Day Sale. This is an example of what type of newspaper advertising? A. display advertising B. classified advertising C. preprinted insert D. printacular E. gatefold advertising
118. (p. 413) Because of the medium's ability to turn information around quickly and deliver a detailed message, many companies who provide critical services to consumers often choose to advertise in _____ to respond to natural disasters such as earthquakes or hurricanes. A. television B. magazines C. newspapers D. direct mail E. radio
119. (p. 413) Newspapers generally offer more _____ than any other medium except for direct mail. A. demographic selectivity B. geographic selectivity C. color advertising D. permanence E. creative options
12-32
Chapter 12 - Evaluation of Print Media
120. (p. 413) When America Online's customers were unhappy with their ability to access the Internet quickly, CompuServe, its major competitor, quickly ran ads taking advantage of AOL's problems. Which of the following characteristic of newspaper made it possible for CompuServe to do this? A. extensive penetration B. selectivity C. flexibility D. permanence E. reader involvement
121. (p. 413) Which of the following is NOT an advantage associated with advertising in newspapers? A. extensive penetration B. flexibility in producing and placing ads C. geographic flexibility D. high reproduction quality E. high level reader involvement and acceptance of advertising
122. (p. 413) 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 national advertisers. D. Many newspapers publish several geographic or zone editions and thus provide selectivity to local advertisers. E. None of the above statements about the geographic selectivity offered by newspapers is true.
12-33
Chapter 12 - Evaluation of Print Media
123. (p. 413-414) Kiley overheard a conversation in which the following terms were used: short closing times, strong reseller support, high penetration, national versus local rate differentials, and ad reproduction limitations. Which media vehicle was being discussed in the conversation that Kiley overheard? A. radio B. magazines C. direct mail D. billboards E. newspapers
124. (p. 414) Which of the following is an example of special services offered by newspapers? A. merchandising programs to help make the trade aware of a company's products B. complete in-house advertising agency competitive with many of the finest agencies in the U.S. C. high reproduction quality D. circulation verification E. all of the above
125. (p. 414) An advertiser preparing to run a large ad in a weekly newspaper needs to know that _____ can be a disadvantage associated with the selection of newspapers as the media vehicle. A. poor reproduction quality B. lack of demographic selectivity C. clutter D. short life span E. all of the above
126. (p. 414) An advertiser preparing to run a large ad in a weekly newspaper needs to know that _____ can be a disadvantage associated with the selection of newspapers as the media vehicle. A. lack of geographic selectivity B. lack of demographic selectivity C. noise as defined by the communications process D. pass-along readership E. none of the above
12-34
Chapter 12 - Evaluation of Print Media
127. (p. 414) One of the greatest limitations of newspapers as an advertising medium is _____ due to the coarse paper stock used in printing most newspapers. A. its pass-along readership B. the lack of reader interest and involvement C. consumer distrust of newspapers as a credible source D. its lack of geographic selectivity E. its poor reproduction quality
128. (p. 415) Which of the following statements about the level of advertising clutter in newspapers is true? A. Clutter is really not a problem in newspaper advertising since most ads are very large. B. Clutter is not a problem with newspapers even though nearly two thirds of the average daily paper is devoted to advertising. C. The term clutter only relates to broadcast media, not print media. D. Clutter is a particularly difficult problem in newspaper advertising since most ads are in black and white, and it is difficult to do anything unique or creative that will grab the reader's attention. E. There are no advertising techniques that will cause an ad to break though newspaper clutter.
129. (p. 415) A clothing store retailer would use an island ad to: A. break through the clutter typically found in newspapers B. create high reproduction quality ads C. act as a means of making the newspaper accountable for the sales generated by the ad D. reduce overall costs of newspaper advertising E. identify potential target markets
130. (p. 415) A creative technique for newspaper advertising whereby an ad is surrounded by editorial material is known as a(n): A. bleed page B. gatefold C. ink-set image D. insert E. island ad
12-35
Chapter 12 - Evaluation of Print Media
131. (p. 416) The _____ is a market area composed of a city where the paper is published and contiguous areas similar in character to the city. A. city zone B. MSA C. consolidated MSA D. consolidated market zone E. retail trading zone
132. (p. 416) The _____ is a market outside of a city whose residents regularly do business within the city. A. city zone B. retail trading zone C. area of dominant influence D. MSA E. designated market area
133. (p. 415-416) Which of the following statements about newspaper advertising rates is true? A. The rates newspapers charge national advertisers are lower than those for local advertisers. B. The rates newspapers charge national advertisers are about 10 percent higher than those for local advertisers. C. The rates newspapers charge national advertisers are an average of 66 percent higher than those paid by local advertisers. D. Newspapers advertising rates for national and local advertisers are about the same. E. National advertisers pay the entire amount for cooperative advertising even if the ad is placed by a local retailer.
134. (p. 415-416) Which of the following statements is an explanation why newspapers give for maintaining a differential rate structure for national versus local advertisers? A. They argue it costs more for newspapers to handle national advertising. B. They argue national advertising is less dependable than local advertising. C. They argue demand for national advertising is inelastic and will not increase if rates are lowered. D. They state national advertisers often request merchandising assistance from newspapers. E. All of the above are reasons given for the rate differential.
12-36
Chapter 12 - Evaluation of Print Media
135. (p. 417) The goal of the National Newspaper Network, which was created by the Newspaper Association of America in 1993, is to: A. make newspaper advertising rates the same for everyone B. attract more newspaper advertising dollars from national advertisers in specific product categories by facilitating the purchasing process C. make sure national advertisers who use newspapers on a limited basis pay higher rates than those who are already regular users D. attract more newspaper advertising from local companies E. do all of the above
136. (p. 418) Traditionally, newspaper advertising space for national advertisers has been sold by the: A. standard advertising units (SAUs) B. column inch C. agate line D. cost per thousand (CPM) E. page
137. (p. 418) Madison has recently learned that newspaper advertising space for national advertisers has been sold by the SAU. The letters SAU stand for: A. sales and advertising units B. standard advertising units C. standardized aggregated utility D. space for advertising usage E. space for advertising unit
138. (p. 418) _____ is a system that was created in 1984 to make newspaper advertising rates comparable to other media that sell space and time in standardized units. A. The column inch B. The flat rate system C. Standard advertising units D. The portfolio inch E. Agate lines
12-37
Chapter 12 - Evaluation of Print Media
139. (p. 418) When a newspaper offers no discounts for quantity or repeated space buys, it is using a(n) _____ structure. When discounts are available, it is using a(n) _____ structure. A. preferred position; flat rate B. preferred position; open-rate C. open-rate; flat rate D. flat rate; open rate E. flat rate; preferred position
140. (p. 405) Basic rates quoted by newspapers that call for an ad to be placed on any page or in any position desired by the paper are known as _____ rates. A. preferred position B. open C. flat D. run-of-paper (ROP) E. combination
141. (p. 418) The promoter of a boxing match would probably want to place an ad in the sports section of the newspaper and thus would pay a(n) _____ rate. A. flat B. run-of-paper C. preferred position D. agate E. bleed page
142. (p. 418) Which of the following statements about the future of the newspaper industry is true? A. Newspapers are the primary medium for national advertisers. B. The newspaper industry is losing advertising revenue to direct marketing and telemarketing. C. Newspaper readership has held steady over the past two decades. D. The percentage of households receiving a daily newspaper has increased. E. Newspapers are the least important of all promotional media in terms of total advertising volume.
12-38
Chapter 12 - Evaluation of Print Media
143. (p. 418-419) In order to compete against other media vehicles, many newspapers are: A. making their papers available online B. building customer databases C. are eliminating "ego circulation" D. preparing comprehensive market studies for major customers E. doing all of the above
144. (p. 421) Studies have shown that people who use online newspapers are: A. primarily interested in the humor and sports pages B. low-income groups who cannot afford to purchase paper copies regularly C. likely to respond to bleed pages and run of the paper ads D. highly engaged and are an upscale audience E. all of the above
145. (p. 421) The National Newspaper Network: A. reproduces national ads in a pass-along system throughout the country B. facilitates Web-based advertising options in newspapers across the country C. provides advertising auditing services to local marketing firms D. limits the misuse of advertising in selective run binding networks E. offers controlled-circulation flat rates for preferred position marketers
12-39
Chapter 13 - Support Media
Chapter 13 Support Media
Multiple Choice Questions 1. (p. 425) Product placements are part of brand integrations using: A. illegal B. used to get exposure for products in a number of low cost ways C. plugs for products within movies, books, and TV shows D. forms of direct marketing E. most closely related to distribution strategies See opening vignette.
2. (p. 425) Kimberly-Clark used all of the following EXCEPT _________________ in their brand integration strategy. A. sweepstakes B. television and radio ads C. in-store billboards D. people dressed in walkabout packages of Kimberly-Clark products E. online advertising See opening vignette.
3. (p. 426) Ads have been placed on the back of envelopes that contain airplane tickets and on banners pulled by planes that are flown over sports arenas. Both of these are examples of: A. support media B. out-of-home advertising C. indirect communications D. advertising accessories E. category ads
13-1
Chapter 13 - Support Media
4. (p. 426) Media used to reinforce communications messages that may have been received from other forms of advertising are called: A. support media B. source media C. indirect communications D. accessory advertising E. category ads
5. (p. 427) Another name for alternative media is: A. functional communications B. nontraditional media C. techno media D. responsive media E. nonstructured communications
6. (p. 427) Examples of the use of alternative media include: A. a physician's ad in the Yellow Pages B. the name, address, and phone number of a plumbing company at the bottom of a giveaway calendar C. a billboard for Friendly Ford on Interstate 75 D. an ad for Cheerwine soft drink on a NASCAR racing vehicle E. all of the above
7. (p. 428) Which of the following is an example of an out-of-home advertising medium? A. a billboard on the top of a taxi in New Orleans B. an ad placed inside a bus shelter C. banners pulled by airplanes over sporting events D. an ad on a park bench E. all of the above See Figure 13-2.
13-2
Chapter 13 - Support Media
8. (p. 428) Of all out-of-home media, _____ advertising enjoys the highest gross billings and the largest percentage of the market. A. transit B. sports stadium C. airport D. billboard E. in-store See Figure 13-2.
9. (p. 429) Which of the following is a threat facing sponsors of outdoor advertising? A. an inability to use creativity B. an inability to have the needed geographic selectivity C. local and national ordinances D. an inability to create awareness through the use of billboards E. all of the above
10. (p. 428) Which of the following business is most likely to buy outdoor advertising? A. a local Ford car dealership B. 3M Company C. Carnation Company D. Quaker Oatmeal E. RubberMaid See Figure 13-3.
11. (p. 429) Which of the following statements about outdoor advertising is true? A. The number of billboards for outdoor advertising has been increasing. B. Outdoor advertising does not have a negative image problem as do some other types of advertising. C. Outdoor advertising is typically used by national companies like Kraft and IBM. D. Outdoor advertising is the only form of advertising that is not regulated by national legislation. E. Outdoor advertising is a pervasive medium.
13-3
Chapter 13 - Support Media
12. (p. 429) Which of the following pieces of federal legislation had the greatest impact on outdoor advertising? A. Fair Packaging and Labeling Act (1966) B. Wheeler-Lea Act (1938) C. Highway Beautification Act of 1965 D. National Environmental Policy Act (1969) E. Consumer Product Safety Act (1972)
13. (p. 426-433) A company wishing to advertise to a very specific target market with a message designed to aid comprehension of the product benefits offered should use: A. transit advertising B. billboards C. rolling boards D. aerial advertising E. none of the above
14. (p. 429) A major reason for the continued success of outdoor advertising is: A. ability to communicate complex messages B. low cost C. elimination of waste coverage D. innovation through technology E. ability to provide extremely accurate measures of the medium's reach
15. (p. 429) Surveys indicate American consumers have _________ outdoor advertising. A. strong opposition to B. respect for the creativity of C. mixed emotions regarding D. no opinions regarding E. none of the above
13-4
Chapter 13 - Support Media
16. (p. 429) Truck sides, taxi displays and wrapped vehicles are all examples of: A. transit media B. in-office media outlets C. areas where government has regulated advertising D. product placements E. all of the above
17. (p. 429) Airplanes pulling banners, blimps and skywriting are all examples of: A. sales promotions B. flighting C. aerial advertising D. stationary advertising E. free-form advertising
18. (p. 429) Which of the following statements about aerial advertising is true? A. Aerial advertising is expensive in absolute. B. Aerial advertising can be used to reach specific target markets. C. Aerial advertising is seldom used by local advertisers. D. Aerial advertising is illegal at sporting events. E. All of the above statements about aerial advertising are true.
19. (p. 429) A City of Macon public transit system bus painted to look like a large moving loaf of Wonder Bread is an example of: A. out-of-store advertising B. a mobile billboard C. free-form advertising D. a spectacular E. a sales promotion
13-5
Chapter 13 - Support Media
20. (p. 430) Most of the people fighting to remove outdoor signs focus on the fact that outdoor signs are: A. too big B. too ubiquitous or maybe to creative C. a form free-from-friction advertising D. not consistent with American ideals E. a throw-back from the past that needs to be allowed to disappear IMC Perspective 13.1
21. (p. 431) Based on research figures, approximately two-thirds of all consumers' purchase decisions are made while shopping. Given this fact, which of the following media should be most effective in influencing consumer decisions? A. nationally televised ads B. in-store media C. local newspaper coupon supplements D. parking meter advertisements E. billboards near the consumer's store of choice
22. (p. 432) Advertising placed on buses and taxis is called: A. sales promotions B. stationary advertising C. transit advertising D. aerial advertising E. free-form advertising
23. (p. 432) An ad in an office building elevator for a local Mexican restaurant is an example of: A. a sales promotion B. stationary advertising C. transit advertising D. aerial advertising E. free-form advertising
13-6
Chapter 13 - Support Media
24. (p. 432) Transit advertising has been around for a long time, but interest in it has increased over the last few years. This increase is due to increased audience segmentation, the rising cost of TV advertising, and: A. the increased number of women in the workforce B. the development of Internet advertising C. the ban on advertising cigarettes on billboards D. an increase in the number of consumers who are over 60 E. a change in entertainment venues
25. (p. 432) Transit advertising can be found in all of the following places EXCEPT: A. in elevators B. in subways C. on taxis D. on trolleys E. on billboards
26. (p. 432) At the Chicago's O'Hare Airport, Kevin saw an ad for Alamo Car Rental as he made his way to his departure gate. The ad Kevin saw was an example of: A. a sales promotion B. stationary advertising C. transit advertising D. aerial advertising E. free-form advertising
27. (p. 432) There are three forms of transit advertising. They are inside cards, station, platform or terminal posters, and: A. mobile billboards B. aerial banners C. spectaculars D. outside posters E. promotional cards
13-7
Chapter 13 - Support Media
28. (p. 432) Which of the following is an advantage associated with transit advertising? A. long exposure time B. high frequency of exposure C. low absolute and relative costs D. geographic selectivity E. all of the above
29. (p. 4232) Which of the following is an advantage associated with transit advertising? A. timeliness B. the elimination of waste coverage C. no copy limitations D. superior frequency and reach E. image factors
30. (p. 434) Which of the following is a disadvantage associated with transit advertising? A. low frequency of exposure B. high costs C. copy and creative limitations D. short exposure times E. all of the above
31. (p. 434) Which of the following is a disadvantage associated with transit advertising? A. copy and creative limitations B. waste coverage C. ineffective reach D. unreceptive mood of target audience E. all of the above
32. (p. 434) The anxious, irritated or disinterested state of many potential customers when exposed to _____ advertising may limit the effectiveness of such advertising. A. specialty B. transit C. aerial D. movie E. radio
13-8
Chapter 13 - Support Media
33. (p. 434) A company uses a global positioning system to adjust the advertising messages shown on top of a taxi cab. This is an example of a technology-driven: A. specialty B. transit C. aerial D. movie E. radio
34. (p. 434-435) Which of the following is an advantage of outdoor advertising? A. ability to communicate complex messages B. low cost C. elimination of waste coverage D. geographic flexibility E. ability to provide extremely accurate measures of the medium's reach
35. (p. 434) Which of the following is an advantage of outdoor advertising? A. no waste coverage B. ease of measurement of audience size C. wide coverage of local markets D. low costs E. slow wearout
36. (p. 435) Outdoor advertising would best be suited for a company whose communication objective is to: A. attain brand awareness B. explain a complex product advantage C. create attitude change D. stimulate product trial of a new type of computer E. influence immediate behavior
13-9
Chapter 13 - Support Media
37. (p. 435) If properly placed, which support medium can yield possible exposure to an equivalent of 100 percent of the marketplace on a daily basis? A. specialty B. outdoor C. aerial advertising D. Yellow pages E. transit
38. (p. 435) Which of the following support media provides advertisers with wide coverage of local markets and high levels of frequency? A. outdoor B. mail advertising C. airport advertising D. in-store and out-of-store E. newspaper and transit
39. (p. 435) Which of the following has been cited as a limitation of outdoor advertising? A. its ability to target specific markets B. frequency of exposure is too high C. high absolute and relative costs D. negative attitudes of consumers toward the medium E. all of the above
40. (p. 436) The more up-to-date name for what was once called "specialty advertising" is: A. in-store advertising B. promotional products marketing C. public relations enhancement D. giveaway marketing E. product placement
13-10
Chapter 13 - Support Media
41. (p. 436) Which of the following would NOT be considered an example of promotional products marketing? A. key rings with advertiser's name engraved on it B. mugs with the Yellow Pages logo C. products used prominently in movies D. calendars imprinted with the name, address, and phone number of a local funeral home E. T-shirts with the name of the company that published your advertising text book
42. (p. 436) Products, such as free pens, calendars, and coffee mugs featuring advertising and used as promotional tools are referred to as: A. premiums B. advertising specialties C. sales promotions D. publicity E. giveaways
43. (p. 436) Useful articles of merchandise, such as sports bottles, calendars, and pens, imprinted with an advertiser's name, message, or logo are examples of: A. advertising specialties B. product placements C. transportable advertising D. sales promotions E. trade promotions
44. (p. 437) Which of the following product categories accounts for the largest dollar volume of items used as promotional products? A. games B. apparel C. calendars D. bags E. sporting goods See Figure 13-8.
13-11
Chapter 13 - Support Media
45. (p. 437) Which support medium should be employed if the objective is to achieve high levels of retention and have the communication serve as a frequent reminder? A. billboards B. product placements C. advertising specialties D. in-flight advertising E. Yellow Pages
46. (p. 437) Which of the following forms of support media is described as the only medium that frequently generates goodwill in the receiver? A. transit advertising B. outdoor advertising C. promotional products marketing D. aerial advertising E. mobile billboards
47. (p. 437-438) Which of the following is an advantage of promotional products marketing? A. a high level of frequency B. a high degree of audience selectivity C. as a tool for reminder advertising D. a high degree of flexibility E. all of the above
48. (p. 438) Which of the following is an example of a disadvantage of promotional products marketing? A. high cost per repeat exposure B. low level of selectivity C. low level of frequency D. inability to supplement other media E. none of the above
13-12
Chapter 13 - Support Media
49. (p. 438) Which of the following is an example of a disadvantage associated with promotional products marketing? A. intrusive nature of the advertising B. potential saturation of the marketplace C. its inability to supplement other media D. its inflexibility E. all of the above
50. (p. 439) Which of the following statements about audience measurement in promotional products marketing is true? A. Reach and frequency are as easy to measure with promotional products marketing as with print advertising. B. Response to direct-mail advertising with included promotional products marketing is typically used as a measure of all support media. C. Donnelly Marketing has established an acceptable method for measuring the impact of promotional products marketing on sales. 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.
51. (p. 439) Because _____ advertising does not create awareness or demand for products or services, but rather points consumers toward where their purchases can be made, it is considered a directional medium. A. specialty B. Yellow Pages C. radio D. transit E. television
52. (p. 439) Which support medium should be employed if the consumer has already been provided with information about the service and now requires a directional medium? A. billboards B. product placements C. advertising specialties D. in-flight advertising E. Yellow Pages
13-13
Chapter 13 - Support Media
53. (p. 439) Yellow Pages advertising is referred to as a directional medium. This means that Yellow Pages ads: A. direct buyers to a source of product purchase B. direct buyers to other ads in the IMC program C. direct consumers through the response hierarchy D. used to geographically segment buyers E. are a form of direct-response advertising
54. (p. 439) Which of the following is an advantage associated with Yellow Pages advertising? A. great creative potential B. short lead times C. a passive orientation D. nonintrusiveness E. absence of clutter
55. (p. 439) Which of the following is a disadvantage associated with Yellow Pages advertising? A. lack of creativity B. clutter C. long lead time D. market fragmentation E. all of the above
56. (p. 439) Which of the following is a disadvantage associated with Yellow Pages advertising? A. limited availability B. nonintrusiveness C. a passive orientation D. long lead time E. absence of clutter
13-14
Chapter 13 - Support Media
57. (p. 441) What two methods are used to measure the impact of Yellow Pages advertising on sales? A. CPM and frequency B. reach and frequency C. circulation and usage D. visibility and usage E. CPM and pass-along rate
58. (p. 441) Which of the following is an advantage of movie theater advertising? A. high relative and absolute costs B. lack of clutter C. low recall D. low exposure E. all of the above
59. (p. 442) A disadvantage associated with movie theater advertising is: A. low recall B. low audience exposure C. possible irritation of audience D. clutter E. a potential violation of FCC regulations of advertising
60. (p. 442) Which of the following statements best compares the CPM for movie theater advertising with that of other media? A. The CPM for movie advertising is higher than that for magazines. B. Movies have a lower CPM than radio, but higher than newspapers. C. When compared to other advertising media, the CPM is quite high for movie ads. D. When compared to other advertising media, the CPM is quite low for movie ads. E. The CPM for movie advertising is equal to that of the other forms of advertising media.
13-15
Chapter 13 - Support Media
61. (p. 443) Given the demographic characteristics of its audience, which of the following products would most benefit from in-flight advertising? A. brownie mixes B. soft drinks C. business supplies D. flea and tick treatments for dogs E. acne medication
62. (p. 443) Which support medium would probably be most effective for expensive cologne where the target audience for the product is upscale businessmen? A. billboards B. product placements C. advertising specialties D. in-flight advertising E. Yellow Pages
63. (p. 443) Which support medium would probably be most effective for an expensive hotel that is attempting to appeal to an international audience? A. aerial advertising B. product placements C. advertising specialties D. in-flight advertising E. Yellow Pages
64. (p. 443) A whiskey distillery wants to advertise in an in-flight commercial. What are the advantages associated with using this form of in-flight advertising? A. lack of clutter B. low wearout C. high attention from target audience D. a captive audience E. all of the above
13-16
Chapter 13 - Support Media
65. (p. 444) A whiskey distillery wants to advertise in an in-flight commercial. What are the disadvantages associated with using this form of in-flight advertising? A. high costs B. lack of wearout C. inability to segment market D. an audience feeling that such ads are intrusive E. all of the above
66. (p. 445) ________________ is a form of advertising that blends marketing and entertainment through television, film, music talent and technology. A. Flighting B. Branded entertainment C. Direct response promotion D. Publicity E. Sales promotion
67. (p. 445) Promoting a product by having it used by actors in a movie or television show is known as: A. out-of-home advertising B. product placement C. a direct response promotion D. publicity E. a sales promotion
68. (p. 445) The use of Nike shoes in the movie Forest Gump and the appearance of the Marriott Hotel logo in the movie True Lies are both examples of: A. product placement B. specialty advertising C. promotional products marketing D. free-form marketing E. transactional advertising
13-17
Chapter 13 - Support Media
69. (p. 445) The agreement that Revlon brand cosmetics would pay a fee to have its products prominently featured in twenty episodes of the soap opera, All My Children, is an example of: A. product placement B. specialty advertising C. promotional products marketing D. free-form marketing E. transactional advertising
70. (p. 446) Advertainment, content sponsorship, and ad-supported video on demand are examples of: A. branded public interest advertising B. product integration C. systematic brainwashing D. alternative outdoor advertising E. publicity
71. (p. 446) Which of the following is an advantage associated with the use of branded entertainment? A. low relative cost B. high exposure C. low costs D. source association E. all of the above
72. (p. 446) With which type of advertising medium is source association strongest? A. product placements B. in-flight advertising C. promotional products marketing D. transit advertising E. spectaculars
13-18
Chapter 13 - Support Media
73. (p. 446) Which support medium should be employed if the objective is to associate the product with a very specific type of user and to appear as though it's really not being advertised at all? A. billboards B. branded entertainment C. advertising specialties D. in-flight advertising E. yellow pages
74. (p. 446) A company promoting its product through product placements in movies would benefit from: A. potentially high exposure B. low absolute cost C. a wealth of audience measurement data D. lack of competition for viewers' attention E. all of the above
75. (p. 447) Which of the following statements about product placement advertising is true? A. The product placements benefit from low potential for exposure. B. There is a strong source association between actors and the products. C. The major disadvantage associated with the use of product placement advertising is its costs. 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.
76. (p. 448) Which of the following is an example of a disadvantage associated with product placement? A. high absolute cost B. negative public reaction C. limited appeal D. lack of control E. all of the above
13-19
Chapter 13 - Support Media
77. (p. 448) Which of the following is an example of a general disadvantage associated with branded entertainment? A. high absolute cost B. low exposure numbers C. international regulations opposing product placements D. negative source association E. all of the above While there may be some negative source associations for specific products sold in specific ways, for example if the hero is hit by a specific brand of car, this is not generally a disadvantage—it is unique to that placement.
78. (p. 449) Because advertisers have no say over how often and when their products will be shown, lack of control is cited as a disadvantage of _____ advertising. A. videotape B. specialty C. branded entertainment D. transit E. outdoor
79. (p. 449) How are audience measurements for the effectiveness of product placement conducted? A. Independent agencies conduct recognition tests. B. Advertisers use trend analysis. C. The same methods used for audience measure of broadcast media work well. D. Any commonly used audience measurement method is effective. E. At this time, there is no method for audience measurement.
80. (p. 450) One reason advertisers are seeking out alternative advertising options including on beaches, in schools, and even on bodies is: A. the decline in viewership of traditional media. B. the high cost of Internet advertising C. because demographic changes are creating branded promotional poster opportunities D. consumers prefer alternative media and seek out these types of ads E. the negative publicity associated with almost all sponsorships See IMC Perspective 13-2.
13-20
Chapter 13 - Support Media
81. (p. 451) Which of the following is the best example of place-based media? A. movie ads on popcorn bags B. televisions in classrooms C. interactive kiosks D. Internet banners E. mobile billboards
82. (p. 452) The strategy behind place-based media is to: A. bring the advertising media to the consumer B. use the place element of the marketing mix to impact advertising C. use mobile billboards D. create a media vehicle that leads in its ability to attract and retain consumer attention E. provide places that are free of clutter from contemplation of ads
83. (p. 440) Forehead for rent, body for rent, and celebrity hairdo are all examples of? A. virtual advertising B. the new-product development process C. advertisers seeking new media outlets D. free-form promotion E. transit technology advertising See IMC Perspective 13-2.
13-21
Chapter 14 - Direct Marketing
Chapter 14 Direct Marketing
Multiple Choice Questions 1. (p. 457) QVC Home Shopping Network believes it can increase sales if: A. they offer discounts to new customers who bring in other customers B. they can get viewers to stay tuned ten seconds longer C. they alternate between a television and an Internet-based format D. they expand transit advertising in rural markets E. they create a one-step telemarketing approach
2. (p. 458) Using an integrated marketing communications plan, QVC is attempting to: A. offset a decline in interest in shopping with an increase in text messaging B. replace their RFM strategy with faster than lightning (FTL) approach C. repackage itself for younger, hipper customers D. broadcast only where the advertising time is the least expensive E. all of the above
3. (p. 458) Direct marketing: A. is a valuable tool in integrated marketing communications (IMC) B. can generate immediate behavioral response C. creates a direct channel of distribution D. seeks different objectives from advertising, sales promotion, and personal selling strategies E. is accurately described by all of the above
14-1
Chapter 14 - Direct Marketing
4. (p. 458) Direct marketing: A. is not a useful tool for a company that is using an integrated marketing communications plan B. seeks the same objectives as advertising, sales promotion, and personal selling strategies in an IMC plan C. is one of the slowest growing forms of promotion in terms of dollar expenditures D. can generate immediate behavioral response E. is accurately described by all of the above
5. (p. 459) Unlike traditional marketing, the typical goal of direct marketing is to: A. create brand image B. generate an immediate behavioral response C. utilize telephone communication exclusively D. create awareness E. convey detailed information
6. (p. 459) Which of the following is a type of response that could be generated by direct marketing? A. a vote for a mayoral candidate B. a subscription to Martha Stewart Living magazine C. an inquiry for more information on a water reclamation system for a car wash D. a purchase of a tin of St. Julien macaroon cookies E. all of the above
7. (p. 459) Which of the following is an example of direct-response media? A. direct mail B. interactive television C. telemarketing D. print E. all of the above
14-2
Chapter 14 - Direct Marketing
8. (p. 459) Which of the following is an example of direct-response media? A. billboards B. place-based media C. the Internet D. product placement E. guerrilla media
9. (p. 459) Direct marketing has been in existence since the invention of the: A. printing press B. television C. telephone D. radio E. alphabet
10. (p. 459) The major impetus behind the growth of direct marketing was the: A. increase in the number of working women B. invention of the printing press C. development and expansion of the U.S. Postal Service D. development of multinational companies and international markets E. law that mandated public education
11. (p. 459) All of the following have contributed to the growth of direct marketing EXCEPT: A. direct-marketing syndicates B. rapid development of computers and electronic media C. increased consumer credit card use D. the fact many Americans are "money-rich and time-poor" E. postage rate increases
14-3
Chapter 14 - Direct Marketing
12. (p. 459) One of the reasons for the recent, rapid growth of direct marketing in American society is due to the: A. the fact the U.S. has moved from an industrialized nation to a service nation B. increase in the number of hours individuals spend watching television C. proliferation of cellular phones D. increased use of consumer credit cards E. development of four-color printing presses
13. (p. 459) All of the following factors have contributed to the increased attractiveness of direct marketing EXCEPT: A. the increasing number of direct-marketing syndicates B. the rising number of women in the work force C. the improved image of the industry D. the rapid technological advancement of electronic media and of computers E. the attractiveness of malls for family entertainment
14. (p. 461) A magazine ad for pet health insurance contains both a toll-free number to call and a Web site to visit for more information. This ad is an example of the combining of direct marketing with: A. a trade promotion B. public relations C. advertising D. personal selling E. consumer promotion
15. (p. 461) A press conference called by the Winchester County Museum informed 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 Winchester County and neighboring counties could expect to receive a donation envelope in the mail within the next few days. This is an example of the combining of direct marketing with: A. a trade promotion B. public relations C. advertising D. personal selling E. consumer promotion
14-4
Chapter 14 - Direct Marketing
16. (p. 461) When the University of Miami has volunteers call its alumni and ask them to make contributions to pay for the remodeling of the administration building, it is an example of the combining of direct marketing with: A. a trade promotion B. public relations C. advertising D. personal selling E. consumer promotion
17. (p. 461) Red Bud Florist received in the mail an offer from Aquafoam, a water-soluble foam brick frequently used for arranging fresh flowers. According to the offer, if the owner of Red Bud would place an order with Aquafoam, she would be automatically registered to win $10,000 in a customer appreciation contest. This is an example of the combining of direct marketing with: A. a trade promotion B. public relations C. advertising D. personal selling E. a consumer promotion
18. (p. 462) To encourage customers to open mail offering them a subscription to Home Companion, the front of the envelope advised there was a gift inside. Inside was an attractively laminated bookmark. This is an example of combining direct marketing with: A. personal selling B. specialty advertising C. place-based media D. product placement E. advertising
19. (p. 462) To successfully implement a direct marketing program, companies must: A. set objectives B. develop target marketing strategies C. develop direct-marketing strategies D. evaluate program effectiveness E. do all of the above
14-5
Chapter 14 - Direct Marketing
20. (p. 462) For market segmentation and targeting, direct marketers rely most heavily on: A. primary qualitative research B. census data C. a database D. survey responses E. focus groups
21. (p. 462) _____ is the use of specific information about individual customers and/or prospects to implement more effective and efficient marketing communications. A. Information mining B. The preapproach C. Data warehousing D. A marketing information system (MIS) E. Database marketing
22. (p. 463-464) Databases are used: A. to improve the selection of market segments B. to assist in the stimulation of repeat purchases C. to create transactional sales D. as the foundation from which direct marketing programs evolve E. in all of the above ways
23. (p. 465) The National Geographic Society offers a variety of products to its subscribers through direct marketing. This is an example of: A. cross-selling B. renewal marketing C. an unethical business practice D. membership-based marketing E. remarketing
14-6
Chapter 14 - Direct Marketing
24. (p. 465) With an offer to subscribe to a cooking magazine, Rosina was offered the opportunity to buy a set of cookware, an electric can opener, and a coffee maker that were featured in the publication and selected by the magazine editors as the best value for the money. This is an example of: A. cross-selling B. renewal marketing C. an unethical business practice D. membership-based marketing E. remarketing
25. (p. 466) Which of the following is NOT a commonly used source of information for a directmarketing database? A. the U.S. Census Bureau B. the Better Business Bureau C. Simmons Market Research Bureau D. U.S. Postal Service E. Standard Rate and Data Service
26. (p. 466) Which of the following companies could benefit from the use of database marketing? A. financial institutions such as loan companies B. credit card companies C. retailers like Lands' End and Chadwick's of Boston D. charitable organizations like the American Heart Association E. all of the above
27. (p. 466) To determine the effectiveness of a database, the U.S. Postal Service recommends an RFM scoring method. The letters RFM stand for: A. recency, frequency and monetary transactions between the company and the customer B. rate of sales, fixed use fee paid, and markets reached C. relationship between the company and the customer, frequency of the sale, and monetary transactions between the company and the customer D. reach, frequency, and markets reached E. ratio of inquiries to sales, frequency of sales, and market share
14-7
Chapter 14 - Direct Marketing
28. (p. 466) The announcer on the television commercial said, "Get your credit card and call now to order the Monster Ballads of Rock & Roll CD." This is an example the _____ direct marketing approach. A. two-step B. indirect C. direct D. one-step E. three-step
29. (p. 466) Which of the following companies employ a one-step approach to direct marketing? A. the QVC shopping network 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. all of the above
30. (p. 466) 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 the order. This form of direct marketing is referred to as: A. outbound telemarketing B. videotext C. the one-step approach D. the two-step approach E. support marketing
31. (p. 466) When a direct advertising medium is designed to directly obtain an order, the _____ approach is being used? A. two-step B. indirect C. direct D. one-step E. bulls-eye
14-8
Chapter 14 - Direct Marketing
32. (p. 468) In direct marketing situations, when it is necessary to screen or qualify potential buyers, it is advisable to use: A. the two-step approach B. the one-step approach C. direct mail rather than telemarketing D. direct-response television E. SMRB's data on direct marketing purchasers
33. (p. 468) The two-step approach to direct marketing: A. asks for an immediate sale B. uses the first contact to screen potential buyers C. is commonly found in direct sales D. is followed by a professional sales call E. is similar to missionary selling
34. (p. 468) A television commercial in which Publishers Clearing House urges consumers to look in their mailboxes for soon-to-arrive sweepstakes entries is an example of: A. sweeps marketing B. add-on marketing C. specialty advertising D. the one-step approach E. the two-step approach
35. (p. 468) Market segmentation in the direct marketing industry: A. is not a viable strategy B. is used effectively by only a few large companies C. is considered less efficient than mass mailings D. is directly tied to the mailing list E. is unnecessary because demographic and geographic selectivity exist without any segmentation
14-9
Chapter 14 - Direct Marketing
36. (p. 468-469) Which of the following forms of segmentation are available through mailing lists? A. people that buy exercise equipment in the mail B. consumers over the age of 50 with a median income of at least $50,000 C. hunters, people who fish, and campers D. presidents of civic organizations in western Canada E. all of the above
37. (p. 470) Which of the following media forms is LEAST commonly used today for direct marketing? A. radio B. catalogs C. infomercials D. direct mail E. telephones
38. (p. 470) Which of the following statements about the use of catalogs in the direct-marketing industry is true? A. Most business-to-business marketers use print catalogs. B. The number of catalogs mailed since 1984 has decreased significantly. C. Many companies use catalogs in conjunction with their more traditional sales and promotional strategies. D. There is no company today that relies solely on catalog sales. E. The number of catalog shoppers has steadily declined since 1984.
