Test Bank For Advertising And Promotion An Intergrated Marketing Communication Perspective by QuentinAxel

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

true false

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

true false

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

true false

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

true false

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

Version 1

true false

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

7) According to the American Marketing Association, the organization that represents marketing professionals in the United States and Canada, marketing is planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create ________ that satisfy individual and organizational objectives. A) opportunities B) plans C) advertisements D) exchanges E) contributions

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

Version 1

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

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

11) Clear Cite Industries’ goals are to both generate short-term financial returns and build long-term brand and shareholder value. They have chosen to use a strategic business process called ________ to plan, develop, execute, and evaluate coordinated, measurable, persuasive brand communications programs over time with consumers, customers, prospects, employees, associates, and other targeted relevant external and internal audiences.

Version 1

A) international marketing communications B) interdepartmental marketing communications C) informational marketing communications D) integrated marketing communications E) intradepartmental marketing communications

12) One reason Sum Company Marketers are adopting the IMC approach is they understand the value of ________ integrating the various communications functions. A) partially B) covertly C) centrally D) seasonally E) strategically

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

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

Version 1

A) streaming apps B) ad blockers C) paid ads D) music apps E) mobile apps

15) Most millennial and Gen Z-age consumers have grown up in a brand-conscious, mediaheavy, and information-filled world. They are actively seeking ways to ________ advertising. A) employ B) absorb C) learn D) embrace E) avoid

16) To increase sales, NW Inc. is looking for a carefully planned, controlled program, one that requires coordination of all seller-initiated efforts to set up channels of information and persuasion in order to sell goods and services. This program is better known as A) advertising. B) promotion. C) personal selling. D) marketing. E) public relations.

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

Version 1

A) random B) personal C) private D) nonpersonal E) privileged

18) Venus Corporation is creating an advertising budget with the goal to reach a large number of customers. Productive Advertising Company advises them that the most cost-effective way to reach a mass market is with A) radio advertising. B) newspaper advertising. C) television advertising. D) mailer advertising. E) magazine advertising.

19) Success Advertising is working with Venus Corporation to create demand for their brand. Success is recommending a class of advertising that will emphasize the reasons consumers should purchase the Venus brand. This class of advertising is called A) trade advertising. B) professional advertising. C) business-to-business advertising. D) direct-response advertising. E) primary-demand advertising.

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

Version 1

A) trade advertising. B) professional advertising. C) business-to-business advertising. D) direct-response advertising. E) primary-demand advertising.

21) X-Ray Industries is coming out with a new model of x-ray machine that will reduce radiation exposure. What type of advertising will help them reach their audience? A) trade advertising B) professional advertising C) business-to-business advertising D) direct-response advertising E) primary-demand advertising

22) Creative Boutique has decided to change their inventory strategy. They are closing their storefronts to rely instead on their supply chain network of manufacturers to ship goods directly to Creative Boutique’s customers. Creative Boutique will now use ________ as their primary medium for reaching consumers. A) trade advertising B) professional advertising C) business-to-business advertising D) direct-response advertising E) primary-demand advertising

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

Version 1

A) trade-oriented sales promotion. B) omnichannel retailing. C) customer-oriented sales promotion. D) mobile retailing. E) consumer-oriented sales promotions.

24) Abound Industries has selected an advertising method to stimulate short-term sales by offering customers samples and same-day coupons for immediate discount at point of purchase. This method is known as A) trade-oriented sales promotion. B) omnichannel retailing. C) customer-oriented sales promotion. D) mobile retailing. E) consumer-oriented sales promotions.

25) Abound Industries has multiple supply channels, including wholesalers, distributors, and retailers. They are running a sales contest to encourage these partners to stock and promote their products. This contest is an example of A) a trade-oriented sales promotion. B) omnichannel retailing. C) a customer-oriented sales promotion. D) mobile retailing. E) a consumer-oriented sales promotion.

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

Version 1

A) paid media B) public relations C) personal selling D) publicity E) a touch point

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

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

Version 1

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

30) Sum Company is reviewing their media-mix options to reach their target audience for cost effectiveness. They have created a series of goals for sales, market share, and profitability. Sum Company is writing A) a marketing plan. B) communication objectives. C) marketing objectives. D) a communication plan. E) a marketing program.

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

32)

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

Version 1

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

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

34)

Which of the following statements best defines value?

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

35)

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

Version 1

A) people. B) place. C) package. D) print. E) privilege.

36)

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

37) Prior to the development of integrated marketing communications, which promotional function dominated in most companies? A) mass-media advertising B) sales promotion C) public relations D) publicity E) direct marketing

38) CL Inc., a new firm, used mass media to gain traction among customers. The company used sales promotions and public relations to achieve the long-term targets and goals identified by their top management. They also opted for direct marketing on a project-to-project basis. The combination of these various promotional tools is commonly referred to as

Version 1

A) mobile marketing. B) sales promotion activities. C) integrated marketing communications. D) omnichannel retailing. E) search advertising

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

40)

Which of the following statements best defines “integrated marketing communications”?

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

41)

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

Version 1

A) It does not include sales promotion. B) It calls for a “big picture” approach to promotional activities. C) It segregates and highlights various independent promotional activities. D) It is also typically referred to as “mobile marketing.” E) It relies on mass-media advertising.

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

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

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

Version 1

A) positioning. B) integration. C) channel conflict. D) relationship marketing. E) diffusion.

45)

The 4As’ definition of integrated marketing communications focuses on

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

46)

The primary goal of an integrated marketing communications program is to

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

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

Version 1

A) It is a tactical separation of various communication activities. B) It does not view the audience as an important part of the IMC process. C) It does not view the employees as an important part of the IMC process. D) It is viewed as an ongoing strategic business process. E) It simply involves bundling promotional mix elements together.

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

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

50)

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

Version 1

A) mass-media communication. B) television advertising. C) micromarketing. D) mass production. E) product packaging.

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

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

53) The chief marketing officer who noted that “the future of marketing isn’t about getting people to buy your brand, but to buy into your brand” recognized that marketing is now in the ________ era, and companies must connect with consumers based on trust, transparency, engagement, and authenticity. Version 1

A) relationship B) cynicism C) promotion D) mobile E) sustainability

54)

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

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

56) mix?

Traditionally, which of the following has been considered an element of the promotional

A) packaging B) advertising C) direct marketing D) interactive media E) branding

Version 1

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

58)

Advertising is defined as any

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

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

60)

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

Version 1

A) ability to reach mass markets B) low cost per contact C) ability to create brand images and symbolism D) immediate feedback E) control of message content and media placement

61)

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

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

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

Version 1

A) It provides for immediate feedback from the message recipient. B) It makes use of only magazines as a primary medium of advertising. C) It is a form of nonpersonal mass-media communication. D) It is most widely used because of its pervasiveness. E) It is a paid form of mass-media communication.

64)

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

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

66)

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

Version 1

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

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

69) Local merchants use ________ advertising to encourage consumers to shop at a specific store, use a local service, or patronize a particular establishment. A) trade B) professional C) direct-response D) retail E) national

70) A to Z, a supermarket in New Jersey, placed a weekly advertisement in the local newspapers. The advertisement stated that A to Z would sell all vegetables at a flat rate of $5 from Monday to Wednesday between 1 p.m. and 3 p.m. at select locations in the state. A to Z most likely used Version 1

A) national advertising. B) trade advertising. C) retail advertising. D) primary-demand advertising. E) direct-response advertising.

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

72)

Which of the following statements is true of retail advertising?

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

73)

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

Version 1

74)

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

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

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

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

Version 1

A) direct-response advertising. B) professional advertising. C) primary-demand advertising. D) selective-demand advertising. E) trade advertising.

78)

Which of the following statements best describes selective-demand advertising?

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

79)

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

A) Advertisement for a health drink that compares its benefits to its competitor’s B) Advertising done by the Beef Council to stimulate the demand for beef C) Advertisement for Fizzy Cola placed in a trade magazine to promote it to food store managers D) Advertisement for Pink Airlines that appears in newspapers all across the country E) Advertisement for a discount at a restaurant located on the outskirts of San Diego placed in a newspaper

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

Version 1

A) Professional B) Primary-demand C) Retail D) Business-to-business E) Direct-response

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

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

83) ________ advertising is targeted at marketing channel members such as wholesalers, distributors, and retailers in order to encourage them to stock more of a particular brand.

Version 1

A) National B) Selective-demand C) Professional D) Trade E) Retail

84)

Which of the following situations is an example of trade advertising?

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

85)

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

86) Venus Corp. is a company that sells collectible plates. If you order one plate from the company, you will receive multiple mailings each month providing you with information relating to new products and offers. Which promotional element is Venus Corp. using in this scenario?

Version 1

A) advertising B) sales promotion C) direct marketing D) publicity E) pricing

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

88)

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

89) ________ is a tool of direct marketing that calls customers directly to attempt to sell them products and services or qualify them as sales leads. A) Bait advertising B) Buzz marketing C) Telemarketing D) Switch marketing E) B2B marketing

Version 1

90)

Which of the following statements is true of the Internet as a marketing medium?

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

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

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

93) of

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

Version 1

A) consumer-oriented sales promotion. B) industrial sales promotion. C) business-oriented sales promotion. D) trade-oriented sales promotion. E) service-oriented sales promotion.

94)

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

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

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

Version 1

97)

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

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

99)

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

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

Version 1

A) advertising B) publicity C) packaging D) sales promotion E) direct marketing

101)

Which of the following statements about publicity is true?

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

102) Controversial Coffee Company has released new advertising that features their efforts to support human rights, fair trade, and environmental sustainability. This type of promotion, called ________, involves managing relationships with a number of important audiences, including investors, employees, suppliers, communities, and governments (federal, state, and local) as well as consumers. A) paid media B) public relations C) personal selling D) publicity E) touch point

103) A local newspaper published an article about Pluto Inc.’s latest line of shoes. The shoes were made with used clothing sourced from households across the country. The article also included select photographs and offered consumers a “sneak peek” into the manufacturing process. This form of nonpersonal marketing communication is known as

Version 1

A) sales promotion. B) digital marketing. C) personal selling. D) public relations. E) publicity.

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

105)

Which of the following statements correctly describes a disadvantage of publicity?

A) Publicity is expensive to implement as it is directly paid for and run under identified sponsorship. B) Publicity has relatively low credibility with the audience. C) Publicity is not always under an organization’s control and can be unfavorable. D) Publicity is not useful with a market segmentation strategy. E) Publicity makes a market aggregation strategy ineffective.

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

Version 1

A) sales detraction. B) negative advertising. C) cause selling. D) negative publicity. E) bait-and-switch advertising.

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

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

109)

Which of the following statements is true of public relations?

Version 1

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

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

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

112) ________ is a promotional mix element that allows for direct contact between a buyer and seller and allows a message to be modified according to the needs or reactions of the customer.

Version 1

A) Advertising B) Sales promotion C) Public relations D) Publicity E) Personal selling

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

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

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

Version 1

A) print advertising B) sales promotion C) public relations D) personal selling E) publicity

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

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

118) Each and every opportunity the customer has to see or hear about the company and/or its brands or have an encounter or experience with it is

Version 1

A) a service point. B) an inference point. C) a reference point. D) a touch point. E) a display point.

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

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

121) Which of the following touch points relates to unanticipated references or information about a company or brand that a customer or prospect receives from sources that are beyond the control of the organization?

Version 1

A) company-created touch point B) intrinsic touch point C) user-created touch point D) unexpected touch point E) customer-initiated touch point

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

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

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

Version 1

A) paid media. B) brand media. C) owned media. D) advertising media. E) earned media.

125) Face-to-Face Cosmetics has been successful with their website. Now they are posting a weekly YouTube lesson and have reached out to their customer base, encouraging them follow the company on Instagram. Face-to-Face Cosmetics is using A) paid media. B) brand media. C) owned media. D) advertising media. E) earned media.

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

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

Version 1

A) Marketing information system management B) Integrated marketing communications management C) Customer relationship management D) Differential communications management E) Communications process accounting

128)

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

129)

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

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

Version 1

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

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

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

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

Version 1

A) allocating tentative budgets B) analyzing source, message, and channel factors C) competitive analysis D) designing and implementing direct-marketing programs E) external analysis

135) According to an integrated marketing communications planning model, which activity is best associated with the step “developing integrated marketing communications program”? A) examining overall marketing plan and objectives B) internal analysis C) analyzing receiver’s response processes D) determining advertising budget E) external analysis

136)

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

137)

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

Version 1

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

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

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

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

Version 1

A) reviewing the marketing plan and situation analysis B) determining the promotional budget C) monitoring, evaluating, and controlling the promotional program D) developing the integrated marketing communications program E) determining the media strategy

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

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

Version 1

Answer Key Test name: Chap 01_12e 1) FALSE Traditionally, direct mail has been the primary medium for directresponse advertising, although television and the Internet have become increasingly important media. 2) TRUE Companies that use an omnichannel retailing strategy sell their products through multiple distribution channels, including retail stores, online, catalogs, and mobile apps. These companies try to influence the customer’s shopping experience throughout the purchase process. 3) FALSE Publicity is not always under the control of an organization and is sometimes unfavorable. Negative stories about a company and/or its products can be very damaging. 4) FALSE Companies or brands that are new to the market or those for whom perceptions are negative may have to concentrate on their images, not just the benefits or attributes of the specific product or service. On the other hand, a firm with a strong reputation and/or image is already a step ahead when it comes to marketing its products or services. 5) TRUE

Version 1

When a firm is in the stage of analyzing the communication process of the promotional planning process, it examines how effectively it can communicate with consumers in its target markets. Preliminary discussion of media-mix options (print, TV, radio, digital, direct marketing) and their cost implications might also occur at this stage. 6) C Advertising spending is shifting from traditional media such as television, radio, and print to digital formats including online search, display and video ads as well as advertising on social media. In 2019, spending on digital advertising in the United States surpassed that spent on traditional media advertising (54 percent vs. 46 percent) for the first time and by 2023, digital ads are forecast to capture more than twothirds of all advertising spending. 7) D American Marketing Association (AMA), the organization that represents marketing professionals in the United States and Canada, defined marketing as 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. 8) B Value is the customer’s perception of all of the benefits of a product or service weighed against all the costs of acquiring and consuming it. Benefits can be functional (the performance of the product), experiential (what it feels like to use the product), and/or psychological (feelings such as self-esteem or status that result from owning a particular brand). 9) D

Version 1

As marketers embraced the concept of integrated marketing communications, they began asking their ad agencies to coordinate the use of a variety of promotional tools rather than relying primarily on media advertising. A number of companies also began to look beyond traditional advertising agencies and use other types of promotional specialists. 10) B The integrated marketing communications approach recognizes that every customer interaction with a company or brand across a host of contact points represents an opportunity to deliver on the brand promise, strengthen customer relationships, and deepen loyalty. It calls for a centralized messaging function so that everything a company says and does communicates a common theme and positioning. 11) D Integrated marketing communications is a strategic business process used to plan, develop, execute, and evaluate coordinated, measurable, persuasive brand communications programs over time with consumers, customers, prospects, employees, associates, and other targeted relevant external and internal audiences. The goal is to generate both short-term financial returns and build long-term brand and shareholder value. 12) E The IMC approach to marketing communications planning and strategy is being adopted by both large and small companies because they prefer to integrate communications functions instead of having them operate autonomously. By coordinating marketing communication efforts, companies can avoid duplication, take advantage of synergy among promotional tools, and develop more efficient and effective marketing communication programs.

Version 1

13) D There has been an evolution in advertising to micromarketing as the mass audiences assembled by the major television networks and augmented by other mass media such as magazines and newspapers are fragmenting at an accelerating rate. 14) B Traditional print advertising is expected to decline by 2 percent annually. 15) E In addition to the proliferation of media options and fragmentation of audiences, marketers are facing the challenge of consumers being less responsive to and finding ways to avoid their advertising messages. Younger consumers in the millennial and Gen Z-age cohorts (which include most college students) are particularly skeptical of advertising. Having grown up in an even more media saturated and brand-conscious world than their parents, they respond differently to advertising and simply pushing messages at them does not work very well. 16) B Promotion has been defined as the coordination of all seller-initiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea. Implicit communication occurs through the various elements of the marketing mix, but most of an organization’s communications with the marketplace take place as part of a carefully planned and controlled promotional program. 17) D

Version 1

The nonpersonal nature of advertising means that there is generally no opportunity for immediate feedback from the message recipient (except in direct-response advertising). Therefore, before the message is sent, the advertiser must consider how the audience will interpret and respond to it. 18) C There are several reasons why advertising is such an important part of many marketers’ IMC programs. First, media advertising is still the most cost-effective way to reach large numbers of consumers with an advertising message. Television in particular is an excellent way for marketers to reach mass markets. The average television program on the four major television networks during prime time (8:00 p.m. to 11:00 p.m.) reaches nearly 5 million households. 19) E Primary-demand advertising is designed to stimulate demand for the general product class or entire industry. Selective-demand advertising focuses on creating demand for a specific company’s brands. Most advertising for products and services is concerned with stimulating selective demand and emphasizes reasons for purchasing a particular brand. 20) C Business-to-business advertising is targeted at individuals who buy or influence the purchase of industrial goods or services for their companies. Business services such as insurance, finance and banking, and telecommunications are also included in this category because they are marketed to both business customers and consumers. 21) B

Version 1

Advertising targeted to professionals such as doctors, lawyers, dentists, engineers, or professors to encourage them to use a company’s product in their business operations is referred to as professional advertising. 22) D One major tool of direct marketing is direct-response advertising, whereby a product is promoted through an ad that encourages the consumer to purchase directly from the manufacturer. Traditionally, direct mail has been the primary medium for direct-response advertising, although television and the Internet have become increasingly important media. 23) B Direct-marketing tools and techniques are also being used by companies that distribute their products through traditional distribution channels or have their own sales force. A major marketing trend that has emerged over the past decade is omnichannel retailing, whereby companies sell their products through multiple distribution channels including retail stores, online, catalogs, and mobile apps. More than just offering a product or service through multiple channels, an omnichannel strategy involves using a combination of physical or offline channels as well as digital or online channels to influence a customer’s shopping experience, including research before a purchase and service after a sale. 24) E Consumer-oriented sales promotions are targeted to the ultimate user of the product or service and include couponing, sampling, premiums, rebates, contests, sweepstakes, and various point-of-purchase materials. These promotional tools encourage consumers to make an immediate purchase and thus can stimulate short-term sales. 25) A Version 1

Trade-oriented sales promotions are targeted to the marketing intermediaries, like wholesalers, distributors, and retailers. Trade shows, promotional and merchandising allowances, price deals, and sales contests are all examples of trade-oriented sales promotions, which are designed to encourage trade partners to stock and promote a company’s products. 26) C Publicity refers to nonpersonal communications regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship. Unlike advertising, publicity is not directly paid for by the company. Techniques used to gain publicity include press releases, press conferences, feature articles, photographs, films, and video news releases. 27) B A touch point refers to each and every opportunity the customer has to see or hear about the company and/or its brands or have an encounter or experience. Unexpected touch points are unanticipated references or information about a company or brand that a customer or prospect receives that is beyond the control of the organization. Probably the most influential type of unexpected contact is a word-of-mouth message, which refers to a personal communication that comes from friends, associates, neighbors, co-workers, or family members. 28) E

Version 1

Earned media is exposure for a company or brand that it did not have to pay for and is generated by outside entities such as the media or the general public. Earned media has traditionally been viewed as exposure for a company or brand generated by its public relations/publicity efforts or through favorable word of mouth. This can occur through tweets and re-tweets on Twitter, social media posts on Facebook or Instagram, product reviews, blogs, video sharing, and discussions within online communities. 29) B The first step in the IMC planning process is to review the marketing plan and objectives. Before developing a promotional plan, marketers must understand where the company (or the brand) has been, its current position in the market, where it intends to go, and how it plans to get there. Most of this information should be contained in the marketing plan. 30) C The textbook stresses the importance of distinguishing between communication and marketing objectives. Marketing objectives refer to what is to be accomplished by the overall marketing program. They are often stated in terms of sales, market share, or profitability. 31) B The textbook stresses the importance of distinguishing between communication and marketing objectives. Communication objectives may include creating awareness or knowledge about a product and its attributes or benefits, creating an image, or developing favorable attitudes, preferences, or purchase intentions. Communication objectives should be the guiding force for development of the overall marketing communications strategy and of objectives for each promotional-mix area. Version 1

32) D Mrs. Maloney giving Larry a box of homemade fudge in return for painting her fence is an example of a marketing exchange. For exchange to occur, there must be two or more parties with something of value to one another, a desire and ability to give up that something to the other party, and a way to communicate with each other. Not all marketing transactions involve the exchange of money for a product or service. 33) C The revised definition of marketing given by the American Marketing Association (AMA) is viewed as being more reflective of the role of nonmarketers to the marketing process. It also recognizes the important role marketing plays in the process of creating, communicating, and delivering value to customers, as well as society at large. 34) D Value is the customer’s perception of all of the benefits of a product or service weighed against all the costs of acquiring and consuming it. 35) B The four Ps—product, price, place (distribution), and promotion—are elements of the marketing mix. 36) C The four Ps—product, price, place (distribution), and promotion—are elements of the marketing mix. 37) A For many years, the promotional function in most companies was dominated by mass-media advertising. Companies relied primarily on their advertising agencies for guidance in nearly all areas of marketing communication.

Version 1

38) C In this scenario, the combination of various promotional tools is referred to as integrated marketing communications. During the 1980s, firms began to adopt the process of integrated marketing communications (IMC), which involves coordinating the various promotional elements and other marketing activities that communicate with a firm’s customers. As marketers embraced the concept of integrated marketing communications, they began asking their ad agencies to coordinate the use of a variety of promotional tools rather than relying primarily on media advertising. 39) C During the 1980s, firms began moving toward the process of integrated marketing communications (IMC), which involves coordinating the various promotional elements and other marketing activities that communicate with a firm’s customers. 40) B During the 1980s, firms began moving toward the process of integrated marketing communications (IMC), which involves coordinating the various promotional elements and other marketing activities that communicate with a firm’s customers. 41) B Advocates of the integrated marketing communications (IMC) concept noted that the process of integrated marketing communications calls for a “big-picture” approach to planning marketing and promotion programs and coordinating the various communication functions. It requires that firms develop a total marketing communications strategy that recognizes how all of a firm’s marketing activities, not just promotion, communicate with its customers.

Version 1

42) C The integrated marketing communications approach seeks to have all of a company’s marketing and promotional activities project a consistent, unified image to the marketplace. It calls for a centralized messaging function so that everything a company says and does communicates a common theme and positioning. 43) D A task force from the American Association of Advertising Agencies (the “4As”) developed one of the first definitions of integrated marketing communications: a concept of marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines— for example, general advertising, direct response, sales promotion, and public relations—and combines these disciplines to provide clarity, consistency, and maximum communications impact. 44) B The advertising industry recognized that integrated marketing communications (IMC) was more than just a fad. Terms such as new advertising, orchestration, and seamless communication were used to describe the concept of integration. 45) E In the 4As’ definition of IMC, the focus is on the process of using all forms of promotion to achieve maximum communication impact. However, advocates of the IMC concept argued for an even broader perspective that considers all sources of brand or company contact that a customer or prospect has with a product or service. 46) A

Version 1

The integrated marketing communications approach seeks to have a company’s entire marketing and promotional activities project a consistent, unified image to the marketplace. 47) D IMC is viewed as an ongoing strategic business process rather than just tactical integration of various communication activities. 48) C Montblanc uses an integrated communications strategy with a variety of marketing-mix elements, including price, product design, brand name, and distribution strategy, to create a high-quality, upscale image for its watches. 49) C Integrated marketing communications (IMC) has been described as one of the “new-generation” marketing approaches being used by companies to better focus their efforts in acquiring, retaining, and developing relationships with customers and other stakeholders. 50) C To respond to media fragmentation, marketers are increasing their spending on media that are more targeted and can reach specific market segments. There appears to be no stopping the fragmentation of the consumer market as well as the proliferation of media. The success of marketing communication programs will depend on how well companies make the transition from the fading age of mass marketing to the new era of micromarketing. 51) D

Version 1

In this scenario, Ultra-Long is hoping to create brand identity for its new product. Brand identity is a combination of many factors, including the name, logo, symbols, design, packaging, and performance of a product or service as well as the image or type of associations that comes to mind when consumers think about a brand. 52) B Brand identity is the sum of all points of encounter or contact that consumers have with the brand, and it extends beyond the experience or outcome of using it. 53) A Brands are becoming less about the actual product or service and more about how people relate to them. Consumers may view brands as a form of self-expression. 54) B For many companies, mass-media advertising has long been the cornerstone of their brand-building efforts. 55) D Promotion has been defined as the coordination of all seller-initiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea. 56) B Traditionally the promotional mix has included four elements: advertising, sales promotion, publicity/public relations, and personal selling. 57) A Advertising is defined as any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor. Version 1

58) A Advertising is defined as any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor. 59) D The basic tools used to accomplish an organization’s communication objectives are often referred to as the promotional mix. Traditionally, the promotional mix has included four elements: advertising, sales promotion, publicity/public relations, and personal selling. 60) D The nonpersonal nature of advertising means that there is generally no opportunity for immediate feedback from the message recipient. 61) A Advertising is defined as any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor. There are several reasons why advertising is such an important part of many marketers’ IMC programs. One of the reasons is that media advertising is still the most cost-effective way to reach large numbers of consumers. 62) A In this scenario, Clave Inc. should use mass advertising to promote Honeydew. Advertising is defined as any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor. Advertising is the best-known and most widely discussed form of promotion, probably because of its pervasiveness. Advertising is an important part of a marketer’s IMC because it is the most cost-effective way to reach large numbers of consumers. 63) A

Version 1

The nonpersonal nature of advertising means that there is generally no opportunity for immediate feedback from the message recipient (except in direct-response advertising). 64) D Advertising is the best-known and most widely discussed form of promotion, probably because of its pervasiveness. 65) A Advertising is a valuable tool for building company or brand equity because it is a powerful, cost-effective way to provide large numbers of consumers with information as well as to influence their perceptions. 66) C Advertising is a valuable tool for building company or brand equity as it is a powerful way to provide consumers with information as well as to influence their perceptions. 67) D National advertising is advertising done by large companies on a nationwide basis or in most regions of the country. Most of the ads for well-known companies and brands that are seen on prime-time TV or in other major national or regional media are examples of national advertising. 68) A In this scenario, Stylo is making use of national advertising. National advertising is advertising done by large companies on a nationwide basis or in most regions of the country. The goals of national advertisers are to inform or remind consumers of the company or brand and its features, benefits, advantages, or uses and to create or reinforce its image so that consumers will be predisposed to purchase it.

Version 1

69) D Retail, or local advertising, is advertising done by retailers or local merchants to encourage consumers to shop at a specific store, use a local service, or patronize a particular establishment. 70) C In this scenario, A to Z made use of retail advertising. Retail or local advertising is advertising done by retailers or local merchants to encourage consumers to shop at a specific store, use a local service, or patronize a particular establishment. Retail or local advertising tends to emphasize specific patronage motives such as price, hours of operation, service, atmosphere, image, or merchandise assortment. 71) D Retail or local advertising is advertising done by retailers or local merchants to encourage consumers to shop at a specific store, use a local service, or patronize a particular establishment. Retailers are concerned with building store traffic, so their promotions often take the form of direct-action advertising designed to produce immediate store traffic and sales. 72) C Retail advertising is advertising done by retailers or local merchants to encourage consumers to shop at a specific store, use a local service, or patronize a particular establishment. Retailers are concerned with building store traffic, so their promotions often take the form of directaction advertising designed to produce immediate store traffic and sales. 73) D Retailers are concerned with building store traffic, so their promotions often take the form of direct-action advertising designed to produce immediate store traffic and sales. Version 1

74) B Primary-demand advertising is designed to stimulate demand for the general product class or entire industry. Primary-demand advertising is often used as part of a promotional strategy to help a new product gain market acceptance, since the challenge is to sell customers on the product concept as much as to sell a particular brand. 75) B Selective-demand advertising focuses on creating demand for a specific company’s brands. Most advertising for products and services is concerned with stimulating selective demand and emphasizes reasons for purchasing a particular brand. 76) B This scenario is an example of primary-demand advertising. Primarydemand advertising is designed to stimulate demand for the general product class or entire industry. Primary-demand advertising is often used as part of a promotional strategy to help a new product gain market acceptance, since the challenge is to sell customers on the product concept as much as to sell a particular brand. An advertiser might concentrate on stimulating primary demand when its brand dominates a market and will benefit the most from overall market growth. 77) C The National Egg Association is making use of primary-demand advertising. Primary-demand advertising is designed to stimulate demand for the general product class or entire industry. An advertiser might concentrate on stimulating primary demand when its brand dominates a market and will benefit the most from overall market growth. 78) A Version 1

Selective-demand advertising focuses on creating demand for a specific company’s brands. Most advertising for products and services is concerned with stimulating selective demand and emphasizes reasons for purchasing a particular brand. 79) E Retail advertising is advertising done by retailers or local merchants to encourage consumers to shop at a specific store, use a local service, or patronize a particular establishment is called retail advertising. 80) D Business-to-business advertising is advertising targeted at individuals who buy or influence the purchase of industrial goods or services for their companies. 81) C These are all examples of business-to-business advertising. Business-tobusiness advertising is advertising targeted at individuals who buy or influence the purchase of industrial goods or services for their companies. 82) C This scenario is an example of professional advertising—advertising targeted to professionals such as doctors, lawyers, dentists, engineers, or professors to encourage them to use a company’s product in their business operations. It might also be used to encourage professionals to recommend or specify the use of a company’s product by end users. 83) D Trade advertising is targeted to marketing channel members such as wholesalers, distributors, and retailers. The goal is to encourage channel members to stock, promote, and resell the manufacturer’s branded products to their customers. Version 1

84) C CL Inc., a chocolate manufacturer, hoping to attract wholesalers and retailers by placing an ad in NextMag, a weekly hotel magazine, is an example of trade advertising. Trade advertising is advertising targeted to marketing channel members such as wholesalers, distributors, and retailers. The goal is to encourage channel members to stock, promote, and resell the manufacturer’s branded products to their customers. 85) A Traditionally, direct marketing has not been considered an element of the promotional mix. However, because it has become such an integral part of the integrated marketing communications (IMC) program of many organizations and often involves separate objectives, budgets, and strategies, we view direct marketing as a component of the promotional mix. 86) C In this scenario, Venus Corp. is making use of direct marketing. Direct marketing is much more than direct mail and mail-order catalogs. It involves a variety of activities, including database management, direct selling, telemarketing, and direct-response ads through direct mail, the Internet, and various broadcast and print media. 87) A One major tool of direct marketing is direct-response advertising, whereby a product is promoted through an ad that encourages the consumer to purchase directly from the manufacturer. 88) A One of the major tools of direct marketing is direct-response advertising, whereby a product is promoted through an ad that encourages the consumer to purchase directly from the manufacturer. Version 1

89) C Direct marketing plays a big role in the integrated marketing communications programs of consumer-product companies and business-to-business marketers. They use telemarketing to call customers directly and attempt to sell them products and services or qualify them as sales leads. 90) C The interactive nature of the Internet is one of its major advantages. This capability enables marketers to gather valuable personal information from customers and prospects and to adjust their offers accordingly, in some cases in real time. 91) D Sales promotion is generally defined as those marketing activities that provide extra value or incentives to the sales force, the distributors, or the ultimate consumer and can stimulate immediate sales. 92) A Consumer-oriented sales promotion is targeted to the ultimate user of a product or service and includes couponing, sampling, premiums, rebates, contests, sweepstakes, and various point-of-purchase materials. 93) A This is an example of consumer-oriented sales promotion. Consumeroriented sales promotion is targeted to the ultimate user of a product or service and includes couponing, sampling, premiums, rebates, contests, sweepstakes, and various point-of-purchase materials. 94) B

Version 1

Trade-oriented sales promotion is targeted toward marketing intermediaries such as wholesalers, distributors, and retailers. Promotional and merchandising allowances, price deals, sales contests, and trade shows are some of the promotional tools used to encourage the trade to stock and promote a company’s products. 95) B Trade-oriented sales promotion is targeted toward marketing intermediaries such as wholesalers, distributors, and retailers. 96) C Publicity refers to nonpersonal communications regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship. 97) C Publicity refers to nonpersonal communications regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship. 98) C Like advertising, publicity involves nonpersonal communication to a mass audience, but unlike advertising, publicity is not directly paid for by the company. 99) B An advantage of publicity over other forms of promotion is its credibility. Consumers generally tend to be less skeptical toward favorable information about a product or service when it comes from a source they perceive as unbiased. 100) B

Version 1

An advantage of publicity over other forms of promotion is its credibility. Consumers generally tend to be less skeptical toward favorable information about a product or service when it comes from a source they perceive as unbiased. 101) C Publicity refers to nonpersonal communications regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship. It usually comes in the form of a news story, editorial, or announcement about an organization and/or its products and services. 102) B Public relations generally has a broader objective than publicity, as its purpose is to establish and maintain a positive image of the company among its various publics. Thus, it involves managing relationships with a number of important audiences, including investors, employees, suppliers, communities, and governments (federal, state, and local) as well as consumers. 103) E The article is an example of publicity. Publicity refers to nonpersonal communications regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship. It usually comes in the form of a news story, editorial, or announcement about an organization and/or its products and services. 104) B

Version 1

A movie review is an example of publicity. Publicity refers to nonpersonal communications regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship. It usually comes in the form of a news story, editorial, or announcement about an organization and/or its products and services. 105) C Publicity is not always under the control of an organization and is sometimes unfavorable. Negative stories about a company and/or its products can be very damaging. 106) D This scenario is an example of negative publicity. Publicity is not always under the control of an organization and is sometimes unfavorable. Negative stories about a company and/or its products can be very damaging. For example, recently the food and beverage industry has received a great deal of negative publicity regarding the nutritional value of their products as well as their marketing practices, particularly those targeting young people. 107) A Public relations is defined as “a strategic communication process that builds mutually beneficial relationships between organizations and their publics.” It involved managing relationships with a number of important audiences, including consumers. 108) D When an organization systematically plans and distributes information in an attempt to control and manage its image and the nature of the publicity it receives; it is really engaging in a function known as public relations. 109) C Version 1

Public relations uses publicity and a variety of other tools—including special publications, participation in community activities, fund-raising, sponsorship of special events, and various public affairs activities—to enhance an organization’s image. 110) E The final element of an organization’s promotional mix is personal selling, a form of person-to-person communication in which a seller attempts to assist and/or persuade prospective buyers to purchase the company’s product or service or to act on an idea. 111) C Personal selling is a form of person-to-person communication in which a seller attempts to assist and/or persuade prospective buyers to purchase the company’s product or service or to act on an idea. Unlike advertising, personal selling involves direct contact between buyer and seller, either face to face or through some form of telecommunications such as telephone sales. This interaction gives the marketer communication flexibility—the seller can see or hear the potential buyer’s reactions and modify the message accordingly. Personal selling is managed separately in most organizations and is not under the control of the advertising or marketing communications manager. However, various IMC tools such as media advertising, digital marketing, and sales promotion must be coordinated with the personal-selling program. 112) E Unlike advertising, personal selling involves direct contact between buyer and seller, either face-to-face or through some form of telecommunications such as telephone sales. The personal, individualized communication in personal selling allows the seller to tailor the message to the customer’s specific needs or situation.

Version 1

113) B Unlike advertising, personal selling involves direct contact between buyer and seller, either face-to-face or through some form of telecommunications such as telephone sales. This interaction gives the marketer communication flexibility; the seller can see or hear the potential buyer’s reactions and modify the message accordingly. 114) E Personal selling also involves more immediate and precise feedback because the impact of the sales presentation can generally be assessed from the customer’s reactions. If the feedback is unfavorable, the salesperson can modify the message. 115) D The personal, individualized communication in personal selling allows the seller to tailor the message to the customer’s specific needs or situation. Personal-selling efforts can also be targeted to specific markets and customer types that are the best prospects for the company’s product or service. 116) E Unlike advertising, personal selling involves direct contact between buyer and seller, either face-to-face or through some form of telecommunications such as telephone sales. 117) D The salesperson benefited from the ability to respond to immediate feedback, which is unique to personal selling. 118) D A touch point, or audience contact, refers to each and every opportunity the customer has to see or hear about the company and/or its brands or have an encounter or experience with it. Version 1

119) C Company-created touch points are planned marketing communication messages created by the company such as advertisements, websites and social media sites, news/press releases, packaging, brochures and collateral material, sale promotions, and point-of-purchase displays along with other types of in-store décor. 120) A Intrinsic touch points are interactions that occur with a company or brand during the process of buying or using the product or service such as discussions with retail sales personnel or customer service representatives. 121) D Unexpected touch points are unanticipated references or information about a company or brand that a customer or prospect receives that are beyond the control of the organization. 122) C Intrinsic touch points are interactions that occur with a company or brand during the process of buying or using the product or service such as discussions with retail sales personnel or customer service representatives. 123) E This scenario exemplifies a customer-initiated touch point. Customerinitiated touch points are interactions that occur whenever a customer or prospect contacts a company. Most of these contacts involve inquiries or complaints consumers might have regarding the use of a product or service and occur through calls made directly to the company, via emails, or through specific sections of websites to which customers are directed. Version 1

124) A Paid media refers to channels a marketer pays to leverage and includes traditional advertising media such as television, radio, print, outdoor, and direct mail as well as various forms of digital advertising such as paid search and online display and video ads. 125) C Owned media refers to channels of marketing communication that a company controls, such as its websites, blogs, and mobile apps as well as social media channels such as Facebook, Twitter, Instagram, and YouTube. 126) C Integrated marketing communications management involves the process of planning, executing, evaluating, and controlling the use of the various promotional-mix elements to effectively communicate with target audiences. 127) B Integrated marketing communications management involves the process of planning, executing, evaluating, and controlling the use of the various promotional-mix elements to effectively communicate with target audiences. 128) C The first step in the integrated marketing communications planning m is to review the marketing plan. Before developing a promotional plan, marketers must understand where the company (or the brand) has been, its current position in the market, where it intends to go, and how it plans to get there. 129) D

Version 1

Marketing plans can take several forms but generally include five basic elements—a detailed situation analysis, specific marketing objectives, a marketing strategy, a program for implementing the marketing strategy, and a process for monitoring and evaluating performance and providing feedback. 130) C In an IMC planning model, the review of the marketing plan is usually followed by the analysis of the promotional program situation. 131) C Assessment of environmental influences is one of the activities included in the review of the marketing plan step. Reviewing the marketing plan and objectives is the first step in the IMC planning process. 132) A Purchase of media time and space is one of the activities included in the “integrate and implement marketing communication strategies” step. While the marketer’s advertising agencies may be used to perform some of the other IMC functions, they may also hire other communication specialists such as direct-marketing and interactive and/or sales promotion agencies, as well as public relations firms. 133) C Analysis of consumer behavior is one of the activities included in the step “analysis of promotional program situation.” After the overall marketing plan is reviewed, the next step in developing a promotional plan is to conduct the situation analysis. 134) B

Version 1

Analysis of the source, message, and channel factors is one of the activities included in the step “analysis of communication process.” This stage of the promotional planning process examines how the company can effectively communicate with consumers in its target markets. 135) D Determination of advertising budget is one of the activities included in the step “develop integrated marketing communications program.” Developing the IMC program is generally the most involved and detailed step of the promotional planning process. 136) A The internal analysis assesses relevant areas involving the product/service offering and the firm itself. The capabilities of the firm and its ability to develop and implement a successful promotional program, the organization of the promotional department, and the successes and failures of past programs should be reviewed. 137) B The external analysis focuses on factors such as characteristics of the firm’s customers, market segments, positioning strategies, and competitors. During the external analysis, firms are likely to inquire about the external influences that drive people to buy their products. 138) A After the communication objectives are determined, attention turns to the promotional budget. Two basic questions are asked at this point: What will the promotional program cost? How will the money be allocated? 139) A

Version 1

Message development, often referred to as creative strategy, involves determining the basic appeal and message the advertiser wishes to convey to the target audience. 140) A Two important aspects of the advertising program are development of the message and the media strategy. Message development, often referred to as creative strategy, involves determining the basic appeal and message the advertiser wishes to convey to the target audience. 141) C The final stage of the IMC planning process is monitoring, evaluating, and controlling the promotional program. It is important to determine how well the IMC program is meeting communication objectives and helping the firm accomplish its overall marketing goals and objectives. 142) D The final stage of the IMC planning process is monitoring, evaluating, and controlling the promotional program. It is important to determine how well the IMC program is meeting communications objectives and helping the firm accomplish its overall marketing goals and objectives. The IMC planner wants to know not only how well the promotional program is doing but also why. 143) A Assessing the strengths and weaknesses of the firm or the brand from an image perspective is an aspect of internal analysis. The brand image of a firm can have a significant impact on the way the firm can advertise and promote itself as well as its various products and services.

Version 1

CHAPTER 2 TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) Market opportunities are areas where the company believes that customer needs and opportunities are being satisfied. ⊚ ⊚

true false

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

true false

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

true false

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

true false

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

true false

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

A) competitive advantage. B) market segments. C) strategic marketing channels. D) market opportunities. E) a strategic marketing plan.

7) Inroads Enterprises is now ready to perform a detailed assessment of the current marketing conditions facing the company and its product lines. They hope to gain a better understanding of target markets to pursue, better known as A) competitive advantage. B) market segments. C) strategic marketing channels. D) market opportunities. E) strategic marketing plan.

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

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

Version 1

A) competitive advantage. B) market segments. C) strategic marketing channels. D) market opportunities. E) a strategic marketing plan.

10) Advertising Innovation is recommending that their client, Inroad Enterprises, market to three different groups of people. By identifying the specific needs of each group, they can create an individualized promotional effort. This is called A) matrix marketing. B) micro marketing. C) target marketing. D) opportunity marketing. E) competitive marketing.

11) Inroad has agreed to employ a typical target marketing process. The four steps of this process are segmenting the market, targeting specific segments, positioning one's product or service through marketing strategies, and the most challenging—identifying markets with A) market segmentation. B) growth potential. C) lifestyle. D) unfulfilled needs. E) a competitive advantage.

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

Version 1

A) matrix marketing B) micro marketing C) target marketing D) opportunity marketing E) competitive marketing

13) Success Advertising recommends that Abound Industries look at their target consumer audience by dividing it into two distinct groups—one that will have similar responses and one that has common needs. This is a form of A) competitive advantage. B) market segmentation. C) marketing channels. D) market opportunities. E) media mix.

14) Abound Industries has data indicating that their customers have different buying habits depending on where they live, so the company is dividing their marketing efforts by neighborhood. This approach is ________ segmentation. A) geographic B) behavioristic C) demographic D) psychographic E) benefit

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

Version 1

A) geographic B) behavioristic C) demographic D) psychographic E) benefit

16) Clear Cite Industries has engaged Productivity Marketing to analyze the activities, interests, and opinions of their consumers; Productivity’s assignment is better known as A) market segmentation. B) growth potential. C) lifestyle determination. D) unfulfilled needs. E) a competitive advantage.

17) Firm Software Company has hired Productivity Marketing to analyze and divide their data on consumer groups by brand loyalty combined with demographic criteria to develop profiles of market segments. Productivity Marketing is performing ________ segmentation. A) geographic B) behavioristic C) demographic D) psychographic E) benefit

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

Version 1

A) 10 percent of buyers consume 90 percent B) 20 percent of buyers consume 80 percent C) 45 percent of buyers consume 55 percent D) 75 percent of buyers consume 25 percent E) 99 percent of buyers consume 1 percent

19) Reflective Enterprises is working with Productivity Marketing to create separate strategies for several of their consumer segments. This approach is called A) concentrated marketing. B) positioning. C) a salient attribute. D) differentiated marketing. E) undifferentiated marketing.

20) Money Backed Enterprises wants to capture a large share of a particular market segment. They are working with Productivity Marketing to accomplish this goal by using A) concentrated marketing. B) positioning. C) salient attributes. D) differentiated marketing. E) undifferentiated marketing.

21) Creating a promotional program for footwear that can go from bicycling to the office to all-day wear demonstrates the strategy of positioning by A) product class. B) product symbolism. C) product user. D) product equity. E) product repositioning.

Version 1

22) WriteOn Stationery is working with Advertising Innovators to create an ad campaign that emphasizes the high quality and smooth elegance of writing on their brand’s 100 percent cotton papers. This type of positioning by price/quality is used for A) premium brands. B) product symbolism. C) one voice. D) brand equity. E) repositioning.

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

24) Creative Networks is creating a promotional program that compares their product’s benefits to the benefits of Creative Boutique’s product, noting Creative Networks relies on only certified made-in-the-USA suppliers. This campaign demonstrates the ________ approach to positioning. A) competition B) product symbolism C) salient attributes D) brand equity E) repositioning

Version 1

25) Money Backed Enterprises has hired Productivity Marketing to analyze their market potential by segmenting the consumers of their products on the basis of family size, education, and income. This approach is called A) geographic segmentation. B) behavioristic segmentation. C) demographic segmentation. D) psychographic segmentation. E) benefit segmentation.

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

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

Version 1

28) Blueberry Designs is known for their trademark “BD” predominantly placed on each garment and their patent Blueberry-blue on the sole of every shoe. This positioning strategy is called A) premium brands. B) product symbolism. C) one voice. D) brand equity. E) repositioning.

29) “Money Backed Enterprises is a name you can trust.” This campaign slogan has strengthened consumer favor for the company’s products creating brand recognition of the Money Backed name and associated product line. This marketing program is an example of A) premium brands. B) product symbolism. C) one voice. D) brand equity. E) repositioning.

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

Version 1

31) GSI Distributors uses a team of sales representatives to reach out to resellers to purchase their products. They have recently started working with Innovation Marketers to create ads to be placed in reseller journals and newspapers. GSI Distributions is using A) promotional push strategy. B) indirect channels. C) promotional pull strategy. D) direct channels. E) trade advertising.

32) Sum Company uses a network to distribute their products to big club wholesale centers and a number of grocery chains. This type of promotional strategy is called A) promotional push strategy. B) indirect channel. C) promotional pull strategy. D) direct channel. E) trade advertising.

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

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

Version 1

A) development of a marketing strategy and analysis B) development of the target marketing process C) allocation of advertising budget D) development of the marketing planning program E) creation of a positioning strategy

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

36) A detailed assessment of the current marketing conditions facing the company, its product lines, or its individual brands is A) a matrix analysis. B) a micro analysis. C) a situation analysis. D) an opportunity analysis. E) a competitive analysis.

37) When Coca-Cola wanted to regain market share for its vitaminwater product lines, it based its marketing strategy on a ________, or a detailed assessment of the current marketing conditions facing the company, its product lines, and its individual brands.

Version 1

A) matrix analysis B) micro analysis C) situation analysis D) challenge analysis E) competitive analysis

38) Which term is best defined as areas where favorable demand trends exist, customer needs and wants are not being satisfied, and a company thinks it can compete effectively? A) market segmentations B) marketing channels C) marketing stubs D) market economics E) market opportunities

39)

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

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

Version 1

A) market opportunity. B) market aggregation. C) market assimilation. D) marketing buzz. E) market threat.

41) FunZone Inc. recognized that the ticketing process used at fair grounds was complicated and highly time consuming. The company identified and developed an easy-to-use SmartCard to make the ticketing process easier. Each swipe automatically deducts the cost of a ride. According to this scenario, FunZone has recognized a A) market opportunity. B) marketing buzz. C) marketing engagement. D) marketing channel. E) market threat.

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

43) ________ can be achieved through advertising that creates and maintains product differentiation and brand equity, as with the long-running advertising campaign for Michelin tires, which stressed security and performance.

Version 1

A) Market aggregation B) Marketing assimilation C) Brand extensions D) Competitive advantage E) Market disintermediation

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

45) Something unique or special a firm possesses or does that gives it an edge over other firms in a similar industry is known as A) competitor indexing. B) switch marketing. C) competitive advantage. D) marketing stub. E) bait-and-switch marketing.

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

Version 1

A) competitive advantage B) market opportunity C) micro advantage D) macro analysis E) marketing challenge

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

48)

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.

49)

The market segmentation process

Version 1

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

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

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

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

Version 1

53)

Which of the following is a geographic variable for segmentation of a market? A) family size B) occasion C) county D) age E) gender

54)

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

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

56) Brown's Frozen BBQ Sandwiches are made with goat meat drenched in a sweet onion sauce. These sandwiches would not be popular in Texas, where people prefer beef, or in Miami, where a mustard-based sauce is preferred. Based on the company’s desire to target specific regions, which segmentation approach would be best?

Version 1

A) demographic B) socioeconomic C) personality D) geographic E) behavioristic

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

58)

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

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

Version 1

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

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

62) When AARP, The Magazine, targets the 34 percent of the population who are 50+, it is using a ________ segmentation strategy. A) demographic B) socioeconomic C) behavior D) personality E) geographic

63)

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

Version 1

A) personality B) marital status C) values D) lifestyle E) region

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

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

66)

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

Version 1

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

68)

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

69)

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

70) Pluto Inc., a car manufacturer, makes high-end, expensive sports cars. The company targets people who live life in the fast lane and are generally considered to have flashy personalities. In this scenario, Pluto is using ________ segmentation.

Version 1

A) benefit B) psychographic C) socioeconomic D) undifferentiated E) demographic

71)

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

72) ________ 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

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

Version 1

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

75)

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

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

77)

The 80–20 rule states that

Version 1

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

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

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

Version 1

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

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

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

83)

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

Version 1

A) attributes sought B) income C) lifestyle D) birth era E) marital status

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

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

86)

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

Version 1

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

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

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

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

Version 1

A) Mass marketing B) Undifferentiated marketing C) Concentrated marketing D) Differentiated marketing E) Bait-and-switch marketing

91)

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

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

93) Pluto Inc., a high-end car manufacturer, makes only 12 cars per year. The company caters to the “super-rich” and manufacturers only on order. In this scenario, Pluto is using a(n) ________ marketing strategy.

Version 1

A) differentiated B) undifferentiated C) concentrated D) mass E) loyalty

94)

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

95) Outlander Inc. manufactures laptop computers that are targeted to users interested in video games. The computers are optimized for high-definition gaming and, hence, are expensive. By attempting to achieve a large share of a single market segment, which marketing strategy has Outlander adopted? A) bait-and-switch marketing B) undifferentiated marketing C) concentrated marketing D) buzz marketing E) differentiated marketing

96) ________ has been defined as “the art and science of fitting the product or service to one or more segments of the broad market in such a way as to set it meaningfully apart from competition.”

Version 1

A) Branding B) Proximity mapping C) Drip marketing D) Segmentation E) Positioning

97)

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

98)

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

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

Version 1

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

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

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

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

Version 1

A) cultural symbols. B) demographics. C) product class. D) product attributes. E) socioeconomics.

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

105) Henry's Supermarkets have been very effective in positioning themselves as stores that offer superior products at a discounted rate. Henry’s strategy reflects positioning based on A) benefit. B) applications. C) use. D) price/quality. E) product class.

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

Version 1

A) competition. B) demographics. C) product user. D) price/quality. E) product class.

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

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

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

Version 1

A) price/quality. B) use or application. C) product class. D) demographics. E) cultural symbols.

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

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

112) When Bauer Smith opened a men's shoe store, he decided to carry a full line of shoes in the larger, hard-to-find sizes. Today, his shoe store caters to professional basketball, baseball, and football players who often order a dozen pairs in a single visit. With respect to the positioning strategies, the shoe store uses positioning by

Version 1

A) demographics. B) cultural symbols. C) product user. D) competition. E) product class.

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

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

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

Version 1

A) positioning by product user B) positioning by product class C) positioning by competitor D) positioning by price/quality E) positioning by cultural symbol

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

117) Motor Corp., an automobile manufacturer, launched an ad campaign that stated, “We’re not in first place yet, so we try harder.” In this campaign, the company is positioning itself based on A) price/quality. B) use or application. C) competition. D) product class. E) distribution intensity.

118)

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

Version 1

A) price/quality. B) use or application. C) product class. D) distribution intensity. E) cultural symbols.

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

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

121)

Which of the following statements is true of repositioning?

Version 1

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

122) Which of the following marketing-mix elements refers to a bundle of benefits or values that satisfies the needs of consumers? A) price B) promotion C) people D) product E) process

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

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

Version 1

125)

Which of the following statements best defines “branding”?

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

126)

“Brand identity” is best defined as

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

127)

Which of the following statements is true of brand equity?

Version 1

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

128)

Which of the following statements best defines “brand equity”?

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

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

130)

Which of the following statements is true about packaging?

Version 1

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

131)

Promotional expenditures on advertising, sales promotion, and personal selling

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

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

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

Version 1

A) Marketing channels B) Marketing segments C) Marketing facilitators D) Marketing sectors E) Marketing programs

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

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

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

Version 1

A) Promotional pull strategies B) Bait marketing strategies C) Buzz marketing strategies D) Promotional push strategies E) Switch marketing strategies

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

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

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

Version 1

A) promotional pull strategies B) promotional push strategies C) trade advertising D) market harvesting strategies E) B2B advertising

140)

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

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

Version 1

Answer Key Test name: Chap 02_12e 1) FALSE Market opportunities are areas where there are favorable demand trends, where the company believes customer needs and opportunities are not being satisfied, and where it can compete effectively. 2) FALSE A typical target marketing process involves four basic steps: identifying markets with unfulfilled needs, segmenting the market, targeting specific segments, and positioning one's product or service through marketing strategies. 3) FALSE The more marketers segment the market, the more precise is their understanding of it. Market segmentation is dividing a market into distinct groups that (1) have common needs and (2) will respond similarly to a marketing action. 4) FALSE Often the competition for a product comes from outside the product class. Rather than positioning against another brand, an alternative strategy is to position oneself against another product category. 5) FALSE Trade advertising focuses on wholesalers and retailers and motivates them to purchase products for resale to their customers. An alternative strategy is a promotional pull strategy, which spends money on advertising and sales promotion efforts directed toward the ultimate consumer. Version 1

6) E Any organization that wants to exchange its products or services in the market place successfully should have a strategic marketing plan to guide the allocation of its resources. A strategic marketing plan usually evolves from an organization’s overall corporate strategy and serves as a guide for specific marketing programs and policies. 7) B Marketing strategy is based on a situation analysis a detailed assessment of the current marketing conditions facing the company, its product lines, or its individual brands. From this situation analysis, a firm develops an understanding of the market and the various opportunities it offers, the competition, and the market segments or target markets the company wishes to pursue. 8) D A market can rarely be viewed as one large homogeneous group of customers; rather, it consists of many heterogeneous groups, or segments. In recent years, many companies have recognized the importance of tailoring their marketing to meet the needs and demand trends of different market segments. 9) A Ways to achieve a competitive advantage include having quality products that command a premium price, providing superior customer service, having the lowest production costs and lower prices, or dominating channels of distribution. Competitive advantage can also be achieved through advertising that creates and maintains product differentiation and brand equity. 10) C

Version 1

Marketers rarely go after the entire market with one product, brand, or service offering. Rather, they pursue a number of different strategies, breaking the market into segments and targeting one or more of these segments for marketing and promotional efforts. When employing a target marketing strategy, the marketer identifies the specific needs of groups of people (or segments), selects one or more of these segments as a target, and develops marketing programs directed to each. 11) D A typical target marketing process involves four basic steps: identifying markets with unfulfilled needs, segmenting the market, targeting specific segments, and positioning one's product or service through marketing strategies. 12) C Target market identification isolates consumers with similar lifestyles, needs, and the like, and increases our knowledge of their specific requirements. The more marketers can establish this common ground with consumers, the more effective they will be in addressing these requirements in their communications programs. 13) B The more marketers segment the market, the more precise is their understanding of it. Market segmentation is dividing a market into distinct groups that (1) have common needs and (2) will respond similarly to a marketing action. 14) A In the geographic segmentation approach, markets are divided into different geographic units. These units may include nations, states, counties, or even neighborhoods. Consumers often have different buying habits depending on where they reside. Version 1

15) D When marketers divide the market on the basis of personality, lifecycles, and/or lifestyles, it is referred to as psychographic segmentation. 16) C The determination of lifestyles is usually based on an analysis of the activities, interests, and opinions (AIOs) of consumers. These lifestyles are then correlated with the consumers' product, brand, and/or media usage. 17) B Dividing consumers into groups according to their usage, loyalties, or buying responses to a product is behavioristic segmentation. For example, product or brand usage, degree of use (heavy vs. light), and/or brand loyalty are combined with demographic and/or psychographic criteria to develop profiles of market segments. 18) B A few consumers may buy a disproportionate amount of many products or brands. Industrial marketers refer to the 80–20 rule, meaning 20 percent of their buyers account for 80 percent of their sales volume, so 80 percent account for 20 percent of their sales. 19) D Differentiated marketing involves marketing in a number of segments, developing separate marketing strategies for each. 20) A Differentiated marketing involves marketing in a number of segments, developing separate marketing strategies for each. Concentrated marketing is used when the firm selects one segment and attempts to capture a large share of this market.

Version 1

21) C Positioning a product by associating it with a particular user or group of users is positioning by product user. 22) A Marketers often use price/quality characteristics to position their brands. One way they do this is with ads that reflect the image of a high-quality brand where cost, while not irrelevant, is considered secondary to the quality benefits derived from using the brand. Premium brands positioned at the high end of the market use this approach to positioning. 23) A Often the competition for a product comes from outside the product class. Rather than positioning against another brand, an alternative strategy is to position oneself against another product category. 24) A The competition approach positions the product by comparing it and the benefit it offers versus the competition. 25) C Dividing the market on the basis of demographic variables such as age, sex, family size, education, income, and social class is called demographic segmentation. 26) E Consumers generally purchase products to satisfy specific needs and/or wants. They are looking for products that provide specific benefits to satisfy these needs. Grouping consumers on the basis of attributes they seek in a product is known as benefit segmentation. 27) E

Version 1

Repositioning a product usually occurs because of declining or stagnant sales or because of anticipated opportunities in other market positions. Repositioning is often difficult to accomplish because of entrenched perceptions about and attitudes toward the product or brand. 28) B For many products, strong symbolic features and social and psychological meaning may be more important than functional utility. For example, clothing from designers such as Versace, Gucci, and Prada is often purchased on the basis of its symbolic meaning and image, particularly by teenagers and young adults. 29) D Brand equity can be thought of as an intangible asset of added value or goodwill that results from the favorable image, impressions of differentiation, and/or the strength of consumer attachment to a company name, brand name, or trademark. 30) C High relative ad expenditures should accompany premium prices, and low relative ad expenditures should be tailored to low prices. These results obviously support the IMC perspective that one voice must be conveyed. 31) E Trade advertising focuses on wholesalers and retailers and motivates them to purchase products for resale to their customers. The company may use trade advertising to interest wholesalers and retailers and motivate them to purchase its products for resale to their customers. Trade advertising usually appears in publications that serve the particular industry. 32) B Version 1

Most consumer-product companies distribute through indirect channels, usually a network of wholesalers and/or retailers. 33) B As the marketing and promotions process model shows, the marketing process begins with the development of a marketing strategy and analysis in which the company decides the product or service areas and particular markets where it wants to compete. 34) A As the marketing and promotions process model shows, the marketing process begins with the development of a marketing strategy and analysis in which the company decides the product or service areas and particular markets where it wants to compete. The company must then coordinate the various elements of the marketing mix into a cohesive marketing program that will reach the target market effectively. 35) B Market opportunities are areas where there are favorable demand trends, where the company believes customer needs and opportunities are not being satisfied, and where it can compete effectively. 36) C Marketing strategy is based on a situation analysis—a detailed assessment of the current marketing conditions facing the company, its product lines, or its individual brands. 37) C Marketing strategy is based on a situation analysis—a detailed assessment of the current marketing conditions facing the company, its product lines, or its individual brands. 38) E Version 1

Market opportunities are areas where there are favorable demand trends, where the company believes customer needs and opportunities are not being satisfied, and where it can compete effectively. 39) E A marketing strategy is based on a situation analysis—a detailed assessment of the current marketing conditions facing the company, its product lines, or its individual brands. 40) A In this scenario, CL Foods is taking advantage of a marketing opportunity. Market opportunities are areas where there are favorable demand trends, where the company believes customer needs and opportunities are not being satisfied, and where it can compete effectively. 41) A In this scenario, FunZone has identified a market opportunity. Market opportunities are areas where there are favorable demand trends, where the company believes customer needs and opportunities are not being satisfied, and where it can compete effectively. 42) C An important aspect of marketing strategy development is the search for a competitive advantage, something special a firm does or has that gives it an edge over competitors. 43) D An important aspect of marketing strategy development is the search for a competitive advantage, something special a firm does or has that gives it an edge over competitors. 44) A Version 1

Ways to achieve a competitive advantage include having quality products that command a premium price, providing superior customer service, having the lowest production costs and lower prices, or dominating channels of distribution. 45) C An important aspect of marketing strategy development is the search for a competitive advantage, something special a firm does or has that gives it an edge over competitors. 46) A An important aspect of marketing strategy development is the search for a competitive advantage, something special a firm does or has that gives it an edge over competitors. 47) C In this scenario, the addition of calcium gave the company a competitive advantage. An important aspect of marketing strategy development is the search for a competitive advantage, something special a firm does or has that gives it an edge over competitors. Ways to achieve a competitive advantage include having quality products that command a premium price, providing superior customer service, having the lowest production costs and lower prices, or dominating channels of distribution. 48) D The target marketing process involves four basic steps: identifying markets with unfulfilled needs, segmenting the market, targeting specific segments, and positioning one's product or service through marketing strategies. 49) B

Version 1

Market segmentation is dividing up a market into distinct groups that (1) have common needs and (2) will respond similarly to a marketing action. 50) D Market segmentation is dividing up a market into distinct groups that (1) have common needs and (2) will respond similarly to a marketing action. 51) A Market segmentation is dividing up a market into distinct groups that (1) have common needs and (2) will respond similarly to a marketing action. 52) E In the geographic segmentation approach, markets are divided into different geographic units. These units may include nations, states, counties, or even neighborhoods. 53) C In the geographic segmentation approach, markets are divided into different geographic units. These units may include nations, states, counties, or even neighborhoods. 54) B In the geographic segmentation approach, markets are divided into different geographic units. These units may include nations, states, counties, or even neighborhoods. 55) D

Version 1

This scenario is an illustration of geographic segmentation. In the geographic segmentation approach, markets are divided into different geographic units. These units may include nations, states, counties, or even neighborhoods. Consumers often have different buying habits depending on where they reside. Regional differences may exist in regard to food, drinks, attitudes toward foreign products, and the like. 56) D In this scenario, Brown's should use a geographic segmentation strategy. In the geographic segmentation approach, markets are divided into different geographic units. These units may include nations, states, counties, or even neighborhoods. Consumers often have different buying habits depending on where they reside. Regional differences may exist in regard to food, drinks, attitudes toward foreign products, and the like. 57) A This scenario is an illustration of geographic segmentation. In the geographic segmentation approach, markets are divided into different geographic units. These units may include nations, states, counties, or even neighborhoods. Consumers often have different buying habits depending on where they reside. Regional differences may exist in regard to food, drinks, attitudes toward foreign products, and the like. 58) D Dividing the market on the basis of demographic variables such as age, sex, family size, education, income, and social class is called demographic segmentation. 59) A Dividing a market on the basis of demographic variables such as age, gender, race, and life stage is called demographic segmentation. 60) B Version 1

Jim's Inc. is using a demographic segmentation strategy. Dividing a market on the basis of demographic variables such as age, sex, family size, education, income, and social class is called demographic segmentation. 61) B Venus Finance is using a demographic segmentation strategy. Dividing a market on the basis of demographic variables such as age, sex, family size, education, birth era, income, and social class is called demographic segmentation. 62) A Dividing a market on the basis of demographic variables such as age, sex, family size, education, birth era, income, and social class is called demographic segmentation. 63) B Dividing a market on the basis of demographic variables such as age, sex, marital status, birth era, and family size is called demographic segmentation. The variables used for segmentation here could be gender and lifecycle stage. 64) E In this scenario, Enliven is using both demographic and psychographic segmentation strategy. Dividing the market on the basis of demographic variables such as age, sex, family size, education, income, and social class is called demographic segmentation. Psychographic segmentation includes dividing people on the basis of activities and interests, like sports activity. 65) C Dividing the market on the basis of personality, values, and/or lifestyles is referred to as psychographic segmentation. Version 1

66) B Dividing the market on the basis of personality, lifecycles, and/or lifestyles is referred to as psychographic segmentation. 67) B In this scenario, Merry Inc. is using a psychographic strategy. Dividing the market on the basis of personality, values, and/or lifestyles is referred to as psychographic segmentation. 68) D The determination of lifestyles is usually based on an analysis of the activities, interests, and opinions (AIOs) of consumers. These lifestyles are then correlated with the consumers' product, brand, and/or media usage. 69) B Dividing the market on the basis of personality, lifecycles, and/or lifestyles is referred to as psychographic segmentation. 70) B This scenario is an illustration of psychographic segmentation. Dividing the market on the basis of personality, lifecycles, and/or lifestyles is referred to as psychographic segmentation. 71) A Dividing the market on the basis of personality, lifecycles, and/or lifestyles is referred to as psychographic segmentation. The determination of lifestyles is usually based on an analysis of the activities, interests, and opinions (AIOs) of consumers. 72) D Dividing consumers into groups according to their usage, loyalties, or buying responses to a product is behavioristic segmentation. Version 1

73) D Dividing consumers into groups according to their usage, loyalties, or buying responses to a product is behavioristic segmentation. 74) A Dividing consumers into groups according to their usage, loyalties, or buying responses to a product is behavioristic segmentation. 75) E Degree of use relates to the fact that a few consumers may buy a disproportionate amount of many products or brands. Industrial marketers refer to the 80–20 rule, meaning 20 percent of their buyers account for 80 percent of their sales volume. 76) B Dividing consumers into groups according to their usage, loyalties, or buying responses to a product is behavioristic segmentation. Degree of use relates to the fact that a few consumers may buy a disproportionate amount of many products or brands. Industrial marketers refer to the 80– 20 rule, meaning 20 percent of their buyers account for 80 percent of their sales volume. 77) A Dividing consumers into groups according to their usage, loyalties, or buying responses to a product is behavioristic segmentation. Degree of use relates to the fact that a few consumers may buy a disproportionate amount of many products or brands. Industrial marketers refer to the 80– 20 rule, meaning 20 percent of their buyers account for 80 percent of their sales volume. 78) D

Version 1

In this scenario, Dental Care is using a benefit segmentation strategy. In purchasing products, consumers are generally trying to satisfy specific needs and/or wants. They are looking for products that provide specific benefits to satisfy these needs. The grouping of consumers on the basis of attributes sought in a product is known as benefit segmentation and is widely used. 79) A The grouping of consumers on the basis of attributes sought in a product is known as benefit segmentation and is widely used. 80) A This scenario is an illustration of benefit segmentation. The grouping of consumers on the basis of attributes sought in a product is known as benefit segmentation and is widely used. 81) A This scenario is an illustration of benefit segmentation. The grouping of consumers on the basis of attributes sought in a product is known as benefit segmentation and is widely used. 82) B This scenario is an illustration of benefit segmentation. Grouping consumers on the basis of attributes sought in a product is known as benefit segmentation and is widely used. 83) A The grouping of consumers on the basis of attributes sought in a product is known as benefit segmentation and is widely used. 84) E Undifferentiated marketing involves ignoring segment differences and offering just one product or service to the entire market. Version 1

85) B In this scenario, Frosty Inc. is using an undifferentiated marketing strategy. Undifferentiated marketing involves ignoring segment differences and offering just one product or service to the entire market. 86) B Undifferentiated marketing involves ignoring segment differences and offering just one product or service to the entire market. 87) A Differentiated marketing involves marketing in a number of segments, developing separate marketing strategies for each. 88) E This scenario is an illustration of differentiated marketing. Differentiated marketing involves marketing in a number of segments, developing separate marketing strategies for each. 89) B The scenario reflects Chill's decision to cater to a differentiated market. Differentiated marketing involves marketing in a number of segments, developing separate marketing strategies for each. 90) C Concentrated marketing is used when a firm selects one segment and attempts to capture a large share of the market. 91) B Concentrated marketing is used when a firm selects one segment and attempts to capture a large share of that market. 92) D

Version 1

This scenario is an illustration of concentrated marketing. Concentrated marketing is used when a firm selects one segment and attempts to capture a large share of the market. 93) C This scenario is an illustration of concentrated marketing. Concentrated marketing is used when a firm selects one segment and attempts to capture a large share of the market. 94) C Concentrated marketing is used when a firm selects one segment and attempts to capture a large share of the market. 95) C In this scenario, Outlander has adopted a concentrated marketing strategy. Concentrated marketing is used when a firm selects one segment and attempts to capture a large share of the market. 96) E Positioning has been defined as “the art and science of fitting the product or service to one or more segments of the broad market in such a way as to set it meaningfully apart from competition.” 97) D Positioning has been defined as “the art and science of fitting the product or service to one or more segments of the broad market in such a way as to set it meaningfully apart from competition.” 98) C The position of the product, service, or even store is the image that comes to mind and the attributes consumers perceive as related to it. 99) B

Version 1

Positioning relates to the image of a product and/or brand relative to competing products or brands. The position of the product or brand is the key factor in communicating the benefits it offers and differentiating it from the competition. 100) A In this scenario, Momentum is using a positioning strategy based on product attributes. A common approach to positioning is setting the brand apart from competitors on the basis of the specific characteristics or benefits offered. Sometimes a product may be positioned on more than one product benefit. 101) B In this scenario, Baker Grill is using a positioning strategy based on product attributes and benefits. A common approach to positioning is setting the brand apart from competitors on the basis of the specific characteristics or benefits offered. Sometimes a product may be positioned on more than one product benefit. 102) B In this scenario, MusC is using a strategy based on product attributes and benefits. A common approach to positioning is setting the brand apart from competitors on the basis of the specific characteristics or benefits offered. Sometimes a product may be positioned on more than one product benefit. 103) D In this scenario, Flash Parcel Service is using a positioning strategy based on product attributes. A common approach to positioning is setting the brand apart from competitors on the basis of the specific characteristics or benefits offered. Sometimes a product may be positioned on more than one product benefit. Version 1

104) D This scenario illustrates a positioning strategy based on product attributes and benefits. A common approach to positioning is setting the brand apart from competitors on the basis of the specific characteristics or benefits offered. Sometimes a product may be positioned on more than one product benefit. 105) D In this scenario, Henry's Supermarkets is using a positioning strategy based on price. Marketers often use price/quality characteristics to position their brands. One way to use price/quality characteristics for positioning is to focus on the quality or value offered by the brand at a very competitive price. 106) D This scenario is an illustration of a positioning strategy based on price. Marketers often use price/quality characteristics to position their brands. One way to use price/quality characteristics for positioning is to focus on the quality or value offered by the brand at a very competitive price. 107) B This scenario is an illustration of a positioning strategy based on product use. One way to communicate a specific image or position for a brand is to associate it with a specific use or application. While this strategy is often used to enter a market on the basis of a particular use or application, it is also an effective way to expand the usage of a product. 108) B

Version 1

This scenario illustrates a positioning strategy based on use or application. One way to communicate a specific image or position for a brand is to associate it with a specific use or application. While this strategy is often used to enter a market on the basis of a particular use or application, it is also an effective way to expand the usage of a product. 109) B This scenario illustrates a positioning strategy based on use or application. One way to communicate a specific image or position for a brand is to associate it with a specific use or application. While this strategy is often used to enter a market on the basis of a particular use or application, it is also an effective way to expand the usage of a product. 110) A This scenario is an illustration of a positioning strategy based on product class. Often the competition for a product comes from outside the product class. For example, airlines know that while they compete with other airlines, trains and buses are also viable alternatives. 111) A This scenario is an illustration of a positioning strategy based on product class. The competition for a product comes from outside the product class. For example, Dole fruit juices encourage consumers to “drink their fruits,” claiming that 8 ounces of juice is the equivalent of two fruits and V8 promotes drinking one's vegetables. Rather than positioning against another brand, an alternative strategy is to position oneself against another product category. 112) C

Version 1

In this scenario, Bauer Smith used a positioning strategy based on product user. Positioning a product by associating it with a particular user or group of users is an approach to positioning. An example would be the Globe Shoes ad that emphasizes identification or association with a specific group of skateboarders. 113) A In this scenario, Premium Sports Apparels used a positioning strategy based on product user. Positioning a product by associating it with a particular user or group of users is an approach to positioning. An example would be the Globe Shoes ad that emphasizes identification or association with a specific group of skateboarders. 114) C In this scenario, Yummy Soups used a positioning strategy based on competitors. Competitors may be as important to positioning strategy as a firm's own product or services. Advertisers used to think it was a cardinal sin to mention a competitor in their advertising. However, in today's market, an effective positioning strategy for a product or brand may focus on specific competitors. This approach is similar to positioning by product class, although in this case the competition is within the same product category. 115) C Competitors may be as important to positioning strategy as a firm's own product or services. Advertisers used to think it was a cardinal sin to mention a competitor in their advertising. However, in today's market, an effective positioning strategy for a product or brand may focus on specific competitors. This approach is similar to positioning by product class, although in this case the competition is within the same product category.

Version 1

116) C This scenario is an illustration of a positioning strategy based on cultural symbols. An additional positioning strategy uses cultural symbols to differentiate brands. By associating the brand with a meaningful symbol, the brand is easily identifiable and differentiated from others. 117) C This scenario is an illustration of a positioning strategy based on competitors. Competitors may be as important to positioning strategy as a firm's own product or services. Advertisers used to think it was a cardinal sin to mention a competitor in their advertising. However, in today's market, an effective positioning strategy for a product or brand may focus on specific competitors. 118) E Each of these symbols has successfully differentiated the product it represents from competitors' products. 119) A In this scenario, Venus is using a repositioning strategy. Repositioning a product usually occurs because of declining or stagnant sales or because of anticipated opportunities in other market positions. Repositioning is often difficult to accomplish because of entrenched perceptions about and attitudes toward the product or brand. 120) A In this scenario, Flash Parcel Service used a repositioning strategy. Repositioning a product usually occurs because of declining or stagnant sales or because of anticipated opportunities in other market positions. Repositioning is often difficult to accomplish because of entrenched perceptions about and attitudes toward the product or brand. 121) E Version 1

Repositioning is a positioning strategy that involves altering or changing a product's or brand's position. Repositioning a product usually occurs because of declining or stagnant sales or because of anticipated opportunities in other market positions. 122) D A product is not just a physical object; it is a bundle of benefits or values that satisfies the needs of consumers. 123) D A product is anything that can be marketed and that, when used or supported, gives satisfaction to the individual. 124) D The term product symbolism refers to what a product or brand means to consumers and what they experience in purchasing and using it. 125) D Branding is about building and maintaining a favorable identity and image of the company and/or its products or services in the mind of the consumer. 126) C The brand identity consists of the combination of the name, logo, symbols, design, packaging, and image of associations held by consumers. 127) D

Version 1

Brand equity can be thought of as an intangible asset of added value or goodwill that results from the favorable image, impressions of differentiation, and/or the strength of consumer attachment to a company name, brand name, or trademark. Brand equity allows a brand to earn greater sales volume and/or higher margins than it could without the name, providing the company with a competitive advantage. 128) C One important role of advertising in respect to branding strategies is creating and maintaining brand equity, which can be thought of as an intangible asset of added value or goodwill that results from the favorable image, impressions of differentiation, and/or the strength of consumer attachment to a company name, brand name, or trademark. 129) B The price variable refers to what the consumer must give up to purchase a product or service. 130) D The package is often the consumer's first exposure to the product, so it must make a favorable first impression. 131) D Factors such as product quality, competition, and advertising all interact in determining what price a firm can and should charge. Studies have shown that pricing and advertising strategies go together. High relative ad expenditures should accompany premium prices, and low relative ad expenditures should be tailored to low prices. 132) E

Version 1

Factors such as product quality, competition, and advertising all interact in determining what price a firm can and should charge. Studies have shown that pricing and advertising strategies go together. High relative ad expenditures should accompany premium prices, and low relative ad expenditures should be tailored to low prices. 133) A Marketing channels, the place element of the marketing mix, are “sets of interdependent organizations involved in the process of making a product or service available for use or consumption.” 134) A In this scenario, Dezine is using a direct channel of distribution. A company can choose not to use any channel intermediaries but, rather, to sell to its customers through direct channels. This type of channel arrangement is sometimes used in the consumer market by firms using direct-selling programs. 135) B In this scenario, Breeze Corp. is using an indirect channel of distribution. Most consumer-product companies distribute through indirect channels, usually using a network of wholesalers (institutions that sell to other resellers) and/or retailers (that sell primarily to the final consumer). 136) D Programs designed to persuade the trade to stock, merchandise, and promote a manufacturer's products are part of a promotional push strategy. The goal of this strategy is to push the product through the channels of distribution by aggressively selling and promoting the item to the resellers, or trade. 137) E Version 1

In this scenario, Mars Inc. used a promotional push strategy. Programs designed to persuade the trade to stock, merchandise, and promote a manufacturer's products are part of a promotional push strategy. The goal of this strategy is to push the product through the channels of distribution by aggressively selling and promoting the item to the resellers, or trade. 138) A This scenario is an illustration of trade advertising. A company may use trade advertising to interest wholesalers and retailers and motivate them to purchase its products for resale to their customers. Trade advertising usually appears in publications that serve the particular industry. 139) A Promotional pull strategy involves spending money on advertising and sales promotion efforts directed toward the ultimate consumer. 140) B The goal of a pull strategy is to create demand among consumers and encourage them to request the product from the retailer. Seeing the consumer demand, retailers will order the product from wholesalers (if they are used), which in turn will request it from the manufacturer. 141) A The goal of a pull strategy is to create demand among consumers and encourage them to request the product from the retailer. Seeing the consumer demand, retailers will order the product from wholesalers (if they are used), which in turn will request it from the manufacturer.

Version 1

CHAPTER 3 MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 1) The key participant that provides the funds to pay for the integrated marketing communications (IMC) process is the A) client. B) advertising agency. C) media organization. D) specialized communication service. E) collateral service.

2) An outside firm that specializes in creating, producing, and/or placing the client's communications message and may also provide other services to facilitate the marketing and promotions process is A) a sales promotion agency. B) a collateral services agency. C) a public relations agency. D) an advertising agency. E) a direct-response agency.

3) When a single agency has primary responsibility for most of the IMC services for a company or a brand, such as brand and creative strategy, media planning, developing and maintaining websites, and digital marketing, it is called the A) sales promotion agency. B) public relations firm. C) agency of record. D) interactive agency. E) direct-response agency.

Version 1

4) To a promotional planner, the primary purpose of media is to offer content that attracts consumers and thus provide a platform for A) information and entertainment to subscribers. B) client services and support. C) advertising agencies. D) the firm's marketing communication messages. E) special services to the organization.

5) Which of the following organizations provide specialized marketing communication services? A) television broadcast services B) radio stations C) advertising agencies D) communication firms E) digital/interactive agencies

6) Firms that provide a wide range of support functions used by advertisers, agencies, media organizations, and specialized marketing communication firms are A) media organizations. B) collateral services organizations. C) advertising agencies. D) agencies of record. E) specialized marketing communication services.

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

Version 1

A) research manager B) finance manager C) advertising manager D) sales manager E) product planning manager

8) Under which type of system does the advertising or marcom manager control the entire promotions operation? A) a preset system B) a manual system C) an automated system D) a centralized system E) a decentralized system

9) When large corporations with multiple divisions and many different products/services and brands find it difficult to manage all the advertising, promotional, and other functions, they often use A) a preset system. B) a manual system. C) an automated system. D) a centralized system. E) a decentralized system.

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

Version 1

A) service manager. B) advertising manager. C) promotions manager. D) product manager. E) system manager.

11) A manager who is concerned with the strategic role of the company’s various brands in order to build profits and market share while overseeing the management of an entire product category is called A) a brand manager. B) an advertising manager. C) a promotions manager. D) a product manager. E) a category manager.