39. (p. 470) Which of the following statements about the use of broadcast media by the directmarketing industry is true? A. Direct-response advertising is the broadcast industry does not use support advertising. B. More direct-response advertising is broadcast on radio than on television. C. The use of broadcast media over the next five years is expected to increase at a faster rate than ever before. D. The two-step approach is often used with direct-response advertising on the radio. E. When a toll-free number is included in a direct-response ad, it is called support advertising.
14-10
Chapter 14 - Direct Marketing
40. (p. 470) In direct-response marketing, the "direct response" sought is: A. sales B. awareness C. attitude change D. changes in perception E. return on investment (ROI)
41. (p. 470) Direct marketing in the broadcast industry involves both direct-response advertising and: A. supplementary promotions B. support advertising C. a one-step direct marketing approach to sales D. add-on marketing E. sweeps marketing
42. (p. 470) A television ad for Pizza Hut telling you to look in your mailbox for coupon offers that will save you big bucks on your next pizza order is an example of: A. supplementary promotion B. support advertising C. a one-step direct marketing approach D. add-on marketing E. sweeps marketing
43. (p. 470-471) Which of the following statements concerning infomercials is true? A. Infomercials are only useful for marketing fads. B. Even critics of infomercials do not consider them to be deceptive. C. The lower costs on cable and satellite channels led to the growth of the infomercial. D. By law, infomercials have to be at least 30 minutes in length. E. Infomercials typically move consumers into the conviction stage of the hierarchy of effects model.
14-11
Chapter 14 - Direct Marketing
44. (p. 470-471) Which of the following statements about infomercials is true? A. By definition, infomercials must be at least 30 minutes in length. B. Retail stores are experiencing dramatic drops in sales as a result of the growing number of infomercials. C. Studies have proven infomercials are not watched and do not sell. D. Infomercials are never used by reputable, Fortune 500-type companies. E. Some consumer groups are concerned that infomercials may be confused with regular television programming.
45. (p. 470-471) Infomercials are: A. primarily designed to sell products that would be classified as fads B. always televised during off-viewing hours C. never appear on network television D. part of a two-step program, and their effectiveness cannot be measured E. typically produced by the advertiser
46. (p. 472) Due to clutter and relatively high costs, the use of _____ by direct marketers does not result in returns as high as those for other forms of direct marketing media. A. magazines and newspapers B. television and radio C. direct mail and catalogs D. newspapers, television, and radio E. newspapers, magazines, and catalogs
47. (p. 472) Which of the following statements about telemarketing is true? A. Telemarketing is defined as sales without face-to-face contact between the buyer and the seller. B. One of the problems that used to be associated with telemarketing is its potential for fraud and deception, but that problem has been completely eliminated by rigorous self-monitoring. C. Business-to-business marketers do not use telemarketing. D. Telemarketing is only used by for-profit companies. E. None of the above statements about telemarketing is true.
14-12
Chapter 14 - Direct Marketing
48. (p. 472) Audiotex is also called: A. electronic teleshopping B. e-tailing C. telemedia D. direct selling E. e-commerce
49. (p. 472) _____ is the use of telephone and voice information services (900, 800, and 976 numbers) to market, advertise, promote, entertain, and inform. It is a new dimension of telemarketing. A. Telepromotion B. Audiotex C. Promotional sponsorship D. Advertorial E. Teleshopping
50. (p. 473) The use of _____ allows individuals to gather information and purchase products and services via their home computer. A. electronic teleshopping B. telemedia C. audiotex D. infomercials E. telemarketing
51. (p. 473) _____ is shopping done on one's home computer, using a telephone and a keyboard. A. Direct selling B. Infomercials C. One-stop shopping D. Electronic teleshopping E. Telemarketing
14-13
Chapter 14 - Direct Marketing
52. (p. 473) _____ is the direct, personal presentation, demonstration and sales of products to consumers in their homes. A. A need-stimulus sales presentation B. Direct marketing C. A personal shopper program D. Consultative selling E. Direct selling
53. (p. 473) Which of the following are forms of direct selling? A. repetitive person-to-person selling, non-repetitive person-to-person selling, and party plans B. home shopping, out-of-home shopping, vending, and manufacturers' agents C. party plans, out-of-home shopping, and non-repetitive person-to-person selling D. manufacturers' sales representatives, party plans, and non-repetitive person-to-person selling E. brokers, manufacturers' agents, party plans, and professional sales
54. (p. 473) An Electrolux vacuum cleaner salesperson selling door-to-door is an example of which form of direct selling? A. repetitive person-to-person selling B. party plan C. two-step approach D. non-repetitive person-to-person selling E. support selling
55. (p. 474) The huge success of the National Do Not Call list has led direct marketers to use more: A. cross-selling through infomercial-based audio-texting B. production efficiency cost reductions C. direct mail, catalog and Internet marketing D. supported publicity E. door-to-door direct selling
14-14
Chapter 14 - Direct Marketing
56. (p. 474) The Mail Moves America campaign is designed to convey the positive side of direct mail and: A. counter antimail bills B. provide information for the U.S. Census C. establish a two-step marketing relationship between QVC and CBS D. comply with Federal Trade Commission regulations E. reduce energy consumption in America
57. (p. 475) Advertisers can measure the relative effectiveness of a direct marketing campaign quickly by looking at: A. cost per thousand (CPM) B. the breakeven point C. reach and frequency D. cost per order (CPO) E. net sales
58. (p. 475) Which effectiveness measure is most commonly employed in direct marketing? A. cost per order (CPO) B. cost per thousand (CPM) C. cost per man-hour (CPMH) D. cost per new prospect (CPNP) E. sales per database name (SDN)
59. (p. 475) _____ is a measure of cost effectiveness of advertising employed by direct marketers. A. Cost per thousand B. Cost per ratings point C. Cost per order D. frequency and reach E. Breakeven point
14-15
Chapter 14 - Direct Marketing
60. (p. 475-476) Which of the following describes an advantage an advertiser using direct marketing is likely to enjoy? A. effective segmentation capabilities B. low overall costs relative to sales C. ease of effectiveness measurements D. fewer time pressures as compared to other forms of media use E. all of the above
61. (p. 476) All of the following are advantages of direct marketing EXCEPT: A. ability to personalize B. selective reach C. segmentation capabilities D. creative flexibility E. rising costs
62. (p. 476) Which of the following describes an advantage offered by direct marketing to advertisers? A. accurate delivery to targeted audience B. ability to create a mood C. exclusive image D. high-budgeted direct-response ads on television E. none of the above
63. (p. 476) Which of the following was identified in the text as a disadvantage associated with direct marketing? A. poor image B. poor selectivity C. inability to measure effectiveness D. long lead time E. lack of creative flexibility
14-16
Chapter 14 - Direct Marketing
64. (p. 476) Disadvantages inherent in the use direct marketing include: A. difficulty in obtaining effectiveness measurements B. poor image factors C. lack of flexibility D. difficulty in acquiring TV time E. all of the above
65. (p. 477) Promoters of __________________________ are a prominent example of the "few bad apples" tarnishing the image of the direct marketing industry. A. Canadian car dealers B. AARP C. pharmaceuticals D. wonder products E. the U.S. Army See Ethical Perspective 14-2.
66. (p. 477) As postal rates increase, direct-mail advertising has frequently been replaced with: A. billboards B. e-mail C. use of Fedex D. telemarketing E. none of the above. Postal rates have decreased for large volume direct marketers.
14-17
Chapter 15 - The Internet and Interactive Media
Chapter 15 The Internet and Interactive Media
Multiple Choice Questions 1. (p. 481) The exchange of information in social network sites: A. cannot be used in an integrated marketing communications program B. is reducing the number of hours young people watch television C. is reducing the potential impact of advertising D. hurts business-to-business marketers more than it does retailers E. helps move potential consumers through the purchase process See opening vignette.
2. (p. 482) The "Catch-22" for social network sites is the more popular they become: A. the greater the potential for spam B. the less influence they have on participants C. the more business-to-business marketers will want to participate D. the popular they are to advertisers and less popular to members E. the greater the use of direct selling See opening vignette.
3. (p. 483) The Internet: A. is accessible to anyone with a computer and a modem B. was developed by the U.S. Defense Department C. is a worldwide means of exchanging information D. uses a series of interconnected computers E. is accurately described by all of the above
15-1
Chapter 15 - The Internet and Interactive Media
4. (p. 483) _____ is a worldwide means of exchanging information and communicating through a series of interconnected computers. A. The Internet B. Interactive television C. Teleshopping D. Audiotext E. Videotext
5. (p. 483-484) Which of the following is NOT one of the reasons offered for the rapid adoption of the Internet? A. Consumers desire for information B. Consumers desire to control the information they receive C. The ability to target customers effectively D. The ability of consumers to compare reputable versus questionable data sources E. The increase in high speed Internet access
6. (p. 484) One of the advantages of the Internet for direct marketers is it is: A. ubiquitous B. free C. interactive D. known for quality information E. all of the above
7. (p. 483) Compared to growth in total media advertising, in 2006 Internet advertising: A. grew at a rate nearly ten times that of total media B. grew at about the same rate as total media advertising C. finally grew faster than total media advertising D. declined as consumers pulled back from Internet usage E. declined as consumers responded to the housing market crisis See Figure 15-1.
15-2
Chapter 15 - The Internet and Interactive Media
8. (p. 484) Which of the following is NOT one of the factors leading to an effective Website? A. content B. commerce C. character D. community E. customization See Exhibit 15-1
9. (p. 485) Naomi has a small consulting business. She wants to use her website to provide background about her company's qualifications and answer frequently asked questions. Naomi will design her website with the primary objective of: A. brand image B. allowing customer sampling C. providing information D. handling objections E. all of the above
10. (p. 485) Brad is designing a website for his company. One of the company's objectives is maximizing communication. Brad will emphasize __________________ in his website design. A. customization B. links to other websites C. technological superiority D. sensual selectivity E. all of the above
11. (p. 485) What was the primary objective marketers sought when they first employed the Internet as a communications tool? A. to sell their product B. to stimulate repurchase of their product C. to level the competitive playing field D. to disseminate information E. to create a competitive advantage
15-3
Chapter 15 - The Internet and Interactive Media
12. (p. 485-486) Which of the following statements about the role of the Web site is true? A. Web sites are only used to disseminate information. B. A Web site is the place where a provider makes information available to users of the C. Internet. D. The maintenance of a Web site requires very little time and effort. E. Other media cannot be integrated with the Web site. F. Making a Web site work and having one work successfully is the same thing.
13. (p. 484-486) Which of the following is NOT a valid objective for a marketer who is employing the Internet as a communications vehicle? A. to create an image B. to generate interest C. to disseminate information D. to prevent price wars E. to create awareness
14. (p. 485) Facebook was cited by Adweek as one of the Best Performers in 2007. Facebook was recognized for: A. translation of print to web B. editorial depth C. millions of viewers spending over an hour per month on the site D. combining the best of TV and online E. being a place where people can discover needed information
15. (p. 485) Disney.com was cited by Adweek as one of the Best Performers in 2007. Disney.com was recognized for: A. translation of print to web B. editorial depth C. proficient in targeting campaigns based on geography and lifestyles D. innovative and interactive site serving kids and parents E. engaging stories and extraordinary experiences from around the world
15-4
Chapter 15 - The Internet and Interactive Media
16. (p. 486) Which of the following is a valid objective for a marketer who is employing the Internet as a communications vehicle? A. to create a sustainable competitive advantage B. to implement a diversification strategy C. to create a strong brand D. to prevent a price war E. to do all of the above
17. (p. 486) Cheerwine is a cherry-flavored cola. A visit to its Web site shows consumers where the regional cola can be purchased, offers visitors a store where they can purchase clothes and other items bearing the Cheerwine brand, a selection of recipes using Cheerwine, and links to the Cheerwine NASCAR site. From this information, which of the following communications objective does this site have? A. to generate interest in Cheerwine B. to create disintermediation C. to serve as a point-of-purchase display D. to replace traditional advertising E. to disseminate information to nonusers
18. (p. 486) CDW Computer Centers sells computer equipment to small- and mid-sized businesses. Its Web site provides in-depth information on its products, its customer service, its shipping policies, and its suppliers. Like most business-to-business sites, the primary objective of this Web site is to: A. create a sustainable competitive advantage B. create an image C. disseminate information D. replace advertising in trade journals E. prevent price wars
19. (p. 487) Marketers have found it most difficult to _____ on the Internet because of a need to develop creative strategies adapted to the medium. A. disseminate information B. provide current price lists C. create viable links to suppliers and other sites of interest to users D. overcome buying center barriers E. create an image
15-5
Chapter 15 - The Internet and Interactive Media
20. (p. 486-487) Which of the following statements explains why marketers have found it so difficult to create a strong brand using the Internet? A. Managers' bottom-line focus makes the costs seem too high. B. Branding and direct response may be counterproductive. C. Managers do not have a clear understanding of the role of the Web in the branding process. D. Many marketers mistakenly believe the creation of awareness or the generation of interest will lead to a strong brand. E. All of the above statements can be used to explain why marketers have found it so difficult to create a strong brand using the Internet.
21. (p. 488) The manufacturer of Aleve pain reliever offered a free sample of the product to visitors who registered at its Web site. In this case, the communications objective for the Web site was to: A. disseminate information B. create a route for disintermediation C. create an e-commerce site D. stimulate trial E. create a brand image
22. (p. 488) Which of the following statements about how the Internet has changed marketing is true? A. The Internet cannot be used to create a strong brand image. B. The use of the Internet has led to a moratorium on building retail stores. C. E-commerce on the Internet has replaced in-person shopping. D. Internet both complements and relies on other media in an effective IMC program. E. The Internet is not effective in an integrated marketing communications program.
23. (p. 490) The most common form of advertising on the Web is: A. pop-ups B. interstitials C. banners D. links E. sponsorships
15-6
Chapter 15 - The Internet and Interactive Media
24. (p. 490) At the Web site for Ivillage.com, there is an ad that stretches across the top of the page for Clinique cosmetics. If you click on the ad, it will take you to the Clinique Web site where you can purchase Clinique cosmetics. The Clinique ad that appears at the iVillage Web site is an example of a(n): A. interstitial B. banner C. pop-up D. sponsorship E. CPC
25. (p. 490) If you go to the GirlsOn.com Web site, you'll find a book section sponsored by Amazon.com. Amazon.com, the largest retailer of books on the Internet also has a similar arrangement with Dogpile.com, and at other computer search engine Web sites. Amazon.com is using: A. a button B. a banner C. a regular sponsorship D. an interstitial E. push technology
26. (p. 490) The Weather Channel provides dollars in return for its name association with www.iwon.com, an Internet portal. The Weather Channel also contributes weather information to the site. What method for advertising on the Internet does the Weather Channel use? A. interstitial B. a regular sponsorship C. push technology D. pop-unders E. content sponsorship
15-7
Chapter 15 - The Internet and Interactive Media
27. (p. 490) While Ginger waited for iVillage.com's apparel site to download, a small ad encouraging her to check out the summer clothes at Nordstrom department store and at its Web site appeared on her computer screen. The Nordstrom's ad is an example of: A. content sponsorship B. a pop-up C. push technology D. functional sponsorship E. a pop-under
28. (p. 490) After Jones finished reading an article on the 101 Dumbest Moments in Business at the Business 2.0 Web site, he closed the file. Then he saw on his screen an ad that invited him to subscribe to the magazine. This ad was an example of: A. content sponsorship B. a pop-up C. push technology D. functional sponsorship E. a pop-under
29. (p. 490) ______________ are ads that appear on your computer screen while you are waiting to download content from the site? A. Pop-unders B. Surround sounds C. Interstitials D. Skyscrapers E. Floating ads
30. (p. 490) _____ allow companies to push a message to a consumer rather than wait for them to find it. A. Webcasting technologies B. Webscrolls C. Interstitials D. Internet contests E. Site buttons
15-8
Chapter 15 - The Internet and Interactive Media
31. (p. 491) Kendra works for an environmental company that consults with governments and provides them with information necessary to revitalize damaged environments. Every morning when she logs onto her computer, she finds articles on the latest research on environmentally friendly technology, such as cola-powered cars. Advertisers of similar products appear as banner ads on Kendra's computer. This is an example of: A. sales promotions B. push technology C. Webscrolling D. SPAM E. direct selling
32. (p. 491) There are many topics of interest on the Web site called www.GirlsOn.com, but Abby is only interested in current movies and books, and Ruby only wants to read about what's new in clothes and make-up. Both have downloaded screensavers from the GirlsOn site and specified the kind of information they are most interested in viewing. This is an example of: A. personalized webcasting B. SPAM C. content-specific e-mail D. individualized advertising E. individualized pull technology
33. (p. 491) Funster.com is a Web site for people who enjoy word games and competing against others who enjoy word games. On the Funster.com Web site is a(n) _____ to Amazon.com where you can buy books that improve your word game skills. A. click-through B. URL C. link D. surf button E. interconnect
15-9
Chapter 15 - The Internet and Interactive Media
34. (p. 491) One of the most used forms of advertising on the Internet is: A. click-through B. URL C. paid search D. surf button E. interconnect
35. (p. 491) Many shopping bots have become ___________ or search engines in which advertisers pay only when a consumer clicks on their ad or link from a search engine page. A. paid search B. URL C. portal D. surf button E. interconnect
36. (p. 491) If, when Internet visitors using Yahoo's search engine type in travel books, one of the advertisements they see is for Lonely Planet guides, Lonely Planet is using a ___________ to target Internet users interested in their products. A. interconnect B. URL C. portal D. surf button E. paid search
37. (p. 491) ______________ dominates the paid search advertising market. A. Netscape B. GoArmy.gov C. Google D. Yahoo E. Microsoft
15-10
Chapter 15 - The Internet and Interactive Media
38. (p. 492) One of the criticisms of paid search advertising is that it is: A. ubiquitous B. wasted monies because consumers would have gone to the advertiser's site anyway C. used by the government in surveillance D. only available to large companies E. all of the above
39. (p. 492) Advertisers which target consumers based on the website-surfing patterns are using: A. behavioral targeting B. advertising allowance analysis C. rich media marketing D. video substitution selection E. contextual advertising
40. (p. 492) One of the criticisms of behavioral targeting is: A. the potential for deception B. wasted monies because consumers would have gone to the advertiser's site anyway C. is can be used by the government in surveillance D. it is only available to large companies with huge advertising budgets E. cookies can cause indigestion
41. (p. 492) Advertisers which target their advertising based on the information provided on web pages are using: A. behavioral targeting B. advertising allowance analysis C. rich media marketing D. video substitution selection E. contextual advertising
15-11
Chapter 15 - The Internet and Interactive Media
42. (p. 492) Nevada Bob's Golf company want to place ads on websites providing information about golf and golf products. Nevada Bob's want use: A. behavioral targeting B. advertising allowance analysis C. rich media marketing D. video substitution selection E. contextual advertising
43. (p. 492) The increasing use of broadband among Internet users has increased the use of ______________ advertising. A. behavioral B. advertising allowance C. rich media D. video substitution E. sub-textual
44. (p. 492) Which of the following is NOT one of the types of rich media being used by advertisers? A. web billboards B. online commercials C. webisodes D. video on demand E. interactive banner ads
45. (p. 492) One of the amazing aspects of rich media advertising is: A. the lack of concern among consumers B. enthusiasm with which traditional marketers have embraced the medium C. how accepting consumers are of the medium D. the rapid evolution of new advertising alternatives E. none of the above
15-12
Chapter 15 - The Internet and Interactive Media
46. (p. 492) Podcasts are being used by advertisers to reach: A. older viewers B. international markets C. young listeners D. baby boomers E. none of the above
47. (p. 492) _________ organize and format Web-based content in a standard way, sending out notification whenever new material is available. A. Blogs B. Vlogs C. Podcasts D. Really Simple Syndication E. none of the above
48. (p. 494) One of the questions viewers of user-generated video sites (UGVs) are concerned about is: A. will impersonal communications replace personal communications? B. is there sufficient editorial depth needed to overcome consumer objections? C. will the government censor sites critical of their administration? D. is it real or a craftily created commercial? E. all of the above
49. (p. 494-495) To get retail florists to use its Web site for ordering shop supplies, an Internet seller enters every retailer who places an order during a specified period of time in a sweepstakes. The winner of the sweepstakes receives a $1,000 check and gets his or her picture in the next issue of the trade's leading journal. The sweepstakes is promoted in several trade journals aimed at those in the floral business. This is an example of how the Internet can be used in combination with _____ in an integrated marketing communications program. A. publicity and sales promotion B. personal selling, publicity, sales promotion, and advertising C. trade promotion and advertising D. sales promotion, advertising, and public relations E. advertising, consumer promotion, and personal selling
15-13
Chapter 15 - The Internet and Interactive Media
50. (p. 495) Buick conducted a sweepstakes in which people could enter to win the car Tiger Woods uses during tournaments. To enter sweepstakes, consumers had to visit Buick's site. Buick used which promotional mix element on the Internet? A. direct marketing B. personal selling C. television advertising D. public relations E. sales promotions
51. (p. 495) Which element within the marketing mix would you expect to be most used by a Web site called www.winfreestuff.com? A. direct marketing B. personal selling C. television advertising D. public relations E. sales promotions
52. (p. 495) A professional fisherman who has freshly-caught salmon in Oregon that he wants to sell can go to www.GoFish.com and locate and negotiate a sale with a restaurant owner in New Jersey who is interested in serving salmon to restaurant patrons. The connecting of buyers and sellers is one way the Internet can perform which promotional activity? A. direct marketing B. personal selling C. television advertising D. public relations E. sales promotions
53. (p. 494-495) Which of the following statements about personal selling and the Internet is true? A. The Internet is quite effective at enhancing and supporting sales efforts. B. The Internet can be used to stimulate trial purchases by customers who cannot be efficiently reached by personal selling efforts. C. The Internet has led to some cutbacks in existing sales personnel. D. Visitors to a company's Web site can become valuable leads for the firm's salespeople. E. All of the above statements about personal selling and the Internet are true.
15-14
Chapter 15 - The Internet and Interactive Media
54. (p. 495) Which of the following statements describes the relationship between the Internet and personal selling in an integrated marketing communications program? A. The Internet is not a good source of leads for a company's sales force. B. Customer service can only be provided by an actual person. C. One-to-one relationships can only be established by the salesperson and not on a computer. D. In a well-designed IMC program, the use of the Internet and personal selling should be complementary. E. A company's Web site cannot be expected to stimulate trial purchase; only salespeople can do this.
55. (p. 495) Recent press releases about what is going on in the company are available at the ArvinMeritor Web site. Anyone doing research on the company has access to these stories. In this way, ArvinMeritor uses the Internet as a(n) _____ tool. A. sales promotion B. personal selling C. direct marketing D. public relations E. advertising
56. (p. 495) Good Mews is a no-cage, no-kill cat shelter that tries to care for and find homes for cats and kittens that have been abandoned by their owners. The non-profit group uses a Web site to show cats that are available for adoption, how cats are cared for at the shelter, and to spotlight various volunteers' efforts. This is an example of how the Internet can be used as a(n) _____ tool. A. sales promotion B. personal selling C. direct marketing D. public relations E. advertising
15-15
Chapter 15 - The Internet and Interactive Media
57. (p. 495) Yesterday when Eli checked his e-mail, he had an offer to buy software that would make it easier for him to file his income tax next year. This e-mail offer is an example of how the Internet and _____ can complement each other. A. sales promotion B. personal selling C. direct marketing D. public relations E. interconnects
58. (p. 497) When Dakota checked her e-mail after returning from a week's trip, she found had 53 e-mails and only two contained information she needed. The rest were unwanted and unrequested and examples of: A. mistargted e-mail B. electronic commercial messages C. SPAM D. interconnects E. interstitials
59. (p. 497) Which of the following statements about e-commerce is true? A. Consumers buy more on the Internet than businesses. B. Consumers sales over the Internet are only a fraction of business-to-business sales. C. Research indicates interest in e-commerce has peaked and will begin a steady decline. D. Consumers do not purchase automobiles over the Internet. E. All of the above statements about e-commerce are true.
60. (p. 497) E-commerce is _____ on the Internet. A. indirect distribution B. integrated marketing commerce C. direct sales D. personal selling E. b-to-b sales
15-16
Chapter 15 - The Internet and Interactive Media
61. (p. 498) A Web site operator that wanted to collect information on how a site user navigated the site and which parts of the site were the most popular could use: A. page impressions B. clicks C. unique measurement (browsers, visitors, and users) D. ad impressions E. all of the above See Figure 15-3.
62. (p. 498) Which of the following methods has been employed in an attempt to measure advertising effectiveness on the Web? A. page impressions B. clicks C. unique measurement (browsers, visitors, and users) D. ad impressions E. all of the above See Figure 15-3.
63. (p. 498) Which of the following methods of measuring effectiveness of advertising on the Web has become the universally accepted method adopted by ad agencies? A. hits B. clicks C. impressions/page views D. click-through rate E. none of the above
64. (p. 498-499) A Web site operator that wanted to use online measuring could use: A. tracking B. sales figures C. online surveys D. retention and recall tests E. all of the above
15-17
Chapter 15 - The Internet and Interactive Media
65. (p. 498-499) Which of the following is a source of measurement data for a Web site operator or a business that is interested in setting up a Web site? A. Interactive Advertising Bureau B. Arbitron C. eMarketer D. MRI and SMRB E. all of the above
66. (p. 500) Which of the following has been cited as an advantage associated with using the Internet? A. its ability to specifically target market B. interactive capabilities of the medium C. information access D. potential for creativity E. all of the above
67. (p. 500) Which of the following has been cited as an advantage associated with using the Internet? A. excellent reach B. annoyance C. low costs D. ability to tailor message to target market E. little potential for creativity
68. (p. 500) Which of the following has been cited as an advantage associated with using the Internet? A. high reach B. low costs C. annoyance D. lack of sales potential E. none of the above
15-18
Chapter 15 - The Internet and Interactive Media
69. (p. 501) Which of the following has been cited as a disadvantage associated with using the Internet? A. inability to use message tailoring B. lack of sales potential C. costs D. poor reach E. all of the above
70. (p. 501) For many users of the Internet, the length of time it takes to download a site to increase dramatically creates __________. Some people refuse to visit a site if it takes what they determine to be an inordinate amount of time to download. A. backup B. annoyance C. computer real time D. the Internet traffic jam E. Web entanglement
71. (p. 501) Which of the following has been cited as a disadvantage associated with using the Internet? A. clutter B. downloading speed C. inability to pinpoint audience characteristics D. difficulty with measuring its communication effectiveness E. all of the above
72. (p. 501) Some marketers believe the Internet will eventually replace traditional forms of advertising. Others disagree. Which of the following weaknesses of the Internet would support those who disagree? A. lack of reliability of the research numbers generated B. its inability to provide in-depth information C. its inability to offer sight and sound D. its lack of sales potential E. all of the above
15-19
Chapter 15 - The Internet and Interactive Media
73. (p. 502) Which of the following is NOT one of the reasons the Internet has been called the Wild Wild West? A. invasion of privacy B. blog rumors C. click fraud D. Really Simple Syndication E. paid brand advocates Ethical Perspective 15-1
74. (p. 502) For advertisers the Internet has been called the Wild Wild West because: A. most of the Internet companies are located in the western part of the United States B. there are little or no rules C. so many head-to-head battles have occurred in the Internet industry D. strategic marketing can be practiced with a winner-take-all showdown E. the themes of western movies are easily transferred to Internet advertising Ethical Perspective 15-1
75. (p. 503) Interactive TV, interactive CD-ROMs, kiosks, and interactive phones: A. are viewed by businesses as breeches of consumer rights to privacy B. can be used as contributors to an IMC program C. cannot be linked with traditional advertising media D. will replace the Internet in most IMC programs E. are not viewed as being viable elements within a well-designed IMC program
76. (p. 504) Adoption of _____________ technology in Asia has outpaced that in the United States but based on the experience of marketers in other parts of the world it is becoming part of many company's IMC program. A. land-line B. outsourcing C. rapid dissemination D. wireless E. seamless statistical
15-20
Chapter 16 - Sales Promotion
Chapter 16 Sales Promotion
Multiple Choice Questions 1. (p. 507) In the opening vignette, Macy's learned the hard way that: A. organic is not necessarily natural B. consumers are sensitive to brand re-identification C. consumers love a deal D. fashion does not always equal style E. coupons are better than cost-cutting See opening vignette.
2. (p. 508) In the opening vignette, Macy's learned that extensive use of discounts and promotional offers: A. reduces the effectiveness of nonfranchise-building promotions B. undermines their ability to build and maintain brand equity C. creates a game that can only be refunded through bonus packs D. are effective substitutes for self-liquidating off-invoice allowances E. create accounting nightmares See opening vignette.
3. (p. 509) ______ is defined as a direct inducement that offers an extra value or incentive for the product to the sales force, distributors, or to ultimate consumer with the primary objective of creating an immediate sale. A. Brand advertising B. A sales promotion C. Direct marketing D. A promotional allowance E. Specialty marketing
16-1
Chapter 16 - Sales Promotion
4. (p. 509) Which of the following elements of the integrated marketing communications programs is designed to provide an extra incentive to consumers to purchase a brand? A. advertising B. direct mail C. public relations D. price E. sales promotion
5. (p. 509) Which of the following statements does NOT describe an aspect or characteristic of sales promotion? A. A sales promotion provides an extra incentive to buy. B. A sales promotion is an acceleration tool designed to speed up the selling process. C. Sales promotion can be targeted to different parties in the marketing channel. D. Sales promotions now account for more of marketer's promotional budget than media advertising. E. Most of the sales promotional dollars are spent on consumer-oriented promotions.
6. (p. 509) Marketers can target sales promotion efforts to: A. consumers B. retailers C. distributors D. salespeople E. all of the above
7. (p. 509) When a marketer distributes coupons for a brand with a specific expiration date, they are attempting to use sales promotion as a(n): A. brand franchise building promotion B. brand equity building promotion C. acceleration tool D. value added tool E. promotional marketing tool
16-2
Chapter 16 - Sales Promotion
8. (p. 509) Coupons, bonus packs, premiums and samples are promotional offers that are targeted toward: A. consumers B. retailers C. wholesalers D. salespeople E. all of the above
9. (p. 510) Consumer-oriented sales promotions are part of a promotional ______ strategy. A. EDLP B. pull C. trade D. premium E. push
10. (p. 510) All of the following are examples of trade-oriented sales promotion activities EXCEPT: A. off-invoice allowances B. promotional allowances C. point-of-purchase displays D. trade shows E. coupons
11. (p. 510) All of the following are examples of consumer-oriented sales promotion activities EXCEPT: A. samples B. coupons C. refunds/rebates D. trade shows E. bonus packs
16-3
Chapter 16 - Sales Promotion
12. (p. 510) Which of the following statements about sales promotion programs is true? A. Sales promotion programs are targeted only at consumers. B. Many sales promotion programs are designed to motivate distributors and retailers to carry a product and push it to their customers. C. Nearly three quarters of all sales promotion dollars are spent on consumer promotions. D. Sales promotion dollars for most companies are allocated equally between consumers and the trade. E. Sales promotion strategies aimed at marketing intermediaries are called pull strategies.
13. (p. 511) Among major packaged goods companies, the greatest percentage of the promotional budget is allocated to: A. media advertising B. consumer promotions C. trade promotions D. direct marketing E. trade shows
14. (p. 511) Among major packaged goods companies, spending on _____ has remained relatively constant over the past decade. A. trade promotion B. consumer promotion C. media advertising D. direct mail E. public relations activities
15. (p. 511) How has the view of sales promotions changed during the past decades? A. Sales promotions are now considered an essential part of an organization's branding strategies. B. Sales promotion tactics are now developed before the 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. There is no difference between how marketers used to treat sales promotions and how they treat them now.
16-4
Chapter 16 - Sales Promotion
16. (p. 511) Why are organizations like KFC, Heinz Foods, Toys R Us, and Anheuser Busch placing more emphasis on sales promotions than ever before? A. because they want to use sales promotions rather than engage in price wars B. because they are convinced sales promotions can be used to build brand equity more effectively and more quickly than other promotional mix elements C. because the use of sales promotions allows them to cut back and/or completely eliminate their use of coupons D. because consumers have less time to shop E. because the use of allowances, deals, and premiums confuse consumers
17. (p. 511) Which of the following helps to explain the increase in sales promotion activities over the last decade? A. the increase of brand loyalty in many product categories B. the tremendous decrease in the number of new products C. the increased emphasis on long term strategy and performance by most companies D. the advertising clutter problem E. all of the above
18. (p. 512) Which of the following developments have resulted in a transfer of power from manufacturers to retailers? A. The advent of optical scanners and computers gave manufacturers access to sales information. B. Manufacturers are spending more money on media advertising. C. Consolidation in the grocery industry has resulted in larger chains with greater buying power and clout. D. Manufacturers are spending more money on marketing research. E. Manufacturers are introducing more private-label brands.
19. (p. 512) Consumers have become more sensitive and responsive to sales promotion because: A. consumers are multi-brand loyal B. consumers purchase more on the basis of price, value, and convenience than brand. C. many purchase decisions are being made in the store where many sales promotions are found D. marketers are offering consumers more promotions to attract and maintain customers E. of all of the above reasons
16-5
Chapter 16 - Sales Promotion
20. (p. 512) Marketing planning and reward systems may lead to an increase in the use of sales promotion because sales promotions encourage: A. managers to use advertising to build brand equity B. managers to use consumer-oriented sales promotion to meet long-term performance goals C. sales reps to encourage their marketing managers not to use promotions to help them get orders from retailers D. the use of price-oriented promotions to generate short-term sales E. all of the above
21. (p. 514) Which of the following statements about the proliferation of new products in the consumer marketplace is true? A. Consumer product companies launch approximately 20,000 new products each year. B. Sales promotion programs play an important role in motivating retailers to allocate shelf space to new products. C. Supermarkets now carry an average of 30,000 different products compared to 13,067 in 1982. D. Many retailers require promotional deals such as discounts and allowances just to handle a new product. E. All of the above statements about the proliferation of new products in the consumer marketplace are true.
22. (p. 514) Which of the following statements about the proliferation of new products in the consumer marketplace is true? A. Consumer product companies launch approximately 20,000 new products each year. B. Only when dealing with pricing strategy will marketing managers have to be concerned about slotting allowances. C. Supermarkets today carry more SKUs of specific products, and fewer different brands of products than they once did. D. Manufacturers are the leading users of promotions, and their choices of sales promotions are not influenced in any way by retailers. E. All of the above statements about the proliferation of new products in the consumer marketplace are true.
16-6
Chapter 16 - Sales Promotion
23. (p. 514) How are marketers responding to the fragmentation of the consumer market? A. They are using more direct selling to make event sponsorship more successful. B. They are using less direct marketing. C. They are using more sales promotions that are tied into local events. D. They are employing clipping services to determine the effectiveness of their press releases. E. They have basically ignored the fragmentation of the consumer market and continued doing business as usual.
24. (p. 513) Wal-Mart is known for its marketing ______________, influencing all aspects of marketing including sales promotions by brand manufacturers. A. simplicity B. power C. linearity D. cooperation E. religion See IMC Perspective 16-1.
25. (p. 515) What do many businesspeople give as a reason for the increasingly short-term focus on performance and sales volume in business today? A. the primacy effect B. the more rapid movement of consumers through the hierarchy of effects model C. a habit of frequent repositioning D. synergistic buying E. the brand management system
26. (p. 515) Marketers who are being held accountable for strategy implementation often need concrete methods to show the effectiveness of their decision-making. For this reason, many marketers rely on: A. personal selling instead of mass-media advertising B. a strategy that eliminates any advertising carryover effect C. sales promotions such as coupons and price discounts D. event sponsorships E. out-of-home advertising media
16-7
Chapter 16 - Sales Promotion
27. (p. 515) _____ is a recent development whereby companies are customizing their sales promotion programs for key retailers. A. Incentive marketing B. Accountability marketing C. Account-specific marketing D. Trade marketing E. Franchise building
28. (p. 516) Another name for account-specific marketing is: A. a planogram program B. comarketing C. dual sponsorship D. piggyback marketing E. key-account communications
29. (p. 516) The toy company Hasbro teamed with the retailer Toys R Us to create direct mail booklets offering discounts on Hasbro toys good only at Toys R Us stores. This is an example of: A. incentive marketing B. a franchise building promotion C. brand equity building D. account-specific marketing E. none of the above
30. (p. 516) Heinz Foods created a Cinco de Maio celebration for a large supermarket that targets Mexican-Americans, a market that Heinz sees as an area of potential growth. Heinz paid for a mariachi band to serenade shoppers during the day and also set up a food-sampling booth at the store's entry. This would be an example of: A. incentive marketing B. a franchise building promotion C. brand equity building D. account-specific marketing E. none of the above
16-8
Chapter 16 - Sales Promotion
31. (p. 516) Some promotional studies indicate the number of sales promotions being offered to consumers is limiting its effectiveness as a marketing tool. In other words, _____ is affecting sales promotion just as it has advertising. A. clutter B. the recency effect C. the carryover effect D. noise E. subliminal perception
32. (p. 516) Critics of sales promotions contend the increase in sales promotions is leading to a decrease in: A. retailer power B. ad readership scores C. brand equity D. promotional traps E. consumer primacy
33. (p. 516) Which of the following statements correctly describes the relationship between brand equity and sales promotion? A. Critics argue sales promotion spending contributes to the destruction of brand equity. B. Critics argue every dollar that is spent on promotion rather advertising devalues the brand. C. Critics argue sales promotion is leading to reductions in brand equity because it comes at the expense of media advertising. D. Not all sales promotion activities detract from brand equity. E. All of the above statements about the concerns over the relationship between brand equity and advertising and promotion are true.
34. (p. 517) Sales promotion activities that communicate distinctive brand attributes and contribute to the development and reinforcement of brand identity are: A. nonfranchise building promotions B. franchise building promotions C. high-involvement sales promotions D. sales promotion traps E. event marketing
16-9
Chapter 16 - Sales Promotion
35. (p. 517) Which of the following statements describes how brand equity is affected by the increased role of sales promotion? A. Critics argue sales promotions generally result in higher brand equity. B. Sales promotions do not contribute to the erosion of brand equity. C. Proponents of brand equity argue increased spending on sales promotion is coming at the expense of media advertising, and this is leading to declines in brand equity. D. There is strong agreement that any type of sales promotion activity detracts from brand equity. E. All of the above statements describe how brand equity is affected by the increased role of sales promotion.
36. (p. 517) In a sales promotion sponsored jointly by Puerto Rico Tourism Board and Rums of Puerto Rico, couples were invited to enter a contest for a chance to win the perfect wedding. According to the ad, enjoying Puerto Rico hospitality is "As Easy As Saying I Do." The contest is an example of: A. a nonfranchise building promotion B. a franchise building promotion C. a high-involvement sales promotion D. a sales promotion trap E. event marketing
37. (p. 517) Tropicana developed a "Win the Perfect Vacation" sweepstakes to complement an advertising campaign theme promoting its grapefruit juice as the perfect beverage. This is an example of: A. a nonfranchise building promotion B. a franchise building promotion C. a high-involvement sales promotion D. a sales promotion trap E. event marketing
16-10
Chapter 16 - Sales Promotion
38. (p. 517) Consumer-franchise-building for a brand: A. is the exclusive responsibility of advertising B. is accomplished through short-term price-oriented promotions C. is impossible to do through consumer promotions D. can be accomplished through consumer promotions that reinforce established brand images or positioning E. is becoming less important to marketers as competition intensifies
39. (p. 517) The building or reinforcement of consumer-franchise or equity for a brand: A. can really only be accomplished through advertising B. can be done with carefully planned sales promotion programs C. can be done with more easily through trade-oriented promotions than through consumeroriented promotions D. is really not very important given the prolonged economic prosperity the U.S. economy has been in E. is accurately described by none of the above
40. (p. 5017) Which of the following is an example of a sales promotion that can be used to contribute to franchise building? A. a 50-cents off coupon on a box of Minute Rice to encourage repurchase B. a sweepstakes or contest that uses a theme which is consistent with the image or positioning of the brand C. a $50-rebate offer on the purchase of a Lane cedar chest D. a price reduction of $5 on a pair of Lee jeans E. all of the above
41. (p. 517) Which of the following is an example of a nonfranchise building promotion? A. consumer sampling B. contests targeted to ultimate consumers C. price-off deals D. event sponsorship E. frequency programs
16-11
Chapter 16 - Sales Promotion
42. (p. 518) Van Kamp Sea Foods devotes most of its marketing budget to trade discounts in the form of off-invoice and promotional allowances so its canned tuna and salmon brands can remain price competitive with private label brands. The heavy emphasis on trade promotion makes it difficult to: A. encourage consumers to buy on the basis of price B. build and maintain store equity for retailers that carry the Van Kamp brand C. build relationships with the trade D. build a Van Kamp brand identity and image E. encourage retailers to use Van Kamp's planograms
43. (p. 518) Promotional activities designed to accelerate the purchase process and generate an immediate increase in sales without communicating information about a brand's unique features or benefits are known as: A. consumer franchise-building promotion B. nonfranchise-building promotion C. sweepstakes D. image promotions E. trade promotions
44. (p. 518) Which of the following would be NOT an example of a nonfranchise-building promotion? A. price-off deals B. bonus packs C. rebates D. image advertising E. promotional deals to retailers
45. (p. 518) The sales promotion tool that critics contend is most guilty of detracting from brand equity and at the same time being detrimental to a brand franchise is: A. sweepstakes B. contests C. frequent patronage programs D. trade promotions E. event sponsorships
16-12
Chapter 16 - Sales Promotion
46. (p. 518) Which of the following is a reasonable objective for consumer-oriented sales promotions? A. to obtain trial of a new brand B. to encourage repurchase of a brand C. to increase consumption of an established brand D. to enhance advertising and marketing efforts E. all of the above
47. (p. 518) When Campbell Soup Company introduced its V8 Splash fruit medley juices, the company gave out free samples at Sam's Clubs and distributed millions of 50-cents-off coupons. The objective(s) of these sales promotion tools was to: A. defend the brand's customer base B. obtain trial and repurchase C. target a specific market D. increase consumption of an established brand E. create long-term brand equity
48. (p. 519) Which of the following statements about sales promotions is true? A. Ivory soap carving contests were used to support the war effort in World War II. B. McDonald's was sued for illegally using the Monopoly game contest. C. The Oscar Mayer Wienermobile was the first sales promotion premium offer. D. Sweepstakes are seen as more involving and more motivating than contests. E. The oldest, most widely used, and most effective sales promotion tool is the cents-off coupon. See IMC Perspective 16-2.
49. (p. 519) The American Airline AAdvantage promotional program rewarded consumer: A. loyalty B. diversity C. diversification D. price sensitivity E. demographic segmentation See Figure 16-2.
16-13
Chapter 16 - Sales Promotion
50. (p. 520) Post Cereal is introducing a new kind of breakfast cereal that is soy-based and targeted at health-conscious adults between the ages of 25 and 50. The marketing objectives for the introduction are to generate trial and repeat purchase during the 3-month product launch. Which of the following sales promotion tools should work best for Post? A. sampling and rebates B. rebates and high value checkout coupons C. bonus packs, trade allowances, and slotting fees D. high value in package coupons and sampling E. sweepstakes, contests, and rebates
51. (p. 520) Sales promotion tools could be used to increase sales of an established brand by: A. giving away samples to attract nonusers of the brand B. using coupons to give users of a competitive brand an incentive to switch C. identifying new uses for the product D. using a premium offer that appeals to people who use a competitive brand E. doing all of the above
52. (p. 520) The objective of a $.75-off coupon for Selsun Blue dandruff shampoo was most likely to: A. attract non-users of the product category B. identify new uses for the brand C. attract users of a competitive brand D. show new usage situation for the brand E. do none of the above
53. (p. 521) Which of the following describes a sales promotion that can be used by a marketer to defend its current customer base? A. Use special price promotions to encourage consumers to stock up on the brand. B. Use bonus pack promotions to get consumers to buy larger sizes. C. Use coupons to encourage consumers to continue to buy the brand. D. Use trade promotions to encourage retailers to display and promote the brand. E. Do any or all of the above.
16-14
Chapter 16 - Sales Promotion
54. (p. 521) Smucker's ran a sweepstakes promoting Smucker's ice cream toppings. The sweepstakes was designed to let NASCAR fans know Smucker's sponsored a NASCAR racing team. The purchase of any specially-marked toppings gave customers a chance to win a new Ford Taurus or thousands of other prizes instantly from Smucker's. In this example, a sales promotion was used to: A. attract non-users of the product category B. identify new uses for the brand C. attract users of a competitive brand D. show new usage situation for the brand E. target a specific market segment
55. (p. 522) _____ is generally considered the most effective method for generating trial of a new product. A. Couponing B. Sampling C. A rebate award D. A bonus pack E. A contest
56. (p. 522) Samples would be an appropriate promotional strategy to: A. increase the market share of an established brand B. induce trial of a new brand that is clearly superior to the competition C. assist consumers to learn a new behavior D. introduce a new product to the marketplace E. do all of the above
57. (p. 522) Samples would be an appropriate promotional strategy to: A. support an every day low price (EDLP) strategy B. as the key tactic in a push promotional strategy C. introduce a new flavor of sport drink to the marketplace D. support reminder advertising for a product in the decline stage of its product life cycle E. do all of the above
16-15
Chapter 16 - Sales Promotion
58. (p. 522) Sampling programs are most effective when the product: A. is of low unit value and samples do not cost too much B. is divisible and can be broken into small sampling units C. has a short purchase cycle so that consumers will be motivated to make an immediate purchase D. has features and benefits that are easily experienced and appreciated E. has any or all of the above characteristics
59. (p. 522) Sampling for a product such as expensive skin cream that is designed to reduce wrinkles over a long period of time might not be feasible because: A. it cannot be broken down into small sizes B. it may be too expensive to give away sample sizes that would be adequate to demonstrate the cream's benefits since it has to be used repeatedly C. it may be too difficult to find a way to distribute the samples D. consumers may think it is of poor quality since samples are being given away E. it would create an easily imitated competitive advantage
60. (p. 522-523) Which of the following is NOT a sampling distribution method? A. door-to-door sampling B. sampling through the mail C. in-store sampling D. in or on package sampling E. self-liquidating sampling
61. (p. 523) _____ is a common sampling technique for small, lightweight products that are nonperishable. A. Door-to-door sampling B. Sampling through the mail C. In-store sampling D. On-package sampling E. Location sampling
16-16
Chapter 16 - Sales Promotion
62. (p. 523) Which of the following statements about on-package sampling is true? A. This can be a very cost effective sampling method, particularly for multiproduct companies. B. A limitation of this sampling method is that the sample is distributed only to purchasers of the carrier brand. C. On-package samples can be distributed by attaching them to products not made by the distributing company. D. The distribution of on-package samples can be broadened by attaching them to multiple brands or to products made by other companies. E. All of the above statements about on-package sampling are true.
63. (p. 523) Which of the following statements explains why marketers have recently increased their use of sampling? A. Major companies have entered the sampling business and created more competition, which has helped to keep sampling costs down. B. New technologies and creative marketing are driving new sampling methods that allow marketers to target their samples more effectively. C. The simplification of sales promotion programs by companies such as Procter & Gamble is prompting these marketers to move away from coupons and price promotions in favor of samples. D. Marketers believe sampling meets the complementary goals of introducing consumers to their products and getting retailers to support their programs. E. All of the above statements explain why marketers have recently increased their use of sampling.
64. (p. 524) The oldest, most widely used, and most effective sales promotion tool is: A. cents-off coupons B. sampling C. rebates D. event sponsorship E. bonus packs
16-17
Chapter 16 - Sales Promotion
65. (p. 524) _____ distributed the first coupon in 1895. A. C. W. Post Co. B. General Motors C. R. J. Reynolds D. Procter & Gamble E. Bank of America
66. (p. 525) An advantage of coupons is that they: A. elicit faster consumer response than samples B. generally elicit immediate response from consumers C. are very effective even without brand name awareness D. allow a marketer to offer a price reduction to consumers who are price sensitive without having to reduce the price for everyone E. build brand loyalty
67. (p. 525) A recent study of coupon redemption patterns found: A. many coupons are redeemed just before the expiration date rather than in the period following the initial drop B. most coupons are redeemed immediately following the initial coupon drop C. most coupons are redeemed on Thursdays D. most consumers do not use coupons E. none of the above is true
68. (p. 525) Which of the following statements describes a limitation associated with using coupons as sales promotional tools? A. Coupons offer price reductions only to those consumers who are price sensitive. B. Coupons are often used by consumers who are already loyal to the brand. C. Coupons for established brands or products are not redeemed. D. Coupons can encourage trial and repeat purchase of a brand. E. All of above statements describe limitations associated with using coupons as sales promotional tools.
16-18
Chapter 16 - Sales Promotion
69. (p. 525) Which of the following is NOT an advantage inherent in the use of coupons as a sales promotion tool? A. Coupons offer price reductions to consumers who are price sensitive. B. Coupons are an effective way of generating trial of a new product. C. Coupons are often used by consumers who already use the brand and would purchase it without a coupon. D. Coupons can encourage repeat purchase of a brand. E. Coupons can encourage non-users to try a brand.
70. (p. 525) When calculating the costs of a couponing program, marketers should consider: A. production costs B. redemption costs C. handling costs D. distribution costs E. all of the above See Figure 16-2.
71. (p. 526) The most popular method for distributing coupons is: A. newspaper freestanding inserts (FSIs) B. direct mail C. in/on packs D. magazines E. newspaper supplements
72. (p. 526) What advantage does distribution of coupons through direct mail have over other forms of coupon delivery? A. more precise reach B. lower cost C. lower redemption rate D. lack of geographic and demographic specialization E. all of the above
16-19
Chapter 16 - Sales Promotion
73. (p. 527) Valpak uses advertising to: A. measure redemption rates B. avoid having to hand deliver coupons for competitive brands at retail checkout C. develop and operate in-store sampling booths D. promote the value of the coupons inside E. deal with coupon misredemption problems Exhibit 16-13.
74. (p. 528) An in/on package coupon that is redeemable for a future purchase of the same brand is known as a(n) _____ coupon. A. cross-ruff B. bounce-back C. instant D. cross sell E. same purchase
75. (p. 528) On the inside of the Tortino's brand pizza box was a $1-off coupon for the purchase of the next Tortino's pizza. Tortino's used a(n) _____ coupon. A. cross-ruff B. bounce-back C. instant D. cross sell E. same purchase
76. (p. 528) A package of Gillette Sensor razor blades contains a 75-cent-off coupon for Gillette Foamy shaving cream. This is an example of a(n) _____ coupon. A. cross-ruff B. bounce back C. same purchase coupon D. instant coupon E. rebate coupon
16-20
Chapter 16 - Sales Promotion
77. (p. 528) Kellogg's places a 50-cent-off coupon for Rice Krispies brand cereal on the outside of a box of its Frosted Mini-Wheats brand of cereal. This is an example of a(n) _____ coupon. A. bounce-back B. cross-ruff C. instant D. premium E. cross-sell
78. (p. 528) Affixed to the front of a bag of Aunt Jemima corn meal was a(n) _____ coupon that could be torn off (without damaging the bag) and redeemed at the time of the purchase. A. bounce-back B. cross-ruff C. instant D. premium E. cross-sell
79. (p. 529) _____ couponing is a method for distributing coupons by identifying a customer's purchases through bar codes scanners and then printing the coupon for a competing or complementary product. A. On-package B. In-Store C. Shelf-dispensed D. Cross-ruff E. Instant
80. (p. 529) Gillette's market research shows that most consumers decide upon a brand of deodorant at the point-of-purchase rather than before entering the store. Based on these findings, what form of promotion should be most effective for Gillette's Right Guard brand? A. direct mail coupons B. event marketing C. coupons distributed through freestanding inserts in newspapers D. in-store coupons E. spiffs
16-21
Chapter 16 - Sales Promotion
81. (p. 529) Which of the following couponing methods allows companies to reach users of competitive brands rather than consumers who already use their brand? A. on-package coupons B. freestanding inserts C. instant coupon machines at point-of-purchase D. checkout coupons E. all of the above
82. (p. 529) Electronically dispensed checkout coupons: A. reach consumers when they are ready to make a purchase B. increase brand awareness on the shelf C. provide category exclusivity D. generate impulse buying and product trial E. are accurately described by all of the above
83. (p. 529) Electronically dispensed checkout coupons: A. are paid for by the retailers where such coupons are handed out B. have no redemption deadline C. are available at Web sites and must be printed off to be used D. generate impulse buying and product trial E. are accurately described by all of the above
84. (p. 529) Companies in the ____ industry have begun replacing brand-specific coupons with universal coupons that can be redeemed for any of their brands. A. disposable diapers B. beer C. cereal D. shampoo E. coffee
16-22
Chapter 16 - Sales Promotion
85. (p. 530) A(n) _____ is an offer of an item of merchandise or service either free or at a reduced price that is used to provide an extra incentive to purchase. A. coupon B. sample C. premium D. rebate E. off-price deal
86. (p. 530) Serta, the manufacturer of mattresses, gave away a Serta Sheep Plushie toy to any customer who purchased a mattress from a Serta dealer. The toy was only available for a limited time. The stuffed toy is an example of a(n): A. coupon B. sample C. free premium D. rebate E. self-liquidating premium
87. (p. 530) Quaker Oats cereal included tubes of Colgate Junior toothpaste inside each box of Life brand cereal. This is an example of a: A. free premium B. self-liquidating premium C. rebate D. bonus pack E. non-subsidized premium
88. (p. 531) Consumers must pay the manufacturers' out-of-pocket costs for a _____ premium. A. cost-covered B. self-liquidating C. subsidized D. cost-plus E. base-cost
16-23
Chapter 16 - Sales Promotion
89. (p. 531) Kellogg's promoted a Bart Simpson watch to consumers who mailed in $2.95 and 3 UPCs from boxes of Kellogg's cereal. This is an example of a _____ premium. A. cost-covered B. self-liquidating C. subsidized D. cost-plus E. base-cost
90. (p. 531) Which of the following statements about the use of premiums as a sales promotion tool is true? A. The use of premiums is very popular among fast food restaurants as a way of attracting children. B. Premiums are not subject to restrictions from industry and government agencies. C. Redemption rates for mail-in premium offers are very high. D. Consumers are always required to pay at least some of the costs of a premium offer. E. Mail-in premiums offer immediate reinforcement to the purchaser.
91. (p. 531) Which of the following statements about the use of premium offers by fast-food chains such as McDonald's and Burger King is true? A. Many of the premiums used by these companies have cross-promotional tie-ins with popular movies. B. Most of the premiums used by these companies are self-liquidating. C. Many of the premium offers used by these companies are targeted at adults. D. Most of the premium offers used by these restaurants are not effective at generating incremental sales. E. Free premiums always produce positive public relations for the company providing them.
92. (p. 531) Kellogg's promoted a Bart Simpson watch to consumers who mailed in $2.95 and 3 UPCs from boxes of Kellogg's cereal. The appearance of Bart Simpson on the watch and not the Kellogg's logo would: A. detract from the consumer franchise building value of the promotion B. create problems in supply and demand C. make inventory forecasting easier D. fully support Kellogg's in its consumer franchise building promotion E. make it unnecessary for Kellogg's to run a nonfranchise building promotion
16-24
Chapter 16 - Sales Promotion
93. (p. 531) An effective premium is one that: A. distracts consumers from the firm's main reason for existing B. ties into the overall positioning and communications campaign of the brand C. induces one-time trial purchase of a brand for which there is low awareness D. encourages repeat purchase of some brand other than that for which the premium is delivered E. has no impact on an organization's pioneering advertising
94. (p. 531) Which of the following would be the best example of a premium offer that contributes to consumer-franchise building efforts for a brand? A. a free tube of Colgate toothpaste in a box of Life cereal B. a pack of baseball cards in a box of Cheerios cereal C. a free sport bottle with the purchase of a four-pack of Gatorade D. a dish towel in a box of Tide laundry detergent E. a pack of golf tees inside a box of golf balls
95. (p. 532) With a _____ consumers compete for prizes and/or money on the basis of skills or ability, while with a _____ winners are determined purely by chance. A. sweepstakes; contest B. contest; sweepstakes C. contest; event sponsorship D. sweepstakes; event sponsorship E. contest; rebate
96. (p. 532) Because they are easier to enter, _____ attract more entries than _____ and have become a more widely used sales promotion technique. A. contests; sweepstakes B. sweepstakes; contests C. sweepstakes; premiums D. contests; premiums E. contests; rebates
16-25
Chapter 16 - Sales Promotion
97. (p. 532) Which of the following sales promotion techniques would be most effective for generating excitement or interest in a brand? A. coupons B. price-off deals C. bonus packs D. contests/sweepstakes E. samples
98. (p. 532) Arm & Hammer maker of Crystal Blend scoopable cat litter, Super Scoop, the baking soda clumping litter, Super Clay, the premium lightweight clay litter, and Cat Litter Deodorizer ran a contest to find the "Coolest Cat Trick." First prize was $10,000 first prize, and several smaller prizes were awarded to other participants. The most likely reason why Arm & Hammer used this contest was to: A. move consumers to the conviction stage of the hierarchy of effects model B. reposition the brand name C. create an easily measured ad recency effect D. generate excitement and interest about the Arm & Hammer brand cat litters E. get users of other brands to try Arm & Hammer brand
99. (p. 532) Sweepstakes and contests: A. are primarily used to move consumers into 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 accurately described by all of the above
100. (p. 533) Which of the following is NOT a problem associated with the use of contests and sweepstakes? A. The contest or sweepstakes offer may overshadow the brand. B. There are numerous legal problems and considerations included in designing and administering these promotions. C. Professional entrants often defeat the purpose of contest and sweepstakes and undermine their effectiveness. D. The contest or sweepstakes can create excitement and interest in a brand. E. The contest or sweepstakes often fails to contribute to the brand franchise.
16-26
Chapter 16 - Sales Promotion
101. (p. 533) 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. sampling B. premiums C. contests and sweepstakes D. event sponsorships E. bonus packs
102. (p. 534) Inefficiently run sales promotions can result in: A. increased self-regulation of sales promotional activities B. poor relationships with mass-media C. violation of the Robinson-Patman Act D. a cease-and-desist order from the Federal Trade Commission E. negative publicity See IMC Perspective 16-4.
103. (p. 534) The Kraft clause is: A. a disclaimer used with contests and sweepstakes to protect the sponsoring company B. a law used to protect companies against fraudulent coupon redemption C. a law that frees a sponsoring company from liability during event sponsorship D. in the small print that comes with every rebate and refund offer and states the purchaser can only redeem one time E. none of the above See IMC Perspective 16-4.
104. (p. 533) Which of the following statements about rebates is true? A. Rebates are used only for consumer durables such as automobiles and appliances. B. Most retailers want to be involved with rebate programs. C. Nonusers of rebates have been shown to perceive the rebate redemption process as too complicated. D. Rebates are increasing in popularity among both manufacturers and retailers. E. All of the following statements about rebates are true.
16-27
Chapter 16 - Sales Promotion
105. (p. 533) The redemption rate for refunds is lower than that for coupons because: A. the payoff is smaller B. the reinforcement is immediate C. more effort is required D. the payoff is larger E. the offers tend to expire very quickly
106. (p. 533) As a sales promotion, _____ has the advantage of offering a price incentive to the consumer, which may or may not be utilized, depending upon how the consumer acts after the purchase. A. a sweepstakes or contest B. a premium C. diverting D. a rebate E. forward buying
107. (p. 534) Acushnet ran a promotion offering a box of fifteen Pinnacle golf balls for the same regular price as twelve balls. This is an example of a: A. price-off deal B. premium C. bonus pack D. rebate E. trade allowance
108. (p. 534) Bonus packs: A. offer consumers an extra amount of a product or service but a higher than normal price B. provide marketers with a way to provide extra value to consumers without having them do anything other 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. are accurately described by all of the above
16-28
Chapter 16 - Sales Promotion
109. (p. 534) When reductions from the regular price of a product are offered at the point-ofpurchase through specially marked packages, a marketer is using a: A. bonus pack B. rebate C. refund offer D. bounce back coupon E. price-off deal
110. (p. 536) The use of rebates by marketers has increased dramatically partly because: A. bonus packs are no longer effective in creating customer loyalty B. situational factors are increasing the likelihood of rebate redemption C. price-off deals are correlated with rebate redemption D. consumers prefer rebates over lower prices E. they know 40 percent of rebates never get redeemed Ethical Perspective 16.1
111. (p. 537) Which of the following statements describe an advantage associated with price-off deals? A. Price-off deals ensure the price discount reaches the consumer. B. The value of price-off deals offer is usually very apparent to the shopper. C. Price-off deals can encourage consumers to buy larger quantities. D. Price-off deals can provide a strong point-of-purchase influence. E. All of the above are advantages associated with price-off deals.
112. (p. 537) Super-Sav supermarket gives customers VIC (very important customer) cards, which allows customers to take advantage of additional discounts on certain products and notification of special, customer-only sales. In addition, customers can accrue points each time they present their cards. These points can be used to purchase cookware, dishes, and other similar hard goods. Super-Sav is using a: A. bonus program B. frequency program C. customer rewards contest D. self-liquidating promotion E. subsidized program
16-29
Chapter 16 - Sales Promotion
113. (p. 537) Every time Beth buys a book at Waldenbooks, she presents her Waldenbooks 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. bonus program B. frequency program C. customer rewards contest D. self-liquidating promotion E. subsidized program
114. (p. 537) Frequency programs: A. are also called continuity programs B. have become popular with supermarkets C. are also called loyalty programs D. give marketers the opportunity to develop databases E. are accurately described by all of the above
115. (p. 537) Why have frequency programs become so popular with marketers? A. Frequency programs support the goal of customer retention. B. Frequency programs are especially effective when used for a new product introduction. C. Frequency programs are a type of sweepstakes and generate a great deal of consumer interest. D. Frequency programs allow marketers to set cookies so they can track consumers' activities. E. Frequency programs are a promotional form of brand extension strategies.
116. (p. 538) Coors Light beer's heavy financial involvement with and support of freestyle skiing competitions, beach volleyball tournaments, and other sporting events are examples of: A. premiums B. trade shows C. exhibitions D. event marketing E. contests
16-30
Chapter 16 - Sales Promotion
117. (p. 538) May is National Arthritis Month. To celebrate this month, the manufacturer of Aleve pain reliever sponsored fundraiser walks to raise money to find a cure for arthritis. Aleve's manufacturer engaged in: A. a self-liquidating premium B. a trade show C. an exhibition D. event marketing E. a corporate contest
118. (p. 538) Which of the following statements about event sponsorships 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. Decisions and objectives for event sponsorships are often part of an organization's public relations activities. E. All of the above statements about event sponsorship are true.
119. (p. 540) All of the following are reasonable objectives for trade-oriented sales promotions EXCEPT: A. to obtain distribution and support for new products B. to maintain trade support for established brands C. to encourage the trade to display and support established brands D. to differentiate a brand through image enhancement E. to build retail inventories
120. (p. 540) Which of the following is a viable objective for a trade-oriented sales promotion? A. to obtain distribution and support for new products B. to maintain retailer support for established brands C. to encourage retailers to display and promote established brands D. to build retail inventories E. to do all of the above
16-31
Chapter 16 - Sales Promotion
121. (p. 540) Arm & Hammer baking soda distributes freestanding inserts (FSIs) in the paper on the last Sunday of October that encourage consumers to change the box of baking soda in their refrigerator when they turn their clocks back to standard time. This is an example of how sales promotion can be used to: A. encourage trial of a new brand being introduced B. increase consumption of an established brand by identifying a specific use C. defend current customers D. enhance advertising efforts E. encourage repurchase after initial trial
122. (p. 542) Programs involving cash payments directly to the sales force to reward them for selling the manufacturer's products involve the use of: A. slotting fees B. pull money C. push money D. pricing promotions E. promotional allowances
123. (p. 542) Which of the following promotions is targeted toward the trade rather than consumers? A. spiffs B. coupons C. premiums and sweepstakes D. bonus packs E. all of the above
124. (p. 542) An appliance manufacturer offers a $50 payment to salespeople who work at Rutgers Appliance if they sell one of the company's new refrigerators. This payment is known as: A. a slotting fee B. coop money C. a spiff D. pull money E. a trade allowance
16-32
Chapter 16 - Sales Promotion
125. (p. 542) Another term used for push money that is given to retailers' or wholesalers' sales staff to encourage them to promote and sell a company's product is: A. pull money B. a rebate C. a spiff D. an off-invoice allowance E. a slotting fee
126. (p. 542) A discount or deal offered to a retailer or wholesaler to encourage them to stock, promote or display a manufacturer's product is known as: A. cooperative advertising B. merchandising support C. a trade allowance D. a spiff E. push money
127. (p. 543) Ocean Spray offers its retail accounts a $3.00 per case discount for all of the cranberry juice they purchase during the month of May. This discount will be deducted straight from the bill. This is an example of: A. push money B. a slotting allowance C. an off-invoice allowance D. a display allowance E. a coop allowance
128. (p. 543) Payments offered by manufacturers to resellers for merchandising products or running special in-store programs are called: A. cooperative advertising B. push monies C. advertising subsidies D. promotional allowances E. slotting allowances
16-33
Chapter 16 - Sales Promotion
129. (p. 544) Money that must be paid to a retailer so it will take on a company's new product is known as: A. slotting allowances B. failure fees C. spiffs D. new product fees E. trade discounts
130. (p. 544) Which of the following statements about slotting allowances is true? A. Retailers argue they are justified because there are costs associated with taking on a new product. B. Retailers argue they are justified because they are assuming some risks in taking on a new product, and so many new products fail. C. Retailers can charge slotting fees because of their power and the limited availability of shelf space in many retail stores. D. Large manufacturers with popular brands and large promotional budgets do not always have to pay slotting fees. E. All of the above statements about slotting fees or allowances are true.
131. (p. 544) Which of the following statements about the slotting allowances charged by many retailers is true? 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.
16-34
Chapter 16 - Sales Promotion
132. (p. 544) Some retailers have demanded payment for new products that do not reach a minimum sales target. These payments are called: A. failure fees B. slotting allowances C. push monies D. slotting fees E. street monies
133. (p. 544) Which of the following statements describes a major concern marketers have with trade allowances? A. Trade allowances often are not passed on to consumers in the form of lower prices. B. Trade allowances detract from the image of the retailers who carry their brands. C. Consumers pocket most of the savings from trade promotion discounts. D. Trade allowances encourage retailers to stock and promote the marketers' products on a regular basis. E. All of the above statements describe a major concern marketers have with trade allowances.
134. (p. 545) Tropicana suspended shipments of its products to a retail store that was taking advantage of promotional deals and then selling the product to other stores in another part of the country. The retailer was engaged in: A. forward buying B. diverting C. slotting D. EDLP E. transference charging
135. (p. 545) _____ is a practice used by retailers whereby they stock-up on a product at a low deal or off-invoice price and resell it to consumers at higher prices when a promotional period has ended. A. Forward buying B. Diverting C. Everyday low pricing D. Discount trading E. Promotional discounting
16-35
Chapter 16 - Sales Promotion
136. (p. 545) _____ is a practice used by some retailers and wholesalers whereby they take advantage of a promotional deal and then sell some of the product purchased at the low price to another store outside of the reseller's trade area or to a middleman who will then resell the products. A. Forward buying B. Diverting C. Everyday low pricing D. Discount trading E. Promotional discounting
137. (p. 545) This program was developed by _____ whereby it has lowered the wholesale list price of many of its products while cutting promotional allowances to the trade and is known as _____. A. Procter & Gamble; forward buying B. General Foods; diverting C. Procter & Gamble; everyday low pricing D. PepsiCo; slotting E. Tropicana; one price dealing
138. (p. 545) Companies such as Procter & Gamble use _____ to reduce fluctuations in the retail prices of their brands. A. high/low pricing strategies B. trade allowances C. everyday low pricing (EDLP) D. cooperative advertising E. slotting allowances
139. (p. 545) Many retailers are opposed to everyday low pricing (EDLP) because: A. EDLP takes away a lot of their trade promotion dollars B. retailers prefer to use frequent price specials to attract store traffic C. EDLP puts them at a disadvantage against the warehouse stores and mass merchandisers who already use everyday low pricing D. EDLP is not an effective method for a retailer that is trying to build market share E. of all of the above reasons
16-36
Chapter 16 - Sales Promotion
140. (p. 545) Which of the following statements explains why retailers such as grocery stores are critical of everyday low pricing? A. They prefer to operate on a high/low strategy of frequent price specials that can be used to attract shoppers. B. They argue that everyday low pricing puts them at a disadvantage against warehouse stores and mass merchandiser. C. They argue that some products are purchased on impulse and do not lend themselves to everyday low pricing. D. They rely on promotions such as end-aisle displays and price discounts to generate excitement and generate profits from many product categories, and everyday low pricing makes it difficult to do this. E. All of the above following statements explain why retailers are critical of everyday low pricing.