12) The internal creative department that handles the design of weekly circulars, direct-mail pieces, in-store displays, promotions, and other marketing material for a large organization, like retail giant Target, is known as an A) intra-departmental agency. B) in-store agency. C) in-between agency. D) in-house agency. E) inter-departmental agency.

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

Version 1

A) revenues B) capital C) currency D) incomes E) billings

14) Changes in the advertising industry that began in the late 1980s led to a new type of consolidated agency to provide clients with integrated marketing communications services worldwide. These new agencies became known as A) international agencies. B) superagencies. C) grand agencies. D) great agencies. E) worldwide agencies.

15) An advertising agency that offers clients a one-stop shop with a full range of marketing, communications, and promotion services—including planning, creating, and producing the advertising, performing research, and selecting media—is called A) a full-service agency. B) an in-house agency. C) an intra-departmental agency. D) an in-service agency. E) an inter-departmental agency.

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

Version 1

A) marketing executive. B) advertising executive. C) promotions executive. D) agency executive. E) account executive.

17) The individual in a large agency who gathers information about a client's consumers and marketplace, working with the client as well as other agency personnel, including the account executives, creative team members, research department personnel, and media specialists, is the A) marketing planner. B) advertising planner. C) promotions planner. D) agency planner. E) account planner.

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

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

Version 1

A) an intradepartmental system. B) a group system. C) a departmental system. D) a commercial system. E) an interdepartmental system.

20) When a large agency uses ________, individuals from each department work together in teams led by an account executive or supervisor to service a particular account. A) an intradepartmental system B) a group system C) a departmental system D) a commercial system E) an interdepartmental system

21) A small, specialized ad agency with writers and artists on staff but without media, research, or account planning capabilities is A) a media boutique. B) a copywriter boutique. C) a centralized boutique. D) a creative boutique. E) an advertising boutique.

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

Version 1

A) an advertising specialist company. B) a campaign specialist company. C) a digital specialist company. D) a media specialist company. E) a purchasing specialist company.

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

24) The traditional way to compensate agencies, where media pay the agency a specified percentage of the cost of any advertising time or space it purchases for its client, is called the A) value-based system. B) percentage charges system. C) incentive-based system. D) commission system. E) cost-plus system.

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

Version 1

A) a value-based commission. B) a negotiated commission. C) an incentive-based commission. D) a fixed-fee-based commission. E) a cost-plus commission.

26) Many agencies and their clients have moved away from the commission system and developed other arrangements for agency compensation. An arrangement where an agency charges a basic fee for all of its services and credits to the client any media commissions earned is called a A) percentage-charge method. B) fee-commission method. C) incentive-based method. D) fixed-fee method. E) cost-plus method.

27) In a(n) ________ arrangement, the agency charges the client a fee for services and credits any commissions received against the fee. If the commissions are less than the fee, the client must make up the difference. A) percentage-charge commission combination B) fee-commission combination C) incentive-based commission combination D) fixed-fee commission combination E) cost-plus commission combination

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

Version 1

A) percentage-charges system B) fee-commission system C) incentive-based system D) fixed-fee system E) cost-plus system

29) Some compensation agreements pay an agency above its basic costs—determined by tasks that the agency is expected to perform, staffing required, and hourly rates—if it meets or exceeds agreed-upon goals. A compensation agreement that ties compensation to performance is called A) a percentages-charges system. B) a fee-commission system. C) an incentive-based system. D) a fixed-fee system. E) a cost-plus system.

30) Outside providers of market research, artwork, printing, photography, and other services or materials do not allow agencies to take a commission. To cover the cost of administering these services while making a reasonable profit for their efforts, agencies apply a mark-up called A) percentage charges. B) commission charges. C) incentive charges. D) fixed-fee charges. E) cost-plus charges.

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

Version 1

A) financial audit. B) qualitative audit. C) quantitative audit. D) revenue audit. E) capital audit.

32) As part of a client’s review of agency performance, a ________ focuses on how well the agency has planned, developed, and implemented the client's advertising programs and the results achieved. A) financial audit B) qualitative audit C) quantitative audit D) revenue audit E) capital audit

33) Companies today communicate with consumers through telemarketing, direct mail, television, the Internet, and other forms of direct-response advertising. A ________ provides a variety of services to clients, including database analytics and management, direct mail, research, media service, and creative and production capabilities. A) sales promotion agency B) digital agency C) public relations agency D) direct-marketing agency E) direct-advertising agency

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

Version 1

A) sales promotion agencies. B) digital agencies. C) public relations agencies. D) direct marketing agencies. E) direct advertising agencies.

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

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

37) Momentum Automobiles, an automobile manufacturer, hires Dreams Inc. to cater to its advertising needs. Momentum is only required to provide the necessary finances and does not take part in any decision making. In this scenario, Momentum Automobiles would be classified as

Version 1

A) a client. B) an illustrator. C) a full-service agency. D) an advertising agency. E) a media organization.

38)

In the ad agency industry, “client” refers to

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

39) An outside firm that specializes in creating, producing, and/or placing communications messages and may provide other marketing and promotions-related services is A) a media organization. B) a sales promotion firm. C) a research organization. D) an advertising agency. E) a creative boutique.

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

Version 1

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

41)

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

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

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

Version 1

A) advertising agencies B) media organizations C) collateral service agencies D) specialized marketing communications services agencies E) bait-and-switch marketing service agencies

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

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

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

Version 1

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

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

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

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

Version 1

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

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

51)

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

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

Version 1

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

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

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

Version 1

A) brand manager B) media manager C) collateral services provider D) account executive E) sales manager

55) Under a decentralized system, the advertising department is generally a part of which larger group? A) finance B) sales C) product development D) marketing services E) research and development

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

57) When Procter & Gamble, Unilever, PepsiCo, Google, and Nestle assign each product/service or brand to a brand manager who is responsible for the total management of the brand, including planning, budgeting, sales, and profit performance, these companies are using a ________ system.

Version 1

A) finance B) sales C) decentralized D) centralized E) product

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

59)

A company often uses a decentralized organizational system when

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

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

Version 1

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

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

62)

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

63)

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

Version 1

A) maintain creative freshness. B) reduce advertising and promotions costs. C) reduce the threat of potential lawsuits. D) make use of top creative talent. E) reduce the number of product lines.

64)

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

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

66)

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

Version 1

67)

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

68)

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

69) 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.

70)

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

Version 1

71) ENT advertising and marketing is one of the top 500 U.S. agencies that handles nearly two-thirds of domestic ________. ENT is known for their unique methods and thoughtful methods in handling the amount of client money they spend on purchasing media and related activities. A) billings B) media commissions C) retainers D) activity fees E) ad traffic compensation

72)

Superagencies were formed

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

73)

Which of the following statements is true about superagencies?

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

Version 1

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

75)

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

image.

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

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

A) a creative boutique. B) a media buying service. C) an account service agency. D) a full-service agency. E) a buzz marketing agency.

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

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

80)

Which of the following statements is true about account services?

Version 1

A) It is an in-house service for the advertisement agency that is independent of its clients' obligations. B) It is an advertising agency that solely provides media space and time. C) It provides the creative team with in-depth storyboards. D) It is a research department in the advertising agency that helps create the advertising message for the client. E) It is the link between the advertising agency and its clients.

81) Animate is a small company that has outgrown their initial personnel infrastructure. Human Resources has recommended that instead of creating a new department, they seek an agency to help coordinate planning, creating, and producing advertising. The position that will serve as the liaison to understand and interpret the market and Animate’s promotional needs to agency personnel is A) an account executive. B) a database manager. C) a media specialist. D) a copywriter. E) an art director.

82)

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

83) In a full-service agency, the function of gathering, analyzing, and interpreting information that is useful in developing advertising is the responsibility of the ________ department.

Version 1

A) audit B) personnel C) media D) account management E) research

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

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

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

Version 1

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

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

88)

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

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

Version 1

A) a copywriter B) an art director C) an account planner D) an account executive E) a media planner

90)

91) Drawings that show what the print ad will look like and from which the final artwork will be produced are called A) creative briefs. B) packshots. C) layouts. D) art infusions. E) product sheets.

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

Version 1

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

94) To the creative services department of a full-service agency, the layout for a TV commercial is known as A) a storyboard. B) a logo. C) an art infusion. D) a packshot. E) a creative brief.

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

Version 1

96) Which of the following departments in a full-service agency is responsible for developing and executing advertisements? A) traffic department B) account services department C) media planning department D) creative services department E) production department

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

98)

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

99)

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

Version 1

A) media costs. B) employee salaries and benefits. C) sales promotions. D) production overheads. E) market research.

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

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

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

Version 1

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

103)

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

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

105)

Which of the following statements is true about creative boutiques?

A) They generally have media, research, and account planning capabilities. B) They are large ad agencies that provide all types of advertising and promotion services. C) They often subcontract work to full-service agencies. D) They tend to provide quicker, innovative services due to less bureaucracy. E) They are generally characterized by extensive internal politics.

Version 1

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

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

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

109)

Defenders of the commission system for agency compensation argue that

Version 1

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

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

111) A compensation system in which agency commissions average from 8 to 10 percent or are based on a sliding scale that becomes lower as the clients' media expenditures increase is the A) negotiated commission system. B) fixed-fee commission system. C) cost-plus commission system. D) incentive commission system. E) pro-rata commission system.

112)

Which of the following statements is true about agency commissions?

Version 1

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

113)

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

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

115)

The fixed-fee method of compensation is also called the

Version 1

A) objective-and-task method. B) value-based compensation. C) incentive-based compensation. D) cost-plus fee method. E) straight-fee method.

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

117)

Under which system is the agency’s compensation tied to performance? A) fixed-fee system B) incentive-based system C) cost-plus system D) negotiated commission system E) straight-fee system

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

Version 1

119) Geo laboratories is seeking an agency with a commission structure based on media commissions. They have agreed that if the media commissions do not bring in an agreed-upon fee, Geo will pay the agency the difference. This is called a ________ compensation system. A) fixed-fee and cost-plus combination B) fee-commission combination C) fee plus value-based combination D) cost-plus combination E) straight-fee and value-based combination

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

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

Version 1

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

123) Productivity Advertising Agency has recently been acquired by the Inspiration Agency. To see how well Productivity Advertising has lived up to its name, Inspiration Agency wants to assess the planning, developing, implementation, and evaluation of results achieved for their clients’ advertising programs. Inspiration Agency has chosen to conduct a ________ audit. A) quantitative B) social C) financial D) qualitative E) contract-grant

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

125)

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

Version 1

A) a social media consultant. B) an ad agency review consultant. C) an ad agency account representative. D) a brand manager. E) an ad agency compensation specialist.

126)

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

127) Agencies that specialize in offering services like database management that also create, produce, and disseminate different types of communications going straight to target customers are called A) digital-interactive agencies. B) sales promotion agencies. C) direct-marketing agencies. D) public relations firms. E) creative boutiques.

128) Venus Corp. is an agency that specializes in providing media services, direct mail, database management, and research services. It also offers creative and production services to its clients. In this scenario, Venus is an example of

Version 1

A) a creative boutique. B) a public relations agency. C) a digital-interactive agency. D) a direct-marketing agency. E) a sales promotion agency.

129) ________ specialize in developing and managing sweepstakes, refund and rebate offers, and incentive programs. A) Sales promotion agencies B) Direct-response agencies C) Creative boutiques D) Interactive agencies E) Collateral agencies

130) WriteOn Stationery is new in the market. They have hired a specialized agency to coordinate a promotional program. Consumers can mail in Universal Product Codes from three WriteOn products to receive a free Redbox movie rental. What kind of agency did WriteOn hire? A) sales promotion agency B) collateral agency C) creative boutique D) interactive agency E) direct-response agency

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

Version 1

A) direct-marketing B) collateral C) boutique D) interactive E) sales promotion

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

133) To develop and implement programs to manage its image and affairs with consumers and other relevant audiences, an organization would hire a A) PR agency. B) sales promotion agency. C) media mix organization. D) creative boutique. E) direct-response agency.

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

Version 1

A) a digital agency B) a marketing research firm C) an interactive agency D) a public relations firm E) a sales promotion agency

135)

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

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

137)

Which of the following is a collateral services provider? A) public relation firm B) sales promotion agency C) digital marketing agency D) full-service interactive agency E) market research firm

Version 1

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

139)

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

140)

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

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

Version 1

A) IMC often results in greater economies of scale. B) Since each communication discipline has the same cost structure, the concept of IMC itself becomes invalid. C) IMC is only compatible with smaller organizations and compatibility issues occur when the process is scaled up. D) The implementation of IMC is most likely to result in interdepartmental budget allocations problems. E) There are not enough people with the requisite broad perspective and skills to implement IMC.

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

143) PB Corporation is seeking to improve their advertising presence by adding digitized billboards. Their agency has been getting a traditional 15 percent commission for advertising, but for outdoor advertising, the agency receives 16⅔ percent. This ________ provides a simple method of determining payments. A) fixed-fee system B) digital commission system C) media-plus system D) cost-plus system E) commission system

Version 1

144) TRS Industries has noticed their competition is using automated media buying for both digital and social media then benefiting from the data analytics vital to marketers in the new digital era. TRS Industries decides they must move away from their traditional ________, the single agency given primary responsibility for most of their IMC services, and instead find partners using a variety to tools to evaluate their IMC campaign and the associated data. A) sales promotion agency B) public relations firm C) agency of record D) interactive agency E) direct-response agency

Version 1

Answer Key Test name: Chap 03_12e 1) A The advertisers, or clients, are the key participants in the IMC process. They have the products, services, or causes to be marketed and they provide the funds that pay for the IMC program. 2) D Many organizations use an advertising agency, an outside firm that that specializes in the creation, production, and/or placement of the communications message and may provide other services to facilitate the marketing and promotions process. 3) C Many companies have an agency of record (AOR), a single agency that has primary responsibility for most of the IMC services that a company or brand might require, such as brand and creative strategy, media planning, development and maintenance of websites and digital marketing. 4) D The primary function of media organizations is to provide information or entertainment to their subscribers, viewers, or readers. But from the perspective of the promotional planner, the purpose of media is to provide an environment for the firm's marketing communications message. 5) E

Version 1

Organizations that provide specialized marketing communication services in their areas of expertise include direct-marketing agencies, sales promotion agencies, digital/interactive agencies, and public relations firms. 6) B Collateral services organizations provide a wide range of support functions used by advertisers, agencies, media organizations, and specialized marketing communication firms. 7) C While many people both inside and outside the organization have some input into the advertising and promotion process, direct responsibility for administering the program must be assumed by someone within the firm—the advertising manager. 8) D In the most common example of a centralized system, the advertising or marcom manager controls the entire promotions operation, including budgeting, coordinating creation and production of ads, planning media schedules, and monitoring and administering the sales promotions programs for all the company's products or services. 9) E In large corporations with multiple divisions and many different products/services and brands, it is difficult to manage all the advertising, promotional, and other functions though a centralized department. These types of companies generally have a decentralized system, with separate sales and marking departments for various divisions, product lines, or businesses. 10) D

Version 1

Many companies that use a decentralized system, such as Procter and Gamble, Unilever, PepsiCo, Google, and Nestle, assign each product/service or brand to a brand manager who is responsible for the total management of the brand, including planning, budgeting, sales, and profit performance. The term product manager is also used to describe this position. 11) E Some companies may have an additional layer(s) of management above the brand managers to coordinate the efforts of all the brand managers handling a related group of products. This layer includes category managers as well as brand and advertising managers. The category manager oversees management of the entire product category and focuses on the strategic role of the various brands in order to build profits and market share. 12) D An in-house agency is an advertising agency that is set up, owned, and operated by the advertiser. 13) E Nearly two-thirds of the domestic billings are handled by the top 500 agencies. Just 10 U.S. agencies handle nearly 30 percent of the total volume done by the top 900 agencies in the United States. 14) B During the late 1980s and into the 1990s, the advertising industry underwent major changes as large agencies merged with or acquired other agencies and support organizations to form large advertising organizations, or superagencies. These superagencies were formed so that agencies could provide clients with integrated marketing communications services worldwide. Version 1

15) A Many companies employ what is known as a full-service agency, which offers its clients a full range of marketing, communications, and promotion services, including planning, creating, and producing the advertising, performing research, and selecting media. 16) E Account services, or account management, is the link between the ad agency and its clients. Depending on the size of the client and its advertising budget, one or more account executives serve as the liaison. The account executive is responsible for understanding the advertiser's marketing and promotion needs and interpreting them to agency personnel. 17) E Account planners work with the client as well as other agency personnel including the account executives, creative team members, media specialists, and research department personnel to collect information that can be helpful in gaining a better understanding of the client's target audience and the best ways to communicate with them. 18) C The individuals who conceive the ideas for the ads and write the headlines, subheads, and body copy (the words constituting the message) are known as copywriters. They may also be involved in determining the basic appeal or theme of the ad campaign and often prepares a rough initial visual layout of the print ad or television commercial. 19) C

Version 1

Most medium- to large-sized agencies are structured under either a departmental or a group system. Under the departmental system, each agency function is set up as a separate department and called on as needed to perform its specialty and serve all the agency's clients. 20) B Many large agencies use the group system, in which individuals from each department work together in groups to service particular accounts. The group may also include individuals from other departments such as marketing research, direct marketing, or sales promotion. 21) D Creative boutiques are small ad agencies that provide only creative services and have long been an important part of the advertising industry. These specialized agencies have creative personnel such as writers and artists on staff but do not have media, research, or account planning capabilities. 22) D Media specialist companies are organizations that specialize in the buying of media, particularly for television and digital advertising. The task of purchasing advertising media has grown more complex, especially with the fragmentation of media audiences and the growth of digital media. 23) D Programmatic buying has grown, in part because of the wide range of technologies that are automating the buying, placement, and optimization of advertising media. Programmatic buying originated in the purchase of digital advertising space where myriad options are available to marketers and the purchase process is automated and often based on real-time bidding. Version 1

24) D The traditional method of compensating agencies is through a commission system, where the agency receives a specified commission (usually 15 percent) from media on any advertising time or space it purchases for its client. Proponents of the commission system argue that the system is more flexible than it appears as agencies often perform other services for large clients at no extra charge as a way of justifying the large commission they receive. Critics suggest it encourages agencies to recommend high-priced media to their clients to increase commission levels. 25) B Companies began moving away from the traditional commission system in the 1990s, and most advertisers no longer use it as a basis for compensating their agencies. Most advertisers use a negotiated commission system in which the commissions are based on a sliding scale that becomes lower as the clients' media expenditures increase. 26) D Since many believe the commission system is not equitable to all parties, many agencies and their clients have developed some type of fee arrangement or cost-plus agreement for agency compensation. One type of arrangement is the straight or fixed-fee method in which the agency charges a basic fee for all of its services and credits any media commissions earned to the client. 27) B Sometimes agencies are compensated through a fee-commission combination, in which the media commissions received by the agency are credited against the fee. If the commissions are less than the fee, the client must make up the difference.

Version 1

28) E In the cost-plus system, direct costs (personnel time and out-of-pocket expenses) plus an allocation for overhead and a markup for profits determine the amount the agency bills the client. The agency must keep detailed records of the costs it incurs in working on the client's account. 29) C Many clients are demanding more accountability from their agencies and tying agency compensation to performance through some type of incentive-based system. While there are many variations, the basic idea is that the agency's ultimate compensation level will depend on how well it meets predetermined performance goals. 30) A One way to compensate an agency is by adding a markup of percentage charges to various services the agency purchases from outside providers. These may include market research, artwork, printing, photography, and other services or materials. Suppliers of these services do not allow the agency a commission, percentage charges cover administrative costs while allowing a reasonable profit for the agency's efforts. 31) A Given the substantial amounts of money spent on advertising and promotion, demand for accountability of the expenditures has increased. Regular reviews of an agency's performance are necessary. The financial audit focuses on how the agency conducts its business. It is designed to verify costs and expenses, the number of personnel hours charged to an account, and payments to media and outside suppliers. 32) B

Version 1

The qualitative audit focuses on the agency's efforts in planning, developing, and implementing the client's advertising programs and considers the results achieved. 33) D One of the fastest-growing areas of IMC is direct marketing, where companies communicate with consumers through telemarketing, direct mail, television, the Internet, and other forms of direct-response advertising. Direct-marketing agencies provide a variety of services, including database analytics and management, direct mail, research, media service, and creative and production capabilities. 34) A Most companies use a sales promotion agency to develop and administer contests, sweepstakes, refunds and rebates, premium and incentive offers, and sampling programs because of their complexity. 35) D Many large companies use both an advertising agency and a public relations (PR) firm. The public relations firm develops and implements programs to manage the organization's publicity, image, and affairs with consumers and other relevant publics, including employees, suppliers, stockholders, government labor groups, citizen actions groups, and the general public. 36) E

Version 1

With the rapid growth of the Internet and other forms of media, a new type of specialized marketing communications organization has evolved to meet the changing needs of marketers. Many marketers are using digital agencies that specialize in the use of various digital marketing tools such as website design and development, apps, search engine optimizations (SEO), banner ads, video, mobile marketing and social media campaigns. 37) A In the given scenario, Momentum Automobiles would be classified as a client. The advertisers, or clients, are the key participants in the integrated marketing communications process. They have the products, services, or causes to be marketed, and they provide the funds that pay for advertising and promotions. 38) A The advertisers, or clients, are the key participants in the integrated marketing communications process. They have the products, services, or causes to be marketed, and they provide the funds that pay for advertising and promotions. 39) D Many organizations use an advertising agency, an outside firm that specializes in the creation, production, and/or placement of the communications message and that may provide other services to facilitate the marketing and promotions process. 40) C

Version 1

Media organizations are another major participant in the advertising and promotions process. The primary function of most media is to provide information or entertainment to their subscribers, viewers, or readers. But from the perspective of the promotional planner, the purpose of media is to provide an environment for the firm's marketing communications message. 41) C Media organizations are another major participant in the advertising and promotions process. The primary function of most media is to provide information or entertainment to their subscribers, viewers, or readers. But from the perspective of the promotional planner, the purpose of media is to provide an environment for the firm's marketing communications message. 42) C In this scenario, Creative Networks is a media organization. Media organizations are a major participant in the advertising and promotions process. The media must have editorial or program content that attracts consumers so that advertisers and their agencies will want to buy time or space with them. While the media perform many other functions that help advertisers understand their markets and their customers, a medium's primary objective is to sell itself as a way for companies to reach their target markets with their messages effectively. 43) D Organizations that provide specialized marketing communications services are one of the major participants in the advertising and promotions process. Specialized marketing communications services include direct-marketing agencies, sales promotion agencies, digital agencies, and public relations firms.

Version 1

44) D The advertising department may be responsible for preparing materials the sales force can use when calling on customers, but it does not manage the sales force. 45) C In some companies that follow a centralized organizational system, an advertising manager is also given the title marketing communications manager. The advertising manager is responsible for all promotions activities except sales. 46) C Top management is usually interested in how the advertising program represents the firm, and this may also mean being involved in advertising decisions even when the decisions are not part of its day-today responsibilities. 47) B In a centralized system, the advertising manager controls the entire promotions operation, including budgeting, coordinating creation and production of ads, planning media schedules, and monitoring and administering the sales promotions programs for all the company's products or services. In some companies, this individual has the title of marketing communications manager. 48) A In a centralized system, the advertising manager is responsible for all promotional activities except sales. The advertising manager controls the entire promotions operation, including budgeting, coordinating creation and production of ads, planning media schedules, and monitoring and administering the sales promotions programs for all the company's products or services. Version 1

49) D The advertising manager is responsible for all promotions activities except sales. The specific duties of the advertising or marketing communications manager depend on the size of the firm and the importance it places on promotional programs. 50) D In a centralized organizational structure, the advertising department is responsible for developing advertising and promotions plans that will be approved by management and recommending a promotions program based on the overall marketing plan, objectives, and budget. 51) C A centralized organizational system is often used when companies do not have many different divisions, product or service lines, or brands to advertise. Many companies prefer a centralized advertising department because developing and coordinating advertising programs from one central location facilitates communication regarding the promotions program, making it easier for top management to participate in decision making. 52) D In a centralized system, the advertising manager controls the entire promotions operation, including budgeting, coordinating creation and production of ads, planning media schedules, and monitoring and administering the sales promotions programs for all the company's products or services. In a decentralized organization, each brand is assigned to a brand manager who is responsible for the total management of that brand, including planning, budgeting, sales, and profit performance. 53) C Version 1

Problems are inherent in a centralized operation. It is difficult for the advertising department to understand the overall marketing strategy for the brand. The department may also be slow in responding to specific needs and problems of a product or brand. 54) A Many companies that use a decentralized system assign each product or brand to a brand manager who is responsible for the total management of the brand, including planning, budgeting, sales, and profit performance. The brand manager, who may have one or more assistant brand managers, is also responsible for the planning, implementation, and control of the marketing program. 55) D In a decentralized system, the advertising department is part of marketing services and provides support for the brand managers. The role of marketing services is to assist the brand managers in planning and coordinating the integrated marketing communications program. 56) A In this scenario, Jim is a product manager. Many companies that use a decentralized system assign each product or brand to a brand manager who is responsible for the total management of the brand, including planning, budgeting, sales, and profit performance. The term product manager is also used to describe this position. The brand manager, who may have one or more assistant brand managers, is also responsible for the planning, implementation, and control of the marketing program. 57) C In a decentralized system, brand managers are responsible for the total management of the brand. 58) A Version 1

Some companies have a layer of management above the brand managers to coordinate the efforts of all the brand managers handling a related group of products. This system—generally referred to as a category management system—includes category managers as well as brand and advertising managers. The category manager oversees management of the entire product category and focuses on the strategic role of the various brands in order to build profits and market share. 59) A In large corporations with multiple divisions and many different products, it is very difficult to manage all the advertising, promotional, and other functions through a centralized department. These types of companies generally have a decentralized system, with separate manufacturing, research and development, sales, and marketing departments for various divisions, product lines, or businesses. 60) D There are some drawbacks to the decentralized approach. Individual brand managers often end up competing for management attention, marketing dollars, and other resources, which can lead to unproductive rivalries and potential misallocation of funds. 61) C In the above scenario, Diva Boutique should use an in-house agency. To reduce costs and maintain greater control over agency activities, some companies have set up their own advertising agencies internally. An inhouse agency is an advertising agency that is set up, owned, and operated by the advertiser. Saving money is not the only reason to use an in-house agency. Companies can also maintain tighter control over the process and more easily coordinate promotions with the firm's overall marketing program.

Version 1

62) C To reduce costs and maintain greater control over agency activities, some companies have set up their own advertising agencies internally. An in-house agency is an advertising agency that is set up, owned, and operated by the advertiser. It also provides greater stability and coordination. 63) B A major reason for using an in-house agency is to reduce advertising and promotion costs. Saving money is not the only reason companies use inhouse agencies. Time savings, bad experiences with outside agencies, and the increased knowledge and understanding of the market that come from working on advertising and promotion for the product or service day-by-day are also reasons. 64) A Some advantages of in-house agencies include greater cost savings, greater control, increased coordination, better stability, and enhanced access to top management. 65) C A major disadvantage of in-house agencies is less objectivity. A firm can turn its advertising and promotion tasks over to an outside agency to obtain more objectivity. 66) A Longer response time is one of the disadvantages of using a centralized organizational system. A centralized organizational system is often used when companies do not have many different divisions, product or service lines, or brands to advertise. 67) B

Version 1

An advantage of the decentralized system is that each brand receives concentrated managerial attention, resulting in faster response to both problems and opportunities. This system is also more flexible and makes it easier to adjust various aspects of the advertising and promotional program, such as creative platforms and media and sales promotion schedules. 68) B Ineffective decision making is one of the disadvantages of a decentralized system. Internal conflicts, lack of authority, and misallocation of funds are other disadvantages of using a decentralized system. 69) B Some of the disadvantages of an in-house agency include less flexibility, less objectivity, and lack of access to the top creative talent. 70) B Some of the disadvantages of an in-house agency include less flexibility, less objectivity, and lack of access to the top creative talent. 71) A Billings refers to the amount of client money that agencies spend on media purchases and other equivalent activities. With respect to the U.S. advertising agency business, nearly two-thirds of the domestic billings are handled by the top 500 agencies. 72) D

Version 1

During the late 1980s and into the 1990s, the advertising industry underwent major changes as large agencies merged with or acquired other agencies and support organizations to form large advertising organizations, or superagencies. These superagencies were formed so that agencies could provide clients with integrated marketing communications services worldwide. 73) B During the late 1980s and into the 1990s, the advertising industry underwent major changes as large agencies merged with or acquired other agencies and support organizations to form large advertising organizations, or superagencies. Some advertisers became disenchanted with the superagencies and moved to smaller agencies that were flexible and more responsive. 74) E The main reason why outside agencies are used is that they provide the client with the services of highly skilled individuals who are specialists in their chosen fields. 75) B The main reason outside agencies are used is that they provide the client with the services of highly skilled individuals who are specialists in their chosen fields. An advertising agency staff may include artists, writers, media analysts, researchers, and others with specific skills, knowledge, and experience who can help market the client's products or services. 76) B Many companies employ what is known as a full-service agency, which offers its clients a full range of marketing, communications, and promotions services, including planning, creating, and producing the advertising; performing research; and selecting media. Version 1

77) D Many companies employ what is known as a full-service agency, which offers its clients a full range of marketing, communications, and promotions services, including planning, creating, and producing the advertising; performing research; and selecting media. 78) B In this scenario, Mars Inc. is an example of a full-service agency. A fullservice agency offers its clients a full range of marketing, communications, and promotions services, including planning, creating, and producing the advertising; performing research; and selecting media. It may also offer nonadvertising services such as strategic market planning; sales promotions, direct marketing, and interactive capabilities; package design; and public relations and publicity. 79) A Billings refers to the amount of client money agencies spend on media purchases and other equivalent activities. 80) E Account services, or account management, is the link between the ad agency and its clients. Depending on the size of the client and its advertising budget, one or more account executives serve as liaison. 81) A The account executive is responsible for understanding the advertiser's marketing and promotions needs and interpreting them to agency personnel. He or she coordinates agency efforts in planning, creating, and producing ads. The account executive also presents agency recommendations and obtains client approval. 82) E

Version 1

The account executive is responsible for understanding the advertiser's marketing and promotions needs and interpreting them to agency personnel. As the focal point of agency-client relationships, the account executive must know a great deal about the client's business and be able to communicate this to specialists in the agency working on the account. 83) E Most full-service agencies maintain a research department whose function is to gather, analyze, and interpret information that will be useful in developing advertising for their clients. 84) B In this scenario, Greg has been hired as an account planner. Account planners are individuals who gather information that is relevant to the client's product or service and can be used in the development of the creative strategy as well as other aspects of the integrated marketing communications (IMC) campaign. Account planners work with the client as well as other agency personnel to collect information that can be helpful in gaining a better understanding of the client's target audience and the best ways to communicate with them. 85) C Account planners gather and organize information about consumers as well as developments in the marketplace that can be used to prepare the creative brief, which is a document that the agency's creative department uses to guide the development of advertising ideas and concepts. 86) D

Version 1

Account planning has become a very important function in many agencies because it provides the creative team, as well as other agency personnel, with more insight into consumers and how to use advertising and other IMC tools to communicate with them. The account planning function has also become more demanding as the number of marketing communication channels and ways of contacting consumers increases. 87) B The media department of an agency analyzes, selects, and contracts for space or time in the media that will be used to deliver the client's advertising message. 88) C Media specialists must know what audiences the media reach, their rates, and how well they match the client's target market. The media planning department reviews information on demographics, magazine and newspaper readership, radio listenership, and consumers' Internet and TV viewing patterns to develop an effective media plan. 89) A The individuals who conceive the ideas for the ads and write the headlines, subheads, and body copy (the words constituting the message) are known as copywriters. 90) C Media specialists must know what audiences the media reach, their rates, and how well they match the client's target market. The media planning department reviews information on demographics, magazine and newspaper readership, radio listenership, and consumers' Internet and TV viewing patterns to develop an effective media plan. 91) C

Version 1

The art department is responsible for how the ad looks. For print ads, the art director and graphic designers prepare layouts, which are drawings that show what the ad will look like and from which the final artwork will be produced. 92) E The production department supervises the casting of people to appear in the ad and the setting for the scenes as well as chooses an independent production studio. The department may hire an outside director to turn the creative concept into a commercial. 93) D The traffic department coordinates all phases of production to see that the ads are completed on time and that all deadlines for submitting the ads to the media are met. The traffic department may be in the creative services area of the agency, or be part of media or account management, or be separate. 94) A The creative services department is responsible for the creation and execution of advertisements. The layout for a TV commercial is called a storyboard. It is a sequence of frames or panels that depict the commercial in still form. 95) D A traffic department coordinates all phases of production to see that the ads are completed on time and that all deadlines for submitting the ads to the media are met. The traffic department may be in the creative services area of the agency, or be part of media or account management, or be separate. 96) D

Version 1

The creative services department is responsible for the creation and execution of advertisements. Members of the creative department work together to develop ads that will communicate the key points determined to be the basis of the creative strategy for the client's product or service. 97) C Once the copy, layout, illustrations, and mechanical specifications have been completed and approved, the ad is turned over to the production department. Most agencies do not actually produce finished ads; they hire printers, engravers, photographers, typographers, and other suppliers to complete the finished product. 98) C The layout for a TV commercial is called a storyboard. It is a sequence of frames or panels that depict the commercial in still form. 99) B The bulk of an advertising agency's income (approximately 64 percent) goes to salary and benefits for its employees. Thus, an agency must manage its personnel carefully and get maximum productivity from them. 100) B In this scenario, J&J is using a group organizational system. In a group system, individuals from each department work together in groups to service particular accounts. The size and composition of the group vary depending on the client's billings and the importance of the account to the agency. 101) B

Version 1

Under the departmental system, each of the agency functions is set up as a separate department and is called on as needed to perform its specialty and serve all of the agency's clients. Some agencies prefer the departmental system because it gives employees the opportunity to develop expertise in servicing a variety of accounts. 102) B Many large agencies use the group system, in which individuals from each department work together in groups to service particular accounts. Many agencies prefer the group system because employees become very knowledgeable about the client's business and there is continuity in servicing the account. 103) A Creative boutiques are small ad agencies that provide only creative services. Long an important part of the advertising industry, these specialized agencies have creative personnel such as writers and artists on staff but have no media, research, or account planning capabilities. 104) A In this scenario, Pluto Inc. exemplifies a creative boutique. Creative boutiques are small ad agencies that provide only creative services and have long been an important part of the advertising industry. Creative boutiques have developed in response to some companies' desires to use only the creative services of an outside agency while maintaining control of other marketing communication functions internally. 105) D

Version 1

An advantage of creative boutiques is their ability to turn out inventive creative work quickly and without the cumbersome bureaucracy and politics of larger agencies. Many companies also prefer working directly with a smaller creative boutique because they can get more attention and better access to creative talent than they would at a larger agency. 106) D Media specialist companies are companies that specialize in the buying of media, particularly radio and television time. The task of purchasing advertising media has grown more complex as specialized media proliferate, so media buying services have found a niche by specializing in the analysis and purchase of advertising time and space. 107) A Critics of the commission system have long argued that it encourages agencies to recommend high-priced media to their clients to increase their commission level. Still others charge that the system encourages agencies to recommend mass-media advertising and avoid noncommissionable integrated marketing communications (IMC) tools such as direct mail, sales promotion, public relations, or event sponsorships, unless they are requested by the clients. 108) B A major development in the purchasing of advertising media in recent years has been the rapid growth of programmatic buying, which refers to a wide range of technologies that are automating the buying, placement, and optimization of advertising media. 109) A Defenders of the commission system argue that it is easy to administer and keeps the emphasis in agency compensation on nonprice factors, such as the quality of the advertising developed for clients. Version 1

110) D In the above scenario, CL Ads is using a commission system, the traditional method of compensating agencies where the agency receives a specified commission (usually 15 percent) from the media on any advertising time or space it purchases for its client. 111) A Many advertisers are now using a negotiated commission system whereby the commissions average from 8 to 10 percent or are based on a sliding scale that becomes lower as the clients' media expenditures increase. 112) A Many advertisers have gone to a negotiated commission system whereby the commissions average from 8 to 10 percent or are based on a sliding scale that becomes lower as the clients' media expenditures increase. Agencies are also relying less on media commissions for their income as their clients expand their integrated marketing communications (IMC) programs to include other forms of promotion and cut back on massmedia advertising. 113) A Among companies that use the commission system, most do not pay the traditional 15 percent. Many advertisers have gone to a negotiated commission system whereby the commissions average from 8 to 10 percent or are based on a sliding scale that becomes lower as the clients' media expenditures increase. 114) A

Version 1

In the straight or fixed-fee method, the agency charges a basic monthly fee for all of its services and credits to the client any media commissions earned. Agency and client agree on the specific work to be done and the amount the agency will be paid for it. 115) E Fixed-fee method of compensation is also called straight-fee method. In the straight or fixed-fee method, the agency charges a basic monthly fee for all of its services and credits to the client any media commissions earned. 116) E Under a cost-plus system, the client agrees to pay the agency a fee based on the costs of its work plus some agreed-on profit margin (often a percentage of total costs). 117) B As clients are demanding more accountability from their agencies, they are tying agency compensation to performance through some type of incentive-based system. Recently a new variation of this system has emerged in the form of value-based compensation whereby agencies are compensated above their basic costs, if they achieve or exceed results as measured by agreed-upon metrics. 118) C The Dynamic scenario is an example of a value-based compensation system. Increasingly, clients are demanding more accountability from their agencies and tying agency compensation to performance through some type of incentive-based system. Recently a new variation of this system has emerged in the form of value-based compensation whereby agencies are compensated above their basic costs, if they achieve or exceed results as measured by agreed-upon metrics. Version 1

119) B Sometimes agencies are compensated through a fee-commission combination, in which the media commissions received by the agency are credited against the fee. If the commissions are less than the agreedon fee, the client must make up the difference. 120) D Increasingly, clients are demanding more accountability from their agencies and tying agency compensation to performance through some type of incentive-based system. Recognizing the movement toward incentive-based systems, some agencies have agreed to tie their compensation to performance. 121) B An ANA study concluded that the use of performance incentives as the basis for agency compensation continues to grow, and is generally gaining popularity across the board, regardless of advertiser type or size or type of agency service. As more companies adopt integrated marketing communications (IMC) approaches, they are reducing their reliance on traditional media advertising, and this is leading to changes in the way they compensate their agencies. 122) A The financial audit focuses on how the agency conducts its business. It is designed to verify costs and expenses, the number of personnel hours charged to an account, and payments to media and outside suppliers. 123) D The qualitative audit focuses on the agency's efforts in planning, developing, and implementing the client's advertising programs and considers the results achieved. 124) B Version 1

In this scenario, Pluto Inc. obtains clients through solicitation. One of the more common ways to gain new business is through direct solicitation. In smaller agencies, the president may solicit new accounts. In most large agencies, a new business development group seeks out and establishes contact with new clients. The group is responsible for writing solicitation letters, making cold calls, and following up on leads. 125) B Due in part to the emphasis on speculative presentations, a very important role has developed for ad agency review consultants, who specialize in helping clients choose ad agencies. 126) A Perhaps the most effective way an agency can gain new business is through its reputation for doing excellent work for the clients it serves. Word travels fast through the advertising and marketing industry regarding the agencies that are doing outstanding creative work in advertising as well as in other areas of integrated marketing communications. 127) C Direct-marketing agencies provide a variety of services, including database analytics and management, direct mail, research, media services, and creative and production capabilities. While direct mail was their primary weapon, many direct-response agencies are expanding their services to include such areas as infomercial production and database management. 128) D

Version 1

In this scenario, Venus Corp. is an example of a direct-marketing agency. Direct-marketing agencies provide a variety of services, including database management, direct mail, research, media services, and creative and production capabilities. Many companies are using database marketing to pinpoint new customers and build relationships and loyalty among existing customers. 129) A Developing and managing sales promotion programs such as contests, sweepstakes, refunds and rebates, premium and incentive offers, and sampling programs are very complex tasks. Most companies use a sales promotion agency to develop and administer these programs. 130) A In this scenario, sales promotion agencies would help WriteOn Stationery. Developing and managing sales promotion programs such as contests, sweepstakes, refunds and rebates, premium and incentive offers, and sampling programs are very complex tasks. Most companies use a sales promotion agency to develop and administer these programs. 131) A Direct-marketing agencies provide a variety of services, including database analytics and management, direct mail, research, media services, and creative and production capabilities. 132) D Many marketers are using interactive agencies that specialize in the development and strategic use of various interactive marketing tools such as websites for the Internet, banner ads, search engine optimization, mobile marketing, and social media campaigns. 133) A

Version 1

A public relations firm, or PR agency, develops and implements programs to manage the organization's publicity, image, and affairs with consumers and other relevant publics, including employees, suppliers, stockholders, government, labor groups, citizen action groups, and the general public. 134) D In this scenario, a public relations firm would prepare news releases, promote, and manage the concert. The activities of a public relations firm include planning the PR strategy and programs, generating publicity, conducting lobbying and public affairs efforts, becoming involved in community activities and events, preparing news releases and other communications, conducting research, promoting and managing special events, and managing crises. 135) A Interactive agencies are also called digital agencies. They evolved because of the rapid growth of the Internet and other forms of interactive media. 136) C The final participants in the promotional process are those that provide various collateral services. They include marketing research companies, package design firms, consultants, photographers, printers, video production houses, and event marketing services companies. 137) E

Version 1

The final participants in the promotional process are those that provide various collateral services. They include marketing research companies, package design firms, consultants, photographers, printers, video production houses, and event marketing services companies. One of the more widely used collateral service organizations is the marketing research firm. 138) A Marketing research companies offer specialized services and can gather objective information that is valuable to the advertiser's promotional programs. They conduct qualitative research such as in-depth interviews and focus groups, as well as quantitative studies such as market surveys. 139) B One of the more widely used collateral service organizations is the marketing research firm. Marketing research companies offer specialized services and can gather objective information that is valuable to the advertiser's promotional programs. They conduct qualitative research such as in-depth interviews and focus groups, as well as quantitative studies such as market surveys. 140) B Proponents of integrated marketing services contend that past problems are being solved and the various individuals in the agencies and subsidiaries are learning to work together to deliver a consistent message to the client's customers. They argue that maintaining control of the entire promotional process achieves greater synergy among each of the communications program elements. 141) E

Version 1

Marketing executives say the biggest obstacle to implementing integrated marketing communications (IMC) is the lack of people with the broad perspective and skills to make it work. Internal turf battles, agency egos, and fear of budget reductions are also cited as major barriers to successful integrated marketing campaigns. 142) B Specialized niche agencies are more likely than IMC agencies to be perceived as best in breed. Specialized agencies focus on doing one thing and doing it well. 143) E The traditional method of compensating agencies is through a commission system, where the agency receives a specified commission (usually 15 percent) from the media on any advertising time or space it purchases for its client. (For outdoor advertising, the commission is 16⅔ percent.) This system provides a simple method of determining payments. 144) C Big data is driving the planning and evaluation of the advertising strategies and tactics used by marketers. Many companies are no longer looking for an agency of record (AOR) relationship whereby the agency plays a lead role in the ICM programs, but rather looking to work with best-in-class marketing partners with specialized expertise in various areas.

Version 1

CHAPTER 4 TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) Some purchase decisions are incidental and may result from little more than seeing a product prominently displayed at a discount price in a store. ⊚ ⊚

true false

2) Determining how much and which sources of external information to use involves several factors, including the importance of the purchase decision, the effort needed to acquire information, the amount of past experience relevant, the degree of perceived risk associated with the purchase, and the time available. ⊚ ⊚

true false

3) The exact size of the evoked set varies from one consumer to another and depends on factors such as the importance of the purchase. ⊚ ⊚

true false

4) Cognitive learning theory has been criticized for assuming a mechanistic view of the consumer that puts too much emphasis on external stimulus factors. ⊚ ⊚

true false

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

Version 1

true false

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

The Basic model of consumer decision making includes five stages, beginning with A) a purchase decision. B) an information search. C) attitude formation. D) problem recognition. E) an information search.

8) Joy purchased a 1980s home with all the original appliances. She is struggling with the current state of her kitchen appliances and her vision of an ideal updated kitchen. This gap between what she has and what she wants is A) perception. B) information search. C) attitude formation. D) purchase decision. E) problem recognition.

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

Version 1

A) self-actualization. B) selective exposure. C) sensation. D) perception. E) self-esteem.

10) Abound Industries has hired All Around Marketers to conduct consumer focus groups with the goal to identify their associations related to the Abound brand. All Around has also suggested projective techniques, associated tests, and in-depth interviews. What type of research is Abound Marketers conducting? A) social need B) self-actualization C) consumer D) motivation E) assimilation

11) Joy continues her decision-making process for updating her 1980s kitchen. She is now comparing the warranties and services available for various brands. What stage of the decisionmaking process has Joy has entered? A) problem recognition B) information search C) alternative evaluation D) attitude formation E) purchase decision

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

Version 1

A) contractor advice. B) opinions of others. C) consumer behavior. D) information sources. E) consumer buying habits.

13) Joy is unsure of what her motive is for purchasing a double-stack oven; she just knows she wants one. As a consumer, her motivation may be deep in her subconscious, a motive connected to other experiences. This theory of consumer behavior is referred to as A) subconscious. B) psychoanalytic. C) the affect-referral decision rule. D) salient beliefs. E) multiattribute attitude model.

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

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

Version 1

A) consumer socialization. B) consumer culture. C) consumer behavior. D) consumer retention. E) consumer assimilation.

16) Joy has invited her friend Geri to look at stove tops for her kitchen remodel. Joy likes look of the glass cooktop, but Geri finds it less functional than a gas cook top. Joy and Geri are driven by what is relevant their individual needs, tuning out each other’s A) self-actualization. B) selective exposure. C) sensations. D) perceptions. E) self-esteem.

17) Blueberry Designs is known for their trademark BD and their patented Blueberry-colored soles on every pair of shoes. When the Blueberry color appears in ads, consumers take notice. This notice is called A) selective exposure. B) selective retention. C) mnemonics. D) selective comprehension. E) selective attention.

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

Version 1

A) selective exposure. B) selective retention. C) mnemonics. D) selective comprehension. E) selective attention.

19) Blueberry Designs has just launched their online shopping portal. To make sure their customers remember how to find them, they purchased the website name Blueberry1.com and acquired the phone number 258.323.7791, which spells out Blueberry1 on a keypad. These associations to help consumers remember how to reach Blueberry Designs are known as A) subliminal perception. B) mnemonics. C) selective exposures. D) selective retention. E) consumer assimilations.

20) In her remodeling project, Joy has reached the alternative evaluation stage, bringing her choices for a double-stack oven down to three brands. She is looking at the amount of time it has taken her to compare features, realizing that she now has a manageable number of options, called A) a subliminal perception. B) the evoked set. C) dysfunctional consumer behavior. D) the functional consequences. E) the psychosocial consequences.

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

Version 1

A) operant conditioning. B) reinforcement. C) conditioned response. D) classical conditioning. E) conditioned stimulus.

22) Innovation Marketing is creating a communication strategy for the KB brand. To identify what drives consumer attitudes toward the KB brand, Innovation Marketing will use ________ to better understand how consumers’ beliefs are affecting their evaluations of the brand’s attributes. A) the subconscious theory B) the psychoanalytic theory C) the affect-referral decision rule D) their salient beliefs E) a multiattribute attitude model

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

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

Version 1

A) operant conditioning. B) cognitive dissonance. C) conditioned response. D) reinforcement. E) conditioned stimulus.

25) Sean purchased his four-door sedan with good gas mileage. But he is having second thoughts about the purchase because his friend Sam really wanted him to buy a pick-up truck. The dealership recently sent a follow-up letter to Sean reinforcing the wisdom of his fuelefficient purchase. The dealership is trying to address Sean’s A) operant conditioning. B) cognitive dissonance. C) conditioned response. D) reinforcement. E) conditioned stimulus.

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

Version 1

27) Innovation Marketing works with the team at KB brand to create an integrated marketing plan. They are focusing on customer perception and formation of beliefs about the value of the KB brand and to how to influence consumer decision making to choose the KB brand. Innovation Marketing is applying A) operant conditioning. B) cognitive learning theory. C) conditioned response. D) cognitive dissonance. E) conditioned stimulus.

28) The Blueberry Designs ads show a lifestyle that is sophisticated and timeless. They recently launched a sportswear line with their trademark DB pattern and patented Blueberry soles on both hiking boots and casual footwear. Those who follow the Blueberry lifestyle are part of A) consumer socialization. B) a situational determinant. C) consumer culture. D) a reference group. E) consumer assimilation.

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

Version 1

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

31) ________ can be defined as the process and activities people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services so as to satisfy their needs and desires. A) Consumer socialization B) Consumer culture C) Consumer behavior D) Consumer retention E) Consumer assimilation

32) Telluride Ski Resort advertising appeals to the personality or ________ of skiers, as these can influence purchase decisions. A) lifestyle B) loyalty C) impulses D) attenuation E) integration

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

Version 1

A) external search B) postpurchase evaluation C) problem recognition D) purchase decision E) alternative evaluation

34)

What is the first stage of the consumer decision-making process? A) problem recognition B) internal search C) external search D) selective exposure E) selective retention

35) Which of the following is the most relevant internal psychological process associated with the problem recognition stage of the consumer decision-making process? A) employment status B) motivation C) assimilation D) dissociation E) internalization

36) Which of the following is the most relevant internal psychological process associated with the alternative evaluation stage of the consumer decision-making process? A) motivation B) attitude formation C) assimilation D) integration E) differentiation

Version 1

37) Which of the following is the most relevant internal psychological process associated with the purchase decision stage of the consumer decision-making process? A) externalization B) perception C) culturalization D) integration E) learning

38) Which of the following is the most relevant internal psychological process associated with the postpurchase evaluation stage of the consumer decision-making process? A) motivation B) perception C) assimilation D) learning E) disintegration

39) McCann Erickson asked women to draw and describe how they felt about roaches. They discovered that many women associated roaches with men who had abandoned them, and therefore the women preferred roach killers that let them see the roaches die. In this situation, the agency was using ________ research. A) motivation B) perception C) assimilation D) neuroscience E) disintegration

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

Version 1

A) differentiation B) perception C) valuation D) amalgamation E) disassociation

41)

In which of these situations was marketer-induced problem recognition used?

A) Shopaholic, a clothing and accessories brand, sends newsletters to all its customers at the end of each summer, stating that their existing wardrobe might be out of style. B) Ken buys a battery charging case after purchasing a smartphone. C) Casey purchased Hair Care shampoo but switched to Rejuvenate shampoo when he found that Hair Care contained many chemicals. D) Upgraded, an electronics store, recently sold goods at discounted prices to people who registered themselves on the company’s website. E) Patrick hurt his toe while jogging and realized that his sports shoes were torn. He went to the store to purchase a new pair of shoes.

42) Marketers encourage ________ by introducing new brands into markets that are already saturated and by using advertising and sales promotion techniques such as free samples, introductory price offers, and coupons. A) brand switching B) brand extension C) brand dilution D) brand loyalty E) brand retention

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

Version 1

A) out-of-mind syndrome B) consumer assimilation C) consumer socialization D) novelty-seeking behavior E) consumer acculturation

44) According to Abraham Maslow’s hierarchy of needs, the most basic level of human needs is their A) physiological needs. B) esteem needs. C) self-actualization needs. D) social needs. E) safety needs.

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

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

Version 1

A) physiological B) safety C) self-actualization D) esteem E) social

47) Lower-level needs such as hunger and thirst are important to marketers because these needs A) are the hardest to satisfy. B) are an ongoing source of motivation for most consumer purchase behavior. C) require marketers to invest heavily in promotional activities. D) offer marketers a basis for differentiating their products. E) are the source for most market development and assimilation strategies.

48) Robert, the CEO of a software company in Houston, has fulfilled his career goals. Therefore, he decides to retire and help eliminate societal problems. To achieve this goal, he starts a charitable organization that helps in educating underprivileged children. With respect to Maslow’s hierarchy of needs theory, Robert is looking to fulfill his ________ need. A) physiological B) social C) self-actualization D) esteem E) safety

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

Version 1

A) physiological B) social C) self-actualization D) esteem E) safety

50) ________ theory is an approach that deals with the structure and development of personality and focuses on the underlying motivations for human behavior. A) Maslow’s hierarchy B) Psychoanalytic C) Lamarckian D) World-systems E) Structuration

51)

Psychoanalytic theory was pioneered by A) Abraham Maslow. B) Sigmund Freud. C) Ivan Pavlov. D) David McClelland. E) Victor Vroom.

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

Version 1

A) behavioral learning theory B) psychoanalytic theory C) affect-referral decision rule D) Maslow’s hierarchy of needs E) multiattribute attitude model

53) With respect to motivation research, which technique brings together small numbers of people with similar backgrounds and/or interests to discuss a particular product, idea, or issue? A) in-depth interview B) Delphi technique C) focus group D) association test E) nominal group technique

54) With respect to motivation research, which of the following is a face-to-face situation in which an interviewer asks a consumer to talk freely in an unstructured interview using specific questions designed to obtain insights into his or her motives, ideas, or opinions? A) focus group interview B) stress interview C) projective interview D) coolhunting E) in-depth interview

55) James, an interviewer, instructs Lily to respond to his questions with the first thing that comes to her mind. James provides Lily with several stimuli such as words, pictures, and ads. With respect to motivation research, James is using

Version 1

A) a predictive test. B) an in-depth interview. C) an association test. D) a focus group. E) a projective technique.

56) When Bloomingdale’s New York store sprayed Donna Karan’s new perfume DKNY onto the sidewalks outside the store to introduce the perfume to consumers, it was trying to increase the level of ________ so the product would get noticed. A) comprehension B) retention C) sensory input D) mnemonics E) subliminal perception

57) In the context of motivation research, ________ are efforts designed to gain insights into consumers’ values, motives, attitudes, or needs that are difficult to express or identify by having them project these internal states upon some external object. A) projective techniques B) focus interviews C) assimilation techniques D) association tests E) subliminal tests

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

Version 1

A) the results are too predictable. B) the theory is too sensitive to external environmental stimuli. C) the research relies heavily on later individual development. D) the theory is too vague. E) the research lacks flexibility.

59)

Which of the following statements is true of the psychoanalytic theory? A) It is generally considered to have ignored the early development of an individual. B) It has been criticized for being unresponsive to the external environment. C) It has proven to be extremely useful as it is structured and easy to administer. D) It has been validated experimentally. E) It places less emphasis on the unconscious.

60) ________ is the stage of the consumer decision-making process whereby the individual scans information stored in memory to recall past experiences and/or knowledge regarding various purchase alternatives. A) Problem recognition B) Internal information search C) External information search D) Alternative evaluation E) Postpurchase evaluation

61) With respect to the consumer decision-making process, the stage that occurs immediately after the problem recognition stage is A) elaborative rehearsal. B) purchase decision. C) postpurchase evaluation. D) information search. E) goal-directed selection.

Version 1

62) Before purchasing a car, John sought advice from his friends and researched auto reviews on the Internet. He also visited car dealers and went for a test drive. In which of the following stages of the consumer decision-making process is John engaged? A) internal information search B) external information search C) postpurchase evaluation D) problem recognition E) evoked set manipulation

63)

Which of the following statements is true of perception?

A) Perception is an external process. B) Perception involves only one process—sensation. C) Perception is an individual process. D) Perception is independent of internal psychological factors. E) The perceptual process is unaffected by the characteristics of a stimulus like its size and color.

64)

Which of the following statements best defines perception?

A) It is an associative learning process that helps in associating a product or service with a favorable emotional state. B) It is the process of presenting a new production process or product into the market and promoting the same to prospective customers. C) It is the process by which an individual receives, selects, organizes, and interprets information to create a meaningful picture of the world. D) It is the intense emotional response of a consumer when he realizes that a repressed conflict is about to emerge into consciousness. E) It is a situation that arises when a consumer’s prior product knowledge and buying behavior get distorted and lead to illegal buying situations.

Version 1

65) Which of the following perception processes is the immediate, direct response to the taste, smell, touch, and hearing of stimuli? A) selection B) sensation C) assimilation D) disintegration E) interpretation

66) Various brands of perfume use scented strips in their ads to influence the consumer’s ________ and to increase the probability that the ad will be perceived. A) level of sensory input B) personality C) internal information search D) cognitive dissonance E) echoic memory

67)

What is the first step in the selective perception process? A) selective attention B) selective comprehension C) selective integration D) selective exposure E) selective retention

68) James wants to buy a new truck. While watching TV, he notices a series of truck ads. However, he fails to notice several other ads, including those promoting cosmetics, snack foods, and sodas. In this scenario, James is exhibiting

Version 1

A) selective attention. B) selective retention. C) selective exposure. D) selective assimilation. E) selective comprehension.

69) While watching a basketball game on television, Ryan leaves the room during commercial breaks and returns only when the live broadcast returns. If he deliberately avoids viewing commercials, Ryan is likely experiencing A) selective attention. B) selective exposure. C) selective comprehension. D) selective retention. E) selective recall.

70) The step of the perception process where consumers interpret information based on their own attitudes, beliefs, motives, and experiences is known as A) selective attention. B) selective exposure. C) selective comprehension. D) selective retention. E) selective conditioning.

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

Version 1

A) selective rehearsal B) selective bias C) selective comprehension D) selective retention E) selective attention

72) Symbols, rhymes, associations, and images that assist in the learning and memory processes are known as A) drives. B) cues. C) mnemonics. D) trigger points. E) memes.

73)

Ads that use telephone numbers that contain the company name are hoping to enhance A) selective sublimation. B) selective bias. C) selective determination. D) selective retention. E) selective understanding.

74) ________ is the ability to perceive a stimulus that is below the level of conscious awareness. A) Selective conditioning perception B) Observer bias C) Lightness constancy D) Subliminal perception E) Stimuli interception

Version 1

75) The various brands identified as purchase options to consider during the alternative evaluation process are known as the consumer’s A) perceptive list. B) attribution list. C) neutral list. D) evoked set. E) sublimation set.

76) Todd buys a fruit-based drink every afternoon—either a Relish apple juice or an orange drink made by Joy Fruit Juices. He will not consider any other brand or type of soft drink because those two drinks make up his A) latent set. B) brand attribution list. C) natural selection list. D) evoked set. E) subliminal choices.

77) 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

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

Version 1

A) Evaluative criteria B) Salient beliefs C) Dissonance motives D) Attribute bundles E) Reinforcement criteria

79) During which stage of the consumer decision-making process are both functional and psychosocial consequences important considerations? A) problem recognition B) information search C) postpurchase evaluation D) alternative evaluation E) observer bias

80) To someone purchasing an automobile, which of the following would be a subjective evaluative criterion? A) price B) warranty C) fuel economy D) styling E) insurance cost

81)

Which of the following statements is true of psychosocial consequences? A) They are concrete outcomes of products. B) They are intangible in nature. C) They are directly experienced by consumers. D) They lack subjectivity. E) They are highly impersonal.

Version 1

82) ________ are the concrete outcomes of product or service usage that are tangible and directly experienced by consumers. A) Functional consequences B) Psychosocial consequences C) Attribute bundles D) Subjective consequences E) Personal stimuli

83) Johel is a consumer of a well-known brand of soda. Reviewing his budget, he realizes that he can save on his grocery purchases if he buys generic soda instead. However, he will continue to purchase his well-known brand of soda because the others he has tried just do not taste the same. This type of evaluative criterion is known as a A) a psychosocial consequence. B) a functional consequence. C) an integration process. D) a heuristic. E) a purchase intention.

84) In the alternative evaluation stage of the consumer decision-making process, how a golf cart handles, how the brakes on a bicycle work, and how well a stain remover eliminates dirt stains are all examples of A) functional consequences. B) psychosocial consequences. C) schedules of reinforcement. D) subjective bundles. E) physiological stimuli.

85)

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

Version 1

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

86)

Which of the following is an example of a psychosocial consequence? A) the taste of a soft drink B) the feeling of prestige associated with wearing a luxury watch C) the acceleration of an automobile D) the processing speed of a computer E) the firmness of a mattress

87) In terms of the alternative evaluation stage of the consumer decision-making process, how you feel when you wear new shoes, the perception of how others like your new hair style, and how a recent weight-loss makes you feel about yourself are all examples of A) functional consequences. B) psychosocial consequences. C) mnemonics. D) heuristics. E) physiological consequences.

88)

For someone buying a car, which of the following is an objective evaluative criterion? A) image B) price C) styling D) performance E) color

Version 1

89)

What differentiates a functional consequence from a psychosocial consequence?

A) Functional consequences are concrete outcomes of a product, whereas psychosocial consequences are abstract outcomes. B) Psychosocial consequences are directly experienced by a customer, whereas functional consequences are not. C) Functional consequences are intangible, whereas psychosocial consequences are tangible outcomes. D) Psychosocial consequences are bundles of product attributes, whereas functional consequences are bundles of service attributes. E) Functional consequences deal with how a product makes you feel, whereas psychosocial consequences deal with tangible, concrete outcomes.

90)

Which statement best defines an attitude?

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

91)

Which of the following statements is true about saliency of beliefs? A) It provides insight into ways markets can stimulate consumer attitudes. B) It helps consumers diagnose the underlying basis of marketers’ attitudes. C) It tends to vary across different consumption situations. D) It does not vary among different market segments. E) It generally remains stagnant over time.

Version 1

92) With respect to the consumer decision-making process, which stage can be considered to be an immediate outcome of the alternative evaluation stage? A) information search B) problem recognition C) purchase decision D) postpurchase evaluation E) elaborative rehearsal

93) Simplified decision rules such as “Always buy the largest size of the cheapest detergent” or “Only buy motor oil if the manufacturer is offering a rebate” are called A) mnemonics. B) heuristics. C) cognitions. D) eruditions. E) cues.

94) In its ads, The Coffee House stresses consumers’ overall emotional impressions of the brand with an attractive slogan. The slogan is designed to convey to consumers that The Coffee House sells exquisite and refreshing coffee. It wants its consumers to purchase on the basis of this impression and not on comparison. This is an example of a marketer using A) the affect referral decision rule. B) the mirror-image rule. C) belief-bias effect. D) bait-and-switch marketing. E) nonqualitative evaluative criteria.

95) ________ is a heuristic in which consumers make a selection on the basis of an overall impression or summary evaluation of the various alternatives under consideration.

Version 1

A) Affect referral decision rule B) Bait-and-switch advertising C) Guerilla advertising D) The mirror-image rule E) Cognitive appraisal theory of emotion

96)

Which statement is true of the affect referral decision rule? A) It is synonymous with the mirror-image rule. B) It is a type of heuristic. C) It is synonymous with bait-and-switch marketing. D) It can be used only by marketers who sell luxury products. E) It is a type of mnemonic.

97) ________ is a consumer’s preference for a particular brand that results in its repeated purchase. A) Brand extension B) Brand stretching C) Brand spin-off D) Brand loyalty E) Brand equity

98)

As an outcome of the alternative evaluation stage, the consumer develops A) a heuristic tendency toward a particular brand. B) a predisposition to buy a certain brand. C) brand heuristics. D) individual brand recognition. E) a postpurchase evaluation set.

Version 1

99) Peter owns several rental apartments. Initially, he used several appliance brands in his apartments and was dissatisfied with their short life span. Currently, Peter purchases appliances only from Insignia Inc., a manufacturer of home appliances, for his apartments. His repeat purchases indicate A) the existence of cognitive dissonance. B) the absence of any affect referral decisions. C) his strong brand loyalty. D) extensive decision making and strong psychosocial consequences. E) a lack of evaluative criteria.

100)

What is the final stage of the consumer decision-making process? A) postpurchase evaluation B) purchase decision C) information search D) alternative evaluation E) problem recognition

101)

Which of the following is a possible consequence of postpurchase evaluation? A) brand extension B) purchase intention C) product differentiation D) cognitive resonance E) dissatisfaction

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

Version 1

A) the development of consideration threat. B) the creation of an evoked set. C) the purchaser’s dissatisfaction. D) the evaluation of attribute bundles. E) cognitive resonance in the buyer.

103) ________ is a state of psychological tension or postpurchase doubt a consumer may experience after making a difficult purchase decision. A) Availability heurism B) Self-serving bias C) Cognitive dissonance D) Impact bias E) Subliminal erudition

104) After purchasing a fancy-cut diamond ring for his wife, Jason feels dissatisfied with his purchase. He feels that the ring was overpriced and poorly cut. Moreover, Jason thinks that he should have selected the round brilliant-cut diamond rather than the fancy-cut diamond. In this scenario, Jason is experiencing A) impact bias. B) cognitive dissonance. C) psychosocial heurism. D) belief-bias effect. E) overregularization.

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

Version 1

A) routine response behavior. B) cognitive dissonance. C) ambivalence. D) high involvement. E) cognitive learning.

106) For which decision is a consumer’s behavior most likely to be characterized by extended problem solving? A) purchase of laundry detergent B) selection of frozen meat C) purchase of a new set of skis by an avid skier D) selection of a restaurant for lunch with friends E) purchase of a brilliant-cut diamond wedding ring

107) ________ is the process by which individuals acquire the purchase and consumption knowledge and experience they apply to future related behavior. A) Consumer lending B) Cognitive dissonance C) Consumer learning D) Cognitive distortion E) Cognitive extension

108)

Which statement is true of behavioral learning theories?

A) These theories are based on stimulus-response orientation. B) These theories put too much emphasis on internal psychological processes. C) They are also known as associative process theories. D) These theories disagree that the external stimulus environment will elicit fairly predictable consumer responses. E) These theories disprove the classical conditioning theory.

Version 1

109) Who contributed to the classical conditioning theory by conducting studies on animals and providing well-known examples for the theory? A) Maslow B) Pavlov C) Vroom D) McClelland E) Freud

110) A dog salivates during feeding time due to an innate reflex reaction. According to the conditioning theory in relation to this scenario, the food is A) an unconditioned stimulus. B) an external stimulus. C) an assimilated stimulus. D) a programmed stimulus. E) a conditioned stimulus.

111) With respect to classical conditioning, ________ occurs when an unconditioned stimulus and a conditioned stimulus occur in close proximity in time and space. A) repetition B) dissociative behavior C) response orientation D) contiguity E) negative reinforcement

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

Version 1

A) repetition. B) dissociative behavior. C) classical conditioning. D) cognitive learning. E) operant conditioning.

113) Why are principles of operant conditioning useful in the development of promotional strategies? A) They explain the cognitive processes that mediate a consumer’s response to advertising. B) They show that experiences with products provide reinforcements that affect future purchase behaviors. C) They explain why coupons and samples are unlikely to have any desirable effect on consumer behavior. D) They explain consumer behavior in both high- and low-involvement situations. E) They explain how the pairing of a neutral stimulus with a positive stimulus can produce an immediate desired response.

114) Yummy Soups, a vegetable soup manufacturing company, uses coupons and sweepstakes to promote its soups. This practice reflects an application of A) the belief-bias effect. B) bait-and-switch promotions. C) operant conditioning. D) classical conditioning. E) the cognitive appraisal theory of emotion.

115)

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

Version 1

A) classical reinforcement. B) continuous reinforcement. C) partial reinforcement. D) cognitive dissonance. E) intermittent reinforcement.

116) Learning occurs most rapidly under a(n) ________ reinforcement schedule, but the behavior is likely to cease when the reinforcement stops. A) continuous B) partial C) intermittent D) disintegrated E) flexible

117) The reinforcement of successive acts that leads to a desired behavior pattern or response is called A) shaping. B) blocking. C) mapping. D) counterconditioning. E) flooding.

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

Version 1

A) a continuous reinforcement schedule. B) an approximation sequence. C) a shaping procedure. D) reinforcement. E) a partial reinforcement schedule.

119)

Behavioral learning theories have been criticized for

A) focusing on providing information through subliminal learning processes. B) using suggestive illustrations to make consumers respond to internal stimuli. C) employing the use of violence in altering mind-body awareness. D) emphasizing the role of internal psychological processes and basing the theories on stimulus-response orientation. E) assuming a mechanistic view of the consumer that puts too much emphasis on external stimulus factors.

120) ________ refers to relatively homogeneous divisions in a society into which people sharing similar lifestyles, values, norms, interests, and behaviors can be grouped. A) Neoculture B) Subculture C) Social class D) Dissociative group E) Reference group

121) Jemma is targeting a new tennis racquet to tennis enthusiasts with professional occupations who have annual household incomes above $250,000 and graduate degrees. Her target audience likely falls into the ________ level of social class, which includes about 14 percent of people in the United States.

Version 1

A) upper B) middle C) lower D) innovator E) white collar

122) Jorge realized his core target audience was characterized by common leisure activities (museum visits, polo matches), shopping patterns (preference for boutiques, designer labels), and media habits (read Robb Report, Wall Street Journal, Financial Times). His target audience may be most appropriately characterized by A) avoidance reference group. B) social class. C) motives. D) situational influences. E) demographics.

123) Frank is a location analyst for a fast-food restaurant chain. He knows that previous restaurants have been placed in locations where most people within a three-mile radius have the following characteristics: household incomes between $50,000 and $65,000 per year, children and parents highly engaged in after-school activities, family valued above work, and one or both parents having some education beyond high school. His target audience likely falls into the ________ level of social class, which includes about 70 percent of people in the United States. A) upper B) middle C) lower D) innovator E) blue collar

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

Version 1

A) Culture B) Geography C) Behavior D) Psychology E) Social class

125) Before Josephine expands her business into international markets, she has to understand the impact of ________ on consumer behavior because each country has traditions, customs, and values that may impact the market’s response to her marketing program. A) social class B) life cycle C) perception D) social identity E) culture

126) ________ refers to smaller groups or segments whose beliefs, values, norms, and patterns of behavior set them apart from the larger cultural mainstream. A) Subculture B) Social class C) Reference group D) Motivation E) Attitude

127) Adidas has different versions of its ads that are designed to appeal to different age groups and different regions of the United States, or ________, because it found that these segments had beliefs, values, norms, and patterns of behavior different from those of the larger cultural mainstream.

Version 1

A) cultures B) social classes C) subcultures D) motivations E) attitudes

128) When Andy develops a new line of make-up for African Americans, he is targeting ________ within the larger cultural mainstream. A) an aspirational group B) a social class C) an advocacy group D) a subculture E) a neoculture

129) Which term is best defined as a group whose presumed perspectives or values are used by an individual as the basis for his or her judgments, opinions, and actions? A) alpha-consumer group B) focus group C) reference group D) demographic group E) cultural sect

130)

A reference group to which one does not wish to belong is a(n) ________ group. A) heuristic B) disassociative C) evoked D) mnemonic E) confrontational

Version 1

131) When the Saskatchewan Ministry of Health created an ad showing a woman who was passed out with a beer in her hand to communicate to college students that they have a choice when it comes to binge drinking, they were using a(n) ________ group to make their point. A) heuristic B) disassociative C) evoked D) mnemonic E) confrontational

132)

Reference groups to which one would like to belong are called ________ groups. A) aspirational B) heuristic C) evoked D) mnemonic E) alpha

133) With respect to the roles in the family decision-making process, all the members of a family who use a car are referred to as the A) purchasing agents. B) consumers. C) influencers. D) information providers. E) initiators.

134) Jim’s parents wish to buy a car. Knowing that Jim is a car enthusiast, they ask him to collect the relevant facts and figures required to make the purchase. So, Jim collects several magazines and articles about buying cars. In this scenario, Jim is the

Version 1

A) decision maker. B) initiator. C) influencer. D) information provider. E) consumer.

135) With respect to the roles in the family decision-making process, the person who decides what criteria will be used in the purchase selection process is called the A) influencer. B) consumer. C) initiator. D) purchasing agent. E) decision maker.

136) With respect to the roles in the family decision-making process, the individual who performs the physical act of buying the product is called the A) influencer. B) purchasing agent. C) decision maker. D) gatekeeper. E) consumer.

137) In the family decision-making process, the person in the family who is responsible for starting the purchase decision process is the A) purchasing agent. B) consumer. C) initiator. D) information provider. E) influencer.

Version 1

138) In its advertising, The American Eurocopter company shows its product on a large yacht in the hope of appealing to the upper stratum of ________. This term refers to relatively homogeneous divisions in a society into which people sharing similar lifestyles, values, norms, behaviors, and interests can be grouped. A) social class B) reference group C) culture D) communications E) usage

139)

Which of the following statements is true of cross-disciplinary research?

A) It has been criticized for ignoring various behavioral stimuli such as motivation and culture. B) It fails to provide room for experimentation and remains a theorized ideology. C) It provides a greater understanding of consumer behavioral through neoviolence and neosocial theories. D) It fails to provide a better understanding of the role of cultural significance in advertising. E) It is better suited for studying consumers because it takes into account their complexity and multidimensionality.

Version 1

Answer Key Test name: Chap 04_12e 1) TRUE While many products and services are purchased after a long, detailed process, some purchase decisions are more incidental, including impulse purchases. 2) TRUE The importance of the purchase decision, the effort needed to acquire information, the amount of past experience relevant, the degree of perceived risk associated with the purchase, and the time available all affect the amount of information one seeks. Complex purchases tend to result in the consultation of more information sources. 3) TRUE The exact size of the evoked set (sometimes referred to as the consideration threat) varies from one consumer to another and depends on such factors as the importance of the purchase and the amount of time and energy the consumer wants to spend comparing alternatives. 4) FALSE Behavioral learning theories have been criticized for assuming a mechanistic view of the consumer that puts too much emphasis on external stimulus factors. In contrast, cognitive learning theory focuses on cognitive processes such as perception, formation of beliefs about brands, attitude development and change, and integration that are important to understanding the decision-making process. 5) TRUE

Version 1

To the degree that advertisers can assess situational influences that may be operating, they will increase the likelihood of successfully communicating with their target audiences. If advertisers can isolate a particular time when the listener is likely to be attentive, they will probably earn his or her undivided attention. 6) C Marketers need to know the specific needs customers are attempting to satisfy and how they translate into purchase criteria. They also need to understand how consumers gather information regarding various alternatives and use this information to select among competing brands, and how they make purchase decisions. 7) D The conceptual model used as a framework for analyzing consumer decision making shows five stages in the consumer decision-making process: problem recognition, information search, alternative evaluation, purchase decisions, and postpurchase evaluation. 8) E Problem recognition is caused by a difference between the consumer’s ideal state and actual state. A discrepancy exists between what the consumer wants the situation to be like and what the situation is really like. The problem does not always imply a negative state. 9) D When the consumer is in the stage of information search in the decisionmaking process, the relevant internal psychological process is perception. 10) D

Version 1

Motivation researchers use a variety of methodologies to gain insight into the underlying causes of consumer behavior. Consumers are encouraged to bring out associations related to products and brands. 11) C When a consumer’s internal psychological process is attitude formation, she is likely to be in the stage of alternative evaluation in the decisionmaking process. 12) D The importance of the purchase decision, the effort needed to acquire information, the amount of past experience relevant, the degree of perceived risk associated with the purchase, and the time available all affect the amount of information one seeks. Complex purchases tend to result in the consultation of more information sources. 13) B Those who attempt to relate psychoanalytic theory to consumer behavior believe consumers’ motivations for purchasing are often very complex and unclear to the casual observer—and to the consumers themselves. Many motives for purchase and/or consumption may be driven by deep motives one can determine only by probing the subconscious. 14) C In-depth interviews include face-to-face situations in which an interviewer asks a consumer to talk freely in an unstructured interview using specific questions designed to obtain insights into his or her motives, ideas, or opinions. 15) C

Version 1

On the contrary, psychoanalytic theory has been criticized as being too vague, unresponsive to the external environment, and too reliant on the early development of the individual. It is difficult to verify because it emphasizes the unconscious. Still, it is difficult to ignore the psychoanalytic approach in furthering our understanding of consumer behavior. Its insights can often be used as a basis for advertising messages aimed at buyers’ deeply rooted feelings, hopes, aspirations, and fears. Such strategies are often more effective than rationally based appeals. 16) D An individual’s perceptual processes usually focus on elements of the environment that are relevant to his or her needs and tune out irrelevant stimuli. Two people may perceive the same stimuli in very different ways because they select, attend, and comprehend differently. 17) E In this example, Blueberry Designs is using contrast to overcome selective attention, which occurs when the consumers chooses to focus attention on some stimuli while excluding others. 18) D Consumers engage in selective comprehension—interpreting information on the basis of their own attitudes, beliefs, motives, and experiences. They often interpret information in a manner that supports their own position. 19) B

Version 1

Consumers have selective retention—they do not remember all the information they see, hear, or read even after attending to and comprehending it. Advertisers attempt to make sure information will be retained in the consumer’s memory so that it will be available when it is time to make a purchase. Mnemonics such as symbols, rhymes, associations, and images that assist in the learning and memory process are helpful aids. 20) B The exact size of the evoked set (sometimes referred to as the consideration threat) varies from one consumer to another and depends on such factors as the importance of the purchase and the amount of time and energy the consumer wants to spend comparing alternatives. 21) D Classical conditioning assumes that learning is an associative process with an already existing relationship between a stimulus and a response. 22) E Multiattribute models help marketers understand and diagnose the underlying basis of consumers’ attitudes. By understanding the beliefs that underlie consumers’ evaluations of a brand and the importance of various attributes or consequences, the marketer is better able to develop communication strategies for creating, changing, or reinforcing brand attitudes. 23) A

Version 1

Classical conditioning views the individual as a passive participant in the learning process who simply receives stimuli. Conditioning occurs as a result of exposure to a stimulus that occurs before the response. In the operant conditioning approach, the individual must actively operate or act on some aspect of the environment for learning to occur. Operant conditioning is sometimes referred to as instrumental conditioning because the individual’s response is instrumental in getting a positive reinforcement (reward) or negative reinforcement (a form of reward that occurs when a negative outcome is removed when the desired behavior is performed). 24) D Many ads emphasize the benefits or rewards a consumer will receive from using a product or service. Reinforcement also occurs when an ad encourages consumers to use a particular product or brand to avoid unpleasant consequences. 25) B Cognitive dissonance, a feeling of psychological tension or postpurchase doubt that a consumer experiences after making a difficult purchase choice. Dissonance is more likely to occur in important decisions where the consumer must choose among close alternatives (especially if the unchosen alternative has unique or desirable features that the selected alternative does not have). Marketers have come to realize that postpurchase communication is also important. Some companies send follow-up letters and brochures to reassure buyers and reinforce the wisdom of their decision. 26) E

Version 1

Learning occurs more slowly but lasts longer when a partial or intermittent reinforcement schedule is used and only some of the individual’s responses are rewarded. Promotional programs have partial reinforcement schedules. 27) B Behavioral learning theories have been criticized for assuming a mechanistic view of the consumer that puts too much emphasis on external stimulus factors. In contrast, cognitive learning theory focuses on cognitive processes such as perception, formation of beliefs about brands, attitude development and change, and integration that are important to understanding the decision-making process. 28) D A reference group is “a group whose presumed perspectives or values are being used by an individual as the basis for his or her judgments, opinions, and actions.” Consumers use three types of reference groups (associative, aspirational, and disassociative) as a guide to specific behaviors, even when the groups are not present. 29) B Situational determinants may either enhance or detract from the potential success of a message. To the degree that advertisers can assess situational influences that may be operating, they will increase the likelihood of successfully communicating with their target audiences. 30) D

Version 1

Whereas psychologists often study consumer responses to advertising and other forms of communication in controlled settings, where environmental variables can be kept constant, sociologists and anthropologists study behavior in context. For this reason, they often employ qualitative methodologies such as individual interviews, participant observation studies, and/or ethnographies. 31) C Consumer behavior can be defined as the process and activities people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services so as to satisfy their needs and desires. 32) A Consumer decision making can be impacted by personality and lifestyle. 33) C This scenario represents the problem-recognition stage. Problem recognition, which occurs when the consumer perceives a need and becomes motivated to solve the problem, is the first stage in the consumer decision-making process. 34) A The first stage in the consumer decision-making process is problem recognition, which occurs when the consumer perceives a need and becomes motivated to solve the problem. The problem recognition stage initiates the subsequent decision processes. 35) B Problem-recognition occurs when the consumer perceives a need and becomes motivated to solve the problem. The problem recognition stage initiates the subsequent decision processes.