141. (p. 546) A _____ is a configuration of products that occupy a shelf section in a store offered to resellers by manufacturers. A. slotting plan B. planogram C. promotional layout D. retail format E. store layout
142. (p. 546) Nordica provides sales personnel in ski shops with training classes, detailed manuals, and other tools to help them better understand how to sell the company's ski boots. This is an example of: A. cooperative advertising B. a planogram C. sales training programs D. event marketing E. spiffs
16-37
Chapter 16 - Sales Promotion
143. (p. 546) _____ is an exhibition or forum where manufacturers can display their products to current and perspective buyers. A. A planogram B. A trade layout C. Cooperative advertising D. A trade show E. Event marketing
144. (p. 546) Which of the following marketing and promotional functions can be performed at trade shows? A. product demonstration B. prospect identification C. entertaining and building relationships with customers D. new product introduction E. all of the above
145. (p. 546) Which of the following marketing and promotional functions can be performed at trade shows? A. planogram development B. prospect identification C. self-liquidating contests to improve trade relationships D. transformational marketing E. all of the above
146. (p. 547) _____ is advertising sponsored in common by a group of retailers or other organizations offering a product or service to the market. A. Horizontal cooperative advertising B. Vertical cooperative advertising C. Indirect advertising D. Ingredient-sponsored cooperative advertising E. Dyadic communication
16-38
Chapter 16 - Sales Promotion
147. (p. 547) When New Balance sponsors a campaign advertising the availability of its running shoes at FootLocker stores, this is an example of _____ advertising. A. horizontal cooperative B. vertical cooperative C. dyadic D. ingredient-producer cooperative E. aggregated
148. (p. 547) _____ is advertising supported by raw materials or component part manufacturers to help establish end products making use of their materials. A. Vertical cooperative advertising B. Ingredient-sponsored cooperative advertising C. Horizontal cooperative advertising D. Support advertising E. Integrated dyadic communications
149. (p. 547) The "Visa on the Label" program under which Visa provides uniform and linen manufacturers with advertising monies based on the number of yards of Visa fabric they buy from the company is an example of: A. vertical cooperative advertising B. ingredient-sponsored cooperative advertising C. horizontal cooperative advertising D. a rebate cooperative advertising E. a sales training program
150. (p. 548) Advertising implemented by retailers and paid for (at least in part) by a manufacturer is called: A. joint sales promotions B. horizontal cooperative advertising C. vertical cooperative advertising D. joint trade promotions E. reseller advertising
16-39
Chapter 16 - Sales Promotion
151. (p. 548) The five resorts in the Bahamas that combined their promotional budgets to sponsor an "It's better in the Bahamas'" ad campaign, is an example of: A. horizontal cooperative advertising B. vertical cooperative advertising C. integrated dyadic communications D. ingredient-producer co-op advertising E. a joint trade promotion
152. (p. 548) Intel and several different manufacturers of personal computers have joined to create and sponsor ads that promote both the computer and the microprocessor. Intel and the PC manufacturers are using: A. cooperative advertising B. forward promotion C. dyadic communications D. comparative advertising E. diverting
153. (p. 549) When advertising and sales promotion efforts work well together and create sales results greater than those achievable from either element being used alone, they are producing a _____ effect. A. stimulus-response B. symbiotic C. hierarchical D. synergistic E. dyadic
16-40
Chapter 16 - Sales Promotion
154. (p. 549) Which of the following statements about the coordination of advertising and sales promotion efforts is true? A. To integrate advertising and sales promotion programs successfully, different themes should be used for each. B. Consumers are less likely to redeem a coupon or respond to a price-off deal for a brand they are familiar with than one they know nothing about. C. Product trial created through sales promotion techniques such as sampling or couponing is more likely to result in long-term use of the brand when accompanied by advertising. D. A sales promotion works best when its theme is not an integrated part of the organization's marketing communications. E. All of the above statements about the coordination of advertising and sales promotion efforts are true.
155. (p. 551) Which of the following statements about the changing role of sales promotion agencies is true? A. Sales promotion agencies are becoming more involved in the advertising and promotional planning process. B. Sales promotion agencies often work on an equal basis with advertising agencies in the planning of promotional programs. C. Sales promotion agencies are being used to develop long and short-term promotional strategies as well as for tactical implementation. D. Sales promotion agencies are being selected and evaluated on the basis of formal reviews. E. All of the above statements about the changing role of sales promotion agencies are true. See Figure 16-6.
156. (p. 551) In their traditional role, sales promotion agencies: A. were very much accountable for all of the sales promotion activities B. worked on an equal basis with the organization's ad agency C. were contracted on an annual retainer D. were used to develop long-term strategies E. were accurately described by none of the above See Figure 16-6.
16-41
Chapter 16 - Sales Promotion
157. (p. 551) According to attribution theory, a consumer who purchases a product on promotion may not repurchase because the: A. purchase behavior is attributed to an external incentive B. relationships between promotions and attitudes are weak C. primary reinforcement is the brand, and not the promotional incentive D. consumer really does not care about which brand is purchased E. purchase is internally motivated and unaffected by an external incentive
158. (p. 551) Delta Airlines began offering triple miles to members of its frequent flyer program when they took any Delta flight from New York to Miami. Then United and other airlines immediately matched the offer, and it was believed for a long time that they all must continue the program or lose their competitive position. This situation is an example of: A. a synergistic effect B. a sales promotional trap or spiral C. a multilevel sales promotion D. a trade-off allowance E. the attribution theory in operation
159. (p. 551) Which of the following actions has the potential to create a sales promotion trap or spiral in the fast-food industry? A. the use of celebrity spokespersons such as Shaquille O'Neill B. the addition of new items to the menus of fast food chains C. the use of 99-cent specials to promote popular items such as Burger King's Whopper and McDonald's Big Mac D. the location of fast food restaurants in airports and on college campuses E. the promotional tying of fast food with movies
160. (p. 552) Periodically cosmetics manufacturers offer consumers the opportunity to buy a several different cosmetics for one low price usually in some tote bag or plastic case created for the promotion. Since several cosmetics manufacturers use this incentive method, it is likely to: A. create a synergistic effect B. create a sales promotional trap or spiral C. require a multilevel sales promotion D. require a trade-off allowance E. exemplify the attribution theory in operation
16-42
Chapter 16 - Sales Promotion
161. (p. 552) In many areas of the country, supermarkets have gotten in the trap of doubling or even tripling manufacturers' coupons resulting in: A. a synergistic effect allowing for diversification and a push toward energy independence B. devaluing what consumers think the manufacturers' products are worth C. decreased brand equity D. reduced profit margins E. the creative destruction theory in operation
16-43
Chapter 17 - Public Relations, Publicity, and Corporate Advertising
Chapter 17 Public Relations, Publicity, and Corporate Advertising
Multiple Choice Questions 1. (p. 557) From a marketer's perspective, the unfortunate part of negative publicity is it can occur as a result of factors beyond the control of the company and: A. for reasons the company might never anticipate B. as result in increased advertising effectiveness C. result in reduced censorship guidelines D. cause an increase in online advertising E. create increased exit audits See opening vignette.
2. (p. 558-558) The examples of negative publicity in the opening vignette suggest: A. top management needs to look for more creative ways to communicate with the target market(s) B. companies should never cut their public relations budget C. negative publicity can come from a variety of sources D. good things happen to good people E. none of the above See opening vignette.
3. (p. 559) An advertiser who is "managing the buzz" is dealing with something that is a topic of conversation for lots of consumers—it is what is hot in society. In terms of the promotional mix, "managing the buzz" would be most closely associated with: A. corporate advertising B. sales promotions C. personal selling D. publicity and public relations E. direct-response advertising
17-1
Chapter 17 - Public Relations, Publicity, and Corporate Advertising
4. (p. 559) _____ is the management function that evaluates public attitudes, identifies the policies and procedures of an organization with the public interest, and executes a program of action to earn public understanding and acceptance. A. Public relations B. Image advertising C. Corporate advertising D. Dyadic communications E. Integrated marketing communications
5. (p. 559) Which of the following is a required stage in the public relations process? A. the integration of sales promotion and personal selling with the public relations process B. the identification of what portion of the budget is specifically designated to public relations C. the hiring of a specialized firm that understands the public relations process D. the determination and evaluation of public attitudes E. all of the above
6. (p. 559) Which of the following would most reflect the traditional role of public relations? A. a company's sponsorship of a Little League team B. a company's donations to a local charity C. sponsorship within an organization of a blood drive D. the mailing of a press release announcing a new product E. all of the above
7. (p. 560) Which of the following best reflects the new role of public relations in an integrated marketing communication program? A. sponsoring the local Little League team B. supporting local charities C. sponsoring Olympic events to gain brand name association. D. issuing a press release announcing a new CEO E. advertising to announce an organization's support of a school bond referendum
17-2
Chapter 17 - Public Relations, Publicity, and Corporate Advertising
8. (p. 560) According to the new definition of public relations, the function of public relations personnel is to: A. assess public attitudes B. promote products or services directly C. create a favorable corporate image D. develop and execute communications programs designed to bring about public understanding and acceptance E. do all of the above
9. (p. 560) The new role of public relations is one characterized by: A. less of a communication role B. less of a marketing orientation C. a tighter, more tightly defined role D. a broader, less marketing-oriented role E. a broader, more marketing-oriented role
10. (p. 560) Which of the following promotional activities would best exemplify the new role of public relations? A. use of Brittany Spears as a spokesperson for Pepsi B. initiation of a contest to find a new spokesperson for a brand C. donation of money to the favorite charity of a firm's CEO D. sponsorship of a marathon E. donation of money to support a local children's soccer team
11. (p. 561) Marketing public relations (MPR) activities designed to support marketing objectives add value to the integrated marketing program by: A. building marketplace excitement B. creating advertising news where there is none C. providing a value-added customer service D. defending products at risk and giving consumers a reason to buy E. doing all of the above
17-3
Chapter 17 - Public Relations, Publicity, and Corporate Advertising
12. (p. 561) MPR activities are used by public relations agencies to: A. receive discounts in various media B. place new releases in mass media simultaneously C. "microsegment" the market D. achieve feedback from public relations activities E. do none of the above
13. (p. 561) Which of the following statements describes an advantage derived from the use of marketing public relations (MPR)? A. The effectiveness of MPR can be easily measured. B. It is easy to tie slogans in with MPR activities. C. MPR breaks through the clutter. D. The use of MPR guarantees a specific media time and place. E. All of the above statements describe advantages derived from the use of MPR.
14. (p. 561) Which of the following statements describes an advantage derived from the use of marketing public relations (MPR)? A. MPR benefits from the endorsement of independent and objective third parties who have association with the product. B. MPR supports advertising programs by making messages more credible. C. MPR can circumvent consumer resistance to sales effort. D. MPR is a highly targeted way to conduct public relations. E. All of the above statements describe advantages derived from the use of MPR.
15. (p. 562) Which of the following statements describes a disadvantage inherent in the use of marketing public relations (MPR)? A. MPR lacks credibility. B. MPR has no effect on consumers that have been found to be resistance to sales messages. C. Clutter affects MPR more negatively than other promotional tools. D. There are no standard effectiveness measures for MPR. E. MPR weakens the ability of advertising programs by making them appear less credible.
17-4
Chapter 17 - Public Relations, Publicity, and Corporate Advertising
16. (p. 565) Which of the following is NOT a reason for conducting research to determine public attitudes? A. It provides input into the planning process. B. It leads directly to more product sales. C. It serves as an "early warning system" to detect problems. D. It results in more internal support. E. It increases the effectiveness of communications.
17. (p. 565) A good reason for conducting research to determine public attitudes is because: A. it is a way to determine whether to use status quo pricing B. it allows the company to appear to care about its publics C. it is similar to and more effective than a SWOT analysis D. it serves as an early warning system for identifying potential problems E. it can reveal any untapped target markets through demographic evaluations
18. (p. 565) Miller & Sons Inc. has revived the dying art of stone masonry. Roy Miller and his two sons are all European trained artisans who would like to work on repairing of old stonework on churches and buildings constructed before 1940. The business is not thriving even though the company has been featured in news articles in several regional magazines and newspapers for its help in restoring old cemeteries and as a potentially important new business. What should the company do? A. use the objective-task method for setting its budget B. change its name C. conduct research to determine the public attitude toward the company D. lower its prices E. add product line extensions
19. (p. 566) In public relations, internal audiences include all of the following EXCEPT: A. the public at large B. suppliers C. customers D. stockholders E. investors
17-5
Chapter 17 - Public Relations, Publicity, and Corporate Advertising
20. (p. 566) When determining relevant target audiences for public relations efforts, all of the following groups are considered internal audiences EXCEPT: A. employees of the firm B. the media C. current customers D. investors E. suppliers
21. (p. 566) In public relations targeting, external audiences include: A. customers B. the public at large C. suppliers D. stockholders E. all of the above
22. (p. 566) Which of the following is NOT one of the ten questions suggested for use in evaluating public relations plans? A. Does the plan include analysis of recent editorial coverage? B. Do the PR people understand the product's strengths and weaknesses? C. Is the plan acceptable to marketing? D. Are the objectives specific and measurable? E. Does the program clearly describe what the PR activity will be and how it will benefit the company? See Figure 17-2.
23. (p. 567) Which of the following groups would most likely be the target of public relations efforts designed to increase communications with external audiences? A. potential investors and the media B. current customers and employees of the firm C. the media and current customers D. suppliers and employees of the firm E. the public at large and stockholders
17-6
Chapter 17 - Public Relations, Publicity, and Corporate Advertising
24. (p. 568) Companies that support lobbying efforts: A. are trying to reach internal audiences B. are engaged in flighting C. have targeted government bodies D. have determined the importance of homogeneity E. are targeting educators
25. (p. 569-570) Which of the following is a recommended tool for improving the likelihood that the public relations story will be told? A. press conferences B. interviews C. the Internet D. exclusives E. all of the above
26. (p. 569) When the Financial Times published an article about The Mills Corporation building a multi-leisure complex in Madrid, Spain, the company supplied the written information the author of the articles needed to write knowledgeably about a complex that will offer a blend of entertainment, retailing, lodging and offices. In fact, this information was made available to several different European and U.S. newspapers. Which public relations tool was employed? A. community involvement B. integrated public relations activities (IPRA) C. exclusives D. MPR E. press release
17-7
Chapter 17 - Public Relations, Publicity, and Corporate Advertising
27. (p. 569) Which of the following communications with external audiences could be effectively done through a press conference? A. an announcement by Ryanair, the Irish low cost airlines, that it was reducing its fares by 5 percent and introducing seven new routes B. an announcement by Exxon, that it earned more than $100 billion in 2007, the biggest profit in American corporate history C. an announcement by the state of Georgia to end to its "green space" program in which it had required developers to preserve a certain percentage of each development in its natural form D. Coca-Cola's announcement that it is was going to run an IMC program with Turner Broadcasting to promote Diet Coke E. All of the above demonstrate an effective use of a press conference.
28. (p. 569) Unilever is the world's largest manufacturer of ice cream. When the Anglo-Dutch company decided to invest in retailing ice cream, it gathered news representatives from the major newspapers to a meeting in which the company unveiled its prototype ice-cream van and showed pictures of ice-cream kiosks that it was setting up on the world's beaches. Which public relations tool was employed? A. community involvement B. integrated public relations activities (IPRA) C. exclusives D. press conference E. press release
29. (p. 570) Offering a press release to only one particular medium may be termed: A. an exclusive B. an advertorial C. advocacy advertising D. lobbying E. image advertising
17-8
Chapter 17 - Public Relations, Publicity, and Corporate Advertising
30. (p. 570) A large insurance company would have engaged in a marketing public relations activity when: A. its CEO appeared in an interview on ABC's Nightline B. it donated $50,000 to Kansas counties ravaged by tornadoes C. it created a Web site to deal with concerns about rate hikes D. it conducted a press conference announcing plans to move the company's home office E. it did any of the above
31. (p. 570) For areas of the United States that have experienced lengthy periods of time without utilities due to some act of nature, Budweiser packages water in black and white cans and gives it to people who are without water. Which public relations tool was employed? A. community involvement B. integrated public relations activities (IPRA) C. exclusives D. press conference E. press release
32. (p. 570) Organizations can use the Internet as a means of disseminating their public relations information. How does the way the Internet is used differ from how other traditional media is used? A. The Internet offers longer exposure times than other media. B. The Internet is confined by time and space limitations that do not inhibit other media. C. The Internet offers the ability to build internal links to provide instant access to as much information as needed. D. The Internet cannot be used by organizations to defend themselves against negative publicity. E. The Internet is not used as a public relations source.
33. (p. 571) Which of the following communications is most likely to have more credibility among its receivers? A. Vogue's magazine layout introducing its latest models B. Volvo's television ad promoting new standard safety features C. Motor Trend's announcement of the "Car of the Year" D. the appearance of the CEO of Ford Motor Company in its ads E. the appearance of some of the participants in American Idol in Old Navy ads
17-9
Chapter 17 - Public Relations, Publicity, and Corporate Advertising
34. (p. 571-572) Which of the following is an advantage associated with public relations? A. greater credibility B. ability to build positive image C. avoidance of clutter D. low absolute and relative cost E. all of the above
35. (p. 571-572) Which of the following is an advantage associated with public relations? A. effectiveness at completing the communications product B. high absolute cost but low relative cost C. ease with which PR activities are coordinated with other promotional activities even when the activities are performed in different departments D. use as an effective lead generator E. all of the above
36. (p. 572) Automobile manufacturers Audi, Isuzu, and Suzuki have all experienced serious sales declines as a result of negative publicity. Publicity has such a powerful communications effect due to: A. its perceived credibility B. its lack of clutter C. its "news worthiness" D. its ability to create an image E. all of the above
37. (p. 572) Because public relations communications are typically perceived as _____, they are not subject to the problems with clutter that are common to other forms of promotional communication. A. corporate-sponsored advertisements B. altruistic C. image builders D. news items E. exclusives
17-10
Chapter 17 - Public Relations, Publicity, and Corporate Advertising
38. (p. 573) Public relations campaigns must be evaluated in order to: A. determine their contribution toward achieving communications objectives B. tell management what has been achieved through PR activities C. provide management quantitative ways to judge PR activities D. provide management ways to judge the quality of PR activities E. do all of the above
39. (p. 574) Criteria for measuring the effectiveness of public relations activities include: A. number of press releases developed B. number of personal interviews given by company representatives C. dollar value of community involvement D. percentage of positive and negative articles over time E. all of the above See Figure 17-3.
40. (p. 574) A system developed by Lotus HAL for measuring a public relations program's effectiveness uses all of the following criterion EXCEPT: A. percentage of negative articles over time B. ratio of marketing to public relations activities C. percentage of positive articles over time D. total number of impressions over time E. ratio of positives to negatives See Figure 17-3.
41. (p. 574) Which of the following would NOT be a criterion used to measure the effectiveness of a public relations campaign? A. a comparison of the number of positive and negative articles appearing on the subject B. a counting of the number of positive articles appearing in a medium C. a counting of the number of negative articles appearing in a medium D. a counting of the number of persons in the target audience for the messages E. a determination of the total number of impressions the campaign created See Figure 17-3.
17-11
Chapter 17 - Public Relations, Publicity, and Corporate Advertising
42. (p. 555-556) All of the following are suggested as means for effective analysis of public relations programs EXCEPT: A. internal audits B. the team approach C. the test market theorem D. external audits E. MBO (management by objectives)
43. (p. 573) Which of the following is a method suggested by the text for measuring the effectiveness of public relations activities? A. number of customer complaints B. public opinion and surveys C. sales D. computer simulations E. trend analyses
44. (p. 573) According to the text, Harold Mendelsohn suggests that to achieve attitude modification throughout public relations campaigns, an organization should use: A. the team approach B. the reach/frequency system C. the traditional public relations activities D. a highly credible spokesperson E. publicity only
45. (p. 573-574) Internal audits of a financial investment company would be conducted by: A. the Securities and Exchange Commission B. the Federal Trade Commission C. a public relations specialist commissioned to do the job D. top managers within the marketing department E. community watchdog organizations
17-12
Chapter 17 - Public Relations, Publicity, and Corporate Advertising
46. (p. 574) External audits of a financial investment company would be conducted by: A. its investors B. a public relations specialist hired specifically to conduct the audit C. top managers within the marketing department D. media specialists E. creatives
47. (p. 574) Which of the following statements about publicity and public relations is true? A. Publicity always originates within the firm. B. Public relations is typically a short term strategy. C. Publicity is always positive. D. Publicity is typically a short term strategy. E. None of the above are differences.
48. (p. 574) An article in the Financial Times about Iressa, a new lung cancer drug made by AstraZeneca, said the drug was not the miracle drug it was supposed to be. The article described how the drug had been linked with 174 deaths in eight months and 300 cases of serious side effects. This is an example of: A. an advertorial B. negative publicity C. controlled public relations D. image advertising E. negative lobbying
49. (p. 574) Publicity: A. is typically a long-term strategy B. is designed to provide positive information about the competition C. is news about a person, product, or service that appears in broadcast or print media D. is always under the control of the firm E. may not originate from sources other than the firm
17-13
Chapter 17 - Public Relations, Publicity, and Corporate Advertising
50. (p. 574) Why is publicity considered by many marketers to be the strongest form of marketing communications? A. its effectiveness at completing the communications process B. its ability to make or destroy a brand. C. the fact that consumers perceive the communication as biased D. the ease with which it is coordinated with other communications activities E. the positive image it always attaches to products and organizations
51. (p. 575) Which of the following communications methods is potentially the most powerful? A. sales promotions B. advertorials C. specialty advertising D. publicity E. advocacy advertising
52. (p. 575) Why is publicity viewed as being so much more important than advertising, sales promotion, or other forms of public relations? A. control of the message B. timing of the message C. credibility of the message D. accuracy of the message E. all of the above
53. (p. 576) There are some who believe Beanie Babies, Ninja Turtles, and other high-selling products were the beneficiaries of staged events in which buyers were paid to stand in line in attempts to purchase the products. If this is true, what strategy were these companies employing? A. press conferences B. the management of publicity C. press releases D. video news releases E. sponsorships
17-14
Chapter 17 - Public Relations, Publicity, and Corporate Advertising
54. (p. 576) Marketers use _____ when they want to have as much control as possible over publicity. A. press conferences B. advertorials C. press releases D. video news releases E. sponsorships
55. (p. 577) Advantages inherent in the use of publicity include: A. the perception of being endorsed by the media in which the publicity appears B. significant word-of-mouth communication resulting from the publicity C. high degree of credibility D. strong news value E. all of the above
56. (p. 577) The two major problem areas that most commonly inhibit the effectiveness of publicity are: A. timing and accuracy B. reach and frequency C. media time and space D. encoding and decoding E. measurement and reach
57. (p. 577) Communications activities designed to promote a firm overall, without reference to a specific product, are called: A. corporate advertising B. advocacy advertising C. advertorials D. lobbying E. continuity advertising
17-15
Chapter 17 - Public Relations, Publicity, and Corporate Advertising
58. (p. 577) The illustration in the ad for Accenture showed an elephant walking a narrow log suspended between two cliffs. The headline read, "Who says you can't be big and nimble?" Since the ad made no reference to the specific products offered by Accenture, it is an example of: A. corporate advertising B. advocacy advertising C. advertorials D. lobbying E. continuity advertising
59. (p. 577) ACE Guaranty RE changed its name to Ace Guaranty Corp to better reflect the scope of its products. Headline "Sometimes a name change can make a big difference." The ad showed photographs of stars who had changed their names and made no mention of what services the corporation offers. This ad is an example of: A. corporate advertising B. advocacy advertising C. advertorials D. lobbying E. continuity advertising
60. (p. 577) Which of the following best reflects an example of corporate advertising? A. Revlon's use of the actress that plays Buffy, the vampire slayer, as a spokesperson B. Toyota promoting its concern for the environment C. Titleist golf equipment signing of golfer Tiger Woods as a spokesperson D. M&M conducting a contest to determine the new color for M&M candies E. Haven Funeral Home giving out free calendars to all of its regular customers
61. (p. 577) Corporate advertising, an extension of the public relations function, is considered controversial because: A. consumers are not interested in this form of advertising B. a belief held by consumers and critics that the only reason firms engage in corporate advertising is because they are in trouble C. corporate ads are considered a costly form of self-indulgence on the part of top managers D. corporate ads do not appeal directly to anyone, and the logical conclusion is that they are a waste of money E. of all of the above reasons
17-16
Chapter 17 - Public Relations, Publicity, and Corporate Advertising
62. (p. 578) The Ketchum Effectiveness Yardstick is a: A. strategic approach to the measurement of public relations results B. method of measuring the effectiveness of sales promotion combined with advertising C. method for determining the degree of brand awareness created D. strategic approach to studying the impact of dyadic communications E. method used to determine the optimal level of publicity See Figure 17-4.
63. (p. 579) Which of the following is NOT an example of a corporate advertising objective? A. to help to ease consumer uncertainty for a newly deregulated company B. to reach targeted goals for specific branded products C. to establish identity for a parent firm D. to smooth labor relations E. to boost employee morale
64. (p. 579) Which of the following is NOT an example of image advertising? A. recruitment ads B. sponsorships C. paid political announcements D. general positioning ads E. financial support ads
65. (p. 579) An American Airlines ad shows a golf ball laying at a green. The copy reads, "It's hard to believe that people can be so passionate about an inanimate object that merely flies through the air and lands on the ground. We, however, understand completely." This ad shows American Airlines creating an image of safety for itself. It is an example of which type of image advertising? A. recruitment ads B. sponsorships C. paid positive publicity D. general positioning ads E. financial support ads
17-17
Chapter 17 - Public Relations, Publicity, and Corporate Advertising
66. (p. 579) In an ad, Toyota explained its Global Earth Charter, which has led to the recycling of 376 million pounds of steel annually and an aggressive recycling program keeps 18 million pounds of other scrap metals from landfill. It is an example of which type of image advertising? A. recruitment ads B. sponsorships C. paid positive publicity D. general positioning ads E. financial support ads
67. (p. 579) When Allstate refers to itself as "The good hands people," this is an example of: A. positioning advertising B. recruitment advertising C. advocacy advertising D. public relations E. publicity
68. (p. 580) If you follow college football you may have noticed over the years that bowl games are using large corporation names such as the Nokia Sugar Bowl. What type of advertising is being used when a large corporation like Nokia sponsors a college bowl game? A. advocacy advertising B. image advertising C. issue advertising D. cause-related advertising E. advertorial marketing
69. (p. 580) To be effective image advertising also requires: A. quality products B. sound financial practices C. good corporate citizenship D. innovation E. All of the above
17-18
Chapter 17 - Public Relations, Publicity, and Corporate Advertising
70. (p. 583) Why would World Wrestling Entertainment (WWE) sponsor a car on the NASCAR racing circuit? A. to build equity and gain affinity with its target market B. to show its position on sports marketing C. to create a generic positioning strategy D. to further segment its target market E. to reduce its overall promotional expenses
71. (p. 584) While still seeking the objective of portraying an image for the company or organization, _____ does so indirectly by adopting a position on a particular issue rather than by promoting the organization itself. A. advocacy advertising B. publicity C. a sponsorship D. public relations advertising E. image advertising
72. (p. 567) When Mobil Oil runs an advertisement urging citizens to support and to donate to a law enforcement memorial fund, this is an example of: A. advocacy advertising B. publicity C. specialty advertising D. a paid public relations activity E. event sponsorship
73. (p. 584) Mobil Oil ran an ad in which it addressed the potential problem of global warming. The ad encouraged others to take time to truly understand the problem and to not act hastily. This ad is an example of: A. advocacy advertising B. publicity C. a sponsorship D. public relations advertising E. image advertising
17-19
Chapter 17 - Public Relations, Publicity, and Corporate Advertising
74. (p. 584) Which of the following statements about advocacy advertising is true? A. Only small firms employ this form of advertising. B. Companies such as AT&T and Mobil commonly employ advocacy ads. C. Advocacy ads are always used in conjunction with cause-related marketing. D. Advocacy ads reflect a company's position on some upcoming legislative or judicial ruling. E. Advocacy ads are not a controversial form of advertising.
75. (p. 584) Cause-related marketing refers to: A. all advertising designed to cause sales B. all advertising designed to cause attitude change C. the linking of companies with charities with the former being a contributing sponsor to the latter D. corporate advertising designed to change the image of an organization E. none of the above
76. (p. 584) McDonald's sponsorship of the Ronald McDonald House, where families of hospitalized children can stay free of charge, is an example of: A. advocacy advertising B. cause-related marketing C. publicity D. advertorial marketing E. transactional marketing
77. (p. 584) Liberty Mutual Insurance paid for an ad supporting the efforts of Students Against Drunk Driving (SADD) and safe teen driving. This ad was an example of: A. advocacy advertising B. cause-related marketing C. publicity D. advertorial marketing E. transactional marketing
17-20
Chapter 17 - Public Relations, Publicity, and Corporate Advertising
78. (p. 585) Which of the following describes a potential benefit associated with cause-related marketing? A. product differentiation B. increased sales C. increased profits D. positive image effects E. all of the above
79. (p. 585) Which of the following statements about cause-related marketing is true? A. Cause-related marketing is designed to enhance the organization's image. B. Cause-related marketing has been shown to increase sales. C. Many consumers support cause-related marketing. D. A majority of consumers believe cause-related marketing is designed for the sole purpose of boosting the firm's image. E. All of the above statements about cause-related marketing are true.
80. (p. 586) Which of the following is NOT an advantage associated with corporate advertising? A. potential good will B. its use as a potential positioning vehicle C. benefits from public relations D. the ability to reach people different from those reached by other types of advertising E. consistent effectiveness
81. (p. 586) Which of the following is a criticism commonly applied to corporate advertising? A. poor vehicle for repositioning a company or a brand B. does not take advantage of any benefits derived from public relations C. not effective at reaching the target market D. questionable effectiveness E. all of the above
17-21
Chapter 17 - Public Relations, Publicity, and Corporate Advertising
82. (p. 586-587) Which of the following is a technique used to measure the effectiveness of corporate advertising? A. attitude surveys B. split run tests C. experiential marketing research D. computer simulations E. all of the above
83. (p. 586-587) The attempt to measure the effectiveness of PR activities is often difficult to achieve. Which of the following measures would be most useful in this effort? A. tying PR activities directly to sales B. timing the amount of time a sponsored logo appears on television C. conducting studies to determine the relationship between corporate advertising and stock prices D. computer simulations E. none of the above
17-22
Chapter 18 - Personal Selling
Chapter 18 Personal Selling
Multiple Choice Questions 1. (p. 590) In the opening vignette, it is suggested that it costs about _________ as much to gain a new customer as it does to keep an existing one. A. twice B. two times C. one hundred D. five times E. ten times See opening vignette.
2. (p. 592) Which of the following statements about personal selling is true? A. Personal selling would play a dominant role in a company that sells machinery to the oil drilling industry. B. The role of personal selling would be minimal in a company that sells disposable razors. C. In many companies the sales manager controls personal selling. D. In an integrated marketing communications program, personal selling is a partner with other promotional mix elements. E. All of the above statements about personal selling are true.
3. (p. 592) Which of the following statements about personal selling is true? A. Personal selling would play a dominant role in a company that sells inexpensive plastic toys. B. The role of personal selling would be minimized in a company that sells component parts to auto manufacturers. C. Since personal selling makes a valuable contribution to an organization's promotional program, the firm's advertising department should contribute to the personal selling effort. D. In an integrated marketing communications program, personal selling is a substitute for other promotional mix elements. E. All of the above statements about personal selling are true.
18-1
Chapter 18 - Personal Selling
4. (p. 593) _____ is the two-way flow of communication between a message sender and a message receiver designed to influence a receiver's purchase decision. A. Sales promotion B. Direct marketing C. Adaptive marketing D. Personal selling E. Public relations
5. (p. 593) For which of the following products would personal selling be the element of the promotional mix most likely emphasized? A. bars of soap B. coloring books C. earthmoving equipment D. boxed chocolate candy E. fresh flowers
6. (p. 593) Personal selling most notably differs from the other forms of promotional communication due to: A. communications techniques that can be integrated into a marketing communications strategy B. the opportunity for direct and immediate feedback C. a symbiotic relationship D. a standardized message E. all of the above Note that direct marketing also makes effective use of personalized messages.
7. (p. 593) In personal selling, the communications sender is able to immediately receive and evaluate feedback from the receiver. This is referred to as _____ communications. A. synergistic B. adaptive C. dyadic D. indirect E. consultative
18-2
Chapter 18 - Personal Selling
8. (p. 593) Dyadic communication is defined as: A. communication between two people or groups B. communication where there is no feedback C. technologically-oriented communication D. all integrated marketing communications that are verbalized E. any communication that elicits an opinion from the receiver
9. (p. 593-594) Which of the following is NOT a question an organization needs to use to determine the role of the promotional mix elements? A. What specific information must be exchanged between the firm and potential customers? B. What promotional mix methods are being employed by its competitors? C. How cost effective is the use of each element of the promotional mix? D. How effective is each element of the promotional mix in carrying out the needed exchange? E. What methods can the organization use to carry out its communications objectives?
10. (p. 594) A sales force is likely to be a major part of an organization's communications mix when: A. the final price between buyer and seller is negotiable B. the number and dispersion of customers will not enable acceptable advertising economies C. the features and performance of the product require trial by the customer D. the channel system is relatively short and direct to end-users E. any or all of the above are true See Figure 18-1.
11. (p. 594) The sales force becomes a major part of the integrated marketing communications mix when: A. the product is complex B. the price is negotiable C. a push strategy is employed D. product demonstration is a necessary part of the sales presentation E. any or all of the above occur See Figure 18-1.
18-3
Chapter 18 - Personal Selling
12. (p. 594) A sales force is a major part of an organization's integrated marketing communications mix when: A. the channel system is long and indirect to end-user B. product trial by customers is unnecessary C. the information needed by customer can be provided by advertising and sales promotion D. product and service training are needed by channel intermediaries E. the final price is not negotiable See Figure 18-1.