Version 1

36) B Attitude formation is the most relevant internal psychological process associated with the alternative evaluation stage. In this stage, the consumer compares the various brands or products and services he or she has identified as being capable of solving the consumption problem and satisfying the needs or motives that initiated the decision process. 37) D Integration is the most relevant internal psychological process associated with the purchase decision stage. As an outcome of the alternative evaluation stage, the consumer may develop a purchase intention or predisposition to buy a certain brand. Purchase intentions are generally based on a matching of purchase motives with attributes or characteristics of brands under consideration. 38) D Learning is the most relevant internal psychological process associated with the postpurchase evaluation stage. The consumer decision process does not end with the purchase. After using the product or service, the consumer compares the level of performance with expectations and is either satisfied or dissatisfied. 39) A Motivation research gives researchers insights into how consumers think. 40) B

Version 1

Perception is the most relevant internal psychological process associated with the information search stage. The second stage in the consumer decision-making process is information search. Once consumers perceive a problem or need that can be satisfied by the purchase of a product or service, they begin to search for information needed to make a purchase decision. 41) A The Shopaholic scenario is a situation in which a marketer-induced problem recognition was used. A source of problem recognition is marketers’ actions that encourage consumers not to be content with their current state or situation. Ads for personal hygiene products such as mouthwash, deodorant, and foot sprays may be designed to create insecurities that consumers can resolve through the use of these products. Marketers change fashions and clothing designs and create perceptions among consumers that their wardrobes are out of style. 42) A Marketers take advantage of consumers’ tendency toward noveltyseeking behavior, which leads them to try different brands. Marketers encourage brand switching by introducing new brands into markets that are already saturated and by using advertising and sales promotion techniques such as free samples, introductory price offers, and coupons. 43) D Marketers take advantage of consumers’ tendency toward noveltyseeking behavior, which leads them to try different brands. Marketers encourage brand switching by introducing new brands into markets that are already saturated and by using advertising and sales promotion techniques such as free samples, introductory price offers, and coupons. 44) A Version 1

The five needs are physiological needs, safety needs, social/love and belonging needs, esteem needs, and self-actualization needs. Physiological needs—for things required to sustain life, such as food, shelter, clothing, and sex—form the basic level of primary needs. 45) D In this scenario, Jack is most likely to fulfill his safety needs. Safety need is the need for security and safety from physical harm. 46) C The five needs are physiological needs, safety needs, social/love and belonging needs, esteem needs, and self-actualization needs. Selfactualization is the need for self-fulfillment and a desire to realize one’s own potential. 47) B Once their basic needs are satisfied, individuals move on to attempt to satisfy higher-order needs such as self-esteem. In reality, it is unlikely that people move through the needs hierarchy in a stairstep manner. Lower-level needs are an ongoing source of motivation for consumer purchase behavior. 48) C In this scenario, Robert is looking to fulfill his self-actualization need. Self-actualization need is the need for self-fulfillment and a desire to realize one’s own potential. 49) B The social need is the desire to have satisfying relationships with others and feel a sense of love, affection, belonging, and acceptance. 50) B

Version 1

A controversial approach to the study of consumer motives is the psychoanalytic theory pioneered by Sigmund Freud. Although his work dealt with the structure and development of personality, Freud also studied the underlying motivations for human behavior. 51) B A controversial approach to the study of consumer motives is the psychoanalytic theory pioneered by Sigmund Freud. Although his work dealt with the structure and development of personality, Freud also studied the underlying motivations for human behavior. 52) B While Maslow’s needs hierarchy has flaws, it offers a framework for marketers to use in determining what needs they want their products and service to be shown satisfying. Advertising campaigns can then be designed to show how a brand can fulfill these needs. Marketers also recognize that different market segments emphasize different need levels. For example, a young single person may be attempting to satisfy social or self-esteem needs in purchasing a car, while a family with children will focus more on safety needs. 53) C Focus groups are small numbers of people with similar backgrounds and/or interests who are brought together to discuss a particular product, idea, or issue. 54) E In-depth interviews are face-to-face situations in which an interviewer asks a consumer to talk freely in an unstructured interview using specific questions designed to obtain insights into his or her motives, ideas, or opinions. 55) C Version 1

In this scenario, James is using an association test. Association testing is a technique in which an individual is asked to respond with the first thing that comes to mind when he or she is presented with a stimulus; the stimulus may be a word, picture, ad, and so on. 56) C Bloomingdale’s increased the level of sensory input with the intention of getting noticed by consumers. 57) A Projective techniques are efforts designed to gain insights into consumers’ values, motives, attitudes, or needs that are difficult to express or identify by having them project these internal states upon some external object. 58) D Psychoanalytic theory has been criticized as being too vague, unresponsive to the external environment, and too reliant on the early development of the individual. It also uses a small sample for drawing conclusions. Because of the emphasis on the unconscious, results are difficult if not impossible to verify, leading motivation research to be criticized for both the conclusions drawn and its lack of experimental validation. 59) B Psychoanalytic theory has been criticized as being too vague, unresponsive to the external environment, and too reliant on the early development of the individual. It also uses a small sample for drawing conclusions. 60) B

Version 1

The initial search effort often consists of an attempt to scan information stored in memory to recall past experiences and/or knowledge regarding various purchase alternatives. This information retrieval is referred to as internal search. 61) D The second stage in the consumer decision-making process is information search. Once consumers perceive a problem or need that can be satisfied by the purchase of a product or service, they begin to search for information needed to make a purchase decision. 62) B In this scenario, John is engaged in external information search. External sources of information include personal sources such as friends, relatives, or co-workers; marketer-controlled sources such as information from advertising, salespeople, or point-of-purchase displays; Internet sources such as organic and sponsored information available through companies’ websites and consumers’ postings; public sources including articles in magazines or newspapers and reports on TV; and personal experience such as actually handling, examining, or testing the product. 63) C Perception is the process by which an individual receives, selects, organizes, and interprets information to create a meaningful picture of the world. Perception is an individual process; it depends on internal factors such as a person’s beliefs, experiences, needs, moods, and expectations. 64) C

Version 1

Perception is the process by which an individual receives, selects, organizes, and interprets information to create a meaningful picture of the world. Perception is an individual process; it depends on internal factors such as a person’s beliefs, experiences, needs, moods, and expectations. 65) B Sensation is the immediate, direct response of the senses (taste, smell, sight, touch, and hearing) to a stimulus such as an ad, package, brand name, or point-of-purchase display. Perception uses these senses to create a representation of the stimulus. 66) A Marketers try to increase the level of sensory input so that their advertising messages will get noticed. For example, Avon uses scent strips for many products from perfumes to bubble baths in their catalogs. 67) D Selective exposure occurs as consumers choose whether or not to make themselves available to information. 68) A James is exhibiting selective attention. Selective attention occurs when the consumer chooses to focus attention on certain stimuli while excluding others. One study of selective attention estimated that the typical consumer is exposed to nearly 1,500 ads per day yet perceives only 76 of these messages. 69) B

Version 1

In this scenario, Ryan is experiencing selective exposure. Selective exposure occurs as consumers choose whether or not to make themselves available to information. For example, a viewer of a television show may change channels or leave the room during commercial breaks. 70) C Consumers may engage in selective comprehension, interpreting information on the basis of their own attitudes, beliefs, motives, and experiences. They often interpret information in a manner that supports their own position. 71) D Because of selective retention, consumers do not remember all the information they see, hear, or read even after attending to and comprehending it. Mnemonics such as symbols, rhymes, associations, and images that assist in the learning and memory process are helpful. 72) C Mnemonics such as symbols, rhymes, associations, and images that assist in the learning and memory process are helpful. Many advertisers use telephone numbers that spell out the company name and are easy to remember. 73) D These ads hope to boost selective retention. Selective retention means consumers do not remember all the information they see, hear, or read even after attending to and comprehending it. Mnemonics such as symbols, rhymes, associations, and images that assist in the learning and memory process are helpful. Many advertisers use telephone numbers that spell out the company name and are easy to remember. 74) D Version 1

Subliminal perception refers to the ability to perceive a stimulus that is below the level of conscious awareness. Psychologists generally agree it is possible to perceive things without being consciously aware of them. 75) D The various brands identified as purchase options to be considered during the alternative evaluation process are referred to as the consumer’s evoked set. 76) D Todd’s drinks exemplify an evoked set. The various brands identified as purchase options to be considered during the alternative evaluation process are referred to as the consumer’s evoked set. The evoked set is generally only a subset of all the brands of which the consumer is aware. 77) D Evoked sets and evaluative criteria are relevant during the alternative evaluation stage. The various brands identified as purchase options to be considered during the alternative evaluation process are referred to as the consumer’s evoked set. Evaluative criteria are the dimensions or attributes of a product or service that are used to compare different alternatives. 78) A Evaluative criteria are the dimensions or attributes of a product or service that are used to compare different alternatives. Evaluative criteria can be objective or subjective. 79) D Functional and psychosocial consequences are important during the alternative evaluation stage of the consumer decision-making process. Once consumers have identified an evoked set and have a list of alternatives, they must evaluate the various brands. Version 1

80) D Evaluative criteria are the dimensions or attributes of a product or service that are used to compare different alternatives. Evaluative criteria can be objective or subjective. For example, in buying an automobile, consumers use objective attributes such as price, warranty, and fuel economy as well as subjective factors such as image, styling, and performance. 81) B Psychosocial consequences are abstract outcomes that are more intangible, subjective, and personal, such as how a product makes you feel or how you think others will view you for purchasing or using it. 82) A Functional consequences are the concrete outcomes of product or service usage that are tangible and directly experienced by consumers. 83) B Functional consequences are concrete outcomes of product or service usage that are tangible and directly experienced by consumers. The taste of a soft drink or a potato chip, the acceleration of a car, and the speed of the Internet service provider are examples of functional consequences. 84) A The examples given are functional consequences. Functional consequences are concrete outcomes of product or service usage that are tangible and directly experienced by consumers. The taste of a soft drink or a potato chip, the acceleration of a car, and the speed of an Internet service provider are examples of functional consequences. 85) D

Version 1

The taste of buttered popcorn is a functional consequence. Functional consequences are concrete outcomes of product or service usage that are tangible and directly experienced by consumers. The taste of a soft drink or a potato chip, the acceleration of a car, and the speed of the Internet service provider are examples of functional consequences. 86) B The feeling of prestige is a psychosocial consequence. Psychosocial consequences are abstract outcomes that are intangible, subjective, and personal, such as how a product makes you feel or how you think others will view you for purchasing or using it. 87) B The given examples are psychosocial consequences. Psychosocial consequences are abstract outcomes that are intangible, subjective, and personal, such as how a product makes you feel or how you think others will view you for purchasing or using it. 88) B Evaluative criteria are the dimensions or attributes of a product or service that are used to compare different alternatives. Evaluative criteria can be objective or subjective. For example, in buying an automobile, consumers use objective attributes such as price, warranty, and fuel economy as well as subjective factors such as image, styling, and performance. 89) A

Version 1

Functional consequences are concrete outcomes of product or service usage that are tangible and directly experienced by consumers. The taste of a soft drink or a potato chip, the acceleration of a car, and the speed of the Internet service provider are examples of functional consequences. Psychosocial consequences are abstract outcomes that are more intangible, subjective, and personal, such as how a product makes you feel or how you think others will view you for purchasing or using it. 90) D Attitudes are learned predispositions to respond to an object and are some of the most heavily studied concepts in consumer behavior. More recent perspectives view an attitude as a summary construct that represents an individual’s overall feelings toward or evaluation of an object. 91) C Beliefs concerning specific attributes or consequences that are activated and form the basis of an attitude are referred to as salient beliefs. Marketers should identify and understand these salient beliefs and recognize that the saliency of beliefs varies among different market segments, over time, and across different consumption situations. 92) C At some point in the buying process, the consumer must stop searching for and evaluating information about alternative brands in the evoked set and make a purchase decision. As an outcome of the alternative evaluation stage, the consumer may develop a purchase intention or predisposition to buy a certain brand. 93) B

Version 1

The example rules exemplify heuristics, simplified decision rules that help consumers make their purchase decisions. For familiar products that are purchased frequently, consumers may use price-based heuristics (buy the least expensive brand) or promotion-based heuristics (choose the brand for which I can get a price reduction through a coupon, rebate, or special deal). 94) A This scenario is an example of a marketer using the affect referral decision rule. In the affect referral decision rule, consumers choose on the basis of an overall impression or summary evaluation of the various alternatives under consideration. Marketers selling familiar and popular brands may appeal to an affect referral rule by stressing overall affective feelings or impressions about their products. Market leaders, whose products enjoy strong overall brand images, often use ads that promote the brand by appealing to affect. 95) A In the affect referral decision rule, consumers make a selection on the basis of an overall impression or summary evaluation of the various alternatives under consideration. 96) B One type of heuristic is the affect referral decision rule, in which consumers make a selection on the basis of an overall impression or summary evaluation of the various alternatives under consideration. This decision rule suggests that consumers have affective impressions of brands stored in memory that can be accessed at the time of purchase. 97) D

Version 1

Brand loyalty is a preference for a particular brand that results in its repeated purchase; of course, brand loyalty is not limited to nondurables. Consumers develop loyalties to many types of products and services. Marketers strive to develop and maintain brand loyalty among consumers. 98) B As an outcome of the alternative evaluation stage, the consumer may develop a purchase intention or predisposition to buy a certain brand. Purchase intentions are generally based on a matching of purchase motives with attributes or characteristics of brands under consideration. 99) C Peter’s repeat purchases indicate strong brand loyalty. Brand loyalty is a preference for a particular brand that results in its repeated purchase; of course, brand loyalty is not limited to nondurables. Consumers develop loyalties to many types of products and services. Marketers strive to develop and maintain brand loyalty among consumers. 100) A The consumer decision process does not end with the purchase. After using the product or service, the consumer compares the level of performance with expectations and is either satisfied or dissatisfied. The postpurchase evaluation process is important because the feedback acquired from actual use of a product will influence the likelihood of future purchases. 101) E

Version 1

The consumer decision process does not end with the purchase. After using the product or service, the consumer compares the level of performance with expectations and is either satisfied or dissatisfied. Satisfaction occurs when the consumer’s expectations are either met or exceeded; dissatisfaction results when performance is below expectations. 102) C The consumer decision process does not end with the purchase. After using the product or service, the consumer compares the level of performance with expectations and is either satisfied or dissatisfied. Satisfaction occurs when the consumer’s expectations are either met or exceeded; dissatisfaction results when performance is below expectations. 103) C Cognitive dissonance is a feeling of psychological tension or postpurchase doubt that a consumer experiences after making a difficult purchase choice. Dissonance is more likely to occur in important decisions where the consumer must choose among close alternatives (especially if the unchosen alternative has unique or desirable features that the selected alternative does not have). 104) B Jason is experiencing cognitive dissonance. Cognitive dissonance is a feeling of psychological tension or postpurchase doubt that a consumer experiences after making a difficult purchase choice. Dissonance is more likely to occur in important decisions where the consumer must choose among close alternatives (especially if the unchosen alternative has unique or desirable features that the selected alternative does not have). 105) A Version 1

Many of the purchase decisions we make as consumers are based on a habitual or routine choice process. For many low-priced, frequently purchased products, the decision process consists of little more than recognizing the problem, engaging in a quick internal search, and making the purchase. The consumer spends little or no effort engaging in external search or alternative evaluation. 106) E A more extensive decision-making process may occur when consumers have limited experience in purchasing a particular product or service and little or no knowledge of the brands available and/or the criteria to use in making a purchase decision. 107) C Consumer learning has been defined as “the process by which individuals acquire the purchase and consumption knowledge and experience they apply to future related behavior.” 108) A Behavioral learning theories are based on the stimulus-response orientation (S-R), the premise that learning occurs as the result of responses to external stimuli in the environment. Behavioral learning theorists believe learning occurs through the connection between a stimulus and a response. 109) B Classical conditioning assumes that learning is an associative process with an already existing relationship between a stimulus and a response. Probably the best-known example of this type of learning comes from the studies done with animals by the Russian psychologist Pavlov. 110) A

Version 1

In this scenario, food is considered an unconditioned stimulus. Probably the best-known example of this type of learning comes from the studies done with animals by the Russian psychologist Pavlov. Pavlov noticed that at feeding times, his dogs would salivate at the sight of food. The connection between food and salivation is not taught; it is an innate reflex reaction. Because this relationship exists before the conditioning process, the food is referred to as an unconditioned stimulus and salivation is an unconditioned response. 111) D Contiguity occurs when an unconditioned stimulus and conditioned stimulus must be close in time and space. In Pavlov’s experiment, the dog learns to associate the ringing of the bell with food because of the contiguous presentation of the two stimuli. 112) C The perfume example is an application of classical conditioning, which pairs a stimulus that gets a response (the lollipop is associated with sweetness) with a stimulus that will be paired with the unconditioned stimulus over time to generate the same response (Mariah Carey’s perfume will yield a conditioned response: sweetness). 113) B Operant conditioning is also referred to as instrumental conditioning because the individual’s response is instrumental in getting a positive reinforcement or negative reinforcement. Behavior that is reinforced strengthens the bond between a stimulus and a response. 114) C

Version 1

Yummy Soups is applying operant conditioning. Operant conditioning is sometimes referred to as instrumental conditioning because the individual’s response is instrumental in getting a positive reinforcement (reward) or negative reinforcement. Companies attempt to provide their customers with products and services that satisfy their needs and reward them to reinforce the probability of repeat purchase. 115) B This scenario is an example of continuous reinforcement. Learning occurs most rapidly under a continuous reinforcement schedule, in which every response is rewarded—but the behavior is likely to cease when the reinforcement stops. Marketers must provide continuous reinforcement to consumers or risk their switching to brands that do. 116) A Learning occurs most rapidly under a continuous reinforcement schedule, in which every response is rewarded—but the behavior is likely to cease when the reinforcement stops. Marketers must provide continuous reinforcement to consumers or risk their switching to brands that do. 117) A Reinforcement schedules can also be used to influence consumer learning and behavior through a process known as shaping, the reinforcement of successive acts that lead to a desired behavior pattern or response. 118) C In a promotional context, shaping procedures are used as part of the introductory program for new products. Samples and discount coupons can be used to introduce a new product and take a consumer from trial to repeat purchase. Version 1

119) E Behavioral learning theories have been criticized for assuming a mechanistic view of the consumer that puts too much emphasis on external stimulus factors. They ignore internal psychological processes such as motivation, thinking, and perception; they assume that the external stimulus environment will elicit fairly predictable responses. 120) C Social class refers to relatively homogeneous divisions in a society into which people sharing similar lifestyles, values, norms, interests, and behaviors can be grouped. 121) A Social class refers to relatively homogeneous divisions in a society into which people sharing similar lifestyles, values, norms, interests, and behaviors can be grouped. Sociologists generally agree there are three broad levels of social classes in the United States: the upper (14 percent), middle (70 percent), and lower (16 percent) classes. 122) B Social class refers to relatively homogeneous divisions in a society into which people sharing similar lifestyles, values, norms, interests, and behaviors can be grouped. Sociologists generally agree there are three broad levels of social classes in the United States: the upper (14 percent), middle (70 percent), and lower (16 percent) classes. 123) B Social class refers to relatively homogeneous divisions in a society into which people sharing similar lifestyles, values, norms, interests, and behaviors can be grouped. Sociologists generally agree there are three broad levels of social classes in the United States: the upper (14 percent), middle (70 percent), and lower (16 percent) classes. Version 1

124) A Culture captures the complexity of learned meanings, values, norms, and customs, which makes it the broadest and most abstract of the external factors that influence consumer behavior. 125) E Culture captures the complexity of learned meanings, values, norms, and customs, which makes it the broadest and most abstract of the external factors that influence consumer behavior. Each country has certain cultural traditions, customs, and values that marketers must understand as they develop marketing programs. 126) A Subcultures, or subsets within a given culture with shared beliefs, values, norms, and patterns of behavior that set them apart from the larger cultural mainstream, may be based on differences due to age, geography, religion, race, and/or ethnicity. 127) C Subcultures, or subsets within a given culture with shared beliefs, values, norms, and patterns of behavior that set them apart from the larger cultural mainstream, may be based on differences due to age, geography, religion, race, and/or ethnicity. 128) D Subcultures, or subsets within a given culture with shared beliefs, values, norms, and patterns of behavior that set them apart from the larger cultural mainstream, may be based on differences due to age, geography, religion, race, and/or ethnicity. 129) C

Version 1

A reference group is “a group whose presumed perspectives or values are being used by an individual as the basis for his or her judgments, opinions, and actions.” 130) B Marketers use reference group influences in developing advertisements and promotional strategies. Aspirational reference groups are groups to which we might like to belong and disassociative groups are groups to which we do not wish to belong. 131) B Marketers use reference group influences in developing advertisements and promotional strategies. Aspirational reference groups are groups to which we might like to belong and disassociative groups are groups to which we do not wish to belong. 132) A Marketers use reference group influences in developing advertisements and promotional strategies. Aspirational reference groups are groups to which we might like to belong and disassociative groups are groups to which we do not wish to belong. 133) B In this example, all the members of a family who use a car are referred to as the consumers. Consumers are the actual users of the product. In the case of a family car, all family members are consumers. 134) D In this scenario, Jim is the information provider. The information provider is an individual responsible for gathering information to be used in making the decision. 135) A Version 1

The influencer is the person who exerts power as to what criteria will be used in the selection process. 136) B The individual who performs the physical act of making the purchase is called the purchasing agent. 137) C Initiator is the person responsible for initiating the purchase decision process. 138) A Social class structures are usually based on occupational status, educational attainment, and income. 139) E Some consumer researchers believe that cross-disciplinary research is better suited for the study of consumers because it takes into account their complexity and multidimensionality. When considered along with psychological research, these alternative approaches help researchers better understand the impact of communications.

Version 1

CHAPTER 5 TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) Distractions from technology, including laptops, tablets, and mobile phones/smartphones, can introduce noise into the communication model. ⊚ ⊚

true false

2) Hierarchy models of communication response delineate the series of steps potential purchasers must be taken through to move them from unawareness to readiness to purchase a product. ⊚ ⊚

true false

3) According to the McKinsey group, mass media is a unique component of the consumer decision journey because it’s the only form of marketing that can touch consumers at each and every stage, from when they’re pondering brands and products right through to post-purchase, when their potential advocacy influences others. ⊚ ⊚

true false

4) The advanced analytics available from digital media allow data-driven consumer packaged goods marketers to identify target audiences based on their purchase or other behavior. ⊚ ⊚

true false

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

Version 1

true false

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

7) When Blueberry Designs decided to patent their blueberry-color soles, they created a recognizable symbol of their brand. This communication process of creating a message to be received and understood by the consumer is called A) sourcing. B) encoding. C) decoding. D) word-of-mouth. E) messaging.

8) Success Advertising continues to be a leader in creating integrated marketing campaigns due to their ability to create an image or impression that is appropriate for the channel of communication. That image or impression is also known as a A) source. B) visual. C) channel. D) pattern. E) message.

Version 1

9) Some brands use celebrities who relate to their consumer group in ads to represent the brand. In marketing communications, the celebrity is known as the A) attractor. B) entity. C) brand. D) founder. E) source.

10)

Mass media is what type of channel? A) private B) personal C) impersonal D) nonpersonal E) detached

11) Terry, a salesperson for Big Ticket Sales, creates a tailored presentation to share with a consumer and solicit feedback. What type of communication channel is he using? A) private B) personal C) impersonal D) nonpersonal E) detached

12)

Another name for buzz marketing is

Version 1

A) sourcing. B) encoding. C) decoding. D) word of mouth. E) messaging.

13) During events like the Academy Awards, celebrities receive gift bags backstage and at after-parties. Sponsors hope the celebrities will talk about these goodies, sparking consumer interest and generating a type of word-of-mouth marketing called A) viral marketing. B) encoding. C) buzz marketing. D) seeding. E) decoding.

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

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

Version 1

A) viral marketing. B) hierarchy of effects model. C) information processing model. D) buzz marketing. E) innovation adoption model.

16) The digital world of is one channel for word-of-mouth communication to generate buzz about a product. What percent of word-of-mouth communications takes place face to face? A) 35 percent B) 85 percent C) 45 percent D) 25 percent E) 75 percent

17) and

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

A) reservation. B) introversion. C) a social network. D) extroversion. E) timidity.

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

Version 1

A) electronic billboards. B) television C) magazine back covers. D) Facebook. E) Instagram.

19) In the communication process, when the consumer (receiver) and the marketer (sender) share common ground, there is a better chance that successful ________ will occur. A) purchasing B) encoding C) decoding D) processing E) tracking

20) Productivity Advertising is working with Inroad Enterprises to train a new team of salespeople on the steps to guide a customer through the buying process. They are teaching the stages of attention, interest, desire, and action. This is known as the A) hierarchy of effects model. B) standard learning model. C) AIDA model. D) innovation adoption model. E) low-involvement hierarchy.

21) Creative Boutiques is working with Success Advertising to develop targeted media for their next direct-mail campaign. Their exclusive, well-defined clientele are accustomed to being catered to by a small group of salespeople who function like personal shoppers. Creative Boutiques addresses a

Version 1

A) market channel. B) market source. C) market segment. D) market dissonance. E) market niche.

22) Success Advertising realizes that consumer move from being unaware of a brand to learning about a number of brands, then methodically reducing the number through familiarity and evaluation before choosing to purchase. What foundational model is basis for the classic purchase funnel metaphor? A) hierarchy of effects model B) standard learning model C) ADIA model D) innovation adoption model E) low-involvement hierarchy

23) Apollo has a knack for photography. He is ready to purchase a high-end camera but is unsure where to start. He signed up at the local BuyItAll for a class to learn more about the various brands and to see how he feels about the equipment in use. After customers complete the course, BuyItAll offers both a 10% discount for purchases and a trial period for exchanges. Apollo is participating in an alternative response hierarchy model called the A) hierarchy of effects model. B) standard learning model. C) consumer decision journey. D) elaboration likelihood model. E) central route to persuasion.

24) Annalise is interested in changing her beauty routine. She has visited make-up counters, read marketing ads and reviews online, and visited a few spas during her research. Her decisionmaking process is not straight forward, but a series of feedback loops and active shopping with controlled touch points. Annalise is practicing which of the following response models?

Version 1

A) hierarchy of effects model B) standard learning model C) consumer decision journey D) elaboration likelihood model E) central route to persuasion

25) Annalise has been reading skin care articles on social media, coming to realize that many are detailed advertisements that look like articles. She is paying close attention to the arguments presented in these messages, scrutinizing the content. Annalise is demonstrating A) a hierarchy of effects model. B) a standard learning model. C) consumer decision journey. D) an elaboration likelihood model. E) central route to persuasion.

26) Success Advertising knows that partnering with the best celebrity match to represent the KB brand is critical to the success of their integrated marketing plan. They want consumers to react to favorably to the celebrity and generate A) support arguments. B) sources. C) source derogations. D) counterarguments. E) source bolsters.

27) Annaliese has found an ad article for a skin care product brand offered by her local spa. The ad, along with the sales presentation by her spa aesthetician (who also sells the product on commission) present strong arguments for the brand’s benefits. Annaliese is finding it hard to refute these arguments as she carefully considers and evaluates the message toward a major investment in the brand’s line of products. Which model describes Annaliese’s response to the persuasive messages?

Version 1

A) hierarchy of effects model B) a standard learning model C) consumer decision journey D) elaboration likelihood model E) central route to persuasion

28) Which of the following statements is true of the way organizations send communication messages? A) They communicate using press releases, websites, and package designs. B) They are legally not allowed to use graphic systems and visual images. C) They use promotions for B2B communications solely. D) They typically use brand names to create recognition but not for communication. E) They do not use logos as a means of communication.

29) ________ is defined as the passing of information, the exchange of ideas, or process of establishing a commonness of thought between a sender and a receiver. A) Negotiation B) Source integration C) Assimilation D) Perception E) Communication

30)

Which of the following statements is true about effective communication?

Version 1

A) Advertising is an effective way of communication because marketers are able to tell consumers how to interpret their messages. B) For effective communication, marketers must understand the meanings that consumers attach to words and symbols. C) Effective integrated marketing communications is usually nonpersonal in nature. D) Effective communication is unaffected by the reception environment. E) The visual nature or color characteristic of an ad has no impact on effectiveness of communication.

31) The ________ of a communication is the person or organization that has information to share with another person or group of people. A) essence B) source C) message D) receiver E) channel

32)

The process of putting thoughts, ideas, or information together in symbolic form is called A) encoding. B) deciphering. C) sourcing. D) seeding. E) decoding.

33) An ad by the Minnesota State Tourism Department that promotes Minnesota as a vacation destination is published in Life Mode magazine. The ad includes a picture of a couple against a scenic backdrop. In this print ad, the source of the advertising message is

Version 1

A) the Minnesota State Tourism Department. B) Life Mode magazine. C) the couple in the scenic picture. D) the slogan. E) the reader of the magazine.

34) Commercials for Vinnie’s Marshmallows describe its marshmallows as a delicious snack for all ages. The commercials show toddlers eating marshmallows as part of their usual diet as well as adults roasting marshmallows over a fire. In these commercials, Vinnie’s is the A) channel messenger. B) encoder. C) decoder. D) source. E) receiver.

35) Lily hosts a well-known television show, Real Life. She also appears in an ad for Rochelle Cosmetics and explains the potential benefits of using these cosmetics. In this scenario, the source of the ad is A) the television network that airs the ad. B) Rochelle Cosmetics. C) Lily. D) the audience. E) the Real Life television show.

36)

The communication process begins with the process of

Version 1

A) encoding. B) encrypting. C) channeling. D) decoding. E) bolstering.

37)

The source or sender of an advertising communication

A) is typically the owner and shareholder of a company. B) cannot be a nonpersonal entity. C) is typically identified as the owner of the medium in which the communication appeared. D) can be an individual who promotes the product in an ad, such as a celebrity. E) is never involved in the encoding process.

38)

Which statement is true of encoding? A) It is also known as channel managing. B) It involves identifying and interpreting a message. C) It involves putting ideas into a symbolic form. D) It involves the creation of “noise.” E) It involves the development of the message.

39)

The encoding process leads to the development of A) a message. B) noise. C) a channel. D) feedback. E) a response.

Version 1

40) In a communication process, ________ refers to the information and/or meaning contained in a message. A) source B) encoding C) decoding D) content E) noise

41) According to the basic model of communication, ________ refers to the way a message is put together in order to deliver an information or intended meaning. A) source B) encoding C) decoding D) design E) content

42) Jim, a doctor, takes out a print ad to advertise his new clinic. He opts for a full-page ad in a weekly publication known as Doctor’s Info. According to the basic model of communication, Doctor’s Info is the A) channel. B) receiver. C) encoder. D) source. E) decoder.

43) According to the basic model of communication, which of the following is an example of a channel?

Version 1

A) The number of customers who redeemed a cents-off coupon B) A billboard beside an interstate highway C) The creative team that designed an ad for a leading retail chain D) A company’s spokesperson E) A celebrity appearing in an ad for a cosmetics brand

44)

Which of the following is an example of a nonpersonal communication channel? A) magazines B) e-mail C) social media D) telemarketing E) stress interviews

45)

Which statement about nonpersonal channels of communication is true? A) They include direct mail and billboards. B) They include methods such as e-mail and social media. C) The Internet cannot be considered a nonpersonal channel. D) They do not include print media. E) They do not include broadcast media.

46)

Which of the following is an example of a personal communication channel? A) radio B) billboard C) newspaper D) e-mail E) magazine

47)

Which of the following can serve as a personal channel of communication?

Version 1

A) sales team B) newspaper C) radio D) magazine E) television

48)

Which of the following statements is true of word-of-mouth (WOM) marketing? A) It involves very formal communication among consumers. B) It is known as company-generated marketing. C) It is considered a weak marketing strategy. D) It can also be described as buzz marketing. E) It is considered to be a part of nonpersonal communication.

49) Aino, a leading automaker, broadcasts a commercial during Moral Decree, a TV program that is viewed by eight million viewers. Which of the following types of communication is occurring in this scenario? A) individualized B) direct response C) nonpersonal D) semiotic E) personal

50) Iconix supermarkets placed an insert in Tuesday’s Great Plains Digest, a regional newspaper that has more than 100,000 subscribers. The newspaper is an example of a(n) ________ channel of communication.

Version 1

A) buzz B) direct-response C) nonpersonal D) interpersonal E) verbal

51)

Which statement about buzz marketing is true?

A) It is an important part of company-generated marketing. B) It uses print media as a primary communication channel, especially for high-end luxury goods. C) It is considered synonymous with bait-and-switch marketing. D) It is a systemized process that encourages people to speak favorably about a product. E) It includes radio and television marketing.

52)

________ is the process of transforming a sender’s message back into thought. A) Decoding B) Encoding C) Channeling D) Sourcing E) Transmitting

53)

Which of the following statements is true of decoding? A) It is heavily influenced by the receiver’s frame of reference. B) It is an interpretation process that requires expert knowledge. C) In most cases, decoding occurs smoothly when a common ground does not exist. D) In order for the process to be effective, the decoder must contradict the encoder. E) It is not influenced by the receiver’s field of experience.

Version 1

54) Which communication process will be most influenced by the experiences, perceptions, attitudes, and values of a message recipient? A) channel transmission B) decoding C) noise D) feedback E) transmission

55) Which component of a communication process is heavily influenced by a receiver’s field of experience? A) encoding B) decoding C) message D) channel E) noise

56) The experiences, perceptions, attitudes, and values a consumer brings to a communication situation are referred to as his or her A) semiotic involvement. B) field of experience. C) common ground. D) source characteristics. E) selective bindings.

57) Zing Candy launches an ad that shows people being revitalized after eating their candy bar. The ad attempts to deliver the message “Instant energy.” Janice Cooper, a viewer of the ad, thinks that people in the ad seem rude and irritating. In terms of the communication process, Janice has ________ the message improperly.

Version 1

A) encoded B) conveyed C) decoded D) transmitted E) channeled

58) The fact that marketing and advertising people have backgrounds and interests that are often quite different from the consumers who comprise mass markets for many products and services makes it difficult to establish A) an encoding process. B) conditioned perceptions. C) response hierarchies. D) a common ground. E) fields of experience.

59) Syn-ergy Drinks, an energy drink manufacturer, launches a television ad in which people are seen feeling energized after consuming Syn-ergy’s drinks. “Revitalization of body and mind” is the message the ad is intended to deliver. However, those who view the ad interpret it as being frivolous and lacking context. One possible explanation for such a highly differential perception of the ads would be the absence of A) an interpretative link. B) a feedback mechanism. C) response hierarchies. D) common ground. E) binding influences.

60)

Which of the following statements is true about ageism in advertising?

Version 1

A) Mature people are more likely to be shown in television than print ads. B) Advertisers typically avoid using adults over the age of 60 and children below the age of 8. C) Because the mean age of the population is increasing, one can expect to see more youth-oriented advertising. D) Age differences generally create disturbances in terms of encoding and channel messaging. E) The difference between the senders’ and receivers’ age can create problems in establishing common ground.

61)

________ is any unplanned distortion or interference in the communication process. A) Semiotics B) Selectivity C) Noise D) Dissonance E) Blocking

62) Bradley is watching an interesting TV program with a group of friends. During the commercial break, he is unable to concentrate on a commercial for a soda drink because all his friends are discussing the events of the show. In this scenario, Bradley is encountering A) poor encoding. B) selective sourcing. C) inappropriate advertiser binding. D) inappropriate advertiser binding. E) disturbances known as noise.

63) Justin failed to understand the message in an ad for Smithline Catering in a daily newspaper as the newspaper print was unclear. With reference to the communication process, the unclear print would constitute

Version 1

A) an encoding hazard. B) a sourcing block. C) negative feedback. D) a perceptive block. E) noise.

64) In a communication process, a receiver’s set of reactions after seeing, hearing, or reading a message is known as a A) noise. B) perception. C) source. D) channeling. E) response.

65) In a communication process, ________ is the part of a receiver’s response that is communicated back to the sender. A) feedback B) noise C) sourcing D) encoding E) decoding

66) Which of the following provides the sender of an advertising message with an appropriate way of monitoring the effectiveness of an intended message? A) encoding mechanisms B) decoding mechanisms C) feedback D) noise filters E) channel

Version 1

67) An ad for the Tributary Hotel in Chicago has a number for people to call if they are interested in reserving rooms or for further information about the hotel. One way to determine the effectiveness of this ad is to count the number of phone calls the hotel receives in response to the ad. This response count is an example of A) feedback. B) encoding. C) noise filtering. D) noise blocking. E) decoding.

68) The element of the communication process that closes the loop in the communications flow and allows a sender to monitor how a message is being received and interpreted is known as A) encoding. B) decoding. C) feedback. D) noise. E) filters.

69) Instantaneous feedback on the effectiveness of a marketing communication method is most likely possible in A) personal-selling situations. B) radio advertising. C) television advertising. D) direct-mail advertising. E) mass-communication channels.

70) Counts of customer visits to a store, consumer inquiries, coupon redemptions, and reply cards are all possible forms of gathering

Version 1

A) encoding systems. B) feedback. C) noise. D) message channels. E) decoding mechanisms.

71) In the context of the marketing communications process, which of the following products is most likely to be promoted by targeting individuals? A) chocolate bars B) fizzy drinks C) real estate D) soap E) pizza

72)

Which of the following is true of market niches?

A) They are usually large mass market segments. B) They are well-defined market segments. C) They are typically reached using mass communication such as advertising and publicity. D) They are not suitable for specialized goods. E) They include broader classes of buyers who have similar needs.

73) The best way to reach a narrowly defined group of customers or a market niche is through A) television advertising and billboards. B) personal-selling and targeted direct mail. C) advertising and radio advertising. D) any form of broadcast media. E) transit advertising, billboards, and publicity.

Version 1

74) Which of the following is most suitable for reaching a large consumer market segment with a broad class of buyers? A) e-mail marketing B) personal selling C) magazine advertising D) targeted direct-mail advertising E) buzz marketing

75)

The AIDA model was developed to represent the stages during the ________ process. A) personal-selling B) magazine advertising C) mass-marketing D) sales promotions E) radio advertising

76) According to the AIDA model, a prospective consumer first passes through the ________ stage. A) attention B) comprehension C) interest D) desire E) action

77)

According to the AIDA model, a customer expressing interest and desire is in the

Version 1

A) affective stage. B) cognitive stage. C) behavioral stage. D) action stage. E) adoption stage.

78) The ________ model is a response model that was developed as a paradigm for setting and measuring advertising objectives. A) AIDA B) hierarchy of effects C) innovation adoption D) adoption response E) diffusion rate

79) The ________ model is the basis for the classic purchase funnel metaphor that is often used to depict the decision process consumers go through. A) diffusion rate B) objective-task C) innovation adoption D) hierarchy of effects E) adoption objective

80) Which of the following response hierarchy models depicts consumers going through the successive stages of awareness, interest, evaluation, trial, and adoption? A) the AIDA model B) the hierarchy of effects model C) the innovation adoption model D) the information processing model E) the adoption differentiation model

Version 1

81) Which of the following response hierarchy models depicts consumers going through the stages of attention, presentation, comprehension, yielding, retention, and behavior? A) the AIDA model B) the hierarchy of effects model C) the innovation adoption model D) the information processing model E) the integrated information response model

82) Which of the following hierarchical response models assumes the receiver in a persuasive communication situation to be an information processor or problem solver? A) the AIDA model B) the hierarchy of effects models C) the innovation adoption model D) the information processing model E) the five-Ws model

83) DigiData Inc. launched a new smartphone with new features in the market. Moreover, the company plans to launch tablets and other groundbreaking digital devices as well. In this scenario, the ________ model would be most relevant for communicating information about the new product to consumers. A) hierarchy of effects B) AIDA C) innovation adoption D) cognitive response E) information processing

84) Gianna is using “insight selling,” which is based on the ________ model, which takes a customer through the different stages in the sales process, ending with action.

Version 1

A) hierarchy of effects B) AIDA C) innovation adoption D) cognitive response E) information processing

85) Only the ________ model has a retention stage, which is important for consumers who are considering purchase decisions and who are not ready to make a purchase immediately. A) hierarchy of effects B) AIDA C) innovation adoption D) cognitive response E) information processing

86) Velocity Inc., a manufacturer of sports shoes, conducted a marketing research study and found that a vast majority of consumers recall the company’s “Accelerate further” slogan. In this scenario, it can be concluded that A) consumers are aware of Velocity’s advertising. B) consumers have favorable attitudes toward Velocity. C) Velocity is using a concentrated marketing program. D) consumers have evaluated Velocity’s products. E) Velocity has adopted a niche marketing strategy.

87) Attention, awareness, and knowledge are all examples of the ________ stage of the response process and appear in all of the models describing the consumer response process.

Version 1

A) cognitive B) affective C) behavioral D) conative E) comprehension

88) Trial, purchase, adoption, and rejection are all examples of the ________ stage of the response process. A) cognitive B) affective C) behavioral D) motivational E) learning

89) The ________ stage of the response process refers to a receiver’s feelings for a particular brand and includes stronger levels of desire, preference, or conviction. A) cognitive B) affective C) behavioral D) conative E) learning

90) According to the ________, a consumer is an active participant in a communication process who gathers information through active studying. A) standard learning hierarchy B) low-involvement hierarchy C) dissonance/attribution model D) peripheral processing model E) maximum likelihood model

Version 1

91) According to the standard learning model, through which of the following response sequences does a consumer pass? A) learn → feel → do B) learn → do → feel C) feel → learn → do D) do → feel → learn E) do → learn → feel

92) The ________ model, as proposed by Michael Ray, explains the decision-making process when a consumer buys a high-involvement product for which there is a high amount of differentiation among competing brands. A) standard learning B) dissonance/attribution C) low-involvement D) cognitive response E) five-Ws

93) The ________ model proposed by Michael Ray involves selective learning, whereby a consumer seeks information that supports a purchase choice made and avoids information that would raise doubts about the decision. A) standard learning B) dissonance/attribution C) low-involvement D) cognitive response E) five-Ws

Version 1

94) Management schools that offer MBA courses are typically rated annually by business publications. When an MBA program rates high on a list, the information is publicized. The purpose of the communication is to help prospective students choose between two equally viable but complex MBA courses. In this scenario, the ________ model is applicable. A) standard learning B) dissonance/attribution C) low-involvement D) cognitive response E) five-Ws

95) According to the dissonance/attribution model, during the decision-making process, through which of the following response sequences does a consumer pass? A) learn →feel → do B) learn → do → feel C) feel → learn → do D) do → feel → learn E) do → learn → feel

96) According to the ________ model proposed by Michael Ray, learning from the mass media occurs after a purchase is made. A) low-involvement B) standard learning C) dissonance/attribution D) cognitive response E) elaboration likelihood

97) A study conducted by Scott Hawkins and Stephen Hoch found that under ________ conditions, repetition of simple product claims increased consumers’ memory of and belief in those claims, and other items bought without much consideration use a heavy repetition strategy.

Version 1

A) individual response B) standard learning C) dissonance/attribution D) low-involvement E) customary learning

98) For which of the following products would an advertiser be more likely to use the lowinvolvement hierarchy to explain the consumer decision-making process? A) bar of soap B) digital camera C) refrigerator D) yard landscaping E) wedding dress

99) When Brian explains to his supervisor that advertising communication may not lead to immediate behavioral response or purchase, and uses a purchase funnel analogy to explain that a series of effects must occur, with each step fulfilled before the consumer can move to the next stage, he is explaining the ________ model of how advertising works. A) AIDA B) diffusion of innovations C) hierarchy of effects D) innovation adoption E) information processing

100)

Which of the following is true of the low-involvement hierarchy?

Version 1

A) It usually occurs during the purchase of expensive products. B) It occurs when differences among brands are minimal. C) It is also known as the dissonance/attribute model. D) It does not advocate the use of broadcast media. E) It follows a feel → learn → do sequence.

101) In the ________ hierarchy, a consumer engages in passive learning and random information catching rather than active information seeking. A) standard learning B) low-involvement C) dissonance/attribution D) habit formation E) information processing

102) Pluto Inc., a dairy products manufacturer, recognizes that many customers are passive learners and are generally averse to active information seeking. In order to reach out to these customers, the company incorporated jingles and slogans in its ads. In this scenario, Pluto is assuming that customers make purchases based on the ________ hierarchy. A) standard learning B) low-involvement C) dissonance/attribution D) habit-formation E) information-processing

103)

Which of the following is true of low-involvement advertising?

Version 1

A) It involves using a strategy that is known as visual image personality. B) It is typically used for products that require extensive evaluation. C) It is generally considered to be an ineffective strategy. D) It is heavily utilized by luxury automobile manufacturers. E) It does not include mass-media advertising strategies.

104)

Marketers of products such as mustard, paper towels, and batteries

A) must avoid using mass-media advertising strategies. B) must use slogans, symbols, and visual image personalities to promote their products. C) must use personal-selling strategies in order to create a sustainable marketing program. D) must opt for high-involvement advertising strategies. E) must avoid sales promotions and publicity.

105) As a part of their creative strategy, advertisers of Vittle’s Nuts use “Snippy the Bunny” as the brand’s symbol in its ad campaigns. Through this strategy, the company aims to enhance brand identification and recognition. In this scenario, Snippy is an example of A) a visual image personality. B) an affective character. C) a selectively remembered personality. D) high-involvement advertising appeal. E) a pseudo-celebrity.

106)

Visual image personalities

Version 1

A) are typically used with complex products that require high involvement. B) generally appear in ads for low-involvement products. C) require central route processing to be effective. D) typically abbreviate the cognitive stage of a consumer decision-making process. E) are used when consumers must go through all stages of AIDA before making a purchase.

107)

From a promotional planning perspective, it is important that marketers A) create a divisional marketing communications program. B) avoid using broadcast and print media strategies. C) determine which type of response process is most likely to occur. D) avoid using an integrated marketing communications program. E) eliminate the need for the trial stage in the response process.

108)

Typically, when consumers are in a “passive” shopping mode,

A) they are purposefully seeking assistance in order to make informed purchase decisions. B) the information and advice they need to make a purchase comes to them unsolicited. C) they tend to visit the website of a company or brand for product information. D) they are perpetually in an information processing role. E) they seek help from search engines in selecting brands of their choice.

109)

The social consumer decision journey framework recognizes that

Version 1

A) consumers make purchase decisions regarding low-involvement products based on their social status and purchasing power. B) consumers follow a linear sequence of awareness, interest, evaluation, and trial before ultimately adopting a product. C) consumers are always active participants in a communication process and they gather information through active learning. D) promotional campaigns should be designed to motivate consumers to take immediate action. E) consumers connect with large numbers of brands through digital channels that are often beyond marketers’ control.

110)

Consumers in an “active” shopping mode A) typically receive information in an unsolicited manner. B) do not pass through the “evaluate” and “awareness” stages. C) are more likely to purposefully seek information and/or assistance. D) are generally averse to purchasing new products. E) are not influenced by marketer-dominated touch points.

111) ________ are thoughts that occur to a consumer when reading, viewing, and/or hearing a communication of advertising messages. A) Cognitive responses B) Affective responses C) Selective impressions D) Behavioral responses E) Conative impressions

112) Jessica was asked to view a television ad for a movie that was due to be released at a later date. After viewing the ad, she was required to fill a questionnaire that included questions such as “Did the ad make you want to see the movie?” “Did the movie title seem appropriate?” and “Did you understand the theme of the movie?” In this scenario, Jessica’s ________ responses are being noted. Version 1

A) cognitive B) kinesthetic C) selective D) behavioral E) creative

113) After watching a detergent ad that claimed to remove stains with “just a few drops,” Jim stated, “I doubt any detergent can remove stains with only a few drops.” This scenario is an example of a A) counterargument. B) support argument. C) source bolster. D) cognitive dissonance. E) source blockage.

114) Tia saw a television commercial that claimed a specific brand of pain reliever to be much more effective than any other brand available in the market. After watching the entire message, Tia stated, “This painkiller cannot be more effective than mine.” In this scenario, Tia is expressing A) a counterargument. B) a support argument. C) source bolstering. D) negative dissonance. E) positive dissonance.

115) An ad for Hush designer handbags shows the company’s new line of affordable handbags made from genuine alligator leather. After seeing the ad, Erika stated, “You can’t get a genuine alligator handbag for $50! Please!” Erika’s response to the ad is an example of a

Version 1

A) negative ad execution thought. B) negative source derogation. C) support argument. D) counterargument. E) positive source bolster.

116) Bianca saw a magazine ad for Savvy Sheen hair shampoo that claimed it contains only natural herbal extracts and milk proteins. The ad also stated that Savvy’s products were free of sodium laureth sulfate. Bianca instantly remarked, “I’m going to try this shampoo. I think I will like it.” Bianca’s response to the ad is an example of a A) negative source bolster. B) source derogation. C) support argument. D) counterargument. E) positive source bolster.

117) Kevin saw a television ad for the season finale of Expedition of Triumph, a reality series. He was impressed with the ad, so he made a mental note of the day and time the finale was set to be aired. In this scenario, Kevin’s response is an example of A) a noncognitive response. B) a source derogation. C) a support argument. D) a counterargument. E) an emotional argument.

118) Jared hears a radio commercial for a weight-loss program that claims significant results in 30 days through the use of hypnosis. Jared thinks to himself, “This sounds promising. I think I should give it a try.” This thought would be an example of

Version 1

A) a positive source derogation. B) a rebuttal. C) a counterargument. D) a support argument. E) an ad executive thought.

119)

Which of the following is true of source derogation? A) They are positive thoughts about the spokesperson in an ad. B) They generally lead to a reduction in message acceptance. C) They enhance brand recognition. D) They are considered to be a useful tool for measuring consumer loyalty. E) They are one of the least important types of emotional responses to an ad.

120)

Negative thoughts about a spokesperson or organization making a claim are known as A) source derogations. B) counterarguments. C) source bolsters. D) source blockages. E) message filters.

121) Katy sees a television commercial for a shampoo, which is being endorsed by Adriana Tatum, a young movie actress. Katy thinks to herself, “She’s such a drama queen! She’ll do anything for media attention. I wouldn’t buy anything she promotes.” This is an example of a A) counterargument. B) support argument. C) source bolster. D) source derogation. E) message blockage.

Version 1

122)

Which of the following is true of source bolsters? A) They are positive reflections toward an ad. B) They are emotional responses to an ad. C) They are also known as positive counterarguments. D) They are less likely to lead to consumer purchase. E) They are an individual’s thoughts about the ad itself.

123) AB Corp. hires Natasha Cooper, a popular movie actress, to be the brand ambassador for the company. The company hopes that her endorsements of its products will increase the popularity of the brand and also attract a large number of customers. Receivers who respond favorably to Natasha’s endorsements will express A) source derogations. B) counterarguments. C) source bolsters. D) source blockages. E) message synergy.

124) A company that hires a spokesperson with whom its target audience is likely to identify and respond favorably is A) attempting to create cognitive dissonance. B) creating a source bolster. C) engaging in niche marketing. D) creating an ambivalent situation. E) enabling counterarguments.

125) ________ include consumers’ reactions to ad factors such as the creativity of an ad, the quality of the visual effects, colors, and voice tones.

Version 1

A) Source bolsters B) Source derogations C) Ad execution-related thoughts D) Counterarguments E) Ad dissonance thoughts

126) With reference to ad execution thoughts, advertisers are interested in consumers’ reactions to an ad because A) the company’s image is directly proportional to the number of advertisements it produces annually. B) they want to segregate the target audience according to their cognitive reactions to an advertisement. C) affective reactions are an important determinant of advertising effectiveness. D) this knowledge enables organizations to create suitable counterarguments. E) this knowledge helps organizations determine the direction of the integrated marketing communications process.

127) The ________ model addresses the differences in the way consumers process and respond to persuasive advertising messages. A) elaboration likelihood B) five-Ws C) AIDA D) information processing E) cognitive response

128) The elaboration likelihood model (ELM) was developed to explain how persuasive communications lead to persuasion by influencing

Version 1

A) dissonance formation. B) attributions. C) source bolsters. D) attitudes. E) group norms.

129) According to the elaboration likelihood model, the ________ to process a message depends on such factors as involvement, personal relevance, and individuals’ needs and arousal levels. A) dissonance B) motivation C) ability D) attitude E) competency

130) Jake is planning to buy a new smartphone. He studied the contents of an ad describing the superiority of TL smartphones and scrutinized how the advertising message argued in favor of TL’s superiority. According to the elaboration likelihood model (ELM), Jake is engaging in which route to persuasion? A) support arguing B) central processing C) peripheral processing D) source bolstering E) comparative analysis

131) The elaboration likelihood model (ELM) states that there are two basic routes to persuasion: the central route and the peripheral route. Under the central route to persuasion, a message recipient is viewed as

Version 1

A) a pioneer of word-of-mouth advertising campaigns. B) a passive participant who relies heavily on imagery processing. C) a very involved participant in the communications process. D) having low ability to attend to and comprehend a message. E) likely to engage in only minor cognitive processing.

132) 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

133) The elaboration likelihood model (ELM) states that there are two basic routes to persuasion, the central route and the peripheral route. In the case of the peripheral route to persuasion, A) the message will more likely create favorable attitudes if the endorser in the ad is attractive and likeable. B) the message should contain a lot of detailed information. C) the receiver is actively involved in the communication process. D) the quality of the message claims is more important than a spokesperson, headline, pictures, or music. E) the message deals with high-involvement buying situations.

134) Trevor is watching a late-night TV show when a low-budget commercial for a local restaurant comes on air. He is affronted by the poor quality of the commercial and immediately tunes out the message without processing any of the information. According to the elaboration likelihood model (ELM), Trevor is engaging in which of the following routes to persuasion?

Version 1

A) support arguing B) central processing C) peripheral processing D) source bolstering E) source blocking

135)

Research on the elaboration likelihood model (ELM) has shown that

A) celebrities are effective peripheral cues in a high-involvement situation. B) celebrity endorsers have a significant effect on brand attitudes in low-involvement situations. C) the quality of message arguments is likely to be very important in low-involvement situations. D) the quality of message claims is always less likely to be persuasive than the status of celebrity endorsers. E) peripheral cues are more important than detailed messages in high-involvement situations.

136) Mellow Inc., a manufacturer of toiletry products, believes commercials for toiletries are processed primarily through a peripheral processing route. Which of the following advertising strategies should Mellow use? A) very detailed ads with a great deal of information about body hygiene B) detailed ads with strong message arguments about Mellow brands C) ads that use popular celebrity endorsers such as movie stars and sports personalities D) ads that pay more attention to information in the copy than executional elements such as visual imagery E) ads that are free of any distractions like pictures or jingles

Version 1

Answer Key Test name: Chap 05_12e 1) TRUE Noise is an extraneous factor that can distort or interfere with message reception. Multitasking that leverages technology can result in unplanned distortion or interference. 2) TRUE The hierarchy models of communication response are useful to promotional planners from several perspectives. They delineate the series of steps potential purchasers must be taken through to move them from unawareness of a product or service to readiness to purchase it. 3) FALSE According to the McKinsey Group, social media is a unique component of the consumer decision journey because it’s the only form of marketing that can touch consumers at each and every stage, from when they’re pondering brands and products right through to postpurchase, when their potential advocacy influences others. 4) TRUE One reason consumer packaged goods (CPG) marketers have shifted more of their budgets to digital media is that the efficiency of digital ads appeals to them, especially as they try to control spending. Another reason is many of the CPG marketers are highly data driven, so the advance analytics help them be more efficient. 5) TRUE

Version 1

Cognition is the thinking dimension of the person’s response; affect is the feeling dimension of the person’s response; and experience is the feedback dimension based on the outcomes of product purchasing and usage. 6) D The communication process is often very complex. Success depends on such factors as the nature of the message, the audience’s interpretation of it, and the environment in which it is received. The receiver’s perception of the source and the medium used to transmit the message may also affect the ability to communicate, as do many other factors. Words, pictures, sounds, and colors may have different meanings to different audiences, and people’s perceptions and interpretations of them vary. 7) B The sender’s goal is to encode a message in such a way that it will be understood by the receiver. This means using words, signs, or symbols that are familiar to the target audience. 8) E Messages must be put in a transmittable form that is appropriate for the channel of communication being used, and must contain the information or meaning the source hopes to convey. 9) E The sender, or source, of a communication is the person or organization that has information to share with another person or group of people. The source may be an individual (say, a salesperson or hired spokesperson, such as a celebrity, who appears in a company’s advertisements) or a nonpersonal entity (such as the corporation or organization itself). Version 1

10) D Nonpersonal channels of communication are those that carry a message without direct, interpersonal contact between the sender and receiver. Nonpersonal channels are generally referred to as the mass media or mass communications, since the message they contain is directed to more than one person and is often sent to many individuals at one time. 11) B Salespeople serve as personal channels of communication when they deliver a selling message or presentation to a buyer or potential customer. A major advantage of personal channels of communication is that the message or presentation can be tailored to the individual or audience and the sender receives direct feedback from them. 12) D The use of word-of-mouth marketing is nothing new, but buzz marketing is a systematic and organized effort to encourage favorable word-ofmouth. 13) C Buzz marketing is a term used to describe word-of-mouth communication about a company, its product/services, and/or brands as well as its advertising messages and is often encouraged by a marketer. Efforts by marketers to generate word-of-mouth discussion about their brands is really nothing new as tactics such as handing out samples and providing products to influential people and encouraging them to recommend the brand to others have used for many years. 14) D

Version 1

Another important aspect of viral marketing is what is often referred to as seeding, which involves identifying and choosing the initial group of consumers who will be used to start the diffusion or spreading of a message. Companies that utilize viral marketing must develop a seeding strategy which involves determining how many initial consumers or “seeds” are needed and selecting the right consumers to start the viral process. 15) A In the new era of digital media, traditional word-of-mouth and buzz marketing techniques have given way to more systematic and organized efforts to encourage people to speak favorably about a company or brand and to recommend it to others in their social network. Many marketers are using viral marketing, which refers to the act of propagating marketing-relevant messages through the help and cooperation of individual consumers. 16) E While viral techniques have become a popular way to generate buzz about a brand, research conducted by the Keller Fay Group—a market research company that focuses on word-of-mouth marketing—has shown that some 90 percent of conversations about products, services, and brands take place offline.18 Face-to-face interaction accounts for the vast majority of word- of-mouth communications (75 percent) about a brand while phone conversations rank second (15 percent). 17) D Traits such as extroversion, innovativeness, and altruism are related to tendencies to share messages, as well as demographics like age and gender. 18) B Version 1

Advertising plays a role in word-of-mouth (WOM), and about a quarter of all consumer conversations about brands involve discussions about advertising. And of the brand conversations in which consumers talk about advertising, television advertising is the most prevalent form, which is not surprising given that more money is spent on TV ads than any other medium. 19) C The receiver is the person(s) with whom the sender shares thoughts or information. Generally, receivers are the consumers in the target market or audience who read, hear, and/or see the marketer’s message and decode it. Decoding is the process of transforming the sender’s message back into thought. 20) C Action usually occurs at the end, as a result of communications. The marketing communication process really begins with identifying the audience that will be the focus of the firm’s advertising and promotional efforts. A number of models have been developed to show the stages a consumer may pass through in moving from a state of not being aware of a company, product, or brand to actual purchase behavior. These models were developed for different reasons and have different stages. For example, the AIDA model was developed to represent the stages a salesperson must take a customer through in the personal selling process. This model depicts the buyer as going through attention, interest, desire, and action stages. 21) E Very small, well-defined groups are referred to as market niches, which occur at a group-level aggregation. 22) A Version 1

The hierarchy of effects model is the basis for the classic purchase funnel metaphor. 23) B A standard learning model consists of a learn→feel→do sequence. The standard learning hierarchy is likely when the consumer is highly involved in the purchase process and there is much differentiation among competing brands. High-involvement purchase decisions such as those for industrial products and services and consumer durables like personal computers, printers, cameras, appliances, and cars are areas where a standard learning hierarchy response process is likely. 24) C The consumer decision journey framework views the consumer decision-making process as a winding journey with multiple feedback loops rather than a linear, single uniform path to purchase based on active shopping and influenced by marketer dominated and controlled touch points such as media advertising. 25) E When central processing of an advertising message occurs, the consumer pays close attention to message content and scrutinizes the message arguments. A high level of cognitive response activity or processing occurs, and the ad’s ability to persuade the receiver depends primarily on the receiver’s evaluation of the quality of the arguments presented. 26) E Receivers who react favorably to the source generate favorable thoughts, or source bolsters. As you would expect, most advertisers attempt to hire spokespeople their target audience likes to carry this effect over to the message. 27) D Version 1

According to the elaboration likelihood model, the attitude formation or change process depends on the amount and nature of elaboration, or processing, of rel-evant information that occurs in response to a persuasive message. If the involvement level of consumers in the target audience is high, as with Annaliese, an ad or sales presentation should contain strong arguments that are difficult for the message recipient to refute or counterargue. 28) A Organizations send communications and messages in a variety of ways, such as through advertisements, brand names, logos and graphic systems, websites, press releases, package designs, promotions, and visual images. 29) E Communication has been variously defined as the passing of information, the exchange of ideas, or the process of establishing a commonness or oneness of thought between a sender and a receiver. 30) B The communication process is often very complex. Words, pictures, sounds, and colors may have different meanings to different audiences, and people’s perceptions and interpretations of them vary. Marketers must understand the meanings that words and symbols take on and how they influence consumers’ interpretation of products and messages. 31) B The sender, or source, of a communication is the person or organization that has information to share with another person or group of people. 32) A

Version 1

The communication process begins when a source selects words, symbols, pictures, and the like, to represent the message that will be delivered to the receiver(s). This process, known as encoding, involves putting thoughts, ideas, or information into a symbolic form. 33) A In this scenario, the Minnesota State Tourism Department is the source. The sender, or source, of a communication is the person or organization that has information to share with another person or group of people. The source may be an individual (say, a salesperson or hired spokesperson, such as a celebrity, who appears in a company’s advertisements) or a nonpersonal entity (such as the corporation or organization itself). 34) D In this scenario, Vinnie’s is considered the sender or the source of the ad. The sender, or source, of a communication is the person or organization that has information to share with another person or group of people. The source may be an individual (say, a salesperson or hired spokesperson, such as a celebrity, who appears in a company’s advertisements) or a nonpersonal entity (such as the corporation or organization itself). 35) C In this scenario, Lily is considered the sender or the source of the ad. The sender, or source, of a communication is the person or organization that has information to share with another person or group of people. The source may be an individual (say, a salesperson or hired spokesperson, such as a celebrity, who appears in a company’s advertisements) or a nonpersonal entity (such as the corporation or organization itself).

Version 1

36) A The communication process begins when the source selects words, symbols, pictures, and the like to represent a message that will be delivered to the receiver(s). This process, known as encoding, involves putting thoughts, ideas, or information into a symbolic form. The encoding process leads to development of a message that contains the information or meaning the source hopes to convey. 37) D The sender, or source, of a communication is the person or organization that has information to share with another person or group of people. The source may be an individual (say, a salesperson or hired spokesperson, such as a celebrity, who appears in a company’s advertisements) or a nonpersonal entity (such as the corporation or organization itself). 38) C The communication process begins when the source selects words, symbols, pictures, and the like to represent a message that will be delivered to the receiver(s). This process, known as encoding, involves putting thoughts, ideas, or information into a symbolic form. A sender’s goal is to encode a message in such a way that it will be understood by a receiver. 39) A The encoding process leads to development of a message that contains the information or meaning a source hopes to convey. 40) D Content refers to information and/or meaning contained in a message, while structure and design refer to the way the message is put together in order to deliver the information or intended meaning. Version 1

41) D Structure and design refer to the way a message is put together in order to deliver an information or intended meaning. 42) A In this example, Doctor’s Info is the channel used for communication. A channel is the method by which a communication travels from a source or sender to a receiver. 43) B A channel is the method by which a communication travels from a source or sender to a receiver. 44) A Nonpersonal channels of communication consist of two major types, print and broadcast. Print media include newspapers, magazines, direct mail, and billboards; broadcast media include radio and television. 45) A Nonpersonal channels of communication consist of two major types, print and broadcast. Print media include newspapers, magazines, direct mail, and billboards; broadcast media include radio and television. 46) D Personal channels involve direct communication between two or more persons and can occur through interpersonal contact (face-to-face) or via other methods such as e-mail or through social media. 47) A

Version 1

Personal channels of communication involve direct communication between two or more persons and can occur through interpersonal contact (face-to-face) or via other methods such as e-mail or through social media. Salespeople serve as personal channels of communication when they deliver their sales message to a buyer or potential customer. 48) D Members of one’s social networks such as friends, neighbors, associates, co-workers, or family members are also personal channels of communication. They often represent word-of-mouth (WOM) influence that involves informal communication among consumers about products and services and is a very powerful source of information. Buzz marketing is just one of the new names for what used to be known simply as word-of-mouth communication while terms such as consumergenerated marketing and viral marketing are also used to describe the process. 49) C This scenario illustrates nonpersonal communication. Nonpersonal channels of communication are those that carry a message without interpersonal contact between a sender and a receiver. Nonpersonal channels are generally referred to as the mass media or mass communications, since the message they contain is directed to more than one person and is often sent to many individuals at one time. 50) C The newspaper insert is an example of nonpersonal communication. Nonpersonal channels of communication are those that carry a message without interpersonal contact between a sender and a receiver. Nonpersonal channels are generally referred to as the mass media or mass communications, since the message they contain is directed to more than one person and is often sent to many individuals at one time. Version 1

51) D What makes buzz marketing different from traditional word-of-mouth communication is that it includes systematic and organized efforts to encourage people to speak favorably about a company, brand, organization, or issue and often to recommend it to others in their social network. 52) A Decoding is the process of transforming a sender’s message back into thought. 53) A Decoding is the process of transforming the sender’s message back into thought. This process is heavily influenced by the receiver’s frame of reference or field of experience, which refers to the experiences, perceptions, attitudes, and values he or she brings to the communication situation. 54) B Decoding is the process of transforming a sender’s message back into thought. This process is heavily influenced by a receiver’s frame of reference or field of experience, which refers to the experiences, perceptions, attitudes, and values he or she brings to the communication situation. 55) B Decoding is the process of transforming a sender’s message back into thought. This process is heavily influenced by a receiver’s frame of reference or field of experience, which refers to the experiences, perceptions, attitudes, and values he or she brings to the communication situation. 56) B Version 1

Decoding is the process of transforming a sender’s message back into thought. This process is heavily influenced by a receiver’s frame of reference or field of experience, which refers to the experiences, perceptions, attitudes, and values he or she brings to the communication situation. 57) C In this scenario, Janice has decoded the message improperly. Decoding is the process of transforming a sender’s message back into thought. For effective communication to occur, the message decoding process of the receiver must match the encoding of the sender. Simply put, this means the receiver understands and correctly interprets what the source is trying to communicate. 58) D Effective communication is more likely when there is some common ground between the two parties. While this notion of common ground between sender and receiver may sound basic, it often causes great difficulty in the advertising communications process. Marketing and advertising people often have very different fields of experience from the consumers who constitute the mass markets with whom they must communicate. 59) D In this scenario, one of the possible explanations for such a highly differential perception of the ads is due to the absence of common ground. Effective communication is more likely when there is some common ground between the two parties. Marketing and advertising people often have very different fields of experience from the consumers who constitute the mass markets with whom they must communicate. 60) E Version 1

Age is a factor that can lead to problems in establishing common ground between senders and receivers. As the population of the United States and many other countries grows older, concern has been expressed over the potential problems that might arise because of age differences between advertising agency personnel and older consumers. 61) C Throughout the communication process, a message is subject to extraneous factors that can distort or interfere with its reception. This unplanned distortion or interference is known as noise. 62) E In this scenario, Bradley is encountering disturbances known as noise. Throughout the communication process, a message is subject to extraneous factors that can distort or interfere with its reception. This unplanned distortion or interference is known as noise. 63) E In this scenario, Justin encounters noise. Throughout the communication process, a message is subject to extraneous factors that can distort or interfere with its reception. This unplanned distortion or interference is known as noise. 64) E A receiver’s set of reactions after seeing, hearing, or reading the message is known as a response. 65) A Marketers are very interested in feedback, that part of a receiver’s response that is communicated back to the sender. 66) C

Version 1

Feedback, which may take a variety of forms, closes the loop in a communications flow and lets a sender monitor how an intended message is being decoded and received. 67) A This scenario is an illustration of feedback. Marketers are very interested in feedback, that part of a receiver’s response that is communicated back to a sender. Feedback, which may take a variety of forms, closes the loop in the communications flow and lets a sender monitor how an intended message is being decoded and received. 68) C Feedback, which may take a variety of forms, closes the loop in the communications flow and lets a sender monitor how an intended message is being decoded and received. 69) A Feedback, which may take a variety of forms, closes the loop in the communications flow and lets a sender monitor how an intended message is being decoded and received. A salesperson has the advantage of receiving instant feedback through the customer’s reactions. 70) B Marketers are very interested in feedback, that part of a receiver’s response that is communicated back to the sender. Feedback, which may take a variety of forms, closes the loop in the communications flow and lets a sender monitor how an intended message is being decoded and received. Customer inquiries, store visits, coupon redemptions, and reply cards are all methods of obtaining feedback. 71) C

Version 1

The marketing communications process really begins with identifying the audience that will be the focus of a firm’s advertising and promotional efforts. The target audience may consist of individuals, groups, niche markets, market segments, or a general public or mass audience. Marketers approach each of these audiences differently. 72) B Very small, well-defined groups of customers are often referred to as market niches. They can usually be reached through personal-selling efforts or highly targeted media such as direct mail. 73) B Very small, well-defined groups of customers are often referred to as market niches. They can usually be reached through personal-selling efforts or highly targeted media such as direct mail. 74) C Very small, well-defined groups of customers are often referred to as market niches. They can usually be reached through personal-selling efforts or highly targeted media such as direct mail. The next level of audience aggregation is market segments, broader classes of buyers who have similar needs and can be reached with similar messages. As market segments get larger, marketers usually turn to broader-based media such as newspapers, magazines, and TV to reach them. 75) A The AIDA model was developed to represent the stages a salesperson must take a customer through in the personal-selling process. 76) A

Version 1

The AIDA model was developed to represent the stages a salesperson must take a customer through in the personal-selling process. This model depicts the buyer as passing successively through attention, interest, desire, and action. The salesperson must first get the customer’s attention and then arouse some interest in the company’s product or service. Strong levels of interest should create desire to own or use the product. 77) A According to the AIDA model, a customer expressing interest and desire is likely to be in the affective stage. 78) B The hierarchy of effects model shows the process by which advertising works; it assumes a consumer passes through a series of steps in sequential order from initial awareness of a product or service to actual purchase. A basic premise of this model is that advertising effects occur over a period of time. It was developed as a paradigm for setting and measuring advertising objectives. 79) D The hierarchy of effects model is the basis for the classic purchase funnel metaphor that is often used to depict the decision process consumers go through. The consumer starts at the top of the funnel with a number of brands in mind, methodically reduces that number as he or she becomes familiar with and evaluates these alternatives, and then emerges with the brand he or she chooses to purchase. 80) C

Version 1

The innovation adoption model evolved from work on the diffusion of innovations. This model represents the stages a consumer passes through in adopting a new product or service. The steps preceding adoption are awareness, interest, evaluation, and trial. 81) D The stages of the information processing model are similar to the hierarchy of effects sequence; attention and comprehension are similar to awareness and knowledge, and yielding is synonymous with liking. McGuire’s model includes a stage not found in the other models: retention, or a receiver’s ability to retain that portion of the comprehended information that he or she accepts as valid or relevant. 82) D The information processing model assumes the receiver in a persuasive communication situation like advertising is an information processor or problem solver. 83) C In this scenario, the innovation adoption model would be most relevant for communicating information about the new product to consumers. The innovation adoption model is especially important to companies who are using integrated marketing communications (IMC) tools to introduce new products to the market. These marketers recognize that there are certain types of consumers who are of particular interest to them because of their interest in new products and their ability to influence others. 84) B The AIDA model was developed to represent the stages a salesperson must take a customer through in the personal-selling process. 85) E Version 1

The information processing model of advertising effects, developed by William McGuire, includes a stage not found in the other models: retention, or the receiver’s ability to retain that portion of the comprehended information that he or she accepts as valid or relevant. This stage is important since most promotional campaigns are designed not to motivate consumers to take immediate action but rather to provide information they will use later when making a purchase decision. 86) A In this scenario, it can be concluded that consumers are aware of Velocity’s products. The cognitive stage of the response process represents what a receiver knows or perceives about a particular product or brand. This stage includes awareness that the brand exists and knowledge, information, or comprehension about its attributes, characteristics, or benefits. 87) A All the four models describing the consumer response process consist of movement through a sequence of three basic stages—cognitive, affective, and behavioral. The cognitive stage represents what a receiver knows or perceives about a particular product or brand. This stage includes awareness that the brand exists and knowledge, information, or comprehension about its attributes, characteristics, or benefits. 88) C All the four models describing the consumer response process consist of movement through a sequence of three basic stages—cognitive, affective, and behavioral. The conative or behavioral stage refers to a consumer’s action toward the brand: trial, purchase, adoption, or rejection. 89) B Version 1

The affective stage of the response process refers to a receiver’s feelings or affect level (like or dislike) for a particular brand. This stage also includes stronger levels of affect such as desire, preference, or conviction. 90) A The standard learning model consists of a learn → feel → do sequence. In this hierarchy, a consumer is viewed as an active participant in a communication process who gathers information through active learning. 91) A The standard learning model consists of a learn → feel → do sequence. Information and knowledge acquired or learned about the various brands are the basis for developing affect, or feelings, that guide what a consumer will do. 92) A Michael Ray suggests the standard learning hierarchy is likely when a consumer is highly involved in the purchase process and there is much differentiation among competing brands. 93) B The dissonance/attribution model involves selective learning, whereby a consumer seeks information that supports a purchase choice made and avoids information that would raise doubts about the decision. 94) B

Version 1

In this scenario, the dissonance/attribution model is applicable. The dissonance/attribution model, or do → feel → learn, occurs in situations where consumers must choose between two alternatives that are similar in quality but are complex and may have hidden or unknown attributes. Dissonance reduction involves selective learning, whereby a consumer seeks information that supports a choice made and avoids information that would raise doubts about the decision. 95) D The dissonance/attribution model, or do → feel → learn, occurs in situations where consumers must choose between two alternatives that are similar in quality but are complex and may have hidden or unknown attributes. 96) C This dissonance/attribution model, or do → feel → learn, occurs in situations where consumers must choose between two alternatives that are similar in quality but are complex and may have hidden or unknown attributes. According to this model, marketers need to recognize that in some situations, attitudes develop after purchase, as does learning from the mass media. 97) D The low-involvement hierarchy tends to occur when involvement in a purchase decision is low, there are minimal differences among brand alternatives, and mass-media (especially broadcast) advertising is important. 98) A

Version 1

The low-involvement hierarchy tends to occur when involvement in a purchase decision is low, there are minimal differences among brand alternatives, and mass-media (especially broadcast) advertising is important. 99) C The hierarchy of effects model shows the process by which advertising works; it assumes a consumer passes through a series of steps in sequential order from initial awareness of a product or service to actual purchase. 100) B In the low-involvement hierarchy, a receiver is viewed as passing from cognition to behavior to attitude change. This learn → do → feel sequence is thought to characterize situations of low consumer involvement in a purchase process. 101) B In the low-involvement hierarchy, a consumer engages in passive learning and random information catching rather than active information seeking. 102) B In this scenario, Pluto Inc. assumes that customers use a lowinvolvement hierarchy while purchasing its products. In the lowinvolvement hierarchy, a consumer engages in passive learning and random information catching rather than active information seeking. An advertiser must recognize that a passive, uninterested consumer may focus more on nonmessage elements such as music, characters, symbols, and slogans or jingles than actual message content. 103) A

Version 1

Low-involvement advertising appeals prevail in much of the advertising we see for frequently purchased consumer products. Another popular creative strategy used by advertisers of low-involvement products is what advertising analyst Harry McMahan calls VIP, or visual image personality. 104) B In the low-involvement hierarchy, a consumer engages in passive learning and random information catching rather than active information seeking. The advertiser must recognize that a passive, uninterested consumer may focus more on nonmessage elements such as music, characters, symbols, and slogans or jingles than actual message content. Visual image personality is a popular low-involvement strategy. 105) A In this scenario, Snippy is a visual image personality. A popular creative strategy used by advertisers of low-involvement products is what advertising analyst Harry McMahan calls VIP, or visual image personality. Advertisers often use symbols like the Pillsbury Doughboy, Morris the Cat, Tony the Tiger, and Mr. Clean to develop visual images that will lead consumers to identify and retain ads. 106) B A popular creative strategy used by advertisers of low-involvement products is what advertising analyst Harry McMahan calls VIP, or visual image personality. Advertisers often use symbols like the Pillsbury Doughboy, Morris the Cat, Tony the Tiger, and Mr. Clean to develop visual images that will lead consumers to identify and retain ads. 107) C

Version 1

From a promotional planning perspective, it is important that marketers examine the communication situation for their product or service and determine which type of response process is most likely to occur. 108) B According to the findings of Advertising Research Foundation (ARF), when consumers are in a “passive” shopping mode, the information and advice they need to make a purchase comes to them unsolicited, such as a comment on a social media site; an ad seen on a TV show, in a magazine, or on a website; or by observing someone using a product or service. 109) E The social consumer decision journey framework recognizes that consumers connect with large numbers of brands through digital and social media channels that are often beyond the marketers’ or retailers’ control, evaluate a shifting array of them, and often expand the pool before narrowing it. 110) C Consumers in an “active” shopping mode purposefully seek information and/or assistance so they can make informed purchase decisions with confidence. 111) A One of the most widely used methods for examining consumers’ cognitive processing of advertising messages is assessment of their cognitive responses, the thoughts that occur to them while reading, viewing, and/or hearing a communication. 112) A

Version 1

In this scenario, Jessica’s cognitive responses are being recorded. One of the most widely used methods for examining consumers’ cognitive processing of advertising messages is assessment of their cognitive responses, the thoughts that occur to them while reading, viewing, and/or hearing a communication. 113) A In this scenario, Jim is expressing a counterargument. Counterarguments are thoughts a recipient has that are opposed to the position taken in an advertising message. 114) A In this scenario, Tia is expressing a counterargument. Counterarguments are thoughts a recipient has that are opposed to the position taken in an advertising message. 115) D In this scenario, Erika’s response is an example of a counterargument. Counterarguments are thoughts a recipient has that are opposed to the position taken in an advertising message. 116) C Bianca is expressing a support argument. Support arguments are the thoughts of a consumer that affirm the claims made in an advertising message. 117) C Kevin’s response is an example of a support argument. Support arguments are the thoughts of a consumer that affirm the claims made in an advertising message. 118) D

Version 1

Jared’s thought is an illustration of a support argument. Support arguments are the thoughts of a consumer that affirm the claims made in an advertising message. 119) B One of the most important types of cognitive responses is source derogations, or negative thoughts about a spokesperson or organization making a claim. Such thoughts generally lead to a reduction in message acceptance. 120) A One of the most important types of cognitive responses is source derogations, or negative thoughts about a spokesperson or organization making a claim. 121) D In this scenario, Katy is expressing source derogation. One of the most important types of cognitive responses is source derogations, or negative thoughts about a spokesperson or organization making a claim. 122) A Receivers who react favorably to the source generate favorable thoughts, or source bolsters. Most advertisers attempt to hire spokespeople their target audience likes so as to carry this effect over to the message. 123) C This scenario is an illustration of a source bolster. Receivers who react favorably to a source generate favorable thoughts, or source bolsters. Most advertisers attempt to hire spokespeople their target audience likes so as to carry this effect over to the message. 124) B

Version 1

Receivers who react favorably to a source generate favorable thoughts, or source bolsters. Most advertisers attempt to hire spokespeople their target audience likes so as to carry this effect over to the message. 125) C Ad execution-related thoughts include reactions to ad execution factors such as the creativity of the ad, the quality of the visual effects, colors, and voice tones. They can be either favorable or unfavorable, and are important because of their effect on attitudes toward an advertisement as well as a brand. 126) C Advertisers are interested in consumers’ reactions to an ad because they know that affective reactions are an important determinant of advertising effectiveness, since these reactions may be transferred to a brand itself or directly influence purchase intentions. 127) A Differences in the ways consumers process and respond to persuasive messages are addressed in the elaboration likelihood model (ELM) of persuasion. 128) D The elaboration likelihood model (ELM) was devised by Richard Petty and John Cacioppo to explain the process by which persuasive communications (such as ads) lead to persuasion by influencing attitudes. 129) B

Version 1

The elaboration likelihood model (ELM) shows that elaboration likelihood is a function of two elements, motivation and ability to process the message. Motivation to process a message depends on such factors as involvement, personal relevance, and individuals’ needs and arousal levels. Ability depends on an individual’s knowledge, intellectual capacity, and opportunity to process a message. 130) B In this scenario, Jake is engaging in central processing. When central processing of an advertising message occurs, a consumer pays close attention to message content and scrutinizes the message arguments. 131) C Under the central route to persuasion, a receiver is viewed as a very active, involved participant in the communication process whose ability and motivation to attend, comprehend, and evaluate messages are high. 132) B Under the peripheral route to persuasion, a receiver is viewed as lacking the motivation or ability to process information and is not likely to engage in detailed cognitive processing. 133) A Under the peripheral route to persuasion, a receiver is viewed as lacking the motivation or ability to process information and is not likely to engage in detailed cognitive processing. Favorable attitudes may be formed if the endorser in an ad is viewed as an expert or is attractive and/or likable or if a consumer likes certain executional aspects of an ad such as the way it is made, the music, or the imagery. 134) C

Version 1

Peripheral cues can lead to rejection of a message. For example, ads that advocate extreme positions, use endorsers who are not well liked or have credibility problems, or are not executed well (such as low-budget ads for local retailers) may be rejected without any consideration of their information or message arguments. 135) B An interesting test of the elaboration likelihood model (ELM) showed that the effectiveness of a celebrity endorser in an ad depends on a receiver’s involvement level. When involvement was low, a celebrity endorser had a significant effect on attitudes. When the receiver’s involvement was high, however, the use of a celebrity had no effect on brand attitudes; the quality of the arguments used in the ad was more important. 136) C In this scenario, Mellow Inc. should feature popular celebrity endorsers such as movie stars and sports personalities in their ads. Under the peripheral route to persuasion, favorable attitudes may be formed if the endorser in an ad is viewed as an expert or is attractive and/or likable or if a consumer likes certain executional aspects of the ad such as the way it is made, the music, or the imagery.