13. (p. 595) The first stage of the personal selling evolution is the _____ stage. A. prospector B. provider C. preparer D. persuader E. presenter
14. (p. 595) Which of the following is NOT a stage of the personal selling evolution? A. the provider stage B. the persuader stage C. the producer stage D. the procreator stage E. the prospector stage
15. (p. 595) The difference between selling and relationship marketing is reflected by the difference between the _____ and the _____ stages of sales evolution. A. provider; persuader B. persuader; problem solver C. persuader; procreator D. procreator; provider E. problem solver; provider
18-4
Chapter 18 - Personal Selling
16. (p. 595) Relationship marketing would most closely approximate which stage of the evolutionary selling process? A. persuader B. procreator C. problem-solver D. provider E. prospector
17. (p. 595) Salespeople who seek out potential buyers who are perceived to have a need for the service/product and the resources to buy are involved in what stage of the evolution of selling process? A. persuader B. procreator C. problem-solver D. provider E. prospector
18. (p. 595) When a firm's customer needs are mutually defined and matched with a tailored offering, the firm is in which evolution stage of the selling process? A. procreator B. provider C. prospector D. persuader E. problem-solver
19. (p. 595) Which of the following statements about the stages in the evolution of selling is true? A. The problem solver is typically found in buyers' markets. B. The intensity of competition is greatest for salespeople at the provider level. C. The procreator engages with the customer in defining the customer's needs and tailoring a product to satisfy those needs. D. The persuader is typically found in sellers' markets. E. The competition is typically undifferentiated for a procreator. See Figure 18-3.
18-5
Chapter 18 - Personal Selling
20. (p. 596) Among the new roles performed by salespeople today is _____ in which the salesperson outlines both an account strategy and a solutions strategy (for the customer). A. fire starting B. mountain climbing C. map making D. surveying E. star charting
21. (p. 596) Because the business world is going through a very rapid transition, the role of the sales force is also experiencing significant changes. Which of the following is NOT an example of one of the new roles that a salesperson must adopt in order to be effective in this new business environment? A. fire starting B. mountain climbing C. map making D. surveying E. guiding
22. (p. 596) _____ is an organization's effort to develop a long-term, cost-effective link with individual customers for mutual benefits. A. Relationship marketing B. Benefitizing C. A transactional relationship D. A transformational exchange E. A joint venture
23. (p. 596) Relationship marketing requires: A. mutual trust B. working toward the same goals C. sharing information D. cost-effective link between customer and salesperson E. all of the above
18-6
Chapter 18 - Personal Selling
24. (p. 596) Which of the following words best characterizes relationship marketing? A. persuasion B. compliance C. dominance D. partnerships E. autonomy
25. (p. 596) Which of the following terms is associated with relationship marketing? A. long term partnering B. collaboration C. problem solving D. mutual benefits E. all of the above
26. (p. 596) A bank that wants to be your partner from the time your children are born until they finish college is definitely trying to: A. use a benefitization strategy B. implement relationship marketing C. establish a long-term transactional marketing plan D. create short-term dyadic communication E. combine the roles of prospecting and map making
27. (p. 597) The number of sales calls required to close a sale is highest for which of the following industries? A. clothing B. food service C. computer manufacturing D. agricultural E. insurance
18-7
Chapter 18 - Personal Selling
28. (p. 597) Which of the following lists the sales force classifications used by Sales & Marketing Management? A. order taking, order getting, and creative selling B. creative selling, telemarketing, and order getting C. manufacturers' agent, sales broker, and telemarketer D. missionary selling, creative selling, and order taking E. intangible selling, technical selling, and selling to manufacturers
29. (p. 598) Which type of sales personnel would most likely be involved in a straight rebuy? A. missionary sales representative B. order taker C. problem solver D. creative seller E. prospector See Figure 18-5.
30. (p. 598) The _____ is the salesperson who introduces new products, promotions, and/or programs to potential customers. A. missionary sales representative B. creative seller C. problem solver D. order getter E. order taker See Figure 18-5.
31. (p. 598) Which of the following types of sales jobs requires the most skill and preparation? A. missionary sales representative B. creative seller C. problem solver D. order getter E. order taker See Figure 18-5.
18-8
Chapter 18 - Personal Selling
32. (p. 598) Which of the following types of selling jobs involves creative selling but not actual order taking? A. telemarketer B. route salesperson C. order taker D. inside salesperson E. missionary salesperson See Figure 18-5.
33. (p. 598) With the evolution of personal selling, an individual salesperson's job requirements may include: A. determining a customer's needs and wants B. demonstrating the capabilities of the firm C. following up and servicing the account D. locating prospective customers E. doing all of the above
34. (p. 598) An ad in a dental trade magazine for a new product to sterilize equipment asks anyone interested in more information about the product to request an information pamphlet. These names and addresses of those dentists who made the request for more information are then given to the product manufacturer's salespeople. The names on this list are examples of: A. leads B. qualified prospects C. cold call recipients D. customers E. problem solvers
35. (p. 599) In providing information the prospect had not previously considered and/or identifying alternative solutions that may work for a prospect, a salesperson is fulfilling which of his or her job requirements? A. closing the sale B. locating prospective customers C. determining a customer's needs and wants D. recommending a means of satisfying the customer's needs and wants E. following up and servicing the account
18-9
Chapter 18 - Personal Selling
36. (p. 599) According to the text, the key ingredient to any sales presentation is the: A. close B. two-way feedback C. objection D. demonstration E. preapproach
37. (p. 599) HRTech is a company that provides human resource management services for smalland medium-sized businesses that do not have the necessary resources to efficiently manage their employees' needs themselves. During a sales presentation, its sales rep asked, "Can we start work on setting up your personalized HR system next Monday?" This question was an example of a(n): A. close B. two-way feedback C. objection D. demonstration E. preapproach
38. (p. 599) When Paul purchased auto insurance, the agent asked if he had renters' insurance. Paul did not know he should buy an insurance policy to protect his belongings from fire and theft; he thought his landlord was responsible for that type of insurance. When the agent explained how Paul needed to insure his personal belongings, Paul agreed and purchased renters' insurance along with the auto insurance. This is an example of: A. a multilevel close B. a cross sell C. a qualified sale D. missionary selling E. order taking
18-10
Chapter 18 - Personal Selling
39. (p. 599) A large retail chained hired ACCPAC to develop and implement an e-commerce Web site from which the store could sell out-of-season merchandise. During the development of the e-commerce site, a relationship developed between the participants. After a successful launch of the Web site, ACCPAC suggested the store would benefit from ACCPAC's warehouse management system. This would be an example of: A. a multilevel close B. a cross sell C. a qualified sale D. missionary selling E. order taking
40. (p. 599) Of all the promotional program elements, only personal selling provides the opportunity for: A. increased awareness B. the communication of detailed information C. direct feedback D. maintaining customer loyalty E. the opportunity to cross sell
41. (p. 601) The use of personal selling offers the opportunity to assess the sales situation and to adapt the sales message accordingly. This is called: A. missionary sales B. an indirect response system C. dyadic planning D. creative selling E. a direct feedback network
42. (p. 600) Effective salespeople must have: A. a sense of urgency B. creativity C. ego strength D. have empathy E. all of the above See Figure 18-6
18-11
Chapter 18 - Personal Selling
43. (p. 600) One of the traits buyers consider most objectionable in salespeople is: A. empathy B. promptness C. aggressiveness D. punctuality E. ability to follow-through See Figure 18-7.
44. (p. 600) One of the traits buyers consider most helpful in salespeople is: A. lack of dependability B. honesty C. presumptuousness D. synergy E. aggressiveness See Figure 18-7.
45. (p. 601) Which of the following is NOT an advantage of personal selling? A. two-way interaction B. high reach C. the lack of distraction D. the ability to tailor the message E. the ability to partner with the customer
46. (p. 601) Which of the following is NOT an advantage of personal selling? A. the ability to partner with the customer B. the ability to tailor the sales message C. the lack of distraction D. low cost E. the ability to engage in two-way interaction
18-12
Chapter 18 - Personal Selling
47. (p. 601) Which of the following characteristics of personal selling can be both advantageous and disadvantageous? A. the ability to personalize the sales message B. lack of distraction C. high cost D. poor reach E. indirect feedback potential
48. (p. 601) The ability to specifically tailor the message may prove to be either an advantage or a disadvantage. Under which of the following situations might this advantage become a disadvantage? A. when costs per contact are high B. when salespeople alter the message just to get a sale C. when the price is not negotiable D. when the product is complex E. when distribution channels are short and direct to the end user
49. (p. 601) Which of the following is an advantage associated with personal selling? A. inconsistent message delivery B. high cost per contact C. dyadic interaction D. poor reach E. sales force/management conflict
50. (p. 601) One of the disadvantages of personal selling is: A. the inability to tailor message B. two-way interaction C. the inability to partner with customer D. poor reach E. a lack of involvement in the purchase decision process
18-13
Chapter 18 - Personal Selling
51. (p. 601) Which of the following is a disadvantage associated with personal selling? A. low cost/contact B. sales force/management conflict C. lack of direct feedback D. inability to tailor message E. lack of customer involvement in decision process
52. (p. 601) What does it mean when salespeople are described as having poor reach? A. They engage in too much waste coverage. B. They lack product knowledge needed to close the sale. C. They are unable to expose everyone in the target market to their sales message. D. Wearout commonly occurs when salespeople make more than three sales calls on the same prospect. E. The cost per exposure to the sales message is high.
53. (p. 601) Which of the following products is most likely to benefit from personal selling communications? A. chewing gum B. soda C. industrial equipment D. disposable cigarette lighter E. cat litter
54. (p. 602) When a new product is being introduced, and the seller needs to reach as many people in the target market as quickly and as cost effectively as possible, personal selling combined with _____ is likely to be most effective. A. public relations efforts B. advertising C. direct marketing D. specialty advertising E. promotions
18-14
Chapter 18 - Personal Selling
55. (p. 602) At which stage of the adoption hierarchy would personal selling likely be LEAST useful? A. awareness B. evaluation C. trial D. purchase E. conviction
56. (p. 602) Studies conducted to examine the combination of advertising and personal selling efforts have shown: A. selling costs are higher when the potential buyer has received an advertisement B. sales reps from heavily advertised companies are more poorly received than those from non-advertised companies C. companies can improve reach, reduce costs, and improve the probability of a sale by combining advertising and personal selling D. advertising to be unnecessary when the objective is to create awareness for a new product E. all of the above to be true
57. (p. 602) Research has shown combining advertising with personal selling results in: A. an awkward reception of sales representatives B. higher selling costs C. improved reach D. an excellent way to overcome negative publicity E. none of the above
58. (p. 603) Which of the following statements describes how advertising can benefit salespeople? A. Ads can be used to ward off low-priced competitors. B. Consistent advertising helps build brand preference. C. Ads can reinforce the selling points made during sales presentations. D. The printed word adds credibility to the salespersons' verbal claim. E. All of the above statements describe how advertising can benefit salespeople. See Figure 18-8.
18-15
Chapter 18 - Personal Selling
59. (p. 603) By servicing an account and by cooperating and empathizing with clients, salespeople are engaging in _____ activities on behalf of their firm. A. sales promotion B. advertising C. public relations D. direct marketing E. telemarketing
60. (p. 604) Combining personal selling with _____ results in a higher percentage of sales closings and a lower average cost per sale. A. telemarketing B. specialty advertising C. public relations D. sweepstakes E. consumer promotions
61. (p. 604) Telemarketing has been effectively combined with personal selling to: A. generate leads B. screen leads C. qualify potential buyers D. perform service follow-ups E. do all of the above
62. (p. 604) An ad in a dental trade magazine for a new product to sterilize equipment asks anyone interested in more information about the product to request an information pamphlet. These names and addresses of those dentists who made the request for more information are then given to the product manufacturer's salespeople. This is an example of how _____ activities can be combined with personal selling. A. sales promotion B. publicity C. public relations D. direct marketing E. telemarketing
18-16
Chapter 18 - Personal Selling
63. (p. 605) Promotional tools designed to support and encourage personal selling include: A. flip charts B. cash bonuses C. free trips D. leave-behinds E. all of the above
64. (p. 605) Which of the following statements about the integration of personal selling and the Internet is true? A. The Internet can generate sales leads. B. Most managers believe the Internet will not replace the sales force. C. The Internet can provide product information. D. The Internet allows salespeople to sell--not just take orders. E. All of the following statements about the integration of personal selling and the Internet are true.
65. (p. 605) Car manufacturers have used a franchise dealer network since 1910 to sell vehicles. FordDirect.com is a place buyers can go, specify what features they want, and then learn which dealerships have cars that match their requirements. This is an example of how personal selling can be effectively combined with: A. direct marketing B. consumer promotions C. trade promotions D. public relations E. the Internet
66. (p. 606) Perhaps the greatest value of the Internet for a salesperson is: A. cross selling B. trial closing C. preapproach D. indirect marketing E. prospecting See also IMC Perspective 18-1.
18-17
Chapter 18 - Personal Selling
67. (p. 607) Criteria used in the evaluation of the contribution of personal selling to the overall promotional program include: A. providing marketing intelligence B. follow-up activities C. programs implemented D. attainment of communications objectives E. all of the above
68. (p. 607) The ability of the sales force to feed back information regarding competitive programs and customer reactions contributes to the promotional program by fulfilling which evaluative criterion? A. attainment of communications objectives B. program implementation C. follow-up activities D. providing market intelligence E. none of the above
69. (p. 608) Quantitative measures used to evaluate sales personnel include: A. product knowledge B. selling expenses as a percentage of sales volume C. territory management D. customer feedback E. marketing intelligence See Figure 18-11.
70. (p. 608) Qualitative measures used to evaluate sales personnel include: A. number of new accounts B. percentage of sales quota achieved C. average time spent per sales call D. report preparation and timely submission E. direct-selling expense ratio See Figure 18-11.
18-18
Chapter 18 - Personal Selling
71. (p. 608) Which of the following is NOT a quantitative measure used to evaluate the sales force? A. product knowledge B. orders obtained C. unit sales volume D. new accounts opened E. gross margins See Figure 18-11.
72. (p. 608) Selling skills: A. are a qualitative measure of sales effectiveness B. include product knowledge C. involve knowledge of company policies D. include communication skills E. are described by all of the above See Figure 18-11.
73. (p. 608) Sales efforts used as a quantitative measure of sales force effectiveness include: A. number of sales calls made B. average sales by call C. customer service criteria D. gross and net margins E. all of the above See Figure 18-11.
18-19
Chapter 19 - Measuring the Effectiveness of the Promotional Program
Chapter 19 Measuring the Effectiveness of the Promotional Program
Multiple Choice Questions 1. (p. 614) Critics of Super Bowl advertising argue: A. advertisers need to develop an econometric model to estimate its impact B. the feel, felt, found sales technique will not work for Super Bowl ads C. Super Bowl ads should only be used for subliminal sensual messages D. it only works if you have other communication channels behind it E. the USA Today Ad Meter is the best way to measure the impact of these ads See opening vignette.
2. (p. 615) Marketers should assess advertising effectiveness measures in order to: A. avoid costly mistakes B. evaluate alternative strategies C. increase the effectiveness of advertising D. improve the likelihood of success of the ads E. do all of the above
3. (p. 615) Marketers should assess advertising effectiveness measures in order to: A. determine the break-even point for total costs of advertising B. create data for marginal cost pricing strategies C. determine if advertising objectives are achieved D. make sure advertising supported middlemen E. do all of the above
19-1
Chapter 19 - Measuring the Effectiveness of the Promotional Program
4. (p. 616) The Ogilvy Award is awarded to the: A. advertising agency that can show how research was used to develop a successful promotional program B. specific media vehicle that had the greatest reach and frequency C. best annual example of event sponsorship D. most successful advertising campaign designed for a non-profit organization E. advertising agency that made the most effective use outdoor advertising See IMC Perspective 19-1.
5. (p. 617) Which of the following is an argument against measuring advertising effectiveness? A. costs B. disagreement as to what to test C. the objections of creative people D. difficulty in isolating the effects of specific advertisements E. all of the above
6. (p. 617) Which of the following is an argument against measuring advertising effectiveness? A. costs in terms of time and money B. the absence of top management support C. the need to give autonomy to those who control advertising D. accountability E. all of the above
7. (p. 617) According to the text, which of the following is the most likely reason why a small advertising firm like Greene & Associates would NOT want to measure the effectiveness of promotional programs it designed? A. costs in both time and money B. problems with delegation C. lack of top management support D. accountability issues E. absence of testing materials
19-2
Chapter 19 - Measuring the Effectiveness of the Promotional Program
8. (p. 619) When measuring the effects of communication, the advertiser needs to evaluate all of the following EXCEPT: A. source factors B. feedback mechanisms C. message variables D. budgeting decisions E. media strategies
9. (p. 619) Commercials for SleepComfort mattresses used Lindsey Wagner (star of The Bionic Woman, a popular TV show in the 1970s). If the mattress manufacturer wanted to test how effective she was at reaching the company's target market, it would evaluate: A. source factors B. feedback mechanisms C. message variables D. budgeting decisions E. media strategies
10. (p. 620) Commercials for SleepComfort mattresses used Lindsey Wagner (star of The Bionic Woman, a popular TV show in the 1970s) and deal with the problem that many people do not get enough sleep. If the mattress manufacturer wanted to test how effectively the cable networks that ran the ad reached its target market, it would evaluate: A. source factors B. feedback mechanisms C. message variables D. budgeting decisions E. media strategies
11. (p. 619-620) An advertiser who is measuring the effectiveness of media strategies needs to examine: A. media class B. media vehicle C. media scheduling D. the vehicle option source effect E. all of the above
19-3
Chapter 19 - Measuring the Effectiveness of the Promotional Program
12. (p. 620) The vehicle option source effect refers to the: A. different reach and frequency provided by different media vehicles B. the fact that people perceive ads differently depending on their context C. responses that come from using a flighting, pulsing, or continuity strategy D. opportunity costs of the various media vehicles that are not chosen E. battle between budget constraints and creative options
13. (p. 620) 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. halo B. recency C. stimulus-response D. vehicle option source E. vehicle context
14. (p. 620) When Madison saw a television ad for a large retail chain of jewelry stores, she was impressed with the money-back guarantee the company gives on all of its jewelry. But later when Madison heard the 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. halo B. recency C. stimulus-response D. vehicle option source E. vehicle context
15. (p. 620) Which of the following is probably the hardest component of the advertising program to test? A. source factors B. message variables C. media strategies D. budgeting decisions E. message timing
19-4
Chapter 19 - Measuring the Effectiveness of the Promotional Program
16. (p. 621) Advertising testing methods such as association measures, tracking studies and inquiry tests are examples of: A. single-source, real-world methods B. post-test, field methods C. laboratory, pretest methods D. single source, posttest laboratory methods E. pretest field methods See Figure 19-2.
17. (p. 621) Consumer juries and portfolio tests are examples of: A. single-source, real-world methods B. post-test, field methods C. laboratory pretest methods D. single source, posttest laboratory methods E. pretest field methods See Figure 19-2.
18. (p. 621) Which of the following is a pretest method for measuring advertising effectiveness that is conducted in a laboratory setting? A. recognition tests B. single-source systems C. association measures D. physiological measures E. none of the above See Figure 19-2.
19-5
Chapter 19 - Measuring the Effectiveness of the Promotional Program
19. (p. 621) Which of the following is used in field post testing of ad effectiveness? A. readability tests B. consumer juries C. portfolio tests D. recognition tests E. all of the above See Figure 19-2.
20. (p. 621) Which of the following is a posttest classification used for measuring advertising effectiveness? A. concept tests B. portfolio tests C. recognition tests D. physiological measures E. all of the above See Figure 19-2.
21. (p. 621-622) Test measures of an ad's effectiveness are classified as: A. internal or external B. physiological and psychological C. post-testing or pretesting D. individual or group E. broadcast or print
22. (p. 622) _____ testing takes place at the earliest stage of the development for either a print ad or a broadcast commercial. A. Functional B. Concept C. Elementary D. Product E. Brainstorm
19-6
Chapter 19 - Measuring the Effectiveness of the Promotional Program
23. (p. 622) The advantages associated with pretesting include: A. the successful communicative abilities of most mockups and storyboards B. the ability to use finely tuned mockups and storyboards in the testing process C. the absence of time delays D. relatively inexpensive feedback E. none of the above
24. (p. 622) Commercials and print ads are post-tested to: A. gain relatively inexpensive feedback B. avoid the use of surveys C. determine if a campaign is accomplishing the objectives sought D. determine if the organization's mission statement needs to be modified E. locate new product ideas
25. (p. 622) Post-testing is designed to: A. act as a benchmark for when to begin the situation analysis B. check the impact of positioning statements C. determine if the campaign accomplished the objectives sought D. determine what psychological factors will influence ad perception E. avoid problems associated with selective perception
26. (p. 622) The fact that people in market research lab setting looking at ad mockups may look at an ad more closely than they might look at it if it was included in a magazine that was delivered to their home is an example of a(n): A. vision myopic perception B. testing bias C. environmental proclivity D. perceptual propensity E. myopic bias
19-7
Chapter 19 - Measuring the Effectiveness of the Promotional Program
27. (p. 622) Laboratory methods of testing for advertisement effectiveness generally offer high _____ but low _____. A. control; generalizability B. external validity; internal validity C. control; costs D. generalizability; costs E. costs; value
28. (p. 622) Disadvantages associated with laboratory tests include: A. lack of control of environmental variables B. lack of realism C. the expense associated with collecting feedback information D. a loss of specificity E. the way it eliminates competitive intelligence gathering opportunities
29. (p. 622) The primary difference between a laboratory experiment and a field experiment is that in a field experiment, the researcher: A. has less control over extraneous independent variables B. has the ability to achieve greater internal validity C. has control of all independent variables D. uses a totally different set of procedures E. does none of the above
30. (p. 622) An advantage offered by field test measures is: A. greater control of synergistic forces B. more realistic testing conditions C. the ability to avoid competitive intelligence gathering D. low costs E. the ability to isolate the causes of the viewers' evaluations
19-8
Chapter 19 - Measuring the Effectiveness of the Promotional Program
31. (p. 622) In a field test, the firm: A. makes a final assessment of an ad before committing any money to media B. sacrifices control in order to assess the ad's real world impact C. evaluates the ability of the ad to communicate key issues correctly D. obtains quick and inexpensive feedback about the ad's impact E. does none of the above
32. (p. 622) The set of principles adopted by large advertising agencies to improve preparation and testing of ads is referred to as: A. Positioning Advertising Copy Testing (PACT) B. Post-Advertising Commercial Testing (PACT) C. Promotional Advertising Content Testing (PACT) D. Pre-Advertising Commercial Testing (PACT) E. Principles of Advertising Consumer Testing (PACT)
33. (p. 623) The principles of Positioning Advertising Copy Testing (PACT) state that a good copy testing system will: 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 the advertising C. evaluate responses 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 ad under consideration
34. (p. 623) Which of the following is one of the nine principles of Positioning Advertising Copy Testing (PACT)? A. Provide measurements that are relevant to the objectives of the advertising. B. Realize that the copy should be valid and that reliability may be too costly to guarantee. C. Provide controls to avoid the biasing effects of the ad content. D. Use a convenience sample. E. Realize that a single measurement is adequate to assess an ad's performance. See Figure 19-3.
19-9
Chapter 19 - Measuring the Effectiveness of the Promotional Program
35. (p. 623) To try to help Americans prepare for a terrorist attack, the U.S. Department of Homeland Security used a new $1.2 million advertising campaign involving both print and broadcast media. Prior to the development of the advertisements, the department conducted concept tests with small groups of eight to ten average U.S. citizens from New York City, Kansas City, Los Angeles and elsewhere who gave their opinions on what the ads should contain and how the message should be delivered. This is an example of: A. post-testing through focus groups B. pretesting through mall intercepts C. field testing through the use of single-source data D. pretesting through focus groups E. the Delphi method of testing advertising effectiveness
36. (p. 623) Which of the following is the methodology a manufacturer of computer game software could use to test the concepts being used to create an ad to appeal to preteens? A. a split-run test B. a storyboard C. the Delphi technique D. computer simulation E. a focus group
37. (p. 623) Which of the following is NOT an example of a weakness associated with focus group research? A. The qualifications needed to participate are too stringent. B. The results are not quantifiable. C. Members may be taken to be more representative of the population than they really are. D. Consumers may become instant experts. E. Sample sizes are too small to generalize to larger populations. See Figure 19-4.
19-10
Chapter 19 - Measuring the Effectiveness of the Promotional Program
38. (p. 624) Most television commercials are designed so to be readily understood by viewers with a 12th grade education. Which of the following measures should be used to test an ad to see if it met this criterion? A. recognition tests B. day-after recall C. comprehension and reaction D. tracking studies E. physiological measures
39. (p. 624) 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 paste-ups on separate sheets. A. Starch recognition method B. Day-After Recall method C. comprehension and recognition test D. consumer jury E. split-run test
40. (p. 626) To try to help Americans prepare for a terrorist attack, the U.S. Department of Homeland Security will used a $1.2 million advertising campaign involving both print and broadcast media. Prior to producing the finished commercials, people to whom the message was targeted were asked to look at a succession of photos and to give their reactions to the message delivered by the photos. In other words, people were asked to look at: A. photomatic rough B. animatic rough C. still motion animation D. still-action animatic E. panning frames of animatics See Figure 19-7.
19-11
Chapter 19 - Measuring the Effectiveness of the Promotional Program
41. (p. 626) _____ is a rough commercial test in which a succession of drawings and/or cartoons is shown to the receiver. A. Animatic rough testing B. Photomatic rough testing C. Live-action rough testing D. Finished product testing E. Single source testing See Figure 19-7.
42. (p. 627) Participants in a consumer panel rated all aspects of an ad based on the popularity of the product being advertised as being good. This is referred to as a _____ effect. A. halo B. recency C. stimulus-response D. visual option source E. contextual
43. (p. 627) One of the flaws associated with the consumer jury method of pretesting an ad is: A. high costs B. the potential for ad erosion C. the potential for the halo effect D. the groupthink phenomenon E. lack of control by researchers
44. (p. 627) _____ is the laboratory method of pretesting ads which exposes a group of respondents to both control and test advertisements presented together in a portfolio. A. The DAR test B. Portfolio testing C. Dummy testing D. The Flesch test E. Commercial testing
19-12
Chapter 19 - Measuring the Effectiveness of the Promotional Program
45. (p. 627) The portfolio test for ads assumes: A. the ad that yields the highest recall is the most effective B. reliability and validity are the most important part of the testing process C. the consumer will closely scrutinize all ads that he or she sees D. field and laboratory tests produce the same results E. there is no contextual different between an animatic rough and a photomatic rough
46. (p. 628) _____ is a readability test, which examines the average number of syllables per 100 words. A. Portfolio analysis B. Burke's reflections test C. The Flesch formula D. Dummy testing E. Contextual testing
47. (p. 628) The results of readability tests indicate copy is best comprehended when the: A. sentences are long and descriptive B. words used are vague and evocative C. words used have no connotations outside their dictionary definitions D. receiver is unknown E. words are concrete and familiar
48. (p. 628) _____ is a method of testing ads by placing them randomly in certain copies of regularly distributed magazines. A. Vehicle source testing B. Burke's reflection test C. A Flesch test D. Dummy advertising vehicle testing E. A contextual test
19-13
Chapter 19 - Measuring the Effectiveness of the Promotional Program
49. (p. 629) Theater testing: A. is a popular field method of pretesting finished commercials B. is used to test animatic and photomatic roughs C. allows the researcher a high level of control over the environment D. is primarily used in business-to-business marketing E. is a popular field method of post testing finished commercials
50. (p. 629) Which of the following statements describes a disadvantage associated with theater testing of ads? A. The environment is too artificial. B. The group effect may cause some to react to an ad when they would not have ordinarily. C. The setup will be viewed as phony by many participants. D. Participants will answer like they think they're supposed to not as a reflection of how they really feel. E. All of the above are disadvantages associated with theater testing.
51. (p. 630) Assume Bayer aspirin wishes to test the relative effectiveness of two alternative spokespersons. Two television commercials featuring the same content but different celebrities are developed. _____ would be the best way to test the relative effectiveness of how well the advertising message is communicated. A. Readability tests B. On-air tests C. Concept tests D. Physiological measures E. Tracking
52. (p. 630) The primary measure used in on-air testing is: A. focus group results B. portfolio analysis C. day-after recall scores D. comprehension and reaction tests E. consumer jury results
19-14
Chapter 19 - Measuring the Effectiveness of the Promotional Program
53. (p. 630) On-air tests of commercials: A. offer the advantages of laboratory testing B. are neither valid nor reliable C. use day-after recall as the primary measure D. is used primarily with concept testing E. are described by all of the above
54. (p. 630-631) Pupillometrics, electrodermal response and electroencelphalographic measures are all forms of: A. field posttests B. rational measures of advertising effectiveness C. single-source field tests D. physiological measures of advertising effectiveness E. focus group interaction measures
55. (p. 630) Physiological measures of advertising effectiveness: A. are the most common methods for evaluating finished commercials in a laboratory setting B. measure involuntary responses to ads C. measure the effects of subliminal advertising D. are only used for pretesting broadcast advertising E. are accurately described by none of the above
56. (p. 630) Advertising testing that studies dilation or constriction of the eye in response to stimuli is called: A. the Burke's reflection test B. Flesch testing C. the reactive test D. galvanic eye responses E. pupillometrics
19-15
Chapter 19 - Measuring the Effectiveness of the Promotional Program
57. (p. 630) Galvanic skin response is also known as: A. electrodermal response B. pupillometrics C. dermal resolution D. beta activity E. alpha activity
58. (p. 631) _____ measures electrical frequencies in the brain as the individual being tested responds to ads he or she is viewing. A. Electrodermal B. Pupillometric C. Electroencephalographic D. A cerebellum metric unit E. Cerebral response
59. (p. 631) 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. electrodermal response B. cerebral response C. beta activity D. alpha activity E. pupillometrics
60. (p. 631) _____ distinguishes between alpha activity in the left and right sides of the brain and is used to determine how an ad is affecting the mental processes of the individual viewing it. A. Cerebral response testing B. Gamma activity C. Pupillometrics D. Beta activity E. Hemispheric lateralization
19-16
Chapter 19 - Measuring the Effectiveness of the Promotional Program
61. (p. 631) National Fruit Product Company, the maker of White House apple products, decided to change its label to emphasize the products' nutritional value. Which of the following physiological measures could have been used to determine which prototype label would most effectively catch a consumer's eye in a supermarket? A. hemispheric lateralization B. gamma activity C. electrodermal response D. dermal resolution E. eye tracking
62. (p. 631) One of the newest uses for eye tracking is to determine: A. the effectiveness of online advertising B. how long an individual has to read an interstate billboard message C. why certain coupons have higher redemption rates than others D. the connotations of the colors used in print ads E. whether an individual is aware of exposure to split-run ads
63. (p. 632) Inquiry tests: A. are used in both consumer and business-to-business market testing B. are posttests C. include the reader response cards often found in trade journals D. may not truly measure the attention-getting or information-providing aspects of an ad E. are accurately described by all of the above
64. (p. 632) An example of _____ would be a test of two different ads for Morton's salt. One ad contained ideas extending the use of salt beyond the kitchen, and the other described salt as "The Spice of Life." Both ads were run in alternative copies of the March 2003 issue of Better Homes & Gardens. A. bipolar communications tests B. split-run tests C. dual copy tests D. Flesch tests E. tests of alpha activity
19-17
Chapter 19 - Measuring the Effectiveness of the Promotional Program
65. (p. 632) BMW has developed two new print ads designed to appeal to women. One ad uses local scenes from around its South Carolina plant and emphasizes the "made in America" aspect. The other ad uses a spokesperson and emphasizes the safety of the car. Which type of ad effectiveness measure should BMW use to test which ad is most effective? A. split-run testing B. day-after recall C. consumer juries D. physiological measures E. portfolio tests
66. (p. 632) A "split-run" privilege 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. the advertiser to put the identical ad in two consecutive issues D. alternate copies of the same issue to carry different versions of the message E. an advertiser to buy 50 percent of the back cover position in one issue
67. (p. 632) The most commonly employed method for post testing print ads is: A. the recognition method B. focus groups C. theater testing D. inquiry testing E. consumer juries
68. (p. 634) The three principal readership scores of the Starch method are: A. seen-associated, noted, and read most B. comprehension, retention, and response C. noted, comprehended, and seen-associated D. readers per dollar, cost ratios, and CPMs E. recognition, retention, and comprehension See Figure 19-14.
19-18
Chapter 19 - Measuring the Effectiveness of the Promotional Program
69. (p. 633) Neuromarketing is described as: A. another research methodology that promises more than it delivers B. wiring consumers while they watch commercial C. an alternative to asking consumers what they think D. a major marketing research breakthrough E. all of the above IMC Perspective 19-2.
70. (p. 634) As designed by Roper Starch Worldwide, the primary advantage offered by the recognition method of post-testing ads is: A. the reliability of its recognition scores B. false claims of recognition by participants in the test C. the ability to judge specific aspects of an ad D. the potential for interviewer bias E. the validity of the recognition scores
71. (p. 635) Which testing method should The Home Depot employ to determine if consumers remember its new advertising campaign slogan? A. physiological tests B. comprehension and reaction tests C. recall tests D. portfolio tests E. concept testing
72. (p. 635) Which of the following statements about recall method for testing print ads is true? A. The size of the ad is directly related to the likelihood of its recall. B. The creativity of the ad has no impact on its recall. C. Recall tests are useful when measuring an ad's impact on memory. D. DAR tests are a popular form of post testing used for print ads. E. The process of using recall as a pretesting method differs completely from the process of using recall as a post testing method.