Version 1

CHAPTER 6 TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) When used as an indirect source, a model/celebrity delivers the main message of an advertisement. ⊚ ⊚

true false

There are two important dimensions to credibility: expertise and trustworthiness. ⊚ ⊚

true false

3) Creating an image or culture around the CEO protects the corporate brand image from being affected by controversy. ⊚ ⊚

true false

4) Some research suggests the use of a company president or CEO can improve attitudes and increase the likelihood that consumers will inquire about a company's product or service. ⊚ ⊚

true false

5) In terms of source attractiveness, unlike internalization, identification does not usually integrate information from an attractive source into the receiver's belief system. ⊚ ⊚

true false

6) Consumers who are particularly knowledgeable about a product or service or have strongly established attitudes are more influenced by a celebrity than those with little knowledge or neutral attitudes.

Version 1

⊚ ⊚

true false

7) High levels of fear in an advertisement can produce inhibiting effects; the receiver may emotionally block the message by tuning it out. ⊚ ⊚

true false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 8) Advertising appeals that imply some type of physical or emotional danger and try to rouse consumers to take steps to remove the threat are known as ________ appeals. A) comparative B) refutational C) humor D) fear E) conditional

Independent variables are which part of the communication process? A) uncontrolled B) controlled C) audience comprehension D) expensive

10) Promotional planners need to know how decisions about each independent variable influence the stages of the response hierarchy so that they don't

Version 1

A) develop unknown dependent variables. B) stay within the predetermined budget. C) enhance one stage at the expense of another. D) reach the right target audience.

11)

Source credibility leads to A) overexposure. B) trustworthiness. C) overshadowing. D) similarity.

12)

Source attractiveness leads to persuasion through a process of A) overexposure. B) identification. C) overshadowing. D) trustworthiness.

13) In 2009, the Federal Trade Commission passed a set of guidelines requiring online endorsers and bloggers to disclose A) any material connection they might have to a company. B) the compensation received for the endorsement. C) any endorsements of competitive products. D) their annual income.

14) Over time, a low-credibility source may become as effective as a high-credibility source due to

Version 1

A) overexposure. B) the sleeper effect. C) identification. D) trustworthiness.

15)

High- and low-credibility sources are equally effective when they are A) arguing for a position opposing their own best interest. B) promoting a low-value product. C) both celebrities. D) arguing for a position in their own best interest.

16) Marketers recognize that people are more likely to be influenced by a message when it comes from someone who is A) similar to them. B) highly attractive. C) come from another country. D) extremely successful.

17) What is it called when consumers focus their attention on the celebrity and fail to notice or recall the brand or advertising message? A) overexposure B) vampire effect C) identification D) similarity

18) When a celebrity endorses many products, consumer skepticism of those endorsements increases. This phenomenon is caused by

Version 1

A) the vampire effect. B) overexposure. C) identification. D) similarity.

19) When an advertiser assumes a recency effect, the strongest arguments appear at which point in the message? A) beginning B) middle C) end D) anywhere

20) Many press releases use the "pyramid style" of writing. In this style, where is the most important information presented? A) beginning B) middle C) end

21) When immediate impact is not the objective and repeated exposure will give the audience members opportunities to draw their own conclusions, which type of message is ideal? A) pyramid B) closed-ended C) recency effect D) open-ended

22) Advertisers who are concerned about the negative effects of acknowledging a weakness in their brand are likely to choose which type of message?

Version 1

A) open-ended B) closed-ended C) one-sided D) two-sided

23) use

Marketers that want to differentiate their brand in a competitive marketplace will often

A) one-sided messaging. B) comparative advertising. C) fear advertising. D) humor advertising.

24)

Advertisers will often pair what with copy to enhance the message receptivity in an ad? A) verbal communication B) imagery C) one-sided messaging D) two-sided messaging E) comparative messaging

25) Which term applies to the situation where consumers no longer pay attention to a commercial after multiple exposures? A) overexposure B) wearout C) vampire effect D) adaptability

26)

Which of the following provides externally paced information?

Version 1

A) newspaper B) magazine C) news broadcast D) Internet

27)

Which term refers to the amount of advertising in a medium? A) overexposure B) wearout C) clutter D) saturation

28) The ________ is a promotional planning tool that marketers can use to consider how each controllable element of the communications model interacts with the consumer's response process. A) dissonance/attribution matrix B) persuasion matrix C) AIDA model D) response model E) elaboration likelihood model

29) According to the persuasion matrix, which of the following is a dependent variable of the communications model? A) source B) message C) comprehension D) channel E) type of message appeal

Version 1

30) In the persuasion matrix, the independent variable that takes into account the passage of information from one person to another is the A) source. B) message. C) behavior. D) retention. E) destination.

31) According to the persuasion matrix, which of the following is an independent variable in the consumer's response process? A) attention B) comprehension C) destination D) yielding E) retention

32) A television ad for VenusCell Inc. shows a famous celebrity describing the features of the latest smartphone launched by the company. The celebrity talks about the features of the new smartphone, such as 4G technology, AMOLED touchscreen, SVGA, tri-band, and WAP. According to the persuasion matrix, it is likely that a less-educated audience will face problems associated with ________ due to the use of jargon in the ad. A) attention B) yielding C) presentation D) comprehension E) retention

33) An ad for Kool Kids, a kidswear company, is featured in the August issue of a teen magazine, Teen 360. The ad shows children between the ages of 3 and 12 on a ramp. In terms of the response stages of the persuasion matrix, the ad is ineffective in reaching the intended target audience, the parents, because Version 1

A) its portrayal is offensive. B) it contains jargons that is incomprehensible to the target audience. C) the media channel used is inappropriate. D) of the extensive clutter. E) it is not endorsed by a celebrity parent.

34) CL Inc., a cellphone company, features Leah Carter, a popular movie actor, in all of its print and broadcast advertising. The reason behind choosing the actor is that she is more likely to attract potential customers. The company faces heavy competition and the marketing team concluded that using a popular spokesperson will help break through the advertising clutter. Which of the following stages of the persuasion matrix is CL Inc. trying to influence? A) reception B) channel C) attention D) presentation E) behavior

35) When advertisers attempt to answer the question, "Who will be effective in getting consumers’ attention?" they are addressing the ________ component of the persuasion matrix. A) channel/yielding B) source/attention C) receiver/comprehension D) channel/presentation E) message/yielding

36) A spokesperson who delivers an advertising message and endorses a product or service is known as

Version 1

A) a direct source. B) an indirect source. C) a message shaper. D) a source mirage. E) a source echo.

37) A(n) ________ doesn't actually deliver a message but draws attention to and enhances the appearance of an ad. A) direct source B) indirect source C) message shaper D) source mirage E) source echo

38) Marketers typically select spokespeople whose traits will maximize their message influence. According to Herbert Kelman, the three categories of source attributes that should be considered during the selection process are A) power, image, and knowledge. B) credibility, attractiveness, and power. C) knowledge, fee, and differentiability. D) consistency, credibility, and continuity. E) credibility, reputation, and individuality.

39) ________ is the extent to which a recipient sees a source as having relevant knowledge, skill, or experience and trusts the source to give unbiased, objective information.

Version 1

A) Source attractiveness B) Source popularity C) Source credibility D) Source power E) Source identification

40) Marketers who try to select spokespeople whose traits will maximize their message influence are concerned about their credibility. The two important dimensions associated with credibility are A) consistency and image. B) image and trustworthiness. C) differentiability and expertise. D) expertise and trustworthiness. E) image and expertise.

41) ________ is the process in which a receiver adopts the opinion of a credible communicator because he or she believes information from this source is accurate. A) Identification B) Compliance C) Internalization D) Conformity E) Yielding

42) Expertise and trustworthiness are very important when focusing on source ________, one of the categories of source attributes developed by Herbert Kelman.

Version 1

A) power B) attractiveness C) credibility D) identification E) image

43) A fatal accident at the production facility of GA Inc., a mobile manufacturer, has killed 58 factory workers. Customers now perceive the company negatively. In an attempt to revive its reputation, the company hired Adam Murphy, a popular golfer, as its spokesperson. Murphy is a distinguished personality and is well known for his philanthropic activities. Murphy, being a credible source, can help GA restore its tainted reputation by A) acting as a positive source derogation. B) inhibiting counterarguments about the company and its products. C) eliminating advertising clutter. D) attempting to change consumer buying patterns. E) stimulating consumers to purchase the company's products.

44) A study conducted by Roobina Ohanian about consumers' perceptions of celebrity endorsers found that the characteristic that influenced consumers' intentions to purchase a product endorsed by a celebrity is his or her perceived A) expertise. B) attractiveness. C) trustworthiness. D) similarity. E) likability.

45) A marketer of super computers will recruit individuals with backgrounds in computer science and engineering to work as salespeople in order to ensure its sales force has high levels of

Version 1

A) expertise. B) trustworthiness. C) attractiveness. D) attention. E) yielding.

46) Country music star Miranda Lambert delivered a message that endorsed milk when she appeared in an ad that is part of "The Breakfast Project" campaign sponsored by the Milk Processor Education Program. In this ad, she was acting as a(n) ________ source. A) corporate B) overexposed C) internal D) indirect E) direct

47)

One way a supermarket can make its ads seem more trustworthy is by A) showing customers talking about the supermarket on hidden cameras. B) increasing its advertising clutter in its print ads. C) using cartoon characters in humorous shopping experiences. D) using loud music or an unsettling color combination. E) advertising repetitively in short intervals.

48) The owner of Elan Style Inc., a global fashion house, features in all of his stores' commercials. He explains how his company differs from other chain stores and gives advice on buying fashion clothing and accessories. Since he is recognized as a professional style expert, his presence in his company's ads can enhance the ads' source

Version 1

A) credibility. B) attractiveness. C) power. D) differentiability. E) likability.

49) Which of the following statements is true about the use of corporate leaders as advertising spokespersons? A) Many companies believe the use of a company president or CEO is an ineffective way of expressing the company's commitment to quality and customer service. B) Only Fortune 500 companies use corporate leaders as spokespersons. C) If a firm's image is too closely tied to its leader, it will face problems if and when the leader leaves the company. D) Corporate spokespersons are ineffective for promoting consumer products. E) Corporate spokespersons improve the message source image but have no effect on its trustworthiness.

50)

Which of the following statements is true about source credibility?

A) The influence of a knowledgeable source will be increased if audience members think he or she has underlying personal motives for advocating a position. B) Enhanced counterarguing should result in greater message acceptance and persuasion. C) The persuasiveness of a low-credibility source may decline over time due to the sleeper effect phenomenon. D) A very credible source is more effective when message recipients are not in favor of the position advocated in a message. E) Advertisers can increase the perception that their sources are trustworthy by using hidden cameras to show that a consumer is a paid spokesperson.

51) The notion that with the passage of time, a low-credibility source may be just as effective as a high-credibility source is known as the

Version 1

A) sleeper effect. B) time/place consequence. C) open source paradox. D) decay effect. E) mirage effect.

52)

According to the sleeper effect phenomenon,

A) the impact of a persuasive message diminishes over time. B) people subconsciously retain advertising messages that they see moments before sleeping and rehearse them in their sleep. C) the impact of a persuasive message from a low-credibility source can increase over time, since the message content becomes disassociated from the source. D) with the passage of time, the impact of a persuasive message from a low-credibility source can decrease, since people forget the content of the message. E) people instinctively disassociate a low-credibility source from the message when they are paying less than full attention to the message.

53)

The source characteristic of attractiveness encompasses A) power, expertise, and aesthetics. B) similarity, likability, and familiarity. C) comfort, individuality, and beauty. D) beauty, familiarity, and differentiability. E) expertise, familiarity, and comfort.

54) ________ is defined as an attraction for a source based on a resemblance between the source and receiver of a message.

Version 1

A) Likability B) Familiarity C) Similarity D) Expertise E) Power

55) ________ is defined as an affection for a source as a result of the source's physical appearance, behavior, or other physical characteristics. A) Expertise B) Power C) Compliance D) Familiarity E) Likability

56) Source attractiveness leads to persuasion through a process of ________, whereby a receiver is motivated to seek some type of relationship with the source and thus adopts similar beliefs, attitudes, preferences, or behavior. A) internalization B) identification C) compliance D) repositioning E) comprehension

57) Which statement correctly expresses a difference between identification and internalization?

Version 1

A) Unlike identification, internalization of a message does not occur when the source is a celebrity. B) Unlike internalization, identification is synonymous with receiver comprehension. C) Unlike identification, internalization is often considered to be a negative source characteristic. D) Unlike internalization, identification does not usually integrate information from an attractive source into the receiver's belief system. E) Unlike identification, internalization does not lead to counterarguments and source derogations by the receiver.

58)

Marketers can try to capitalize on source similarity by hiring

A) beautiful models to appear in television ads. B) well-known athletes to endorse sporting goods in commercials. C) salespeople who have characteristics that match those of their customers. D) individuals with liberal arts backgrounds to work as sales representatives for technical products. E) actors to portray themselves as ordinary consumers.

59) A commercial for a floor cleaner shows a young mother cleaning her kitchen floor after feeding her toddler. The commercial is considered to be effective because it utilizes high source similarity. This is an example of a ________ commercial. A) comparative B) reputational C) slice-of-life D) spokesperson-oriented E) power-based

60) Which of the following source characteristics is used by a slice-of-life commercial that shows an average head of household facing difficulty in filing his federal income tax?

Version 1

A) power B) compliance C) expertise D) similarity E) attractiveness

61)

Which of the following statements is true about celebrity endorsements?

A) Consumers who are very knowledgeable about a product or service tend to be most persuaded by celebrity endorsers. B) When a celebrity endorses several products simultaneously, it leads to enhanced popularity of the celebrity and also results in increased sales of all the products the celebrity endorses. C) Advertisers should select a celebrity spokesperson who will attract attention and enhance the sales message, yet not overshadow the company's brand. D) Typically, the use of celebrity endorsers is highest in news and business publications. E) Marketers do not have to worry about the personal image of celebrities while choosing one to endorse a product or a service.

62) Which of the following source characteristics is likely to suffer when a celebrity endorses too many products and is seen too often by consumers? A) expertise B) trustworthiness C) physical attractiveness D) compliance E) internalization

63)

Advertisers can protect themselves against overexposure

Version 1

A) by hiring more than one celebrity for endorsing a particular brand. B) with an exclusivity clause limiting the number of products a celebrity can endorse. C) by attempting to match the characteristics of the target market with the personality of a celebrity. D) by creating celebrity advertisements that generate counterarguments. E) by hiring common consumers instead of celebrities to feature in their commercials.

64) Cirrus Shoes received negative publicity when the company's brand ambassador was convicted of sexual assault. The company was forced to rescind their association with entertainer Adrian Richardson due to the negative impact on its image. This scenario is an example of A) overexposure. B) risk to the advertiser. C) celebrity popularity. D) overshadowing the product. E) consumer-celebrity merging.

65) According to the meaning transfer model of the celebrity endorsement process, celebrities draw their meanings from A) their association with the companies whose products they endorse. B) their popularity among consumers and their perceived level of attractiveness. C) the image the media portrays about them through various channels such as television, magazines, and the Internet. D) the roles they assume in their careers and the objects, persons, and contexts these roles bring them in contact with. E) their family and cultural background that influence their decisions about the types of products they want to endorse.

66) According to the meaning transfer model developed by Grant McCracken, which of the following statements is true of celebrity endorsers?

Version 1

A) Credibility and attractiveness can effectively explain how and why celebrity endorsements work. B) Celebrity endorsers bring their meanings and images to an ad and transfer them to the product they are endorsing. C) The image that celebrities project to consumers is more important than their ability to attract attention. D) Once the first two stages of the model have been implemented, the final stage is simple and easy to achieve. E) Celebrities' overexposure in advertisements helps marketers achieve the desired recognition.

67) Which of the following is the best example of a celebrity endorser enhancing consumers' perceptions of a product's performance capabilities? A) a professional golfer endorsing electronics home appliances B) a boxer endorsing an automobile repair service C) an actress endorsing a cell phone service D) a model endorsing a brand of cosmetics E) a race car driver endorsing lawn mowers

68)

In the final stage of the meaning transfer model developed by Grant McCracken,

A) celebrities draw powerful meanings from the roles they assume in their careers. B) celebrities bring their meanings and images into ads for the products they are endorsing. C) the meanings that celebrities have given to products are transferred to consumers. D) promotional campaigns are organized in the presence of the media. E) the meanings created by celebrities are developed into advertisements.

69) An endorser or a performer’s ________ score indicates the percentage of people who have heard of that person.

Version 1

A) familiarity B) attractiveness C) similarity D) one of my favorites E) Q rating

70)

Which of the following is true of a Q-score?

A) It explains the popularity of a prime-time television show. B) It describes the size of television viewing audiences that prefer to buy a product based solely on the celebrity who endorsed it. C) It answers the question, "How appealing is a celebrity endorser among people who do know him or her?" D) It answers the question, "What percentage of people see celebrities as trendsetters?" E) It identifies an advertisement's emotional impact on the target audience.

71) A television commercial for Elate perfume features a woman walking along a beach. The ad attempts to connect the woman's physical beauty to the attractiveness of the perfume. In the ad, the model serves as A) a source echo. B) a message shaper. C) a direct source. D) a passive model. E) an active communicator.

72) A marketer would find a physically attractive model to be most effective in an ad for which of the following products?

Version 1

A) cattle feed B) bricks C) fertilizer D) cookies E) lipstick

73)

Which of the following statements is true of source power?

A) Power as a source characteristic is very easy to apply in a nonpersonal influence situation such as advertising. B) The use of source power is not effective in situations involving personal communication and influence. C) The source must be perceived as being able to administer only positive sanctions to the receiver. D) A source has power when he or she can actually administer rewards and punishments to a receiver. E) The receiver's estimate of the source's ability to observe conformity is not important.

74) When a source is able to administer rewards and punishments to a receiver, the influence occurs through a process known as A) compliance. B) identification. C) internalization. D) retention. E) perceived concern.

75) Mettle Inc., an automaker, hires a popular boxer, Darrell Hilton, as the spokesperson for its "Save the Globe" campaign, an initiative for preserving the environment. If viewers of the commercial perceive Darrell as being able to mete out punishment when citizens don't comply with environmental policies, then as a message source, Darrell is said to have

Version 1

A) perceived control. B) control persuasion. C) perceived integration. D) expertise. E) perceived concern.

76) Mars Inc., an automaker, hires a popular celebrity, Emma Hunt, as the spokesperson for its "Keep the World Green" campaign, an initiative for preserving trees. The viewers of the commercial perceive Emma as being sincerely interested in citizen initiatives to preserve trees. Emma as a message source is said to have A) perceived control. B) control persuasion. C) perceived scrutiny. D) expertise. E) perceived concern.

77)

Which of the following statements is true of persuasion induced through compliance? A) It is difficult to administer in a personal selling situation. B) It is usually superficial. C) It is easy to apply in nonpersonal influence situations. D) It usually occurs as a result of a celebrity's perceived concern. E) It usually results in a receiver rejecting the source's position.

78) ________ is the process by which a source perceived by a receiver as having high power can influence the receiver's behavior.

Version 1

A) Internalization B) Identification C) Compliance D) Retention E) Scrutiny

79) A(n) ________ is a communication variable that includes order of presentation, conclusion drawing, and refutation. A) channel B) source C) message structure D) receiver E) emotional appeal

80) Presenting the strongest arguments at the beginning of an advertising message assumes that a ________ is operating. A) primacy effect B) recency effect C) sleeper effect D) credibility effect E) compliance hierarchy

81) A magazine advertisement reads, "Is it just forgetfulness or is it Alzheimer's disease?" and then lists the warning signs of Alzheimer's, stating its strongest point first to gain reader attention on a subject that most people would rather not consider. The rest of the ad describes a new prescription medicine to treat mild and moderate cases of Alzheimer's. The advertisement uses a ________ to arouse interest.

Version 1

A) primacy effect B) recency effect C) sleeper effect D) credibility effect E) compliance hierarchy

82) An advertisement that places the strongest points at the end of a message assumes a ________, whereby the last arguments presented are the most persuasive. A) recency effect B) primacy effect C) sleeper effect D) credibility effect E) compliance hierarchy

83) An advertisement for Flora Gardening Supplies begins discussing how beautiful and enjoyable gardens can be. It ends with the directive to visit the company website and guarantees that the online experience will convince consumers to buy the company's products. By placing the strongest point at the end of the ad, Flora is hoping to benefit from the A) primacy effect. B) recency effect. C) sleeper effect. D) credibility effect. E) compliance hierarchy.

84) When Cassie presented her sales pitch to a skeptical audience that was not interested in what she was selling, she opened with strong arguments to arouse interest in her message. She is applying the

Version 1

A) primacy effect. B) recency effect. C) sleeper effect. D) credibility effect. E) compliance hierarchy.

85) A public awareness advertisement that aims to convince people to give up smoking features three teens bungee jumping off a bridge. When they reach the ground, each grabs a soda can, opens it, and takes a sip. As the third person takes a sip, the can explodes and kills him. The final screen reads, "No other product except tobacco kills every third consumer." By placing the strongest point in the ad at the end, the ad's source is hoping its message benefits from the A) primacy effect. B) recency effect. C) sleeper effect. D) credibility effect. E) compliance hierarchy.

86) The beginning of an ad in a women's magazine reads, "Charlotte BB cream has been approved by dermatologists. It is good for sensitive skin and has no side effects." The rest of the ad copy explains the benefits of the BB cream and features user testimonials. By placing its most important message in the heading, the ad's source is hoping its message benefits from the A) primacy effect. B) recency effect. C) sleeper effect. D) credibility effect. E) compliance hierarchy.

87) If the target audience is opposed to a communicator's position, presenting strong points first can

Version 1

A) increase the extent of disapproval. B) increase criticism of the message. C) reduce the level of counterargument. D) reduce the level of interest in the message. E) encourage recipients to draw their own conclusions.

88) A marketer should present the strong points at the beginning of an advertising message when A) the target audience can connect well with the marketer's position. B) the target audience is not interested in the topic. C) the target audience is not biased toward certain brands. D) the target audience has used the product and has a favorable image of the product. E) immediate action is an objective.

89)

Marketers should draw definite conclusions in their advertising messages when A) the audience is highly educated. B) the product requires emotional involvement. C) immediate action is an objective. D) high audience involvement is required. E) the message is simple and likely to be easily understood by the audience.

90) An ad headline for Fantasia ice cream in a local newspaper reads, "How can you relive your childhood this summer?" The only other information in the ad is a list of locations of Fantasia ice cream parlors in the city. This ad is A) an example of a rational appeal. B) designed to let the target audience draw their own conclusions. C) an example of an appeal based on refutation. D) designed to express a two-sided message. E) effective irrespective of the context of the advertising medium.

Version 1

91) A marketer may want to use a message that draws an explicit conclusion for a target audience that is A) highly involved with the topic. B) highly educated. C) low in complexity. D) exposed to the message frequently. E) less educated.

92) Which of the following types of message structure should a marketer use if immediate behavior is not an objective and if repeated exposure will give the target audience an opportunity to draw its own conclusions? A) an open-ended message B) a close-ended message C) a primacy message D) a refutational appeal E) a fear appeal

93)

________ are messages that mention only positive product attributes or benefits. A) One-sided messages B) Close-ended messages C) Refutational appeals D) Conclusive messages E) Slice-of-life messages

94) In its ads, Xenon, an antibacterial mouthwash, claims to effectively kill germs but admits to possessing a bittersweet taste. This is an example of a

Version 1

A) one-sided message. B) two-sided message. C) confrontational appeal. D) conclusive message. E) slice-of-life commercial.

95) When SeaWorld Entertainment ran an integrated campaign to defend itself against criticism by the animal activist group PETA, it was using ________ messages. A) sleeper B) indirect C) confrontational D) refutational E) slice-of-life

96) When a target audience already holds a favorable opinion of a topic, ________ is most effective. A) a one-sided message B) a two-sided message C) a nonverbal appeal D) an open-ended message E) a fear appeal

97) While designing a commercial for Bliss Burgers, the marketing department proposed using a two-sided message structure. However, the company management was apprehensive and insisted on using a one-sided advertising message. Which of the following statements best describes the reason for the management's apprehension?

Version 1

A) The management was concerned about the impact of a two-sided message on source credibility. B) The management was concerned over presenting only the negative attributes of Bliss Burgers. C) The management was concerned over the negative effects of acknowledging a weakness in its brand. D) Two-sided messages were proven ineffective by a number of different advertising research studies. E) Two-sided messages cause consumers to expect more than any product could offer.

98) A(n) ________ is a special type of two-sided message in which a communicator presents both sides of an issue and then disproves an opposing viewpoint. A) contradictory appeal B) nonverbal message C) emotional appeal D) refutational appeal E) slice-of-life appeal

99) A radio commercial begins with the following line: "Our competitors think we can't sell furniture for so little money, but we want our customers to know that we work hard to bring you value for your dollar, and our prices are for real." The furniture store is using a(n) ________ appeal. A) one-sided B) functional C) emotional D) refutational E) slice-of-life

100) Wafers Lounge Inc., a manufacturer of packaged foods, specializes in potato-based snacks and features ads that acknowledge the perception that potatoes are fattening. However, they subsequently present information that counters this belief. These ads are an example of

Version 1

A) conclusion drawing. B) a fear appeal. C) a refutational appeal. D) a humorous appeal. E) an affective conclusion.

101)

Which of the following statements is true of refutational appeals? A) They are not as effective as one-sided messages. B) They do not feature negative connotations of the products advertised. C) They tend to "inoculate" the target audience against a competitor's counterclaims. D) They are used typically when the target audience is less educated. E) They are a special type of one-sided message.

102) An advertisement for Pete's Peanut Butter centers on the perception that peanut butter has a high fat content. It states that Pete's Peanut Butter is a rich source of protein and fiber and also has a great taste. The ad closes by stating that Pete's Peanut Butter contains less fat than most other peanut butter brands in the market. This is an example of a A) confrontational appeal. B) recency appeal. C) nonverbal message. D) refutational appeal. E) one-sided message.

103) A two-sided message with a refutational appeal is more effective than a one-sided message because it

Version 1

A) presents only arguments favoring an advertiser's position. B) puts the strongest arguments in the middle of an advertising message. C) inoculates the target audience against a competitor's counterclaim. D) increases the level of counterargument. E) is easily understood and accepted by the target audience.

104) Mars Inc. aired a radio ad for its pizza with a catchy jingle that garnered huge appreciation. After two weeks, it ran a magazine ad for the pizza that failed in its appeal. Which of the following reasons can explain the reduction in persuasiveness of the magazine ad for Mars's pizza? A) The magazine ad is part of a huge clutter that has negatively affected the attitude of the target audience toward Mars's pizza. B) The processing stimulated by the magazine ad is less controlled and less favorable than the processing stimulated by the radio ad. C) In order to view a magazine ad, people have to buy the magazine that features the ad, resulting in reduced appeal. D) The magazine ad does not create a primacy effect, unlike the radio ad. E) The radio ad creates a stimulation based on the recency effect, unlike the magazine ad.

105) Krypton Inc., a toothbrush manufacturer, prints a magazine ad with a picture of a smiling child with clean, white teeth and a caption that reads, "It has never been so easy for your kids to brush their teeth." Krypton believes that using a picture to accompany the copy-heavy ad will A) form impressions because of the image. B) distract from the copy. C) reinforce the primacy effect. D) reinforce the recency effect. E) create a strong refutational appeal.

106)

To increase immediate and delayed recall, advertisers design ads with

Version 1

A) a lot of copy explaining the message. B) a lot of images but no copy. C) minimal copy with significant imagery. D) a high amount of imagery in both the advertisement and the copy.

107) Which of the following situations would be most conducive to the use of a comparative advertising message? A) A company is a market leader with high market share. B) A company is a market leader and is concerned about a new, smaller company entering the market. C) A market leader wants to promote its brand to customers of smaller companies in the same industry. D) A company with a new brand wants to position that brand against established brands. E) A company wants its audience to know the different companies that it is competing with.

108) ________ is the practice of either directly or indirectly naming competitors in an ad and measuring the similarity or dissimilarity of one or more specific attributes. A) Slice-of-life advertising B) Two-sided advertising C) Comparative advertising D) Verbal appealing E) Refutation advertising

109) Which of the following statements best describes a reason for using comparative advertising?

Version 1

A) It prevents a new market entrant from positioning itself against established brands. B) It positions a brand in the evoked set of alternate brands that consumers consider. C) It is perceived as more ethical than noncomparative ads. D) It is generally not considered to be useful for new brands. E) It is not permitted by the Federal Trade Commission.

110) A magazine ad for Spotless Fabric Care detergent states that it cleans stains better than either Fauna detergent or Neon Laundry detergent. The Spotless ad is an example of A) confrontational advertising. B) two-sided advertising. C) comparative advertising. D) a recency appeal. E) refutational advertising.

111) “Pamper yourself with Silk Sheen body lotion. It’s better for your skin than Inflame, Genesis, or Dusk body lotions.” This headline from a Silk Sheen ad in Belle Ménage magazine is an example of A) confrontational advertising. B) two-sided advertising. C) comparative advertising. D) a recency appeal. E) refutational advertising.

112) A magazine ad features a picture of a woman walking along a beach on a bright, sunny day with the copy, “Arianne sunscreen lotion provides better UV protection than Gisele sunscreen.” This ad is an example of

Version 1

A) confrontational advertising. B) two-sided advertising. C) comparative advertising. D) a verbal appeal. E) refutational advertising.

113) An ad for Trice antacid shows a patron at a restaurant asking for Trice to alleviate heartburn. The waiter points to a bowl that is filled with a mix of Oxyline, Polar, Trice, and other antacids and says that all antacids are the same. The patron then explains that Trice is the only antacid that contains vitamin E. In this scenario, Trice is using A) one-sided advertising. B) two-sided advertising. C) comparative advertising. D) verbal appeals. E) refutation.

114) A television ad for Corona deodorant shows a college freshman being socially rejected for having body odor. He is teased and rejected by members of the college dance club. A fellow student gives him a Corona deodorant. After using the deodorant, the freshman is accepted in the dance club and becomes popular. In this ad, Corona is using a ________ appeal. A) comparative B) noncognitive C) humor D) fear E) refutational

115) An ad campaign to convince people to stop driving under the influence of alcohol features images of auto accidents caused by drunk drivers, as well as people who have been in such accidents relating their experiences. This campaign is using a(n) ________ appeal.

Version 1

A) comparative B) irrational C) leveling D) fear E) nonverbal

116) A television commercial for Prime mouthwash shows a young man at a night club approaching a group of women. As he opens his mouth to introduce himself, the women get up from their seats and leave. The ad’s caption reads, “Do you suffer from bad breath?” This ad is an example of A) a fear appeal. B) an irrational appeal. C) comparative advertising. D) a refutational appeal. E) noncognitive advertising.

117) A potential problem of using advertising with a strong fear appeal to discourage drug abuse among teenagers is that A) there is no appropriate medium. B) it works only in combination with a refutational appeal. C) it may have inhibiting effects and be tuned out by teenagers. D) a message with high levels of fear creates low self-esteem. E) parents may be offended if the message is perceived as too frightening.

118) The ________ is an approach to explain the curvilinear nature of fear appeals that suggests that both the cognitive appraisal of information in a fear appeal message and the emotional response mediate persuasion.

Version 1

A) protection motivation model B) nonmonotonic model C) cognitive response model D) response-stimuli hierarchy E) persuasive delimiter model

119)

Which of the following statements is true of humor appeals? A) They usually generate more counterarguments among consumers. B) They enhance effectiveness by putting consumers in a positive mood. C) The television medium does not lend itself to humor appeals. D) The print medium is not feasible for humor appeals. E) They cannot be presented through radio.

120)

Humorous messages are generally considered effective because they enhance A) comprehension. B) attention. C) support arguments. D) source derogation. E) counterargument.

121)

Humorous messages enhance the effectiveness of an advertisement by A) eliminating fear appeals. B) reinforcing the recency effect. C) reinforcing the primacy effect. D) stimulating immediate purchasing behavior. E) putting consumers in a positive mood.

Version 1

122) The tendency of a television or radio commercial to lose its effectiveness when it is seen and/or heard repeatedly is known as A) the repetition paradox. B) the qualitative effect. C) wearout. D) commercial reactance. E) message decay.

123) Which of the following statements is true of the use of humor in ad campaigns and commercials? A) Humorous commercials are always perceived as entertaining. B) Humorous commercials distract a receiver from counterarguing against an advertiser’s message. C) Research evidence proves humor does not wear out as fast as other types of advertising appeals. D) Humor is not used in print ads but is only presented through radio and TV commercials. E) High-involvement products are better suited for advertising humor than lowinvolvement products.

124)

Critics of humorous commercials argue that funny ads A) distract consumers from a brand and its attributes. B) have no shock value. C) often put people in a gloomy mood. D) do not draw consumers’ attention to the ads. E) compel consumers to engage in counterarguments.

125) During the live television broadcast of a basketball game, an ad for Humberto’s Pizza is aired frequently during the commercial breaks. Jason, who is watching the game on TV, expresses annoyance every time he sees the pizza commercial. Humberto’s Pizza’s commercial is likely to be facing Version 1

A) a qualitative degradation. B) a fear appeal. C) a wearout. D) a commercial reactance. E) a refutation.

126) Which of the following statements is true of a channel used in the communication process? A) Information received via mass media is more persuasive than information received from personal influence channels. B) As objections arise and are voiced by buyers, an advertisement can treat the objections in an appropriate manner. C) A message in a good sales presentation is determined in advance. D) An advertisement is typically prepared by people who have maximum personal contact with customers. E) From the standpoint of persuasion, a sales message is more flexible and powerful than an advertisement.

127) The processing of information in advertisements likely to be externally paced for which of these media? A) television and radio B) magazines and billboards C) magazines and newspapers D) transit advertising and billboards E) internet and direct mail

128) Which of the following media should be used when an advertiser wants to present a detailed message with a large amount of information?

Version 1

A) television B) billboards C) magazines D) transit signs E) radio

129)

Information from ads presented in broadcast media is A) externally paced. B) self-paced. C) internally paced. D) personally paced. E) intermittently paced.

130) A direct-mail piece advertising a collection of home maintenance books would have its information A) externally paced. B) self-paced. C) virtually paced. D) controlled by the message recipient. E) placed in qualitative media.

131) A magazine titled Utopia: A Holiday Digest would have a strong ________ on an ad for destination resorts. A) externally paced impact B) favorable quantitative media effect C) cluttered media effect D) shaping effect E) positive qualitative media effect

Version 1

132) Recently, some cable networks such as TBS and TNT have used compression technology to speed up the transmission of programs and allow more time for commercials, adding to the ________ problem. A) impact B) quantitative C) clutter D) shaping E) positivity

133) Advertisers who want to advertise during award-winning television shows are looking to transfer the favorable impressions of the shows onto their products. This transference is called a A) self-paced impact. B) favorable quantitative media effect. C) cluttered effect. D) shaping effect. E) positive qualitative media effect.

134)

Which of the following statements about the qualitative media effect is true? A) It is the influence a medium has on a message. B) It is the general guideline used to determine the quality of a medium. C) It indicates that the image a message conveys is transferred to the medium. D) It is also known as the shaping effect. E) It is the measurement used to indicate the effectiveness of a message.

135) Companies are willing to pay premium rates to advertise on popular programs such as the Olympic Games and Christmas specials because these televised events

Version 1

A) attract only affluent viewers. B) create positive moods that can make viewers more responsive to commercials. C) show very few commercials. D) have low levels of advertising clutter. E) have effective appeals that are minimized by the cognitive appeal of the commercials.

136) A study by Andrew Aylesworth and Scott MacKenzie found that commercials placed in programs that induce negative moods are A) prone to extensive critical scrutiny of the companies’ products or services by the audience. B) processed less systematically than ads placed in programs that put viewers in positive moods. C) useful when the message is intended to work through a central route to persuasion. D) useful when viewers are knowledgeable and can analyze an ad in detail. E) helpful in exciting the readers and viewers of the message about the product or the service.

137) An advertiser whose message is placed in the middle of five consecutive commercials during a program break faces the problem of A) clutter. B) media flooding. C) media bombardment. D) flighting. E) information overload.

138) ________ is an aspect of the media environment and is defined as the amount of advertising in a medium.

Version 1

A) Qualitative media effect B) Wearout C) Clutter D) Familiarity score E) Refutation

139) All nonprogram material that appears in a broadcast environment, including commercials, public service announcements, and promotional messages for shows, contributes to A) a message comparison phenomenon. B) comparative advertising. C) the clutter problem. D) media reduction. E) the quantitative media effect.

140) Which of these factors contributes the most to the problem of clutter in television advertising? A) the use of celebrities in ads B) the use of emotional appeals C) the trend toward shorter commercials D) the increase in zapping or channel hopping E) the use of fear appeals

Version 1

Answer Key Test name: Chap 06_12e 1) FALSE An indirect source, say, a model, doesn't actually deliver a message but draws attention to and/or enhances the appearance of the ad. Some ads use neither a direct nor an indirect source; the source is the organization with the message to communicate. 2) TRUE A communicator who is seen as knowledgeable—someone with expertise—is more persuasive than one with less expertise. The source also has to be trustworthy—honest, ethical, and believable. 3) FALSE One of the concerns of creating an image or culture around the CEO is that it can make the corporate brand image more vulnerable if the individual becomes involved in any type of controversy such as a labor dispute, political issue, or personal problem. 4) TRUE Defenders of the practice argue that the use of top executives or business owners in ads is an effective way of projecting an image of trust and honesty and, more important, the idea that the company isn't run by some faceless corporate monolith. 5) TRUE Unlike internalization, identification does not usually integrate information from an attractive source into the receiver's belief system. The receiver may maintain the attitudinal position or behavior only as long as it is supported by the source or the source remains attractive. Version 1

6) FALSE The opposite is true—consumers with little knowledge or neutral attitudes are more likely to be influenced by a celebrity than consumers who are particularly knowledgeable about a product or service or have strongly established attitudes. 7) TRUE Increasing the level of fear in a message from low to moderate can result in increased persuasion. High levels of fear, however, can produce inhibiting effects; the receiver may emotionally block the message by tuning it out, perceiving it selectively, or denying its arguments outright. 8) D Fear is an emotional response to a threat that expresses, or at least implies, some sort of danger. Ads sometimes use fear appeals to evoke this emotional response and arouse individuals to take steps to remove the threat. 9) B Independent variables are the controllable components of the communication process; dependent variables are the steps a receiver goes through in being persuaded. Marketers can choose the person or source who delivers the message, the type of message appeal used, and the channel or medium. 10) C Promotional planners need to know how decisions about each independent variable influence the stages of the response hierarchy so that they don't enhance one stage at the expense of another. For example, a humorous message may gain attention but result in decreased comprehension if consumers fail to process its content. 11) B Version 1

Source credibility leads to internalization. Source attractiveness leads to identification. 12) B Attractiveness leads to persuasion through a process of identification. The recipient identifies with the source and wants to adopt their views and opinions. For example, if you are purchasing a fitness product, you are more likely to purchase from a source that is in good physical shape than from a source that is not in good physical shape. 13) A The FTC developed the guidelines in response to studies that showed as many as 30 percent of online reviews were fake and were coming from someone who had been paid to write them or failed to reveal their association with a company or brand. 14) B One of the reasons a low-credibility source may become as effective as a high-credibility source is the sleeper effect, whereby the persuasiveness of a message increases with the passage of time. The immediate impact of a persuasive message may be inhibited; but with time, the association of the message with the source diminishes and the receiver's attention focuses more on favorable information in the message. 15) A High- and low-credibility sources are equally effective when they are arguing for a position opposing their own best interest. A very credible source is more effective when message recipients are not in favor of the position advocated in the message. A very credible source is less important when the audience has a neutral position, and such a source may be even less effective than a moderately credible source when the receiver's initial attitude is favorable. Version 1

16) A Marketers have recognized that people are more likely to be influenced by a message when it is delivered from someone that is similar to them. If the source shares common characteristics such as background, physical appearance, attitudes and vernacular, people are better able to relate to the source and are more receptive to the message that the source delivers. 17) B The "vampire effect" occurs when the personality of the celebrity endorser overshadows the brand that he or she is advertising. 18) B Overexposure increases consumer skepticism of celebrity endorsers. 19) C Putting the strong points at the end assumes a recency effect, whereby the last arguments presented are most persuasive. 20) A Many press releases use the pyramid style of writing, which means the most important information is presented up front to make sure that it is read. 21) D When immediate impact is not the objective and repeated exposure will give the audience members opportunities to draw their own conclusions, an open-ended message may be used. Drawing a conclusion in a message may make sure the target audience gets the point the marketer intended. 22) C

Version 1

Most advertisers use one-sided messages. They are concerned about the negative effects of acknowledging a weakness in their brand or don't want to say anything positive about their competitors. 23) B The use of comparative advertising is not limited to new brands or those with a small market share; a number of high-profile marketers have been using comparative appeals to differentiate their brands in a competitive marketplace. 24) B Advertisers will often use non-verbal messaging to enhance the message receptivity. Non-verbal messaging includes imagery that supports the verbal message. 25) B Wearout may occur if consumers no longer pay attention to a commercial after several exposures or become annoyed at seeing or hearing an ad multiple times. Some experts argue that humorous ads wear out faster than other formats because once the consumer gets the joke, the ad becomes boring. 26) C Information from ads in print media, such as newspapers, magazines, or direct mail, as well as the Internet is self-paced; readers process the ad at their own rate and can study it as long as they desire. In contrast, information from the broadcast media of radio and television is externally paced; the transmission rate is controlled by the medium. 27) C

Version 1

For television, clutter is often viewed as including all the nonprogram material that appears in the broadcast environment—commercials, promotional messages for shows, public service announcements (PSAs), and the like. Clutter levels are higher on many cable networks and during daytime programs. 28) B The persuasion matrix helps marketers see how each controllable element of the communications model interacts with consumer's response process. 29) C According to the persuasion matrix, comprehension is a dependent variable of the communications model. Dependent variables are the steps a receiver goes through in being persuaded. Marketers can choose the person or source who delivers a message, the type of message appeal used, and the channel or medium. 30) E Independent variables are the controllable components of the communication process. The destination variable is included because the initial message recipient may pass on information to others, such as friends or associates, through word of mouth. 31) C Independent variables are the controllable components of the communication process. The destination variable is included because the initial message recipient may pass on information to others, such as friends or associates, through word of mouth. 32) D

Version 1

In this scenario, a less-educated audience is likely to face issues with comprehension. Marketers must know their target market to make their messages clear and understandable. A less-educated person may have more difficulty interpreting a complicated message. Jargon may be unfamiliar to some receivers. The more marketers know about the target market, the more they see which words, symbols, and expressions their customers understand. 33) C In this scenario, the ad is ineffective because an improper media channel is used. It is important that a media vehicle should reach the marketer's target audience well. 34) C In the above scenario, CL Inc. is trying to influence the attention channel. The large number of ads people are bombarded with every day makes it difficult for advertisers to break through the clutter. Marketers deal with this problem by using sources who will attract the target audience's attention—actors, athletes, rock stars, or attractive models. 35) B The large number of ads people are bombarded with every day makes it difficult for advertisers to break through the clutter. Marketers deal with this problem by using sources who will attract the target audience's attention—actors, athletes, rock stars, or attractive models. 36) A A direct source is a spokesperson who delivers a message and/or endorses a product or service. 37) B An indirect source doesn't actually deliver a message but draws attention to and/or enhances the appearance of an ad. Version 1

38) B Herbert Kelman developed three basic categories of source attributes: credibility, attractiveness, and power. 39) C Credibility is the extent to which a recipient sees a source as having relevant knowledge, skill, or experience and trusts the source to give unbiased, objective information. 40) D There are two important dimensions to credibility, expertise and trustworthiness. 41) C Information from a credible source influences beliefs, opinions, attitudes, and/or behavior through a process known as internalization, which occurs when a receiver adopts the opinion of a credible communicator since he or she believes information from this source is accurate. 42) C There are two important dimensions to credibility, expertise and trustworthiness. 43) B In this scenario, the use of a credible source is likely to reduce counterarguments against the company. A highly credible communicator is particularly important when message recipients have a negative position toward a product, service, company, or issue being promoted, because the credible source is likely to inhibit counterarguments. 44) A

Version 1

The importance of using expert sources was shown in a study by Roobina Ohanian, who found that the perceived expertise of celebrity endorsers was more important in explaining purchase intentions than their attractiveness or trustworthiness. 45) A A marketer of super computers is likely to recruit salespeople with high levels of expertise. Marketers of highly technical products recruit sales reps with specialized technical backgrounds in engineering, computer science, and other areas to ensure their expertise. 46) E A direct source delivers a message and/or endorses a product or service. 47) A Advertisers use various techniques to increase the perception that their sources are trustworthy. Hidden cameras are used to show that a consumer is not a paid spokesperson and is making an objective evaluation of a product. 48) A In this scenario, the use of a fashion expert is likely to improve the store's credibility. A way of enhancing source credibility is to use the company president or chief executive officer as a spokesperson in a firm's advertising. 49) C If a firm's image becomes too closely tied to a popular leader, there can be problems if that person leaves the company. 50) D A very credible source is more effective when message recipients are not in favor of the position advocated in a message. Version 1

51) A A low-credibility source may be as effective as a high-credibility source because of the sleeper effect, whereby the persuasiveness of a message increases with the passage of time. 52) C A low-credibility source may be as effective as a high-credibility source because of the sleeper effect, whereby the persuasiveness of a message increases with the passage of time. With time, the association of the message with the source diminishes and the receiver's attention focuses more on favorable information in the message, resulting in more support. 53) B A source characteristic frequently used by advertisers is attractiveness, which encompasses similarity, familiarity, and likability. 54) C Similarity is a supposed resemblance between a source and a receiver of a message. 55) E Likability is an affection for a source as a result of physical appearance, behavior, or other personal traits. 56) B Source attractiveness leads to persuasion through a process of identification, whereby a receiver is motivated to seek some type of relationship with the source and thus adopts similar beliefs, attitudes, preferences, or behavior. 57) D

Version 1

Unlike internalization, identification does not usually integrate information from an attractive source into the receiver's belief system. The receiver may maintain the attitudinal position or behavior only as long as it is supported by the source or the source remains attractive. 58) C Similarity is used in various ways in marketing communications. Companies select salespeople whose characteristics match well with their customers. 59) C This is an example of a slice-of-life commercial. In a slice-of-life commercial, an advertiser usually starts by presenting a predicament with the hope of getting a consumer to think, "I can see myself in that situation." This can help establish a bond of similarity between the communicator and the receiver, increasing the source's level of persuasiveness. 60) D In a slice-of-life commercial, an advertiser usually starts by presenting a predicament with the hope of getting a consumer to think, "I can see myself in that situation." This can help establish a bond of similarity between the communicator and the receiver, increasing the source's level of persuasiveness. 61) C Advertisers should select a celebrity spokesperson who will attract attention and enhance the sales message, yet not overshadow the company's brand. 62) B

Version 1

Consumers are often skeptical of endorsements because they know the celebrities are being paid. This problem is particularly pronounced when a celebrity endorses too many products or companies and becomes overexposed. 63) B Advertisers can protect themselves against overexposure with an exclusivity clause limiting the number of products a celebrity can endorse. 64) B This scenario is an example of risk to the advertiser. Celebrities can be involved in activities that could embarrass the companies whose products they endorse. Companies must be very selective in selecting endorsers and in how much they pay them. 65) D According to meaning transfer model, a celebrity's effectiveness as an endorser depends on the culturally acquired meanings he or she brings to the endorsement process. Celebrities draw these powerful meanings from the roles they assume in their television, movie, military, athletic, and other careers. Each new dramatic role brings the celebrity into contact with a range of objects, persons, and contexts. 66) B McCracken suggests celebrity endorsers bring their meanings and image into an ad and transfer them to the product they are endorsing. According to this model, a celebrity's effectiveness as an endorser depends on the culturally acquired meanings he or she brings to the endorsement process. 67) D

Version 1

A model endorsing a brand of cosmetics is the best example of a celebrity endorser enhancing consumers' perceptions of a product's performance capabilities. McCracken suggests celebrity endorsers bring their meanings and image into an ad and transfer them to the product they are endorsing. 68) C In the final stage of McCracken's meaning transfer model, the meanings the celebrity has given to the product are transferred to the consumer. 69) A The familiarity score indicates what percentage of people have heard of an endorser or a performer. 70) C The well-known Q-score is calculated by taking the percentage of respondents who indicate that a person is "one of my favorites" and then dividing that number by the percentage of respondents who indicate they have heard of that person. This score thus answers the question, "How appealing is the person among those who do know him or her?" 71) D In this ad, the woman is a passive model. Advertisers often draw attention to their ads by featuring a physically attractive person who serves as a passive or decorative model rather than as an active communicator. 72) E Products such as cosmetics or fashionable clothing are likely to benefit from the use of an attractive model, since physical appearance is very relevant in marketing these items. 73) D Version 1

A source has power when he or she can actually administer rewards and punishments to a receiver. 74) A When a receiver perceives a source as having power, the influence process occurs through a process known as compliance. A source has power when he or she can actually administer rewards and punishments to the receiver. 75) A In this scenario, Darrell is said to have perceived control. Perceived control is when a source is perceived as being able to administer positive or negative sanctions to a receiver. 76) E In this scenario, Emma is said to have perceived concern. Perceived concern is when a receiver thinks that a source cares about whether or not the receiver conforms. 77) B Persuasion induced through compliance may be superficial and last only as long as the receiver perceives that the source can administer some reward or punishment. 78) C When a receiver perceives a source as having power, the influence process occurs through a process known as compliance. 79) C Extensive research has been conducted on how the structure of a persuasive message can influence its effectiveness, including order of presentation, conclusion drawing, message sidedness, refutation, and verbal versus visual message characteristics. Version 1

80) A Presenting the strongest arguments at the beginning of a message assumes a primacy effect is operating, whereby information presented first is most effective. 81) A In this scenario, the advertising is using a primacy effect. Presenting the strongest arguments at the beginning of a message assumes a primacy effect is operating, whereby information presented first is most effective. 82) A Putting the strong points at the end assumes a recency effect, whereby the last arguments presented are most persuasive. 83) B In this scenario, Flora is attempting to use the recency effect. Putting the strong points at the end assumes a recency effect, whereby the last arguments presented are most persuasive. 84) A In this scenario, Cassie was attempting to use the primacy effect. Putting the strong arguments at the beginning to arouse interest from people who are not interested in the message is an application of the primacy effect. 85) B This scenario is an illustration of the recency effect. Putting the strong points at the end assumes a recency effect, whereby the last arguments presented are most persuasive. 86) A In the above scenario, Charlotte BB cream is attempting to use the primacy effect. Presenting the strongest arguments at the beginning of a message assumes a primacy effect is operating. Version 1

87) C If the target audience is opposed to a communicator's position, presenting strong points first can reduce the level of counterarguing. 88) B Strong arguments work best at the beginning of a message if the audience is not interested in the topic, so it can develop interest in the message. 89) C If immediate action is an objective, a message should draw a definite conclusion. 90) B In this scenario, the advertisers have opted to let their readers draw their own conclusions from the ad. Many advertisers believe that letting customers draw their own conclusions reinforces the points being made in a message. 91) E Stating the conclusion may be necessary for a less educated audience, who may not draw any conclusion or may make an incorrect inference from the message. 92) A When immediate impact is not an objective and repeated exposure will give the audience members opportunities to draw their own conclusions, an open-ended message may be used. 93) A A one-sided message mentions only positive attributes or benefits. 94) B

Version 1

In these ads, Xenon uses a two-sided message. A two-sided message presents both good and bad points. Two-sided messages are more effective when the target audience holds an opposing opinion or is highly educated. 95) D Refutational messages may be useful when marketers wish to build attitudes that resist change and/or must defend against attacks or criticism of their products or the company. 96) A One-sided messages are most effective when the target audience already holds a favorable opinion about a topic. Two-sided messages are more effective when the target audience holds an opposing opinion or is highly educated. 97) C Bliss Burgers' management was apprehensive about acknowledging any potential weaknesses in their products. They are concerned about the negative effects of acknowledging a weakness in their brand and don't want to say anything positive about their competitors. Most advertisers use one-sided messages. 98) D In a special type of two-sided message known as a refutational appeal, a communicator presents both sides of an issue and then refutes an opposing viewpoint. 99) D In this scenario, the radio commercial is using a refutational appeal. In a special type of two-sided message known as a refutational appeal, a communicator presents both sides of an issue and then refutes an opposing viewpoint. Version 1

100) C Wafers Lounge is using a refutational appeal in their ads. In a special type of two-sided message known as a refutational appeal, a communicator presents both sides of an issue and then refutes an opposing viewpoint. 101) C In a special type of two-sided message known as a refutational appeal, a communicator presents both sides of an issue and then refutes an opposing viewpoint. Since refutational appeals tend to "inoculate" the target audience against a competitor's counterclaims, they are more effective than one-sided messages. 102) D Pete's Peanut Butter is using a refutational appeal. In this special type of two-sided message, a communicator presents both sides of an issue and then refutes an opposing viewpoint. 103) C Since refutational appeals tend to "inoculate" the target audience against a competitor's counterclaims, they are more effective than one-sided messages in making consumers resistant to an opposing message. 104) B In this scenario, the magazine ad garnered less attention due to its visual component. In some cases, the visual portion of an ad may reduce its persuasiveness, since the processing stimulated by the picture may be less controlled and consequently less favorable than that stimulated by words. 105) A

Version 1

In this scenario, Krypton is attempting to get consumers to engage in more elaborative processing. By using a visual of a child with clean, white teeth, they are appealing to parents who have difficulty getting their children to brush their teeth. Coupled with the copy of “It has never been so easy for your kids to brush their teeth” forms a stronger impression on the parent that Krypton toothbrushes can solve their problem with the child brushing their teeth. 106) C Research has shown that when the verbal component of an ad is low in imagery, adding images to the advertisement increases both immediate and delayed recall. 107) D Comparative advertising may be particularly useful for new brands, since it allows a new market entrant to position itself directly against the more established brands and to promote its distinctive advantages. 108) C Comparative advertising is the practice of either directly or indirectly naming competitors in an ad and comparing one or more specific attributes. 109) B Direct comparisons can help position a new brand in the evoked, or choice, set of brands the customer may be considering. 110) C In this scenario, Spotless Fabric Care detergent is using comparative advertising. Comparative advertising is the practice of either directly or indirectly naming competitors in an ad and comparing one or more specific attributes.

Version 1

111) C Silk Sheen is using comparative advertising. Comparative advertising is the practice of either directly or indirectly naming competitors in an ad and comparing one or more specific attributes. 112) C In this ad, Arianne is using comparative advertising. Comparative advertising is the practice of either directly or indirectly naming competitors in an ad and comparing one or more specific attributes. 113) C Trice is using comparative advertising. Comparative advertising is the practice of either directly or indirectly naming competitors in an ad and comparing one or more specific attributes. 114) D Corona is using a fear appeal. Fear is an emotional response to a threat that expresses, or at least implies, some sort of danger. Ads sometimes use fear appeals to evoke this emotional response and arouse individuals to take steps to remove the threat. 115) D This campaign is using a fear appeal. Fear is an emotional response to a threat that expresses, or at least implies, some sort of danger. Ads sometimes use fear appeals to evoke this emotional response and arouse individuals to take steps to remove the threat. 116) A This ad is an example of fear appeal. Fear is an emotional response to a threat that expresses, or at least implies, some sort of danger. Ads sometimes use fear appeals to evoke this emotional response and arouse individuals to take steps to remove the threat.

Version 1

117) C High levels of fear can produce inhibiting effects; the receiver may emotionally block the message by tuning it out, perceiving it selectively, or denying its arguments outright. 118) A An approach to the curvilinear explanation of fear is the protection motivation model. This model suggests that both the cognitive appraisal of the information in a fear appeal message and the emotional response mediate persuasion. 119) B Humorous ads are often the best known and best remembered of all advertising messages. They enhance effectiveness by putting consumers in a positive mood. Humor is usually presented through radio and TV commercials as these media lend themselves to the execution of humorous messages. 120) C Humorous messages attract and hold consumers’ attention. They enhance effectiveness by putting consumers in a positive mood, increasing their liking of an ad itself and their feeling toward the product or service. Humor can distract the receiver from counterarguments against the message. 121) E Humorous messages attract and hold consumers’ attention. They enhance effectiveness by putting consumers in a positive mood, increasing their liking of the ad itself and their feeling toward the product or service. 122) C

Version 1

Wearout refers to the tendency of a television or radio commercial to lose its effectiveness when it is seen and/or heard repeatedly. 123) B Humorous messages attract and hold consumers’ attention. They enhance effectiveness by putting consumers in a positive mood, increasing their liking of the ad itself and their feeling toward the product or service. And humor can distract the receiver from counterarguing against the message. 124) A Critics argue that funny ads draw people to a humorous situation but distract them from the brand and its attributes. 125) C In this scenario, the repetition of Humberto’s ads has created a wearout. Wearout refers to the tendency of a television or radio commercial to lose its effectiveness when it is seen and/or heard repeatedly. Wearout may occur if consumers no longer pay attention to a commercial after several exposures or become annoyed at seeing or hearing an ad multiple times. 126) E From the standpoint of persuasion, a sales message is far more flexible, personal, and powerful than an advertisement. 127) A Information from the broadcast media of radio and television is externally paced; the transmission rate is controlled by the medium. 128) C

Version 1

Self-paced print media make it easier for a message recipient to process a long, complex message. Advertisers often use print ads when they want to present a detailed message with a lot of information. 129) A Information from the broadcast media of radio and television is externally paced; the transmission rate is controlled by the medium. 130) B Information from ads in print media, such as newspapers, magazines, or direct mail, as well as the Internet is self-paced; readers process the ad at their own rate and can study it as long as they desire. Self-paced print media make it easier for recipients to process a long, complex message. 131) E This magazine would have a positive qualitative media effect. A qualitative media effect is the influence a medium has on a message. The image of a media vehicle can affect reactions to a message. For example, an ad for a high-quality men’s clothing line might have more impact in a fashion magazine like GQ than in Sports Afield. 132) C This practice increases clutter, which has been defined as the amount of advertising in a medium. 133) E This transference is an example of a positive qualitative media effect. A qualitative media effect is the influence a medium has on a message. The image of a media vehicle can affect reactions to a message. 134) A A qualitative media effect is the influence a medium has on a message. The image of a media vehicle can affect reactions to a message. Version 1

135) B Advertisers pay premium dollars to advertise on popular programs that create positive moods, like the Olympic Games and Christmas specials. 136) B Andrew Aylesworth and Scott MacKenzie found that commercials placed in programs that induce negative moods are processed less systematically than ads placed in programs that put viewers in positive moods. 137) A Clutter is an aspect of the media environment that is important to advertisers. It is defined as the amount of advertising in a medium. 138) C An aspect of the media environment that is important to advertisers is the problem of clutter, which has been defined as the amount of advertising in a medium. 139) C For television, clutter is often viewed as including all the nonprogram material that appears in the broadcast environment—commercials, promotional messages for shows, public service announcements (PSAs), and the like. 140) C Clutter has become a major concern among television advertisers as a result of increases in nonprogram time and the trend toward shorter commercials.

Version 1

CHAPTER 7 TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) If sales are used as a direct measure of response to advertising, products characterized as large-dollar purchases and those in the maturity or decline stages of the product would be less likely to benefit. ⊚ ⊚

true false

2) In the top-down approach, the budgetary amount is established usually at the departmental level. ⊚ ⊚

true false

3) In the arbitrary allocation approach to budgeting, systematic thinking occurs and objectives are budgeted for. ⊚ ⊚

true false

The competitive parity method takes advantage of the collective wisdom of the industry. ⊚ ⊚

true false

5) In the objective and task method to budget setting, managers closest to the marketing effort do not have specific strategies to achieve the objective. ⊚ ⊚

Version 1

true false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 6) Innovation Marketers is working with Sum Company to create a promotional campaign. They are recommending the best way to measure whether a promotional campaign is a success or failure is to create and apply A) a marginal analysis. B) decision making. C) contribution margin. D) return on investment. E) marketing objectives.

7) Innovation Marketers is helping Sum Company realize that choices should be made between different strategic and tactical options based on how well a particular strategy matches the their promotional objectives. Meaningful objectives can be a monitor for A) a marginal analysis. B) decision making. C) contribution margins. D) return on investment. E) marketing objectives.

8) Sum Company’s board believes that the basic reason to have an advertising budget is to set one objective—to sell their products. Innovation Marketers is working change this paradigm by creating a series of marketing objectives to show the investment in promotional spending and to better identify the use of Sum Company’s recourses by providing economic justification. This is also known as A) marginal analysis. B) decision making. C) contribution margin. D) return on investment.

Version 1

9) Sum Company is learning from Innovation Marketers the difference between marketing and communication objectives. They are in the process of creating their integrated marketing plan using the guideline that good marketing objectives are realistic, attainable, and A) intentional. B) finite. C) calculable. D) anticipated. E) quantifiable.

10) Innovation Marketers is reviewing Sum Company’s integrated marking communications program. Sum Company has made the shift from looking solely at market share to an IMC based on A) consumer objectives. B) communication objectives. C) marketing objectives. D) sales objectives. E) sales-driven objectives.

11) Sum Company is working on their advertising budget. They are taking advice and applying it to their projections, realizing that money spent on advertising does not line up to sales in the same month or even quarter. This lag is called A) a marginal analysis effect. B) a consumer effect. C) a contribution margin effect. D) a carryover effect. E) an arbitrary allocation effect.

12) The communications effects pyramid used for advertising and promotion identifies the type of communication tasks and promotion al objectives to be accomplished to draw consumers to the brand. The fourth stage of the pyramid retaining about 25% of the original consumer base is Version 1

A) awareness. B) liking. C) preference. D) knowledge/comprehension. E) trial.

13) Sum Company has developed a marketing plan with the objective of increasing sales by 5 percent. As the promotional planner, Innovation Marketing is working with Sum Company to create a message that will be communicated to the target audience to achieve this. It is important for measuring return on investment to translate a sales goal into A) one-to-one marketing. B) a decision-making model. C) a communications objective. D) an arbitrary allocation model. E) a marketing objective.

14) Wilson was hired by Productivity Advertising as a marketing VP to lead a massmarketing effort. After a few weeks, he introduced the idea of moving away from the consumer funnel to looking at the bottom half of the funnel for creating conversion strategies, offering the target audience the right offers on the right platform at the right time. Essentially, he is suggesting replacing mass marketing with A) one-to-one marketing. B) S-shaped response curve. C) concave-downward function model. D) arbitrary allocation marketing. E) zero-based communications planning.

Version 1

15) Wilson, a marketing VP for Productivity Advertising, has been introducing concepts to help guide the marketing effort. A timeless model for setting advertising objectives and measuring the results of an ad campaign is Defining Advertising Goals for Measured Advertising Results (DAGMAR). The DAGMAR model states an advertising goal involves ________ that is specific and measurable. A) a communication objective B) a marketing task C) an advertising task D) a communication task E) a marketing objective

16) Productivity Advertising’s marketing VP Wilson is going over the advertising process, reminding the team that a good advertising objective should be stated in terms of concrete and ________ communications tasks, specify a target audience, indicate a benchmark starting point and the degree of change sought, and specify a time period for accomplishing the objective(s). A) customer-driven B) improvised C) sales-attributed D) measurable E) market-based

17) The Sum Company board members have an abstract idea of what the IMC program is supposed to do. Some members oppose the DAGMAR approach, expressing concern that in the past ad campaigns that achieve communications objectives fail to increase sales. What stage of the communication task hierarchy are they focused on? A) awareness B) information gathering C) action D) conviction E) comprehension

Version 1

18) Sum Company’s board has asked to meet with Productivity Advertising’s marketing VP Wilson to help them better understand setting objectives for the IMC program. Wilson is encouraging Sum’s board to move away from their perspective on what they want to say is important about the brand, with the intention to start with the customer and build back to the brand. This approach is known A) as zero-based communications planning. B) as top-down approach planning. C) as inside-out planning. D) as arbitrary allocation planning. E) as outside-in planning.

19) To keep Sum Company’s board members perspective as a point of comparison, Productivity Advertising’s marketing VP Wilson has asked for their input to benchmark what they would like in the form of media, what they would like emphasized about the Sum brand, and when the message should be communicated. In doing so, Wilson is demonstrating the steps of A) zero-based communications planning. B) top-down approach planning. C) inside-out planning. D) arbitrary allocation planning. E) outside-in planning.

20) Objectives and strategies for the social consumer decision journey are similar to traditional models, with stages that guide the consumer to the end goal of A) considering three alternatives. B) posting photos on social media. C) writing a review. D) purchasing their brand. E) deliberating between brands.

Version 1

21) Blueberry Designs launched their active wear line a year ago. The Instagram kick-off campaign was successful. Realizing they need to monitor their online presence for how they are being perceived in the marketplace, Blueberry Designs has hired a team to keep tabs and respond accordingly. This action is part of their ongoing A) marginal analysis. B) concave-downward function model. C) S-shaped response curve. D) top-down approach. E) social consumer decision journey.

22) Blueberry Designs is applying objectives and strategies to monitor, respond, amplify, and lead. Their marketing team knows it takes time to lead consumers to ________ behavioral changes. A) improved B) active C) demonstrating D) long-term E) socially conscious

23) Sum Company has reminded Innovation Marketing of the limitations of their budget. Innovation Marketing reviewed the marketing plan to prompt Sum Company to look at the relationship between the communications analysis and the budget determination. This is known as A) a marginal analysis. B) a two-way interaction. C) a contribution margin. D) an arbitrary allocation interaction. E) a one-way interaction.

Version 1

24) Innovation Marketing’s philosophy is when times are good, you want to advertise; when times are tough, you have to advertise. Sum Company believes when times are tough, you should cut the advertising and promotional budget. Sum Company is treating the communications budget as an expense rather than A) overhead. B) a disbursement. C) an investment. D) an arbitrary allocation. E) a payment.

25) Innovation Marketers have been in business for over 80 years. They have seen changes in the economy and developed measures to address advertising in periods of recession. In anticipation of an economic downturn, Sum Company should use ________ for budgeting ad expenditures by identifying the difference between total revenue generated by the Sum Company brand and its total variable costs. A) direct marketing B) top-down approaches C) contribution margin D) arbitrary allocation E) an S-shaped response curve

26) Blueberry Designs has been establishing their communications budget by taking the gross margin minus advertising expenditures to identify profits. As they plan for the next fiscal cycle, they will monitor each quarter using this formula continuing to spend advertising/promotional dollars as long as the marginal revenues created by these expenditures exceeded the incremental advertising/promotional costs. They are demonstrating A) marginal analysis. B) a concave-downward function model. C) an S-shaped response curve. D) a top-down approach. E) arbitrary allocation.

Version 1

27) Sum Company has decided to go with Productivity Advertising for the next fiscal year. They like their philosophy of microeconomic law of diminishing returns, that consumers less likely to buy are not likely to change as a result of the advertising and that their advertising investment should be where there is the greatest potential for a consumer to buy, which is at first exposure. This approach to fewer advertising dollars to create the optimal influence on sales is called A) a marginal analysis. B) a concave-downward function model. C) an S-shaped response curve. D) a top-down approach. E) the social consumer decision journey.

28)

One important purpose of setting specific advertising goals and objectives is to A) provide a benchmark against which performance can be measured. B) put constraints on the creative department. C) have a method of determining when to delete products from the product line. D) forecast the market share level that can be attained by good advertising. E) protect all investors and debt holders.

29) Arden's task is to determine what was accomplished by his company's advertising and promotional program for a vinyl-siding cleanser. We can tell him that A) his task is impossible. B) all he needs is the sales results to determine what the program accomplished. C) his task could be made easier by setting specific communication objectives. D) he requires just the post-promotional consumer awareness levels to determine what the program accomplished. E) all he needs to do is measure the effectiveness of the media used for promoting the product.

30)

The more specific the firm's advertising objectives, the

Version 1

A) easier it becomes to measure advertising effectiveness. B) more difficult it is for competitors' advertising to be effective. C) easier it is to measure the advertising-sales response function. D) lesser the funding needed to meet advertising goals. E) more difficult it is for a competitor to use competitive parity budgeting.

31) Jaden is making a push to shift some of his company's communications budget to mobile, but is met with resistance from his team, who all have different ideas about what they are trying to accomplish with the communications budget, so they are not using objectives to plan or make decisions. Which of the following statements characterizes the reason for resistance from Jaden's team? A) They recognize the value of specific objectives for their integrated marketing communications program. B) They disagree as to what the specific objectives should be. C) They want to increase emphasis on data-driven marketing spending. D) They believe in behavioral targeting. E) They believe mobile spending is tactical, not strategic.

32)

Before setting objectives for advertising and promotion, an organization should A) conduct a situation analysis to identify marketing and promotional issues facing the

firm. B) develop its media plan and allocate the budget to each media. C) evaluate the effectiveness of the advertising and promotional strategies. D) conduct test marketing to check the effectiveness of the marketing strategies developed for the current products and services. E) set its advertising and promotional budgets.

33)

Which of the following statements is true of marketing objectives?

Version 1

A) The only aim of a firm's marketing objectives revolves around buying the right media at the right price. B) They are usually defined in terms of specific outcomes such as sales volume, market share, profits, or return on investment. C) They are stated only in a company's communication plan. D) They are statements of what various aspects of the IMC program will accomplish and how a message will be delivered to the target audience. E) The only aim of a firm's marketing objective is to communicate information or a selling message about a product or service to the target audience.

34) Which of the following statements best describes the relationship between marketing and communications objectives? A) Marketing objectives and communications objectives are synonymous. B) Marketing objectives evolve from communications objectives. C) Communications objectives are derived from marketing objectives. D) Communications objectives can be developed before the development of marketing objectives. E) Both communications and marketing objectives are defined only in terms of the reach of a promotional strategy.

35)

To be effective, marketing objectives need to be A) realistic and attainable. B) erudite and challenging. C) philosophical and fungible. D) unquantifiable. E) elaborate.

36) Many marketing managers prefer sales-oriented objectives for advertising because they believe that

Version 1

A) the reason a company spends money on advertising and promotion is to sell its products or service. B) the objective of advertising and other promotional mix elements is usually to communicate information or a selling message about a product or service. C) the primary role of an IMC program is to communicate. D) objectives should be based on the achievement of communication objectives. E) they must provide relevant information and create favorable predispositions toward the brand before purchase behavior will occur.

37) According to a recent study by Webmarketing 123 of both business-to-business (B2B) and business-to-consumer (B2C) marketers, while 87 percent of B2B marketers used social media, only ________ claimed they were able to measure ROI. A) 7 percent B) 17 percent C) 25 percent D) 27 percent E) 35 percent

38) The concept of advertising expenditures producing long-term rather than immediate results is known as the A) carryover effect. B) communication effect. C) low-involvement effect. D) halo effect. E) mirror-image effect.

39)

The carryover effect

Version 1

A) has no impact on sales objectives. B) has no effect on the relationship between advertising and sales. C) encourages the use of nonspecific objectives. D) is particularly apparent with mature, low-priced, and frequently purchased products. E) helps in determining the precise relationship between advertising and sales.

40) Which of the following problems is a manager most likely to face if he or she uses sales as a measure of advertising effectiveness? A) Sales results offer little guidance or direction to those responsible for planning and developing the advertising program. B) There is a short, often immeasurable, time period between when advertising is run and when sales actually occur. C) Sales results are affected by no marketing-mix variable other than price and promotion. D) No internal-environmental variables have any significant influence on sales results. E) Sales are generally not considered a good indicator for an IMC program.

41) For which of the following would an advertiser be most likely to use a sales-oriented objective? A) a direct-response ad for a record album B) a commercial for a new type of electric-powered automobile C) a political announcement D) an antidrug public announcement E) a commercial comparing two telecommunication giants

42)

Direct-response advertisers generally set objectives and measure success in terms of

Version 1

A) brand awareness. B) brand attitudes. C) purchase intentions of the target audience. D) sales response generated by an ad. E) brand equity.

43)

Sales-oriented objectives are appropriate for A) all online-marketing strategies. B) retail advertising promoting special events. C) products that have been introduced in highly volatile markets. D) any advertising campaign aimed at maintaining brand awareness. E) bait-and-switch marketing campaigns.

44)

Which of the following is at the base of the communication effects pyramid? A) awareness B) preference C) trial D) purchase E) repurchase

45) While moving from the base to the top of the communication effects pyramid, which of the following comes just before repurchase of a product? A) awareness B) comprehension C) trial D) liking E) knowledge

Version 1

46) While moving from the base to the top of the communication effects pyramid, which of the following comes just before trial of a product? A) knowledge B) preference C) repurchase D) awareness E) comprehension

47)

Managers who use the communications effects pyramid to set objectives believe that

A) lower-level objectives such as purchase and reuse form the foundation of the communications program. B) the foundation of the communications program is set by accomplishing lower-level objectives such as awareness, knowledge, and comprehension. C) advertising and promotion should first accomplish lower-level objectives such as trial and purchase. D) advertising and promotion should first accomplish higher-order objectives, such as trial and purchase, and then create awareness and brand knowledge. E) advertising and promotion cannot accomplish lower-order objectives.

48)

Which of the following is at the top of the communication effects pyramid? A) awareness B) knowledge C) liking D) preference E) repurchase

49) Encouraging current buyers of Spirit, an energy drink, to drink more of the beverage would be an example of a ________ objective.

Version 1

A) sales-oriented B) repositioning C) product development D) public relations E) diversification

50)

Which of the following statements is true of communications objectives?

A) It is difficult to translate sales goals into communications objectives. B) It is always easy to determine the relationship between communications objectives and sales performance. C) Communications objectives cannot serve as operational guidelines to the planning, execution, and evaluation of promotional programs. D) All marketing and advertising managers accept communications objectives. E) Precise formulas are to be followed when translating sales goals into specific communications objectives.

51) Which of the following is at the base of the GfK International purchase funnel that is used as a diagnostic model of consumer decision making? A) awareness B) purchase C) familiarity D) consideration E) imagery

52) Which of the following is at the top of the GfK International purchase funnel that is used as a diagnostic model of consumer decision making?

Version 1

A) awareness B) imagery C) consideration D) shopping E) model intention

53) With respect to the stages in Russell Colley's hierarchical model of the communication process, the ________ stage deals with developing an understanding of what the product is and what it will do for the consumer. A) conviction B) comprehension C) awareness D) action E) screening

54) The ________ stage in Russell Colley's hierarchical model of the communication process deals with informing consumers of the existence of the brand or company. A) conviction B) screening C) comprehension D) action E) awareness

55) The ________ stage in Russell Colley's hierarchical model of the communication process deals with getting the consumer to purchase the product.

Version 1

A) action B) conviction C) screening D) comprehension E) awareness

56)

Which of the following statements is true of communications objectives?

A) When setting objectives using the communications effect pyramid, the last step to reach is trial. B) Sales goals cannot be translated into communications objectives. C) Marketing and advertising managers don't usually rely on experience and intuition when setting communications goals. D) Communications objectives are the criteria used in the DAGMAR approach to setting advertising goals. E) Communications objectives are used particularly when the advertiser seeks an immediate response.

57)

DAGMAR is A) a model for setting advertising goals. B) a philosophy of consumer behavior. C) a method of setting sales objectives. D) a tool used to measure financial assets. E) an attitude measurement device.

58) ________ is an approach to setting advertising goals and objectives which states that communication effects are the logical basis for advertising goals and objectives against which success or failure should be measured.

Version 1

A) SOSTAC B) The hierarchy of effects model C) The BCG matrix D) The Ansoff matrix E) DAGMAR

59)

According to DAGMAR, the basic function of advertising is to A) create sales. B) communicate. C) increase market share. D) eliminate competition. E) change consumer behavior.

60) Under the DAGMAR model, a ________ can be performed by, and attributed to, advertising rather than to a combination of marketing factors. A) human resources task B) financial task C) communications task D) marketing task E) product production task

61) According to the criteria outlined in DAGMAR, which of the following makes the best quantitative communications objective?

Version 1

A) "Increase product users to 40 percent of the total market." B) "Double the production budget, hire more assembly workers, and double the production speed in one year." C) "Increase the number of customers mentioning the brand name when asked for brand preference from 40 percent to 50 percent in one year." D) "Increase awareness of the brand in one year." E) "Increase sales revenue by 10 percent."

62) According to DAGMAR, advertising objectives should be written in measurable terms that specify A) a communications task, a target market, a benchmark starting point, a time period, and the degree of change sought. B) a budget, a message strategy, a media plan, and the degree of carryover effect desired. C) the reach, frequency, and point of wearout for the advertising messages. D) the purchase motives, demographic composition, and buying habits of the target market. E) sales potentials, market share, return on investment, and budget forecasts.

63) According to the DAGMAR model, which of the following is a characteristic of a good objective? A) elaborative in nature B) specifies the target audience C) avoids specifying a time period D) specifies the current market share E) is based only on sales results

64) An airline company set the following objective for its new advertising campaign: "To increase the percentage of consumers who know our fares are lower than the competitors' to 75 percent over the next six months." Using the criteria outlined by the DAGMAR approach to setting objectives, identify what is wrong with this objective.