19-19
Chapter 19 - Measuring the Effectiveness of the Promotional Program
73. (p. 636) The ____ is a technique for measuring advertising effectiveness. With this method, recall of television commercials is the dependent measure. A. Starch recognition method B. Day-After Recall method C. concept test D. consumer jury E. split-run test
74. (p. 636) The day-after recall test would be the most appropriate measure of effectiveness for: A. the back outside cover position of the May issue of Fortune B. a full-page ad in a trade journal aimed at the supermarket industry C. a 30-second commercial promoting NCAA football games on the cable channel ESPN D. a transit ad on the back of the envelope that contains airplane tickets E. all of the above
75. (p. 636) Which of the following is a potential disadvantage associated with DAR tests? A. the use of a prerecruited sample B. question formats often cause bias-related error C. DAR tests may favor unemotional appeals D. program content may influence recall E. all of the above
76. (p. 636) An advertiser that wanted to gather _____ could ask participants in a research program to choose a brand of athletic shoe they would like to win and then ask the same question later after the participants have been exposed to ads for various brands of athletic shoes. A. physiological measures B. alpha activity C. persuasive measures D. measures of the hierarchy of effects E. beta activity
19-20
Chapter 19 - Measuring the Effectiveness of the Promotional Program
77. (p. 637) Brown & Williamson tobacco company created an IMC program for Kool cigarettes, which focused on the brand's multicultural strengths. The campaign was initially run only in Hawaii and then slightly modified after posttest results were gathered and analyzed. Brown & Williamson used: A. test marketing B. persuasive measures C. comprehensive measures D. psychological measures E. single-source tracking
78. (p. 638) _____ traces the behaviors of consumers from the television set to the supermarket checkout counter. It can be used to pretest and to posttest advertising effectiveness. A. Contextual testing B. The Starch test C. The Burke follow-up test D. Single-source tracking E. Bipolar tracking
79. (p. 638) _____ takes posttest measures of an advertising campaign's effectiveness at regular intervals. A. In-depth interviews B. Tracking studies C. Recognition tests D. Recall tests E. Consumer juries
80. (p. 638) If the manufacturer of Jeep is interested in measuring consumers' movement through the adoption hierarchy, it should employ which of the following ad effectiveness measures? A. ad tracking B. day-after recall tests C. concept testing D. recognition test E. portfolio testing
19-21
Chapter 19 - Measuring the Effectiveness of the Promotional Program
81. (p. 638) Actimel is a dairy-based probiotic supplemental beverage made by Dannon. Originally, it was sold in organic food stores and only promoted in natural health magazines. The company has recently embarked on an extensive advertising campaign to promote the product to a larger health-conscious market. First, Dannon needs to explain to the general public the benefits of the product, and then it needs to create brand awareness. To determine the long-term effects of its campaign Dannon could most effectively use: A. day-after recall tests B. tracking studies C. Starch recognition tests D. on-air tests E. split-run tests
82. (p. 639) One of the primary benefits inherent in using tracking studies to measure ad effectiveness is: A. high level of efficiency B. low cost C. the ability to tailor the measures to each campaign or situation D. its timeliness E. the speed with which results can be gathered and tabulated
83. (p. 639) Good tests of advertising effectiveness must address the nine principles established by PACT. One of the easiest ways to do this is to follow a decision sequence model. The first step in the model is to: A. understand the appropriate research B. create a model that uses multiple measures C. establish communication objectives D. the decision whether to use posttests or pretests E. develop a consumer response model See Figure 19-18
19-22
Chapter 19 - Measuring the Effectiveness of the Promotional Program
84. (p. 641) Good tests of advertising effectiveness must address the nine principles established by PACT. One of the easiest ways to do this is to follow a decision sequence model. Which of the following is NOT one of the steps in this sequence? A. establish communication objectives B. use a consumer response model C. decide whether to use pretests or posttests D. use multiple measures E. understand and implement proper research
85. (p. 642) Oral-B developed toothbrushes with Disney characters (Snow White, Cinderella, and Sleeping Beauty) painted on the handles and targeted to young girls. In each toothbrush package, it inserted a free sample of Princess toothpaste. To determine the effectiveness of this new sales promotion, the toothbrush manufacturer should measure: A. sales of Princess toothpaste before the promotion vs. sales of Princess toothpaste after the promotion B. the market share of Oral-B's Princess toothbrush before and after the campaign C. the long-term results of the sales promotion D. inquiries E. physiological factors
86. (p. 643) Measures of the effectiveness of sponsorships can be categorized as: A. recall or recognition tests B. either exposure-based or tracking measures C. physiological measures or psychological measures D. field or laboratory tests E. posttest or pretest
87. (p. 643) When Caterpillar decided to sponsor a NASCAR driver and racing team, its advertising department measured the effectiveness of the event by counting the references to the Caterpillar car and driver in newspapers, magazines, and on television and radio news. Which method is Caterpillar using in this example? A. laboratory post testing B. field pretesting C. comprehension and reaction tests D. exposure methods E. "top of mind" awareness
19-23
Chapter 19 - Measuring the Effectiveness of the Promotional Program
88. (p. 643) The first step in measuring the effectiveness of event sponsorship is to: A. set qualitative goals B. build evaluation methods into the sponsorship strategy C. narrowly define the objectives for the event with specific details D. redefine the organization's objectives in terms of its marketing communications E. measure the implementation and results against predetermined benchmarks
89. (p. 645) A number of studies have been implemented to determine the combined effects of two or more media. Most of these studies have demonstrated: A. television advertising is still the best media option B. the impact of the Internet on radio advertising C. a higher effectiveness when multiple media are employed D. overlap and inconsistent reach minimize the impact of multiple media simultaneously E. all of the above
90. (p. 645-646) The Heart-wear example shows: A. the value of measuring the effectiveness of various IMC efforts. B. how a small firm can increase its advertising budget C. magazine advertising is no longer effective D. the coordination of Internet advertising with targeted billboard advertising E. all of the above
19-24
Chapter 20 - International Advertising and Promotion
Chapter 20 International Advertising and Promotion
Multiple Choice Questions 1. (p. 651) When global marketers of consumer goods first consider expansion into a developing country, they often start by: A. weighing the cost political access as compared to the internal operative imperative B. assessing the roadblocks associated with global distribution C. assessing the potential for democracy to flourish in a country where less-than-democratic marketing traditions exist D. examining the daily lives of these consumers including their needs and aspirations E. examining the complexity of cultural determinism as compared to the need for aspirational significance See opening vignette.
2. (p. 653) Which of the following factors is limiting growth opportunities in the U.S. market for many companies? A. slow population growth B. saturated markets for many products and services C. intense competition from domestic companies D. intense competition from foreign companies E. all of the above
3. (p. 653) Many tobacco companies and breweries in the U.S. are focusing their efforts on international markets to sustain growth because: A. sales in the U.S. are declining B. consumers outside the U.S. are not as litigious C. regulatory pressure in the U.S. is having a negative impact on their sales and making it increasingly difficult to market their brands D. of strong market opportunities available in foreign countries E. of all of the above reasons
20-1
Chapter 20 - International Advertising and Promotion
4. (p. 653-654) Why are international markets so important to many U.S. companies? A. The domestic market for their products is saturated. B. The industries or markets in which they compete face unfavorable environmental trends. C. There is less competition and more growth potential in foreign markets. D. Many companies are facing intense competition from imports in domestic markets and must aggressively pursue international markets. E. All of the above are reasons why international markets are so important to many U.S. companies.
5. (p. 653-654) Many U.S. firms need to market their products and services internationally to: A. extend a product's life cycle B. take advantage of favorable market conditions and growth opportunities in foreign countries C. counter adverse demographic or economic conditions in domestic markets D. seek growth when demand in domestic markets has stagnated E. do all of the above
6. (p. 655) The difference between the monetary value of a nation's exports and imports is its: A. added value B. international trade C. balance of trade D. balance of payments E. value of exports
7. (p. 655) A balance of trade deficit exists when the: A. value of imports exceeds that of exports B. value of exports exceeds that of imports C. supply of imports exceeds the demand for them D. the value added by the exporting nation exceeds that added by the importing nation E. the value of exports and imports are about equal
20-2
Chapter 20 - International Advertising and Promotion
8. (p. 655) The U.S. has been experiencing a continuing balance of trade _____ that _____ the importance of international marketing efforts by U.S. companies. A. surplus; increases B. surplus; decreases C. deficit; increases D. deficit; decreases
9. (p. 655) Which of the following companies spends the most annually on worldwide advertising? A. Fiat B. Nestle SA C. Toyota D. Procter & Gamble E. Sony See Figure 20-1.
10. (p. 655) Which of the following companies annually spends the most on advertising outside the U.S.? A. Procter & Gamble B. Nestle SA C. Unilever D. General Motors E. Toyota See Figure 20-1.
11. (p. 656) According to an international marketing scholar, the most visible as well as the most culture bound part of a firm's marketing functions is its: A. pricing B. promotion C. product development D. distribution E. inventory management
20-3
Chapter 20 - International Advertising and Promotion
12. (p. 656) Which of the following is NOT an example of a major external environmental factor that must be considered when analyzing the international marketing environment? A. economic factors B. cultural factors C. demographic factors D. pricing factors E. political/legal factors
13. (p. 656) Which of the following is NOT a part of the economic environment of a foreign country? A. stage of economic development B. economic infrastructure C. currency stability D. exchange rates E. age distribution of the population See Figure 20-2.
14. (p. 657) The communications, transportation, financial and distribution networks of a country are part of it's: A. political/legal environment B. culture C. economic infrastructure D. demographic environment E. international interface
15. (p. 657) When the CEO of International Partners, Ltd. was in Katmandu, the capital of Nepal, he found that 90 percent of his telephone calls didn't connect to the party he was calling. This represents a problem with Nepal's: A. demographic environment B. economic infrastructure C. balance of payments D. cultural system E. advertising system
20-4
Chapter 20 - International Advertising and Promotion
16. (p. 657) A U.S. executive in Namibia in Africa experienced trouble negotiating a franchise deal with local investors because the electricity was constantly shutting off. One of the investors was unable to attend the meeting because there is so little public transportation in the country. These problems indicate a problem with Namibia's: A. demographic environment B. economic infrastructure C. balance of payments D. cultural system E. advertising system
17. (p. 658) Advertising in China was once banned but now is encouraged as part of China's: A. economic development efforts B. global supremacy aspirations C. Internet strategy D. shift from democracy to communism E. all of the above See also Global Perspective 20-1.
18. (p. 658) Traditionally, Chinese companies have competed based on price but many are trying to move away from this strategy by: A. expanding global distribution systems internally B. product placement in Olympic advertising C. joint ventures with leading manufacturers from Vietnam D. expanding their promotional mix to include diverse artistic promotional messages E. developing higher-end products with more brand equity See also Global Perspective 20-1.
19. (p. 659) Factors such as size of the population, age distribution, education, and income levels are part of a country's _____ characteristics. A. economic B. demographic C. cultural D. political/legal E. lifestyle
20-5
Chapter 20 - International Advertising and Promotion
20. (p. 659) Which country in South America has the largest consumer market? A. India B. Brazil C. Argentina D. Mexico E. Colombia
21. (p. 659) A U.S. exporter of baby furniture would be interested in how many people are in the Full Nest I stage of the family life cycle in a country that is was planning on exporting its products to. This type of information is part of a nation's _____ environment. A. economic B. demographic C. cultural D. political/legal E. lifestyle
22. (p. 659) Polaroid Corporation encountered great problems when it attempted to market instant cameras in France. The French consumer saw little need for having a picture developed instantly. This indicates Polaroid did not understand the French _____ environment. A. demographic B. economic C. cultural D. political/legal E. media
23. (p. 659) Variables such as language, customs, tastes, values and life styles are part of a country's: A. cultural environment B. infrastructure C. demographic environment D. regulatory environment E. political legal environment
20-6
Chapter 20 - International Advertising and Promotion
24. (p. 659) _____ factors of the international environment probably create more problems for advertisers than any others since they directly impact the ability to communicate effectively with consumers in foreign countries. A. Demographic B. Economic C. Cultural D. Political E. Marketing mix
25. (p. 659) Most Asian women are shy about their bodies. Eight-two percent of all Korean women sleep with underpants and a bra under their nighties. This would be important _____ information to a company like Victoria's Secret as it expands into Korean markets. A. demographic B. economic C. cultural D. political E. infrastructure
26. (p. 659) To market on the Belgian home shopping channel, advertisers have to prepare programs in Flemish (a version of Dutch), Dutch and German because all three languages are commonly spoken in Belgium. This language difficulty represents a _____ problem for a U.S. company trying to sell its products on the Belgian home shopping channel. A. demographic B. economic C. cultural D. political E. infrastructure
20-7
Chapter 20 - International Advertising and Promotion
27. (p. 659-660) In France, cosmetics are used heavily by men as well as women and advertising directed to the male market is common. Consumers in the U.S. are heavier users of personal hygiene products such as deodorants and mouthwashes. These are examples of _____ differences that affect consumption patterns. A. demographic B. economic C. cultural D. regulatory E. generic
28. (p. 659-660) A delivery service must understand that as a result of _____ differences, Europeans are not as time-sensitive as Americans, and Asians are even less time sensitive than Europeans. A. economic B. demographic C. political D. cultural E. infrastructure
29. (p. 659-660) The only South American country where Coca-Cola is not the market leader is Peru where local tastes prefer Inca Kola. Inca Kola is golden yellow in color and tastes like banana-flavored bubble gum. Which environmental factor is most responsible for the fact Coca-Cola does not sell well in Peru? A. economic B. demographic C. political D. cultural E. infrastructure
20-8
Chapter 20 - International Advertising and Promotion
30. (p. 660) Advertisers can handle potential problems that may arrive from diversity in language and cultural differences in signs and symbols in various countries by: A. using a local ad agency B. consulting local employees C. hiring companies that specialize in translating advertising slogans and copy into local languages D. consulting local employees E. doing any or all of the above
31. (p. 660) _____ are beliefs and goals shared by members of a society regarding ideal end states of life and modes of conduct. A. Cultural values B. Ethical attitudes C. Learned perceptions D. Ethical perceptions E. Cognitive responses
32. (p. 660) Direct marketing experts believe loyalty programs are poised for tremendous growth in South America. These experts believe as a result of the importance of personal relationships as well as a strong sense of family that is pervasive on the continent, marketing programs that emphasize relationships will perform better than others. This strong sense of family and the importance of relationships would both be classified as: A. cultural values B. ethical attitudes C. learned perceptions D. ethical perceptions E. cognitive responses
33. (p. 660) Most Asian women are shy about their bodies. This conservative attitude toward one's body is an expression of a(n): A. cultural value B. ethical attitude C. learned perception D. ethical perception E. cognitive response
20-9
Chapter 20 - International Advertising and Promotion
34. (p. 660) Government regulations and controls in a country can affect which aspect of a company's advertising program in a foreign country? A. the content of the ads B. the media the advertisers can use C. the use of foreign languages in ads D. the production location of an ad E. all of the above
35. (p. 662) To reach out to the youth market in the Middle East Coca-Cola and Pepsi corporations have: A. pressured area governments into creating a single set of laws on advertising in the Middle East and established strict policies are their enforcement B. called for each Middle Eastern country to determine its own policies on advertising regulation C. used a variety of IMC tools including sponsorships and branded entertainment. D. emphasized their association with America and American foreign policies E. targeted parents because of their strong influence on teenagers consumption preferences
36. (p. 663) An American sporting goods manufacturer wanting to sell on the Belgian home shopping channel would find that different laws govern the people who live in the Flemish communities, the German communities and the French communities that exist in the nation. For instance, in the French-speaking community of Waloons in Belgium the home shopping channel is legal. It is an illegal operation, however, in Flanders, the area of the country where Flemish is spoken. This is an example of how _____ factors affect global marketing. A. economic B. demographic C. political/legal D. cultural E. infrastructure
20-10
Chapter 20 - International Advertising and Promotion
37. (p. 663) Since the European Union banned the use of food dyes in seafood, the salmon market has suffered. People mistakenly believe that salmon is naturally pink. Unfortunately, salmon is an unappetizing gray color. This is an example of how _____ factors can inadvertently hurt small businesses. A. economic B. demographic C. political/legal D. cultural E. infrastructure
38. (p. 663) Diet Coke is known as Coca-Cola Light in Germany, France and many other countries because these countries have legal restrictions prohibiting the use of the word diet. This is an example of how _____ factors affect global marketing. A. economic B. demographic C. political/legal D. cultural E. infrastructure
39. (p. 663) Some governments require local production of any commercials shown on television in their countries to: A. create jobs for local production companies B. prevent large foreign ad agencies from dominating the advertising business in their country C. protect their cultural values D. support the nationalistic viewpoint of the government E. do all of the above
40. (p. 664) _____ is a marketing approach that assumes the needs satisfied by a product or service and the way it is used are the same everywhere in the world, and therefore utilizes a common marketing approach in all countries. A. Global marketing B. Universal marketing C. Localized marketing D. Nationalized marketing E. Countertrading
20-11
Chapter 20 - International Advertising and Promotion
41. (p. 664) The concept of ______ deals with all elements of a firm's marketing mix while the concept of _____ deals specifically with the communication aspect of marketing. A. global marketing: global advertising B. global advertising: standardization C. global advertising: global marketing D. standardization: global marketing E. adaptation: standardization
42. (p. 665) _____ was the marketing scholar who popularized the concept of global marketing. A. Phillip Kotler B. John Naisbitt C. Theodore Levitt D. Peter Drucker E. Robert Holloway
43. (p. 665) Which of the following is NOT an advantage associated with the use of global marketing and advertising? A. economies of scale in production and distribution B. lower marketing and advertising administrative costs C. lower advertising production costs D. the need to adapt the marketing and advertising program to cultural differences E. the ability to develop and maintain a consistent international brand or company image
44. (p. 665) Which of the following is an advantage associated with the use of global marketing and advertising? A. economies of scale in production and distribution B. lower marketing and advertising administrative costs C. simplification of coordination and control of marketing and promotional programs D. the ability to develop and maintain a consistent international brand or company image E. all of the above
20-12
Chapter 20 - International Advertising and Promotion
45. (p. 665) British Airways believes it is very difficult to differentiate itself from other major airlines on the basis of schedules, routes and price. However, the airline thinks it can be differentiated on the basis of service and has decided to focus much of its effort on image advertising using the theme "The World's Favorite Airline". Which of the following is correct regarding this type of advertising campaign? A. This campaign will definitely require a localized approach with different ads for each country. B. This campaign could easily be adapted to a global campaign since the focus is on service and image, which are easily understood by airline passengers in all countries. C. This campaign will require a localized strategy since perceptions of service will definitely be different among airline passengers in every country. D. British Airlines should forget the service campaign and focus on price since international flights are chosen on a price basis. E. None of the above statements about the ad campaign for British Airways is true because no generalizations can be made from the information given.
46. (p. 665) Which of the following would make the use of a standardized, global advertising approach difficult? A. cultural differences B. differences in economic development of countries C. differences in media availabilities D. differences in consumer needs and usage patterns E. all of the above
47. (p. 665) Opponents of the standardized global advertising approach argue that very few products lend themselves to global advertising because of differences in: A. culture B. markets C. levels of economic development D. media availabilities E. all of the above
20-13
Chapter 20 - International Advertising and Promotion
48. (p. 666) Coffee seems like a fairly simple and unambiguous term. But, in Great Britain, the word suggests a large mug filled with equal quantities of lukewarm water, instant coffee granules, milk, and sugar. Many other terms that seem the same aren't, and help to explain why marketers have so much trouble with: A. cultural infrastructures B. cultural changes C. global advertising D. affective and cognitive responses E. operating within the restrictions set by the Maastricht Treaty
49. (p. 666) Which of the following products/services would be LEAST suitable for global advertising appeals? A. jewelry B. cigarettes C. IBM personal computers D. airline service E. Duncan-Hines cake mixes
50. (p. 667) Which of the following types of products/service would be well suited to the use of a global advertising appeal? A. brands that are promoted with image campaigns that play to universal appeals such as sex or wealth B. products that play to universal motives and can be advertised using image or emotional appeals C. high-tech products being introduced for the first time D. products that appeal to market segments in each country with similar tastes, interests, needs, and values E. all of the above
51. (p. 667) Which of the following would be the best example of a product that would probably appeal to a global market segment? A. Scotch whiskey B. Swiss chocolates C. ear rings and necklaces made from Colombian emeralds D. CD players E. all of the above
20-14
Chapter 20 - International Advertising and Promotion
52. (p. 668) Products such as Swiss watches, German automobiles and French wine can be promoted using global advertising campaigns because they: A. are all high tech products B. appeal to market segments with universal tastes and interests C. come from countries that have strong reputations for making these products D. can be advertised using totally visual appeals E. offer all of the above advantages
53. (p. 668) Beck's beer has developed a global advertising campaign that focuses on the brand's German heritage and notes it is the best selling beer in Germany. Beck's global campaign is taking advantage of the fact: A. beer preferences are the same in every country B. people do not develop a brand loyalty for beer C. Germany has an international reputation for great brewers of beer D. beer can be promoted using visual appeals E. people like to experiment with different beer tastes
54. (p. 668) 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. ability to cross sell B. country-of-origin effect C. customary and accepted perception D. self-regulation of global images rule E. Central Hudson test
55. (p. 669) A study of college students' knowledge of the country-of-origin of products showed: A. heightened sensitivity among today's college student to the quality associated with country-of-origin, especially associated with electronic products B. lack of concern where products are made C. most American college students prefer products from Russia and Mexico D. the vast majority of college students are not aware of the country of origin of most brands E. all of the above
20-15
Chapter 20 - International Advertising and Promotion
56. (p. 670) _____ is an advertising format where ads follow the same basic approach but themes, copy, and visual elements may be adjusted A. Global advertising B. Local advertising C. Pattern advertising D. Format advertising E. Ad standardization
57. (p. 671) Weight Watchers, having achieved a 50 percent market share in the United States, was ready to move into international markets. The company found it had to introduce new diets and weight-loss measures on a country-by-country basis even though it maintained its basic ad campaign. Weight Watchers used: A. localized advertising B. consistency advertising C. a standardized formatting strategy D. pattern advertising E. none of the above
58. (p. 672) Gillette had a worldwide advertising campaign for its Sensor razors using an ad campaign theme of "Gillette--the best a man can get." Some of the ads featured sports stars from the host country rather than using only one sports star in all of the ads. This is an example of a(n): A. localized advertising approach B. application of the "think global, act regionally" approach to international advertising C. totally global or standardized approach D. totally customized approach E. ethnocentric approach to advertising
20-16
Chapter 20 - International Advertising and Promotion
59. (p. 672) When Campbell's introduced its condensed soup in Great Britain it made no changes to the product as we know it in the U.S. The British, however, thought the soup was expensive and in very small cans—they were unaware of the need to add water. Campbell's soup would have been more successful if it had used a(n): A. localized advertising approach B. application of the "think global, act regionally" approach to international advertising C. totally global or standardized approach D. totally customized approach E. ethnocentric approach to advertising
60. (p. 672) The dominant strategy used by most international advertisers today is to: A. centralize all of the marketing mix elements except promotion B. use localized advertising C. "think locally and act globally" D. "think globally and act regionally" E. use standardized advertising
61. (p. 672) Automated Logic Systems manufactures high-tech building automation systems and sells them to Latin American and Asian buyers. The company has decided to use _____ and make all major strategy and budgeting decisions at the home office. A. a centralized organization structure B. a decentralized organizational structure C. a combination structure D. a localized structure E. combination marketing
62. (p. 672) Which of the following is NOT an advantage associated with a centralized organizational structure? A. ease of adapting to local markets B. less duplication of services and costs C. fewer burdens on local management D. possibility of presenting a unified brand image worldwide E. elimination of the need to defend local decisions to the home office
20-17
Chapter 20 - International Advertising and Promotion
63. (p. 672) Allise Industries manufactures and exports copper wiring to markets all over the world. It has adopted an advertising organizational structure in which its managers in each country or region have the authority to make decisions for their market. Allise Industries has a _____ structure. A. centralized organizational B. decentralized organizational C. matrix D. localized E. globalized
64. (p. 673) In planning advertising for the 2008 Olympics, international travel agencies discovered they needed to use different ad campaigns to appeal to travelers from different countries. Americans wanted a trip that allowed them to have an extended stay. Japanese travelers went to attend specific events and wanted to return home as soon as the events were over. Global travel agencies gave the managers of their foreign offices the authority to develop country-appropriate advertising. This is an example of how a _____ advertising organizational structure works. A. centralized B. decentralized C. pattern D. globalized E. matrix
65. (p. 673) Local managers operating in an international company with a decentralized organizational structure will be responsible for: A. the selection of ad agencies B. approval of creative ad themes and executions C. conducting advertising research D. the development of advertising budgets E. doing all of the above
20-18
Chapter 20 - International Advertising and Promotion
66. (p. 673) The organizational approach to international advertising used by Levi Strauss & Co. which consists of a vice president of global marketing who oversees the company's marketing program in 60 countries but still provides autonomy to local and regional marketing directors is an example of a: A. centralized approach B. totally global approach C. decentralized approach D. combination of the centralized and decentralized approaches E. matrix network
67. (p. 673) Many advertising agencies are moving their offices from Hong Kong to ___________ to be closer to the world's largest consumer market, China. A. Beijing B. Hanoi C. Lhasa D. Shanghai E. Tokyo
68. (p. 673) Many American companies prefer to use a U.S. based international agency because: A. U.S. agencies are the most creative B. U.S. agencies understand world markets better than foreign agencies do C. U.S. agencies give the advertiser better control of the advertising process and facilitate the coordination of international advertising D. U.S. based agencies generally understand local markets better than agencies located in these countries E. the U.S. culture is the most used as a basis for understanding other cultures
69. (p. 674) Why are global marketers consolidating their advertising into one agency? A. to increase efficiency B. to gain greater leverage over their agencies C. to develop a consistent global image D. because agencies now have the ability to communicate globally E. for all of the above reasons
20-19
Chapter 20 - International Advertising and Promotion
70. (p. 674) Why are global marketers consolidating their advertising into one agency? A. as a way of implementing the philosophies of Theodore Levitt B. due to terrorists' activities in other parts of the world C. because the importance of cultural barriers has declined significantly D. because agencies now have the ability to communicate globally E. for all of the above reasons
71. (p. 675) Marketers who think it is important to have its advertising done by an agency that has a very good understanding of each international market in which it sells its products will likely to use a(n): A. U.S.-based international agency B. U.S.-based agency with regional offices that could serve each country C. local agency for each national market D. in-house agency E. specialty agency
72. (p. 675) When Campbell's introduced its condensed soup in Great Britain it made no changes to the product as we know it in the U.S. The British, however, thought the soup was expensive and in very small cans—they were unaware of the need to add water. When this campaign was developed, Campbell's undoubtedly did not use: A. a centralized approach to its advertising B. local agency for each national market C. a public relations agency D. creative boutiques E. a hierarchical approach to its advertising
73. (p. 675) Which of the following is a criterion that will influence a company's selection of an agency to handle its international advertising? A. the way the company is organized for international advertising B. the size of the company's international business C. the level of control desired by the company D. the agency's creative capabilities E. all of the above See Figure 20-3.
20-20
Chapter 20 - International Advertising and Promotion
74. (p. 675) Which of the following is NOT identified by the text as a criterion that will influence a company's selection of an agency to handle its international advertising? A. size of company's international business B. type of product being advertised C. whether the company is centralized or decentralized D. public relations services offered by the agency E. quality of agency work See Figure 20-3.
75. (p. 675) The primary reason many companies do not conduct advertising research in international markets is due to: A. the language differences B. high costs C. efficiencies of scale D. the fear of losing a competitive advantage E. the lack of local advertising agencies
76. (p. 675) During a World Cup soccer match, both McDonald's and Coca-Cola made the mistake of reprinting the Saudi Arabia flag, which includes sacred words from the Koran, on disposable packaging used in promotions. The uproar over this misuse of a cultural symbol forced a recall of the offending items. _____ could have prevented this recall. A. Advertising research B. Dyadic communication C. Creative decision-making D. A global approach to advertising E. A centralized approach to advertising
77. (p. 676) The U.S. federal government agency that works closely with U.S. companies to help them sell their products and services to foreign markets is the: A. Federal Trade Commission B. Overseas Business Commission C. U.S. Department of Commerce D. United Nations E. National Chamber of Commerce
20-21
Chapter 20 - International Advertising and Promotion
78. (p. 676) Which of the following types of marketing information would be most difficult to find in foreign markets, especially in developing countries? A. demographic characteristics B. information on economic conditions C. information on cultural norms and values D. information on consumers' product usage, brand attitudes and media preferences and usage E. information on population size and characteristics
79. (p. 676) The _____ is an annual report that provides demographic and economic data on more than 200 countries. A. Predicast Report B. NCH Promotional Services Report C. World Population Report D. United Nations Statistical Yearbook E. International Marketing Handbook
80. (p. 677) 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 usually will transfer well to foreign markets. B. Creative strategies may have to be different for each market depending on factors such as consumers' usage patterns, cultural backgrounds and lifestyles. C. Emotional appeals such as humor work well in virtually any country. D. Sexual appeals work very well in nearly every country. E. All of the above statements about making creative decisions for international advertising are true.
20-22
Chapter 20 - International Advertising and Promotion
81. (p. 677) In the United States, people with golden tans are generally seen as attractive and possibly even well-to-do. However, in other countries, such as the Philippines, suntans are indicative of laborers and even underprivileged people. A U.S. company planning on marketing a line of tanning lotions, bronzing creams, and salves for sunburns globally realizes it is important to select an advertising agency that truly understands each foreign market. The company should: A. use a U.S.-based international agency B. use a U.S. based agency that has a few offices in foreign countries C. use local agencies for each country it wants to enter D. use a superagency with global marketing capabilities E. do none of the above
82. (p. 677) When advertisers use a(n) _____, the agency must know that humorous advertising appeals are popular in the United Kingdom but German consumers do not respond well to them. A. global marketing strategy B. sales promotion tactic C. global public relations strategy D. localized advertising strategy E. centralized marketing strategy
83. (p. 678) When making decisions about media strategy for international markets, advertisers know that _____ can be a problem. A. differences in media availability B. the gathering of reliable media information such as circulation figures, audience profiles, and costs C. restrictions on media usage for advertising D. fluctuations in media rates due to unstable currencies and economic conditions E. all of the above
20-23
Chapter 20 - International Advertising and Promotion
84. (p. 678) Which of the following statements about media strategy and selection for international markets is true? A. The dominant advertising medium on a worldwide basis is print. B. Television is not a dominant advertising medium in most developed countries. C. Radio, billboards, and direct mail are of little value as advertising media in most foreign countries. D. Media selection is typically globalized for a centrally planned advertising campaign. E. All of the above statements about media strategy and selection for international markets are true.
85. (p. 679-680) Which of the following is helping to expand the advertising opportunities available to marketers in many European countries? A. satellite networks B. direct broadcast by satellite (DBS) systems C. the growth of cable television D. growth in commercial TV stations as governments relax restriction E. all of the above
86. (p. 681) MTV is: A. using a localized advertising approach in conjunction with an alternative media display system B. the premier media platform for marketers trying to reach young consumers throughout the world C. is a classic example of the think regionally, act globally approach D. an ancient media platform no longer considered viable in most global markets E. an opportunity for using an ethnocentric approach to personal selling
87. (p. 681) Which of the following media beams 15 advertising-supported channels and 9 subscription movie channels to over 60 million Asian households, hotels, and restaurants equipped with satellite dishes? A. MTV B. British Sky Broadcasting (BSkyB) C. Satellite Television Asian Region (STAR TV) D. DBS E. CNN
20-24
Chapter 20 - International Advertising and Promotion
88. (p. 681) The main incentive for the growth of direct broadcast satellite networks is: A. the ratification of the Maastricht Treaty B. language differences that do not match borders C. limited program choices and advertising opportunities on government-controlled stations D. the Asian recession E. the passage of NAFTA
89. (p. 681) According to the text, sales promotion is growing in international markets due to: A. the deregulation and/or privatization of media B. the number of avid sports fans around the world C. increased global literacy D. the way news media responds to press releases E. all of the above
90. (p. 681) According to the text, sales promotion is growing in international markets due to: A. the deregulation and/or privatization of media B. the liberalization of trade C. the spread of cable and satellite television D. the rise of global brands E. all of the above
91. (p. 682) Unlike advertising, which can be done on a global basis, sales promotion: A. should never include sales contests in global markets B. offers better opportunities for salespeople than advertising C. must be adapted to local markets D. should avoid be adjusted for the level of economic development in a country E. should challenge the existing trade structure
20-25
Chapter 20 - International Advertising and Promotion
92. (p. 681) Yahoo, Inc. introduced mobile Internet stations in Tokyo, for use by fans of soccer. Kiosks were wrapped in Yahoo's purple and yellow logo and colors with notebook computers placed in them for fans to browse news, scores, and streaming video highlights from World Cup Soccer Games for free. This _____ was very successful and Yahoo expects to run the same campaign in the future. A. public relations campaign B. IMC program C. sales promotion D. image advertising E. trade promotion
93. (p. 681-682) Which of the following statements about international sales promotions is true? A. Because product sampling is so closely regulated, sampling is not effective outside the U.S. B. Event sponsorship is ineffective because of an absence of media needed to publicize the event. C. In many less developed countries, spending on sales promotions often exceeds media spending on television, radio and in print ads. 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.
94. (p. 681-682) When developing sales promotion programs for international markets, a company must consider: A. the country's stage of economic development B. the country's market maturity C. the country's consumer perceptions D. the country's trade structure E. all of the above
95. (p. 681-682) Which of the following should be examined before an international company decides to use sales promotion techniques in a foreign country? A. retailer involvement and cooperation B. a lack of media to distribute promotional materials C. cultural differences in promotions that attract and interest consumers D. legal restrictions and regulations in various countries E. all of the above
20-26
Chapter 20 - International Advertising and Promotion
96. (p. 681-682) Problems with distribution and resistance from retailers to process coupons, set up displays and deal with premiums in many countries is a sales promotion difficulty associated with: A. the country's stage of economic development B. the country's market maturity C. the country's consumer perceptions D. the country's trade structure E. all of the above
97. (p. 681-682) Which of the following statements about the use of sales promotion tools in international markets is true? A. International marketers typically find couponing to be the best way to reach their target markets. B. Some countries limit the value of premium offers to a certain percentage of the retail price of the product. C. Laws governing sales promotion are more restrictive in the U.S. than in most foreign countries. D. Variations in rules and regulations among countries are minor and rarely require that marketers develop separate consumer sales promotions programs for individual countries. E. Sweepstakes are encouraged by national governments in virtually every country in Europe.
98. (p. 681-682) Which of the following statements about the use of advertising and sales promotion in international markets is true? A. Advertising can often be done on a global basis while sales promotion must often be adapted to local markets. B. Sales promotion can often be done on a global basis while advertising must often be adapted to local markets. C. Advertising and sales promotion can be done either locally or globally with equal effectiveness. D. Advertising and sales promotion are most effective when done on a regional basis. E. Advertising is subject to varying regulations in foreign markets but sales promotion is not.
20-27
Chapter 20 - International Advertising and Promotion
99. (p. 683) For global brands, _____ decisions are likely to be made at a corporate headquarters level while _____ is generally left to local managers. A. sales promotional strategy; advertising strategy B. sales promotional strategy; sales promotion implementation C. sales promotional implementation; sales promotional strategy D. sales promotional implementation; advertising strategy
100. (p. 683) Because personal selling requires personal contact and communication and is very culture bound, many companies will: A. hire sales reps from the host country and decentralize management of the sales force B. hire sales reps from the home country of the company who understand the company and its products very well C. not use personal selling unless they absolutely have to D. use a globalized personal sales approach E. use a highly centralized sales management approach to make sure all sales efforts are complementary
101. (p. 685) When Citibank launched its credit cards in India, it found the locals would work for much lower wages than in more developed countries. Therefore, Citibank decided to rely on ____ as a very focused and cost effective way to reach prospective customers. A. broadcast advertising B. sales promotion C. personal selling D. direct mail E. the Internet
102. (p. 686) When PepsiCo tried to introduce Diet Pepsi to Brazil the company ran into stiff opposition from certain groups who felt that a diet soft drink would hurt the country's sugar cane business. A problem such as this is probably best approached using which of the following approaches? A. using advertising to convince Brazilian consumers of Diet Pepsi's great taste B. using advertising to convince Brazilian consumers that Diet Pepsi only has one calorie C. using heavy sampling programs to get Brazilian consumer to try Diet Pepsi D. using public relations efforts to work with groups who are opposed to the product and try to address their concerns E. adopting a missionary oriented personal selling approach
20-28
Chapter 20 - International Advertising and Promotion
103. (p. 686) In 2006, Harvard faculty pressured President Lawrence Summers into resigning. Some alumni were upset by this incident. Harvard will most likely use _____________ to soothe alumni feelings. A. sampling B. public relations C. trade allowances D. couponing E. events sponsorship
104. (p. 685) _____ is the promotional function that deals with problems involving local governments, media, trade associations and the general public. A. Advertising B. Marketing C. Personal selling D. Sales promotion E. Public relations
105. (p. 685) Turner's Cartoon Network encountered problems introducing the cable channel to Scandinavian television because of opposition to the violent nature of some cartoons like those with the Road Runner and Tom and Jerry. Turner could have used _____ to counter negative publicity and communicate the company's commitment to non-violence. A. advertising B. sales promotion C. public relations D. direct mail E. the Internet
106. (p. 686) In France, _____ used a "Made in France" campaign to counter negative images of the company associated with a World Trade Organization decision ordering Europe to accept hormone-fed beef. A. Coca-Cola B. McDonald's C. PepsiCo D. Microsoft E. MTV
20-29
Chapter 20 - International Advertising and Promotion
107. (p. 686-687) Which of the following statements about the international use of the Internet is true? A. The Internet is an important IMC tool for both large and small companies around the world. B. Chinese youth are emerging as one of the most Internet-engaged cohorts C. As use of the Internet grows internationally, there is tremendous variation in how consumers use the medium. D. During its formative years, the Internet was largely a North American phenomenon. E. All of the above statements about the international use of the Internet are true.
108. (p. 670) Which of the following statements about the international use of the Internet is true? 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. As use of the Internet grows internationally, there is tremendous variation in how consumers use the medium. D. Because English is the native language for only 8 percent of the world's population, English is the language used in less than 20 percent of all e-commerce Web sites. E. All of the above statements about the international use of the Internet are true.
20-30
Chapter 21 - Regulation of Advertising and Promotion
Chapter 21 Regulation of Advertising and Promotion
Multiple Choice Questions 1. (p. 692) Critics of the mail catalog industry often argue catalogs are wasteful and: A. create undue hardship on postal carriers B. negatively impact the environment through use of paper C. cause excess consumption D. create questionable marketing benefits to catalog companies E. increase television viewing See opening vignette.
2. (p. 692) Supporters of the mail catalog industry argue Americans: A. could save billions of miles of driving and gasoline usage by catalog shopping B. should as government to ban all broadcast advertisements until 2010 C. are addicted to catalogs and that to ban them would cause undue harm D. oppose socially responsible marketing and therefore catalogs should be sent to every home E. prefer shopping over the Internet and therefore catalogs should only be displayed on retailer's web sites See opening vignette.
21-1
Chapter 21 - Regulation of Advertising and Promotion
3. (p. 693) Imagine if an advertiser accused the ad agency that developed its ad campaign of misrepresenting the advertiser as chauvinistic, sued the agency, and won its lawsuit. How might this impact the advertising industry? A. Ad agencies could be more aware of creative limitations and would stick with more traditional ad campaigns. B. There would no longer be any limitations on ad agencies' creative thinking. C. The public relations that resulted from the lawsuit would more than compensate the advertiser for the losses it experienced as a result of the faulty ad. D. The consequences would be in direct proportion to how long the ad was run and what media were used. E. There would be no consequences because such lawsuits are illegal.
4. (p. 693) Which of the following federal agencies is NOT directly involved in regulating advertising? A. the Food and Drug Administration B. the Federal Communications Commission C. the U.S. Justice Department D. the U.S. Postal Service E. the Federal Trade Commission
5. (p. 693) Which of the following has some regulatory control over advertising? A. the Federal Trade Commission B. the Food and Drug Administration C. the U.S. Postal Service D. the Federal Communications Commission E. all of the above
6. (p. 693) Which of the following statements about the regulation of advertising is true? A. Advertising is externally regulated by federal and state agencies. B. Self-regulation is important because advertising is playing an increasingly important role in product liability litigation. C. Internal regulation from various groups probably has more influence on advertisers' day-today operations and decision making than government rules and regulations. D. In recent years, state attorneys general have become more active in the regulation of advertising. E. All of the above statements about the regulation of advertising are true.
21-2
Chapter 21 - Regulation of Advertising and Promotion
7. (p. 694) Regulation and control of advertising by various groups such as individual advertisers and their agencies, trade associations, and the media is known as: A. self-regulation B. external regulation C. trade regulation D. industry-defined norms E. advertising norms
8. (p. 694) Advertisers are often supportive of voluntary self-regulation because: A. self-regulation is viewed as a way of limiting government interference of advertising B. all clients and agencies are affected by voluntary self-regulation C. self-regulation does not require interaction between agency and client D. self-regulation results in even more stringent regulations than state and federal agencies want E. of all of the above reasons
9. (p. 694) Advertising for distilled spirits was banned from television as a result of: A. self-regulation B. external regulation C. trade regulation D. industry-defined norms E. advertising norms
10. (p. 694) Which of the following groups has a strong role in the self-regulation of advertising? A. advertising agencies B. industry trade associations C. the media D. advertising clients E. all of the above
21-3
Chapter 21 - Regulation of Advertising and Promotion
11. (p. 694) Which of the following statements describes how advertising agencies use internal controls for self-regulation? A. They have standards regarding the type of products they are willing to produce ads for. B. They require their clients to verify any claims that they want made in the advertising. C. They have creative review boards that examine ads for to see if they could possibly be perceived as offensive. D. They retain lawyers to review ads for potential legal problems. E. All of the above describe controls that advertising agencies use for self-regulation.
12. (p. 696) Restrictions on the advertising of hard liquor continue to loosen as DISCUS has made inroads into putting liquor advertising more on par with advertising for: A. pharmaceuticals B. tobacco C. beer and wine. D. sex E. children's toys See IMC Perspective 21-1.
13. (p. 696) DISCUS, the original ban on hard liquor advertising on radio and television: A. was overseen by the Federal Communications Commission B. was self-imposed by the liquor industry C. has been completely removed by the federal government D. was imposed by the broadcast industry in 1936 E. did not ban hard liquor advertising on local television affiliates See IMC Perspective 21-1.
14. (p. 694) Advertising of hard liquor is: A. overseen by numerous government agencies B. often rejected by media associations C. becoming a lot easier D. supported by temperance groups E. all of the above
21-4
Chapter 21 - Regulation of Advertising and Promotion
15. (p. 695) In 1977, the _____ ruled that restrictions on advertising by lawyers are unconstitutional and that they have a First Amendment right to advertise. A. Federal Trade Commission B. American Bar Association C. U.S. Supreme Court D. Better Business Bureau E. U.S. Department of Justice
16. (p. 695) Which of the following statements about advertising by attorneys, dentists and physicians is true? A. Attorneys are not allowed to advertise, but dentists and physicians are. B. Dentists and physicians are not allowed to advertise, but attorneys are. C. Most consumers are against the use of professional advertising. D. The Supreme Court has ruled that professionals such as attorneys, dentists and physicians have the right to advertise. E. Attorneys, dentists, and physicians do not advertise because they believe that advertising demeans their professions.
17. (p. 695) Regulation of advertising by trade and industry associations: A. shows that member firms and individuals are concerned with the impact and nature of their advertising B. is an example of one type of self-regulation C. has no legal basis for enforcement D. must rely on peer pressure or other nonbinding sanctions to get advertisers to comply with standards since there is no legal basis for enforcing them E. is accurately described by all of the above
18. (p. 695) Which of the following statements concerning advertising by attorneys is true? A. Advertising by attorneys is legal in the entire United States. B. The U.S. Supreme Court does not permit lawyers to advertise if they earn more than $100,000 per year. C. Attorneys are in agreement that advertising is an important part of their marketing mix. D. The American Bar Association recently removed all restrictions on the type of advertising attorneys can use. E. By its very nature, advertising can only have a positive impact on the legal profession.
21-5
Chapter 21 - Regulation of Advertising and Promotion
19. (p. 695) Which of the following statements concerning advertising by attorneys is true? A. Attorneys have strong opinions on whether the profession should be allowed to advertise. B. Many in the legal community are concerned that advertising has a negative impact on the image of the legal profession. C. Some states restrict the content of legal advertising to tombstone type ads that merely list the name, location, and objective qualifications. D. Efforts by some states to limit the rights of attorneys to advertise are likely to face a challenge in the U.S. Supreme Court. E. All of the above statements concerning advertising by attorneys are true.
20. (p. 697) The Better Business Bureau was formed by _______________ in 1916 to handle complaints about local business practices including advertising. A. the Federal Trade Commission B. the Federal Communications Commission C. the business community D. the World Trade Organization E. the Chamber of Deputies
21. (p. 697) The _____ is the largest and best known self-regulatory mechanism that has been established by the business community. A. Federal Trade Commission B. Federal Communications Commission C. Better Business Bureau D. National Advertising Review Council E. Chamber of Commerce
22. (p. 697) Better Business Bureaus provide control over advertising practices at a _____ level while the Council of Better Business Bureaus plays a major role in controlling advertising practices at a(n) _____ level: A. local; national B. national; local C. distributor; manufacturer D. industry-wide; individual company E. regional; local
21-6
Chapter 21 - Regulation of Advertising and Promotion
23. (p. 697) The _____ was formed by three advertising associations and the Council of Better Business Bureaus to sustain high standards of truth, accuracy, morality and social responsibility in national advertising. A. National Advertising Board B. National Advertising Review Council C. American Association of Advertisers D. Ad Council E. Board of Advertising Ombudsmen
24. (p. 697) Which of the following was NOT one of the groups involved in establishing the National Advertising Review Council? A. the American Advertising Federation B. the American Association of Advertising Agencies C. the Association of National Advertisers D. the Federal Trade Commission E. the Council of Better Business Bureaus
25. (p. 697) The advertising industry's most effective self-regulatory mechanism is the: A. Association of National Advertisers B. Federal Trade Commission C. NAD/NARB D. Distilled Spirits Council E. National Association of Broadcasters
26. (p. 698) The _____ accepts cases dealing with product performance claims, superiority claims against competitive products, and all kinds of scientific and technical claims made in national advertising. A. National Advertising Division (NAD) B. U.S. Department of Justice C. National Association of Attorneys General D. American Association of Advertising Agencies E. Federal Trade Commission
21-7
Chapter 21 - Regulation of Advertising and Promotion
27. (p. 698) Most of the questionable advertising examined by the National Advertising Division (NAD) of the Council of Better Business Bureaus: A. are eventually reviewed by the Federal Trade Commission B. are eventually reviewed by the Food and Drug Administration C. are modified or discontinued after investigation by the NAD D. cannot be substantiated E. are issued cease-and-desist orders
28. (p. 699) Which of the following statements about the National Advertising Review Board (NARB)is true? A. The NARB does not have the power to issue cease-and-desist orders. B. If an advertiser refuses to comply with the NARB decision, the matter can be referred to the appropriate government agency. C. Very few cases actually go before the NARB panel. D. Most advertisers abide by the decisions of the NARB. E. All of the above statements about the NARB are true.
29. (p. 699) Which of the following statements about the procedures used by the National Advertising Division (NAD) of the Council of Better Business Bureaus? A. The NAD may ask advertisers to supply appropriate substantiation for advertising claims in question. B. If substantiation provided by advertisers is unsatisfactory, the NAD can negotiate with advertisers to modify or discontinue the advertising in question. C. The NAD generally refers unsubstantiated advertising claims directly to the Federal Trade Commission. D. The NAD's advertising monitoring program is the source of many of the cases it reviews. E. All of the above statements about the National Advertising Division (NAD) of the Council of Better Business Bureaus are true.
21-8
Chapter 21 - Regulation of Advertising and Promotion
30. (p. 699) If an advertiser refuses to comply with rulings made by the National Advertising Review Board (NARB) , the NARB: A. can order the company to stop running the ad B. can refer the case to an industry trade association C. will refer the matter to an appropriate government agency and indicate that fact in its public record D. can impose a fine E. will lodge a class action suit for customers who have been in some way negatively affected by the ad
31. (p. 699) Which of the following statements describes the NAD/NARB review process? A. If a case is not resolved to its satisfaction, the NARB has the power to order an advertiser to stop running its ads. B. If the NAD and an advertiser fail to resolve an advertising controversy, either party can appeal the case to the NARB. C. Advertisers who participate in the full process of an NAD investigation, and NARB appeal often do not abide by the panel's decision. D. Most advertising cases investigated by the NAD are resolved without being sent to the NARB. E. Advertisers who do not comply with the NAD/NARB review process will find themselves encumbered with a class action lawsuit.
32. (p. 700) The _____ is a major trade association of the advertising business in the United States. It has its own standards of practice and creative code. A. Council of Better Business Bureaus B. National Advertising Review Board C. American Association of Advertising Agencies D. Federal Trade Commission E. National Association of Broadcasters
21-9
Chapter 21 - Regulation of Advertising and Promotion
33. (p. 700) Which of the following statements describes the media's role in the self-regulation of advertising? A. The media must accept all advertising they receive because of First Amendment guarantees of 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. Most media accept any advertising they receive since advertising is their major source or revenue. E. The three major networks have the least stringent advertising review process of any media.
34. (p. 702) The reason a magazine such as Good Housekeeping magazine regularly tests products and offers a "seal of approval" is to: A. enhance the credibility of the publication B. encourage advertisers to buy more media space C. avoid self-regulation D. discourage comparative advertising E. avoid questionable advocacy advertising
35. (p. 702) Advertising on television and radio was regulated for many years through codes developed by the _____ until the courts found some of its regulations served to restrain trade. A. National Advertising Review Board B. Federal Trade Commission C. Federal Communications Commission D. National Association of Broadcasters E. Standards and Practices Division
36. (p. 702) Which of the following media has the most stringent review and approval process for advertising? A. local radio B. magazines C. newspapers D. cable television E. the four major television networks
21-10
Chapter 21 - Regulation of Advertising and Promotion
37. (p. 702) Television advertising: A. has never been regulated by an industry trade association B. is regulated through codes developed and enforced by the Better Business Bureau C. is regulated by affiliates D. is more stringently self-regulated than any other medium E. is experiencing a tightening of the rules concerning the rating system used for commercials
38. (p. 703) Which of the following is a common complaint about the self-regulation of advertising? A. The NAD/NARB has a limited budget and staff. B. It often takes the National Advertising Division a long time to resolve a complaint. C. Self-regulation is viewed as being self-serving to the advertising industry. D. Self-regulation lacks the power and authority to be a viable alternative to government regulation. E. All of the above are common complaints about the self-regulation of advertising.
39. (p. 704) The _____ is the federal government agency having primary responsibility for the control and regulation of advertising. A. Federal Communications Commission B. NAD/NARB C. Better Business Bureau D. Food and Drug Administration E. Federal Trade Commission
40. (p. 704) The courts have extended First Amendment protection to: A. commercial speech B. allow advertisers to sue media that do not provide them with the promised reach and frequency C. the findings of marketing research studies D. advertisers who want to use misleading wording in their ads E. advertisers who do not want to be self-regulated
21-11
Chapter 21 - Regulation of Advertising and Promotion
41. (p. 705) Which of the following statements about commercial speech is true? A. The U.S. Congress is the only government body that has the authority to change the meaning of commercial speech. B. False, misleading, and deceptive promotions are classified as commercial speech and are legal under the First Amendment. C. Commercial speech is legal even if it prevents fair competition. D. There have been no recent attempts to expand the coverage of commercial speech under the First Amendment. E. None of the above statements about commercial speech is true.
42. (p. 705) Commercial speech is most accurately defined as: A. both an encoding and a decoding tool for communications B. speech that promotes a commercial transaction C. any type of comparative advertising D. any advertising on a broadcast media E. speech governed by the First Amendment to the U.S. Constitution
43. (p. 705) The U.S. Supreme Court established the _____, a four-part test, to determine restrictions on commercial speech. A. Virginia Consumer Council Test B. Free Speech Matrix C. First-Amendment Analysis D. California Test of Affirmation E. Central Hudson Test
44. (p. 705) Under the original Federal Trade Commission Act of 1914, the FTC: 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 competition D. was given the power to regulate all false and deceptive advertising practices that might injure competition or mislead consumers E. was given the authority to establish a National Advertising Review Board
21-12
Chapter 21 - Regulation of Advertising and Promotion
45. (p. 706) The _____ empowered the Federal Trade Commission to regulate unfair or deceptive practices including advertising. A. Lanham Act B. Sherman Antitrust Act C. Wheeler Lea Amendment to the FTC Act D. FDA Act E. Consumer Protection Act
46. (p. 706) The Wheeler-Lea Amendment to the Federal Trade Commission Act is an important piece of advertising legislation because it: A. empowered the Federal Trade Commission to regulate unfair or deceptive practices, including those in advertising B. gave the Federal Trade Commission access to the injunctive power of the federal courts C. gave the Federal Trade Commission the power to issue cease-and-desist orders and extended its jurisdiction over the false advertising of food and drugs D. declared unfair methods of competition in commerce were illegal E. did all of the above
47. (p. 707) Three major divisions of the Federal Trade Commission are the Bureaus of: A. Employment, National Security and Trade B. Governances, Compliance and Cooperation C. Regulation, Restriction and Reconstruction D. Economics, Consumer Protection and Competition E. Distribution, Distillation and Diversity
48. (p. 707) Which division of the Federal Trade Commission would deal with antitrust and consumer protection investigations? A. Bureau of Economics B. Bureau of Governances C. NAD/NARB D. Bureau of Consumer Protection E. Trade Regulation Bureau
21-13
Chapter 21 - Regulation of Advertising and Promotion
49. (p. 707) The _____ is the division of the Federal Trade Commission that is responsible for investigating cases involving deceptive or misleading advertising. A. Bureau of Economics B. Bureau of Competition C. NAD/NARB D. Bureau of Consumer Protection E. Trade Regulation Bureau
50. (p. 707) The _____ gave the Federal Trade Commission the power to establish trade regulation rules. A. Magnuson-Moss Act of 1975 B. FTC Act C. Wheeler-Lea Amendment D. Sherman Antitrust Act E. Trade Regulation Act
51. (p. 707) The Magnuson-Moss Act of 1975: A. defined commercial speech B. provides for the review and evaluation of all child-directed advertising C. defined the requirements for advertising substantiation D. is concerned with the misrepresentation of premiums when used in sales promotions E. dealt with consumers' rights regarding product warranties
52. (p. 708) _____ are industry-wide rules used by the Federal Trade Commission that define unfair or deceptive practices. A. Trade regulation rules B. Affirmative disclosure C. Corrective advertising D. Cease-and-desist orders E. Advertising guidelines
21-14
Chapter 21 - Regulation of Advertising and Promotion
53. (p. 708) According to Federal Trade Commission policy, the criteria for determining _____ are (1) a trade practice causes substantial physical or economic injury to consumers, (2) could be reasonably avoided by consumers, and (3) it must not be outweighed by countervailing benefits to consumers or competition. A. unfairness B. deception C. puffery D. affirmative disclosure E. the impact of cease-and-desist orders
54. (p. 708) Federal Trade Commission policy regarding the interpretation of _____ has generated considerable controversy since the concept has never been clearly defined. A. deception B. unfairness C. advertising substantiation D. affirmative disclosure E. puffery
55. (p. 708) In 1994, the Federal Trade Commission, the U.S. Congress and the advertising industry agreed on a definition of unfairness in advertising that: A. allowed peer arbitration to be used before a final judgment is made B. dropped the requirement for substantiation of advertising claims C. required that the FTC have reason to believe that an unfair or deceptive act or practice is prevalent before initiating industry-wide rule D. defined any type of deceptive or misleading ad as unfair E. did all of the above
56. (p. 709) BMW's claims that is has astonishing agility and balance, near-intuitive response, and superior brakes are all examples of: A. deceptive advertising B. superiority advocacy C. puffery D. comparative advertising E. noncompetitive advertising
21-15
Chapter 21 - Regulation of Advertising and Promotion
57. (p. 709) Which of the following is the best example of advertising puffery? A. Lennox's claim that it manufactures the quietest home comfort system you can buy B. Harrah's claim that it has group size exhilaration C. the claim that Starbucks coffee has exceptional taste D. the claim that Sonicare, the sonic toothbrush, can give users whiter teeth in 28 days E. All of the above claims are using puffery.
58. (p. 709) An advertiser who says that his product is the "best," "greatest," etc. is using _____, which is a(n) ______ form of advertising. A. deception; legal B. a superlative; illegal C. puffery; illegal D. puffery; legal E. puffery, unethical
59. (p. 709) Which of the following is the best example of the use of puffery in advertising? A. Central Bank advertises free checking with a minimum balance of $1,000. B. Michelin advertises a 50,000-mile guarantee for its tires. C. Godiva claims that it makes the finest chocolates in the world. D. Head & Shoulders shampoo advertises that it has been proven to be effective in preventing dandruff. E. Federal Express advertises guaranteed overnight delivery service.
60. (p. 709) A prepackaged milkshake sold in convenience stores advertises that it has more chocolate-taste than shakes purchased at restaurants. This is an example of: A. an unfair claim B. puffery C. an illegal deception D. an affirmative disclosure E. an illegal comparative advertisement
21-16
Chapter 21 - Regulation of Advertising and Promotion
61. (p. 709) Research on the effects of puffery has shown that consumers: A. can clearly distinguish between puffery and factual based claims B. are as likely to believe puffery as factual-based claims C. do not believe puffery claims D. feel puffery claims are deceptive E. have no clear-cut reaction to puffery
62. (p. 709) Advertising or other sales presentations that praise the item to be sold with subjective opinions, superlatives or exaggerations and stating no specific facts is known as: A. illegal deception B. unfair advertising C. puffery D. an affirmative disclosure E. advertising embellishment
63. (p. 709-711) Which of the following statements about the use of puffery in advertising is true? A. Puffery is illegal. B. Puffery was recently banned in a 1996 revision of the Uniform Commercial Code. C. It is easy for consumers to distinguish between puffery and factual claims. D. Advertisers right to use puffery was supported in a 1996 revision of the Uniform Commercial Code. E. Puffery is only illegal if it eliminates a competitive advantage.
64. (p. 709) According to the FTC's 1983 policy on advertising deception, an advertisement: A. is deceptive if it has the tendency or capacity to deceive B. is deceptive if it misleads the ignorant, the unthinking, and the unsophisticated C. can be deceptive even if it causes no material injury D. is deceptive if it is misleading and causes material injury to a reasonable consumer E. is deceptive if it uses superlatives or exaggerations
21-17
Chapter 21 - Regulation of Advertising and Promotion
65. (p. 711) The key elements in the FTC's definition of deception are that the representation, omission, or practice must be likely to mislead the reasonable consumer and that it have: A. materiality B. selective exposure C. selective retention D. multiple interpretations E. peripheral importance
66. (p. 711) According to the FTC's definition of deception, a representation, omission, or practice has materiality if it: A. has been used in a one-sided advertising message B. can be decoded to have several different meanings C. is important to consumer and would likely have an effect on the purchase decision D. uses any superlatives E. can be substantiated
67. (p. 711) The Federal Trade Commission may require affirmative disclosure if: A. previous advertising has led to the formation of false beliefs about a product B. consumers need to know information about consequences, conditions, and limitations associated with the use of the product C. there has been material injury to reasonable consumers D. an advertisement has the potential to mislead an unsophisticated consumer E. the advertising relies on the use of puffery to make its point
68. (p. 711) In 1995, the Federal Trade Commission issued a complaint against the manufacturers of New Balance and Saucony athletic shoes based on their "Made in the USA" advertising claims. The FTC claimed the ads were misleading since imported soles and upper parts were used to make the shoes. These claims can be viewed as deceptive under the FTC's requirement of: A. cease-and-desist B. puffery C. affirmative disclosure D. unfairness E. advertising substantiation
21-18
Chapter 21 - Regulation of Advertising and Promotion
69. (p. 710) Papa John's ran ads using the tagline, "Better ingredients. Better pizza." The campaign continued with comparative advertising showing the superiority of Papa John's pizza to that made by the biggest chain (referring to Pizza Hut). Pizza Hut accused Papa John's of _____, and Papa John's replied that is was using _____. A. false advertising; puffery B. advertising substantiation; affirmative disclosure C. illegal puffery; legal puffery D. false advertising; advertising substantiation E. misleading advertising; affirmative disclosure See IMC Perspective 21-3.
70. (p. 711) Assume a homeopathic flu medicine advertises that one dose prevents users from catching the flu. However, the FTC has argued that the ads are deceptive since they fail to disclose that the product's directions indicate one dose must be taken daily throughout the flu season. This situation: A. is a clear example of deregulated advertising B. is an example of how advertising can be misleading or deceptive because of what is omitted rather than what is said in an ad C. is likely to lead to prosecution of this drug company under the Lanham Act D. could not be remedied by an affirmative disclosure requirement E. is a clear violation of the Robinson-Patman Act
71. (p. 712) The Federal Trade Commission requires advertising for any product that is sweetened with saccharin to contain a warning that saccharin may be hazardous to one's health. This requirement falls under the FTC's _____ requirement. A. misleading omission B. advertising substantiation C. affirmative disclosure D. cease-and-desist E. materiality
21-19
Chapter 21 - Regulation of Advertising and Promotion
72. (p. 712) The Federal Trade Commission's ______ program requires advertisers to have evidence in support of claims made with respect to safety, performance, efficacy or comparative prices. A. unfair advertising B. advertising substantiation C. affirmative disclosure D. self-regulation E. deceptive advertising
73. (p. 712) Under which of the following FTC programs might a firm be required to have product information verifying the veracity of its advertising claims before making any advertising claims about the product? A. corrective advertising B. implied uniqueness C. the Lanham Act D. affirmative disclosure E. advertising substantiation
74. (p. 712) Many advertisers oppose the advertising substantiation program of the FTC because: A. it is very expensive to document all of their claims B. most consumers would not be interested in the technical information used for substantiation C. most consumers do not have the knowledge or desire to understand substantiation D. advertisers may resort to puffery to avoid substantiating claims, which would result in less information for consumers E. of all of the above reasons
75. (p. 712) Critics of the FTC's ad substantiation program contend: A. ad substantiation has been proven unnecessary as long as the advertising industry is selfregulating B. ad substantiation is not needed because most advertisements make very legitimate claims C. ad substantiation will result in advertisers resorting to puffery to avoid the need for claim verification D. the burden of proof for advertising claims lies with the consumer, not the manufacturer E. none of the above is true
21-20
Chapter 21 - Regulation of Advertising and Promotion
76. (p. 713) A(n) _____ is an agreement to stop engaging in a particular practice for settlement purposes only and does not constitute an admission of guilt by the advertiser. A. cease-and-desist order B. consent order C. ad substantiation agreement D. affirmative disclosure order E. injunction
77. (p. 713) Which of the following statements about a consent order is true? A. The signing of a consent order is an admission of guilt. B. If an advertiser refuses to sign a consent order, the inquiry is handed to the U.S. Department of Justice. C. Most FTC inquiries are settled by consent order. D. A consent order prohibits an advertiser from making a specified advertising claim for 30 days. E. All of the above statements about a consent order are true.
78. (p. 713) Under the Wheeler-Lea Amendment, the Federal Trade Commission is empowered to stop an advertiser from making a specified claim within 30 days and refrain from doing so until a hearing is held. This is known as: A. a consent order B. injunctive power C. a cease-and-desist order D. corrective advertising E. advertising substantiation
79. (p. 713) Cease-and-desist orders: A. are used to regulate public service announcements B. are never violated C. are issued by the Federal Trade Commission D. were made legally binding by the Robinson-Patman Act E. are issued by the National Association of Attorneys General
21-21
Chapter 21 - Regulation of Advertising and Promotion
80. (p. 713) The FTC program that requires an advertiser who is found guilty of false or misleading advertising claims to run ads to rectify the situation is known as: A. the fairness doctrine B. ad substantiation C. an affirmative disclosure D. corrective advertising E. puffery
81. (p. 714) The origin of the Federal Trade Commission's corrective advertising program came from a deceptive advertising case involving: A. Listerine B. Ocean Spray Cranberry Juice C. Campbell Soup D. STP Corporation E. Profile bread
82. (p. 714) Under the FTC program of _____, Novartis Corporation was required to run advertising informing consumers that it could not substantiate its claim that Doan's pills were superior to other over-the-counter analgesics in treating back pain. The FTC wanted to make sure consumers were not under any false impression that Doan's was a superior medication. A. ad substantiation B. implied uniqueness C. puffery legitimization D. advertising deregulation E. corrective advertising
83. (p. 714) _____ is the most controversial of all the Federal Trade Commission's programs. A. Ad substantiation B. Implied uniqueness C. Puffery legitimization D. Advertising deregulation E. Corrective advertising
21-22
Chapter 21 - Regulation of Advertising and Promotion
84. (p. 716) Today, the Federal Trade Commission is: A. very active in regulating misleading advertising B. involved with preventing fraud through deceptive promotions C. concerned with privacy issues as they pertain to the Internet D. particularly watchful of advertising directed to the children and the elderly E. accurately described by all of the above
85. (p. 717) The _____ is a federal agency that was founded in 1934 to regulate broadcast communication that include the radio, television, telephone and telegraph industries. A. Federal Trade Commission B. Federal Communications Commission C. Fairness Doctrine D. U.S. Postal Service E. National Association of Broadcasters
86. (p. 718) Under the Children's Television Act,: A. advertising aimed at children was prohibited B. advertising on children's programs is limited to 12 minutes per hour on weekdays and 10.5 minutes per hour on weekends C. advertisers are required to present the opposing viewpoints on important issues affecting children's advertising D. limits on the amount of television advertising per hour targeted to children were eliminated E. the FCC was granted the right to fine advertisers who exceeded advertising limits as defined by the act
87. (p. 718) The Federal Communications Commission has recently become involved in issues affecting: A. publicity and public relations. B. the licensing of radio stations C. monitoring of descriptive terms that are often misused in broadcast advertising communications D. guaranteeing consumers' rights to privacy E. all of the above
21-23
Chapter 21 - Regulation of Advertising and Promotion
88. (p. 718) The _____ is the government agency that has authority over the labeling, packaging, branding, ingredient listing and advertising of packaged foods and drug products. A. Federal Trade Commission B. Federal Communications Commission C. U. S. Postal Service D. Bureau of Alcohol, Tobacco, and Firearms E. Food and Drug Administration
89. (p. 719) In 1996, President Clinton signed an executive order declaring that nicotine was an addictive drug and gave the _____ broad jurisdiction to regulate the advertising of cigarettes and smokeless tobacco. A. U.S. Postal Service B. Federal Trade Commission C. Bureau of Alcohol, Tobacco and Firearms D. Food and Drug Administration E. The Tobacco Institute
90. (p. 719) The ____ has been heavily involved in the regulation of advertising of prescription drugs. A. Better Business Bureau B. Food and Drug Administration C. U.S. Postal Service D. U.S. Department of Welfare E. Federal Communications Commission
91. (p. 720) Direct-response advertisers that use the U.S. mail to deceive consumers by marketing get-rich-quick schemes fall under the jurisdiction of the: A. U.S. Postal Service B. Federal Communications Commission C. Bureau of Alcohol, Tobacco and Firearms D. Food and Drug Administration E. U.S. Department of Welfare
21-24
Chapter 21 - Regulation of Advertising and Promotion
92. (p. 720) The _____ is the governmental agency that regulates and controls the advertising of beer, liquor, and cigarettes. A. Federal Communications Commission B. Food and Drug Administration C. Bureau of Alcohol, Tobacco and Firearms D. Federal Trade Commission E. National Association of Attorneys General
93. (p. 720) The _____ is a government regulation that is increasingly being used by companies to sue competitors for false or misleading advertising claims. A. FTC Act B. Wheeler Lea Amendment C. Lanham Act D. Robinson Patman Act E. Clayton Antitrust Act
94. (p. 720) Which type of advertising claim is most likely to result in one company suing another under the Lanham Act? A. humorous appeals B. comparative advertising claims C. slice-of-life executions D. puffery claims E. fear appeals
95. (p. 722) Pizza Hut launched a civil suit against Papa John's pizza claiming false and misleading advertising made Pizza Hut's pizza look inferior to Papa John's. The _____ was the federal law that made this suit possible. A. FTC Act B. Wheeler Lea Amendment C. Lanham Act D. Robinson Patman Act E. Clayton Antitrust Act
21-25
Chapter 21 - Regulation of Advertising and Promotion
96. (p. 722) If a firm advertises a product that is not in the category covered by the FTC ad substantiation program, the advertiser: A. does not have to be concerned with substantiation of ad claims B. cannot be required to engage in corrective advertising C. may be vulnerable to a claim of false advertising from competitors under the Robinson Patman Act D. may be vulnerable to a challenge of their claim from competitors under the Lanham Act E. may have to engage in corrective advertising under the Lanham Act
97. (p. 722) Acme Tire is developing an advertising campaign that will claim cars with its new RX model stop 25 percent faster on wet pavement compared to other brands of tires. The company must conduct careful studies to provide support for the claim because: A. Acme wants to avoid any illegal nonspecific comparative advertising B. Acme's competitors may sue the company under the Lanham Act if it cannot substantiate its claims C. the Better Business Bureau may sue Acme if it cannot substantiate its claims D. the FTC may charge Acme with using puffery, which is an illegal form of advertising E. of none of the above reasons
98. (p. 722) Texaco claimed its ClearSystem gasoline cleaned car engines, boosted mileage, and reduced pollution emissions better than any other gas. Chevron contended its products were just as good as Texaco's. The _____ law made it easier for Chevron to sue Texaco for this perceived misrepresentation. A. Wheeler-Lea Amendment B. FTC Improvements Act C. Printer's Ink Model D. Trademark Revision Act of 1988 E. Competitor Trademark Act
21-26
Chapter 21 - Regulation of Advertising and Promotion
99. (p. 722) The _____ closed a loophole in the Lanham Act and facilitated the ease with which one company can sue a competitor for making false advertising claims about the first company's products. A. Wheeler-Lea Amendment B. FTC Improvements Act C. Printer's Ink Model D. Trademark Revision Act of 1988 E. Competitor Trademark Act
100. (p. 722) The _____ gives one company the right and ability to challenge another's advertising. This act is one of the most significant developments in advertising regulation in recent years. A. FTC Act B. Robinson Patman Act C. Trademark Revision Act of 1988 D. Lanham Act E. Wheeler Lea Act
101. (p. 723) Which of the following is used by many states as a model for their advertising regulations? A. the Printer's Ink Statutes B. the Better Business Bureau guidelines C. the Wheeler-Lea Amendment D. regulations developed by a consortium of trade associations E. U.S. Supreme Court rulings
102. (p. 723) Various states have become more involved in the regulation of national advertising during the 1980's through the efforts of the: A. Federal Trade Commission B. Food and Drug Administration C. National Association of Attorneys General D. NAD/NARB E. American Bar Association
21-27
Chapter 21 - Regulation of Advertising and Promotion
103. (p. 723) Which of the following statements about state regulation of advertising is true? A. Many states have adopted laws similar to those of the Federal Trade Commission as a basis for dealing with false and misleading advertising. B. As the federal government became less involved in the regulation of advertising during the 1980s, many states became more active in enforcing their laws regarding false or misleading advertising. C. Many states have prosecuted national advertisers for misleading or deceptive advertising in recent years. D. Many states have modeled their laws on Printers Ink statutes written in 1911. E. All of the above statements about state regulation of advertising are true.