Version 1

A) It is not a concrete statement of what message the airline wants to communicate. B) It does not contain a benchmark starting point and the degree of change sought. C) It does not specify a specific time period for accomplishing the objective. D) It does not specify a well-defined target audience. E) It fails to utilize the IMC process.

65) Jeremiah asked his team to determine what communications tasks needed to be done and what communications functions should be used, and to what extent. He was asking his team to use a(n) ________ approach to IMC. A) zero-based communications planning B) outside-in planning C) inside-out planning D) spiral planning E) social consumer planning

66) Determining a target market's present level of awareness and knowledge of, and liking for, a product often requires ________ measures. A) benchmark B) sales interval C) secondary D) frequency E) reach

67) Before beginning its new advertising campaign, Capital Bank conducted a study to determine its clients' levels of awareness and knowledge of the bank and its services, as well as their perceptions of the bank's image. This was done to

Version 1

A) communicate advertising goals. B) communicate tasks. C) establish benchmark measures. D) communicate DAGMAR objectives. E) establish marketing research goals.

68) For which of the following advertising communication tasks should the specified time period be the longest? A) creating brand awareness B) increasing brand awareness levels C) creating knowledge of a brand attribute D) increasing knowledge levels of a brand attribute E) repositioning a brand

69)

The DAGMAR approach to setting objectives has

A) a negligible effect on the advertising planning process. B) focused advertisers' attention on the value of using communications objectives rather than sales objectives. C) never been criticized because it focuses on the hierarchy of effects model. D) increased the degree of subjectivity used in the selection of objectives toward which planners' efforts should be directed. E) been successful because it is easy to implement.

70)

DAGMAR MOD II was developed to alleviate problems with A) the response hierarchy used in the original DAGMAR model. B) the costs of using DAGMAR. C) the fact that DAGMAR ignores sales results. D) setting benchmark measures. E) creating measurable communications objectives.

Version 1

71)

Which of the following is considered a major criticism of the DAGMAR approach?

A) its belief that the only relevant measure of advertising objectives is sales B) its focus on using sales-based objectives rather than communications-based objectives C) its inability to define what constitutes a good advertising objective D) its reliance on the hierarchy of effects model E) its lack of concern with the quantitative assessment of the impact on awareness

72) Robert is working in the advertising department of a large consumer-product company. He suggests that the company use the DAGMAR approach for setting advertising goals. Which of the following statements is Robert likely to hear as an argument against the use of the DAGMAR approach? A) Sales-oriented goals should be the measure of advertising effectiveness rather than communications objectives. B) The DAGMAR approach is too creative and leads to difficulty in understanding. C) DAGMAR can be quite expensive due to research costs and is, therefore, not suitable for large companies. D) DAGMAR is too concerned with quantitative assessment of a campaign's impact on awareness. E) DAGMAR is appropriate only in the case of direct-response advertising.

73) Creative executives from the advertising industry might oppose the DAGMAR approach to setting objectives because it A) puts too much emphasis on the quantitative assessment of an advertising campaign. B) requires that speculative presentations be created and used to set benchmark measures. C) is only successful if it develops a message that contributes to brand equity. D) does not provide any type of communications guidelines. E) is too concerned with qualitative assessments of an advertising campaign.

Version 1

74)

According to Professor Don Schultz, inside-out planning

A) focuses on what the marketer wants to say, when the marketer wants to say it, and the media the marketer wants to use. B) is another term for zero-based communications planning. C) starts with the customer and builds backward to the brand when developing an IMC program. D) is a method of implementing DAGMAR objectives. E) is used to forecast the validity of DAGMAR objectives.

75)

According to Professor Don Schultz, outside-in planning

76) ________ is an approach to integrated marketing communications planning that involves determining what tasks need to be done and which marketing communications planning functions should be used to accomplish them. A) The objective/task pyramid B) DAGMAR C) The BCG matrix D) Zero-based communications planning E) Refutation planning

77)

According to Duncan's zero-based marketing communications planning approach,

Version 1

A) advertising should always be the main tool for accomplishing marketing communications objectives. B) sales promotion is usually the best tool for accomplishing marketing communications objectives. C) big ideas for a promotional campaign are typically based on public relations, advertising, sales promotion, or media advertising. D) integrated marketing communications programs should lead with the promotional function that least effectively addresses a company's communication problem or opportunity. E) managers should focus on what the customer wants and work backward to the brand.

78) According to Don Schultz, in which type of communications planning process do the promotional planners study the various media customers and prospects use, when the marketer's messages might be most relevant to customers, and when customers are likely to be most receptive to the message? A) zero-based communications planning B) inside-out planning C) outside-in planning D) the carryover process E) the recency process

79) In the social consumer decision journey, ________ deals with designing the communications program. A) benchmarking B) monitoring C) amplification D) leading E) responding

80) In the social consumer decision journey, which of the following objectives is designed to take the consumer to long-term behavioral changes?

Version 1

A) respond B) amplify C) monitor D) lead E) benchmark

81) In the social consumer decision journey, which of the following objectives deals with marketers reacting to specific issues regarding the product or brand at a personal level? A) monitor B) respond C) benchmark D) lead E) amplify

82) In the social consumer decision journey, which of the following objectives involves the marketer being aware of what is being said online about the product or brand to gain insights into how it is being perceived in the marketplace and then responding accordingly? A) monitor B) benchmark C) lead D) respond E) amplify

83) According to the IMC planning model, the flow between communications analysis and budget determination is

Version 1

A) a two-way interaction. B) nonlinear. C) unidirectional. D) diagonal. E) top-down.

84) According to Robert Steiner, which of the following terms is synonymous with contribution margin? A) asset allocation B) net worth C) financial optimization D) marginal analysis E) capital margin

85)

In the case of the marginal-analysis approach, profits are shown to be a result of A) advertising expenditure minus sales. B) sales minus advertising expenditures. C) gross margin minus advertising expenditures. D) gross margin minus sales. E) net worth minus sales.

86) Which of the following statements describes an inherent weakness in the use of the marginal-analysis model for establishing an advertising budget?

Version 1

A) It is unsuitable as a basis for budgeting only in the case of direct-response advertising. B) It only considers environmental factors that affect the effectiveness of the promotional program. C) The budget is often set according to the FIFO method. D) The budget is determined by management solely on the basis of what is felt to be necessary. E) It assumes that sales are determined solely by advertising and promotion.

87) The two models that are commonly used to explain the relationship between advertising and sales are the A) concave-downward function and the S-shaped response function. B) S-shaped response function and the concave-upward function. C) marginal utility function and the S-shaped demand function. D) S-shaped demand function and the contribution margin function. E) concave-upward function and the S-shaped demand function.

88) According to the ________ model, the effects of advertising budgets follow the microeconomics law of diminishing returns. A) concave-upward B) S-shaped demand C) S-shaped response D) marginal utility E) concave-downward

89)

According to the concave-downward function

Version 1

A) the incremental value of advertising increases. B) creativity is the primary advertising function. C) advertising is unlikely to be effective as a short-term solution. D) as the amount of advertising increases, its incremental value decreases. E) the effects of advertising do not diminish quickly.

90) Which of the following companies increased advertising spending by $1 billion during 2010, at the height of the recession, with an emphasis on campaigns for Gillette Fusion ProGlide razors, Pantene shampoo, and the launch of Pampers Dry Max diapers? A) Procter and Gamble B) Kraft C) General Mills D) Kmart E) Unilever

91)

The concave-downward function model is based on A) the microeconomics law of diminishing returns. B) the economic law of supply and demand. C) price elasticity of demand quotients. D) the change in contribution margins as item price is changed. E) perceptual mapping results.

92) During the last recessionary period in the United States, ________ percent of marketers indicated they had plans to reduce their advertising budgets. A) 90 B) 77 C) 53 D) 20 E) 7

Version 1

93)

The S-shaped response function implies that

A) initial advertising expenditures will have little impact on sales. B) initial advertising expenditures will have major impact on sales. C) sales effects will follow the microeconomic law of diminishing returns. D) small advertising budgets have a high impact on sales when word of mouth is the only promotional tool used. E) small advertising budgets have a high impact on sales when public relations is the only promotional tool used.

94)

According to the concave-downward model,

A) the effects of advertising quickly begin to diminish. B) the carryover effect is especially true for low-priced, frequently purchased consumer products. C) sales decrease rapidly if the price is too high. D) initial outlays of the advertising budget have little impact on sales. E) sales are not directly related to the size of the advertising budget.

95)

The S-shaped response curve suggests that

A) advertising effectiveness will not be related to spending. B) extremely low advertising budgets will not work. C) advertising effectiveness will vary inversely with the spending levels. D) the carryover effect is especially true for low-priced, frequently purchased consumer products. E) sales and spending on advertising are not directly related.

96) Which of the following factors creates a positive relationship between advertising and sales?

Version 1

A) the market share of the company B) the corporate structure C) the basis for product differentiation D) the extent of selective retention E) the recruitment plans

97) According to the factors influencing advertising budgets, which of the following stages of the product life cycle negatively influences the advertising budget? A) introduction B) maturity C) growth D) reinvestment E) research

98) According to the factors influencing advertising budgets, which of the following stages of the product life cycle leads to a positive effect of advertising on sales? A) alteration B) maturity C) introduction D) decline E) harvesting

99)

Which of the following strategy factors leads to a positive effect of advertising on sales? A) hidden product qualities B) elasticity in demand C) long channels of distribution D) emotional buying motives E) inelastic product demand

Version 1

100) When higher-level executives determine the budget amounts to be allocated for each department's advertising expenditures, a ________ approach is being used. A) nominal group B) marginal contribution C) top-down D) Delphi E) focus group

101) The ________ method of budgeting is being employed when expenditure is allocated by an analysis of expenditure in areas such as production and operations, and the amount left over is considered to be the advertising budget. A) arbitrary allocation B) percentage of sales C) affordable D) return on investment E) competitive parity

102) According to the promotional budgeting approaches, which of the following is an example of a top-down approach? A) the razor and blades method B) the bricks and clicks method C) the competitive parity method D) the objective and task method E) the payout planning method

103) We know that the ________ method of budgeting is being employed when an experienced marketing manager responds to a new employee's question, "How was the ad budget established last year?" by saying, "The same way it's always been done; I just have an instinct about how much should be budgeted where."

Version 1

A) arbitrary allocation B) percentage of sales C) contribution margin D) return on investment E) competitive parity

104) Which top-down budgeting method is being employed when the budget is determined based on what is felt to be necessary? A) arbitrary allocation B) percentage of sales C) affordable method D) payout planning E) competitive parity

105)

Which of the following statements is true of the arbitrary allocation method? A) This method is not considered to be particularly weak. B) This method keeps ad spending within reasonable limits. C) This method uses a logical basis for determining the budgets. D) This method of budgeting is generally stable. E) This method has no obvious advantages.

106)

The most commonly used method of budget determination by large firms is the A) competitive parity method. B) objective and task method. C) percentage-of-sales method. D) arbitrary allocation method. E) affordable method.

Version 1

107) The ________ method of budgeting is being employed when expenditures are allocated by assigning a fixed amount of the unit product cost to promotion and multiplying this amount by the number of units sold. A) arbitrary allocation B) percentage-of-sales C) objective and task D) return on investment E) competitive parity

108) In the ________ method to budgeting, sales are projected for the coming year based on the marketing manager's estimates. A) competitive parity B) objective and task C) unit cost production D) straight-percentage E) arbitrary

109) Which of the following budgeting procedures would be used if a firm wanted a method that is simple to understand, easy to implement, financially safe, and keeps the spending within reasonable limits? A) competitive parity B) marginal analysis C) percentage of sales D) objective and task E) arbitrary

110)

Which of the following is true of the percentage-of-sales method?

Version 1

A) It is financially unsafe. B) It is tough to implement. C) It is simple and straightforward. D) It is synonymous with the arbitrary allocation method. E) It is synonymous with the affordable method.

111) Which of the following is a major problem associated with the percentage-of-sales method? A) It reverses the cause-and-effect relationship between advertising and sales. B) It is financially unsafe. C) It is extremely tough to implement. D) It is used only by firms that do not understand the role of advertising and promotions. E) It has no theoretical basis, and the budgetary amount is often set using a flat rate.

112) To set an advertising budget, a marketer of filing cabinets examines advertising-to-sales ratios published in trade magazines and then allocates a percentage of sales dollars to the advertising effort. Which two budgeting methods are being employed? A) competitive parity and percentage-of-sales methods B) competitive parity and payout planning methods C) payout planning and percentage-of-sales methods D) percentage-of-sales and objective and task methods E) payout planning and arbitrary allocation methods

113) The ________ budgetary allocation method is designed to promote stability and minimize marketing warfare as well as take advantage of the collective wisdom of the industry.

Version 1

A) ROI B) affordable C) percentage-of-sales D) competitive parity E) objective and task

114)

When using the competitive parity method of budgeting, the firm

A) matches its percentage-of-sales expenditures with those of others in the market/industry. B) spends as much as it can. C) allocates some portion of planned sales for the period to advertising. D) spends the same total amount as its major competitors spend. E) bases its advertising and promotion expenditures on sales.

115) Which of the following budgeting methods requires a marketing manager to use input from a clipping service? A) ROI method B) arbitrary allocation method C) percentage-of-sales method D) competitive parity method E) objective and task method

116) The ________ method of budgeting is being employed when expenditures are allocated based on the industry averages of advertising expenditures. The budget is set to maintain a level consistent with industry spending.

Version 1

A) arbitrary allocation B) percentage-of-sales C) objective and task D) return on investment E) competitive parity

117)

Which of the following is an advantage of the competitive parity method?

A) It makes use of the buildup approach to establishment of promotional budgets. B) It leads to stability in the marketplace by minimizing marketing warfare. C) It is based on the fact that advertising and promotions are designed to accomplish specific objectives by addressing certain problems and opportunities. D) It gives due recognition to the contributions of creative executions and/or media allocations. E) Under this method, the budget is driven by the objectives to be attained.

118) A disadvantage of the ________ method is its assumption that the programs of firms with similar promotional expenditures will be equally effective. A) return on investment B) affordable C) competitive parity D) objective and task E) payout planning

119) In the ________ method of budget determination, advertising is considered an investment, similar to plant and equipment.

Version 1

A) payout planning B) objective and task C) ROI budgeting D) competitive parity E) percentage-of-sales

120)

Top-down budgeting methods are commonly used because of A) their effectiveness. B) the upper management's desire for control. C) the growing availability of computer simulations. D) the ease with which a manager can assess the impact of sales on ROI. E) their quantitative nature.

121) Which of the following allocation methods makes use of a buildup approach to setting budgets? A) percentage-of-sales B) arbitrary allocation C) competitive parity D) objective and task E) affordable

122) Defining the communications goals to be accomplished and estimating the costs associated with the performance of the necessary strategies and activities are steps in the ________ method of budgeting. A) competitive parity B) payout planning C) return on capital D) return on investment E) objective and task

Version 1

123)

The first task in the objective and task method of budgeting is to A) conduct a system analysis. B) create an organizational budget. C) isolate advertising objectives. D) determine what tasks need to be accomplished. E) reevaluate objectives.

124) According to James O. Peckham, which of the following statements provides a good rule of thumb for a company setting the advertising budget for a new product? A) Its advertising budget should be twice the desired market share. B) Its advertising budget should be equal to that of the largest market shareholder in the product category. C) Its advertising budget should be as much as the firm can afford. D) Its advertising budget should be 10 percent greater than the average budget planned for the entire payout period. E) Its advertising budget should be less than that needed to maintain the desired market share.

125)

The objective and task method is most difficult to use when

A) the product to be promoted is intangible and in the maturity stage of its product lifecycle. B) the product to be promoted is in the decline stage of its product lifecycle. C) the product to be promoted is a cash cow. D) the product to be promoted is new to the market. E) the product is typically tied to after-sales service.

126) A(n) ________ is a method for allocating budgets that is designed to determine the investment value of the advertising appropriation.

Version 1

A) payout plan B) instant rebate C) profit chart D) beat-sheet E) incentive program

127) As a tool for budget allocation, multiple regression analysis is most often employed in budget models using A) computer simulations. B) competitive parity. C) arbitrary allocations. D) percentage of sales. E) downward curves.

128)

Which of the following is a quantitative model used to budget advertising expenditures? A) ROI budgeting model B) competitive parity model C) computer simulation model D) arbitrary allocation model E) percentage-of-sales model

129)

As a result of economies of scale, smaller advertisers A) are likely to enjoy more favorable advertising time and space than large advertisers. B) have declining average costs of production. C) get higher advertising rates than large advertisers. D) can maintain advertising expenditure shares that are smaller than their market shares. E) can accrue the advantages of advertising several products jointly.

Version 1

130) As a result of ________, large advertisers can maintain advertising expenditure shares that are smaller than their market shares because they get lower advertising rates and accrue the advantages of advertising several products jointly. A) economies of scale B) differential advertising advantages C) competitive parity D) a concave-downward response E) multiple advertising channels

131)

As a result of economies of scale, large advertisers

A) are likely to enjoy more favorable advertising time and space than smaller advertisers. B) get lower advertising rates than smaller advertisers. C) accrue the disadvantages of advertising several products jointly. D) have higher average costs of production. E) must spend more money on advertising to realize a better return.

132) Forrest, the CMA of Acme Widgets Corp., sets the spending limit for his teams and requires all spending to stay within the promotional budget. What type of budgeting is being used by Widgets Corp.? A) bottom-up budgeting B) top-down budgeting C) the affordable method of budgeting D) the arbitrary allocation method of budgeting E) the percentage-of-sales method of budgeting

Version 1

Answer Key Test name: Chap 07_12e 1) TRUE A weakness in attempting to use sales as a direct measure of response to advertising is that various situational factors may have an effect. Products characterized as large-dollar purchases and those in the maturity or decline stages of the product would be less likely to benefit. 2) FALSE In top-down approaches, budgetary amount is established usually at an executive level and then the monies are passed down to the various departments. These budgets are essentially predetermined and have no true theoretical basis. 3) FALSE The arbitrary allocation approach has no obvious advantages. No systematic thinking has occurred, no objectives have been budgeted for, and the concept and purpose of advertising and promotion have been largely ignored. 4) TRUE In the competitive parity method, managers establish budget amounts by matching the competition's percentage-of-sales expenditures. The argument is that setting budgets in this fashion takes advantage of the collective wisdom of the industry. 5) FALSE

Version 1

The major advantage of the objective and task method is that the budget is driven by the objectives to be attained. The managers closest to the marketing effort will have specific strategies and input into the budgetsetting process. 6) E One characteristic of good objectives is that they are measurable; they specify a method and criteria for determining how well the promotional program is working. By setting specific and meaningful objectives, the promotional planner provides a measure(s) that can be used to evaluate the effectiveness of the marketing communications program. 7) B Meaningful objectives can also be a useful guide for decision making. Promotional planners are often faced with a number of strategic and tactical options in terms of choosing creative options, selecting media, and allocating the budget among various elements of the promotional mix. Choices should be made based on how well a particular strategy matches the firm’s promotional objectives. 8) D Promotional spending represents an investment of a firm's resources that requires an economic justification. Managers generally compare investment options on a common financial basis, such as return on investment (ROI). 9) E Good marketing objectives are quantifiable, realistic, and attainable. They delineate the target market and note the time frame for accomplishing the goal. 10) B

Version 1

Some marketers recognize the problems associated with sales-oriented objectives. They recognize that the primary role of an IMC program is to communicate, and that planning should be based on communications objectives. 11) D Advertising may create awareness, interest, and/or favorable attitudes toward a brand, but these feelings will not result in an actual purchase until the consumer enters the market for the product, which may occur later. 12) C The initial stages, at the base of the pyramid, are easier to accomplish than those toward the top, such as trial and repurchase or regular use. Thus, the percentage of prospective customers will decline as they move up the pyramid (or down the funnel). 13) C Not all marketing and advertising managers accept communications objectives; they say that it is too difficult to translate a sales goal into a specific communications objective. But at some point, a sales goal must be transformed into a communications objective. If the marketing plan for an established brand has an objective of increasing sales by 10 percent, the promotional planner will eventually have to think in terms of the message that will be communicated to the target audience to achieve this. 14) A

Version 1

It is time to split the funnel, with the top focusing on awareness, but once customers become aware, they are moved to the bottom half where monies should be allocated to conversion strategies. At that point marketers can focus on delivering the right offers at the right time on the right platform and to the right audience. Essentially, one-to-one marketing replaces mass marketing. 15) D Under the DAGMAR approach, an advertising goal involves a communications task that is specific and measurable. A communications task, as opposed to a marketing task, can be performed by, and attributed to, advertising rather than to a combination of several marketing factors. 16) D Good advertising objectives should be stated in terms of concrete and measurable communications tasks, specify a target audience, indicate a benchmark starting point and the degree of change sought, and specify a time period for accomplishing the objective(s). 17) C People who argue that the only relevant measure of advertising objectives is sales object to DAGMAR. They have little tolerance for ad campaigns that achieve communications objectives but fail to increase sales. A communications task is based on a hierarchical model of the communication process with four stages, awareness—making the consumer aware of the existence of the brand or company, comprehension—developing an understanding of what the product is and what it will do for the consumer, conviction—developing a mental disposition in the consumer to buy the product, action—getting the consumer to purchase the product. 18) E Version 1

Inside-out planning focuses on what the marketer wants to say, when s/he wants to say it, what the marketer believe is important, and what media the marketer wants to use. On the other hand, outside-in planning starts from the consumer. 19) C Inside-out planning process begins with the marketer. It focuses on what the marketer wants to say, when the marketer wants to say it, and about things the marketer believes are important. An outside-in planning process for IMC starts with the customer and builds backward to the brand. 20) D While the social consumer decision journey may differ from traditional response hierarchies, it is also similar in that it envisions going through stages in the purchase decision. Like the traditional model, marketers need to take specific marketing actions to help the consumer along through the process. The social consumer decision journey depicts the objectives that marketers need to accomplish at each stage, to monitor, respond, amplify, and lead the consumer. 21) E In the social consumer decision journey, the marketer must continuously monitor to know what is being said online about the product or brand to gain insights as to how it is being perceived in the marketplace and then respond accordingly. 22) D The final objective is lead. It is designed to take the consumers to longterm behavioral changes. 23) B

Version 1

In the IMC planning model, flow of the processes is unidirectional, while the flow between the communications analysis and budget determination is a two-way interaction. What this means is that while establishing objectives is an important part of the planning process, the limitations of the budget are important too. 24) C Most managers treat the communications budget as an expense rather than an investment. As a result, when times get tough, the advertising and promotional budget is the first to be cut—even though there is strong evidence that exactly the opposite should occur. 25) C There is strong, consistent evidence that cutting back on advertising can hurt sales during and after a recession. 26) A As advertising/promotional expenditures increase, sales and gross margins also increase to a point, but then they level off. Profits are shown to be a result of the gross margin minus advertising expenditures. Using this theory to establish its budget, a firm would continue to spend advertising/promotional dollars as long as the marginal revenues created by these expenditures exceeded the incremental advertising/promotional costs. 27) B The effects of advertising budgets follow the microeconomic law of diminishing returns. As the amount of advertising increases, its incremental value decreases. The logic is that those with the greatest potential to buy will likely act on the first (or earliest) exposures, while those less likely to buy are not likely to change as a result of the advertising. Version 1

28) A An important reason for setting specific objectives is that they provide a benchmark against which the success or failure of the promotional campaign can be measured. Without specific objectives, it is extremely difficult to determine what the firm's advertising and promotion efforts accomplished. 29) C In the above example, we can tell Arden that his task could be made easier by setting specific communication objectives. An important reason for setting specific objectives is that they provide a benchmark against which the success or failure of the promotional campaign can be measured. By setting specific and meaningful objectives, the promotional planner provides a measure(s) that can be used to evaluate the effectiveness of the marketing communications program. 30) A By setting specific and meaningful objectives, the promotional planner provides a measure(s) that can be used to evaluate the effectiveness of the marketing communications program. 31) B One of the reasons companies fail to set objectives that can be used for planning and decision making is the people at the companies do not agree about the objectives. 32) A Integrated marketing communications objectives should be based on a thorough situation analysis that identifies the marketing and promotional issues facing the company or a brand. The situation analysis is the foundation on which marketing objectives are determined and the marketing plan is developed. Version 1

33) B Marketing objectives are generally stated in the firm's marketing plan and are statements of what is to be accomplished by the overall marketing program within a given time period. Marketing objectives are usually defined in terms of specific, measurable outcomes such as sales volume, market share, profits, or return on investment. 34) C Managers must be able to translate general marketing goals into communications goals and specific promotional objectives. Sometimes companies do not have a formal marketing plan, and the information needed may not be readily available. In this case, the promotional planner must attempt to gather as much information as possible about the product and its markets from sources both inside and outside the company. 35) A Good marketing objectives are quantifiable; they delineate the target market and note the time frame for accomplishing the goal (often one year). To be effective, objectives must also be realistic and attainable. 36) A To many managers, the only meaningful objective for their promotional program is sales. They take the position that the basic reason a firm spends money on advertising and promotion is to sell its product or service. 37) B Only 17 percent of B2B marketers who used social media were able to measure its ROI. 38) A

Version 1

Many experts recognize that advertising has a lagged or carryover effect; monies spent on advertising do not necessarily have an immediate impact on sales. Advertising may create awareness, interest, and/or favorable attitudes toward a brand, but these feelings will not result in an actual purchase until the consumer enters the market for the product, which may occur later. 39) D A review of econometric studies that examined the duration of cumulative advertising effects found that for mature, frequently purchased, low-priced products, advertising's effect on sales lasts up to nine months. Models have been developed to account for the carryover effect of advertising and to help determine the long-term effect of advertising on sales. The carryover effect adds to the difficulty of determining the precise relationship between advertising and sales. 40) A One problem with sales objectives is that they offer little guidance to those responsible for planning and developing the promotional program. The creative and media people working on the account need some direction as to the nature of the advertising message the company hopes to communicate, the intended audience, and the particular effect or response sought. 41) A In the above scenario, an advertiser would most likely use a salesoriented objective for a record album's direct-response ad. Directresponse advertising is one type of advertising that evaluates its effectiveness on the basis of sales. Certain types of promotion efforts are direct action in nature; they attempt to induce an immediate behavioral response from the prospective customer. A major objective of most sales promotion programs is to generate short-term increases in sales. Version 1

42) D Direct-response advertising is one type of advertising that evaluates its effectiveness on the basis of sales. The direct-response advertiser generally sets objectives and measures success in terms of the sales response generated by the ad. 43) B Retail advertising, which accounts for a significant percentage of all advertising expenditures, is one area where the advertiser often seeks an immediate response, particularly when sales or special events are being promoted. 44) A Awareness is at the base of the communications pyramid. The initial stages, at the base of the pyramid, are easier to accomplish than those toward the top, such as trial and repurchase or regular use. Thus, the percentage of prospective customers will decline as they move up the pyramid. 45) C While moving from the base to the top of the communication effects pyramid, trial comes just before repurchase of a product. The initial stages, at the base of the pyramid, are easier to accomplish than those toward the top, such as trial and repurchase or regular use. Thus, the percentage of prospective customers will decline as they move up the pyramid. 46) B

Version 1

While moving from the base to the top of the communication effects pyramid, preference comes just before trial of a product. The initial stages, at the base of the pyramid, are easier to accomplish than those toward the top, such as trial and repurchase or regular use. Thus, the percentage of prospective customers will decline as they move up the pyramid. 47) B Advertising and promotion perform communications tasks in the same way that a pyramid is built, by first accomplishing lower-level objectives such as awareness and knowledge or comprehension. 48) E Repurchase is at the top of the communication effects pyramid. The initial stages, at the base of the pyramid, are easier to accomplish than those toward the top, such as trial and repurchase or regular use. Thus, the percentage of prospective customers will decline as they move up the pyramid. 49) A The above scenario is an example of a sales-oriented objective. Salesoriented objectives include: (1) increasing the percentage of consumers in the target market who associate specific features, benefits, or advantages with our brand, (2) encouraging current users of the product to use it more frequently or in more situations, etc. 50) A Not all marketing and advertising managers accept communications objectives; some say it is too difficult to translate a sales goal into a specific communications objective. But at some point, a sales goal must be transformed into a communications objective. 51) B Version 1

Purchase is at the base of the GfK International purchase funnel that is used as a diagnostic model of consumer decision making. 52) A Awareness is at the top of the GfK International purchase funnel that is used as a diagnostic model of consumer decision making. 53) B Colley proposed that the communications task be based on a hierarchical model of the communication process with four stages. With respect to the stages in Russell Colley's hierarchical model of the communication process, the comprehension stage deals with developing an understanding of what the product is and what it will do for the consumer. 54) E Colley proposed that the communications task be based on a hierarchical model of the communication process with four stages. The awareness stage deals with making the consumer aware of the existence of the brand or company. 55) A Colley proposed that the communications task be based on a hierarchical model of the communication process with four stages. With respect to the stages in Russell Colley's hierarchical model of the communication process, the action stage deals with getting the consumer to purchase the product. 56) D Communications objectives are the criteria used in the DAGMAR approach to setting advertising goals and objectives, which has become one of the most influential approaches to the advertising planning process. Version 1

57) A Colley developed the DAGMAR model for setting advertising objectives and measuring the results of an ad campaign. The major thesis of this model is that communications effects are the logical basis for advertising goals and objectives against which success or failure should be measured. 58) E The major thesis of the DAGMAR model is that communications effects are the logical basis for advertising goals and objectives against which success or failure should be measured. 59) B The major thesis of the DAGMAR model is that communications effects are the logical basis for advertising goals and objectives against which success or failure should be measured. 60) C Under the DAGMAR approach, an advertising goal involves a communications task that is specific and measurable. A communications task, as opposed to a marketing task, can be performed by, and attributed to, advertising rather than to a combination of several marketing factors. 61) C Increasing the number of customers mentioning the brand name when asked for brand preference from 40 percent to 50 percent in one year is the best example of a quantitative communications objective. Russell Colley, the founder of DAGMAR, argued that advertising objectives should be stated in terms of concrete and measurable communications tasks, specify a target audience, indicate a benchmark starting point and the degree of change sought, and specify a time period for accomplishing the objective(s). Version 1

62) A Russell Colley, the founder of DAGMAR, argued that advertising objectives should be stated in terms of concrete and measurable communications tasks, specify a target audience, indicate a benchmark starting point and the degree of change sought, and specify a time period for accomplishing the objective(s). 63) B Russell Colley, the founder of DAGMAR, argued that advertising objectives should be stated in terms of concrete and measurable communications tasks, specify a target audience, indicate a benchmark starting point and the degree of change sought, and specify a time period for accomplishing the objective(s). 64) B Colley argued that advertising objectives should be stated in terms of concrete and measurable communications tasks, specify a target audience, indicate a benchmark starting point and the degree of change sought, and specify a time period for accomplishing the objective(s). In the above scenario, the objective does not contain a benchmark starting point and the degree of change sought. 65) A Zero-based communications planning focuses on the task to be done and searches for the best ideas and media to accomplish it. 66) A Determining the target market's present position regarding the various response stages requires benchmark measures. 67) C

Version 1

In the above scenario, Capital Bank was trying to establish benchmark measures. Determining the target market's present position regarding the various response stages requires benchmark measures. It often involves conducting a market research study to determine prevailing levels of the response hierarchy. 68) E Awareness levels for a brand can be created or increased fairly quickly through an intensive media schedule of widespread, repetitive advertising to the target audience. Repositioning of a product requires a change in consumers' perceptions and takes much more time. 69) B DAGMAR focused advertisers' attention on the value of using communications-based rather than sales-based objectives to measure advertising effectiveness and encouraged the measurement of stages in the response hierarchy to assess a campaign's impact. 70) A A major criticism of the DAGMAR approach is its reliance on the hierarchy of effects model. DAGMAR MOD II recognizes that the appropriate response model depends on the situation and emphasizes identifying the sequence of decision-making steps that apply in a buying situation. 71) D A major criticism of the DAGMAR approach is its reliance on the hierarchy of effects model. The fact that consumers do not always go through this sequence of communications effects before making a purchase has been recognized, and alternative response models have been developed. 72) D Version 1

In the above scenario, Robert is likely to hear that DAGMAR is too quantitative for most managers to understand. Many creative personnel think the DAGMAR approach is too concerned with quantitative assessment of a campaign's impact on awareness, brand-name recall, or specific persuasion measures. The emphasis is on passing the numbers test rather than developing a message that is truly creative and contributes to brand equity. 73) A Many creative personnel think the DAGMAR approach is too concerned with quantitative assessment of a campaign's impact on awareness, brand-name recall, or specific persuasion measures. The emphasis is on passing the numbers test rather than developing a message that is truly creative and contributes to brand equity. 74) A According to Professor Don Schultz, inside-out planning "focuses on what the marketer wants to say, when the marketer wants to say it, things the marketer believes are important about his or her brand, and in the media forms the marketer wants to use." 75) C Schultz advocates an outside-in planning process for IMC that starts with the customer and builds backward to the brand. This means that promotional planners study the various media customers and prospects use, when the marketer's messages might be most relevant to customers, and when they are likely to be most receptive to the message. 76) D

Version 1

Zero-based communications planning involves determining what tasks need to be done and which marketing communications functions should be used and to what extent. This approach focuses on the task to be done and searches for the best ideas and media to accomplish it. 77) C The zero-based communications planning approach focuses on the task to be done and searches for the best ideas and media to accomplish it. The promotional planner should determine what role various sales promotion techniques, publicity and public relations, direct marketing, the Internet, and personal selling will play in the overall marketing program. 78) C Don Schultz advocates an outside-in planning process for IMC that starts with the customer and builds backward to the brand. This means that promotional planners study the various media customers and prospects use, when the marketer's messages might be most relevant to customers, and when they are likely to be most receptive to the message. 79) C In the social consumer decision journey, amplification deals with designing the communications program—particularly as it relates to social media—to foster engagement and sharing, as well as loyalty. The objective of amplifying is to get consumers more involved in the brand, extending the experience the brand has to offer, and have them communicate their positive experiences to others in the social network. 80) D

Version 1

With respect to objectives and strategies in the social consumer decision journey, the final objective, lead, is designed to take the consumer to long-term behavioral changes. At the early stages of the process, it may simply include creating more brand awareness. Later in the process, lead may be designed to create buzz or promote time-sensitive issues like sales or promotions. 81) B With respect to the objectives and strategies in the social consumer decision journey, the second objective, respond, deals with marketers responding to specific issues at a personal level. Responses may be positive in nature (customer service or sales leads) or (more likely) be part of crisis management, dealing with negative issues regarding the product or brand. 82) A With respect to objectives and strategies in the social consumer decision journey, the first objective, monitor, deals with the marketer knowing what is being said online about the product or brand to gain insights as to how it is being perceived in the marketplace and then responding accordingly. This process, according to the model, must take place continuously. 83) A According to the IMC planning model, the flow between the communications analysis and budget determination is a two-way interaction. 84) D

Version 1

Contribution margin is the difference between the total revenue generated by a brand and its total variable costs. Robert Steiner says that marginal analysis and contribution margin are essentially synonymous terms. 85) C According to the concept of marginal analysis, as advertising/promotional expenditures increase, sales and gross margins also increase to a point, but then they level off. Profits are shown to be a result of the gross margin minus advertising expenditures. 86) E The marginal analysis approach assumes that sales are determined solely by advertising and promotion. However, it ignores the fact that environmental factors may also affect the promotional program, leading the marketing manager to assume the advertising was or was not effective when some other factor may have helped or hindered the accomplishment of the desired objectives. 87) A The relationship between advertising and sales has been the topic of much research and discussion designed to determine the shape of the response curve. Almost all advertisers subscribe to one of two models of the advertising/sales response function: the concave-downward function or the S-shaped response curve. 88) E According to the concave-downward function model, the effects of advertising budgets follow the microeconomic law of diminishing returns. That is, as the amount of advertising increases, its incremental value decreases. 89) D Version 1

According to the concave-downward function, the effects of advertising budgets follow the microeconomic law of diminishing returns. That is, as the amount of advertising increases, its incremental value decreases. 90) A Procter and Gamble's increase in advertising expenditures during the recession resulted in an increase of 4 share points in men's shaving, 0.5 point in shampoo, and an increase of 1.5 share points for Pampers across all marketing channels. 91) A According to the concave-downward function model, the effects of advertising budgets follow the microeconomic law of diminishing returns. That is, as the amount of advertising increases, its incremental value decreases. 92) B A downturn in the economy leads to spending cutbacks. Unfortunately, one of the first areas to feel the pain of these cutbacks is marketing— particularly advertising. Take the last recessionary period experienced in the United States as an example. In a survey conducted at that time by the Association of National Advertisers, a staggering 77 percent of marketers indicated that they had plans to reduce their advertising media budgets. 93) A As per the S-shaped response function, initial outlays of the advertising budget have little impact. After a certain budget level has been reached, advertising and promotional efforts begin to have an effect, as additional increments of expenditures result in increased sales. 94) A

Version 1

According to the concave-downward function model, the effects of advertising quickly begin to diminish. The logic is that those with the greatest potential to buy will likely act on the first (or earliest) exposures, while those less likely to buy are not likely to change as a result of the advertising. 95) B The S-shaped response model suggests a small advertising budget is likely to have no impact beyond the sales that may have been generated through other means such as word of mouth. 96) C The basis for product differentiation creates a positive relationship between advertising and sales. 97) B The product life cycle generally involves four stages which are introduction, growth, maturity, and decline. The maturity and decline stages of the product life cycle negatively influence the setting of the advertising budget. 98) C The product life cycle generally involves four stages: introduction, growth, maturity, and decline. The introductory and growth stages of the product life cycle positively influence the setting of the advertising budget. 99) C Long channels of distribution are one of the strategy factors that lead to a positive effect of advertising on sales. 100) C

Version 1

In case of top-down approaches, the budgetary amount is established (usually at an executive level) and then the monies are passed down to the various departments. These budgets are essentially predetermined and have no true theoretical basis. Top-down methods include the affordable method, arbitrary allocation, percentage of sales, competitive parity, and return on investment (ROI). 101) C In the affordable method, the firm determines the amount to be spent in various areas such as production and operations. Then it allocates what's left to advertising and promotion, considering this to be the amount it can afford. 102) C Top-down methods include the affordable method, arbitrary allocation, percentage of sales, competitive parity, and return on investment (ROI). 103) A The above scenario is an example of the arbitrary allocation method. It is a weaker method than the affordable method for establishing a budget; virtually no theoretical basis is considered and the budgetary amount is often set by fiat. That is, the budget is determined by management solely on the basis of what is felt to be necessary. 104) A A weaker method than the affordable method for establishing a budget is arbitrary allocation, in which virtually no theoretical basis is considered and the budgetary amount is often set by fiat. That is, the budget is determined by management solely on the basis of what is felt to be necessary. 105) E

Version 1

The arbitrary allocation approach has no obvious advantages. No systematic thinking has occurred, no objectives have been budgeted for, and the concept and purpose of advertising and promotion have been largely ignored. 106) C Perhaps the most commonly used method for budget setting (particularly in large firms) is the percentage-of-sales method, in which the advertising and promotions budget is based on sales of the product. 107) B In case of the percentage-of-sales method, management determines the budget amount by either (1) taking a percentage of the sales dollars or (2) assigning a fixed amount of the unit product cost to promotion and multiplying this amount by the number of units sold. 108) D In the straight-percentage method, sales are projected for the coming year based on the marketing manager's estimates. The budget is a percentage of these sales, often an industry standard percentage. 109) C Proponents of the percentage-of-sales method cite a number of advantages. It is financially safe and keeps ad spending within reasonable limits. The percentage-of-sales method is simple, straightforward, and easy to implement. 110) C Proponents of the percentage-of-sales method cite a number of advantages. It is financially safe and keeps ad spending within reasonable limits. The percentage-of-sales method is simple, straightforward, and easy to implement.

Version 1

111) A The percentage-of-sales method has some serious disadvantages; letting the level of sales determine the amount of advertising and promotions dollars to be spent reverses the cause-and-effect relationship between advertising and sales. 112) A The above scenario exemplifies the competitive parity and percentageof-sales methods. In the case of the percentage-of-sales method, management determines the budget amount by taking a percentage of the sales dollars. In the case of the competitive parity method, marketing managers set their advertising and promotions budgets on the basis of what their competitors allocate. 113) D In the competitive parity method, managers establish budget amounts by matching the competition's percentage-of-sales expenditures. The argument is that setting budgets in this fashion takes advantage of the collective wisdom of the industry. It also takes the competition into consideration, which leads to stability in the marketplace by minimizing marketing warfare. 114) A In the competitive parity method, managers establish budget amounts by matching the competition's percentage-of-sales expenditures. The argument is that setting budgets in this fashion takes advantage of the collective wisdom of the industry. 115) D

Version 1

In the case of the competitive parity method, smaller companies often use a clipping service, which clips competitors' ads from local print media, allowing the company to work backward to determine the cumulative costs of the ads placed. 116) E In the competitive parity method, managers establish budget amounts by matching the competition's percentage-of-sales expenditures. The argument is that setting budgets in this fashion takes advantage of the collective wisdom of the industry. 117) B The competitive parity method takes the competition into consideration, which leads to stability in the marketplace by minimizing marketing warfare. 118) C The competitive parity method has a number of disadvantages. For one, it ignores the fact that advertising and promotions are designed to accomplish specific objectives by addressing certain problems and opportunities. Second, it assumes that because firms have similar expenditures, their programs will be equally effective. 119) C In the ROI budgeting method, advertising and promotions are considered investments, like plant and equipment. 120) B Tradition and top management's desire for control are probably the major reasons why top-down methods continue to be popular. 121) D

Version 1

The objective and task method of budget setting uses a buildup approach consisting of three steps: (1) defining the communications objectives to be accomplished, (2) determining the specific strategies and tasks needed to attain them, and (3) estimating the costs associated with performance of these strategies and tasks. The total budget is based on the accumulation of these costs. 122) E The objective and task method of budget setting uses a buildup approach consisting of three steps: (1) defining the communications objectives to be accomplished, (2) determining the specific strategies and tasks needed to attain them, and (3) estimating the costs associated with performance of these strategies and tasks. 123) C The first step in the objective and task method of budget setting is to isolate the objectives. When the promotional planning model is presented, a company will have two sets of objectives to accomplish— the marketing objectives for the product and the communications objectives. After the former are established, the task involves determining what specific communications objectives will be designed to accomplish these goals. 124) A After studying more than 40 years of Nielsen figures, James O. Peckham estimated that the average share of advertising to sales ratio necessary to launch a new product successfully is approximately 1.5:2.0. This means that a new entry should be spending at approximately twice the desired market share. 125) D

Version 1

The objective and task method offers advantages over methods discussed earlier but is more difficult to implement when there is no track record for the product. 126) A To determine how much to spend, marketers often develop a payout plan that determines the investment value of the advertising and promotion appropriation. 127) A Computer simulation models involve statistical techniques such as multiple regression analysis to determine the relative contribution of the advertising budget to sales. 128) C Attempts to apply quantitative models to budgeting have met with limited success. For the most part, these methods employ computer simulation models involving statistical techniques such as multiple regression analysis to determine the relative contribution of the advertising budget to sales. 129) C Due to economies of scale, firms and/or brands maintaining a large share of the market have an advantage over smaller competitors and thus can spend less money on advertising and realize a better return. 130) A Larger advertisers can maintain advertising shares that are smaller than their market shares because they get better advertising rates, have declining average costs of production, and accrue the advantages of advertising several products jointly. These advantages are known as economies of scale.

Version 1

131) A Due to economies of scale, large advertisers are likely to enjoy more favorable time and space positions, cooperation of middle people, and favorable publicity. 132) B In top-down approaches, the budgetary amount is established at an executive level and monies are passed down to various departments.

Version 1

CHAPTER 8 TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) Those who judge the creativity of an ad in terms of its aesthetic value contend that creative ads can break through the competitive clutter and grab the consumer's attention. ⊚ ⊚

true false

2) Ads for products such as fashionable clothing, jewelry, and liquor often provide specific product information rather than relying on visual images to deliver their message. ⊚ ⊚

true false

Many creative people follow proven formulas when creating ads because they are safe. ⊚ ⊚

true false

4) Creativity is not the exclusive domain of those who work in the creative department of ad agencies. ⊚ ⊚

true false

Advertisement campaign plans are long term in nature. ⊚ ⊚

true false

6) The challenge of developing creative advertising that captures the attention of consumers has become greater with the spread of new media. ⊚ ⊚

Version 1

true false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 7) ________ refers to the extent to which the various elements of an ad are meaningful, useful, or valuable to the consumer. A) Divergence B) Relevance C) Originality D) Elaboration

8) According to the findings from Reinartz and Saffert’s research, ________ has a significant impact on sales. A) strategy B) creativity C) planning D) execution

9) According to Young's model of the creative process, which stage involves the process of gathering material and information through research? A) immersion B) digestion C) incubation D) illumination E) verification

10) According to Young's model of the creative process, which stage is defined as studying the idea to see if it still looks good then shaping the idea to practical usefulness?

Version 1

A) immersion B) digestion C) incubation D) illumination E) verification

11)

Providing creative people with general and product-specific information is called A) market research. B) qualitative research. C) general preplanning input. D) due diligence.

12)

A focus group is used in what type of research? A) quantitative B) detailed C) qualitative D) analytical

13)

A primary reason for creative people to leverage research is that it gives them A) more time to develop creative. B) a better sense of the target market. C) the opportunity to charge more. D) a better sense of the competition.

14)

Which stage of the creative process evaluates ideas?

Version 1

A) immersion B) digestion C) incubation D) illumination E) verification

15)

Which stage of the creative process includes putting problems out of the conscious mind? A) immersion B) digestion C) incubation D) illumination E) verification

16) What is the name for a document that outlines the key points of a campaign and establishes the communication protocols between the agency and the client? A) project brief B) advertising brief C) creative brief D) summary brief

17)

A product manager’s primary goal for an ad is to A) increase sales. B) increase awareness. C) win an award. D) disrupt.

18) What is the term for a short line that expresses the positioning and the message it is trying to deliver? Version 1

A) brand B) slogan C) tag line D) mark

19)

What term refers to something that the competition either cannot or does not offer? A) unique brand B) unique selling proposition C) unique messaging D) unique creative

20) A firm with multiple brands competing in the same market differentiates its products through A) branding. B) messaging. C) slogans. D) positioning.

21)

With respect to advertising messages, which statement best defines creative strategy?

A) It involves determining what the advertising message will say or communicate. B) It involves determining how much the advertising campaign will cost. C) It involves determining the number of creative personnel required for the advertising campaign. D) It deals with optimizing the budget for online advertising campaigns. E) It deals with avoiding factors that lead to divergence in advertising creativity.

22) Which of the following statements is true of creative tactics in relation to advertising messages? Version 1

A) They deal with avoiding the creation of animatics for testing a commercial. B) They involve determining how much the advertising campaign will cost. C) They involve determining how the message strategy will be executed. D) They deal with avoiding the factors which lead to divergence in advertising creativity. E) They involve determining what the advertising message will say or communicate.

23) With respect to sales uplift relative to average effectiveness, which of the following creativity combinations is the least effective? A) flexibility and artistic value B) flexibility and synthesis C) originality and synthesis D) elaboration and artistic value E) originality and elaboration

24) Which of the following statements is true of the use of creativity in an advertising campaign? A) Because most advertising is unique, creativity is not enough to break through the clutter. B) Creative advertising always has a positive impact on sales. C) Creative advertising that lacks flexibility and artistic value may have a greater impact on the target audience than advertising that is flexibile and artistic. D) The nature of advertising requires that everyone involved in the promotional planning process understand the creative strategy. E) The users of creative advertising must avoid using big ideas and unique selling propositions in their advertising campaigns.

25)

Which of the following statements about creative strategy and its execution is true?

Version 1

A) A good creative strategy and execution guarantees a brand will exceed its sales objectives. B) A good creative strategy never fails in reviving a declining brand. C) Ads that are highly creative may not increase sales of a brand. D) Companies have no trouble coming up with creative advertising that differentiates their brands from the competition. E) Good creative strategy cannot help a struggling brand regain its former prominence.

26)

Ads are often called A) animatics. B) heuristics. C) creative. D) art infusions. E) mnemonics.

27)

The people who develop ads and commercials are known as A) mnemonics. B) animatics. C) copy makers. D) creative types. E) media planners.

28) Which of the following statements is true according to the Hirschman study of creative people in advertising?

Version 1

A) They view ads as promotional tools whose primary purpose is to communicate favorable impressions to the marketplace. B) They are more risk-averse than brand managers. C) They prefer making conservative commercials. D) They believe a commercial should be evaluated in terms of whether it fulfills the client's marketing and communication objectives. E) They want to maximize the impact of the advertising message.

29) A study by Elizabeth Hirschman that examined the perceptions of individuals involved in the creation and production of television commercials found that A) product managers view advertising from an aesthetic perspective. B) account executives view advertising as a promotional tool whose primary purpose is to communicate favorable impressions about a brand. C) art directors and copywriters are more risk-averse than brand managers. D) brand managers prefer creative commercials that take risks. E) art directors and copywriters evaluate advertising on the basis of how well it fulfills predefined communications objectives.

30) Based on the findings of the study conducted by Elizabeth Hirschman, which of the following individuals is most likely to be risk-averse and prefer commercials that focus on the product rather than creative impact? A) brand managers B) art directors C) copywriters D) commercial directors E) illustrators

31) Which of the following statements supports the reason why a marketer might want to emphasize creativity in the development of an advertising campaign?

Version 1

A) Creative advertisements can avoid novelty in terms of divergence. B) Creative advertising can break through the clutter and make an impression on buyers. C) Creative advertisements always favor divergence over relevance. D) Creative advertising is effective even if it is irrelevant to the target audience. E) Creative advertising helps in winning awards, which always leads to an increase in sales.

32) ________ is the ability to generate fresh, unique, and appropriate ideas that can be used as solutions to communication problems. A) Brand stretching B) Brand parity C) Visual merchandising D) Product differentiation E) Advertising creativity

33)

Which of the following best defines fluency? A) the ability to detect problems associated with the creative strategies B) the extent to which an ad contains elements that are novel and different C) the ability to generate a large number of ideas around a creative idea D) the degree to which various elements of the ad are valuable to the customer E) the ability to select the appropriate target market for a particular product or service

34) Who among the following was responsible for identifying the major factors that could account for the ways divergence can be achieved in advertising? A) Leo Burnett B) Robert Smith C) Rosser Reeves D) David Ogilvy E) Sigmund Freud

Version 1

35) Which of the following is one of the five major factors identified by Robert Smith that refers to ads that contain different ideas or switch from one perspective to another? A) elaboration B) synthesis C) flexibility D) relevance E) artistic value

36) Which of the following is one of the five major factors identified by Robert Smith that refers to ads that contain unexpected details or finish and extend basic ideas so they become more intricate, complicated, or sophisticated? A) originality B) flexibility C) elaboration D) artistic value E) synthesis

37) With respect to the five factors identified by Robert Smith and his colleagues that account for the ways divergence can be achieved in advertising, the factor that deals with ads that contain attractive shapes and colors is referred to as A) synthesis. B) illumination. C) originality. D) artistic value. E) flexibility.

38) Which of the following is a major determinant of creativity that reflects the degree to which various elements of an ad are meaningful, useful, or valuable to the consumer?

Version 1

A) divergence B) delusion C) relevance D) illumination E) risk aversion

39)

According to Robert Smith, the two ways in which relevance can be achieved are A) ad-to-brand relevance and brand-to-ad relevance. B) ad-to-producer relevance and brand-to producer relevance. C) ad-to-producer relevance and brand-to-consumer relevance. D) ad-to-consumer relevance and brand-to-producer relevance. E) ad-to-consumer relevance and brand-to-consumer relevance.

40) Pluto Inc., a cosmetics company, hired a well-known movie star to appear in its advertisements. The company hoped that using a celebrity would capture the attention and interest of consumers. In this scenario, the ad illustrates the application of A) ad-to-consumer relevance. B) brand-to-consumer relevance. C) brand-to-producer relevance. D) inherent drama strategy. E) bait-and-switch advertising strategy.

41) The "Got Milk?" campaign, which has been running for nearly two decades, was developed to achieve ________, or the ability to generate a variety of messages around a creative idea.

Version 1

A) artistic value B) divergence C) fluency D) synthesis E) originality

42)

Which of the following statements about the relevance of ads is true?

A) Brand-to-consumer relevance refers to situations in which the ad contains execution elements that are meaningful to consumers. B) Ad-to-consumer relevance refers to situations in which the advertised brand of a product or service is of personal interest to consumers. C) Brand-to-consumer relevance could be achieved through making use of celebrities with whom consumers identify. D) Relevance reflects the degree to which an advertisement provides information or an image that is pertinent to the brand. E) Relevance is best defined as the extent to which an ad contains elements that are novel, different, or unusual.

43) Reinartz and Saffert found which of the following five variables to have the greatest positive impact on sales? A) originality B) flexibility C) elaboration D) synthesis E) artistic value

44) Reinartz and Saffert, among other researchers, found that what factor has the greatest positive impact on sales?

Version 1

A) relevance B) synthesis C) creativity D) flexibility

45)

The job of the creative team is challenging because A) advertisers and clients typically opt for mundane ad formulas. B) every marketing situation is unique. C) of the primacy effect in advertising. D) of the recency effect in broadcast advertising. E) advertising campaigns are generally considered expendable.

46)

The rationalists of creative advertising argue that A) all award-winning creative campaigns definitely lead to sales. B) the only purpose of advertising is to make an emotional connection with customers. C) advertising must sell the product or service. D) all commercials must contain an element of inherent drama. E) advertising should break through the clutter by focusing on logos and products.

47)

The proponents of creative advertising argue that

A) the more information in the ad, the more effective the ad is. B) the only purpose of advertising is to sell the product. C) advertising should be designed to make consumers buy products that they do not want or need. D) advertising should be designed to create an emotional bond between consumers and the brand or company. E) advertising should break through the clutter by focusing on logos and products.

Version 1

48)

The proponents of creative advertisements are also called "________" A) suits. B) heuristics. C) poets. D) mnemonics. E) illustrators.

49)

The rationalists of creative advertisements are also called "________" A) operators. B) suits. C) mnemonics. D) heuristics. E) poets.

50)

Advertising creative personnel tend to be A) more concrete and formalized than intuitive when solving a problem. B) highly conventional in their approach. C) more intuitive than logical. D) highly structured and organized individuals. E) no different from people with business executive backgrounds.

51)

According to James Webb Young, the production of creative advertising ideas A) is a random process that cannot be taught. B) must avoid bolting a brand to a consumer's clinching benefit. C) must be primarily consumer generated. D) is a definitive process that can be learned and controlled. E) has as many different routes as there are different forms of creativity.

Version 1

52)

The five steps in the creative process as designed by James Webb Young include A) preparation, brainstorming, growth, reality check, and verification. B) immersion, testing, illumination, creation, and verification. C) immersion, digestion, incubation, illumination, and verification. D) preparation, incubation, immersion, illumination, and reality check. E) immersion, brainstorming, incubation, creation, and reality check.

53) According to the work of sociologist Graham Wallas, the four-step approach to the creative process includes A) preparation, incubation, illumination, and verification. B) immersion, brainstorming, creation, and reality check. C) preparation, illumination, creation, and verification. D) preparation, immersion, creation, and verification. E) immersion, incubation, illumination, and creation.

54) According to the creative process outlined by Graham Wallas, which of the following stages deals with getting away from the problem and letting ideas develop? A) incubation B) illumination C) verification D) preparation E) dramatization

55) According to the creative process outlined by Graham Wallas, which of the following stages deals with gathering background information needed to solve the problem through research and study?

Version 1

A) dramatization B) verification C) preparation D) incubation E) illumination

56) According to the creative process outlined by Graham Wallas, which of the following stages deals with seeing the light or solution? A) verification B) incubation C) dramatization D) preparation E) illumination

57) Models of the creative process do not say much about how this information will be synthesized and used by creatives because A) this part of the process is unique to the individual. B) the processes described are more applicable to organizations. C) financial considerations are considered more important than the creative process. D) the models disagree over the final part of the process. E) creatives don't agree that creativity is a process.

58) The ________ step of Young's creative process model deals with taking the information, working it over, and wrestling with it in the mind. A) reality B) incubation C) digestion D) verification E) immersion

Version 1

59)

The ________ stage of Young's creative process model is also called the reality stage. A) incubation B) illumination C) verification D) digestion E) preparation

60) According to the creative process outlined by Graham Wallas, which of the following stages deals with refining and polishing the idea and seeing if it is an appropriate solution? A) dramatization B) illumination C) verification D) incubation E) preparation

61) Which of the following is the first step of James Webb Young's model of the creative process? A) illumination B) digestion C) incubation D) immersion E) reality

62)

According to Young's version of the stages in the creative process, what is the final step?

Version 1

A) incubation B) dramatization C) illumination D) reality E) digestion

63) According to Young's model of the creative process, the ________ step deals with gathering raw material and information through background research and getting absorbed in the problem. A) problem detection B) illumination C) immersion D) reality E) incubation

64) The ________ step of Young's creative process model deals with putting the problems out of one's conscious mind and turning the information over to the subconscious to do the work. A) problem detection B) illumination C) immersion D) reality E) incubation

65)

One reason why marketers do not pre-test messaging for digital ads is A) the low cost of digital ads. B) the low return on investment of digital ads. C) rapid turnaround for digital ads. D) data-driven ads don’t require pre-testing.

Version 1

66)

An idea develops during the ________ step of Young's creative process model. A) reality B) illumination C) verification D) originality E) immersion

67) The ________ step of Young's creative process model deals with studying the idea to see if it still looks good or solves the problem; then shaping the idea to practical usefulness. A) immersion B) incubation C) digestion D) preparation E) verification

68) CL Inc., a manufacturer of maternity clothes for businesswomen, wishes to launch a new advertising campaign. In order to obtain a better idea about the clothes worn by pregnant women, the creative team visits obstetricians' offices and maternity shops at the mall to gain some information. These visits are most likely a part of the ________ step of the creative process as outlined by Graham Wallas. A) preparation B) verification C) revision D) illumination E) incubation

Version 1

69) Leon is the creative director for an agency that has just been hired by a manufacturer of golfing equipment to create a new advertising campaign for the company's titanium clubs. Before developing any creative ideas, Leon reads some golfing magazines and spends time talking to friends and co-workers who play golf. These activities are part of the ________ step of the creative process outlined by Graham Wallas. A) preparation B) incubation C) illumination D) verification E) revision

70) Emma has been hired to promote a membership-only genealogical website, which provides demographic information on over one billion people. She has gathered all the relevant environmental information and has studied the project closely. Meanwhile, she is also assigned another project. She decides to work on the new project and put the genealogical project completely out of her conscious mind, so that ideas can materialize in the meanwhile. Emma is in the ________ step of the creative process outlined by Graham Wallas. A) preparation B) revision C) incubation D) illumination E) verification

71) For weeks, Amy had been trying to come up with a creative approach to advertise light bulbs. One morning, a great idea for a creative light bulb advertising campaign just seemed to pop into her head. She picked up a note pad and wrote down her thoughts. In terms of the creative process outlined by Graham Wallas, Amy experienced the ________ step.

Version 1

A) immersion B) verification C) revision D) illumination E) incubation

72) Why are models of the creative process valuable to those working in the creative area of advertising? A) The models enable the client to see what he or she is paying for. B) The models provide an organized approach to an advertising problem. C) The models provide an unstructured approach to an advertising problem. D) The models are usually developed based on the primacy effect. E) The models create heuristics needed to determine whether or not an ad will accomplish its goals.

73) The last step in the creative process models developed by James Webb Young and Graham Wallas is A) resolution. B) illumination. C) verification. D) market evaluation. E) confirmation.

74) ________ is a process that involves conducting research and gathering all relevant information about a client's product or service, brand, and consumers in the target audience.

Version 1

A) Media planning B) Copywriting C) Account planning D) Storyboarding E) Production scheduling

75) When Julianna uses books, periodicals, trade publications, research studies, and ads from her client's competitors to assist in the preparation, incubation, and illumination stages, she is using A) general preplanning input. B) copywriting. C) account planning. D) storyboarding. E) production scheduling.

76)

Account planning plays an important role during creative strategy development by

A) making sure the client knows the agency has the final say in deciding the strategy. B) driving the process from the customers' point of view. C) confirming the compliance of all advertisements with local, state, and FTC regulations. D) determining whether the account should be accepted. E) forecasting demand for the product category.

77)

Which of the following statements about account planning is true?

Version 1

A) Account planners conduct only quantitative research. B) Account planners work with the client as well as other agency personnel. C) Account planners conduct only qualitative research. D) With account planning, the agency takes a permanent leadership role in the development of creative strategy. E) The knowledge gained during account planning can only be used during the planning period because of its proprietary nature.

78) Tiffany is the creative director of an ad agency. The agency has just been hired to develop a promotional campaign for a company that produces exercise videos for women. As part of her preparation for developing a creative strategy, Tiffany reviews some studies conducted on the overall fitness and exercise market, as well as a report on the changing roles of women in society. This information is part of A) general preplanning input. B) focus group studies. C) problem detection studies. D) illumination studies. E) ethnographic research input.

79) Jonathan is a creative director at Williams & Greene Inc., an advertising agency. He spends an hour every morning reading publications like Advertising Age, The Wall Street Journal, and Adweek to gain a better understanding of what is happening in the world of marketing and advertising. These sources can be characterized as A) general preplanning input. B) focus group studies. C) verification research. D) brainstorming. E) problem detection research.

80) Which of the following best assists an organization in the preparation, incubation, and illumination stages of the creative process?

Version 1

A) portfolio test B) message communication study C) product-specific preplanning input D) viewer reaction profile E) bait-and-switch technique

81)

Lifestyle research, attitude studies, and perceptual mapping are examples of A) general preplanning inputs. B) product/service-specific preplanning inputs. C) verification studies. D) revision studies. E) demographic studies for B2B clients.

82) Richard participated in a study conducted by an advertising agency. During his interview, he was asked to gauge the services provided by a regional airline on the basis of his experiences and what others had told him. The interviewer asked Richard specific questions about the food, the seating arrangements, the ease with which he entered and exited the plane, and the service provided by the flight attendants. The advertising agency used the research data to develop the creative strategy. In this scenario, Richard provided the agency with A) product-specific preplanning inputs. B) switch marketing inputs. C) secondary internal data. D) secondary external data. E) buzz marketing research.

83) ________ is a research technique whereby consumers are asked to generate an exhaustive list of things that bother them or difficulties they encounter when using a product or service.

Version 1

A) Bait-and-switch modeling B) Market positioning C) Perceptual mapping D) Problem detection E) Market profiling

84) Douglas took a survey on dill pickles. He was asked questions about what he liked and disliked about dill pickles, when and where he usually ate the pickles, and to list and rate all the brands of dill pickles that he could recall. He was asked his opinion on packaging and on the characteristic taste of the pickles, and what he disliked about all these aspects. The survey was conducted by an ad agency to help develop a creative strategy for dill pickles. If there were several people surveyed besides Douglas, we can assume he was participating in a(n) ________ study. A) incomplete comparison B) general preplanning input C) perceptual mapping D) problem detection E) market profiling

85)

Psychographic studies are used by advertising agencies to

A) coordinate the work between the client and the agency personnel such as the creative team and media specialists. B) provide creative personnel with a better understanding of general consumer trends. C) determine how to allocate the advertising budget for the campaign. D) understand specific problems clients have previously encountered while advertising various products and services. E) determine the number of creative personnel required to carry out the advertising campaign conveniently and effortlessly.

Version 1

86) Leslie, creative director for Visionary Ad Agency, is observing a focus group for fourwheel-drive SUVs. Before developing the creative brief, Leslie also conducts attitude studies, positioning studies, and lifestyle research studies. In this scenario, Leslie is gathering A) general preplanning input. B) vendor lock-in data. C) product-specific preplanning input. D) channel stuffing reports. E) secondary internal data.

87) ________ is a research method in which approximately 10 to 12 consumers from the target market are led through a discussion regarding a particular topic. A) Regression analysis B) Focus group C) Guided search D) Market mapping E) Out-group study

88)

Which of the following statements about focus groups is true?

A) Focus groups are a qualitative research technique. B) Focus groups avoid discussions on types of ad appeals to be used. C) Focus groups involve observing consumers in their natural environment. D) Focus groups are ineffective in evaluating the viability of different creative approaches. E) Focus groups involve observing the natural habits of a particular group of consumers without their knowledge.

89) In-depth interviews with consumers, focus groups, and observational studies of how consumers conduct their daily lives as consumers are all examples of

Version 1

A) quantitative research techniques. B) qualitative research techniques. C) problem detection studies. D) conjectural research. E) secondary internal research.

90) Which statement correctly states a similarity between focus group studies and ethnographic research? A) Both are qualitative research techniques. B) Both are research techniques conducted without the consumer's knowledge. C) Both involve observing consumers in their natural environment. D) Both are very easy to administer. E) Both techniques cost a negligible amount of money.

91) ________ research involves anthropologists or other types of trained researchers observing consumers in their natural environments. A) Neuromarketing B) Out-group C) Questionnaire D) Focus group E) Ethnographic

92) Daniel and Ronald were social researchers who monitored websites and chat rooms and hung out in cyber cafés to observe how Internet users act. The users they observed considered the Internet a tool to augment traditional forms of communication. Daniel and Ronald conducted ________ research.

Version 1

A) e-marketing B) ethnographic C) neuromarketing D) focus group E) out-group

93) Buffy is engaging product users to create an exhaustive list of things that bother them when they use the product and how often those situations arise, then asking the consumers to rate the list in order of importance and asking which brands are associated with the items on the list. She is using an approach called A) problem detection. B) ethnographic. C) focus groups. D) storyboarding. E) crowdsourcing.

94)

Which of the following correctly states a limitation of focus group studies? A) In these studies, strong personalities can often wield undue influence. B) These studies cost more than ethnographic research. C) These studies are more difficult to administer than ethnographic research. D) These studies do not offer the benefits of qualitative research. E) In these studies, consumers are observed in their natural environment.

95)

Which of the following correctly states a limitation of ethnographic research? A) These studies are generally considered inapplicable to everyday situations. B) In these studies, strong personalities can often wield undue influence. C) In these studies, participants never recognize their behavior patterns and motivations. D) These studies cost more to conduct than focus group studies. E) These studies avoid observing consumers in their natural environment.

Version 1

96) Which of the following correctly differentiates an ethnographic study from a focus group study? A) Ethnographic research is a quantitative research technique, whereas focus group studies are qualitative. B) Ethnographic research is difficult to administer, whereas focus group studies are easy to administer. C) Ethnographic research studies are inexpensive, whereas conducting focus group studies requires a huge investment. D) Focus group studies involve observing consumers in their natural environment, whereas ethnographic research involves observing consumers in controlled settings. E) Focus group studies are quantitative research techniques, whereas ethnographic research is qualitative.

97) The verification and revision stage of the creative process evaluates ideas generated during the ________ stage and gives them final expression. A) preparation B) dramatization C) illumination D) incubation E) digestion

98) Techniques such as message communication studies and portfolio tests are studies conducted during the ________ stage of the creative process. A) illumination B) incubation C) preparation D) digestion E) verification

Version 1

99) At what stage of the creative process are various ideas evaluated and refined before actually being used? A) preparation B) incubation C) illumination D) verification E) verdict

100) At what stage of the creative process would consumers in the target audience be asked to evaluate storyboards and animatics? A) preparation B) incubation C) verification D) illumination E) verdict

101) A(n) ________ is a series of drawings used to present the visual plan or layout of a commercial along with a description of the audio for each scene. A) animatic B) mnemonic C) storyboard D) heuristic E) trailer

102) At the ________ stage of the creative process, the creative team attempts to find the best creative approach or execution style before moving ahead with the campaign themes and going into actual production of the ad.

Version 1

A) incubation B) dramatization C) verification D) preparation E) digestion

103) To make a creative layout of a commercial more realistic, a(n) ________ may be produced by making a videotape of the storyboard along with an audio soundtrack. A) animatic B) heuristic C) mnemonic D) copy platform E) snipe

104) The Visionaries, an advertising agency in Boston, is testing a creative idea for a new commercial before moving ahead with the production. To make the test more realistic, it wants to test both the visual layout of the commercial as well as the audio of the message. In which of the following forms should the commercial be tested? A) storyboard B) animatic C) snipe D) mnemonic E) heuristic

105)

Advertising campaign themes

Version 1

A) create a foundation for the incubation process of creative ad development. B) set the 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 usually developed with the intention of being used for a short period of time.

106) Which of the following stages of the creative process includes a highly formal and extensive pretesting of the ad before a final decision on the ad is made? A) incubation B) illumination C) preparation D) verification E) digestion

107) Which of the four pillars in Y&R Group's BrandAsset Valuator is associated with Brand Strength? A) esteem B) knowledge C) relevance D) verification E) digestion

108)

Work plan is another name given to the A) campaign theme. B) creative brief. C) advertising message. D) creative channel. E) account planning process.

Version 1

109) In an advertising agency, who among the following is usually responsible for preparing the creative brief? A) account manager B) media buying director C) art director D) illustrator E) media planner

110)

Which of the following client representatives ultimately approves the creative brief? A) art director B) financial manager C) auditor D) brand manager E) media planner

111)

Which of the following is one of the critical components of the creative brief? A) formulation of the training program for the creative team B) calculation of the advertising budget C) management of the media buying operations D) development of the major selling idea E) management of one or more client groups

112) The part of the Tacori jewelry creative brief that specifies that communications will support a specific product's goal of becoming 50 percent of Tacori's business by establishing it as a more accessible, fashion jewelry line would appear in the ________ section of the creative brief.

Version 1

A) problem or issue B) advertising and communications objectives C) target audience D) major selling idea or key benefits E) creative strategy statement

113) John O'Toole describes the ________ as "that flash of insight that synthesizes the purpose of the strategy, joins the product benefit with consumer desire in a fresh, involving way, brings the subject to life, and makes the reader or audience stop, look, and listen." A) ad paradox B) epiphany C) heuristic D) big idea E) mnemonic

114) Leslie works for a local ad agency as an intern. The agency is hired to develop an advertising campaign for a chain of coffee shops and she is given the task of coming up with a "big idea." With reference to the above scenario, "big ideas" A) are impossible to develop as they are not applicable to retail chains. B) are only needed in advertising for consumer services. C) are typically not the bases for effective advertising campaigns. D) are only effective in business-to-business advertising. E) could become the bases of creative and successful advertising campaigns.

115) Bubble Inc., a chewing gum manufacturer, specifically targets children in its advertisements. In its latest advertisement, the company indicates that Bubble is the only chewing gum that lets you blow "massive" bubbles that won't stick to your face. This statement represents the brand's

Version 1

A) unique selling proposition. B) surrogate advertising strategy. C) unique selling language. D) intent scale translation. E) incomplete comparison.

116) Which of the following statements is true of the concept of the unique selling proposition (USP)? A) USP usually mirrors the concept of bait-and-switch advertising. B) The concept states that a product's attribute claim must be excluded from advertising. C) The concept of USP is applicable only for B2B advertising. D) USP must be emphasized through repetitive advertising. E) The concept of USP must be used only for C2C advertising.

117)

Which of the following statements is true of image advertising?

A) It is used most often when there are significant functional or performance differences among brands. B) It is often used when competing brands are difficult to differentiate on a functional or performance basis. C) Advertisers often use it when their products or services offer a unique attribute or benefit to consumers. D) It is most commonly used for business-to-business products. E) It concentrates on those functional features of a product that are unique and cannot be imitated by competitors.

118) Fly High Airlines, an Australian airline, rebranded itself by using a kangaroo wearing a hat in its logo. Since the kangaroo is a significant cultural symbol in Australia, the company hoped that associating itself with such a national icon would enhance its popularity. Subsequently, the company also launched an ad campaign for the Save the Kangaroo Foundation. In this scenario, Fly High Airlines was using

Version 1

A) bait-and-switch advertising. B) image advertising. C) buzz marketing. D) trojan horse advertising. E) guerilla marketing.

119) Bensons Inc., a retail store in Houston, launches an ad campaign featuring the interiors of its stores. The stores are shown to be lit by crystal chandeliers and feature several salespeople wearing tail coats. The ads also contain the slogan "Be treated like royalty, while you shop in comfort." The development of a strong, memorable "royal" identity by Bensons is an example of A) guerilla advertising. B) image advertising. C) drama advertising. D) bait-and-switch advertising. E) refutational appeal.

120) Who among the following popularized the idea of brand image in his book Confessions of an Advertising Man? A) John O' Toole B) Leo Burnett C) Sigmund Freud D) David Ogilvy E) Rosser Reeves

121) When an advertiser uses an ad that emphasizes psychological associations and attempts to wrap the consumer's perceptions into a tight concept or symbol, what type of advertising approach is being used?

Version 1

A) bait-and-switch advertising B) image advertising C) guerilla advertising D) visual merchandizing E) refutational appeal

122) Leo Burnett, founder of the Leo Burnett agency in Chicago, said “________ is often hard to find but it is always there, and once found it is the most interesting and believable of all advertising appeals.” A) image advertising B) inherent drama C) refutational appeal D) snob appeal E) primacy appeal

123) An approach to finding a major selling idea that uses consumer benefits as a foundation, with an emphasis on presenting these benefits in a theatrical way, is the ________ approach. A) card stacking B) buzz C) inherent drama D) testimonial E) bait-and-switch

124) An ad for a medication that helps people undergoing chemotherapy feel more energetic shows a grandfather sorrowfully wishing he could participate in his grandson's birthday party. Subsequently, the scene switches to the birthday party and shows the grandfather feeling energetic and vibrant after taking the medication. This ad is an example of

Version 1

A) bait-and-switch advertising. B) a snob appeal. C) the inherent drama approach. D) the WOM approach. E) a buzz appeal.

125) Jack Trout and Al Ries introduced ________ as the basis for advertising strategy and creative development in the early 1970s. A) inherent drama B) positioning C) neuromarketing D) buzz marketing E) creative brief

126) Jack Trout and Al Ries originally described ________ as the image consumers had of the brand in relation to competing brands in the product or service category. A) brandjacking B) gladvertising C) channel stuffing D) pricing E) positioning

127) According to Advertising Age, experts in creative advertising don't write books or espouse theories. They see advertising as A) an inherent drama working to offset the reality of social issues. B) an uplifting social force, as a way to inspire and entertain. C) the replacement for the 20th-century salesperson. D) publicity created through unique selling propositions. E) a cultural force redefining societal needs and wants.

Version 1

128) With the growth of integrated marketing communications, advertisers are being challenged to think beyond traditional mass media and develop creative advertising that A) offsets the weaknesses associated with storyboard ad design. B) provides opportunities for effective government oversight. C) centralizes American consumer values in a global marketplace. D) engages consumers and enters into a dialogue with them. E) minimizes the risk of offending technology-savvy consumers.

129) Which of the following is not one of the four best-known approaches for developing a major selling idea? A) using a unique selling proposition B) creating a brand image C) finding the inherent drama D) engaging in a dialogue E) positioning

130) When BMW communicates that its car is "the ultimate driving machine," which transcends and helps differentiate its entire product line, it is using the concept of ________ as a basis for advertising strategy. A) positioning B) inherent drama C) image D) sustainable competitive advantage E) unique selling proposition

Version 1

Answer Key Test name: Chap 08_12e 1) TRUE At one extreme are people who argue that advertising is creative only if it sells the product. At the other end of the continuum are those who judge the creativity of an ad in terms of its artistic or aesthetic value and originality. They contend creative ads can break through the competitive clutter, grab the consumer's attention, and have some impact. 2) FALSE Ads for many products such as fashionable clothing, jewelry, cosmetics, and liquor often rely on visual images to deliver their message rather than providing specific product information. However, these images are important to consumers in forming impressions and attitudes toward these brands and deciding whether to select one brand over another. 3) TRUE Many creative people follow proven formulas when creating ads because they are safe. Clients often feel uncomfortable with advertising that is too different. 4) TRUE Creativity is not the exclusive domain of those who work in the creative department of ad agencies. Integrated marketing communications requires creative thinking from everyone involved in the planning and execution of IMC programs. 5) FALSE

Version 1

Advertising campaign plans are short term in nature and, like marketing and IMC plans, are done on an annual basis. However, the campaign themes are usually developed with the intention of being used for a longer time period. 6) TRUE The challenge of developing creative advertising that captures the attention of consumers and impacts them has become even greater with the proliferation of new media. 7) B Divergence refers to the extent to which an ad contains elements that are novel, different, or unusual. Relevance reflects the degree to which the various elements of the ad are meaningful, useful, or valuable to the consumer. 8) B The "suits" or "rationalists" argue that advertising must sell the product or service, and that the more selling points or information in an ad, the better its chance of moving the consumer to purchase. 9) B Young's model of the creative process contains five steps. The stage of digestion involves taking the information gathered in the previous stage, working it over, and wrestling with it in the mind. 10) E Studying the idea to see if it still looks good or solves the problem and then shaping the idea to practical usefulness is part of the reality or verification stage of Young's creative process model. This is the last stage of the process. 11) C Version 1

Some useful general preplanning input concerns trends, developments, and happenings in the marketplace. Information is available from a variety of sources, including local, state, and federal governments, secondary research suppliers, and various industry trade associations, as well as advertising and media organizations. 12) C A focus group is a form of qualitative research. Qualitative research gathers data points from individuals or groups, rather than from secondary data sources such as the US Census. Advertisers leverage focus groups to gain a better sense of who the target market is, enabling them to better direct the messaging and creative in an ad. 13) B Generally, creative people are open to any research or information that will help them understand the client's target market better and assist in generating creative ideas. The advertising industry is recognizing the importance of using research to guide the creative process. 14) E The verification and revision stage of the creative process evaluates ideas generated during the illumination stage, rejects inappropriate ones, refines and polishes those that remain, and gives them final expression. Techniques used at this stage include directed focus groups to evaluate creative concepts, ideas, or themes; message communication studies; portfolio tests; and evaluation measures such as viewer reaction profiles. 15) C

Version 1

The verification and revision stage of the creative process evaluates ideas generated during the illumination stage, rejects inappropriate ones, refines and polishes those that remain, and gives them final expression. Techniques used at this stage include directed focus groups to evaluate creative concepts, ideas, or themes; message communication studies; portfolio tests; and evaluation measures such as viewer reaction profiles. 16) C The account representative or manager assigned to the account usually prepares the creative brief. In larger agencies, an individual from research or the strategic account planning department may write it. 17) A At one extreme are people who argue that advertising is creative only if it sells the product. At the other end of the continuum are those who judge the creativity of an ad in terms of its artistic or aesthetic value and originality. They contend creative ads can break through the competitive clutter, grab the consumer's attention, and have some impact. 18) B An advertising slogan should serve as a summation line that succinctly expresses the company or brand's positioning and the message it is trying to deliver to the target audience. 19) B The unique selling proposition (USP) must be one that the competition either cannot or does not offer. It must be unique either in the brand or in the claim. 20) D

Version 1

Positioning is often the basis of a firm's creative strategy when it has multiple brands competing in the same market. The company creates separate identities for each of the brands by positioning them differently and targeting a different group of consumers. 21) A One of the most important components of an integrated marketing communications program is the advertising message. Creative strategy involves determining what the advertising message will say or communicate. 22) C One of the most important components of an integrated marketing communications program is the advertising message. Creative tactics involve determining how the message strategy will be executed. 23) A Reinartz and Saffert's analysis of more than 400 German television ad campaigns across nine different consumer packaged-goods categories, which examined the impact of creativity on actual sales figures for the products, indicated that the creativity combination of flexibility and artistic value was the least effective, resulting in 99 point lower sales than average ad effectiveness. 24) D As creative strategy is often so crucial to the success of the firm's IMC effort, everyone involved in the promotional process should understand the creative strategy and tactics that underlie the development of advertising campaigns and messages, as well as the creative options available to the advertiser. 25) C

Version 1

Many companies have solid marketing and promotional plans and spend substantial amounts of money on advertising, yet have difficulty coming up with a creative campaign that will differentiate them from their competitors. However, just because an ad or commercial is creative or popular does not mean it will increase sales or revive a declining brand. Many ads have won awards for creativity but failed to increase sales. 26) C Creativity is probably one of the most commonly used terms in advertising. Ads are often called creative. The people who develop ads and commercials are known as creative types. 27) D Creativity is probably one of the most commonly used terms in advertising. Ads are often called creative. The people who develop ads and commercials are known as creative types. 28) E In her interviews, Hirschman also found that brand managers were much more risk-averse and wanted a more conservative commercial than the creative people, who wanted to maximize the impact of the message. 29) B Elizabeth Hirschman found that product managers and account executives view ads as promotional tools whose primary purpose is to communicate favorable impressions to the marketplace. 30) A In her interviews, Hirschman also found that brand managers were much more risk-averse and wanted a more conservative commercial than the creative people, who wanted to maximize the impact of the message. 31) B Version 1

What constitutes creativity in advertising is that which breaks through the clutter and makes an impression on the target audience. An ad often must be unique and entertaining. TV commercials and print ads that are well designed and executed and generate emotional responses can create positive feelings that are transferred to the product or service being advertised. 32) E Advertising creativity is the ability to generate fresh, unique, and appropriate or relevant ideas that can be used as solutions to communication problems. The two central determinants of creativity are often viewed in terms of divergence and relevance. 33) C Fluency refers to the ability to generate a large number of ideas around a creative idea. In some cases, the focus of the creative strategy may be to achieve fluency. 34) B Robert Smith and his colleagues identified five major factors that could account for the ways divergence can be achieved in advertising. Divergence refers to the extent to which an ad contains elements that are novel, different, or unusual. 35) C Divergence refers to the extent to which an ad contains elements that are novel, different, or unusual. Robert Smith and his colleagues have identified five major factors that could account for the ways divergence can be achieved in advertising. Flexibility refers to ads that contain different ideas or switch from one perspective to another. 36) C

Version 1

Divergence refers to the extent to which an ad contains elements that are novel, different, or unusual. Robert Smith and his colleagues have identified five major factors that could account for the ways divergence can be achieved in advertising. Elaboration refers to ads that contain unexpected details or finish and extend basic ideas so they become more intricate, complicated, or sophisticated. 37) D Divergence refers to the extent to which an ad contains elements that are novel, different, or unusual. Robert Smith and his colleagues have identified five major factors that could account for the ways divergence can be achieved in advertising. Artistic value refers to ads that contain artistic verbal impressions or attractive shapes and colors. 38) C The two major determinants of creativity are often viewed in terms of divergence and relevance. Relevance reflects the degree to which the various elements of the ad are meaningful, useful, or valuable to the consumer. 39) E Relevance reflects the degree to which the various elements of the ad are meaningful, useful, or valuable to the consumer. Smith et al. suggest that relevance can be achieved in two ways. They are ad-to-consumer relevance and brand-to-consumer relevance. 40) A

Version 1

The above scenario is an example of ad-to-consumer relevance. Ad-toconsumer relevance refers to situations where the ad contains execution elements that are meaningful to consumers. For example, advertisers may use celebrities whom consumers identify with, music that they like, or visual images and other execution techniques that capture their interest and attention. 41) C The California Milk Processor Board sought fluency, or the ability to generate a variety of messages around a creative idea. 42) D Relevance reflects the degree to which the various elements of the ad are meaningful, useful, or valuable to the consumer. Relevance or appropriateness can also be viewed in terms of the degree to which an advertisement provides information or an image that is pertinent to the brand. 43) C Although all of the creativity factors had a positive impact, elaboration was the most powerful followed by artistic value while synthesis was least important. 44) C The findings from Reinartz and Saffert’s research show that advertising creativity has a significant impact on sales and marketers need to pay close attention to creative elements of their ads. 45) B The job of the creative team is challenging because every marketing situation is different and each campaign or advertisement may require a different creative approach.