104. (p. 724) Many areas of consumer and trade promotions are regulated by the: A. Federal Communications Commission B. Food and Drug Administration C. Federal Trade Commission D. U.S. Justice Department E. Promotional Products Marketing Association
105. (p. 724) Champion Sportswear has developed a "Super Bowl Sweepstakes" that it plans to promote. To avoid having this promotion classified as a lottery, Champion should: A. require that consumers make a purchase of one of their products as a condition for entering the sweepstakes B. offer only merchandise and no cash as part of the sweepstakes prizes C. not require that consumers make a purchase of 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. do none of the above
106. (p. 724) 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. exchange B. consideration C. equity D. enticement E. remuneration
21-28
Chapter 21 - Regulation of Advertising and Promotion
107. (p. 724) A promotion such as a contest or sweepstakes can avoid being considered a lottery or form of gambling by: A. giving away all of the prizes B. providing full disclosure C. not requiring consumers to make a purchase as a condition for entering D. publishing the odds of winning E. doing any or all of the above.
108. (p. 724) In 1995, a number of states passed or tightened laws requiring full disclosure of rules, odds, and retail value of prizes associated with: A. on-pack premiums B. trade allowances C. couponing D. contests and sweepstakes E. event sponsorship
109. (p. 725) A study by the National Advertising Division's Children's Advertising Review Unit found that the most prevalent violation of its voluntary advertising guidelines occurred with _____ aimed at children. A. rebates and refunds B. premiums C. trade allowances D. discounts E. contests and sweepstakes
110. (p. 725) Marketers use of trade allowances is controlled by the _____, which prohibits price discrimination. A. FTC Act B. Lanham Act C. Robinson Patman Act D. FDA Act E. Wheeler-Lea Amendment
21-29
Chapter 21 - Regulation of Advertising and Promotion
111. (p. 725) The field of direct marketing is subject to rules, guidelines, and standards issued by: A. the U.S. Postal Service B. the Federal Communications Commission C. the Direct Selling Association D. the Federal Trade Commission E. all of the above
112. (p. 726) Under the _____ passed in 1991, telemarketers must follow a complex set of rules developed by the Federal Communications Commission. A. Federal Trade Commission Act B. Robinson Patman Act C. FCC Act D. Trademark Improvements Act E. Telephone Consumer Protection Act
113. (p. 726) The Federal Trade Commission and U.S. Postal Service have laws that govern the use of a(n) _____, whereby a company proposes to send merchandise to consumers and expects payment unless a rejection or cancellation notice is sent by the consumer. A. unsolicited order B. negative option C. contradictory option D. false substitution E. unsubstantiated order
114. (p. 727) Unsolicited junk fax ads and telemarketing calls to consumers who do not want to be called are banned under the: A. Direct Marketing Reform Act B. Telephone Consumer Protection Act of 1991 C. Direct Selling Association Act D. Lanham Act E. Federal Communication Reform Act
21-30
Chapter 21 - Regulation of Advertising and Promotion
115. (p. 728) Which of the following statements accurately describes how marketing on the Internet is regulated? A. The Federal Trade Commission closely regulates all advertising claims made on the Internet. B. Database management is the only area of Internet marketing that has caused the FTC to examine the need for Internet marketing regulation. C. Voluntary industry codes are in place and have eliminated any concerns that consumers should have about Internet marketing. D. At the present time, states are providing the regulatory bodies for monitoring Internet marketing. E. Currently marketing on the Internet is not subject to any formal government regulation.
116. (p. 728) Major areas of concern with regard to Internet marketing are: A. Internet contests and sweepstakes and unsubstantiated advertising claims B. SPAM and illegal sales promotions C. privacy issues, profiling, and online marketing to children D. the lack of affirmative disclosures and poor database management E. illegal sales promotions and privacy issues
117. (p. 728) The Network Advertising Initiative (NAI) is a(n): A. self-regulatory code developed by companies that collect Internet usage data B. advisory board for the NAD C. industry-wide ban on telemarketing calls after midnight and before 6 a.m. D. industry-developed code to monitor advertising to children E. tobacco-industry group that wants to modify regulations against advertising of its products
118. (p. 729) The Children's Online Privacy Act of 1998: A. is enforced by the Network Advertising Initiative B. monitors the type of e-mail sent to teenagers and children C. places tight restrictions on collecting information from children via the Internet D. requires all schools to use software to control students' access to certain Web sites E. was passed but never implemented
21-31
Chapter 21 - Regulation of Advertising and Promotion
119. (p. 729) Spammers have been able to stay ahead of law enforcement by: A. ignoring enforcement by the Network Advertising Initiative B. monitoring the type of e-mail sent to complaint agencies C. operating offshore and constantly moving the Internet hosting source D. requiring Spam to be included in school lunch programs E. lobbying to Congress
21-32
Chapter 22 - Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion
Chapter 22 Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion
Multiple Choice Questions 1. (p. 736) The Children's Food and Beverage Advertising Initiative is: A. a government-funded research initiative to assess the causes of obesity B. an attempt to censor food marketers C. a voluntary industry self-regulation program. D. an effort by the Center for Science in the Public Interest to invest in food company advertising E. all of the above See opening vignette.
2. (p. 736) Food industry leaders do not think they should take the blame for obesity among today's children, arguing for: A. physical activity B. dietary balance and moderation C. more persona responsibility D. nutritional education E. all of the above See opening vignette.
22-1
Chapter 22 - Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion
3. (p. 737) Proponents of advertising argue that: A. advertising provides consumers with information about products and services B. advertising encourages consumers to improve their standards of living, which leads to economic growth C. advertising is the lifeblood of business D. free market systems are based on competition, which revolves around the information provided by advertising E. advertising is all of the above
22-2
Chapter 22 - Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion
4. (p. 737) Proponents of advertising contend advertising: A. produces jobs B. enables new firms to enter the market C. delivers information to consumers D. encourages consumers to improve their standards of living E. does all of the above
5. (p. 737) Critics of advertising contend: A. the amount of advertising directed at consumers is excessive B. advertising exploits consumers C. advertising has a negative impact on the economic system D. advertising makes consumers want products they don't really need E. all of the above are true
6. (p. 737) Advertising is the target of controversy and criticism because of: A. its high visibility and pervasiveness B. the ways it influences society C. the amount of money invested in it D. the methods and techniques used by advertisers E. all of the above
7. (p. 738) _____ are moral principles and values that govern the actions and decisions of an individual or group. A. Regulations B. Guidelines C. Ethics D. Concerns E. Social criticisms
22-3
Chapter 22 - Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion
8. (p. 738) To get its new low-carbohydrate bread sampled, its manufacturer set up taste testing booths where it gave consumers a slice of bread spread with peanut butter, which is high in carbohydrates. In reported interviews, the participants agreed the bread and peanut butter tasted great. Although this method of sampling is acceptable from a(n) _____ perspective, many people might consider it to be wrong from a(n) _____ perspective because (1) people who sampled the bread did not consume fewer carbohydrates and (2) the peanut butter masked the taste of the bread. A. legal; ethical B. ethical; legal C. legal; economic D. economic; legal E. ethical; economic
9. (p. 739) Which of the following is NOT a social criticism of advertising? A. Advertising is offensive and distasteful. B. Advertising exploits children. C. Advertising perpetuates stereotypes. D. Advertising is untruthful and deceptive. E. Advertising increases product costs and reduces competition.
10. (p. 739) Which of the following expresses a valid conclusion about the truthfulness of advertising? A. It is difficult to determine what constitutes untruthful or misleading advertising since deception can occur in subtle ways. B. One of the major complaints about advertising is that many ads are misleading. C. Most advertisers do not intentionally mislead or deceive consumers, but some will test the limits of various rules and regulations to gain a competitive advantage. D. National advertisers are not likely to risk consumer trust and confidence by intentionally deceiving them. E. All of the above statements express a valid conclusion about the truthfulness of advertising.
22-4
Chapter 22 - Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion
11. (p. 740) Which of the following expresses a valid conclusion about the truthfulness of advertising? A. It can be difficult to determine if an ad is misleading consumers since deception is partly dependent on how a consumer perceives an advertising message. B. Even though most advertisers intend to deliberately mislead consumers, they often present only information that is favorable to their position. C. Many critics of advertising feel advertising should include puffery or embellished messages. D. Many critics of adverting do not believe advertising can or should be informative. E. All of the above statements express a valid conclusion about the truthfulness of advertising.
12. (p. 740) Novartis Corporation spent millions of advertising dollars informing consumers that Doan's pills were superior to other over-the-counter analgesics in treating back pain even though it contained the same ingredients as other over-the-counter analgesics. Critics of advertising called these ads: A. unsynergistic B. unfair C. deceptive D. offensive and in bad taste E. asocial
13. (p. 741) In the 1950s and 1960s, many auto shops gave away promotional calendars to customers. The calendars typically showed some buxom beauty, scantily clothed and posed in some atypical position in or on an automobile. Critics of advertising today would call such calendars: A. untruthful B. unfair C. deceptive D. offensive and in bad taste E. asocial
22-5
Chapter 22 - Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion
14. (p. 742) Which of the following statements describes how condoms are advertised? A. Condom manufacturers are not permitted to use any of the traditional media vehicles available to other product manufacturers. 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. No condom ads have ever been run on television. E. None of the above describes how condoms are advertised.
15. (p. 742) Which of the following ads would likely be considered irritating or distasteful to many consumers? A. ads for tampons B. ads stating you won't have any friends unless you use a particular brand of deodorant C. ads stating your home will be robbed unless you have a particular kind of security system D. ads in support of the National Rifle Association E. all of the above
16. (p. 742) Advertisers continue to use sexual appeals to advertise products such as beer, cigarettes and cosmetics: A. to break through the advertising clutter and draw attention to their brands B. because they are much more effective at creating sales than any other kinds of appeals C. because these types of appeals are very acceptable to most people including women D. because most TV shows contain sex and violence, which suggests these types of appeals will be popular with consumers E. to support a positioning strategy that is aimed at creating brand recognition as opposed to brand purchase
17. (p. 742) Which of the following statements describes consumers' feelings about advertising they perceive to be irritating or distasteful? A. Consumers can be offended by the mere fact that certain products are even advertised. B. A study of prime time commercials found a strong product class effect with respect to the type of ads consumers perceive as irritating or distasteful. C. Consumers tend to dislike ads that exploit consumer anxieties. D. Ads using sexual appeals or nudity offend many consumers. E. All of the above describe consumers' feeling about ads they perceive to be irritating or distasteful.
22-6
Chapter 22 - Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion
18. (p. 742) Which of the following statements is a valid argument as to why the television networks might have to scrutinize commercials more carefully than their programs? A. Television networks have to be wary of potential subliminal advertising. B. The viewing public can control the television programs they choose to watch, but they cannot control what commercials they will see in these programs. C. Television programs are not nearly as violent and explicit as most commercials. D. Television commercials are usually informative in nature and do not contain any controversial language or images. E. The public has to be protected from any unauthorized sexually explicit or overly violent commercials.
19. (p. 742) The type of advertising appeals that has received the most criticism for being in poor taste is: A. personal computer ads targeted at children B. fear appeals used to sell shampoos and deodorants C. humorous appeals used to make fun of people who are socially inept D. ads using sex and/or nudity E. unfair comparative ads
20. (p. 742) Which of the following describes the use of sexual appeals in advertising? A. Sexual appeals are often criticized because they are not even relevant or appropriate for the product being advertised. B. Sexual appeals are often criticized because they often contain nudity or use sexually suggestive ads. C. Sexual appeals are often criticized because they are demeaning to women. D. Some advertisers feel TV networks have a double standard when it comes to sexually oriented advertising since they scrutinize commercials carefully but not their programs. E. All of the above describe the use of sexual appeals in advertising.
21. (p. 743) Which of the following describes the use of sexual appeals in advertising? A. Sexual appeals are typically relevant and appropriate for the product being advertised. B. Sexual appeals are often criticized because they often contain nudity or use sexually suggestive ads. C. Sexual appeals to not demean men or women. D. Of all the types of advertising appeals, sexual appeals have received the least criticism. E. All of the above describe the use of sexual appeals in advertising.
22-7
Chapter 22 - Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion
22. (p. 743) A recent trend in advertising is _____ in which marketers use nudity, sexual suggestiveness, or other startling images to get consumers' attention. A. high-intensity promotion B. "in-your-face" advertising C. shock advertising D. provocative image advertising E. guerrilla marketing
23. (p. 743) Advertisers use shock advertising to: A. test their First Amendment rights B. get their ads noticed in the midst of all the clutter that is found in the media C. make a statement against self-regulation D. test the ethics of the advertising industry E. act as advocacy ads for company management
24. (p. 745) Young children may be especially vulnerable to advertising because: A. they lack the experience and knowledge required to understand and evaluate persuasive messages B. they cannot distinguish between reality and fantasy C. they often have trouble differentiating between commercials and programs D. they do not always perceive the selling intent of commercials E. of all of the above reasons
25. (p. 745) Critics of advertising aimed at children use all of the following arguments to explain why it is wrong EXCEPT: A. preschool children cannot discriminate between commercials and television programs B. children lack an understanding of how advertising works and thus cannot effectively use cognitive defenses against it C. children do not perceive the selling or persuasive intent of commercials D. advertising is a part of life, and children must learn to deal with it as part of the consumer socialization process E. children cannot distinguish between reality and fantasy
22-8
Chapter 22 - Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion
26. (p. 745) The consumer socialization process: A. refers to how easily a consumer moves from the need recognition stage to the purchase stage of the buying process B. explains why consumers will never completely abandon department store shopping for Internet shopping C. explains how marketers engage in relationship marketing D. is the acquiring of skills needed to function in the marketplace E. refers to how consumers satisfy their need to belong
27. (p. 745) Acquiring the skills needed to function in the marketplace is the text's definition of the _____ process. A. consumer socialization B. consumer education C. caveat emptor D. Protestant ethic E. needs-focus
28. (p. 745) From an advertising perspective, why might various regulatory and consumer interest groups be opposed to programs based on commercial characters such as Care Bears or Lara Croft, Tomb Raider? A. These shows are really 30-minute "program length" commercials designed to sell products rather than entertain. B. Children will not understand the morale of the stories in these shows. C. They are too violent for children. D. There are too many commercial slots in these shows. E. There is no reason to oppose them.
22-9
Chapter 22 - Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion
29. (p. 745) Opponents of the 1979 Federal Trade Commission proposal to restrict advertising to children based their opposition on: A. the fact greater knowledge of the marketplace gained through advertising creates a more skeptical buyer B. the fact parents should help children interpret advertising and make the ultimate decision to purchase a product for their children C. studies that have shown children are capable of perceiving the persuasive intent of advertising D. the fact manufacturers of products targeted to children have a First Amendment right to advertise E. all of the above
30. (p. 745) Which of the following statements describe advertising directed toward children? A. In 1979 the Federal Trade Commission enacted a very stringent set of guidelines that are used to regulate children's advertising. B. Children's advertising is subject to strict self-regulatory guidelines from various industry and media organizations. C. There are no limitations on the amount of commercial time permitted in children's television programs. D. Research has shown consumers from households with children have very positive attitude toward children's advertising. E. The consumer socialization process must take place before children can be targeted.
31. (p. 746) Which method do advertisers use to deal with the censors who work for the four major networks and reject commercials that they decide are inappropriate? A. The advertisers ask the NAD to serve as arbiters. B. The advertisers place their commercials on affiliate stations and cable stations. C. The advertisers evoke the First Amendment. D. The advertisers can offer to pay more money for ad time. E. There is nothing the advertisers can do except reshoot the commercial and remove the offending material. See Ethical Perspective 22-2.
22-10
Chapter 22 - Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion
32. (p. 747) The Children's Advertising Review Unit: A. is a division of the Federal Trade Commission B. was proposed by President Clinton but defeated by Congress C. has strict regulatory guidelines regarding the type of appeals and product presentations that can be made to children D. is a division of the PTA E. is a litigation arm of the America Civil Liberties Union (ACLU) for children
33. (p. 747) The 1979 Federal Trade Commission proposal to change regulations governing children's advertising was: A. accepted and resulted in many new regulations for children's advertising B. accepted but has had little impact on children's advertising C. defeated and since then there has been little concern over children's advertising D. defeated but concern over children's advertising remains strong among parent and consumer groups E. recently put before Congress again for consideration
34. (p. 747) The ______ was passed in 1990 and limits the amount of commercial time permitted in children's programming. A. Lanham Act B. Children's Advertising Review Unit Act C. Children's Television Act D. FTC Act E. Federal Communications Commission Act
35. (p. 747) Before disbanding in 1992 the _____, an activist group, played an important role in getting Congress to approve the Children's Television Act in 1990. A. Children's Advertising Review Unit B. Action for Children's Advertising C. Fairness in Media D. Children's Advertising Coalition E. NOW
22-11
Chapter 22 - Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion
36. (p. 748) In 2004, the American Psychological Association (APA) issued a report critical of increased commercialization of childhood. The APA found that the _____________ is particularly effective, and thus potentially harmful, means of sending advertising messages to children. A. television B. advertainment C. Internet D. billboard E. radio
37. (p. 748) Which of the following trends would suggest advertising might play a major role in influencing and transmitting social values? A. the weakening of institutions such as the family, religion and education over the past several generations B. the proliferation of new media vehicles C. a strengthening of traditional authority and a renewed emphasis of family values D. the increase in the number of dual-family incomes E. all of the above
38. (p. 749) By creating needs rather than merely fulfilling them, by surrounding consumers with images of the good life, and by showing products as symbols of status and success advertising can create: A. ethnocentricity B. consumer socialization C. materialism D. stereotypes E. informative ads
39. (p. 749) Critics of advertising claim it can have a _____ effect on consumer values by encouraging _____, which is a preoccupation with accumulating possessions rather than intellectual or spiritual concerns. A. peremptory; the Protestant ethic B. positive; corporeality C. negative; cocooning D. negative; materialism E. detrimental; stereotyping
22-12
Chapter 22 - Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion
40. (p. 749) _____ is defined as a personal value orientation that stresses hard work and individual effort and initiative and views the accumulation of material possessions as evidence of success. A. Materialism B. The Protestant ethic C. Culturalism D. Stereotyping E. Cocooning
41. (p. 750) According to economist John Kenneth Galbraith, advertising: A. encourages more consumption than would take place without advertising B. has little effect on total consumption C. eventually will result in lower quality standards D. greatly increases consumer prices E. is unnecessary
42. (p. 750) According to those who believe advertising does NOT have an adverse effect on consumer values, advertising: A. is a major determinant of society's taste and values B. creates the Protestant ethic C. is solely accountable for the increase in materialism due to its nature and power D. is merely a reflection of society's tastes and values E. cannot create needs but only exploit existing ones
43. (p. 750) Critics who argue advertising makes people buy things they don't really need would probably be opposed to all of the following forms of advertising EXCEPT: A. ads that use fear appeals to create anxiety among consumers B. advertising that encourages materialism C. advertising on objective factors such as price, performance, and good or service characteristics D. ads that uses fear of social rejection to sell a product E. advertising that encourages consumption
22-13
Chapter 22 - Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion
44. (p. 750) For which of the following products might one argue that advertising has created needs rather than responded to them? A. automobiles B. milk C. canned soup D. designer jeans E. calculators
45. (p. 751) Critics of advertising claim advertising makes consumers buy things they do not need use, but its proponents argue that: A. this charge attributes too much power to the power of advertising to make consumers do things against their will B. this charge ignores the fact consumers have the freedom to make up their own minds and make their own choices when confronted with advertising C. if this charge is correct, products with multimillion-dollar advertising budgets should not fail--but the reality is many do D. because many of our lower level needs are satisfied, it is natural that consumers might buy products that are advertised as appealing to the satisfaction of higher order needs E. all of the above are valid arguments against the charge that advertising makes consumers buy things they do not need
46. (p. 751) Advertisers point to the fact that products supported by multimillion-dollar advertising campaigns often fail in the marketplace as evidence that: A. consumers have the freedom to make choices B. advertisers cannot manipulate people to buy what they do not want or need C. it is extremely difficult to make consumers purchase something they do not see having a personal benefit. D. consumers ignore ads E. all of the above
22-14
Chapter 22 - Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion
47. (p. 752) Stereotypical portrayals of adult women in American television and print advertising emphasize their: A. activism and autonomy B. power C. passivity and deference D. ability to achieve under any circumstances E. intelligence and achievement
48. (p. 752) Which of the following statements describes how advertising portrays women? A. Advertising is often criticized for portraying women as sexual objects. B. While sexism and stereotyping of women still exist, advertising's portrayal of women has improved in recent years. C. Many advertisers depict women in a diversity of roles since their place in society has changed in recent years. D. Stereotypical portrayals of women show them as lacking intelligence and credibility. E. All of the above statements describe how advertising portrays women.
49. (p. 752) Groups such as the National Organization for Women (NOW) are critical of advertising that: A. portrays women in traditional sexist roles B. contributes to the problem of violence against women C. is insulting to women D. stereotypes women E. does any of the above
50. (p. 752) Which of the following statements describes advertising targeted to AfricanAmericans and Hispanics? A. For many years, advertisers ignored African-Americans and Hispanics as identifiable subcultures and viable markets. B. Over the past two decades, marketing and advertising programs targeted at AfricanAmerican consumers have decreased. C. Advertising has never used stereotypical Hispanics or African-Americans. D. Over the past two decades, the number of Hispanics used in advertising has increased significantly. E. All of the above statements accurately describe advertising targeted to African-Americans and Hispanics.
22-15
Chapter 22 - Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion
51. (p. 753) Which of the following statements describes the portrayal of African-Americans and Hispanics in advertising? A. The use of African-Americans in advertising has increased and the depiction of their social and role status has improved. B. The use of African-Americans in advertising has increased, but their depictions often emphasize stereotypical roles. C. The use of Hispanics in advertising has increased dramatically. D. The use of Hispanics in television advertising has increased, but the manner in which they are depicted has worsened. E. All of the above statements describe the portrayal of African-Americans and Hispanics in advertising.
52. (p. 754) Asian-Americans are: A. not targeted by ad campaigns B. underrepresented in advertisements in terms of their proportion in the U.S. C. portrayed in ads as a subculture that values fun over work D. less likely than any other minority group to appear in U.S. ads E. accurately described by all of the above
53. (p. 755) One of the reasons many companies are struggling with their multicultural marketing efforts is: A. multiculturals are not targeted by ad campaigns B. the lack of diversity among their employees and ad agencies C. subcultures that value fun over work are hard to target D. multicultural groups mostly have similar tastes and preferences as non-multicultural groups E. the small size of multicultural markets does not justify the expense
54. (p. 755) It has been argued that marketing and advertising should embrace multicultural marketing and diversity because these firms: A. have abundant resources and can afford to target infinite numbers of niche markets B. the lack of diversity among their employees and ad agencies and therefore should compensate by expanding ethnocentrism C. operate on the cutting edge of social evolution D. government regulations require them to do so E. will gain greater respect among industry members by doing so
22-16
Chapter 22 - Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion
55. (p. 756) Economic censorship is when the media avoid certain topics or present biased coverage in response to concerns or demands of advertisers. Critics of advertising argue that it occurs because: A. the First Amendment guarantees advertisers freedom of speech B. advertising plays such a large role in financing the media C. most consumers distrust the media D. most consumers distrust advertising E. of all of the above
56. (p. 756) Pacific Auto World decided to stop advertising on a local television station that ran a story on its evening news that was critical of the high pressure tactics used by the dealer's salespeople. This is an example of an advertiser trying to: A. control the national media's coverage of the news B. control the local media's coverage of the news which is form of economic censorship C. control the content of television programming D. make consumers buy things they don't really need which is a form of economic censorship E. raise the prices of products through advertising
57. (p. 756) A large cosmetics company cancelled all of its advertising in a women's magazine in response to an article in the magazine that claimed this company tested its cosmetics on animals even though later in the article, this claim was refuted. This is an example of: A. the fact that advertisers need the media more than the media need individual advertisers B. an attempt at economic censorship by the cosmetic company that cancelled its ads C. a violation of the advertiser's First Amendment rights to free speech D. the use of a fear appeal by an advertiser E. none of the above
58. (p. 757) Which of the following media would be most vulnerable to influence and pressure from advertisers on the type of stories the medium covers? A. a major television network such as CBS B. a major newspaper in the maturity stage of its product life cycle such as the LA Times C. a major magazine in the maturity stage of its product life cycle such as Time or Newsweek D. a newspaper or magazine that is in the pioneering stage of its product life cycle and that receives a high amount of advertising from a particular industry E. all are equally vulnerable
22-17
Chapter 22 - Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion
59. (p. 757) Which of the following is an argument that supports the charge that advertisers can and do control the media? A. Advertisers need the media more than the media needs any individual advertisers. B. The media are very dependent on advertising as the source of their income. C. Many media have a broad base of advertiser support and can afford to lose advertisers attempting to exert control over them. D. The media need the trust and respect of the public. E. There is no such argument; it is in the best self-interest of the media not to be influenced or controlled by the advertiser.
60. (p. 757) Advertisers might exert influence on the media by: A. exerting control over the editorial content of magazines B. exerting pressure on the media to limit their coverage of a controversial story that might reflect negatively on a company C. using economic censorship D. influencing the program content on television E. doing all of the above
61. (p. 758) When a newspaper editor talks about "The Wall," he or she is referring to: A. the difference between veteran and cub reporters B. the formal separation of the newspaper's news staff and business department C. how difficult it is to get interviews with certain celebrities D. the separation of classified advertising from the other advertising that commonly appear in newspapers E. the lowest possible ad placement rate
62. (p. 758) Magazine and newspaper publishers have traditionally argued that they keep advertisers from influencing the editorial content of their publications by: A. separating editorial and advertising offices B. barring the advertising sales force from reading articles before they are published C. prohibiting editorial employees from participating in advertising sales calls D. refusing to give favorable editorial consideration to a company simply because it advertises in their publication E. doing all of the above
22-18
Chapter 22 - Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion
63. (p. 758) Which of the following is an argument against the charge that advertisers control the media? A. It is in the best self-interest of the media not to be influenced too much by advertisers. B. Advertisers need the media more than the media needs any individual advertiser. C. Many media have a broad base of advertiser support and can afford to lose individual advertisers who attempt to exert control over them. D. To retain public confidence, the media must report the news fairly without showing any bias or attempt to avoid controversial topics. E. All of the above are arguments against the charge that advertisers control the media.
64. (p. 758) Which of the following is an argument against the charge that advertisers control the media? A. The most effective strategy for media is to allow itself to be influenced by advertisers. B. The media needs advertisers more than any individual advertisers need the media. C. Many media have a narrow base of advertiser support and cannot afford to lose advertisers who attempt to exert control over them. D. To retain public confidence, the media must report the news fairly without showing any bias or attempt to avoid controversial topics. E. All of the above are arguments against the charge that advertisers control the media.
65. (p. 759) Which of the following alternatives to an advertiser-supported media system would run counter to most Americans' desire for freedom of the press? A. a system supported by higher subscription rates for newspapers and magazines B. a pay-per-view television system C. government-sponsored media D. a monthly fee for a preset number of television viewing hours E. none of the above
66. (p. 760) Which of the following statements does NOT describe an economic defense for advertising? A. Advertising leads to an increased standard of living. B. Advertising stimulates new product development. C. Advertising provides useful information for buying decisions. D. Advertising adds to the cost of products. E. Advertising leads to economies of scale in production.
22-19
Chapter 22 - Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion
67. (p. 760) Economists argue advertising can have a negative effect on consumer choice by: A. using market aggregation B. reducing the opportunities for new products to be introduced C. enabling companies to differentiate their products and services, charge higher prices, and achieve a dominant market position D. creating brand monopolies E. doing all of the above
68. (p. 760) Which of the following statements can be used to refute the argument that advertising reduces the number of choices available to consumers? A. Advertising can be used to create and maintain brand loyalty for dominant brands. B. Dominant brands can afford to spend more on advertising and that makes it difficult for smaller brands to compete against them. C. Heavily advertised brands dominate the market in certain product categories such as soft drinks, beer, and cereal. D. Advertising can be used to inform consumers of new brands and offer them as an alternative to existing brands. E. All of the above refute the argument that advertising reduces the number of choices available to consumers.
69. (p. 760) A good example of a relatively homogeneous product, which through advertising has achieved perceived brand differentiation is: A. Bayer aspirin B. Rolex watches C. Rolls Royce automobiles D. umbrellas E. concrete blocks
70. (p. 761) Dove's "Real Beauty" campaign used a tagline stating: A. "Talk to your daughter before the beauty industry does" B. "Beauty is in the eye of the beholder" C. "First there was beauty, then the beast" D. "Real beauty is the real thing" E. "Age before beauty" See Ethical Perspective 22-4.
22-20
Chapter 22 - Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion
71. (p. 761) Some critics of Dove's "Real Beauty" campaign suggest the company's message is: A. self-censorship by the corporation since it leads to reduced bonds between the consumers and their products B. corrupting children by portraying beauty as an international commodity C. a contribution to social change D. a contradiction since it suggests you need Dove products to be beautiful E. self-defeating since it has resulted in declining sales Ethical Perspective 22-4.
72. (p. 762) A situation where a company creates conditions making it difficult for other firms to enter a market is known as: A. a barrier to entry B. economies of scale C. differentiation D. market dominance E. a market blockade
73. (p. 762) Some economists argue the reason Nike has such a high market share in the athletic shoe industry is because the company spends much more on media advertising and for endorsement contracts than other shoe manufacturers. This makes it difficult for new companies to enter the industry and compete against Nike because it has created: A. economies of scale B. barriers to entry C. economic censorship D. unfair competition E. high market share
22-21
Chapter 22 - Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion
74. (p. 762) Procter & Gamble spends over $2 billion annually on advertising for its various consumer products and can make large media purchases at rates lower than its smaller competitors. This is an example of how a large advertiser can achieve a competitive advantage based on: A. differentiation B. economies of scale C. economic censorship D. discrimination E. market aggrandizement
75. (p. 762) Marketers that argue advertising is NOT a barrier to market entry contend: A. large volumes of advertising are necessary to compete in many industries B. there are economies of scale in advertising C. advertising is only one factor contributing to the large scale effects which are the fundamental deterrent to market entry D. in the cereal industry, profits are the highest among the heaviest advertisers E. there is no relationship between intensity of advertising and market share
76. (p. 762) Many economists argue advertising can have a detrimental effect on competition by: A. creating barriers to entry that results in less competition and higher prices B. allowing unfair comparative advertising C. minimizing the importance of pricing and distribution strategy D. allowing products like Hershey chocolate bar to dominate their product category E. lessening the importance of good budgeting strategies
77. (p. 763) For many years Rolex watches and Colt firearms spent very little money on advertising yet were successful brands. The success of these products can be interpreted as evidence that: A. product quality and image are important determinants of success B. advertising increases product costs and prices C. advertising is a barrier to entry D. advertising is never really needed for a brand to be successful E. luck plays a major role in the success of a product
22-22
Chapter 22 - Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion
78. (p. 762-763) Advertising can have a positive effect on competition by: A. assisting new products in the market by making it possible for them to communicate the features and benefits of their products to consumers B. serving as an entry barrier to foreign competitors C. making it easier for small companies to compete against firms with large advertising budgets D. limiting the number of new product introductions E. creating economies of scale for both small and large advertisers
79. (p. 763) Which of the following statements show how advertising can increase the cost of a product? A. Advertising facilitates economies of scale. B. Advertising increases the retail turnover rate of products making small markups possible. C. Advertising creates added value to a product through differentiation and makes consumers more price inelastic. D. Advertising encourages comparison shopping between brands. E. Advertising can make a market more competitive.
80. (p. 763) Consumer advocates argue that: A. money spent on advertising is an expense that must be covered and is generally passed on to the consumer B. consumers are only willing to purchase heavily advertised brands and thus will end up paying more for them C. advertising makes markets more competitive, which in turns requires more advertising and more price competition D. advertising makes consumers purchase products and services for irrational reasons E. advertising reduces the market power of large companies
81. (p. 764) From an economic perspective, advertising might lower the cost of a product by: A. creating barriers to entry for less efficient firms B. moving consumers to the consumer socialization stage of the buying process C. making it possible for firms to realize economies of scale through expansion of sales volume D. allowing firms to advertise at high levels along with competitors E. doing none of the above.
22-23
Chapter 22 - Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion
82. (p. 764) 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 the advertised brand. A. economies of scale B. materialism C. a competitive advantage D. market power E. information
83. (p. 765) If a marketer for an established company believes potential entrants to the marketplace must overcome established brand loyalty and spend relatively more on advertising, then he or she must believe that advertising equals: A. economies of scale B. materialism C. a competitive advantage D. market power E. information See also Figure 22-3.
84. (p. 765) If a marketer believes that only the relationship between price and quality affects elasticity for a given product, then he or she must believe that advertising equals: A. economies of scale B. materialism C. a competitive advantage D. market power E. information See also Figure 22-3.
22-24
Chapter 22 - Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion
85. (p. 765) Those economists who believe that advertising equals market power view advertising as: A. a way to change consumers' tastes and create brand loyalty for an advertising product B. reducing the level of competition in a market C. resulting in higher prices D. a barrier to entry E. having all of the above effects
86. (p. 765-766) Marketers who believe that advertising equals _____ sees advertising as providing consumers with useful information, increasing their price sensitivity and increasing competition in the market. A. economies of scale B. materialism C. a competitive advantage D. market power E. information
87. (p. 765-766) Those economists who believe advertising equals information view advertising as: A. a way of providing consumers with useful information B. a means of market entry rather than a barrier C. having a positive effect on product quality D. having positive economic effects E. having all of the above effects
88. (p. 766) Why have the AAAA and AAF created and implemented an integrated marketing communications campaign? A. as proof of the advertising industry's capabilities B. to prove the economic and social importance of advertising C. to encourage the development of new advertising agencies D. as part of an agreement with the FTC to reduce advertising directed at children E. to encourage more the purchase of time and space in traditional media
22-25