Version 1

46) C The "suits" or "rationalists" argue that advertising must sell the product or service, and that the more selling points or information in an ad, the better its chance of moving the consumer to purchase. 47) D The "poets" or proponents of creativity argue that advertising has to build an emotional bond between consumers and brands or companies that goes beyond product advertising. 48) C The proponents of creative advertisements are also called poets. They argue that advertising has to build an emotional bond between consumers and brands or companies that goes beyond product advertising. 49) B The rationalists of creative advertisements are also called suits. They argue that advertising must sell the product or service, and that the more selling points or information in an ad, the better its chance of moving the consumer to purchase. 50) C The educational background of creative personnel is often in nonbusiness areas such as art, literature, music, humanities, or journalism, so their interests and perspectives tend to differ from those of managers with a business education or background. Creative people tend to be more abstract and less structured, organized, or conventional in their approach to a problem, relying on intuition more often than logic. 51) D

Version 1

James Webb Young said, "The production of ideas is just as definite a process as the production of Fords; the production of ideas, too, runs an assembly line; in this production the mind follows an operative technique which can be learned and controlled; and that its effective use is just as much a matter of practice in the technique as is the effective use of any tool." 52) C Young's model of the creative process contains five steps. They are immersion, digestion, incubation, illumination, and verification. 53) A Young's process of creativity is similar to a four-step approach outlined much earlier by English sociologist Graham Wallas in his classic book The Art of Thought that includes preparation, incubation, illumination, and verification. 54) A With respect to the creative process outlined by Graham Wallas, the incubation stage deals with getting away from the problem and letting ideas develop. 55) C With respect to the creative process outlined by Graham Wallas, the preparation stage deals with gathering background information needed to solve the problem through research and study. 56) E With respect to the creative process outlined by Graham Wallas, the illumination stage deals with seeing the light or solution. 57) A

Version 1

These models do not say much about how this information will be synthesized and used by the creative specialist because this part of the process is unique to the individual. In many ways, it’s what sets apart the great creative minds and strategists in advertising. 58) C The digestion step of Young's creative process model deals with taking the information, working it over, and wrestling with it in the mind. 59) C The reality or verification stage involves studying the idea to see if it still looks good or solves the problem; then shaping the idea to practical usefulness. 60) C With respect to the creative process outlined by Graham Wallas, the verification stage deals with refining and polishing the idea and seeing if it is an appropriate solution. 61) D The five steps of James Web Young's model of the creative process are immersion, digestion, incubation., illumination, and reality or verification. 62) D With respect to Young's version of the stages in the creative process, reality or verification is considered the final step in the creative process. Verification deals with studying the idea to see if it still looks good or solves the problem; then shaping the idea to practical usefulness. 63) C Young's model of the creative process contains five steps. The first step, immersion, deals with gathering raw material and information through background research and immersing yourself in the problem. Version 1

64) E Young's model of the creative process contains five steps. The incubation stage deals with putting the problems out of your conscious mind and turning the information over to the subconscious to do the work. It is about getting away and letting ideas develop. 65) C Another reason for the lack of pretesting is the challenges associated with digital advertising such as the rapid turnaround time often needed for digital campaigns. Marketers want to move more quickly online which makes it difficult to spend the time required by traditional pretesting methods to test digital ads. 66) B The illumination stage is about seeing the light or the solution. The birth of an idea—the "Eureka! I have it!" phenomenon—occurs during the illumination stage. 67) E The verification step deals with studying the idea to see if it still looks good or solves the problem; then shaping the idea to practical usefulness. 68) A The above scenario is an example of the preparation step of the creative process outlined by Graham Wallas. The preparation step includes gathering of the background information needed to solve the problem through research and study. 69) A

Version 1

The above scenario is an example of the preparation step of the creative process outlined by Graham Wallas. The preparation step includes gathering of the background information needed to solve the problem through research and study. 70) C The above scenario is an example of the incubation step of the creative process outlined by Graham Wallas. The incubation process deals with putting the problems out of your conscious mind and turning the information over to the subconscious to do the work. 71) D The above scenario is an example of the illumination step of the creative process outlined by Graham Wallas. The illumination step deals with the birth of an idea—the "Eureka! I have it!" phenomenon. 72) B Models of the creative process are valuable to those working in the creative area of advertising, since they offer an organized way to approach an advertising problem. 73) C The last step in the creative process is verification. Verification deals with refining and polishing the idea and seeing if it is an appropriate solution. 74) C Account planning is a process that involves conducting research and gathering all relevant information about a client's product or service, brand, and consumers in the target audience. These days many agencies make use of account planning to facilitate the creative process. 75) A Version 1

General preplanning input comes from a variety of sources and helps advertising creative people learn about the client's business and who the client is trying to reach. 76) B Account planning plays an important role during creative strategy development by driving the process from the customers' point of view. Planners will work with the client as well as other agency personnel, such as the creative team and media specialists. 77) B Account planners work with the client as well as other agency personnel, such as the creative team and media specialists. They discuss how the knowledge and information they have gathered can be used in the development of the creative strategy as well as other aspects of the advertising campaign. 78) A The above scenario speaks about information which is part of general preplanning input. General preplanning input can include books, periodicals, trade publications, scholarly journals, pictures, and clipping services, which gather and organize magazine and newspaper articles on the product, the market, and the competition, including the latter's ads. This input can also come from research studies conducted by the client, the agency, the media, or other sources. 79) A

Version 1

The above scenario is an example of general preplanning input. General preplanning input can include books, periodicals, trade publications, scholarly journals, pictures, and clipping services, which gather and organize magazine and newspaper articles on the product, the market, and the competition, including the latter's ads. This input can also come from research studies conducted by the client, the agency, the media, or other sources. 80) C To assist in the preparation, incubation, and illumination stages, many agencies provide creative people with both general and product-specific preplanning input. 81) B Quantitative and qualitative consumer research such as attitude studies, market structure, and positioning studies such as perceptual mapping and lifestyle research, focus group interviews, and demographic and psychographic profiles of users of a particular product, service, or brand are examples of product-specific preplanning input. 82) A The above scenario is an example of product-specific preplanning input. Quantitative and qualitative consumer research such as attitude studies, market structure, and positioning studies such as perceptual mapping and lifestyle research, focus group interviews, and demographic and psychographic profiles of users of a particular product, service, or brand are examples of product specific preplanning input. 83) D The problem detection research technique involves asking consumers familiar with a product (or service) to generate an exhaustive list of things that bother them or problems they encounter when using it.

Version 1

84) D The above scenario is an example of problem detection study. Problem detection research technique involves asking consumers familiar with a product (or service) to generate an exhaustive list of things that bother them or problems they encounter when using it. 85) B Some agencies conduct psychographic studies annually and construct detailed psychographic or lifestyle profiles of product or service users. The information obtained from these is used to construct a psychographic profile of the target audiences for whom they are developing ads, as well as to gain insight into general consumer trends. 86) C In the above scenario Leslie is gathering product-specific preplanning input. Quantitative and qualitative consumer research such as attitude studies, market structure, and positioning studies such as perceptual mapping and lifestyle research, focus group interviews, and demographic and psychographic profiles of users of a particular product, service, or brand are examples of product-specific preplanning input. 87) B Focus groups are a research method whereby consumers (usually 10 to 12 people) from the target market are led through a discussion regarding a particular topic. Focus groups give insight into why and how consumers use a product or service, what is important to them in choosing a particular brand, what they like and don't like about various products or services, and any special needs they might have that aren't being satisfied. 88) A

Version 1

In addition to the various quantitative research studies, qualitative research techniques such as in-depth interviews or focus groups can provide the creative team with valuable insight in the early stages of the creative process. 89) B In-depth interviews with consumers, focus groups, and observational studies of how consumers conduct their daily lives as consumers are all examples of qualitative research techniques. Qualitative research techniques such as in-depth interviews or focus groups can provide the creative team with valuable insight at the early stages of the creative process. 90) A Both focus group and ethnographic research are qualitative research techniques. Focus groups are a research method whereby consumers (usually 10 to 12 people) from the target market are led through a discussion regarding a particular topic. Ethnographic research involves observing consumers in their natural environment. 91) E One form of qualitative input that has become popular among advertising agencies is ethnographic research, which involves observing consumers in their natural environment. 92) B The above scenario is an example of ethnographic research. One form of qualitative input that has become popular among advertising agencies is ethnographic research, which involves observing consumers in their natural environment. 93) A

Version 1

Problem detection is a process for finding ideas around which creative strategies could be based. A problem detection study can provide valuable input for product improvements, reformulations, or new products. 94) A Many marketing and agency researchers prefer ethnographic research over the use of focus groups, as the latter technique has a number of limitations. Strong personalities can often wield undue influence in focus groups, and participants often will not admit, or may not even recognize, their behavior patterns and motivations. 95) D Many marketing and agency researchers prefer ethnographic research over the use of focus groups, as the latter technique has a number of limitations. Strong personalities can often wield undue influence in focus groups, and participants often will not admit, or may not even recognize, their behavior patterns and motivations. However, ethnographic studies can cost more to conduct and are more difficult to administer. 96) B Many marketing and agency researchers prefer ethnographic research over the use of focus groups, as the latter technique has a number of limitations. Strong personalities can often wield undue influence in focus groups, and participants often will not admit, or may not even recognize, their behavior patterns and motivations. However, ethnographic studies can cost more to conduct and are more difficult to administer. 97) C

Version 1

The verification and revision stage of the creative process evaluates ideas generated during the illumination stage, rejects inappropriate ones, refines and polishes those that remain, and gives them final expression. 98) E Techniques used at the verification stage include directed focus groups to evaluate creative concepts, ideas, or themes; message communication studies; portfolio tests; and evaluation measures such as viewer reaction profiles. 99) D The verification and revision stage of the creative process evaluates ideas generated during the illumination stage, rejects inappropriate ones, refines and polishes those that remain, and gives them final expression. 100) C At the verification stage of the creative process, members of the target audience may be asked to evaluate rough creative layouts and to indicate what meaning they get from the ad, what they think of its execution, or how they react to a slogan or theme. The creative team can gain insight into how a TV commercial might communicate its message by having members of the target market evaluate the ad in storyboard form. 101) C A storyboard is a series of drawings used to present the visual plan or layout of a proposed commercial. It contains a series of sketches of key frames or scenes along with the copy or audio portion for each scene. 102) C At the verification stage of the creative process, the creative team is attempting to find the best creative approach or execution style before moving ahead with the campaign themes and going into actual production of the ad. Version 1

103) A To make the creative layout more realistic and easier to evaluate, the agency may produce an animatic, a videotape of the storyboard along with an audio soundtrack. Storyboards and animatics are useful for research purposes as well as for presenting the creative idea to other agency personnel or to the client for discussion and approval. 104) B In the above scenario, the commercial should be tested in the animatic form. Testing a commercial in storyboard form can be difficult because storyboards are too abstract for many consumers to understand. To make the creative layout more realistic and easier to evaluate, the agency may produce an animatic, a videotape of the storyboard along with an audio soundtrack. 105) B The advertising campaign sets the tone for the individual ads and other forms of marketing communications that will be used. 106) D At the verification stage of the creative process, the creative team is attempting to find the best creative approach or execution style before moving ahead with the campaign themes and going into actual production of the ad. The verification/revision process may include more formal, extensive pretesting of the ad before a final decision is made. 107) C Relevance and Energized Experimentation are the two pillars associated with brand strength in the BrandAsset Valuator. 108) B

Version 1

The written creative brief specifies the basic elements of the creative strategy. Different agencies may call this document a creative platform or work plan, creative blueprint, or creative contract. 109) A The account representative or manager assigned to the account usually prepares the creative brief. In larger agencies, an individual from research or the strategic account planning department may write it. 110) D The written creative brief specifies the basic elements of the creative strategy. Different agencies may call this document a creative platform or work plan, creative blueprint, or creative contract. The account representative or manager assigned to the account usually prepares the creative brief. The advertising manager and/or the marketing and brand managers from the client side ultimately approve the creative brief. 111) D Two critical components of the brief are the development of the major selling idea and creative strategy development. These two steps are often the responsibility of the creative team or specialist and form the basis of the advertising campaign theme. 112) B The scenario presents an objective for the Tacori creative brief. 113) D Well-known adman John O'Toole describes the big idea as "that flash of insight that synthesizes the purpose of the strategy, joins the product benefit with consumer desire in a fresh, involving way, brings the subject to life, and makes the reader or audience stop, look, and listen." 114) E Version 1

In the above scenario, we can tell that Leslie's big ideas could become the basis of very creative and successful advertising campaigns. Wellknown ad executive John O'Toole describes the big idea as "that flash of insight that synthesizes the purpose of the strategy, joins the product benefit with consumer desire in a fresh, involving way, brings the subject to life, and makes the reader or audience stop, look, and listen." While really great ideas in advertising are difficult to come by, there are many big ideas that became the basis of very creative, successful advertising campaigns. 115) A In the given scenario, the statement represents the gum's unique selling proposition. Three characteristics of unique selling propositions are: 1) each advertisement must make a proposition to the consumer, 2) it must be unique either in the brand or in the claim, and 3) the proposition must be strong enough to move the mass millions. 116) D The concept of the unique selling proposition (USP) was developed by Rosser Reeves, former chair of the Ted Bates agency, and is described in his influential book Reality in Advertising. Reeves said the attribute claim or benefit that forms the basis of the USP should dominate the ad and be emphasized through repetitive advertising. 117) B

Version 1

In many product and service categories, competing brands are so similar that it is very difficult to find or create a unique attribute or benefit to use as the major selling idea. Many of the packaged-goods products that account for most of the advertising dollars spent in the United States are difficult to differentiate on a functional or performance basis. The creative strategy used to sell these products is based on the development of a strong, memorable identity for the brand through image advertising. David Ogilvy argued that the image or personality of the brand is particularly important when brands are similar. 118) B The above scenario is an example of image advertising. The creative strategy used to sell these products is based on the development of a strong, memorable identity for the brand through image advertising. The key to successful image advertising is developing an image that will appeal to product users. This is often done by associating a brand with certain symbols or artifacts that have cultural meaning. 119) B The above scenario is an example of image advertising. The creative strategy used to sell these products is based on the development of a strong, memorable identity for the brand through image advertising. The key to successful image advertising is developing an image that will appeal to product users. This is often done by associating a brand with certain symbols or artifacts that have cultural meaning. 120) D David Ogilvy popularized the idea of brand image in his famous book Confessions of an Advertising Man. Ogilvy said that with image advertising, "every advertisement should be thought of as a contribution to the complex symbol which is the brand image."

Version 1

121) B The key to successful image advertising is developing an image that will appeal to product users. This is often done by associating a brand with certain symbols or artifacts that have cultural meaning. 122) B Leo Burnett, founder of the Leo Burnett agency in Chicago, said inherent drama “is often hard to find but it is always there, and once found it is the most interesting and believable of all advertising appeals.” 123) C An approach to determining the major selling idea is finding the inherent drama or characteristic of the product that makes the consumer purchase it. Such advertising is based on a foundation of consumer benefits with an emphasis on the dramatic element in expressing those benefits. 124) C The above ad is an example of the inherent drama approach. An approach to determining the major selling idea is finding the inherent drama or characteristic of the product that makes the consumer purchase it. Such advertising is based on a foundation of consumer benefits with an emphasis on the dramatic element in expressing those benefits. 125) B The concept of positioning as a basis for advertising strategy was introduced by Jack Trout and Al Ries in the early 1970s and has become a popular basis of creative development. 126) E Jack Trout and Al Ries originally described positioning as the image consumers had of the brand in relation to competing brands in the product or service category, but the concept has been expanded beyond direct competitive positioning. Version 1

127) B In describing today's creative leaders, Anthony Vagnoni of Advertising Age writes: The modern creative kings don't write books, rarely give interviews or lay out their theories on advertising. They've endorsed no set of rules, professed no simple maxims like Mr. Ogilvy's famous "When you don't have anything to say, sing it." If pronouncements and books are out the window, what's replaced them is a conscious desire to lift the intelligence level of advertising. Today's leaders see advertising as an uplifting social force, as a way to inspire and entertain. 128) D Advertisers are facing major challenges in their search for the big idea in the new world of integrated marketing communications. Most marketers and their agencies recognize that they must come up with big ideas that can be used across a variety of media and can engage consumers and enter into a dialogue with them. 129) D Advertisers are facing major challenges in their search for the big idea in the new world of integrated marketing communications. Most marketers and their agencies recognize that they must come up with big ideas that can be used across a variety of media and can engage consumers and enter into a dialogue with them. 130) A Positioning is when advertising is used to establish or position the product or service in a particular place in the consumer's mind.

Version 1

CHAPTER 9 TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) The Joint Policy Committee on Broadcast Relations has proposed a new compensation system that will base the pay for commercial actors on gross ratings points. ⊚ ⊚

true false

2) The evaluation process of creative outputs is usually subjective; the advertising or brand manager relies on qualitative considerations for evaluation. ⊚ ⊚

true false

3) Experts suggest that advertisements targeted to older consumers should use actors who are older than the targeted audience, as that makes the message seem more credible. ⊚ ⊚

true false

4) The ultimate responsibility for determining whether an ad deceives or offends the target audience lies with the client. ⊚ ⊚

true false

5) It has been suggested that advertising targeted to older consumers should use models who are 10 years older than the average age of the target audience, since most people feel older than their chronological age. ⊚ ⊚

Version 1

true false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 6) Big Ticket Sales is working with Success Advertising to create the message that the Big Ticket Brand meets consumer needs better than their competition does, then listing the reasons why and providing facts and education about their brand. Big Ticket Brand is asking the ad to be A) a price appeal. B) an advertising appeal. C) an information/rational appeal. D) an emotional appeal. E) a product/service popularity appeal.

7) Buy It All recently created an advertising campaign with Productivity Advertising carrying the theme of weekly special offers. This type of ad is known as A) a price appeal. B) an advertising appeal. C) an information/rational appeal. D) an emotional appeal. E) a product/service popularity appeal.

8) When Blueberry Designs launched their online delivery portal, they emphasized their expansion from designer wear into sportswear and active wear. They included in their message the number of consumers who have switched to Blueberry Designs Brand because it stands for quality. Blueberry Designs is demonstrating A) price appeal. B) advertising appeal. C) information/rational appeal. D) emotional appeal. E) product/service popularity appeal.

Version 1

9) WriteOn Stationery recently released an ad featuring a teenage girl using WriteOn stationery to handwrite a note to her grandmother. Then the grandmother shows everyone the special note she received, putting smiles on everyone’s face. The next time the granddaughter visits, she is praised for making time to write. The type of ad WriteOn Stationery is using is called A) reminder advertising. B) a straight-sell message. C) a slice-of-life. D) a transformational ad. E) teaser advertising.

10) Before Blueberry Designs launched their active wear line, they created a series of ads showing people wearing their designer dresses, suits, and heals at the gym, in the wilderness, and on a sailboat with the phrase, “Soon you can Blueberry, too.” Blueberry Designs was using A) reminder advertising. B) a straight-sell message. C) a slice-of-life ad. D) a transformational ad. E) teaser advertising.

11) Teeth-whitening product ads focus on the benefits of removing stains and the health benefits of using their product. This type of ad is called A) dramatization. B) a straight-sell message. C) a slice-of-life ad. D) a transformational ad. E) teaser advertising.

12) Although he may not use it personally, an actor famous for his role as a detective is featured as the spokesperson in a home security system ad. He is taking on the role of

Version 1

A) dramatizer. B) testimonial. C) slice-of-life. D) endorser. E) image executer.

13) Some television ads for medical treatments that offer a problem-solution approach are often not able to use actual patients. Marketers creating these ads seek professional actors to play a role to achieve a high-quality commercial. This is known as A) demonstration. B) testimonial. C) slice-of-life. D) endorser. E) image execution.

14) Blueberry Designs knows their consumers associate feelings of quality with their patented Blueberry blue. That is why every ad must contain this featured color and tonality. This practice is known as A) dramatization. B) testimonial. C) slice-of-life. D) endorsement. E) image execution.

15) A commercial with exposition, conflict, rising suspense, climax, and resolution with product identification is also known as a

Version 1

A) dramatization. B) testimonial. C) slice-of-life. D) telenovela. E) performance.

16) The Printable Principle Ad Agency advocates the importance of being straightforward and informative in terms of the message they are presenting and the audience they are targeting. When creating an ad, they use ________ to announce the reason a reader should be interested in the product or service. A) an indirect headline B) a direct headline C) musical composition D) the body copy E) the layout

17) The Printable Principle Ad Agency is working with Mango Services to create the heart of their message, which will comprise the A) indirect headline. B) direct headline. C) musical composition. D) body copy. E) layout.

18) Mango Services wants to know how much copy will be written for next Sunday’s ad. The Printable Principle Ad Agency has responded that once the ________ is complete, they will know how much space they have to work with and how much copy will be written.

Version 1

A) indirect headline B) direct headline C) musical composition D) body copy E) layout

19) In both radio and TV commercials, music brings a relatable emotion or memorable phrasing. The musical composition includes the music notes and the words, while the more expensive ________ includes the voice(s) of the original artist. A) theme song B) jingle C) i-tunes D) master recording E) master composition

20) The Printable Principle Ad Agency writer guidelines state that it is critical to create a good headline to draw consumers in to keep reading the body of the ad with information about the product or service. Statistically, ________ of advertising readers go beyond the headline to read the body copy. A) 90 percent B) 10 percent C) 80 percent D) 20 percent E) 50 percent

21) An international denim brand asks its advertising agency to create a campaign to instill an emotional connection to the brand in young people all over the world. The agency is asked to focus on the adventure-seeking nature of the youth. Here, the brand is trying to come up with a(n) ________

Version 1

A) advertising appeal. B) primacy appeal. C) brand identity. D) brand parity. E) business plan.

22) A(n) ________ refers to the approach used in an advertisement to elicit some consumer response or to influence the feelings of consumers toward a product, service, or cause. A) brand dilution B) brand parity C) business plan D) advertising appeal E) advertising character

23) A(n) ________ is something that moves people, speaks to their wants or needs, and excites their interest. A) recency sequence B) advertising stock C) advertising appeal D) creative sequence E) creative review

24) A(n) ________ refers to the manner in which an advertising idea is turned into a message and presented to consumers. A) advertising appeal B) creative execution style C) rational appeal D) emotional appeal E) creative sequence

Version 1

25) An ad for Sylio, a prescription medicine for people with scoliosis, uses a visual representation of the drug's action and effect on the human body. The ad states that the drug is made with natural active ingredients and that side effects, if any, are all minor and short term. The ad is an example of A) a primacy appeal. B) a recency appeal. C) an emotional appeal. D) a rational appeal. E) a fear appeal.

26) An ad for Red Bull that focuses on the dominant traits of the product—its ingredients— and the benefits they provide (e.g., enhanced performance, endurance, and concentration) is using a ________ appeal. A) feature B) recency C) favorable price D) popularity E) fear

27) An ad for TaylorMade M1 and M2 drivers notes that more professional golfers play these drivers on tour than any other brand. TaylorMade is using a ________ appeal. A) feature B) recency C) favorable price D) popularity E) fear

28) Advertising appeals that focus on functional or utilitarian needs and emphasize product features and benefits are known as ________ appeals.

Version 1

A) informational B) emotional C) fear D) creative E) noncognitive

29) Purchase motives such as convenience, comfort, economy, and performance are used as a basis for generating ________ appeals through advertising. A) creative B) emotional C) imaginary D) rational E) traditional

30) The content in an advertisement that emphasizes facts, learning, and the logic of persuasion makes use of a(n) ________ appeal. A) emotional B) informational C) transformational D) subliminal E) irrational

31)

Which of the following statements is true of informational advertising appeals?

Version 1

A) Benefits that serve as the basis of these appeals are constant across product categories. B) They work well for products but not for services. C) Attributes that form the basis of these appeals vary from one product or service category to another. D) Features, benefits, or attributes that serve as a basis for these appeals generally do not vary among different market segments. E) They usually influence feelings, images, beliefs, and meanings about a product or service.

32) An ad for Calloway Resorts stresses the different recreational activities available to visitors. It also explains the various facilities that guests can use while staying at the resort. This is an example of a(n) ________ appeal. A) news B) favorable price C) feature D) popularity E) emotional

33) An ad featuring actor/singer Victoria Justice for the "Body by Milk" integrated marketing campaign talks about how milk can help teens look their best. It leverages the ________ base for emotional appeals. A) recognition B) self-esteem C) security D) nostalgia E) excitement

34)

Which of the following statements is true of feature appeals?

Version 1

A) They present attributes that can be the basis of rational purchase decisions. B) They are used mainly for low-involvement products. C) They can be used for advertising a product but not a service. D) They are used primarily for nontechnical products. E) They point out the number of consumers who have switched to a particular brand.

35) To announce sales, special offers, or discount rates, retailers often use a(n) ________ appeal. A) feature B) product popularity C) favorable price D) competitive advantage E) emotional

36) A personal computer manufacturer has developed a significant technological breakthrough that will make its computers easier for novices to use. The computer manufacturer would do best to use a(n) ________ appeal to announce the breakthrough. A) favorable price B) emotional C) news D) product popularity E) competitive advantage

37) Aleve Inc., a pharmaceutical company, launches an ad that claims, "Taking one pill from Aleve is as effective as taking three pills from any other company." This ad campaign is using a(n) ________ appeal.

Version 1

A) emotional B) competitive advantage C) news D) favorable price E) product popularity

38) A campaign run by the manufacturers of Glad garbage bags informs viewers that Glad garbage bags are twice as thick as those made by Crash Bin Bags, the leading garbage bag brand in the market. In this scenario, Glad is using a(n) ________ appeal. A) emotional B) competitive advantage C) product popularity D) favorable price E) news

39) The ad for F.N. Inc., an investment bank, states that the company is "Ranked #1 by Trading World magazine." In this scenario, the ad is using a(n) ________ appeal. A) emotional B) competitive advantage C) product feature D) favorable price E) product popularity

40) Advertisements that focus on the dominant attributes or characteristics of a product or service are making use of ________ appeals.

Version 1

A) feature B) news C) price D) product popularity E) competitive advantage

41) A ________ appeal is used when the advertiser makes either a direct or an indirect comparison to another brand and usually claims superiority on one or more attributes. A) feature B) popularity C) competitive advantage D) favorable price E) news

42) An automobile manufacturer runs an advertisement proclaiming that one of its luxury cars has been the best-selling model in the United States for two straight years. This is an example of an ad using a(n) ________ appeal. A) feature B) favorable price C) news D) product popularity E) emotional

43) An automobile manufacturer runs an advertisement proclaiming that one of its luxury cars has been the best-selling model in the United States for two straight years. This is an example of an ad using a(n) ________ appeal.

Version 1

A) feature B) favorable price C) news D) product popularity E) emotional

44) A software development company runs an advertising campaign for one of its products emphasizing that it is the most preferred financial software brand. The ad also states, "Thousands of customers have switched over to our software." The company is making use of a(n) ________ appeal. A) emotional B) news C) product popularity D) product feature E) favorable price

45) A "Love Has No Labels" public service advertising campaign that was sponsored by the Ad Council filmed a live event where skeleton images embraced behind a large x-ray screen, then the people walked out from behind the screen. The people who embraced represented different pairings of gender, race, sexual orientation, religion, ability, and age. This video used a(n) ________ appeal to get viewers to look at their expectations and implicit bias. A) emotional B) news C) product popularity D) product feature E) favorable price

46) Advertising appeals that relate to consumers' social and/or psychological needs for purchasing a product or service are known as ________ appeals.

Version 1

A) informational B) rational C) product popularity D) emotional E) product feature

47)

Which of the following statements explains why marketers use emotional appeals?

A) The positive feelings created by advertising can have a favorable effect on consumers' evaluations of a brand. B) Emotional appeals focus on the consumer's practical, functional, or utilitarian need for a product or service. C) Emotional appeals tend to be informative, and help advertisers convince consumers that their product or service satisfies their needs. D) Emotional appeals persuade the target audience to buy the brand because it is the best available. E) Emotional appeals are easy to execute and cost less, even though they are less effective than rational appeals.

48)

Advertisers create emotional advertising appeals by using A) comparative advertisements. B) product feature appeals. C) transformational advertising. D) news appeals. E) popularity appeals.

49) Advertisements that portray people experiencing an arousing, upbeat, and/or exciting benefit or outcome from using a product or service are relying on

Version 1

A) informational appeals. B) rational appeals. C) mood transfers. D) emotional integrations. E) outcome integrations.

50) Which of the following is a vital component of ads that use emotional integration to market a product? A) fear B) news C) popularity D) humor E) price

51) Advertisements that create feelings, meanings, images, or beliefs about a product or service that can be activated when consumers use it are known as ________ ads. A) rational B) transformational C) consumer-generated D) reminder E) informational

52) ________ advertising attempts to make the experience of using a product or service richer, warmer, or more exciting. A) Informational B) Teaser C) Transformational D) Reminder E) Rational

Version 1

53)

Transformational advertising can differentiate a product or a service by A) convincing a consumer of its leadership position in the market. B) making the consumption experience more meaningful and enjoyable. C) helping the consumption experience last longer. D) showing performance superiority of one brand over another. E) focusing on a consumer's functional or utilitarian need for the product or service.

54) Manten is a popular brand of hiking boots. Its advertisements emphasize the experience of conquering unfamiliar terrain in the wild. They portray vivid, captivating visuals of cliffs, rivers, and jungles. The campaign is also accompanied by a popular jingle that reflects the qualities of freedom, wilderness, and adventure that the company values. This approach is most likely an example of ________ advertising. A) rational B) transformational C) consumer-generated D) teaser E) informational

55)

Which of the following is true of image advertisements? A) They are transformational in nature. B) They are designed to transfer the image of a company to its brand. C) They are typically utilized in radio advertisements. D) They are not suitable for print media. E) They typically utilize emotional integration.

56) ________ is designed to give a company or brand a unique association or personality and is often transformational in nature.

Version 1

A) Rational advertising B) Image advertising C) Reminder advertising D) Teaser advertising E) Consumer-generated advertising

57)

Rational and emotional advertising appeals

A) represent two distinctive approaches which should never be combined because they divide the focus of consumers' attention. B) are essentially the same. C) can be used together in advertisements. D) are used together only for low-involvement products. E) can be combined only for products and not for services.

58) The "Find Your Beach" campaign for Corona Extra makes the experience of drinking the beer more enjoyable and connects the experience of the advertisement so tightly with the experience of drinking the beer that consumers cannot remember the brand without recalling the experience generated by the advertisement, which makes it a ________ ad. A) product benefit B) rational C) transformational D) reminder E) teaser

59) Well-known brands and market leaders often run ads that do not use any specific types of appeals, but focus primarily on keeping their brand name visible to consumers. This type of advertising is known as ________ advertising.

Version 1

A) teaser B) reminder C) rational D) transformational E) consumer-generated

60) A chocolate manufacturer advertises heavily during Christmas with an ad that shows only a picture of red, green, and silver wrapped chocolates. The advertiser's aim is to create top-ofmind awareness among consumers. In this scenario, the chocolate manufacturer is using ________ advertising. A) transformational B) reminder C) rational D) consumer-generated E) teaser

61) Under Armour used ________ ads to create interest and excitement around a new product introduction for its Armour39 performance monitoring system. It wanted to create some suspense and mystery for the new product. A) transformational B) reminder C) rational D) consumer-generated E) teaser

62)

Which of the following is true of reminder advertising?

Version 1

A) It generally uses a transformational approach to advertising. B) It is used to create top-of-mind awareness among consumers. C) It is not applicable for generic consumer products. D) It is also known as emotional advertising. E) It attempts to assign a personality to the brand.

63) ________ advertising is sometimes used to create curiosity and build interest and excitement in a new product or brand by talking about it but not showing it. A) Reminder B) Teaser C) Rational D) Consumer-generated E) Informational

64) Jim's Taco launched an advertising campaign for its new Guacamole taco by running anonymous full-page ads featuring basketball stars issuing mysterious challenges to one another. The ads were attempting to build curiosity without showing the product. This is an example of ________ advertising. A) transformational B) reminder C) rational D) consumer-generated E) teaser

65) When Frito-Lay sponsored its "Crash the Super Bowl" creative competition and ran an ad that was entirely conceived and produced by amateurs, rather than advertising professionals, it was an example of

Version 1

A) transformational advertising. B) reminder advertising. C) rational advertising. D) user-generated content. E) teaser advertising.

66) When Platinum Motors Inc. was preparing to introduce a new model, ads were run for several weeks that talked about the new car but never showed it. This is an example of ________ advertising. A) reminder B) transformational C) teaser D) emotional E) consumer-generated

67)

Which of the following statements is true of teaser advertisements? A) They depend on emotional bonding to generate publicity. B) They do not work well when used for a short period of time. C) Marketers should avoid rational appeals while creating them. D) They focus on the transformational appeal of a product. E) Marketers must be careful not to use them too long.

68) The argument by famous advertising man David Ogilvy that "what you say in advertising is more important than how you say it" suggests that A) advertising appeal is more important than the way it is executed. B) advertising execution is more important than the appeal. C) advertising appeals and executions are equally important. D) advertising execution is more important than message content. E) a product is more important than its creative appeal.

Version 1

69) An advertising execution technique that relies on a straightforward presentation of information about a product or service is called a(n) A) factual message. B) demonstration. C) testimonial. D) dramatization. E) animation of key benefits approach.

70)

Straight-sell message executions are commonly used with ________ advertising appeals. A) informational B) emotional C) transformational D) teaser E) humor

71) A print ad for flood insurance lists 20 reasons why every homeowner should have flood insurance. This is an example of ________ advertising. A) straight-sell B) transformational C) testimonial D) teaser E) comparative

72) An ad for the American Indian College Fund used the headline, "I Will Keep 286,000 People from Losing Their Sacred Land" to generate curiosity among magazine readers and encourage them to read the copy below for an explanation. This is an example of a(n) ________ headline.

Version 1

A) direct B) transformational C) testimonial D) teaser E) indirect

73) The ad for an investment company opens with the statement, "You can't plan for tomorrow if you don't know where your money is today," and continues with relevant information about investment and its benefits. This ad is an example of ________ advertising. A) straight-sell B) transformational C) testimonial D) teaser E) comparative

74) When an advertiser cites technical information, such as the results of laboratory studies, in an advertisement, a(n) ________ style of execution is being used. A) dramatization B) slice-of-life C) scientific evidence D) testimonial E) animation

75) In an ad for Pluto's superior sun protection moisturizer, a dermatologist's report states, "A year of incidental sun equals baking for a week at the beach!" This is an example of a(n) ________ style of execution.

Version 1

A) dramatization B) slice-of-life C) technical evidence D) testimonial E) animation

76) An ad for a brand of tea states that according to laboratory research, "A serving of tea has more antioxidants than a serving of carrots or broccoli." Which type of ad execution is being used in this example? A) dramatization B) testimonial C) scientific evidence D) slice-of-life E) comparison

77) Which of the following is an advertising execution approach designed to illustrate key advantages of a product by showing it in actual use? A) comparison B) demonstration C) scientific evidence D) straight sell E) animation

78) An ad for a van shows how easily a small boy and his grandfather can get in and out of the vehicle. It also emphasizes the positioning of handles at appropriate places that make transit easier for older people. Which ad execution technique is being used in this ad?

Version 1

A) comparison B) demonstration C) scientific evidence D) straight sell E) testimonial

79) Subway Restaurant's catchy "Five-dollar foot-long" song, or ________, has been an integral part of one of the most effective promotional campaigns ever developed in the fast-food industry. A) jingle B) script C) storyboard D) layout E) animatic

80) When a person speaks on behalf of a product or service based on his or her personal use of and experiences with it, a(n) ________ execution is being used. A) dramatization B) slice-of-life C) animation D) demonstration E) testimonial

81) Rick Edgars, a famous sports personality, appears in Venus Inc.'s ads in which he notes how the company's golf clubs have helped him win several major championships. He also states that in his experience, the clubs have a "perfect swing." Which of the following types of advertising execution is illustrated in this scenario?

Version 1

A) slice of life B) testimonial C) demonstration D) scientific evidence E) dramatization

82) In a television ad, actor and noted animal lover Betty White praised Frontline, a flea and tick treatment, for the way it protects her dogs and cats. Which of the following types of advertising execution has been illustrated in this scenario? A) comparisons B) slice of life C) humor D) testimonial E) demonstration

83) Airlines sometimes use ________ when they begin offering service to new cities or opening new routes as a way of informing consumers as well as generating media interest that can result in publicity for them. A) comparisons B) slice of life C) humor D) testimonial E) news

84) A professional race car driver appears in an ad advocating a particular motor oil brand. This is an example of a(n)

Version 1

A) comparison. B) endorsement. C) demonstration. D) straight sell. E) slice of life.

85) A widely used advertising execution style for packaged products, which attempts to portray situations consumers might face while using them in their daily activities, is known as ________ execution. A) endorsement B) slice-of-life C) emotional D) dramatization E) demonstration

86) A Bright laundry detergent ad showed a baseball team-manager removing stains from two dozen uniforms by throwing them in a washer and adding Bright detergent. Which of the following advertising execution styles has been illustrated in this scenario? A) dramatization B) slice of life C) humorous D) testimonial E) emotional

87) An ad for a vacation resort in Virginia begins by stating that the resort has "Dozens of sporting diversions for the entire family." Under that statement, it reads, "Translation: guilt-free golf." Which execution style is seen in this ad?

Version 1

A) endorsement B) slice of life C) reminder D) testimonial E) demonstration

88)

Which of the following statements is true of the use of slice-of-life executions?

A) Slice-of-life executions are very inefficient in business-to-business advertising. B) To be effective, a slice-of-life execution should avoid mimicking real life because its primary purpose is to rise above the clutter. C) Slice-of-life executions work well only for consumer products with perceived homogenous qualities. D) Many advertisers like slice-of-life executions because they feel they are an effective way to present a situation to which consumers can relate. E) Slice-of-life or problem/solution execution approaches are limited to the advertising of services.

89) An advertising execution technique used by business-to-business marketers depicting the negative consequences of making incorrect purchase decisions is referred to as A) a problem-solution execution. B) slice-of-death advertising. C) slice-of-life advertising. D) a response-stimuli execution. E) informational advertising.

90) An ad for Novell solutions targeting businesspeople used the headline, "ERP: Sound made by CIO when people see data they shouldn't." The actor playing the executive in the ad has a distressed, almost fearful look on his face. Which of the following execution techniques has been used in this ad?

Version 1

A) problem-solution execution B) slice-of-death advertising C) slice-of-life advertising D) reminder execution E) informational advertising

91) An advertising execution technique that is particularly popular for creating commercials targeted at children is A) slice of life. B) demonstration. C) testimonial. D) scientific evidence. E) animation.

92)

Which of the following is true of cartoon animation? A) It is synonymous with slice-of-life advertising. B) It is also known as endorsement advertisement. C) It is popular for commercials targeted at children. D) It involves a problem-solution approach. E) It portrays the conflict that people face in their daily lives.

93) Colonel Sanders in KFC's ads is an example of advertising that uses a ________ in its execution technique. A) testimonial B) demonstration C) fantasy D) personality symbol E) behavioral appeal

Version 1

94) When Alcon's Opti-Free multi-purpose disinfecting solution for contact lens care treatment notes the product is the number one doctor-recommended brand because its performance is driven by science, it is using _________ as an execution approach. A) testimonial B) scientific/technical evidence C) fantasy D) personality symbol E) comparison

95) ________ are used in the execution of ads that involve creating a central character that can deliver the advertising message and with whom the product or service can be identified. A) Demonstrations B) Testimonials C) Personality symbols D) Fantasies E) Slices-of-life situations

96) Marlboro used a cowboy to advertise its cigarettes for a number of years. "The Marlboro Man" became a central character through which the company delivered its advertising message. This is an example of A) testimonial advertising execution technique. B) demonstration advertising execution technique. C) use of personality symbols in the execution of ads. D) use of testimonials in the execution of ads. E) use of ambassadors in the execution of ads.

97) ________ is an advertising execution technique often used for emotional appeals. It offers viewers a form of mental escape and/or an opportunity to envision themselves in a certain situation.

Version 1

A) Imagery B) Demonstration C) Slice of life D) Animation E) Comparative advertising

98) Timber Co. sells all-weather gear. For its advertising campaign, the company develops an imaginary place called Timber City, which is a Utopian setting of extraordinary landscapes and crystal-clear lakes. Which of the following execution styles is illustrated in Timber's ads? A) imagery B) demonstration C) slice of life D) animation E) comparison

99) Which of the following is used to execute an ad wherein excitement and suspense are used to tell a short story with a product as the star of the ad? A) slice of life B) animation C) dramatization D) testimonial E) imagery

100) The state of Colorado runs an ad which shows an obviously scared third grader getting ready to go on stage for his first public stage appearance. He is dressed as a carrot. The ad tells the reader that being a third grader is much more stressful than we remember and causes us to feel great sympathy for the child dressed in the ridiculous costume. The tag line at the end of the ad reads, "Your kids need a carefree Colorado vacation as much as you do." This is an example of a

Version 1

A) dramatization technique. B) testimonial technique. C) fear technique. D) personality symbol technique. E) scientific evidence technique.

101) An ad for a new hatchback shows four college students hunting for a parking place in a large, crowded parking lot. When they finally find a spot and park the car, they discover that they can't open the doors to get out. One of them opens the hatchback and the commercial ends with them exiting the car through the hatchback. This commercial uses A) 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.

102)

Which of the following is a basic component of a print advertisement? A) deadline B) testimonial C) trademarks D) animations E) layout

103) ________ are words in the leading position of a print advertisement that are likely to be read first.

Version 1

A) Headlines B) Body copies C) Subheads D) Layouts E) Primary copies

104)

Research has shown that the first thing people look at in a print ad is the A) illustration. B) visual. C) body copy. D) subhead. E) headline.

105)

Many advertising experts consider the most important part of a print ad to be the A) headline. B) subhead. C) layout. D) body copy. E) needledrop.

106) Headlines that are very straightforward and informative in the message they are presenting are known as ________ headlines. A) direct B) indirect C) secondary D) visual E) rational

Version 1

107) When an advertiser has something important or new to announce to a target audience, a(n) ________ headline will be used. A) direct B) indirect C) secondary D) visual E) affective

108) The headline in an advertisement reads, "Introducing Pluto's Washable Crayons for the youngest artist in your gallery." This is an example of a(n) ________ headline. A) direct B) indirect C) tertiary D) secondary E) rational

109) Steve Oakes found that increased congruity between ________ and advertising with respect to variables like mood, genre, score, image, and tempo contributes to communication effectiveness of an advertisement by enhancing recall, brand attitude, affective response, and purchase intention. A) headlines B) music C) slogans D) scripts E) layouts

110) Which of the following statements describes a potential problem associated with indirect headlines in print ads?

Version 1

A) They generate curiosity in readers, which takes attention away from the message. B) They may not be provocative enough to direct a reader's attention to the rest of the message. C) They avoid the use of questions or provocations. D) They avoid the use of how-to statements. E) They are often treated as subheads.

111) A print ad for Apple Cider Vinegar Diet used the headline, "Maybe Eve was on to something." This is an example of a(n) A) direct headline. B) indirect headline. C) subhead. D) jingle. E) noise.

112)

________ have the highest click-through rate of the online advertising formats. A) Video ads B) Leaderboard display ads C) Billboard display ads D) Half-page ads E) Pop-up ads

113) Underneath the headline, "Fully Loaded," in an ad for Brett shotguns was written: "Our most comprehensive line of autoloading shotguns ever." This second statement was printed in a typeface larger than the body copy but smaller than the headline. The second statement in the ad is an example of a(n)

Version 1

A) story line. B) subhead. C) jingle. D) indirect headline. E) noise.

114) Peter Minnium of the Internet Advertising Bureau notes that digital advertising is trifurcating into three types of advertising—________ ads—and their use varies based on the goals and/or objectives the marketer is trying to achieve all along the purchase funnel. A) emotional, teaser, and transformational B) reminder, teaser, and informational C) emotional, informational, and transformational D) emotional, transformational, and commerce E) concept, content, and commerce

115) ________ is a type of paid placement designed to fit seamlessly into the content that surrounds it. The design, content, and writing style of this ad format mirrors the nonpaid content around it, giving the user the impression that it really belongs. A) Digital advertising B) Native advertising C) Video advertising D) Interactive advertising E) Display advertising

116)

What is the main portion of text in a print ad called?

Version 1

A) story line B) subhead C) body copy D) illustration E) storyboard

117) The ________ is considered the heart of a print ad but is often difficult to get readers to attend to. A) headline B) subhead C) body copy D) visual E) logo

118)

When deciding on the visual portion of a print ad, an advertiser must determine A) the identification marks to be included. B) the requirement for a needledrop. C) the content in the body copy. D) the length of the ad copy. E) the headline of the copy.

119) The physical arrangement of the various parts of an ad, including headlines, subheads, illustrations, body copy, and identifying marks, is known as a(n) A) narration. B) visual. C) body copy. D) artwork. E) layout.

Version 1

120) A copywriter can determine how much space he or she has to work with and how much copy to write after seeing a print advertisement's A) trademarks. B) artwork. C) body copy. D) layout. E) illustration.

121)

The audio portion of a commercial is often presented through the use of a(n) A) layout. B) voiceover. C) illustration. D) headline. E) storyboard.

122) ________ is an occupational term in the advertising and music industries that refers to prefabricated, multipurpose music that is often used as the background audio portion of a commercial. A) Jingle B) Voiceover C) Needledrop D) Stock photo E) Beat music

123) The use of an actor's voice for reading poetry in a series of automobile commercials is an example of a

Version 1

A) needledrop. B) talking jingle. C) voiceover. D) tagline. E) subtextual message.

124) ________ are catchy songs about a product or service that usually carry the advertising theme and a simple message. A) Headlines B) Taglines C) Voiceovers D) Jingles E) Needledrops

125) The written version of a television commercial that provides a detailed description of its video and audio content is known as a A) layout. B) jingle. C) voiceover. D) script. E) storyboard.

126) Once a script for a television commercial has been conceived, a writer and an art director collaborate to produce a ________, a series of drawings used to present the visual plan or layout of the commercial.

Version 1

A) transparency board B) storyboard C) visual layout D) layout synopsis E) thumbnail sketch

127) During which stage of commercial production process do activities such as editing, recording of sound effects, audio/video mixing, and agency approval occur? A) preproduction B) production C) postproduction D) preparation E) incubation

128)

Which of the following is a common criticism of TV commercials? A) The creative execution tends to overshadow the advertiser's message. B) They usually have a horizontal layout. C) They are highly unpredictable and difficult to interpret. D) They fail to effectively include needledrops and jingles. E) They overemphasize the brand name and product selling points.

129) Which of the following questions should be used as a criterion when evaluating creative output? A) Does the creative approach create a segmentation base? B) Is the creative approach consistent with that used by the competition? C) Is the ad truthful and tasteful? D) Does the creative approach support a market aggregation strategy? E) Does the creative approach use a dramatic execution style?

Version 1

130) Which of the following is not a question that should be used when evaluating creative output? A) Is the creative approach appropriate for the media environment in which it is likely to be seen? B) Is the creative approach consistent with that used by the competition? C) Is the ad truthful and tasteful? D) Does the creative approach communicate a clear and convincing message to the customer? E) Is the creative approach appropriate for the target audience?

131) Aflac had to modify the commercials using its iconic duck character after several research studies showed that many consumers were not exactly sure what Aflac insurance was. Consumers indicated that the advertising didn’t explain what supplemental insurance is and what Aflac does. Which basic criteria for evaluating creative approaches was not met? A) Does the creative execution keep from overwhelming the message? B) Is the creative approach consistent with that used by the competition? C) Is the ad truthful and tasteful? D) Is the creative approach consistent with the brand’s marketing and advertising objectives? E) Does the creative approach use a dramatic execution style?

Version 1

Answer Key Test name: Chap 09_12e 1) TRUE The Joint Policy Committee on Broadcast Relations, an advertising industry group that represents advertisers and agencies in bargaining with talent unions, has proposed a new compensation system that will base pay for commercial actors on gross ratings points that are calculated by determining the size of the audience the spot reaches as well as the number of times it is run. 2) TRUE The client may want a rough layout storyboard or animatic pretested to get quantitative information to assist in the evaluation. However, the evaluation process is usually more subjective; the advertising or brand manager relies on qualitative considerations. 3) FALSE It has been suggested that advertising targeted to older consumers should use models who are 10 years younger than the average age of the target audience, since most people feel younger than their chronological age. 4) TRUE The ultimate responsibility for determining whether an ad deceives or offends the target audience lies with the client. It is the job of the advertising or brand manager to evaluate the approach suggested by the creative specialists against company standards. 5) FALSE

Version 1

It has been suggested that advertising targeted to older consumers should use models who are 10 years younger than the average age of the target audience, since most people feel younger than their chronological age. 6) C The content of ads with rational appeal emphasizes facts, learning, and the logic of persuasion. Their objective is to persuade the target audience to buy the brand because it is the best available or does a better job of meeting consumers' needs. 7) A A favorable price appeal makes the price offer the dominant point of the message. Price appeal advertising is used most often by retailers to announce sales, special offers, or low everyday prices. Price appeal ads are often used by national advertisers during recessionary times. 8) E Product/service popularity appeals stress the popularity of a product or service by pointing out the number of consumers who use the brand, the number who have switched to it, the number of experts who recommend it, or its leadership position in the market. The main point of this advertising appeal is that the wide use of the brand proves its quality or value and other customers should consider using it. 9) D A transformation advertisement must connect the experience of the advertisement so tightly with the experience of using the brand that consumers cannot remember the brand without recalling the experience generated by the advertisement. They create feelings, images, meanings, and beliefs about the product or service that may be activated when consumers use it, transforming their interpretation of the usage experience. Version 1

10) E Advertisers introducing a new product often use teasers or mystery advertisements, which are designed to build curiosity, interest, and/or excitement about a product or brand by talking about it but not actually showing it. They are especially popular among automotive advertisers for introducing new models or announcing significant changes in a vehicle. 11) B Straight-sell or factual messages rely on a straightforward presentation of information concerning the product or service. The execution is often used with informational/ rational appeals, where the focus of the message is the product or service and its specific attributes and/or benefits. Ads for high-involvement consumer products as well as industrial and other business-to-business products generally use this format. 12) D When endorsers promote a company or its products or services, the message is not necessarily based on their personal experiences. 13) C Since the success of slice-of-life ads often depends on how well the actors come across and execute their roles, professional actors are often used to achieve credibility and to ensure that the commercial is of high quality. 14) E

Version 1

Image executions rely heavily on visual elements such as photography, color, tonality, and design to communicate the desired image to the consumer. Marketers who rely on image executions have to be sure that the usage or user imagery with which they associate their brand evokes the right feelings and reactions from the target audience. 15) A There are five basic steps in a dramatic commercial: First is exposition, where the stage is set for the upcoming action. Next comes conflict, which is a technique for identifying the problem. The middle of the dramatic form is a period of rising action where the story builds, the conflict intensifies, the suspense thickens. The fourth step is the climax, where the problem is solved. The last part of a drama is the resolution, where the wrap-up is presented. In advertising, that includes product identification and call to action. 16) B Direct headlines are straightforward and informative in terms of the message they are presenting and the target audience they are directed toward. Indirect headlines are not straightforward about identifying the product or service or getting to the point. Techniques for writing indirect headlines include using questions, provocations, how-to statements, and challenges. 17) D The main text portion of a print ad is referred to as the body copy (or sometimes just copy). While the body copy is usually the heart of the advertising message, getting the target audience to read it is often difficult. 18) E

Version 1

A layout is the physical arrangement of the various parts of the ad, including the headline, subheads, body copy, illustrations, and any identifying marks. The layout helps the copywriter determine how much space he or she has to work with and how much copy should be written. The content is determined by the marketing objectives and the strategies adopted to achieve them. 19) D The musical composition includes the music notes and the words, while the master recording includes the voice(s) of the original artist. The latter is usually much more expensive to buy, so advertisers will often negotiate for the rights to use the music and have it performed by someone with a similar voice. 20) D Only 20 percent of readers go beyond the headline and read the body copy. So, in addition to attracting attention, the headline must give the reader a good reason to read the copy portion of the ad, which contains more detailed and persuasive information about the product or service. 21) A This scenario is an illustration of an advertising appeal. An advertising appeal refers to an approach used to attract the attention of consumers and/or to influence their feelings toward a product, service, or cause. 22) D An advertising appeal refers to an approach used to attract the attention of consumers and/or to influence their feelings toward a product, service, or cause. 23) C

Version 1

An advertising appeal refers to an approach used to attract the attention of consumers and/or to influence their feelings toward a product, service, or cause. An advertising appeal can also be viewed as something that moves people, speaks to their wants or needs, and excites their interest. 24) B A creative execution style is the way a particular appeal is turned into an advertising message presented to the consumer. 25) D The above scenario is an example of a rational appeal. Informational/rational appeals focus on the consumer's practical, functional, or utilitarian need for the product or service and emphasize features of a product or service and/or the benefits or reasons for owning or using a particular brand. 26) A This scenario is an example of a feature appeal. Ads that use a feature appeal focus on the dominant traits of the product or service. 27) D The above scenario is an example of a product/service popularity appeal, which stresses the popularity of a product or service. 28) A Informational/rational appeals focus on a consumer's practical, functional, or utilitarian need for a product or service and emphasize features of a product or service and/or the benefits or reasons for owning or using a particular brand. 29) D

Version 1

Many rational motives can be used as the basis for advertising appeals, including comfort, convenience, economy, health, and sensory benefits such as touch, taste, and smell. 30) B Informational/rational appeals focus on a consumer's practical, functional, or utilitarian need for a product or service and emphasize features of a product or service and/or the benefits or reasons for owning or using a particular brand. The content of these messages emphasizes facts, learning, and the logic of persuasion. 31) C Features, benefits, or evaluative criteria that are important to consumers and can serve as the basis of an informational/rational appeal vary from one product or service category to another as well as among various market segments. 32) C The above scenario is an example of a feature appeal. Ads that use a feature appeal focus on the dominant traits of the product or service. 33) B The above scenario uses an emotional appeal that is based on selfesteem and pride. 34) A Ads using feature appeals tend to be highly informative and present the customer with a number of important product attributes or features that will lead to favorable attitudes and can be used as the basis for a rational purchase decision. 35) C

Version 1

A favorable price appeal makes the price offer the dominant point of the message. 36) C In the above scenario, a news appeal is illustrated. News appeals are those in which some type of news or announcement about a product, service, or company dominates an ad. This type of appeal can be used for a new product or service or to inform consumers of significant modifications or improvements. 37) B The above scenario is an illustration of a competitive advantage appeal. When a competitive advantage appeal is used, the advertiser makes either a direct or an indirect comparison to another brand (or brands) and usually claims superiority on one or more attributes. 38) B The above scenario is an illustration of a competitive advantage appeal. When a competitive advantage appeal is used, an advertiser makes either a direct or an indirect comparison to another brand (or brands) and usually claims superiority on one or more attributes. 39) B The above scenario is an illustration of a competitive advantage appeal. When a competitive advantage appeal is used, an advertiser makes either a direct or an indirect comparison to another brand (or brands) and usually claims superiority on one or more attributes. 40) A Ads that use a feature appeal focus on the dominant traits of a product or service. 41) C Version 1

When a competitive advantage appeal is used, an advertiser makes either a direct or an indirect comparison to another brand (or brands) and usually claims superiority on one or more attributes. 42) D In the above scenario, a product popularity appeal has been used. Product/service popularity appeals stress the popularity of a product or service by pointing out the number of consumers who use the brand, the number who have switched to it, the number of experts who recommend it, or its leadership position in the market. 43) D In the above scenario, a product popularity appeal has been used. Product/service popularity appeals stress the popularity of a product or service by pointing out the number of consumers who use the brand, the number who have switched to it, the number of experts who recommend it, or its leadership position in the market. 44) C In the above scenario, a product popularity appeal has been used. Product/service popularity appeals stress the popularity of a product or service by pointing out the number of consumers who use the brand, the number who have switched to it, the number of experts who recommend it, or its leadership position in the market. 45) A In the above scenario, an emotional appeal has been used.The ads were designed to get viewers to look at their expectations and implicit bias. 46) D Emotional appeals relate to customers' social and/or psychological needs for purchasing a product or service.

Version 1

47) A Research shows that positive mood states and feelings created by advertising can have a favorable effect on consumers' evaluations of a brand. 48) C One reason for using emotional appeals is to influence consumers' interpretations of their product usage experience. One way of doing this is through what is known as transformational advertising. 49) D Commercials often rely on the concept of emotional integration, whereby they portray the characters in an ad as experiencing an emotional benefit or outcome from using a product or service. 50) D Commercials often rely on the concept of emotional integration, whereby they portray the characters in an ad as experiencing an emotional benefit or outcome from using a product or service. Ads using humor, sex, and other appeals that are very entertaining, arousing, upbeat, and/or exciting can affect the emotions of consumers and put them in a favorable frame of mind. 51) B Transformational ads create feelings, images, meanings, and beliefs about the product or service that may be activated when consumers use it, transforming their interpretation of the usage experience. 52) C Transformational ads make the experience of using a product richer, warmer, more exciting, and/or more enjoyable than that obtained solely from an objective description of the advertised brand.

Version 1

53) B Transformational ads make the experience of using a product richer, warmer, more exciting, and/or more enjoyable than that obtained solely from an objective description of the advertised brand. 54) B The above scenario is an example of transformational advertising. Transformational ads create feelings, images, meanings, and beliefs about the product or service that may be activated when consumers use it, transforming their interpretation of the usage experience. 55) A Image advertising, which is designed to give a company or brand a unique association or personality, is often transformational in nature. 56) B Image advertising is designed to give a company or brand a unique association or personality and is often transformational in nature. 57) C Consumer purchase decisions are often made on the basis of both emotional and rational motives, and attention must be given to both elements in developing effective advertising. 58) C

Version 1

Transformational ads create feelings, images, meanings, and beliefs about the product or service that may be activated when consumers use it, transforming their interpretation of the usage experience. A transformational ad has two characteristics: It must make the experience of using the product richer, warmer, more exciting, and/or more enjoyable than that obtained solely from an objective description of the advertised brand. It must connect the experience of the advertisement so tightly with the experience of using the brand that consumers cannot remember the brand without recalling the experience generated by the advertisement. 59) B Not every ad fits neatly into the categories of rational or emotional appeals. For example, ads for some brands can be classified as reminder advertising, which has the objective of building brand awareness and/or keeping the brand name in front of consumers. 60) B In the above scenario, the manufacturer is using reminder advertising. Well-known brands and market leaders often use reminder advertising to maintain top-of-mind awareness among consumers in their target markets. For example, marketers of candy products often increase their media budgets and run reminder advertising around Halloween, Valentine's Day, Christmas, and Easter. 61) E In the above scenario, Under Armour used teaser ads as part of its prelaunch campaign. 62) B

Version 1

Well-known brands and market leaders often use reminder advertising to maintain top-of-mind awareness among consumers in their target markets. 63) B Advertisers introducing a new product often use teaser advertising, which is designed to build curiosity, interest, and/or excitement about a product or brand by talking about it but not actually showing it. 64) E The above scenario is an example of teaser advertising. Advertisers introducing a new product often use teaser advertising, which is designed to build curiosity, interest, and/or excitement about a product or brand by talking about it but not actually showing it. 65) D User-generated content (UGC) is ads created by consumers rather than by the company or its agency. 66) C The above scenario is an example of teaser advertising. Advertisers introducing a new product often use teaser advertising, which is designed to build curiosity, interest, and/or excitement about a product or brand by talking about it but not actually showing it. 67) E Teaser campaigns can generate interest in a new product, but advertisers must be careful not to extend them too long or they will lose their effectiveness. 68) A

Version 1

In his famous book on the advertising industry, Madison Avenue, Martin Mayer notes William Bernbach's reply to David Ogilvy's rule for copywriters that "what you say in advertising is more important than how you say it." Bernbach replied, "Execution can become content, it can be just as important as what you say." 69) A One of the most basic types of creative executions is the straight sell or factual message. This type of ad relies on a straightforward presentation of information concerning the product or service. 70) A The straight-sell or factual message type of execution is often used with informational/rational appeals, where the focus of the message is the product or service and its specific attributes and/or benefits. 71) A One of the most basic types of creative executions is the straight-sell or factual message. This type of ad relies on a straightforward presentation of information concerning the product or service. 72) E Indirect headlines are not straightforward about identifying the product or service or getting to the point. They are often more effective at attracting readers' attention and interest because they provoke curiosity and lure readers into the body copy to learn an answer or get an explanation. 73) A One of the most basic types of creative executions is the straight-sell or factual message. This type of ad relies on a straightforward presentation of information concerning the product or service. 74) C

Version 1

In the scientific/technical style of execution, advertisers often cite technical information, results of scientific or laboratory studies, or endorsements by scientific bodies or agencies to support their advertising claims. 75) C The above scenario is an illustration of a technical evidence execution. In case of scientific/technical style of execution, advertisers often cite technical information, results of scientific or laboratory studies, or endorsements by scientific bodies or agencies to support their advertising claims. 76) C The above scenario is an illustration of a scientific evidence execution. In case of scientific/technical style of execution, advertisers often cite technical information, results of scientific or laboratory studies, or endorsements by scientific bodies or agencies to support their advertising claims. 77) B Demonstration advertising is designed to illustrate the key advantages of a product/service by showing it in actual use or in some staged situation. 78) B The above scenario is an illustration of a demonstration execution technique. Demonstration advertising is designed to illustrate the key advantages of a product/service by showing it in actual use or in some staged situation. 79) A Jingles are catchy songs that usually carry the message/theme for a campaign.

Version 1

80) E Many advertisers prefer to have their messages presented by way of a testimonial, where a person praises a product or service on the basis of his or her personal experience with it. 81) B The above scenario is an illustration of a testimonial advertising execution. Many advertisers prefer to have their messages presented by way of a testimonial, where a person praises a product or service on the basis of his or her personal experience with it. 82) D The above scenario is an illustration of a testimonial advertising execution. Many advertisers prefer to have their messages presented by way of a testimonial, where a person praises a product or service on the basis of his or her personal experience with it. 83) E News appeals are those in which some type of news or announcement about the product, service, or company dominates the ad. 84) B The above scenario features an endorsement. Many advertisers prefer to have their messages presented by way of a testimonial, where a person praises a product or service on the basis of his or her personal experience with it. A related execution technique is the endorsement, where a wellknown or respected individual such as a celebrity or expert in a product or service area speaks on behalf of the company or the brand. 85) B

Version 1

A widely used advertising format, particularly for packaged-goods products, is the slice-of-life execution, which is generally based on a problem/solution approach. This type of ad portrays a problem or conflict that consumers might face in their daily lives. 86) B The above scenario is an illustration of a slice-of-life advertisement. A widely used advertising format, particularly for packaged-goods products, is the slice-of-life execution, which is generally based on a problem/solution approach. This type of ad portrays a problem or conflict that consumers might face in their daily lives. The ad then shows how the advertiser's product or service can resolve the problem. 87) B The above scenario is an illustration of a slice-of-life advertisement. A widely used advertising format, particularly for packaged-goods products, is the slice-of-life execution, which is generally based on a problem/solution approach. This type of ad portrays a problem or conflict that consumers might face in their daily lives. The ad then shows how the advertiser's product or service can resolve the problem. 88) D Many advertisers prefer slice-of-life advertising execution because they believe it is effective at presenting a situation to which most consumers can relate and at registering the product feature or benefit that helps sell the brand. 89) B Slice-of-death execution style is used in conjunction with a fear appeal, as the focus is on the negative consequences that result when businesspeople make the wrong decision in choosing a supplier or service provider. Version 1

90) B The above scenario is an illustration of a slice-of-death advertisement. Slice-of-death execution style is used in conjunction with a fear appeal, as the focus is on the negative consequences that result when businesspeople make the wrong decision in choosing a supplier or service provider. 91) E Cartoon animation is especially popular for commercials targeted at children. 92) C An advertising execution approach that has become popular in recent years is animation. With this technique, animated scenes are drawn by artists or created on the computer, and cartoons, puppets, or other types of fictional characters may be used. Cartoon animation is especially popular for commercials targeted at children. 93) D Some advertising executions involve developing a central character or personality symbol that can deliver the advertising message with which the product or service can be identified. Personality figures can also be built around animated characters and animals. 94) B Scientific/technical evidence is presented in the ad to support performance or efficacy claims. 95) C Some advertising executions involve developing a central character or personality symbol that can deliver the advertising message and with which the product or service can be identified. Personality figures can also be built around animated characters and animals. Version 1

96) C Advertising execution involves developing a central character or personality symbol that can deliver the advertising message and with which the product or service can be identified. Personality figures can also be built around animated characters and animals. 97) A Imagery ads are the basis for emotional appeals that are used to advertise products or services where differentiation based on physical characteristics is difficult, such as soft drinks, liquor, designer clothing, and cosmetics. An imagery execution is used when the goal is to encourage consumers to associate the brand with the symbols, characters, and/or situation shown in the ad. 98) A In the above scenario, an imagery execution has been used. An imagery execution is used when the goal is to encourage consumers to associate the brand with the symbols, characters, and/or situation shown in the ad. 99) C An execution technique particularly well suited to television is dramatization, where the focus is on telling a short story with the product or service as the star. 100) A The above scenario features a dramatization execution technique. An execution technique particularly well suited to television is dramatization, where the focus is on telling a short story with the product or service as the star. 101) A

Version 1

The above scenario features a dramatization execution technique that contains a humor quotient. An execution technique particularly well suited to television is dramatization, where the focus is on telling a short story with a product or service as the star. Humorous ads add an element of hilarity in the ad. 102) E The basic components of a print ad are the headline, the body copy, the visual or illustrations, and the layout (the way they all fit together). 103) A The headline is the words in the leading position of the ad—the words that will be read first or are positioned to draw the most attention. 104) E Research has shown the headline is generally the first thing people look at in a print ad, followed by the illustration. 105) A Most advertising people consider the headline the most important part of a print ad. 106) A Direct headlines are straightforward and informative in terms of the message they are presenting and the target audience they are directed toward. 107) A Common types of direct headlines include those offering a specific benefit, making a promise, or announcing a reason the reader should be interested in the product or service. 108) A

Version 1

Direct headlines are straightforward and informative in terms of the message they are presenting and the target audience they are directed toward. Common types of direct headlines include those offering a specific benefit, making a promise, or announcing a reason the reader should be interested in the product or service. 109) B Steve Oakes conducted a review and analysis of research on consumers' cognitive and affective responses to music in advertising. 110) B Indirect headlines rely on their ability to generate curiosity or intrigue so as to motivate readers to become involved with the ad and read the body copy to find out the point of the message. This can be risky if the headline is not provocative enough to get the readers' interest. 111) B The above scenario is an example of an indirect headline. Indirect headlines are not straightforward about identifying the product or service or getting to the point. But they are often more effective at attracting readers' attention and interest because they provoke curiosity and lure readers into the body copy to learn an answer or get an explanation. 112) A Video ads have the highest average click-through rate (1.84 percent) of all digital ad formats but the CTR is still very low. 113) B In the above scenario, the second statement is an example of a subhead. While many ads have only one headline, it is also common to see print ads containing the main head and one or more secondary heads, or subheads. Subheads are usually smaller than the main headline but larger than the body copy. Version 1

114) E Peter Minnium of the Internet Advertising Bureau notes that digital advertising is trifurcating into three types of advertising—concept, content, and commerce ads—and their use varies based on the goals and/or objectives the marketer is trying to achieve all along the purchase funnel. 115) B Native advertisingis a type of paid placement designed to fit seamlessly into the content that surrounds it. The design, content, and writing style of a native ad mirrors the nonpaid content around it, giving the user the impression that it really belongs.  116) C The main text portion of a print ad is referred to as the body copy (or sometimes just copy). 117) C While the body copy is usually the heart of the advertising message, getting the target audience to read it is often difficult. 118) A Many decisions have to be made regarding the visual portion of the ad, which refers to the identification marks that should be included, such as brand name, company or trade name, trademarks, and logos. 119) E A layout is the physical arrangement of the various parts of the ad, including the headline, subheads, body copy, illustrations, and any identifying marks. 120) D

Version 1

The layout of a print ad helps a copywriter determine how much space he or she has to work with and how much copy should be written. 121) B A common method for presenting the audio portion of a commercial is through a voiceover, where the message is delivered or action on the screen is narrated or described by an announcer who is not visible. 122) C Needledrop is an occupational term common to advertising agencies and the music industry. It refers to music that is prefabricated, multipurpose, and highly conventional. It is, in that sense, the musical equivalent of stock photos, clip art, or canned copy. 123) C In the above scenario, a voiceover is used to deliver the message. A common method for presenting the audio portion of a commercial is through a voiceover, where the message is delivered or action on the screen is narrated or described by an announcer who is not visible. 124) D One important musical element in both TV and radio commercials is jingles, catchy songs about a product or service that usually carry the advertising theme and a simple message. 125) D The various elements of a TV commercial are brought together in a script, a written version of a commercial that provides a detailed description of its video and audio content. 126) B

Version 1

Once the basic script has been conceived, the writer and art director get together to produce a storyboard, a series of drawings used to present the visual plan or layout of a proposed commercial. 127) C The postproduction stage includes activities and work that occurs after a commercial has been filmed and recorded. 128) A A common criticism of TV commercials is that so much emphasis is placed on creative execution that an advertiser's message gets overshadowed. Many creative, entertaining commercials have failed to register the brand name and/or selling points effectively. 129) C While evaluating creative output, marketers have to consider whether an ad is truthful, as well as whether it might offend consumers. 130) B While evaluating creative output, marketers should not aim to be consistent with competitors. 131) A While evaluating creative output, marketers have to consider whether an ad is truthful, as well as whether it might offend consumers.

Version 1

CHAPTER 10 TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) The lack of audience information is a greater problem for big advertisers/markets than it is for small advertisers/markets. ⊚ ⊚

true false

There is a strong correlation between social engagement and higher tune-in rates. ⊚ ⊚

true false

3) Availability of new media and the rising costs of media are internal factors that influence media decisions. ⊚ ⊚

true false

Media objectives are ends in themselves. ⊚ ⊚

true false

5) One exposure of an ad to a target group within a purchase cycle has little or no effect in most circumstances. ⊚ ⊚

true false

Pass-along estimates are very subjective and using them to estimate reach is speculative. ⊚ ⊚

Version 1

true false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 7) The term ________ refers to the available delivery systems, which include broadcast and print media, outdoor advertising, and other support media, for marketing messages. A) media strategies B) target market C) medium D) coverage E) distribution

8) In the media plan development process, the purpose of which part is to understand the marketing problems? A) marketing strategy plan B) creative strategy plan C) situation analysis D) communication plan

9) During which stage of the media plan development process is the choice made to use sole or shared sponsorship? A) marketing strategy plan B) creative strategy plan C) situation analysis D) media use decisions

10) If a product has an index number over 100, it means that the use of the product is proportionately greater in that segment than in one that is

Version 1

A) higher than average. B) average. C) lower than average. D) unable to be determined.

11)

What is the first step in the promotional planning process? A) establishment of media objectives B) market analysis C) media strategy development D) evaluation and follow-up

12)

What index is based on population, effective buying income, and total retail sales? A) brand development index B) survey of buying power index C) category development index D) media channel index

13) Which index uses information about the product category in the numerator to understand the development potential of the total product category? A) brand development index B) survey of buying power index C) category development index D) media channel index

14)

Which term means the goals of a media program?

Version 1

A) communication objectives B) strategy objectives C) media objectives D) channel objectives

15) Which scheduling method ensures the development of a regular and continuous pattern without gaps or nonadvertising periods? A) continuity B) flighting C) pulsing D) consistency

16)

High costs and potential overexposure are drawbacks for which type of scheduling? A) flighting B) pulsing C) consistency D) continuity

17)

What is calculated as reach x frequency? A) target ratings points B) gross ratings points C) coverage ratings points D) overexposure ratings points

18)

Magazines use which measure to determine the cost effectiveness of advertisements?

Version 1

A) cost per inch B) cost per rating C) cost per thousand D) cost per issue

19)

What is the term for the number of people who read a magazine without buying it? A) readership rate B) pass-along rate C) readers per copy D) total reach

20)

Which of the following is an advantage of radio advertisements? A) audio only B) clutter C) flexibility D) attention

21)

Which of the following is a disadvantage of direct-mail advertising? A) clutter B) selectivity C) high information content D) repeat exposures

22)

Which of the following is an advantage of television advertising?

Version 1

A) message life B) cost per exposure C) selectivity D) production cost

23)

Which of the following is a disadvantage of digital/interactive media? A) direct selling B) interactive platform C) potential for deception D) interactive relationship

24) The primary objective of ________ is to develop a framework that will deliver a message to the target audience in the most efficient, cost-effective manner possible. A) media planning B) market segmentation C) target marketing D) organizational planning E) a communication hierarchy

25) ________ is the series of decisions involved in delivering a promotional message to the prospective purchasers and/or users of a product or brand. A) Market segmentation B) Media planning C) Product differentiation D) Brand positioning E) Target diversification

26)

A media plan is a guide for

Version 1

A) development of creative objectives. B) media selection. C) sales forecasting. D) marketing research activities. E) media studies.

27)

________ are plans of action designed to achieve specific media objectives. A) Media goals B) Media services C) Media strategies D) Media vehicles E) Media designs

28) A ________ is the general category of available delivery systems, which includes broadcast media, print media, direct marketing, outdoor advertising, and other support media. A) transit B) reach C) conduit D) medium E) niche

29) Flair, a women's magazine, features an ad for Elvira watches. Being a specific carrier within a medium category, Flair is known as a A) conduit. B) mobile channel. C) distribution channel. D) transit channel. E) media vehicle.

Version 1

30) Chef's Delight is a television show hosted by Kevin Bacon. If the show is a specific carrier of messages within the television medium, it is referred to as a A) media frequency. B) media segment. C) media vehicle. D) media strategy. E) media symbol.

31)

Which of the following is an example of a media vehicle? A) a television set B) a fashion magazine C) direct marketing D) newspaper advertising E) an outdoor billboard

32) ________ is a measure of the number of different audience members exposed at least once to a media vehicle in a given period of time. A) Contact B) Reach C) Viewer number D) Coverage E) Exposure

33) ________ refers to the potential audience that might receive a message through a media vehicle.

Version 1

A) Frequency B) Reach C) Viewer number D) Coverage E) Exposure

34) ________ is the number of times a receiver is exposed to a media vehicle in a given time period. A) Potency B) Reach C) Coverage D) Frequency E) Audience contact

35)

A ________ determines the best way to get an advertiser's message to the market. A) distribution plan B) coverage plan C) frequency level D) media plan E) reach strategy

36)

Which of these factors reduces the effectiveness of a media plan? A) information overload B) product life cycle differences C) market segmentation D) time pressures E) audience diversity

Version 1

37) Listenership of Volatile Heat FM was measured during the months of February, July, and October to set the advertising rates. These audience measures conducted at specific time periods are known as A) sweeps periods. B) GRP flighting periods. C) frequency estimates. D) availabilities. E) upgraded media scheduling.

38)

The first step in developing a media plan is the A) market analysis. B) establishment of media objectives. C) media strategy development and implementation. D) evaluation and follow-up. E) advertising campaign development.

39) In a market analysis, the ________ is considered a good indicator of the potential of the market. It is derived by dividing the percentage of users in a demographic segment by the percentage of population in the same segment and then multiplying the quotient by 100. A) cost per media (CPM) B) quantitative advantage C) index number D) average frequency E) relative reach

40)

An index number of 100 means that the

Version 1

A) use of a product is proportionately greater than average in a segment. B) market segment being analyzed is average. C) use of a product is proportionately less than average in a segment. D) probability of wasted coverage is 100 percent. E) probability of success in the market is 100 percent.

41) Which of the following is considered an internal factor that may influence the determination of media strategy? A) the size of the media budget B) competitive factors C) changes in technology D) the development of new media E) he rising costs of media

42) Which of the following is considered an external factor that may influence the determination of media strategy? A) administrative capabilities B) the rising costs of media C) size of the media budget D) delegation of agency tasks E) organization of an agency

43) The market potential in a given metropolitan area relative to the United States as a whole can be determined by using the A) Nielsen rating index. B) BAR/LNA. C) brand development index (BDI). D) category development index (CDI). E) survey of buying power index.

Version 1

44) When used in combination with other market information, the survey of buying power index helps a marketer determine A) the geographic areas to target. B) demographic characteristics of the target population. C) lifestyle characteristics of the target population. D) consumer behavior. E) psychographic characteristics of the target population.

45) Which of the following sources of information should be used by a media buyer wishing to acquire statistical information for a specific metropolitan market? A) Simmons Market Research Bureau B) Mediamark Research Inc. C) survey of buying power index D) BAR/LNA E) Standard Rates and Data Service

46)

The rate of product usage in a geographical area can be calculated through the use of A) gross rating points. B) reach and frequency. C) the brand development index. D) the benchmark designated index. E) the category development index.

47) Regal Foods Corp., a packaged foods manufacturer, wishes to determine the percentage of Umber coffee sold in a geographic area as compared to the percentage of the total population in this market. The most appropriate index to use would be the

Version 1

A) survey of buying power index. B) brand development index. C) category development index. D) Dow Jones sustainability index. E) consumer price index.

48) To determine the potential for sales of coffee, as opposed to a specific brand, in a particular market area, a company should use the A) brand development index. B) category development index. C) survey of buying power index. D) Dow Jones sustainability index. E) consumer price index.

49) The category development index is similar to the brand development index (BDI) except that it A) uses information about a product category. B) categorizes consumers according to their demographic characteristics. C) is concerned with companies and not with products. D) is tied to an economic index. E) categorizes consumers according to their psychographic characteristics.

50) After calculating both the brand development index (BDI) and the category development index (CDI), a media planner obtains the following results: high BDI and low CDI. Which of the following information can be deduced from this data?

Version 1

A) good sales potential for both product and brand B) low market share for product but good market potential C) good market to advertise in but requires sales decline monitoring D) product category has high potential and brand is performing well E) poor market for advertising and potential for loss

51) After calculating both the brand development index (BDI) and the category development index (CDI), a media planner obtains the following results: high BDI and high CDI. Which of the following is likely to be true of the product class and the product? A) high market share and good market potential B) low market share and good market potential C) high market share requiring monitoring for sales decline D) low market share and poor market potential E) high market share but not a good market to advertise in

52) After calculating both the brand development index (BDI) and the category development index (CDI), a media planner obtains the following results: low BDI and low CDI. Which of the following is likely to be true of the product class and the product? A) high market share and good market potential B) low market share and good market potential C) high market share requiring monitoring for sales decline D) low market share and poor market potential E) high market share but not a good market to advertise in

53) After calculating both the brand development index (BDI) and the category development index (CDI), a media planner obtains the following results: low BDI and high CDI. Which of the following information can be deduced from this data?

Version 1

A) high market share; good market potential B) low market share; good market potential C) high market share; monitoring required for sales decline D) low market share; poor market potential E) high market share; not a good market to advertise in

54) Which of the following situations offers an advertiser the least attractive marketing opportunity? A) high brand development index (BDI) and high category development index (CDI) B) high brand development index (BDI) and low category development index (CDI) C) low brand development index (BDI) and high category development index (CDI) D) low brand development index (BDI) and low category development index (CDI) E) high survey of buying power index and high brand development index (BDI)

55) Helios Inc. has a low market share for its Achilles range of running shoes in the South Atlantic region. Which index reflects this information? A) low brand development index (BDI) B) high brand development index (BDI) C) low category development index (CDI) D) high category development index (CDI) E) high survey of buying power index (BPI)

56) A company's goal to reach 50 percent of the target audience at least three times over a period of one year in order to create awareness is an example of A) a media objective. B) a needledrop. C) a medium integration. D) a corporate vision. E) an advertising vision.

Version 1

57) Fabian wants to create awareness in the target market by creating a positive brand image through mood and creativity. This is an example of A) a media objective. B) a needledrop. C) a medium integration. D) a corporate vision. E) an advertising vision.

58)

When the range of a media exceeds the targeted audience, the excess is referred to as A) frequency surplus. B) flighting. C) waste coverage. D) geographical excess. E) oversaturation.

59) If media coverage reaches people who are not sought as buyers and are not potential users, then it is referred to as A) rate differentials. B) pass-along audience problems. C) excess frequency. D) waste coverage. E) weighted exposure.

60)

Which of the following ads would most likely result in waste coverage?

Version 1

A) an ad for custom-build concession food trailers appearing in a trade journal B) a B2B ad appearing in a general fashion magazine C) a commercial for a soda drink appearing on a music channel D) a sports shoes commercial aired during a live telecast of a basketball game E) an ad for an organic fertilizer in a farm publication magazine

61)

Which of the following statements is true of the media mix?

A) It is not possible to use only one medium or vehicle to deliver a message. B) The characteristics of a product help in determining the combination of media that should be used. C) Individual preferences have no effect on the combination of media to be used to deliver a message. D) Advertisers use the media mix to maintain uniformity across all advertising media. E) By employing a media mix, advertisers can lower the versatility to their media strategies resulting a in high amount of clutter.

62) Which of the following positions in a company is likely to be responsible for determining which target markets should receive the most media emphasis? A) research manager B) account executive C) brand manager D) media planner E) market research analyst

63) Hot sauce usage in the United States is generally concentrated in the region spanning west from Louisiana to New Mexico and north to the Arkansas-Missouri border. A producer of hot sauce would use this information to schedule by using

Version 1

A) flighting. B) continuity. C) geographical weighting. D) intermittent frequency. E) pulsing.

64) When the most effective media exposes people who are not sought, waste coverage is still justified because A) it best supports a flighting media schedule. B) the cost of the waste coverage is exceeded by the value gained from their use. C) it allows for more specific targeting of a market segment. D) the media enables repetition which is an effective method for pioneering advertising. E) it supports a market aggregation strategy.

65) The primary objective of ________ is to time promotional efforts of a company so that they will coincide with the highest potential buying times. A) sweeps period B) scheduling C) waste coverage D) frequency estimation E) sales forecasting

66) Which of the following techniques is most suitable for scheduling seasonal products such as Mother's Day cards and Valentine's Day candy? A) weighted ratings B) oscillating C) flighting D) pulsing E) continuity

Version 1

67) In a(n) ________ scheduling method, a regular pattern of advertising is developed without gaps or nonadvertising periods on an ongoing basis without regard for seasonality. A) flighting B) oscillating C) pulsing D) continuity E) weighted ratings

68) In the beer industry, advertising continues throughout the year but may increase at holiday periods such as Memorial Day, Labor Day, or the Fourth of July. This industry uses a(n) ________ schedule. A) flighting B) oscillating C) pulsing D) continuity E) weighted ratings

69) Television commercials for Halo laundry detergent are aired several times a day, on various cable networks, throughout the year. Advertisers of Halo believe that this will serve as a constant reminder of the brand to the consumers. Media planners of Halo are likely to be using a(n) ________ scheduling method. A) pulsing B) continuity C) flighting D) oscillating E) weighted ratings

70) Television commercials for Burton snow skis are run heavily between October and April; much less in May, August, and September; and not at all in June or July. Burton is using a(n) ________ scheduling method. Version 1

A) pulsing B) continuity C) flighting D) oscillating E) weighted ratings

71) Which of the following media scheduling strategies would most likely be used by a marketer of dishwashing detergent? A) ratings B) share C) flighting D) pulsing E) continuity

72) For which of the following products is an advertiser most likely to use continuity scheduling? A) swimming pool chemicals B) flea collars C) cake mixes D) wood-burning stoves E) tickets to professional basketball games

73) ________ is a scheduling method that employs a less-regular schedule with intermittent periods of advertising and nonadvertising. A) Weighting B) Continuity C) Pulsing D) Flighting E) Circulation

Version 1

74) Warm Weave Inc., a manufacturer of woolen garments, spends heavily on advertising during the months of December, January, and February. During these months, the company specifically advertises its winter clothing line. Warm Weave is most likely to be using a(n) ________ scheduling method. A) continuity B) weighting C) flighting D) circulation E) oscillating

75) For which of the following products is an advertiser most likely to use a flighting schedule? A) cake mixes B) shampoo C) newspaper subscriptions D) snow tires E) candles

76) When a product's advertising schedule involves constant advertising with heavier efforts being made at certain times, a(n) ________ schedule is being employed. A) intermittent B) continuity C) flighting D) weighting E) pulsing

77) Manufacturers of recreation vehicles advertise throughout the year but typically advertise heavily in June and September. Which scheduling method does this pattern represent?

Version 1

A) flighting B) geographical weighting C) continuity D) oscillating E) pulsing

78) Patron's Paradise, an amusement park, advertises itself as a vacation spot throughout the year, but it advertises heavily during the summer months and during the Christmas season when more people are likely to take a vacation. This is an example of ________ scheduling. A) flighting B) geographical weighting C) continuity D) oscillating E) pulsing

79) Which of the following statements correctly describes an advantage inherent in the flighting method of scheduling? A) With flighting, there is no danger of wearout. B) Flighting creates cost efficiency by using advertising only during purchasing periods. C) Flighting helps in continuous advertising which in turn creates refutational appeal. D) Flighting enables retention of promotional messages by alternating periods of high and low advertising weight. E) Flighting serves as a constant reminder to consumers.

80)

Which of the following statements is true of the flighting scheduling method?

Version 1

A) It results in a lack of awareness of promotional messages during nonscheduled times. B) It prohibits inclusion of more than one medium or media vehicle for advertising. C) It usually results in high costs and overexposure. D) It has a decreased likelihood of wearout. E) It follows a continuous pattern of advertising without gaps or nonadvertising periods.

81)

Which of the following statements is true of the continuity scheduling method? A) It serves as a constant reminder to consumers. B) It is a cost-efficient method of scheduling advertising. C) It allows unlimited media allocation. D) It is a combination of flighting and pulsing scheduling methods. E) It results in a lack of interest of promotional messages during nonscheduled times.

82)

New brands or products need very high levels of reach A) in order to minimize the waste coverage. B) to make all potential buyers aware of the new entry. C) because they have an associated problem of overexposure. D) since they have low brand and category development indices. E) to facilitate continuity scheduling.

83) Juno Inc., a confectionery company, introduces a new line of peanut brittle. The company wants to make all its potential customers aware of its new product. The company should concentrate on A) maximizing frequency. B) maximizing reach. C) maximizing coverage. D) using maximum continuity. E) using a pulsing push strategy.

Version 1

84)

Which of the following statements is true about advertising reach? A) Reach refers to the number of times a viewer is exposed to an ad. B) Reach of a media vehicle can be defined as the "opportunities to see" an ad. C) Frequency level expressed in a media plan overstates the actual level of reach to an

ad. D) The actual exposure to an ad is referred to as reach of a media vehicle. E) Reach is of trivial importance at later stages of the adoption hierarchy.

85) Whizz Soda aired its TV commercial during the season premiere of Detective Drake. Subsequently, it also aired the commercial during the following program, which was a reality show. A certain percentage of people viewed both programs and were exposed to the ad twice. This overlap is referred to as A) duplicated reach. B) facsimile promotion. C) advertising replication. D) duplicated frequency. E) flighting.

86) If an ad is placed on two TV shows, the total number of people exposed only once is referred to as A) coverage. B) unduplicated reach. C) duplicated reach. D) frequency. E) program rating.

87)

The overlap that occurs when the same people see an ad twice is referred as

Version 1

A) coverage. B) unduplicated reach. C) duplicated reach. D) frequency. E) program rating.

88)

Unduplicated reach indicates A) buying intentions. B) the extent of consumer awareness. C) the amount of waste coverage. D) an estimate of frequency. E) potential new exposures.

89)

Duplicated reach A) indicates potential new exposures. B) reduces waste coverage. C) reinforces immediate purchasing behavior. D) provides an estimate of frequency. E) lowers consumer awareness.

90) Most viewers of the sitcom Blonde Dream also watch Euphony, a music-based reality show, which is broadcast immediately after Blonde Dream. An ad for Savor chocolates placed during both of these shows would most likely result in A) unduplicated reach. B) average coverage. C) increased sweeps periods. D) duplicated reach. E) high cost per thousand.

Version 1

91) A measure of potential reach in the broadcast industry that is expressed as a percentage is the TV or radio A) sweeps periods. B) frequency. C) index numbers. D) duplicated reach. E) program rating.

92)

Gross ratings points (GRPs) can be calculated by A) multiplying reach times frequency of exposure. B) dividing reach times frequency by costs. C) multiplying cost per thousand (CPM) times average frequency. D) dividing average frequency by costs. E) adding reach and frequency and dividing by cost per thousand (CPM).

93)

Overexposure, or ________, is when media coverage exceeds the targeted audience. A) geographic coverage B) partial market coverage C) pulsing coverage D) waste coverage E) full market coverage

94) ________ is a summary measure that combines a program rating and the average number of times a home is reached during this period.

Version 1

A) Brand development index B) Program rating C) Category development index D) Target ratings points E) Gross ratings points

95) ________ are based on the total audience a media schedule may reach using a duplicated reach estimate. A) Gross rating points (GRPs) B) Target rating points (TRPs) C) Total target rating points (TTRPs) D) Sweeps periods E) Coverage frequencies

96) ________ refers to the number of persons in the primary target audience whom a media buy will reach and the number of times those persons will be reached. A) Target ratings points B) Gross ratings points C) Target frequencies D) Effective target reach E) Total market coverage

97) Which of the following statements best explains a difference between target ratings points (TRPs) and gross rating points (GRPs)?

Version 1

A) TRPs calculations use average frequency figures, whereas GRPs calculations do not. B) TRPs calculations do not include waste coverage, whereas GRPs calculations do. C) TRPs calculations use a duplicated reach estimate, whereas GRPs calculations do not. D) TRPs are used when selecting broadcast media, and GRPs are used for selecting print media. E) TRPs are used to indicate the total market coverage ratio, whereas GRPs are used to indicate primary market coverage ratio.

98) The concept of ________ is based on the assumption that one exposure to an ad may not be enough to convey a desired message. A) average frequency B) average reach C) effective reach D) GRP E) effective frequency

99)

Effective reach refers to the

A) percentage of people in the primary target audience a media buy reaches effectively. B) percentage of people who see and respond to an ad through purchase action. C) percentage of people in the target audience who can recall an ad after being exposed to the ad once. D) percentage of a media vehicle's audience reached at each effectual frequency increment. E) number of times an ad appears in prime-time television.

100) Which of the following statements is true of the effects of reach and frequency of a media vehicle?

Version 1

A) Fewer than eight exposures is considered insufficient reach. B) More than 10 exposures are considered to be effective reach in most circumstances. C) The central goal of productive media planning should be to enhance frequency rather than reach. D) Evidence suggests that an exposure rate of one within a purchase cycle is an effective level. E) Frequency response principles or generalizations vary by medium.

101) ________ is a figure used by advertisers that represents the medial number of times the target audience reached by a media schedule is exposed to a media vehicle over a specified period. A) Effective reach B) Unduplicated reach C) Average reach D) Average frequency E) Effective frequency

102) Which of the following statements is true of marketing factors important in determining frequency levels as recommended by Joseph Ostrow? A) The higher the brand share, the higher the frequency level required. B) The higher the loyalty, the higher the frequency level required. C) Higher frequency levels are required when competitive noise is absent. D) The ability of a target group to learn and to retain messages has a direct effect on frequency. E) Products used daily or more often need to be replaced quickly, so a lower level of frequency is desired.

103) Which of the following is an example of a marketing factor that has been shown to be important in determining advertising frequency levels?

Version 1

A) message uniqueness B) clutter C) purchase and usage cycles D) media scheduling E) message complexity

104)

Which of the following is a creative factor that is used in determining frequency levels? A) message variation B) target group C) clutter D) attentiveness E) scheduling

105)

Recency planning focuses on A) continuous scheduling over a one-week period. B) frequency rather than reach. C) short interval reach at maximum frequency levels. D) more targeting to gain exposure to reach as many potential consumers as possible. E) a four-week planning period for reach.

106) Non-seasonal products, like laundry detergents or toiletries, are likely to use a ________ pattern of advertising. A) flighting B) continuity C) pulsing D) direct E) indirect

Version 1

107) The ________ of a medium or media vehicle is the actual total cost required to place an advertising message. A) net contribution margin B) net cost C) absolute cost D) relative cost E) cost per media (CPM)

108) ________ refers to the relationship between the price paid for advertising time or space and the size of the audience delivered. A) Net contribution margin B) Net cost C) Absolute cost D) Relative cost E) Cost per media (CPM)

109) ________ refers to the relationship between the price paid for advertising time and the size of the audience delivered and is also used to compare media vehicles. A) Net contribution margin B) Net cost C) Absolute cost D) Relative cost E) Cost per media (CPM)

110) Computation of cost breakdowns on the basis of cost per thousand people reached is typically seen in the ________ industry.

Version 1

A) interactive media B) radio C) magazine D) television E) newspaper

111) The primary objective of ________ is to time promotional efforts so that they will coincide with the highest potential buying times. A) scheduling B) reach C) frequency D) mood E) budgeting

112) Which of the following parameters does the formula for the computation of cost per thousand (CPM) take into account? A) cost of ad space B) program rating C) cost of commercial time D) daily inch rate E) cost of 1 unit of time

113) In media planning, the cost of ad space divided by circulation and multiplied by 1,000 is the formula used to calculate A) index number. B) cost per thousand. C) absolute cost. D) category development index. E) brand development index.

Version 1

114) Which of the following parameters does the formula for the computation of cost per ratings point (CPRP) take into account? A) circulation B) cost per repetition C) cost per thousand D) cost of ad space E) cost of commercial time

115) In media planning, the cost of the commercial time divided by the program rating is the formula used to calculate A) cost per thousand. B) brand index number. C) category development index. D) gross rating point. E) cost per point.

116) For newspapers, the cost-efficiency formula to determine the relative cost of the media is based on A) the pass-along rate. B) gross rating points. C) column inches. D) the daily inch rate. E) absolute reach.

117)

Which of the following media uses cost per ratings point to compare cost figures?

Version 1

A) magazine B) transit C) newspaper D) billboard E) television

118) In an attempt to standardize relative costing procedures, the broadcast and newspaper media have begun to provide A) costs per point. B) costs per CRPs. C) gross rating points. D) costs per thousand. E) costs per circulation.

119)

Which of the following statements is a drawback of the cost-per-thousand system? A) It fails to standardize relative costing procedures. B) It does not provide a comparison of media. C) It may overestimate or underestimate the actual cost-effectiveness. D) It does not include the TCPM system. E) It fails to include the brand development index.

120) ________ calculates the cost per thousand based on the target audience rather than the overall audience. A) BDI B) CDI C) Target CPM D) Target market segmentation E) Target buying power index

Version 1

121) A marketer of running shoes wants to use a cost-effective method to reach its potential buyers with minimum waste coverage. The marketer should use a medium that A) has coverage of the overall audience. B) reaches more potential receivers even though it has a high cost per thousand. C) has a low cost per thousand. D) has high absolute and low relative costs for advertising and promoting the product. E) has a high pass-along rate.

122)

Which of the following statements is true of TCPM? A) It calculates CPMs based on the target audience. B) It calculates longevity of magazine circulations. C) It calculates BDIs based on overall audience. D) It calculates CPMs based on the overall audience. E) It calculates the cost of using one unit of time.

123) Advertisers include ________ in the readers-per-copy figures to estimate the number of people who read a magazine without buying it. A) pass-along rates B) cost per point C) frequency estimates D) gross ratings points E) average frequency index

124)

Which of these factors leads to an underestimation of actual reach?

Version 1

A) changes in daily inch rates B) cost per page variations C) pass-along rates D) ineffective CPP estimations E) variations in the TCPM

125)

The pass-along rate refers to the A) newspaper advertising rate charged to manufacturers by retailers placing ads for

them. B) television advertising rate charged to national advertisers. C) number of persons to whom a magazine copy has been given and who have read it. D) magazine advertising rate for throw-away publications. E) percentage of people who skip over an ad while reading a publication.

126)

The major problem with the use of readers-per-copy figures is A) determining pass-along rates. B) determining the time spent reading a magazine. C) calculating cost estimates efficiently. D) determining an efficient way to estimate the effects of sweeps periods. E) calculating costs per ratings point.

127)

Which of the following is an advantage associated with newspaper advertising? A) longer life B) short lead time for placing ads C) high reproduction quality D) wide reader exposure E) lack of clutter

Version 1

128)

Which of the following is a disadvantage associated with radio advertising? A) high production costs B) low audience segmentation C) high clutter D) low frequency E) low flexibility

129)

Which of the following is an advantage associated with direct-mail advertising? A) low selectivity B) high repetition C) low cost per exposure D) low level of clutter E) opportunities for repeat exposures

130) When trying to attain mass coverage of the entire U.S. market, which of the following forms of advertising would be most effective? A) transit B) television C) newspaper D) outdoor E) magazine

131) Which of the following media is described as having few valid measurement techniques, a flexible message platform, and a direct selling potential?

Version 1

A) television B) interactive media C) radio D) direct mail E) newspapers

132) Vera was looking for an advertising medium that was location specific and had high repetition so she could raise awareness of her new apothecary in the local market. Which medium offers these advantages? A) television B) interactive media C) outdoor D) direct mail E) newspapers

Version 1

Answer Key Test name: Chap 10_12e 1) FALSE The lack of information is a greater problem for small advertisers, or smaller markets, which may not be able to afford to purchase the information they require. As a result, their decisions are based on limited or out-of-date data that were provided by the media themselves or no data at all. 2) TRUE Social media usage takes time away from some people that they might otherwise use to watch TV. But it can also drive others to watch. 3) FALSE Internal factors may involve the size of the media budget, managerial and administrative capabilities, or the organization of the agency. External factors may include the economy (the rising costs of media), changes in technology (the availability of new media), competitive factors, and the like. 4) FALSE The media objectives are not ends in themselves. Rather, they are designed to lead to the attainment of communications and marketing objectives. Media objectives are the goals for the media program and should be limited to those that can be accomplished through media strategies. 5) TRUE One exposure of an ad to a target group within a purchase cycle has little or no effect in most circumstances. Version 1

6) TRUE While research is conducted to determine pass-alongs, pass-along estimates are subjective. 7) C Media strategies are specific plans of action designed to attain the media objectives. The medium is the general category of available delivery systems, which includes broadcast media (like TV and radio), print media (like newspapers and magazines), direct marketing, outdoor advertising, and other support media. 8) C The purpose of a situation analysis is to understand the marketing problems. Once this is accomplished, a marketing strategy plan is created to solve one or more of the marketing problems. This is followed by formulating a creative strategy plan that determines what to communicate through advertisements. 9) D Specific details such as the kind of sponsorship (sole, shared, participating, or other) are determined later during the stage of media use decisions. Other decisions made at this stage include the levels of reach and frequency required, on which days and months the commercial will appear, and the placement of spots. 10) C The index number is considered a good indicator of the potential of the market. An index number over 100 means use of the product is proportionately greater in that segment than in one that is average (100) or less than 100. 11) B Market analysis is the first stop in the promotional planning process. Version 1

12) B The survey of buying power index is conducted for every major metropolitan market in the United States and is based on a number of factors, including population, effective buying income, and total retail sales in the area. Each of these factors is individually weighted to drive a buying power index that charts the potential of a particular metro area, county, or city relative to the United States as a whole. 13) C The brand development index (BDI) compares the percentage of the brand's total U.S. sales in a given market area with the percentage of the total population in the market to determine the sales potential for that brand in that market area. The category development index (CDI) is computed in the same manner as the BDI, except it uses information regarding the product category (as opposed to the brand) in the numerator. 14) C The media objectives are not ends in themselves. Rather, they are designed to lead to the attainment of communications and marketing objectives. Media objectives are the goals for the media program and should be limited to those that can be accomplished through media strategies. 15) A Continuity scheduling results in a continuous pattern of advertising. 16) D Since the continuity method employs a regular (continuous) pattern without gaps or nonadvertising periods, the costs involved are high. Another possible drawback is the possibility of overexposure. 17) B Version 1

Gross ratings points = reach x frequency. 18) C Magazines use the cost-per-thousand formula to determine relative costs. 19) B Magazine advertising space sellers want to use the number of readers per copy as the true circulation, including the pass-along rate, an estimate of the number of people who read the magazine without buying it. 20) C Radio advertisements have better flexibility than magazine advertisements. 21) A One of the drawbacks of direct-mail advertisements is clutter. It also involves high costs per contact. 22) B One advantage of television advertising is the low cost per exposure. However, it does have a high absolute cost and higher production costs compared to other forms of media. 23) C The potential for deception is high in digital/interactive media. 24) A The primary objective of a media plan is to develop a framework that will deliver a message to the target audience in the most efficient, costeffective manner possible—that will communicate what a product, brand, and/or service can do. 25) B

Version 1

Media planning is the series of decisions involved in delivering a promotional message to the prospective purchasers and/or users of a product or brand. 26) B A media plan is a guide for media selection. 27) C A media plan is a guide for media selection. It requires development of specific media objectives and specific media strategies (plans of action) designed to attain these objectives. 28) D A medium is the general category of available delivery systems, which includes broadcast media (like TV and radio), print media (like newspapers and magazines), direct marketing, outdoor advertising, and other support media. 29) E This magazine is an example of a media vehicle. A media vehicle is a specific carrier within a medium category. 30) C The TV show is an example of a media vehicle. A media vehicle is a specific carrier within a medium category. For example, Vanity Fair and In Style are print vehicles; The Voice and 60 Minutes are broadcast vehicles. 31) B A fashion magazine is a type of media vehicle. A media vehicle is a specific carrier within a medium category. For example, Vanity Fair and In Style are print vehicles; The Voice and 60 Minutes are broadcast vehicles. Version 1

32) B Reach is a measure of the number of different audience members exposed at least once to a media vehicle in a given period of time. 33) D Coverage refers to the potential audience that might receive a message through a media vehicle. 34) D Frequency refers to the number of times a receiver is exposed to a media vehicle in a specified period. 35) D A media plan determines the best way to get an advertiser's message to the market. 36) D A number of problems contribute to the difficulty of establishing a media plan and reduce its effectiveness. These problems include insufficient information, inconsistent terminologies, time pressures, and difficulty measuring effectiveness. 37) A This scenario is an example of sweeps periods. There are problems with some measures of audience size in other media as well. The timing of measurements is also a problem; some audience measures are taken only at specific times of a year. For example, sweeps periods in February, May, July, and November are used for measuring TV audiences and setting advertising rates. 38) A Developing the media plan begins with a market analysis. It is performed with a focus on media and delivering the message. Version 1

39) C An index number is considered a good indicator of the potential of the market. This number is derived from the formula: Index = (Percentage of users in a demographic segment/Percentage of population in the same segment) × 100. 40) B An index number over 100 means use of a product is proportionately greater in that segment than in one that is average (100) or less than 100. 41) A Internal factors may involve the size of the media budget, managerial and administrative capabilities, or the organization of the agency. 42) B External factors may include the economy (the rising costs of media), changes in technology (the availability of new media), competitive factors, and the like. 43) E The survey of buying power index is conducted for every major metropolitan market in the United States. Each of these factors is individually weighted to drive a buying power index that charts the potential of a particular metro area, county, or city relative to the United States as a whole. 44) A When used in combination with other market information, the survey of buying power index helps a marketer determine which geographic areas to target. 45) C

Version 1

The survey of buying power index is conducted for every major metropolitan market in the United States and is based on a number of factors, including population, effective buying income, and total retail sales in the area. 46) C The brand development index (BDI) helps marketers factor the rate of product usage by geographic area into the decision process. 47) B In this scenario, a brand development index (BDI) should be used. The BDI helps marketers factor the rate of product usage by geographic area into the decision process. The BDI compares the percentage of a brand's total U.S. sales in a given market area with the percentage of the total population in the market to determine the sales potential for that brand in that market area. 48) B In this case, the category development index (CDI) should be used. The CDI is computed in the same manner as the brand development index (BDI), except it uses information regarding the product category (as opposed to the brand) in the numerator. 49) A The category development index (CDI) is computed in the same manner as the brand development index (BDI), except it uses information regarding a product category (as opposed to a brand). 50) C High BDI and low CDI indicate that a particular product category is not selling well, but a brand is; probably indicating a good market to advertise in but that should be monitored for declining sales.

Version 1

51) A High BDI and high CDI represent good sales potential for both the product category and the brand. 52) D Low BDI and low CDI indicate that both the product category and the brand are doing poorly; not likely to be a good place for advertising. 53) B Low BDI and high CDI indicate that the product category shows high potential but the brand is not doing well; the reasons should be determined. 54) D Low BDI and low CDI indicate that both the product category and the brand are doing poorly; not likely to be a good place for advertising. 55) A This scenario is an illustration of a low brand development index (BDI). A low BDI indicates a low market share of a brand in a given market. 56) A Media objectives are the goals for a media program and should be limited to those that can be accomplished through media strategies. 57) A Media objectives are the goals for a media program and should be limited to those that can be accomplished through media strategies. 58) C A marketer is faced with a problem of overexposure (also called waste coverage), in which the media coverage exceeds the targeted audience. If media coverage reaches people who are not sought as buyers and are not potential users, then it is wasted. Version 1

59) D A marketer is faced with a problem of overexposure (also called waste coverage), in which the media coverage exceeds the targeted audience. If media coverage reaches people who are not sought as buyers and are not potential users, then it is wasted. 60) B A business-to-business (B2B) ad appearing in a general fashion magazine will most likely result in waste coverage. A marketer is faced with a problem of overexposure (also called waste coverage), in which the media coverage exceeds the targeted audience. If media coverage reaches people who are not sought as buyers and are not potential users, then it is wasted. 61) B The objectives sought, the characteristics of a product or service, the size of the budget, and individual preferences are just some of the factors that determine what combination of media will be used. 62) D A media planner determines which target markets should receive the most media emphasis. 63) C The information available in the above scenario will enable the producer of hot sauce to use geographical weighting. The objective of weighting certain geographic areas more than others makes sense, and the strategy of exerting more promotional efforts and dollars in those areas follows naturally. The timing of when the advertising is run is not relevant to the location factors present in the question. 64) B

Version 1

Sometimes one has to live with less coverage than desired; other times, the most effective media expose people not sought. In this instance, waste coverage is justified because the media employed are likely to be the most effective means of delivery available and the cost of the waste coverage is exceeded by the value gained from their use. 65) B The primary objective of scheduling is to time promotional efforts so that they will coincide with the highest potential buying times. 66) C Flighting would be most suitable for scheduling seasonal products such as Mother's Day cards and Valentine's candy. Flighting employs a less regular schedule, with intermittent periods of advertising and nonadvertising. At some time periods there are heavier promotional expenditures, and at others there may be no advertising. 67) D Continuity refers to a continuous pattern of advertising, which may mean every day, every week, or every month. The key is that a regular (continuous) pattern is developed without gaps or nonadvertising periods. 68) C Pulsing combines continuity and flighting methods so continuity is maintained, but promotional efforts are stepped up at certain times. 69) B

Version 1

The above scenario is an example of the continuity scheduling method. Continuity refers to a continuous pattern of advertising, which may mean every day, every week, or every month. The key is that a regular (continuous) pattern is developed without gaps or nonadvertising periods. Such strategies might be used for advertising for food products, laundry detergents, or other products consumed on an ongoing basis without regard for seasonality. 70) C Flighting has intermittent periods of advertising and nonadvertising. 71) E A marketer of dishwashing detergent is most likely to use continuity scheduling method. Continuity refers to a continuous pattern of advertising, which may mean every day, every week, or every month. Such strategies might be used for advertising for food products, laundry detergents, or other products consumed on an ongoing basis without regard for seasonality. 72) C An advertiser is most likely to use continuity scheduling for cake mixes. Continuity refers to a continuous pattern of advertising, which may mean every day, every week, or every month. Such strategies might be used for advertising for food products, laundry detergents, or other products consumed on an ongoing basis without regard for seasonality. 73) D Flighting employs a less regular schedule with intermittent periods of advertising and nonadvertising. At some time periods there are heavier promotional expenditures, and at others there may be no advertising. 74) C

Version 1

The above scenario is an example of the flighting scheduling method. Flighting employs a less regular schedule, with intermittent periods of advertising and nonadvertising. At some time periods there are heavier promotional expenditures, and at others there may be no advertising. 75) D An advertiser is most likely to use a flighting schedule for snow tires. Flighting employs a less regular schedule, with intermittent periods of advertising and nonadvertising. At some time periods there are heavier promotional expenditures, and at others there may be no advertising. 76) E Pulsing is actually a combination of continuity and flighting scheduling methods. In a pulsing strategy, continuity is maintained, but at certain times promotional efforts are stepped up. 77) E This scenario is an illustration of the pulsing scheduling method. Pulsing is actually a combination of continuity and flighting scheduling methods. In a pulsing strategy, continuity is maintained, but at certain times promotional efforts are stepped up. 78) E This scenario illustrates the pulsing scheduling method. Pulsing is actually a combination of continuity and flighting scheduling methods. In a pulsing strategy, continuity is maintained, but at certain times promotional efforts are stepped up. 79) B

Version 1

An advantage of flighting is that it creates cost efficiency by using advertising only during purchasing periods. Flighting employs a less regular schedule, with intermittent periods of advertising and nonadvertising. At some time periods there are heavier promotional expenditures, and at others there may be no advertising. 80) A Flighting employs a less regular schedule, with intermittent periods of advertising and nonadvertising. At some time periods there are heavier promotional expenditures, and at others there may be no advertising. A disadvantage associated with flighting is that it results in a lack of awareness, interest, retention of promotional message during nonscheduled times. 81) A An advantage of the continuity scheduling method is that it serves as a constant reminder to consumers. 82) B New brands or products need very high levels of reach, since the objective is to make all potential buyers aware of the new entry. 83) B Juno should concentrate on maximizing its reach. New brands or products need a very high level of reach, since the objective is to make all potential buyers aware of the new entry. 84) B Frequency level expressed in a media plan overstates the actual level of exposure to an ad. This overstatement has led some media buyers to refer to the reach of a media vehicle as "opportunities to see" an ad rather than actual exposure to it.

Version 1

85) A This scenario is an example of duplicated reach. If an ad is placed on two TV shows, the total number of people exposed once is unduplicated reach. Some people will see the ad twice. The reach of two TV shows includes a number of people who are reached by both shows. This overlap is referred to as duplicated reach. 86) B If an ad is placed on two TV shows, the total number of people exposed only once is referred to as unduplicated reach. 87) C Some people will see an ad twice. The reach of two TV shows includes a number of people who are reached by both shows. This overlap is referred to as duplicated reach. 88) E Unduplicated reach indicates potential new exposures, while duplicated reach provides an estimate of frequency. 89) D Unduplicated reach indicates potential new exposures, while duplicated reach provides an estimate of frequency. 90) D This scenario is an example of duplicated reach. If an ad is placed on two TV shows, the total number of people exposed once is unduplicated reach. Some people will see the ad twice. The reach of two TV shows includes a number of people who are reached by both shows. This overlap is referred to as duplicated reach. 91) E

Version 1

A measure of potential reach in the broadcast industry is the TV (or radio) program rating. This number is expressed as a percentage. 92) A A summary measure that combines a program rating and the average number of times a home is reached during this period (frequency of exposure) is a commonly used reference point known as gross ratings points (GRPs). GRP = Reach × Frequency 93) D If media coverage reaches people who are not sought as buyers and are not potential users, it is wasted. 94) E A summary measure that combines a program rating and the average number of times a home is reached during this period (frequency of exposure) is a commonly used reference point known as gross ratings points (GRPs). GRP = Reach × Frequency. 95) A Gross rating points (GRPs) are based on the total audience a media schedule may reach using a duplicated reach estimate. 96) A Target ratings points (TRPs) refer to the number of people in the primary target audience a media buy will reach—and the number of times. 97) B Unlike gross rating points (GRPs), target ratings points (TRPs) do not include waste coverage. 98) C

Version 1

Effective reach represents the percentage of a vehicle's audience reached at each effective frequency increment. This concept is based on the assumption that one exposure to an ad may not be enough to convey the desired message. 99) D Effective reach represents the percentage of a vehicle's audience reached at each effective frequency increment. This concept is based on the assumption that one exposure to an ad may not be enough to convey a desired message. 100) C Since one exposure is usually ineffective, the central goal of productive media planning should be to enhance frequency rather than reach. 101) D Advertisers use a figure that they call average frequency, or the average number of times the target audience reached by a media schedule is exposed to a vehicle over a specified period. 102) D The ability of a target group to learn and to retain messages has a direct effect on frequency. 103) C Shorter purchasing cycles require higher frequency levels to maintain top-of-mind awareness. Products used daily or more often need to be replaced quickly, so a higher level of frequency is desired. 104) A Message variation: A single message requires less frequency; a variety of messages requires more. 105) A Version 1

Rather than focusing on a four-week planning period for reach, recency planning calls for a continuous schedule over a one-week period, and less targeting to gain exposure to reach as many potential consumers as possible. 106) B Continuity scheduling is often used for non-seasonal products. 107) C The absolute cost of a medium or vehicle is the actual total cost required to place a message. 108) D Relative cost refers to the relationship between the price paid for advertising time or space and the size of the audience delivered; it is used to compare media vehicles. 109) D Relative cost refers to the relationship between the price paid for advertising time or space and the size of the audience delivered; it is used to compare media vehicles. 110) C For years the magazine industry has provided cost breakdowns on the basis of cost per thousand people reached. The formula for this computation is: cost per thousand (CPM) = (Cost of ad space (absolute cost)/Circulation) × 1,000. 111) A Scheduling helps keep advertising in front of consumers and times promotional efforts so they coincide with the highest potential buying times. 112) A Version 1

For years the magazine industry has provided cost breakdowns on the basis of cost per thousand people reached. The formula for this computation is: cost per thousand (CPM) = (Cost of ad space (absolute cost)/Circulation) ×1,000. 113) B The formula to compute cost per thousand (CPM) is (Cost of ad space/circulation)×1,000. 114) E The broadcast media provide a different comparative cost figure, referred to as cost per ratings point or cost per point (CPP), based on the following formula: CPRP = Cost of commercial time/program rating. 115) E The broadcast media provide a different comparative cost figure, referred to as cost per ratings point (CPRP) or cost per point (CPP), based on the following formula: CPRP/CPP = Cost of commercial time/program rating. 116) D For newspapers, cost-effectiveness is based on the daily inch rate, which is the cost per column inch of the paper. 117) E The broadcast media such as television provide a comparative cost figure, referred to as cost per ratings point or cost per point (CPP). 118) D

Version 1

In an attempt to standardize relative costing procedures, the broadcast and newspaper media have begun to provide costs per thousand, using the following formulas: Television: [(Cost of 1 unit of time × 1,000)/program rating]; Newspapers: [(Cost of ad space × 1,000)/Circulation]. 119) C The cost per thousand may overestimate or underestimate the actual cost-effectiveness. 120) C A medium with a much higher cost per thousand may be a wiser buy if it is reaching more potential receivers. (Most media buyers rely on target CPM, or TCPM, which calculates CPMs based on the target audience, not the overall audience.) 121) B This marketer should use a medium that reaches more potential receivers even though it has a high cost per thousand. Marketers must use the potential reach to the target market—the destination sought—rather than the overall circulation figure. A medium with a much higher cost per thousand may be a wiser buy if it is reaching more potential receivers. 122) A Most media buyers rely on target CPM, or TCPM, which calculates CPMs based on the target audience, not the overall audience. 123) A Pass-along rate estimates the number of people who read a magazine without buying it. 124) C

Version 1

Magazine advertising space sellers have argued for years that because more than one person may read an issue, the actual reach is underestimated. The actual number of readers per copy includes a passalong rate, an estimate of the number of people who read the magazine without buying it. 125) C Pass-along rate estimates the number of people who read a magazine without buying it. 126) A While the number of readers per copy makes intuitive sense, it has the potential to be extremely inaccurate. The actual number of times a magazine changes hands (pass-along rate) is difficult to determine. 127) B An advantage associated with newspaper advertising is short lead time for placing ads. 128) C A disadvantage of radio advertising is the potential for high clutter. 129) E An advantage associated with direct-mail advertising is that it provides opportunities for repeat exposures. 130) B Both television and newspaper could be used to maximize reach, but usage of television would lead to mass coverage unlike the newspaper, which could reach the local audience in a cost-effective manner. 131) B Interactive media has few valid measurement techniques, a flexible message platform, and a direct selling potential. Version 1

132) C Outdoor is location specific and offers high repetition.

Version 1

CHAPTER 11 TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) A commercial break that includes two Just A and Z position commercials lasting no longer than 60 seconds is known as a JAZ pod. ⊚ ⊚

true false

2) When a network assembles a series of affiliated local TV stations, the networks share the advertising revenue they receive during these time periods with the affiliates. ⊚ ⊚

true false

Nielsen's current C3 ratings track individual ads and specific time slots. ⊚ ⊚

true false

4) The size of the radio listening audience is roughly equivalent across dayparts, so advertising rates are the same throughout the day. ⊚ ⊚

true false

5) Nielsen-owned RADAR National Network Ratings uses measurements from a probability sample of 400,000 respondents age 12 and older. ⊚ ⊚

Version 1

true false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 6) To date, Sunshine Sundries has restricted their advertising to magazines, print ads, and even local radio. They have engaged Success Advertising to help them launch a national campaign to include television commercials to build an emotional attachment to their brand image. What television offers over their previous advertising methods used is the interaction of A) sound and creativity. B) sight and brand identify. C) brand identity and creativity. D) sight and sound. E) sound and substance.

7) Widespread Products is looking to All Around Marketers to help deliver an advertising messages at a very low cost per thousand. All Around Marketers recommends TV as a method to reach large audiences for any company selling A) custom-order products. B) Etsy products. C) mass-consumption products. D) segmented consumer products. E) one-of-a-kind products

8) Television is a popular advertising medium among companies selling products and services that are consumed by mass markets because it A) has a low absolute cost. B) can reach large audiences in a relatively cost-efficient manner. C) has a high level of geographic selectivity. D) is very easy to develop creative television advertising. E) has the power to eliminate the problem of commercial advertising clutter.

9) TV is a popular medium among companies selling mass-consumption products because of its Version 1

A) capacity to reach a precisely defined market segment. B) capacity to eliminate the problem of commercial clutter. C) ability to reinforce radio messages through adjacency techniques. D) ability to reach large audiences in a cost-efficient manner. E) ability to prevent the zipping and zapping effects.

10)

Which of the following statements is true of television as an advertising medium? A) Television advertising is highly expensive and typically not cost efficient. B) Television has often been criticized for being a nonselective medium. C) Television as an advertising medium is typically not intrusive. D) Television advertising is considered to be highly inflexible. E) Television offers a greater range of geographic selectivity.

11) Which of the following factors makes it difficult for small-size advertisers to use television as part of their media mix? A) the failure of TV programs to reach their intended target markets B) the lack of knowledge among small ad agencies on how to produce TV commercials C) the high costs of producing and airing television commercials D) the limited creative options available through television E) the lack of captivity and attention that TV advertising provides

12) Mango Services is looking into television for their local target audience. Because they have a very specific audience, they are hesitant to pursue a medium that broadcasts beyond their market, reducing their cost effectiveness. Local advertisers may find that TV’s ________ prohibits them from making a cost-effective decision in television advertising.

Version 1

A) natural selectivity B) geographic selectivity C) broadcast selectivity D) segmented selectivity E) one-of-a-kind selectivity

13) An art gallery in a small town is hosting an "outsider artist" sale and wishes to invite people from the area to attend and buy the pieces made by artists based in the nearby locality. However, the television station also reaches viewers in northwest Georgia and northeast Alabama, resulting in a lack of A) clutter control. B) noise filters. C) audience measures. D) geographic selectivity. E) zipping capabilities.

14)

Which of the following statements about the length of television commercials is true? A) Commercials have become longer as the demand for broadcast time has dwindled. B) Commercial length is increasing and 60-second spots are typically considered the

norm. C) Commercials became shorter because advertisers turned to shorter spots as a way of controlling their media costs. D) Commercial length is increasing as the cost of ad space decreases. E) The number of 60-second commercials has declined due to the networks' desire to sell more ads and restrict clutter.

15)

Which of the following statements about commercial length is true?

Version 1

A) Fifteen-second spots are the most common commercial length. B) Increasing media costs have resulted in advertisers preferring shorter commercials. C) Most advertisers believe shorter commercials cannot deliver a message as effectively as longer commercials. D) Fifteen-second spots typically sell for about the same amount as 30-second spots. E) Most 15-second commercials are being converted to 5-second commercials that are known as split commercials.

16) An advertiser bought a 15-second spot during prime time, but realized that there was very low recall for the advertisement. This low recall could be due to A) the presence of commercial clutter. B) the lack of demographic selectivity of television. C) the low reach of television. D) the inherent deficiencies of television as a communication medium. E) message source alienation.

17)

Which of the following is an inherent disadvantage of television advertising? A) fleeting nature of messages B) lack of cost efficiency C) lack of flexibility D) limited captivity E) limited coverage

18) With the increasing ability to record television programs, people watch when they want and in less time with the ability to fast-forward through commercials. Fast-forwarding to avoid commercials is called

Version 1

A) reeling. B) zagging. C) zipping. D) zapping. E) zigging.

19) ________ refers to the practice of fast-forwarding through commercials on prerecorded programs. A) Zipping B) Zapping C) Multiplexing D) Narrowcasting E) Zooming

20) During ad breaks in TV programs, some viewers change channels to avoid commercials. This practice is known as A) multiplexing. B) zapping. C) narrowcasting. D) time shifting. E) zipping.

21) Rick likes to watch two television programs that air at the same time on different channels. He simultaneously watches both programs by switching channels during commercial breaks. In this scenario, Rick is engaging in

Version 1

A) narrowcasting. B) zooming. C) multiplexing. D) zipping. E) zapping.

22) Donna gets impatient during long commercial breaks, so she often records shows and fast-forwards through the commercials when she watches them later. Donna engages in A) pulsing. B) zooming. C) encoding. D) zipping. E) zapping.

23)

Which of the following statements is true about zapping?

A) Zapping occurs only with radio stations. B) Zapping occurs when viewers fast-forward through commercials as they play back a previously recorded program. C) Zapping has reduced due to the introduction of remote controls for television sets. D) Zapping has also been fueled by the 24-hour continuous-format programming on cable channels. E) Zapping is synonymous with zipping.

24)

Advertisers can prevent consumers from zapping commercials by A) introducing "commercial-free" programming. B) producing commercials that are meaningful. C) utilizing 60-second commercials. D) introducing the concept of zipping. E) opting for local advertising.

Version 1

25) ________ are local TV stations to which a single television network supplies programming and services. A) Syndicates B) Adjacencies C) Full-run spots D) Affiliates E) Zappers

26) A network supplies programming and services to a series of local TV stations, or ________, which contract to preempt time during specified hours for programming provided by the networks and carry national advertising within their programming. A) satellite networks B) interconnects C) affiliates D) station reps E) regional networks

27) Network advertising comprises a contractual agreement across multiple TV stations to preempt airtime during specific times for advertising. A major advantage of network advertising is the simplification of the ________ process. A) advertising B) purchase C) brand D) appeal E) communication

28)

Which of the following is an advantage of network advertising?

Version 1

A) It simplifies the purchase process. B) It enables advertisers to reach local and regional markets. C) It reduces the cost of prime-time advertising. D) It enables advertisers to target concentrated markets. E) It reduces the extent of advertising clutter.

29)

Which of the following statements about network advertising is true?

A) Using network advertising significantly complicates the purchase of television media time for national advertisers. B) Network advertising is cheaper and more selective than local advertising. C) The high cost of network time can be a drawback to advertisers with limited media budgets. D) National advertisers have to negotiate with both the network and local affiliates when they want to make a media buy. E) Network advertising is less effective than spot advertising for mass consumption products.

30) The buying period that takes place before the TV season begins and during which networks sell much of their commercial time is referred to as the A) scatter market. B) regional market. C) off-network market. D) spot market. E) up-front market.

31) In order to obtain advertising time on Master Quiz, a popular TV show, Bedazzle Cosmetics bought a commercial spot before the new season of Master Quiz began. Bedazzle Cosmetics bought the commercial space during the ________ market.

Version 1

A) up-front B) continual C) scatter D) zipping E) spot

32) Success Advertising plans to purchase advertising for Sunshine Sundries throughout the TV season. They will be purchasing from the A) quarterly market. B) up-front market. C) seasonal market. D) scatter market. E) buyer’s market.

33) John Inc., a manufacturing firm, failed to purchase airtime before the season premiere of a popular national television show. However, the company was able to purchase 15-second spots at a higher-than-average price. In this scenario, John Inc. is likely to have purchased airtime in the A) up-front market. B) scatter market. C) spot market. D) local market. E) rep market.

34) The buying period for television advertising time that runs throughout the television season is known as the _____ market.

Version 1

A) up-front B) spot C) scatter D) interconnected E) local

35) ________ refers to commercials on local television stations for which the advertisers negotiate directly with the individual stations. A) Network advertising B) Spot advertising C) Regional advertising D) Syndicated advertising E) Rep advertising

36)

Which of the following statements is true of national spot advertising? A) It deals only with airtime sold to banks and commercial institutions. B) It is a type of nonnetwork advertising. C) It deals only with airtime sold to auto dealers. D) It is highly inflexible. E) It is synonymous with local advertising.

37)

Spot advertising refers to ads on ________ TV stations. A) national B) regional C) local D) international E) transcontinental

Version 1

38) ________ 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

39) Which of the following statements correctly describes a problem encountered by national advertisers when using spot advertising? A) Spot advertising prevents national advertisers from adjusting to local market conditions. B) Spot advertising cannot be used as part of the advertiser's cooperative advertising programs. C) Spot advertising is typically more expensive than nonnetwork advertising. D) Spot advertising is usually characterized by significant variations in pricing and discount policies. E) Spot advertising provides advertisers with limited coverage in geographic markets in which they do business.

40)

Which of the following statements about spot advertising is true? A) It is subject to less commercial clutter than network advertising. B) It is used only by national advertisers. C) It is generally more expensive than network advertising. D) It is used only by local advertisers. E) It offers the national advertiser flexibility in adjusting to local market conditions.

41)

Spot advertising is

Version 1

A) mostly confined to station breaks between programs on network-originated shows. B) used only by local advertisers. C) subject to less clutter than network advertising. D) easier to buy than advertising on national networks. E) airtime sold to local firms such as retailers, restaurants, banks, and auto dealers.

42) ________ are shows that are sold or distributed on a station-by-station, market-by-market basis. A) Interconnects B) Adjacencies C) Affiliate programs D) Participation programs E) Syndicated programs

43) The market that includes shows that did not make network programming in addition to original productions is called A) particular-market syndication. B) barter syndication. C) first-run syndication. D) advertiser-supported syndication. E) off-network syndication.

44) ________ 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

Version 1

45) Prison, a popular television show, is purchased by three individual stations and re-run in different parts of the country. This system of purchasing and airing network shows is known as A) off-network syndication. B) shortwave syndication. C) first-run syndication. D) network syndication. E) beam syndication.

46)

Which of the following statements about off-network syndication is true?

A) Off-network syndication shows are an important source of quality programming for local stations. B) Off-network syndication shows are an insignificant source of revenue to the studios that produce them. C) Off-network syndication shows are usually low-budget, low-quality programs. D) The FCC prime-time access rule forbids independent stations from carrying offnetwork syndicated shows between 7:00 and 8:00 P.M. E) Off-network syndication refers to shows produced specifically for the syndication market.

47) Shows such as Judge Jenny and Tonight's Entertainment are produced specifically for the syndication market. This is referred to as A) off-network syndication. B) first-run syndication. C) special-purpose syndication. D) spot syndication. E) affiliate syndication.

48)

The term ________ refers to shows produced specifically for the syndication market.

Version 1

A) off-network syndication B) up-front syndication C) special-purpose syndication D) first-run syndication E) rerun syndication

49) The arrangement under which syndicated programs are offered free or at a reduced rate to local stations but with some advertising time presold to national advertisers is known as A) off-network syndication. B) first-run syndication. C) barter syndication. D) sponsorship. E) participation.

50)

Barter syndication is also called A) advertiser-supported syndication. B) station-sponsored syndication. C) up-market syndication. D) first-run programming. E) presold programming.

51)

Which of the following statements is true about syndication?

Version 1

A) Syndicated programs are of limited value to advertisers since they reach a limited number of viewers. B) First-run syndication is the only form of syndicated programming. C) Syndication has become a major business that generates revenue comparable to the major networks. D) National advertisers rarely use syndicated programs. E) Syndicated programs are attractive to national advertisers since they contain a lower level of advertising clutter.

52) Under a ________ arrangement, national advertisers can participate in the syndication market with the convenience of a network-type media buy, while local stations get free programming as well as some advertising time to sell to local or spot advertisers. A) sponsorship B) participation C) barter syndication D) local syndication E) spot syndication

53)

A disadvantage associated with the use of syndicated shows for advertising is

A) that syndicates do not supply as much research information as the networks do. B) their negative effect on zipping and zapping. C) their popularity is limited to gen Xers. D) that syndicates are not popular in rural areas and among the older generation. E) their lack of popularity when compared to network shows in certain dayparts, such as daytime, early prime time, and late fringe.

54)

Which of the following is a disadvantage of syndication?

Version 1

A) Syndicated shows are often aired during an undesirable time period. B) Syndicated shows offer no advantages to national advertisers. C) Syndicated shows are often more expensive than network shows. D) Syndicated shows reach a limited audience and generate limited ad revenue. E) Syndicated shows do not benefit local television stations.

55) 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

56) In the early days of television, the production and content of most television programs was the responsibility of A) the networks. B) the local affiliate. C) corporations that sponsored the shows. D) independent production companies. E) the syndicates.

57) With ________, advertisers assume responsibility for the production and usually the content of the program as well as the advertising that appears within it. A) participations B) sponsorships C) adjacencies D) syndications E) countertrades

Version 1

58)

Companies prefer sponsorship arrangements for buying advertising time because

A) it allows companies to capitalize on the image of a high-quality program. B) it gives the advertiser less control over the placement and the length of its commercials. C) it is relatively inexpensive. D) sponsoring a show enables the advertiser to run more commercials per hour since time regulations do not apply. E) it broadens advertising reach, saves money, and reaches a more aggregated market when compared to buying national spots.

59) A consortium of nine major advertisers recently joined Television Production Partners, a new venture that develops movies, specials, and limited-run series for television. The members will choose the programs they want to be involved with, take responsibility for production, and take a portion of the commercial spots during these shows. The nine advertisers are using a(n) ________ type of advertising arrangement. A) sponsorship B) participation C) adjacency D) off-network syndication E) countertrade

60) Which of the following terms is defined as the television time period available to local stations right before or after network programming? A) adjacencies B) participations C) sponsorships D) affiliates E) sweeps

61)

________ are the various time periods or segments into which a broadcast day is divided.

Version 1

A) Adjacencies B) Pulse days C) Spots D) Dayparts E) Spot beams

62)

Morning, daytime, prime time, and late fringe are all examples of A) television dayparts. B) types of spot beaming. C) types of network syndication. D) run-of-station spots. E) up-front markets.

63)

Typically, most network television advertising time is sold as A) sponsorships. B) participations. C) adjacencies. D) spot announcements. E) affiliated offerings.

64)

Which of the following statements is true for participations?

A) In participations, advertisers have financial responsibility for production of the program. B) Participations involve long-term commitment on the part of advertisers. C) Participations offer advertisers a lower reach than sponsorships. D) In participations, advertisers have little control over the placement of ads. E) Participations are not suitable for small advertisers with limited budgets.

Version 1

65)

Which television daypart has the highest rates and is dominated by national advertisers? A) daytime B) early fringe C) prime time D) late news E) late fringe

66)

The television daypart that attracts the largest viewing audience is A) daytime. B) early fringe. C) early news. D) overnight. E) prime time.

67) Most advertisers prefer buying their network advertising time as participation over sponsorships because they want A) long-term commitment to a program. B) greater financial responsibility for production of a program. C) greater flexibility than sole sponsorship permits. D) a greater concentrate for their advertising budget. E) greater control over the placement of ads.

68) With respect to common television dayparts for Eastern and Pacific time zones, the slot between 3:00 P.M. and 5:00 P.M. from Monday through Friday is called

Version 1

A) prime access. B) early fringe. C) prime time. D) early news. E) late news.

69) With respect to common television dayparts for Eastern and Pacific time zones, the slot between 5:00 P.M. and 7:00 P.M. from Monday through Saturday is called A) early fringe. B) late fringe. C) early news. D) prime access. E) prime time.

70) With respect to common television dayparts for Eastern and Pacific time zones, the slot between 7:00 P.M. and 8:00 P.M. from Monday through Saturday is called A) overnight. B) late fringe. C) early news. D) prime access. E) early fringe.

71) With respect to common television dayparts for Eastern and Pacific time zones, the slot between 11:30 P.M. and 2:00 A.M. from Monday through Friday is called A) late fringe. B) early fringe. C) late news. D) early news. E) prime access.

Version 1

72) With respect to common television dayparts for Eastern and Pacific time zones, the slot between 11:00 P.M. and 11:30 P.M. from Sunday through Saturday is called A) late fringe. B) early fringe. C) prime access. D) prime time. E) late news.

73)

The major reason for the decline in the viewing audiences of the four major networks is A) the widespread use of videocassette recorders. B) the growth of cable television. C) poor programming. D) the exponential growth of clutter. E) changes in cultural values, which are reducing television viewing time.

74) Which of the following is a similarity between advertising on broadcast TV and cable advertising? A) Both offer fewer segmentation opportunities. B) Both create longer buyer lead times for preparing and placing ads. C) Both offer greater reach and lower frequency opportunities with individual stations. D) Both do not enable advertisers to reach a large number of viewers with a single media buy. E) Both can be purchased on a national, regional, or local (spot) level.

75) An arrangement where a group of cable systems in a geographic area are joined together for advertising purposes is known as

Version 1

A) syndication. B) an interconnect. C) an adjacency. D) multiplexing. E) stunting.

76)

The growth in spot cable advertising has been facilitated by the use of A) LANs. B) hyperstitials. C) interconnects. D) interstitials. E) clutter minimizers.

77)

Which of the following statements concerning advertising on cable television is true?

A) Cable time can only be purchased on a national level. B) Cable time can be purchased on a national, regional, or local level. C) Spot cable advertising revenues have decreased dramatically over the past five years. D) Local cable systems provide advertisers with extensive research information on demographics, lifestyles, and viewership patterns. E) Cable networks discourage the purpose of marketers to reach a large number of viewers across the country with a single media buy.

78) Advertising on television to specialized audiences that has been made possible by cable advertising is known as A) zipping. B) zapping. C) narrowcasting. D) multiplexing. E) gladvertising.

Version 1

79) the

For advertisers, one disadvantage of cable television as compared to network television is

A) lack of penetration. B) lack of flexibility. C) lack of selectivity. D) lack of cost-effectiveness. E) limitations on the length of commercials.

80)

Cable networks that can transmit several channels from one network engage in A) multiplexing. B) interconnecting. C) single sourcing. D) subvertising. E) gladvertising.

81) The price for commercial time charged by a television network is largely a function of a program's A) average frequency. B) commercial clutter competence. C) audience size and composition. D) zipping and zapping effect. E) comprehensive layout.

82) is

The sole source of network television and local audience information in the United States

Version 1

A) Arbitron Co. B) Nielson Media Research. C) Rockbridge Associates, Inc. D) Roy Morgan Research. E) Burke Research.

83) Assume the television show Master Quiz had an average national program rating of 18 during the 2017 season. This means that A) an average of 18 million households watched Master Quiz. B) 18 percent of the households watching television were tuned to Master Quiz. C) an average of 18 percent of the television households in the country were tuned to Master Quiz. D) an average of 18 million households watched Master Quiz for at least five minutes every time the program was aired. E) 18 percent of the households in the United States watched the entire program.

84) If 60 million households watch Sports Story, a half-hour sports news program, and there are 300 million households in the United States, the national rating for Sports Story is A) 30 percent. B) 20 percent. C) 60 percent. D) 25 percent. E) 15 percent.

85)

Which of the following statements is true of program rating?

Version 1

A) It is the percentage of homes in a given area where TV is being watched during a specific time period. B) It is the percentage of TV households in an area that are tuned to a specific program during a specific time period. C) It is the total number of households in the area that subscribe to cable television as opposed to network television. D) It represents a total percentage of the population that is tuned to a particular reality television program. E) It represents 1 percent of all the television households in a particular area tuned to a specific program.

86) On a national level, a ratings point is equal to 1,200,000 households tuned in to a specific program each week. How many ratings points equals 8.4 million households? A) 4 B) 6 C) 5 D) 7 E) 8

87) The designated market area (DMA) of Boston has approximately 3 million television households. Audience research shows that 45 percent of these households had their sets turned on during a particular Saturday evening and 300,000 households were watching Sports Stories, a one-hour sports news program. The program rating for Sports Stories in the Boston DMA is A) 35. B) 15. C) 10. D) 20. E) 30.

88)

The share of a television audience indicates the

Version 1

A) percentage of the defined target market that is exposed to a message at least once during the relevant time period. B) percentage of households using TV in a specified time period that are tuned to a specific program. C) average number of exposures to a message received by each member of the target market. D) percentage of all households using television during a specific time period. E) number of people who responded to a televised direct-response ad.

89) There are approximately 900,000 television households in the San Diego County market. During a Sunday afternoon in October, 50 percent of the households had their television sets turned on and 200,000 were watching a football game. The approximate share of audience for the game was A) 22. B) 44. C) 50. D) 200. E) 100.

90) Which of the following statements is true about program ratings and share of audience measures? A) Program ratings are always higher than share of audience. B) Program rating is synonymous with share of audience. C) Share of audience is always higher than the program rating unless all of the households in a market have their set in use. D) Unlike share of audience measures, program ratings consider variations in the number of sets in use since they are based only on those households that have their sets in use. E) Program ratings are always equal to share of audience if less than 40 percent of the households are tuned in.

Version 1

91) ________ is defined as 1 percent of all the television households in a particular area tuned to a specific program. A) Category development index B) A ratings point C) A cross-platform rating D) Share of audience E) Brand development index

92) The designated market area (DMA) of Boston has approximately 3 million television households. Audience research shows that 45 percent of these households had their TV sets turned on during a particular Saturday evening and 300,000 households were watching Sports Stories, a sports news program. The share of audience for Sports Stories in the Boston DMA is A) 32. B) 35.5. C) 26. D) 22.2. E) 20.2.

93) Ratings services measure television audiences. The measurement of the percentage of all households with televisions that are tuned into the same show at the same time is called A) a Designated Market Area (DMA). B) the total audience. C) a share of audience. D) a Portable People Meter (PPM). E) Households Using Television (HUT).

94) The Nielsen Station Index (NSI) reports estimates of viewing measures over a range of demographic categories including time periods, programs, and audience size. This includes 210 non-overlapping areas used for planning, buying and evaluating. This grouping of centralized stations is called

Version 1

A) a designated market area (DMA). B) a total audience. C) a share of audience. D) the Portable People Meter (PPM). E) Households Using Television (HUT).

95) The designated market area (DMA) of Manhattan has approximately 2 million television households. Audience research shows that 60 percent of these households had their sets turned on during a particular Saturday evening and 300,000 households were watching a baseball playoff game. The program rating for the playoff game in the Manhattan DMA is A) 25. B) 15. C) 30. D) 35. E) 20.

96)

Which of the following statements is the correct definition “total audience”?

A) It is the total number of homes viewing any five-minute part of a telecast. B) It is the percentage of households using TV in a specified time period that are tuned to a specific program. C) It represents 1 percent of all the television households in a particular area tuned to a specific program. D) It is an electronic measuring device that incorporates the technology of the old-style audimeter. E) It is the percentage of homes in a given area where TV is being watched during a specific time period.

97)

In the United States, ________ provides local audience measurement for television.

Version 1

A) the Nielsen Company B) RADAR C) Arbitron D) Roy Morgan Research E) Burke Research

98) Today, the Nielsen Television Index provides weekly estimates of networks and major cable viewing audiences on a national level using an electronic device that measures what is being watched and by whom. This device is called A) an audimeter. B) a people meter. C) an electronic diary. D) a streaming server. E) a chronometer.

99)

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.

100) The rating periods during which Nielsen measures viewing audiences in every television market are known as A) interconnects. B) designated market periods. C) adjacencies. D) audience shares. E) sweeps.

Version 1

101)

Commercial ratings data, known as "C3," includes measures of the A) number of advertisers who buy airtime during the up-front market. B) average viewership of individual ads. C) average viewership of all the national commercial minutes in a program D) number of people who are viewing a program on a DVR. E) viewership in the 56 largest local markets.

102) Which of the following companies provides commercial ratings data (also known as "C3")? A) Rockbridge Associates, Inc. B) Burke Research C) Roy Morgan Research D) Nielson Media Research E) Arbitron Co.

103)

In 2016, Nielsen began rolling out its A) commercial ratings data. B) linear TV ratings. C) designated market areas (DMAs). D) people meters. E) total audience measurement system.

104)

Which of the following statements about radio as an advertising medium is true?

Version 1

A) Almost 50 percent of all radio revenue comes from network advertising. B) Radio has evolved into a primarily local advertising medium. C) Radio advertising revenue has been steadily declining for the last 20 years. D) One of the main weaknesses of radio as an advertising medium is the high production costs. E) The high costs of radio advertising result in lower reach and frequency.

105) The relatively low cost of radio advertising time makes it an effective medium through which advertisers can build more ________ into their media schedules. A) absolute cost B) reach and frequency C) inherent drama D) audience selectivity E) spectaculars

106)

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.

107) Success Advertising has created a complementary series of national radio campaigns to launch with their national network commercials. Sunshine Sundries sees this as a big step in the market, knowing that national advertising accounts for approximately ________ of radio’s revenue.

Version 1

A) 4 percent B) 6 percent C) 5 percent D) 7 percent E) 8 percent

108) of

Highly specialized programming that reaches a very narrow audience is a characteristic

A) radio. B) prime-time television. C) cable television. D) syndicated networks. E) daytime television.

109) Cost-per-minute (CPM) radio advertising rates can very, being lower for audiences over 50, and higher for daytime stations reaching adults A) 7 to 49. B) 35 to 49. C) 21 to 49. D) 12 to 49. E) 18 to 49.

110) Radio listeners that listen to the same station are found to be _________ connected, which makes for a receptive environment for advertising. A) universally B) physically C) emotionally D) authentically E) materially

Version 1

111) The audio portion of a television commercial is often used in the radio spot for the same product so that consumers will make a mental connection to the TV commercial. This is known as A) positioning. B) image transfer. C) cross-beaming. D) zapping. E) zipping.

112)

Advertisers use the image transfer process in radio advertising in order to A) emphasize the zapping effect. B) reinforce their television messages. C) transfer the image created by a radio commercial to the point of purchase. D) transfer the image of celebrities to the advertised brand. E) increase commercial clutter.

113) Radio has a high level of audience fragmentation. Even a top-rated station may draw approximately ________ of a total listening audience. A) 40 percent B) 30 percent C) 50 percent D) 10 percent E) 20 percent

114) Which of the following statements describes a limitation associated with the use of radio as an advertising medium?

Version 1

A) The production of radio advertising is expensive. B) The absence of clutter means radio advertising tends to be very uncreative. C) Buying space for radio advertising is more expensive than buying advertising space on television. D) The high number of stations in most markets means there is a great deal of audience fragmentation. E) Radio is unable to provide marketers with a variety of integrated marketing opportunities.

115)

A major threat to conventional broadcast radio is A) the emergence of digital media. B) low-powered local radio broadcasting. C) the ability of TV ads to increase commercial clutter. D) the fact that consumers prefer to pay a subscription fee for their radio. E) the ability to zip and zap radio commercials.

116)

Which daypart has the largest radio audience and the highest rates? A) morning drive time (6:00–10:00 A.M.) B) midday (10:00 A.M.–3:00 P.M.) C) nighttime (7:00 P.M.–12:00 A.M.) D) all night (12:00–6:00 A.M.) E) lunchtime (12:00–2:00 P.M.)

117) Nielsen Audio provides ratings reports to clients in the ________, to which clients subscribe.

Version 1

A) Portable People Meter B) Nielsen Net Ratings Report C) Nielsen Topline Radio Rating D) HUT Report E) Cross-Platform Report

118)

Spot radio accounts for ________ of radio time sold. A) 5 percent B) 10 percent C) 15 percent D) 20 percent E) 25 percent

119) ________ is defined as the estimated total number of different people who listen to a radio station for a minimum of five minutes in a quarter-hour period within a reported daypart. A) A shill B) An interconnect C) Station rep D) Cume E) An affiliate

120)

In the Nielsen Audio radio reports, “person estimates” refers to

A) the estimated number of people listening. B) the estimated cost of a spot schedule within a particular time period. C) the estimated number of people involved in preparing the Nielsen Audio report. D) information on number of network audiences only for commercials within a program. E) the percentage of the total estimated listening audience.

Version 1

121) With respect to the basic estimates in the Nielsen Audio report, “rating” refers to the percentage of A) the total estimated listening audience. B) listeners in the survey area population. C) people involved in preparing the Arbitron ratings report. D) listeners who watch TV commercials for more than five minutes. E) listeners who watch TV commercials for a minimum of five minutes.

122)

With respect to the basic estimates in the Nielsen Audio report, “share” refers to A) the percentage people involved in preparing the Arbitron ratings report. B) the estimated number of people who watch television commercials. C) the estimated number of radio stations that run a particular commercial. D) the percentage of listeners in the survey area population. E) the percentage of the total estimated listening audience.

123)

________ represents the total number of listeners of the survey-area population. A) AQH RHR B) AQH RTG C) AQH SHR D) AQH RHG E) AQH STG

124)

________ represents the total number of listeners tuned into a station.

Version 1

A) AQH RHR B) AQH RTG C) AQH SHR D) AQH RHG E) AQH STG

125) Success Advertising knows that ad rates can be obtained through local stations or from SRDS’s Radio Advertising Source, which provides data on both local and network radio. They are keen to find stations that do not adhere to the published rates in the SRDS, and are willing to negotiate rates based on availability, number of spots purchased, and A) advertising appeal. B) length of commercial. C) brand identity. D) music used. E) time period.

126) The RADAR report is issued four times a year providing radio listening measures of syndicated and network radio audiences. What does RADAR stand for? A) Radio’s All Dimension Audience Record B) Radio’s All Daypart Advertising Record C) Radio’s All Dimension Audience Research D) Radio’s All Daypart Audience Research E) Radio’s All Dimension Advertising Record

127)

Nielsen's RADAR

Version 1

A) cannot be used to estimate the audience for commercials on various programs. B) is sponsored by nine of the largest advertisers in the nation. C) primarily measures TV viewership for local TV stations. D) is based on information collected by means of diary interviews. E) collects information and issues a new report every month.

128) ________ provides estimates of network audiences for all commercials and commercials within various radio programs. A) RADAR B) HUT C) Nielsen Television Index D) People Meter E) DMA

Version 1

Answer Key Test name: Chap 11_12e 1) TRUE Plans by both Fox and NBC involve more than just reducing the number of commercials during primetime shows. Fox plans to implement what it calls “Just A and Z” pods (JAZ) which include only two commercials during a pod or commercial break that would last no longer than 60 seconds. For example, a 30-second spot during a popular shown during a Prime Pod on NBC or in a JAZ might cost anywhere from 40 to70 percent more. It remains to be seen just how much of a premium advertisers will be willing to pay to run an ad in programming with fewer commercials. 2) TRUE A network assembles a series of affiliated local TV stations, or affiliates, to which it supplies programming and services. The networks share the advertising revenue they receive during these time periods with the affiliates. 3) FALSE Nielsen's current C3 ratings do not track individual ads or specific time slots, but rather offer an average viewership of all the national commercial minutes in a program. Many advertisers now pay for advertising time on network shows based on Nielsen measures of how many viewers watched commercials live and on DVR-recorded playback within three days of the airing of the show. 4) FALSE

Version 1

The size of the radio listening audience varies widely across dayparts, and advertising rates follow accordingly. The highest rates (and largest radio audiences) occur during the early morning and late afternoon drive times. 5) TRUE RADAR reports are based on a probability sample of nearly 400,000 respondents, aged 12 and older. Respondents record all radio listening for a one- week period including day of the week, time of day, and location. 6) D The interaction of sight and sound offers tremendous creative flexibility and makes possible dramatic, lifelike representations of products and services. TV commercials can be used to convey a mood or image for a brand as well as to develop emotional or entertaining appeals that help make a dull product appear interesting. 7) C Because of its ability to reach large audiences in a cost-efficient manner, TV is a popular medium among companies selling mass-consumption products. Companies with widespread distribution as well as availability of their products and services use TV to reach the mass market and deliver their advertising messages at a very low cost per thousand. 8) B Marketers selling products and services that appeal to broad target audiences find that TV lets them reach mass markets, often very costefficiently. Because of its ability to reach large audiences in a costefficient manner, TV is a popular medium among companies selling mass-consumption products. 9) D Version 1

Because of its ability to reach large audiences in a cost-efficient manner, TV is a popular medium among companies selling mass-consumption products. Companies with widespread distribution and availability of their products and services use TV to reach the mass market and deliver their advertising messages at a very low cost per thousand. 10) B Television has often been criticized for being a nonselective medium, since it is difficult to reach a precisely defined market segment through TV advertising. 11) C The high cost of TV stems not only from the expense of buying airtime but also from the costs of producing a quality commercial. The high costs of producing and airing commercials often price small- and medium-size advertisers out of the market. 12) B Advertisers seeking a very specific, often small, target audience find the coverage of TV often extends beyond their market, reducing its cost effectiveness. Geographic selectivity can be a problem for local advertisers such as retailers, since a station bases its rates on the total market area it reaches. 13) D The above scenario is an example of the lack of geographic selectivity. Advertisers who are seeking a very specific, often small, target audience find the coverage of TV often extends beyond their market, reducing its cost effectiveness. Geographic selectivity can be a problem for local advertisers such as retailers, since a station bases its rates on the total market area it reaches. 14) C Version 1

Several years ago, many advertising people predicted 15-second spots would become the dominant commercial unit. This may be due to several factors, including creative considerations, lower prices for network time, and a desire by the networks to restrict clutter. 15) B With the average cost of a prime-time spot reaching nearly $100,000, many advertisers see shorter commercials as the only way to keep their media costs in line. A 15-second spot typically sells for half the price of a 30-second spot. 16) A The problems of fleeting messages and shorter commercials are compounded by the fact that the advertiser's message is only one of many spots and other nonprogramming material seen during a commercial break, so it may have trouble being noticed. One of advertisers' greatest concerns with TV advertising is the potential decline in effectiveness because of such clutter. 17) A TV commercials usually last only 30 seconds or less and leave nothing tangible for the viewer to examine or consider. Commercials have become shorter and shorter as the demand for a limited amount of broadcast time has intensified and advertisers try to get more impressions from their media budgets. 18) C Zipping occurs when viewers fast-forward through commercials as they play back a previously recorded program. With the increased penetration of DVRs, more people are watching recorded shows and fast-forwarding through the commercials. 19) A Version 1

Zipping occurs when viewers fast-forward through commercials as they play back a previously recorded program. With the increased penetration of DVRs, more people are watching recorded shows and fast-forwarding through the commercials. 20) B Zapping refers to changing channels to avoid commercials. Nearly all televisions come with remote controls, which enable viewers to switch channels easily. 21) E Rick’s behavior is an example of zapping. Zapping refers to changing channels to avoid commercials. Viewers can switch channels for a few news headlines, sports scores, or a music video and then switch back to the program. 22) D Donna engages in zipping. Zipping occurs when viewers fast-forward through commercials as they play back a previously recorded program. With the increased penetration of DVRs, more people are watching recorded shows and fast-forwarding through the commercials. 23) D Zapping refers to changing channels to avoid commercials. Nearly all televisions come with remote controls, which enable viewers to switch channels easily. Zapping has been fueled by the 24-hour continuousformat programming on cable channels such as CNN, MTV2, and ESPN. 24) B

Version 1

Some advertisers believe that producing different executions of a campaign theme is one way to maintain viewers' attention. Others think the ultimate way to zap-proof commercials is to produce creative advertising messages that will attract and hold viewers' attention. 25) D A common way advertisers disseminate their messages is by purchasing airtime from a television network. A network assembles a series of affiliated local TV stations, or affiliates, to which it supplies programming and services. 26) C A network assembles a series of affiliated local TV stations, or affiliates, to which it supplies programming and services. These affiliates, most of which are independently owned, contractually agree to preempt time during specified hours for programming provided by the networks and to carry the national advertising within the program. 27) B A major advantage of network advertising is the simplification of the purchase process. The advertiser has to deal with only one party or media representative to air a commercial nationwide. 28) A A major advantage of network advertising is the simplification of the purchase process. The advertiser has to deal with only one party or media representative to air a commercial nationwide. 29) C

Version 1

Network advertising truly represents a mass medium, as the advertiser can broadcast its message simultaneously throughout the country. While network advertising is an effective way to reach large audiences, the cost of advertising on prime-time shows is much higher because of the number of viewers they reach. 30) E Traditionally, most prime-time commercial spots, particularly on the popular shows, are sold during the up-front market, a buying period that occurs before the TV season begins. 31) A In this scenario, Bedazzle Cosmetics bought the commercial space during the up-front market. Traditionally, most prime-time commercial spots, particularly on the popular shows, are sold during the up-front market, a buying period that occurs before the TV season begins. 32) D The scatter market runs through the TV season. The up-front market is a buying period that occurs before the TV season begins. 33) B In this scenario, John Inc. bought the commercial space during the scatter market. TV time can be purchased during the scatter market that runs through the TV season. 34) C Traditionally, most prime-time commercial spots, particularly on the popular shows, are sold during the up-front market, a buying period that occurs before the TV season begins. TV time is also purchased during the scatter market that runs through the TV season. 35) B Version 1

Spot advertising refers to commercials shown on local TV stations, with time negotiated and purchased directly from the individual stations. 36) B All nonnetwork advertising done by a national advertiser is known as national spot advertising. 37) C A major problem for national advertisers is that spot advertising can be more difficult to acquire, since the time must be purchased from a number of local stations. Moreover, there are more variations in the pricing policies and discount structure of individual stations than of the networks. 38) D Station reps are individuals who act as sales representatives for a number of local stations in dealings with national advertisers. 39) D A major problem for national advertisers is that spot advertising can be more difficult to acquire, since the time must be purchased from a number of local stations. Moreover, there are more variations in the pricing policies and discount structure of individual stations than of the networks. 40) E Spot advertising offers the national advertiser flexibility in adjusting to local market conditions. The advertiser can concentrate commercials in areas where market potential is greatest or where additional support is needed. 41) A

Version 1

While spot advertising is mostly confined to station breaks between programs on network-originated shows, local stations sell time on their own programs, which consist of news, movies, syndicated shows, or locally originated programs. 42) E Syndicated programs are shows that are sold or distributed on a stationby-station, market-by-market basis. A syndicator seeks to sell its program to one station in every market. 43) C First-run syndication refers to shows produced specifically for the syndication market. The first-run syndication market is made up of a variety of shows, including some that did not make it as network shows. 44) A Off-network syndication refers to reruns of network shows that are bought by individual stations. Off-network syndication shows are very important to local stations because they provide quality programming with an established audience. 45) A The above scenario is an example of off-network syndication. Offnetwork syndication refers to reruns of network shows that are bought by individual stations. 46) A Off-network syndication shows are very important to local stations because they provide quality programming with an established audience. The syndication market is also very important to the studios that produce programs and sell them to the networks. 47) B Version 1

First-run syndication refers to shows produced specifically for the syndication market. The first-run syndication market is made up of a variety of shows, including some that did not make it as network shows. 48) D First-run syndication refers to shows produced specifically for the syndication market. The first-run syndication market is made up of a variety of shows, including some that did not make it as network shows. 49) C Advertiser-supported or barter syndication is the practice of selling shows to stations in return for a portion of the commercial time in the show, rather than (or in addition to) cash. The commercial time from all stations carrying the show is packaged into national units and sold to national advertisers. 50) A Advertiser-supported or barter syndication is the practice of selling shows to stations in return for a portion of the commercial time in the show, rather than (or in addition to) cash. 51) C Syndication now accounts for more than a third of the national broadcast audience and has become a very big business, generating ad revenue comparable to any of the big-four networks. 52) C Advertiser-supported or barter syndication is the practice of selling shows to stations in return for a portion of the commercial time in the show. Barter syndication allows national advertisers to participate in the syndication market with the convenience of a network-type media buy, while local stations get free programming and can sell the remainder of the time to local or spot advertisers. Version 1

53) A Syndication has certain disadvantages. The audience for some syndicated shows is often older and more rural, and syndicators do not supply as much research information as the networks do. 54) A Syndication has certain disadvantages. Syndication creates more problems for media buyers, since a syndicated show may not be seen in a particular market or may be aired during an undesirable time period. Thus, media buyers have to look at each market and check airtimes and other factors to put together a syndication schedule. 55) B The disadvantage of participations is that the advertiser has little control over the placement of ads, and there may be problems with availability. Preference is given to advertisers willing to commit to numerous spots, and the firm trying to buy single spots in more than one program may find that time is unavailable in certain shows, especially during prime time. 56) C In the early days of TV, most programs were produced and sponsored by corporations and were identified by their name, for example, Texaco Star Theater and The Colgate Comedy Hour. Today most shows are produced by either the networks or independent production companies that sell them to a network. 57) B Under a sponsorship arrangement, an advertiser assumes responsibility for the production and usually the content of the program as well as the advertising that appears within it. 58) A Version 1

A company might choose to sponsor a program for several reasons. Sponsorship allows the firm to capitalize on the prestige of a highquality program, enhancing the image of the company and its products. 59) A Under a sponsorship arrangement, an advertiser assumes responsibility for the production and usually the content of the program as well as the advertising that appears within it. 60) A Spot announcements are bought from the local stations and generally appear during time periods adjacent to network programs (hence the term adjacencies), rather than within them. 61) D TV time periods are divided into dayparts, which are specific segments of a broadcast day. The time segments that make up the programming day vary from station to station. 62) A Morning, daytime, prime time, and late fringe are all examples of television dayparts. Dayparts are specific segments of a broadcast day. The time segments that make up the programming day vary from station to station. 63) B Nearly 90 percent of network advertising time is sold as participations, with several advertisers buying commercial time or spots on a particular program. 64) D

Version 1

The advertiser has no long-term commitment to a program, and expenditures can be adjusted to buy whatever number of participation spots fits within the budget. This is particularly important to small advertisers with a limited budget. The disadvantage of participations is that the advertiser has little control over the placement of ads. 65) C Prime time draws the largest audiences, with 8:30 to 9 P.M. being the most watched half-hour time period and Sunday the most popular night for television. Since firms that advertise during prime time must pay premium rates, this daypart is dominated by the large national advertisers. 66) E Prime time draws the largest audiences, with 8:30 to 9 P.M. being the most watched half-hour time period and Sunday the most popular night for television. Since firms that advertise during prime time must pay premium rates, this daypart is dominated by the large national advertisers. 67) C Most advertisers either cannot afford the costs of sponsorship or want greater flexibility than sole sponsorship permits. Nearly 90 percent of network advertising time is sold as participations, with several advertisers buying commercial time or spots on a particular program. 68) B TV time periods are divided into dayparts, which are specific segments of a broadcast day. The time segments that make up the programming day vary from station to station. However, with respect to the typical classification of dayparts for a weekday the slot between 3:00 P.M. and 5:00 P.M. is called early fringe. Version 1

69) C TV time periods are divided into dayparts, which are specific segments of a broadcast day. The time segments that make up the programming day vary from station to station. However, with respect to the typical classification of dayparts for a weekday the slot between 5:00 P.M. and 7:00 P.M. from Monday through Saturday is called early news. 70) D TV time periods are divided into dayparts, which are specific segments of a broadcast day. The time segments that make up the programming day vary from station to station. However, with respect to the typical classification of dayparts for a weekday the slot between 7:00 P.M. and 8:00 P.M. from Monday through Saturday is called prime access. 71) A TV time periods are divided into dayparts, which are specific segments of a broadcast day. The time segments that make up the programming day vary from station to station. However, with respect to the typical classification of dayparts for a weekday the slot between 11:30 P.M. and 2:00 A.M. from Monday through Friday is called late fringe. 72) E TV time periods are divided into dayparts, which are specific segments of a broadcast day. The time segments that make up the programming day vary from station to station. However, with respect to the typical classification of dayparts for a weekday the slot between 11:00 P.M. and 11:30 P.M. from Sunday through Saturday is called late news. 73) B

Version 1

Much of the growth in cable audiences has come at the expense of the four major networks. Cable channels now have more of the prime-time viewing audience than the major networks. Many cable stations have become very popular among consumers, leading advertisers to reevaluate their media plans and the prices they are willing to pay for network and spot commercials on network affiliate stations. 74) E Like broadcast TV, cable time can be purchased on a national, regional, or local (spot) level. Many large marketers advertise on cable networks to reach large numbers of viewers across the country with a single media buy. Regional advertising on cable is available primarily through sports and news channels that cover a certain geographic area. 75) B The growth in spot cable advertising is being facilitated by the use of interconnects, where a number of cable systems and networks in a geographic area are joined for advertising purposes. These interconnects increase the size of the audience an advertiser can reach with a spot cable buy. 76) C The growth in spot cable advertising is also being facilitated by the use of interconnects, where a number of cable systems and networks in a geographic area are joined for advertising purposes. 77) B Like broadcast TV, cable time can be purchased on a national, regional, or local (spot) level. Many large marketers advertise on cable networks to reach large numbers of viewers across the country with a single media buy. 78) C Version 1

Cable TV has experienced tremendous growth as an advertising medium because it has some important advantages. Many advertisers have turned to cable because of the opportunities it offers for narrowcasting, or reaching very specialized markets. 79) A Cable still lacks total penetration, especially in some major markets. Thus, local advertisers in these markets would not be able to reach a significant number of households by advertising on local cable networks. 80) A Multiplexing is the process of transmitting multiple channels from one network. Multiplexing will be responsible for some of the growth in cable channels. The future of cable as an advertising medium will ultimately depend on the size and quality of the audiences that cable stations can reach with their programs. 81) C One of the most important considerations in TV advertising is the size and composition of the viewing audience. Audience size and composition are also important to the network or station, since they determine the amount it can charge for commercial time. 82) B The size and composition of television audiences are measured by ratings services. The sole source of network TV and local audience information is Nielsen Media Research. For many years local audience information was also available from the Arbitron Co., but Arbitron exited the local TV ratings business at the end of 1993 due to steep financial losses. 83) C Version 1

Program rating is the percentage of TV households in an area that are tuned to a specific program during a specific time period. 84) B In this scenario, the national rating for Sports Story is be 20 percent. The program rating is calculated by dividing the number of households tuned to a particular show by the total number of households in the area: 60 million households are tuned to Sports Story and the total number of households in the United States is 300 million. Therefore, the national rating = 60 million/300 million = 20 percent. 85) B Program rating is the percentage of TV households in an area that are tuned to a specific program during a specific time period. 86) D A ratings point represents 1 percent of all the television households in a particular area tuned to a specific program. Given that one rating point is equal to 1,200,000 households, then a program that averages a rating of 7 reaches 8.4 million households each week (7 x 1,200,000). 87) C Program rating is the percentage of TV households in an area that are tuned to a specific program during a specific time period. In this case program rating = 300,000/3 million = 10. 88) B The share of audience is the percentage of households using TV in a specified time period that are tuned to a specific program. This figure considers variations in the number of sets in use and the total size of the potential audience, since it is based only on those households that have their sets turned on.

Version 1

89) B The share of audience is the percentage of households using TV in a specified time period that are tuned to a specific program. Here, share = 200,000/50 percent of 900,000 = 44.44. 90) C Audience share is always higher than the program rating unless all the households have their sets turned on (in which case they would be equal). Share figures are important since they reveal how well a program does with the available viewing audience. 91) B A ratings point represents 1 percent of all the television households in a particular area tuned to a specific program. On a national level, 1 ratings point represents 1,200,000 households. Ratings points are very important to the networks as well as to individual stations. 92) D The share of audience is the percentage of households using TV in a specified time period that are tuned to a specific program. Here, share = 300,000/45 percent of 3 million = 22.2. 93) C Audience share is the percentage of households using TV in a specified time period that are tuned to a specific program. Audience share is always higher than the program rating unless all the households have their sets turned on (in which case they would be equal). 94) A

Version 1

DMAs are nonoverlapping areas used for planning, buying, and evaluating TV audiences and are generally a group of counties in which stations located in a metropolitan or central area achieve the largest audience share. Nielsen Station Index (NSI) reports information on viewing by time periods and programs and includes audience size and estimates of viewing over a range of demographic categories for each DMA. 95) B Program rating is the percentage of TV households in an area that are tuned to a specific program during a specific time period. In this case program rating = 300,000/2 million = 15. 96) A Ratings services also provide an audience statistic known as total audience, the total number of homes viewing any five-minute part of a telecast. This number can be broken down to provide audience composition figures that are based on the distribution of the audience into demographic categories. 97) A Nielsen Media Research’s national TV ratings service provides daily and weekly estimates of the size and composition of the national viewing audiences for programs aired on the broadcast and major cable networks. 98) B The people meter is an electronic measuring device that incorporates the technology of the old-style audimeter in a system that records not only what is being watched but also by whom in 10,000 households. 99) C

Version 1

Nielsen Media Research's local market measurement service, the Nielsen Station Index (NSI), measures viewing audiences in 210 local markets known as designated market areas (DMAs). 100) E Nielsen measures viewing audiences in every local television market at least four times a year during rating periods known as sweeps. Sweeps rating periods are held in November, February, May, and July. 101) C In 2007, Nielsen began providing commercial ratings data, known as “C3,” which includes measures of the average viewership of the commercials both live and up to three days after the ads are played back on a DVR. The new ratings did not track individual ads or specific time slots, but rather offered an average viewership of all the national commercial minutes in a program. 102) D In 2007, Nielsen began providing commercial ratings data, known as “C3,” which includes measures of the average viewership of the commercials both live and up to three days after the ads are played back on a DVR. By 2014 Nielsen was also providing "C7" ratings that include viewership of programs and commercials as many as seven days after live airing of a TV show. 103) E In 2016, Nielsen began rolling out its total audience measurement system, which is a single-sourced platform that accounts for all viewing across linear TV, DVRs, video-on-demand, connected TV devices including streaming video devices and game consoles, enabled smart TVs, tablets, smartphones, and personal computers. 104) B Version 1

Dominated by network programming and national advertisers before the growth of TV, radio has evolved into a primarily local advertising medium. Network advertising generally accounts for less than 5 percent of radio's revenue. Radio has also become a medium characterized by highly specialized programming appealing to very narrow segments of the population. 105) B The low cost of radio means advertisers can build more reach and frequency into their media schedule within a certain budget. They can use different stations to broaden the reach of their messages and multiple spots to ensure adequate frequency. Advertisers can use radio as a fast and relatively inexpensive way to get their names known. 106) A A major advantage of radio is the high degree of audience selectivity available through the various program formats and geographic coverage of the numerous stations. 107) C Radio has evolved into a primarily local advertising medium. Network advertising generally accounts for less than 5 percent of radio's revenue. 108) A Radio boasts the broadest mass reach among all media, while simultaneously affording advertisers narrow targeting capabilities through numerous formats and networks. 109) E

Version 1

One of the main strengths of radio as an advertising medium is its low cost. Radio commercials are very inexpensive to produce. However, the CPM rate can vary greatly across different stations, markets, and listening audiences. For example, an average daytime CPM rate will be higher, particularly for stations reaching adults 18 to 49. CPM rates will be lower for programming with an audience over 50, as well as for evening and overnight radio programs. 110) C Radio often provides advertisers with a very receptive environment for their advertising messages. Studies have found that radio listeners have a unique relationship with radio as a medium. Listeners are more emotionally connected to radio stations to which they often listen. 111) B Image transfer is a technique where the images of a TV commercial are implanted into a radio spot. The idea is that when consumers hear the radio message, they will make the connection to the TV commercial, reinforcing its video images. 112) B Radio may reinforce television messages through a technique called image transfer, where the images of a TV commercial are implanted into a radio spot. The idea is that when consumers hear the radio message, they will make the connection to the TV commercial, reinforcing its video images. 113) D

Version 1

A drawback of radio as a medium for advertising is the high level of audience fragmentation due to the large number of stations. The percentage of the market tuned to any particular station is usually very small. The top-rated radio station in many major metropolitan areas with a number of AM and FM stations may attract less than 10 percent of the total listening audience. 114) D One problem with radio is the high level of audience fragmentation due to the large number of stations. The percentage of the market tuned to any particular station is usually very small. The top-rated radio station in many major metropolitan areas with a number of AM and FM stations may attract less than 10 percent of the total listening audience. 115) A A major source of competition for conventional broadcast radio is the growth of digital media. 116) A The morning and afternoon/evening drive times have the largest radio listening audiences and advertising rates. 117) C Nielsen has a sample of representative listeners in each market who maintain a diary of their radio listening for seven days. Audience estimates for the market are based on these diary records and reported by time period and selected demographics in the Nielsen Topline Radio Rating, to which clients subscribe. 118) D Spot radio accounts for about 20 percent of radio time sold. 119) D Version 1

Cume stands for "cumulative audience," the estimated total number of different people who listened to a station for at least five minutes in a quarter-hour period within a reported daypart. 120) A The three basic estimates in the Nielsen Audio report are: (1) person estimates—the estimated number of people listening; (2) rating—the percentage of listeners in the survey area population; and (3) share—the percentage of the total estimated listening audience. 121) B The three basic estimates in the Nielsen Audio report are: (1) person estimates—the estimated number of people listening; (2) rating—the percentage of listeners in the survey area population; and (3) share—the percentage of the total estimated listening audience. 122) E The three basic estimates in the Nielsen Audio report are: (1) person estimates—the estimated number of people listening; (2) rating—the percentage of listeners in the survey area population; and (3) share—the percentage of the total estimated listening audience. 123) B The average quarter-hour rating (AQH RTG) expresses the estimated number of listeners as a percentage of the survey area population. The average quarter-hour share (AQH SHR) is the percentage of the total listening audience tuned to each station. 124) C The average quarter-hour rating (AQH RTG) expresses the estimated number of listeners as a percentage of the survey area population. The average quarter-hour share (AQH SHR) is the percentage of the total listening audience tuned to each station. Version 1

125) E Many stations do not adhere strictly to rate cards and the rates published in SRDS. 126) C Now owned by Nielsen, RADAR (Radio’s All Dimension Audience Research) provides a national measurement of radio listening and audiences for network radio stations and syndicated radio shows. RADAR reports are issued four times a year and include daypart averages and cumulative audience estimates for various demographics groups. 127) D RADAR measurements are based on information collected by means of diary interviews. Respondents are instructed to record all radio listening for a one-week period. The audience estimates are time-period measurements for the various dayparts. RADAR also provides estimates of network audiences for all commercials and commercials within various programs. 128) A RADAR provides estimates of network audiences for all commercials and commercials within various programs.

Version 1

CHAPTER 12 TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) Newspapers and magazines are referred to as low-involvement media. ⊚ ⊚

true false

2) One way to achieve geographic selectivity is by using a magazine that targets a particular area of interest. ⊚ ⊚

true false

3) The reach and frequency of magazine advertisements are higher than advertisements through other media. ⊚ ⊚

true false

The front cover of a magazine is considered editorial space and off limits to advertisers. ⊚ ⊚

true false

5) Newspapers are the second largest of all advertising media in terms of total dollar volume. ⊚ ⊚

true false

6) The retail trading zone is a market area composed of the city where the paper is published and contiguous areas similar in character to the city. ⊚ ⊚

Version 1

true false

7) Newspaper ad rates paid by general advertisers are, on average, 75 percent higher than those paid by local advertisers. ⊚ ⊚

true false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 8) More companies advertise ________ than with any other medium. A) on television B) online C) in newspapers D) in magazines E) on billboards

Of all media, which is the second most selective? A) television B) online C) newspapers D) direct mail E) magazines

10)

Magazine ads can use longer and more detailed copy owing to magazines’ A) bleed space. B) inserts. C) permanence. D) selectivity. E) reproduction quality

Version 1

11) A magazine’s ________ fluctuates from issue to issue, particularly for magazines that rely heavily on retail or newsstand sales. A) reach B) passive readership C) circulation D) readership

12)

Many media buyers will only advertise in a magazine that A) has readership over 500,000. B) audits its circulation numbers. C) accounts for pass-through readership. D) publishes more than 12 times per year.

13)

What is the second highest revenue-generator for magazines? A) advertisements B) individual sales C) subscriptions D) endorsements

14) Online advertising that takes on the look and feel of the surrounding content is called ________ advertising. A) customized B) authentic C) native D) malleable E) incorporated

Version 1

15)

Which type of newspaper primarily focuses on local news, events, and sports? A) national B) daily C) weekly D) special audience

16) Which publication is the only remaining nationally syndicated Sunday newspaper supplement? A) USA Weekend B) New York Times Weekend C) Parade D) Jubilation E) March

17) Which type of newspaper advertisements run in their own section, typically with headings for type of product, service, or offering? A) special ads B) display ads C) classified ads D) national ads

18)

Which of the following is an advantage of newspaper ads? A) reproduction B) life span C) flexibility D) selectivity

Version 1

19)

Which of the following is disadvantage of newspaper advertising? A) flexibility B) clutter C) selectivity D) reader involvement

20) Which term refers to the rate charged by newspapers when they offer no discount for quantity or repeated ad buys? A) general rate B) local rate C) flat rate D) combination rate

21) By how much is newspaper advertising revenue expected to decline over the next five years? A) 5% B) 10% C) 15% D) 20%

22) true?

Which of the following statements about newspapers as an advertising media vehicle is

Version 1

A) Newspapers are the primary advertising medium in terms of ad revenue but not in terms of number of advertisers. B) Newspapers are primarily a local advertising medium for retail businesses but are also used by large national advertisers. C) A primary feature of newspapers is that they can survive without any advertising revenue. D) Consumers view newspapers as their primary source of entertainment. E) The popularity of newspapers as a media vehicle to advertisers has drastically declined because of competition from the broadcast media.

23) One of the primary advertising media in terms of both ad revenue and number of advertisers is A) broadcast television. B) radio. C) magazines. D) newspapers. E) direct mail.

24)

Which of the following statements about magazines as an advertising medium is true?

A) Today, magazines are the primary source of entertainment apart from news and information. B) Magazines are a highly specialized medium that reaches specific target audiences. C) There has been a decline in magazine readership because magazines offer general information. D) Magazines are not dependent on advertising revenues since they can charge higher prices for their publications. E) Magazines are the primary advertising medium in terms of advertising revenues.

25)

Which of the following are the most frequent distribution schedules for magazines?

Version 1

A) weekly, bi-weekly, and monthly B) weekly, monthly, and quarterly C) bi-weekly, monthly, and quarterly D) daily, weekly and monthly E) daily, weekly, and bi-weekly

26)

Which of the following statements explains high-involvement media? A) It has a high impact on the overall integrated marketing communication program. B) It attracts high advertising revenues to support their operations. C) It is the primary sources of entertainment apart from news and information. D) It requires consumers to expend some effort to process the information provided.

27) Which of the following statements about the role of magazines and newspapers as advertising media vehicles is true? A) Newspapers and magazines share similar characteristics in terms of benefits and limitations. B) Magazines and newspapers allow advertisers to present detailed information that readers can process at their own pace. C) Magazines and newspapers are more intrusive than the broadcast media like radio and television. D) Newspapers are a more specialized form of advertising medium than magazines. E) Both newspapers and magazines are generally considered low-involvement media.

28)

What proportion of all magazine ads use color? A) 1/3 B) 1/2 C) 2/3 D) 3/4 E) 1/4

Version 1

29)

Which of the following statements is true of consumer magazines? A) They are generally purchased for both entertainment value and information. B) They are typically known as niche magazines. C) They are primarily annual publications. D) They are only sold through sole distribution. E) They cannot be sold through circulation.

30)

According to Standard Rate and Data Service (SRDS), magazines can be classified as A) consumer, health care, and business publications. B) regional, national, and international publications. C) agrarian, industrial, and specialized publications. D) general, specialized, and niche publications. E) affective, behavioral, and cognitive publications.

31) According to the Standard Rate and Data Service (SDRS) classification of magazines, ________ magazines are bought by the general public for information and/or entertainment. A) niche B) consumer C) business D) national E) industrial

32)

Which of the following statements is true of consumer magazines?

Version 1

A) They are useful for reaching general consumers of services. B) They are published for a specific business or industry. C) They are sold only through circulation. D) They are also known as farm publications. E) They are not suitable for reaching a specific target market.

33) NMen, a men’s weekly magazine, provides information on a variety of subjects such as men’s heath, travel tips, sports, and so on. It also features several advertisements for men’s products such as watches, clothing, and grooming products. NMen is likely to be an example of a A) consumer magazine. B) trade magazine. C) farm publication. D) business publication. E) niche publication.

34)

Marketers of tobacco products spend most of their media budget in magazines because A) magazines specifically target consumers of tobacco products. B) they are prohibited from advertising in the broadcast media. C) magazines are a high-involvement advertising medium. D) they want to communicate customized information to magazine readers. E) advertising through magazines is less expensive than through broadcast media.

35) Velocity Inc. makes shoes for athletes. Its market research has shown that there are a large number of competitive long-distance runners in the Pacific Northwest region of the United States. These individuals would be willing to pay over $200 for a good pair of running shoes. In order to reach this target market, Velocity should use

Version 1

A) regional editions of general-interest magazines. B) the sports section of national newspapers. C) regional editions of general sports magazines. D) regional editions of specialty magazines. E) local television.

36) ________ magazines assemble readers with similar lifestyles or interests and offer marketers an efficient way to reach these people with little wasted coverage or circulation. A) Trade B) General-interest C) Business D) Cultural E) Special-interest

37) Health care publications targeting specific audiences such as dental, medical and surgical, nursing, biotechnological sciences, and hospital administration are classified as A) business publications. B) special-interest consumer magazines. C) trade magazines. D) general-interest consumer magazines. E) independent publications.

38)

Farm publications are not classified with business publications because A) historically farms were not perceived as businesses. B) adding farm magazines to business magazines would make the category too large. C) farm magazines are a hybrid of consumer and business magazines. D) farming is considered a community service occupation. E) businesses do not have agricultural interests.

Version 1

39) Business publications directed to wholesalers, dealers, distributors, and retailers are known as A) special-interest consumer magazines. B) craft magazines. C) general business magazines. D) trade magazines. E) networking magazines.

40) Blooms is a publication providing information to retail florists so that they can manage their stores more efficiently and profitably. This is an example of a(n) ________ publication. A) craft B) trade C) professional D) industrial E) consumer-oriented

41) Asea is a publication that provides information on world trends and technology to offshore oil and gas operations. This is an example of a(n) ________ publication. A) general business B) trade C) professional D) industrial E) consumer-oriented

42) ________ magazines are a classification of business publications that are aimed at executives in all commercial activities.

Version 1

A) General business B) Trade C) Professional D) Industrial E) Niche

43)

Business publications are important to advertisers because they

A) are generally the only health care information providers. B) provide an effective way to reach consumers who are considered to be a part of niche markets. C) provide entertainment along with news and information to magazine readers. D) provide an efficient way of reaching the specific types of individuals who constitute their target market. E) offer companies a way of boosting membership in labor organizations.

44) Which of the following advertising media has the potential advantages of selectivity, reproduction quality, creative flexibility, and prestige? A) national newspapers B) magazines C) local radio D) billboards E) local newspapers

45) A company that manufactures paintball equipment might prefer to advertise in specialized publications rather than in newspapers due to

Version 1

A) the wider reach of specialized publications. B) the greater audience selectivity of specialized publications. C) fewer ads and less clutter in specialized publications. D) the higher degree of pass-along readership. E) the greater creative flexibility available in specialized magazines.

46)

Which of the following is a primary advantage of magazines? A) high selectivity B) low clutter level C) low lead time D) high reach E) large frequency

47)

Magazines that are published for special-interest groups are offering A) lower permanence. B) greater flexibility. C) greater selectivity. D) lower lead time. E) larger reach.

48) The New Jersey Concord is a magazine that targets the members of various law enforcement agencies in the state of New Jersey. Purely as a medium of advertisement, the magazine offers manufacturers of guns and bulletproof vests greater A) permanence. B) flexibility. C) demographic selectivity. D) geographic reach. E) reproduction.

Version 1

49) Which of the following is considered a primary benefit derived from using magazines as an advertising medium? A) higher reproduction quality B) greater reach C) lower costs D) selective binding E) creative inflexibility

50) The Suave Teen is a Canadian publication that primarily targets high school students. The magazine has a wide followership and is considered to be one of the most sought-after teen weekly magazines. This magazine offers marketers greater ________ selectivity. A) demographic B) psychographic C) lifestyle D) affective E) behavioral

51) Marketers for a fast-food restaurant want to achieve geographic selectivity in their magazine media schedule. To do so, they should advertise in A) magazines that target a particular area. B) special-interest farm publications. C) trade publications targeted at distributors and retailers. D) international editions of popular food magazines. E) general-interest business magazines.

52)

Buying ad space in regional editions of national magazines

Version 1

A) is no longer permissible due to recent anticompetition legislation. B) can reduce an advertiser’s cost per thousand to reach desired audiences. C) diminishes the value of pass-along readership. D) creates overlapping subscription data. E) can eradicate the problem of clutter.

53)

Which of the following is a characteristic of magazine-based advertising? A) greater creative flexibility B) poor reproduction quality C) limited selectivity D) lower costs E) impermanence

54)

Gatefolds, bleed pages, inserts, and creative space buys are ways to increase the A) cost efficiency of magazines. B) geographic flexibility of magazines. C) selectivity of magazines. D) creative appeal of magazine ads. E) selective binding ability of a magazine.

55) A third page that folds out to create an extra-large advertising spread in a magazine is called A) a bleed page. B) a printacular. C) a gatefold. D) a stock card fold. E) an overrun fold.

Version 1

56) The second cover of MagAuto opens up into a third page, which gives it an extra-large spread. In magazine advertising, this third page is referred to as A) a bleed page. B) a printacular. C) a gatefold. D) a page manipulator. E) an overrun.

57) Magazine advertisements that extend to the end of a page rather than leaving a margin around the ad are called A) gatefolds. B) bleed pages. C) overscans. D) overruns. E) total-page ads.

58) A magazine ad for Savor Raisins contains a swirl of dark chocolate with a top layer of raisins. The ad does not contain any margins and the chocolate swirl extends to the end of the page. This ad is an example of A) a gatefold. B) a bleed page. C) a die cut. D) an overrun. E) heavy card stock.

59) DigiSafe Inc. makes security systems for computer networks. It offers a fingerprint recognition program to its users. A magazine ad for DigiSafe products shows a lock with the words “Protected Zone” on it. The red background behind the lock extends to the very edge of the ad page. This ad is an example of

Version 1

A) a gatefold. B) a bleed page. C) a maximum-coverage ad. D) an overrun. E) a sticker.

60) Ads in magazines that use pop-ups, heavy inserts, talking ads, or other distractions to attract readers’ attention are sometimes referred to as A) multisensory ads. B) enhanced advertising pages. C) printaculars. D) fine-tuned sensory interceptors (FSIs). E) distracters.

61) A magazine ad for Relish Soda featured a pop-up cardboard replica of its soda cans. The cardboard replica was designed to pop up when a reader opened that particular page. This ad is an illustration of a A) bleed page. B) gatefold. C) multisensory ad. D) printacular. E) run-of-page ad.

62)

Critics argue that printaculars

Version 1

A) limit the creative flexibility of print media in terms of placement of advertising material. B) alter the appearance and feel of a magazine and a reader’s relationship to it. C) are not used enough to be considered a separate advertising category. D) result in horizontal promotional conflict among advertisers. E) hinder the evaluation of the overall benefits of an advertising media.

63) Raiment Inc. manufactures sewing machines. In an issue of Homespun Comrade, Raiment purchases the bottom quarter-page ad space on three successive pages to advertise the winter clearance sale on various models of sewing machines at Raiment authorized dealers. Raiment is using ________ to attract readers’ attention. A) a gatefold B) bleed pages C) a creative space buy D) an overrun E) a total-page ad

64)

Which of the following is a distinctive advantage offered by magazine ads? A) low lead time B) greater frequency C) higher reach D) long lifespan E) low costs

65) Chris O’Brian, an avid skier, takes a weeklong ski vacation every winter. To help plan his vacation, O’Brian consults all of the past issues of Scend magazine, a publication on adventure sports destinations. The way O’Brian uses this publication demonstrates which of the following advantages of magazines as an advertising medium?

Version 1

A) services B) permanence C) prestige D) creative flexibility E) geographic selectivity

66) CL Inc. runs a series of product ads in a popular magazine. The company believes that the magazine’s popularity and reputation will enhance the image of its products. Which of the following distinct positive features of magazines is the company trying to utilize in this scenario? A) geographic selectivity B) creative flexibility C) prestige D) permanence E) costs

67)

Which of the following statements is true of magazine advertising? A) It offers limited geographic selectivity. B) It is typically considered to lack permanence. C) It tends to extend the prestige associated with the magazine to the product. D) It is generally considered unsuitable for inexpensive consumer products. E) It is typically used only for B2B marketing.

68)

Which of the following statements about magazine ads is correct? A) They create lower customer receptivity. B) They do not offer permanence. C) They offer a potential for gaining prestige. D) They offer poor reproduction quality. E) They generally cost less than newspaper ads.

Version 1

69)

Consumers are generally receptive to advertising in magazines because A) ads provide additional information that may be useful in making a purchase decision. B) ads in magazines are intrusive and cannot be ignored. C) magazines are a low-involvement advertising medium. D) magazines contain a limited number of ads, so clutter is not an issue. E) of its very short lead time, providing up-to-the-minute information.

70) Which statement best explains the reason that consumers are more receptive to magazine advertising than to television advertising? A) Unlike television ads, magazine ads are invasive and not easy to ignore. B) Consumers become involved with magazines when they read them and are more likely to find ads acceptable or even enjoyable. C) The number of ads in magazines is much fewer than that of television, so consumers are not bothered by advertising clutter. D) More creative advertising options are available for magazines than those available for television advertising, implying that magazine ads are more interesting. E) Magazine advertising does not provide the psychographic or demographic selectivity that television advertising does.

71) Pluto Inc. prepares two magazine ads with slight regional variations. The ads are set to be launched in alternate copies of a particular issue. The company is using this as a test to identify which ad offers greater receptivity. In this scenario, Pluto is using A) a double run. B) a research run. C) a printacular. D) a split run. E) a bleed run.

Version 1

72) A(n) ________ test is a service offered by magazines where two or more versions of an ad are run in alternate copies of a particular issue of a publication. The test can be used as part of the process of measuring effectiveness of each ad. A) split-run B) overrun C) gatefold D) bleed page E) day-after-recall

73)

Which of the following statements is true of split runs? A) They are also known as bleed pages. B) They reproduce images using mechanical printing. C) They are usually printed in alternate copies of a specific magazine. D) They enable the creation of hundreds of copies in a continuous sequence. E) They are generally considered less effective than selective binding.

74)

What are magazines doing to reduce lead times for ads in their publications? A) using computer-based production methods B) hiring more advertising staff C) having clients develop their own ads D) limiting the choices of advertising formats

75)

One consequence of the long lead time for magazine advertisements is A) fewer companies advertising in magazines. B) lack of responsiveness to current events. C) lack of consumer engagement. D) fewer advertising staff.

Version 1

76) Marketers whose marketing plan calls for _________ will often advertise in magazines and other media, such as radio, television or online. A) high frequency B) broad reach C) selective marketing D) cost control

77) Which of the following are examples of special services offered by magazines to their advertisers? A) creative services B) market research C) account managers D) sales support

78)

Which of the following is a disadvantage associated with advertising in magazines? A) lack of permanence B) lack of prestige C) absence of consumer receptivity to ads D) limited reach and frequency E) creative inflexibility

79)

Which of the following statements is true of magazine advertising? A) It offers lower consumer receptivity and engagement. B) It offers relatively lower competition. C) It offers relatively lower reach and frequency than other media. D) It is generally considered to have a lower lead time. E) It does not offer selective binding opportunities.

Version 1

80)

Using multiple ads in the same issue A) is less expensive than personalized messaging. B) is considered to be an inefficient way to build frequency. C) is referred to as selective binding. D) is the most popular way to obtain greater reach. E) is known as split running.

81)

Which of the following is a disadvantage inherent in advertising in magazines? A) creative inflexibility B) lack of demographic selectivity C) poor reproduction quality D) long lead times E) low publication prestige

82) Which of the following is a disadvantage associated with magazines as an advertising medium? A) low receptivity to advertising by readers B) low demographic selectivity C) thin penetration of households D) reduced permanence and prestige E) inability to offer specialized services

83) The high ratio of advertising to editorial content in most magazines causes magazines to experience the problem of

Version 1

A) clutter. B) limited frequency. C) longer lead times. D) lower selectivity. E) low reproduction quality.

84)

Which of the following statements is true about clutter in magazine advertising? A) Clutter makes it easy for an advertiser to gain readers’ attention and draw them into

an ad. B) Most magazines devote less than 30 percent of their pages to advertising and clutter is typically controlled. C) The clutter problem for a magazine increases with more ad pages adding to its success. D) Most magazines are not concerned about the clutter problem since there is usually no other way for advertisers to reach the market they serve. E) Magazine publishers do not attempt to control the clutter problem by maintaining a reasonable balance of editorial pages to advertising.

85) Which of the following statements is true of magazine advertising in relation to the problem of clutter? A) Generally, only sports and fitness magazines experience the problem of clutter. B) Magazine publishers do not attempt to control the clutter problem. C) It is not as serious an issue for magazines as for radio or TV. D) The problem of clutter is usually solved with split runs. E) Typically, magazine readers are less tolerant toward clutter.

86)

Media buyers primarily evaluate magazines on the basis of

Version 1

A) the ability to offer specialized services such as personalized messages and split runs. B) the size and space of the bleed pages. C) their ability to deliver the advertiser’s message to as many people as possible in the target audience. D) their ability to provide or create a psychographic segregation. E) the pass-along readership offered.

87) ________ is the number of magazine copies distributed to original subscribers or purchasers. A) Primary circulation B) Total circulation C) Tangential readership D) Guaranteed circulation E) Pass-along circulation

88) ________ figures represent the number of individuals who receive a magazine publication through either subscription or store purchase. A) Selective-binding B) Lead-time C) Circulation D) Readership E) Clutter

89) When publications fix advertising rates based on a set average circulation figure that is nearly always below the actual circulation delivered by a given issue but carries no guarantee, they are using

Version 1

A) ancillary circulation rates. B) a circulation verification system. C) pass-along circulation rate scale. D) a circulation rate base system. E) a rebate system.

90)

The “50 percent rule” states that

A) copies that sold for less than half of the basic price of a magazine cannot be counted as paid circulation. B) magazines that have a higher than 50–50 ratio between ads and content are not eligible to be counted as a paid circulation. C) copies are counted as non-paid circulation if they were sold at more than 50 percent of its initial cost estimate. D) copies sold at greater than 50 percent of the value of its production cost cannot be counted as paid circulation. E) magazines are considered as print ads only if they sell more than 50 percent of the total production number.

91) Many business magazines are sent free to individuals whom a publisher believes can influence a company’s purchases for products and services advertised in the publication. Such magazines are published on a ________ basis. A) primary circulation B) guaranteed circulation C) pass-along circulation D) principal-circulation E) controlled-circulation

92) To be eligible for Alliance for Audited Media (AAM) verification audits, a magazine must meet what criterion?

Version 1

A) It must be published on a controlled-circulation basis. B) The magazine must be a business publication. C) The publication must have 70 percent or more paid circulation. D) The publication must be a member of the Magazine Publishers of America Trade Association. E) The publication must have a digital replica edition.

93)

Circulation verification services are important to media planners because

A) they provide reliable figures regarding the size and distribution of a magazine’s circulation. B) they furnish accurate information about the number of magazines in circulation that are actually read. C) they provide information on the lifestyle characteristics of the individuals who read various magazines. D) planners want to be able to predict the degree of clutter and how it will affect their advertising. E) planners receive advertising funding from various trade associations based on the number of magazines in circulation.

94) During her visit to a beauty salon, Lily browsed through Inner Beauty, a magazine dedicated to working women, while she was waiting at reception. She did not pay for the magazine and left it at the reception area where it was initially placed. This scenario is an illustration of A) primary readership. B) guaranteed readership. C) pass-along readership. D) total readership. E) principal readership.

95) Which of the following comparisons of primary in-home readers, pass-along readers, and out-of-home readers is true?

Version 1

A) Advertisers generally attach greater value to primary in-home readers than passalong readers. B) Pass-along readers and out-of-home readers are more likely to read a magazine than principal readers. C) Pass-along readers should be totally discounted in evaluating magazine readership. D) Pass-along readers generally spend more time with a magazine and pick it up more often than primary in-home readers. E) Out-of-home readers receive greater satisfaction from a publication than primary inhome readers.

96)

The total audience, or readership, of a magazine can be calculated by A) multiplying the total number of primary readers by the pass-along readers. B) multiplying the total readership by the average pass-along readership number. C) subtracting the ancillary readership number from the total readership count. D) multiplying the readers per copy by the circulation of an average issue. E) subtracting the pass-along readership number from the total readership count.

97) James regularly borrows a magazine from Lily, who subscribes to it. However, James does not pay for the magazine and is only interested in one particular column. In this scenario, Lily is considered to be A) an ancillary reader. B) a pass-along subscriber. C) a primary reader. D) a secondary subscriber. E) a total reader.

98)

Magazine advertising rates are primarily a function of

Version 1

A) selectivity. B) digital imaging. C) selective binding. D) circulation. E) pass-along readership.

99)

Which of the following statements is true about the use of color in magazine advertising?

A) The more the color used in an ad, the lower the advertising cost. B) Advertisers prefer using black and white ads because of the greater visual impact on portraits. C) Color ads are considered better suited for attracting and holding attention. D) Bleed pages are always less expensive than color pages with margins because less fine-tuning is required with bleed pages. E) Color ads are generally cheaper than black and white ads if they are placed on the front cover of a magazine.

100) ________ offer advertisers an opportunity to buy space in a group of publications as a package deal. A) Cross-media organizations B) Magazine networks C) Publication verification networks D) Magazine blocks E) Print networks

101) Which of the following is not one of the ways magazine publishers are looking to improve their positions?

Version 1

A) higher quality paper and ink B) stronger editorial platforms C) better circulation management D) cross-magazine and media deals E) database marketing

102)

Which of the following statements is true of weekly newspapers? A) They do not focus on news and recent events. B) They typically originate in small towns or suburbs. C) They are used exclusively by national advertisers. D) They are printed on a weekly basis due to the large volume of news. E) They are also known as national newspapers.

103)

National advertisers tend to avoid weekly newspapers because of A) their poor image. B) their high absolute cost. C) their duplicate circulation with daily newspapers. D) their broad geographic focus. E) the large number of local ads they typically contain.

104) ________ newspapers are daily publications that appeal to large regional advertisers that use specific geographic editions of these publications. A) Weekly B) National C) Sunday D) Special-audience E) Bimonthly

Version 1

105) Finn’s Hallmark News, a weekly newspaper, specifically targets philatelists and contains material about philately, postal history, and other related information. Finn’s Hallmark News is a A) trade newspaper. B) special-audience newspaper. C) demographic-oriented newspaper. D) newspaper supplement. E) regional newspaper.

106) ________ offer differentiated editorial content and are published for labor unions, professional organizations, industries, or hobbyists. A) Trade newspapers B) Newspaper supplements C) Regional newspapers D) Special-audience newspapers E) Demographic-oriented newspapers

107)

Newspapers targeted at various religious groups comprise a large class of A) gatefold papers. B) special-interest papers. C) syndicated newspaper supplements. D) national newspapers. E) consumer publications.

108) Although not a category of newspapers per se, ________ are valuable to advertisers that want to use a newspaper yet get four-color reproduction quality in their ads.

Version 1

A) daily newspapers B) classifieds C) magazine supplements D) freestanding inserts E) special-audience newspapers

109)

Which of the following statements is true about newspaper supplements? A) They are avoided by most national advertisers because they generate high clutter. B) They are generally considered unsuitable for national advertising due to their high

cost. C) They are similar to national magazines and carry national and regional ads in fourcolor reproduction quality. D) They appeal to advertisers who are not concerned about reproduction quality and who prefer to use black and white ads. E) They are a separate category of newspapers along with daily, weekly, and national newspapers.

110) ________ is a category of advertising that is found throughout a newspaper and generally includes illustrations, headlines, white space, and other visual devices in addition to the copy text. A) Display advertising B) Classified C) Preprinted insert D) Bleed ads E) Special advertising

111)

Which of the following statements is true of local display advertising?

Version 1

A) It is primarily used by supermarkets and department stores. B) It refers to newspaper display advertising done by marketers of branded products. C) It is primarily used by airlines, major retail chains, and automakers. D) It is used to market products but not services. E) It is not open to financial institutions such as banks and travel agencies.

112) Employment, automotive, and real estate are the three major categories of ________ advertising. A) local display B) special C) insert D) classified E) retail

113) Mars Inc. printed 1,200 brochures to distribute using a national newspaper. The brochures were handed over to the newspaper office and distributed accordingly. This scenario depicts the use of A) display advertising. B) classified advertising. C) a preprinted insert. D) a printacular. E) gatefold advertising.

114)

Which of the following statements is true of newspapers as an advertising medium? A) They do not enable marketers to use geographic selectivity. B) They are generally considered to have better reproductive quality than magazines. C) They offer high market penetration and coverage. D) They offer limited flexibility to advertisers. E) They typically have a long lifespan.

Version 1

115)

Which of the following statements is true of newspaper advertisements? A) They do not require the use of creative options. B) They are highly expensive to create. C) They can be reproduced quickly. D) They are considered inflexible during production. E) They typically offer limited selectivity.

116)

Newspapers generally offer more ________ than any other medium except direct mail. A) digital imaging B) geographic selectivity C) color advertising D) permanence E) creative options

117) Which of the following statements about the geographic selectivity offered by newspapers is true? A) Newspapers offer less geographic selectivity than most other media. B) Newspapers in large cities provide very little geographic selectivity to advertisers. C) Newspapers provide little geographic selectivity to local advertisers because of their inability to adapt ad campaigns to local market conditions. D) Newspapers provide geographic selectivity by creating strong sales potential in a particular area for national advertisers. E) Newspapers offer advertisers more geographic selectivity than direct mail.

118) Which of the following is considered to be an advantage of newspapers as an advertising medium?

Version 1

A) They offer several valuable specialized services to advertisers. B) They offer better reproductive quality than magazines. C) They generally have a long lifespan. D) They offer greater selectivity in terms of demography and lifestyle to advertisers. E) They are typically considered to be less cluttered than other print media.

119)

The coarse paper stock used in printing most newspapers leads to A) their limited pass-along readership. B) a lack of reader interest and involvement. C) the presence of extensive clutter. D) a lack of geographic selectivity. E) poor reproduction quality.

120) Pluto Inc. is planning to run an ad in a weekly newspaper. Which of the following disadvantages of newspapers as an advertising medium should Pluto Inc. consider? A) lack of geographic selectivity B) lack of demographic selectivity C) high cost of reproduction D) limitations in pass-along readership E) lack of reader involvement

121)

Which of the following statements about newspapers as an advertising medium is true?

Version 1

A) They do not suffer from clutter as most national newspapers have dedicated advertising sections. B) They do not facilitate the use of unconventional sizes and formats such as stairsteps, bookends, and half-page spreads. C) Unlike magazines, newspaper ads are generally easier to reproduce. D) Advertisers are required to use large space buys or color to counteract clutter. E) Creative options in newspapers are extensive due to the simple black-and-white layout.

122)

A clothing retailer would use an island ad to A) break through the clutter typically found in newspapers. B) create high reproduction-quality ads. C) make the newspaper accountable for sales generated by the ad. D) reduce the overall cost of newspaper advertising. E) identify potential target markets.

123) ND Daily, a local city newspaper, caters to the residents of the city as well as the suburbs located in a 20-mile radius around the city. The market area within the city is referred to as the city zone, and the market area in the suburbs whose residents trade with merchants in the city zone is referred to as the A) local zone. B) retail trading zone. C) demarcated zone. D) peripheral zone. E) special category zone.

124) National advertisers in the automotive, tobacco, and pharmaceutical fields are charged ________ for newspaper ads.

Version 1

A) retail advertising rates B) general advertising rates C) local advertising rates D) flat rates E) NNN rates

125) _________ apply to newspaper advertisers that conduct business or sell goods or services within the DMA. A) General advertising rates B) Flat rates C) Retail or local advertising rates D) Preferred-position rates E) Combination rates

126)

Which of the following statements is true of the standard advertising unit (SAU) system? A) It is also referred to as the agate line. B) It is used to determine basic newspaper advertising rates. C) It has complicated the newspaper purchase and production process. D) It cannot be applied to regional and local newspapers. E) It includes tabloid-size papers two columns wide.

127)

________ give advertisers a discount for using several newspapers as a group. A) Preferred-position rates B) Flat rates C) Local advertising rates D) General advertising rates E) Combination rates

Version 1

128)

When a newspaper offers a variety of discount options, it is using a(n) _____ structure. A) ROP B) inch rate C) open rate D) flat rate E) SAU rate

129) Basic rates quoted by a newspaper that call for an ad to be placed on any page or in any position desired by the paper are known as ________ rates. A) preferred-position B) open C) flat D) run-of-paper (ROP) E) combination

130) If a promoter of a boxing match wants to place an ad in the sports section of a newspaper, the promoter is likely to pay a(n) ________ rate. A) flat B) run-of-paper C) preferred-position D) agate E) SAU

131) Newspapers are more focused on ________ than on spending large sums of money to generate new subscribers.

Version 1

A) advertising revenue B) cost reduction C) retaining current subscribers D) increasing service area

132) Surveys show that the percentage of women who read a newspaper on a typical day recently declined to ________ percent. A) 39 B) 47 C) 59 D) 67 E) 69

Version 1

Answer Key Test name: Chap 12_12e 1) FALSE The print media are not intrusive like radio and TV, and they generally require some effort on the part of the reader for the advertising message to have an impact. For this reason, newspapers and magazines are often referred to as high-involvement media. 2) FALSE Geographic selectivity lets an advertiser focus ads in certain cities or regions. One way to achieve geographic selectivity is by using a magazine that is targeted toward a particular area. 3) FALSE Magazines are generally not as effective as other media in offering reach and frequency. While nearly 90 percent of adults in the United States read one or more consumer magazines each month, the percentage of adults reading any individual publication tends to be much smaller, so magazines have a thin penetration of households. 4) TRUE Very few publishers sell advertising space on the front cover of their magazines as the American Society of Magazine Editors guidelines discourage the practice. The front cover has always been considered editorial space and off limits to advertisers. 5) FALSE Newspapers are the largest of all advertising media in terms of total dollar volume. Newspapers are an important advertising medium to local and national advertisers. Version 1

6) FALSE The retail trading zone is the market outside the city zone whose residents regularly trade with merchants within the city zone. The city zone is a market area composed of the city where the paper is published and contiguous areas similar in character to the city. 7) TRUE The rates paid by general advertisers are, on average, 75 percent higher than those paid by local advertisers. Newspaper publishers claim the rate differential is justified as higher costs and commissions are involved, and because general advertising is less dependable than local advertising. 8) D Their wide variety makes magazines an appealing medium to a vast number of advertisers. Although TV accounts for the largest dollar amount of advertising expenditures among national advertisers, more companies advertise in magazines than in any other medium. 9) E One of the main advantages of using magazines as an advertising medium is their selectivity, or ability to reach a specific target audience. Magazines are the most selective of all media except direct mail. Most magazines are published for special-interest groups. 10) C Reading occurs at a less hurried pace and there is more opportunity to examine ads in considerable detail because of the longer life span of magazines. This means ads can use longer and more detailed copy. The permanence of magazines also means readers can be exposed to ads on multiple occasions. 11) C Version 1

Circulation fluctuates from issue to issue, particularly for magazines that rely heavily on retail or newsstand sales. Many publications base their rates on guaranteed circulation and give advertisers a rebate if the number of delivered magazines falls below the guarantee. 12) B Media buyers are generally skeptical about publications whose circulation figures are not audited by one of the verification services, and some companies will not advertise in unaudited publications. Circulation data, along with the auditing source, are available from SRDS or from the publication itself. 13) C Circulation is the second major source of revenue for most publications, and publishers must carefully manage the costs of attracting and maintaining additional readers or subscribers. One of the major challenges facing magazine publishers is trying to increase or even maintain their circulation bases. 14) C A native online ad takes on the look and feel of the surrounding content and its visual design and user experience are native or specific to the online site. 15) C Most weekly newspapers originate in small towns or suburbs where the volume of news and advertising cannot support a daily newspaper. These papers focus primarily on news, sports, and events relevant to the local area and usually ignore national and world news, sports, and financial and business news. 16) A

Version 1

Parade is the only remaining nationally syndicated Sunday magazine since USA Weekend suspended publication in 2014. 17) C Classified advertisements run in their own section, arranged under subheads according to the product, service, or offering being advertised. While most classified ads are just text set in small type, some newspapers also accept classified display advertising. 18) C Newspapers are flexible in terms of requirements for producing and running the ads. Newspaper ads can be written, laid out, and prepared in a matter of hours. 19) B Newspapers, like most other advertising media, suffer from clutter as the advertiser’s message must compete with numerous other ads for consumers’ attention and interest. Moreover, the creative options in newspapers are limited by the fact that most ads are black and white. Thus, it can be difficult for a newspaper advertiser to break through the clutter without using costly measures such as large space buys or color. 20) C Many newspapers charge flat rates, which means they offer no discount for quantity or repeated space buys. 21) B Total advertising revenue for newspapers (including print and digital) in the U.S. was just under $16 billion in 2018, compared to $20 billion in 2015, and is forecast to decline by nearly 10 percent annually over the next five years. 22) B Version 1

Newspapers are particularly important as a local advertising medium for hundreds of thousands of retail businesses and are often used by large national advertisers as well. 23) D Newspapers are still one of the primary advertising media in terms of both ad revenue and number of advertisers. They are particularly important as a local advertising medium for hundreds of thousands of retail businesses and are often used by large national advertisers as well. 24) B By becoming a highly specialized medium that reaches specific target audiences, the magazine industry has prospered. 25) A Weekly, monthly, and bimonthly are the most common magazine frequencies. 26) D The print media are not intrusive like radio and TV, and they generally require some effort on the part of the reader for the advertising message to have an impact. For this reason, newspapers and magazines are often referred to as high-involvement media. 27) B The role of magazines and newspapers in an advertiser’s media plan differs from that of the broadcast media because they allow the presentation of detailed information that can be processed at a reader’s own pace. 28) C The use of color has become a virtual necessity in most product categories, and more than two-thirds of all magazine ads now use color. Version 1

29) A Consumer magazines are bought by the general public for information and/or entertainment. Magazines can also be classified by frequency; weekly, monthly, and bimonthly are the most common. 30) A The media research company Standard Rate and Data Service (SRDS), the primary reference source on periodicals for media planners, divides magazines into three broad categories based on the audience to which they are directed: consumer (which include farm), health care, and business publications. 31) B Consumer magazines are bought by the general public for information and/or entertainment. 32) A Consumer magazines are best suited to marketers interested in reaching general consumers of products and services as well as to companies trying to reach a specific target market. 33) A NMen is likely to be an example of a consumer magazine. Consumer magazines are best suited to marketers interested in reaching general consumers of products and services as well as to companies trying to reach a specific target market. Consumer magazines are bought by the general public for information and/or entertainment. 34) B Marketers of tobacco products spend most of their media budget in magazines, since they are prohibited from advertising in the broadcast media.

Version 1

35) D In this scenario, Velocity Inc. should use regional editions of specialty magazines. Special-interest magazines assemble consumers with similar lifestyles or interests and offer marketers an efficient way to reach these people with little wasted coverage or circulation. 36) E Special-interest magazines assemble consumers with similar lifestyles or interests and offer marketers an efficient way to reach these people with little wasted coverage or circulation. 37) A Health care publications are a classification of business publications that target various areas including dental, medical and surgical, nursing, biotechnological sciences, and hospital administration. 38) A Farm publications are not classified with business publications because historically farms were not perceived as businesses. 39) D Trade magazines are a classification of business publications that are targeted to wholesalers, dealers, distributors, and retailers. Business publications are important to advertisers because they provide an efficient way of reaching the specific types of individuals who constitute their target market. 40) B Blooms is an example of a trade publication. Trade magazines are a classification of business publications that target wholesalers, dealers, distributors, and retailers. 41) D Version 1

Asea is an example of an industrial magazine. Industrial magazines are a classification of business publications that are directed at businesspeople in various manufacturing and production industries—for example, Automotive News, Chemical Week, and Industrial Engineering. 42) A General business magazines are a classification of business publications that are aimed at executives in all areas of business; examples include Forbes, Fortune, and Bloomberg Businessweek. 43) D Business publications are important to advertisers because they provide an efficient way of reaching the specific types of individuals who constitute their target market. Much marketing occurs at the trade and business-to-business level, where one company sells its products or services directly to another. 44) B Strengths of magazines include their selectivity, excellent reproduction quality, creative flexibility, permanence, prestige, readers’ high receptivity and involvement, and services they offer to advertisers. 45) B In the above scenario, the paintball manufacturer would prefer to advertise in a specialized publication due to the greater level of audience selectivity available. One of the main advantages of using magazines as an advertising medium is their selectivity, or ability to reach a specific target audience. 46) A One of the main advantages of using magazines as an advertising medium is their selectivity, or ability to reach a specific target audience.

Version 1

47) C One of the main advantages of using magazines as an advertising medium is their selectivity, or ability to reach a specific target audience. Most magazines are published for special-interest groups. 48) C In this scenario, the magazine offers greater demographic selectivity. Magazines can provide advertisers with high demographic and geographic selectivity. Demographic selectivity is the ability to reach specific demographic groups. Geographic selectivity lets an advertiser focus ads in certain cities or regions. 49) A One of the most valued attributes of magazine advertising is the reproduction quality of the ads. Magazines are generally printed on highquality paper stock and use printing processes that provide excellent reproduction in black and white or color. 50) A In this scenario, the magazine offers marketers greater demographic selectivity. Demographic selectivity is the ability to reach specific demographic groups such as men, women, older customers, teens, kids, etc. 51) A In this scenario, marketers for the fast-food restaurant should advertise in magazines that are targeted toward a particular area. Geographic selectivity lets an advertiser focus ads in certain cities or regions. One way to achieve geographic selectivity is by using a magazine that is targeted toward a particular area. 52) B

Version 1

The availability of regional and demographic editions can reduce the cost per thousand for reaching desired audiences. 53) A In addition to their excellent reproduction capabilities, magazines also offer advertisers a great deal of flexibility in terms of the type, size, and placement of the advertising material. 54) D Some magazines offer (often at extra charge) a variety of special options that can enhance the creative appeal of an ad and increase attention and readership. Examples include gatefolds, bleed pages, inserts, and creative space buys. 55) C A gatefold enables an advertiser to make a striking presentation by using a third page that folds out and gives an ad an extra-large spread. 56) C This scenario is an example of a gatefold. A gatefold enables an advertiser to make a striking presentation by using a third page that folds out and gives an ad an extra-large spread. It is often found at the inside cover of large consumer magazines or on some inside pages. 57) B Bleed pages are those where an advertisement extends all the way to the end of a page, with no margin of white space around the ad. 58) B The Savor Raisins ad is an example of a bleed page. Bleed pages are those where the advertisement extends all the way to the end of the page, with no margin of white space around the ad. 59) B Version 1

The DigiSafe ad is an example of a bleed page. Bleed pages are those where the advertisement extends all the way to the end of the page, with no margin of white space around the ad. 60) C There has been some backlash against various types of printaculars. Critics argue that they alter the appearance and feel of a magazine and the reader’s relationship to it. Advertisers do not want to run regular ads that have to compete against heavy inserts, pop-ups, talking ads, or other distractions. 61) D The Relish Soda ad is an illustration of a printacular. There has been some backlash against various types of printaculars. Critics argue that they alter the appearance and feel of a magazine and the reader’s relationship to it. Advertisers do not want to run regular ads that have to compete against heavy inserts, pop-ups, talking ads, or other distractions. 62) B Critics argue that printaculars alter the appearance and feel of a magazine and a reader’s relationship to it. Advertisers do not want to run regular ads that have to compete against heavy inserts, pop-ups, talking ads, or other distractions. 63) C In this scenario, Raiment is using a creative space buy to attract readers’ attention. Creative space buys are offered by magazines to enhance the creative appeal of an ad and increase attention and readership. Some magazines let advertisers purchase space units in certain combinations to increase the impact of their media budget. 64) D Version 1

A distinctive advantage magazines offer is their long lifespan— permanence. Magazines are generally read over several days and are often kept for reference. They are retained in the home longer than any other medium and are generally referred to on several occasions. 65) B In this scenario, the advantage of permanence is illustrated in the way O’Brian uses the publication. A distinctive advantage offered by magazines is their long lifespan—permanence. Magazines are generally read over several days and are often kept for reference. They are retained in the home longer than any other medium and are generally referred to on several occasions. 66) C This scenario is an illustration of the prestige that a magazine advertisement offers. A positive feature of magazine advertising is the prestige a product or service may gain from advertising in publications with a favorable image. Companies whose products rely heavily on perceived quality, reputation, and/or image often buy space in prestigious publications with high-quality editorial content whose consumers have a high level of interest in the advertising pages. 67) C A positive feature of magazine advertising is the prestige a product or service may gain from advertising in publications with a favorable image. Companies whose products rely heavily on perceived quality, reputation, and/or image often buy space in prestigious publications with high-quality editorial content whose consumers have a high level of interest in the advertising pages. 68) C

Version 1

A positive feature of magazine advertising is the prestige the product or service may gain from advertising in publications with a favorable image. Companies whose products rely heavily on perceived quality, reputation, and/or image often buy space in prestigious publications with high-quality editorial content whose consumers have a high level of interest in the advertising pages. 69) A With the exception of newspapers, consumers are more receptive to advertising in magazines than in any other medium. Magazines are generally purchased because the information they contain interests a reader, and ads provide additional information that may be of value in making a purchase decision. 70) B Consumers become involved with magazines when they read them and are also more likely to find ads acceptable, enjoyable, and even a valuable part of a publication. Magazine readers recognize that they control the rate and duration of their exposure to editorial content as well as advertisements and view ads as less disruptive to their media consumption experience. 71) D In this scenario, Pluto Inc. is using a split run. An important service offered by some magazines is split runs, where two or more versions of an ad are printed in alternate copies of a particular issue of a magazine. This service is used to conduct a split-run test, which allows an advertiser to determine which ad generates the most responses or inquiries, providing some evidence as to their effectiveness. 72) A

Version 1

An important service offered by some magazines is split runs, where two or more versions of an ad are printed in alternate copies of a particular issue of a magazine. This service is used to conduct a split-run test, which allows an advertiser to determine which ad generates the most responses or inquiries, providing some evidence as to their effectiveness. 73) C An important service offered by some magazines is split runs, where two or more versions of an ad are printed in alternate copies of a particular issue of a magazine. This service is used to conduct a split-run test, which allows an advertiser to determine which ad generates the most responses or inquiries, providing some evidence as to their effectiveness. 74) A Advances in digital publishing and the use of computer-based production methods are reducing the amount of lead time required to run an ad in a publication. 75) A Their long lead time means magazine ads cannot be as timely as other media, such as radio or newspapers, in responding to current events or changing market conditions. 76) B Marketers whose media plan calls for broad reach will often use magazines in conjunction with other media such as television, the Internet, and social media. 77) B A service offered by magazines (usually the larger ones) is research studies that they conduct on consumers. These studies may deal with general consumer trends, changing purchase patterns, and media usage or may be relevant to a specific product or industry. Version 1

78) D Although the advantages offered by magazines are considerable, they have certain drawbacks too. These include the costs of advertising, their limited reach and frequency, the long lead time required in placing an ad, and the problem of clutter and heavy advertising competition. 79) C Magazines are generally not as effective as other media in offering reach and frequency. 80) B Using multiple ads in the same issue of a publication is an inefficient way to build frequency. Most advertisers try to achieve frequency by adding other magazines with similar audiences to the media schedule. 81) D One drawback of magazines is the long lead time needed to place an ad. Most major publications have a 30- to 60-day lead time, which means space must be purchased and the ad must be prepared well in advance of the actual publication date. 82) C Magazines are generally not as effective as other media in offering reach and frequency. While nearly 90 percent of adults in the United States read one or more consumer magazines each month, the percentage of adults reading any individual publication tends to be much smaller, so magazines have a thin penetration of households. 83) A

Version 1

The clutter problem for magazines is something of a paradox: The more successful a magazine becomes, the more advertising pages it attracts, and this leads to greater clutter. Magazine publishers attempt to control the clutter problem by maintaining a reasonable balance of editorial pages to advertising. 84) C The clutter problem for magazines is something of a paradox: The more successful a magazine becomes, the more advertising pages it attracts, and this leads to greater clutter. Magazine publishers attempt to control the clutter problem by maintaining a reasonable balance of editorial pages to advertising. 85) C Clutter is not as serious an issue for the print media as for radio or TV, since consumers tend to be more receptive and tolerant of print advertising. They can also control their exposure to a magazine ad simply by turning the page. 86) C Media buyers evaluate magazines on the basis of their ability to deliver the advertiser’s message to as many people as possible in the target audience. To do this, they must consider the circulation of the publication as well as its total readership and match these figures against the audience they are attempting to reach. 87) A The number of magazine copies distributed to original subscribers or purchasers is known as primary circulation and is the basis for the magazine’s rate structure. 88) C

Version 1

Circulation figures represent the number of individuals who receive a publication through either subscription or store purchase. 89) D Under a circulation rate base system, rates are based on a set average circulation that is nearly always below the actual circulation delivered by a given issue but carries no guarantee. 90) A The long-standing “50 percent rule” states that copies that sell for less than half of the basic price of a magazine cannot be counted as paid circulation. 91) E Many magazines are published on a controlled-circulation basis, meaning copies are sent (usually free) to individuals a publisher believes can influence a company’s purchases. 92) C Only publications with 70 percent or more paid circulation are eligible for verification audits by Alliance for Audited Media (AAM). In 2002, the former Audit Bureau of Circulations approved new guidelines for counting magazine circulation and sales. The changes did away with the long-standing “50 percent rule,” under which copies that sold for less than half of the magazine’s basic price could not be counted as paid circulation. 93) A Circulation verification services provide media planners with reliable figures regarding the size and distribution of a magazine’s circulation that help them evaluate its worth as a media vehicle. 94) C Version 1

This scenario is an example of pass-along readership. Pass-along readership can occur when a primary subscriber or purchaser gives a magazine to another person or when a publication is read in doctors’ waiting rooms or beauty salons, on airplanes, and so forth. 95) A Advertisers generally attach greater value to a primary in-home reader than a pass-along reader or out-of-home reader, as the former generally spends more time with a publication, picks it up more often, and receives greater satisfaction from it. 96) D The total audience, or readership, of a magazine can be calculated by multiplying the readers per copy (the total number of primary and passalong readers) by the circulation of an average issue. 97) C In this scenario, Lily is considered the primary reader. Pass-along readership can occur when the primary subscriber or purchaser gives a magazine to another person or when the publication is read in doctors’ waiting rooms or beauty salons, on airplanes, and so forth. 98) D Magazine advertising rates are primarily a function of circulation. Other variables include the size of an ad, its position in a publication, the particular editions (geographic, demographic) chosen, any special mechanical or production requirements, and the number and frequency of insertions. 99) C Advertisers generally prefer color ads because they have greater visual impact and are superior for attracting and holding attention.

Version 1

100) B Magazine networks offer advertisers an opportunity to buy space in a group of publications as a package deal. 101) A Ink and paper costs are increasing, so publishers are not looking to spend more money on either one. Publishers are pursuing stronger editorial platforms, better circulation management, cross-magazine and media deals, database marketing, technological advances, and electronic delivery methods. 102) B Most weekly newspapers originate in small towns or suburbs where the volume of news and advertising cannot support a daily newspaper. These papers focus primarily on news, sports, and events relevant to a local area and usually ignore national and world news, sports, and financial and business news. 103) C Most national advertisers avoid weekly newspapers because of their duplicate circulation with daily or Sunday papers in the large metropolitan areas and problems in contracting for and placing ads in these publications. 104) B National newspapers appeal primarily to large national advertisers and to regional advertisers that use specific geographic editions of these publications. 105) B

Version 1

In this scenario, Finn’s Hallmark News is a special audience newspaper. A variety of papers offer specialized editorial content and are published for particular groups, including labor unions, professional organizations, industries, and hobbyists. These are known as specialaudience newspapers. 106) D Papers known as special-audience newspapers offer specialized editorial content and are published for particular groups, including labor unions, professional organizations, industries, and hobbyists. 107) B Newspapers targeted at various religious groups comprise a large class of special-interest papers. 108) C Although not a category of newspapers per se, many papers include magazine-type supplements, primarily in their Sunday editions. Supplements are valuable to advertisers that want to use the newspaper yet get four-color reproduction quality in their ads. 109) C Newspaper supplements are similar to national magazines and carry both national and regional advertising. Supplements are valuable to advertisers that want to use the newspaper yet get four-color reproduction quality in their ads. 110) A Display advertising is found throughout a newspaper and generally uses illustrations, headlines, white space, and other visual devices in addition to the copy text. 111) A Version 1

Local advertising refers to ads placed by local organizations, businesses, and individuals who want to communicate with consumers in the market area served by the newspaper. Supermarkets and department stores are among the leading local display advertisers, along with numerous other retailers and service operations such as banks and travel agents. 112) D Employment, real estate, and automotive are the three major categories of classified advertising. 113) C This scenario depicts the use of a preprinted insert. Preprinted inserts are a type of advertising distributed through newspapers. These ads do not appear in the paper itself; they are printed by an advertiser and then taken to the newspaper to be inserted before delivery. Many retailers use inserts such as circulars, catalogs, or brochures in specific circulation zones to reach shoppers in their particular trade areas. 114) C A primary advantage of newspapers is the high market coverage or penetration they offer advertisers. 115) C One advantage of newspapers is the flexibility they offer advertisers in terms of requirements for producing and running the ads. Newspaper ads can be written, laid out, and prepared in a matter of hours. 116) B Newspapers generally offer advertisers more geographic or territorial selectivity than any other medium except direct mail. 117) D

Version 1

National advertisers take advantage of the geographic selectivity of newspapers to concentrate their advertising in specific areas that they can’t reach with other media or to take advantage of strong sales potential in a particular area. 118) A The special services newspapers offer can be valuable to advertisers. For example, many newspapers offer merchandising services and programs to manufacturers that make the trade aware of ads being run for a company’s product and help convince local retailers they should stock, display, and promote the item. 119) E One of the greatest limitations of newspapers as an advertising medium is their poor reproduction quality. The coarse paper stock used for newspapers, the absence of color, and the lack of available time to achieve high-quality reproduction limit the quality of most newspaper ads. 120) B Pluto Inc. should consider the lack of demographic selectivity. While newspapers can offer advertisers geographic selectivity, they are not a selective medium in terms of demographics or lifestyle characteristics. 121) D The creative options in newspapers are limited by the fact that most ads are black and white. Thus, it can be difficult for a newspaper advertiser to break through the clutter without using costly measures such as large space buys or color. 122) A

Version 1

A clothing retailer would use an island ad to break through clutter found in newspapers. Many newspapers now offer advertisers the opportunity to use innovative shape-based ads using unconventional sizes and formats such as stairsteps, bookends, U-shapes, island ads, spadea ads, and half-page spreads in order to break through the clutter. 123) B This scenario describes a retail trading zone. The retail trading zone is the market outside the city zone whose residents regularly trade with merchants within the city zone. 124) B General advertising rates apply to display advertisers outside the newspaper’s designated market area (DMA) and to any classification deemed by the publisher to be “general” in nature. This includes ads run by national advertisers such as automotive, tobacco, packaged-goods, and pharmaceutical companies. 125) C Retail or local advertising rates apply to advertisers that conduct business or sell goods or services within the DMA. The rates paid by general advertisers are, on average, 75 percent higher than those paid by local advertisers. 126) B The column-inch and standard advertising unit (SAU) are used to determine basic newspaper advertising rates. 127) E

Version 1

Advertisers can buy newspaper space based on combination rates, where they get a discount for using several newspapers as a group. Typically, a combination rate occurs when a publisher owns both a morning and an evening newspaper in a market and offers a reduced single rate for running the same ad in both newspapers, generally within a 24-hour period. 128) D Many newspapers charge flat rates, which means they offer no discount for quantity or repeated space buys. Others have an open rate structure, which means various discounts are available. 129) D The basic rates quoted by a newspaper are run of paper (ROP), which means the paper can place an ad on any page or in any position it desires. 130) C In this scenario, the promoter is likely to pay a preferred-position rate. While most newspapers try to place an ad in a requested position, an advertiser can ensure a specific section and/or position on a page by paying a higher preferred-position rate. 131) A Circulation revenue for newspapers has held steady over the past few years, as many publishers are pursuing a “subscription-first model” by growing the number of subscribers rather than focusing on advertising revenue. They also have found that it is more cost-effective to focus on retaining subscribers than spending large sums of money to acquire new ones. 132) A

Version 1

Surveys show that the percentage of women who read a newspaper on a typical day declined from 67 percent in 1981 to 39 percent recently.

Version 1

CHAPTER 13 TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) Support media are also known as measured media because they are easy to measure. ⊚ ⊚

true false

2) Out-of-home advertising is one of the newest methods of advertising that has grown with the development of new technology. ⊚ ⊚

true false

3) Increased numbers of women in the work force have contributed to the increased popularity of transit media. ⊚ ⊚

true false

4) Nelson receives a pen and a calendar free of charge from a store where he makes regular purchases. The calendar and the pen could be classified as advertising specialties. ⊚ ⊚

true false

5) Mobile billboard ads enjoy high levels of recall and readership, leading to increased sales. ⊚ ⊚

true false

6) A disadvantage of transit advertising is its inability to provide exposure to a large number of people. ⊚ ⊚

Version 1

true false

7) A store in Kentucky that offers a 20 percent discount to shoppers who have the store’s name tattooed in a visible location on the body is using nontraditional support media. ⊚ ⊚

true false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 8) Start-up Services is a small entrepreneur coaching enterprise. With a limited advertising budget that does not afford the purchase of primary media, the advertising program is solely dependent on A) newspaper media. B) journal ads. C) television media. D) support media. E) radio ads.

9) Ads placed on the backs of envelopes that contain airplane tickets and on banners pulled by planes that fly over sports arenas are examples of A) support media. B) direct-response media. C) indirect communications. D) support media. E) category ads.

10) ________ media are used to reach those people in the target market the primary media may not have effectively reached and to reinforce their messages.

Version 1

A) Advertising B) Direct response C) Traditional D) Sales promotion E) Support

11) 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.

12)

Support media can be broadly categorized into A) outdoor media and transit media. B) nontraditional media and below-the-line support media. C) outdoor media and in-store media. D) traditional and nontraditional support media. E) aerial media and ambient media.

13) What combination of out-of-home advertising constitutes the majority of outdoor billings? A) street furniture and buses B) vinyl-wrapped posters and wall murals C) billboards and street furniture D) cinema and billboards E) wrapped vehicles and billboards

Version 1

14) Looking at the overall investment, aerial advertising is useful for reaching specific target markets and ________ in absolute terms. A) costly B) expensive C) not expensive D) not cheap E) cut-rate

15) The CEO of Start-up Services has placed an ad about the small entrepreneur coaching enterprise on her vehicle. This form of support media is an example of A) exterior place-based media. B) an outside poster. C) a terminal poster. D) specialty advertising. E) a mobile billboard.

16) Almost any size company can afford a mobile billboard, whose cost depends on the mobile board company’s fees and the A) cost of fuel. B) area. C) use of posters. D) use of specialty colors. E) advertising message.

17)

Shopping carts fitted with signage is an example of

Version 1

A) advertising appeal. B) digital out of home media. C) brand identity media. D) transit media. E) in-store media.

18) The advertising medium comprised of free items requiring no purchase or contribution is called A) advertising implements. B) advertising give-aways. C) advertising specialties. D) advertising favors. E) advertising tools.

19) Promotional products marketing can work for companies of any size to meet a variety of advertising objectives. The only real limit is their A) advertising appeal. B) imagination. C) brand identity. D) budget. E) business plan.

20) With the goal of reaching a broader audience, the CEO of Start-up Services has printed business card-size calendars and pens to distribute at the next conference exposition. She wants to provide something that will be with the potential client over time for

Version 1

A) advertising appeal. B) repeat business. C) brand identity. D) brand exposure. E) repeat exposure.

21) ________ media include billboards, street furniture, alternative media, and transit, as well as specific forms of radio. A) Radio advertising B) Aerial advertising C) Buzz advertising D) Multilevel advertising E) Out-of-home advertising

22) The ________ categorizes billboards, street furniture, alternative media, transit, and specific forms of radio as out-of-home advertising. A) Traffic Audit Bureau (TAB) B) Outdoor Advertising Association of America (OAAA) C) Competitive outdoor media report D) American Public Transportation Association (APTA) E) Point of Purchase Advertising Institute

23)

Of all out-of-home media, ________ advertising enjoys the highest outdoor billings. A) transit B) blimp C) airport D) billboard E) in-store

Version 1

24)

Which of the following statements is true of outdoor advertising?

A) Outdoor advertising is the newest form of advertising that emerged with the onset of technology. B) Messages communicated through outdoor advertising are often dissuasive. C) Outdoor advertising has plunged with the increasing number of women in the work force. D) Outdoor advertising is the only form of advertising that is independent of national legislation. E) Outdoor advertising is a pervasive form of communication for residents of urban and suburban areas.

25) Which of the following pieces of federal legislation resulted in the ban on interstate billboard advertising? 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)

26)

A major reason for the continued success of outdoor advertising is its A) ability to communicate complex messages. B) low cost. C) ability to eliminate waste coverage. D) ability to remain innovative through technology. E) ability to provide extremely accurate measures of the medium’s reach.

27)

Skywriting is a form of

Version 1

A) billboard advertising. B) transit advertising. C) digital advertising. D) blimp advertising. E) aerial advertising.

28)

Video advertising, digital billboards, and place-based advertising are forms of A) aerial advertising. B) television advertising. C) magazine advertising. D) digital out-of-home media. E) digital network advertising.

29) Cosmetics company Street Smart Inc. uses skywriting over local beaches to promote its range of beauty products for women. In this scenario, Street Smart is using A) guerrilla marketing. B) aerial advertising. C) specialty advertising. D) viral marketing. E) network advertising.

30) During a basketball game, Brendon sees an advertisement for “Swift” running shoes on a huge digital screen at Citygate Sports Arena. This ad is an example of A) aerial advertising. B) specialty advertising. C) a video advertising network. D) network advertising. E) a digital mobile billboard.

Version 1

31) Santander Bank did a neighborhood takeover in Boston, Massachusetts, which included advertising on bus shelters and kiosks. These are examples of A) street furniture. B) billboards. C) video advertising networks. D) network advertising. E) digital mobile billboards.

32) Britney visits a mall and notices an advertisement for Auburn Beauty shampoo on a large LCD screen. This ad is an example of A) a digital billboard. B) an advertising specialty. C) an aerial advertisement. D) a mnemonic. E) a mobile billboard.

33) ________ include(s) smaller signs that appear in restrooms, stairs, personal vehicles, and on specialty items. A) Mobile billboards B) Place-based advertising C) Transit advertising D) Aerial advertising E) Digital billboards

34) During a college football match, a giant blimp emblazoned with the slogan, “Entreat Sandwiches—A treat for your taste buds” is on display for the spectators. This is an example of

Version 1

A) transit advertising. B) mobile advertising. C) digital advertising. D) aerial advertising. E) specialty advertising.

35) During the opening ceremony of a national skateboarding championship at Harmon Beach, California, a hot air balloon with an advertisement for Fizzy soda is spotted by the spectators. This ad is an example of A) aerial advertising. B) transit advertising. C) mobile advertising. D) digital advertising. E) specialty advertising.

36)

Which of the following statements is true about aerial advertising? A) It is expensive in absolute terms. B) It can be used to reach specific target markets. C) It is seldom used by local advertisers. D) It is illegal at sporting events. E) It is generally used inside stores and small supermarkets.

37) Jimmy’s, a grocery store, advertises itself by painting its name, logo, and abstract images of its products on the sides of its delivery vehicles. This is an example of A) transit advertising. B) mobile billboard advertising. C) buzz advertising. D) digital advertising. E) in-store advertising.

Version 1

38) Ads on small boards that are mounted on trailers and driven around or parked in target geographic areas are known as A) aerial ads. B) mobile billboards. C) advertising specialties. D) ambient ads. E) pop-ups.

39)

The cost of mobile billboards depends on A) the number of clicks. B) the number of recalls. C) sales of the product advertised. D) the geographic area advertised in. E) the speed of the billboard.

40) A City of Boston public transit bus was painted to look like a large loaf of Galaxy Bread. This bus is an example of A) bulletin advertising. B) a mobile billboard. C) free-form advertising. D) a printacular. E) aerial advertising.

41) While shopping at a local retail store, Jenna sees an ad for Aileen sunscreen lotion on the back of her shopping cart. This ad is an example of

Version 1

A) aerial advertising. B) transit advertising. C) a mobile billboard. D) in-store media. E) interactive media.

42) ________ targets the millions of people who are exposed to commercial transportation facilities, including buses, taxis, commuter trains, trolleys, airplanes, and subways. A) Aerial advertising B) Transit advertising C) In-store advertising D) Specialty advertising E) Promotional products marketing

43) While commuting by a local bus, Trevor notices an ad for Tantalize Sandwiches above his seat. This ad is an example of A) transit advertising. B) an out-office media outlet. C) aerial advertising. D) a mobile billboard. E) specialty advertising.

44) A research study concluded that approximately two-thirds of all consumers’ purchase decisions are made while shopping. Given this fact, which of the following media should be most effective in influencing consumer decisions?

Version 1

A) nationally televised ads B) in-store media C) local newspaper coupon supplements D) parking meter advertisements E) billboards

45) While driving, Janice notices an animated electronic billboard ad for Zesty Soda on top of a passing taxicab. This is an example of A) specialty advertising. B) stationary advertising. C) transit advertising. D) aerial advertising. E) free-form advertising.

46)

An ad in the subway for a local Mexican restaurant is an example of A) a sales promotion. B) specialty advertising. C) transit advertising. D) aerial advertising. E) free-form advertising.

47)

There has been a renewed interest in transit advertising over the last few years due to A) the increased number of women in the work force. B) the development of Internet advertising. C) the ban on billboard advertisements for cigarettes. D) an increase in the number of consumers who are over 60. E) a change in entertainment venues.

Version 1

48) Kevin sees an ad for Crixus Car Rental on a luggage trolley at the airport. The ad is an example of A) a sales promotion. B) stationary advertising. C) transit advertising. D) aerial advertising. E) free-form advertising.

49) While traveling on a commuter bus, Lauren notices an ad for Flare deodorant above her seat. This is an example of ________ used in transit advertising. A) an outside poster B) an aerial banner C) a spectacular D) an inside card E) a terminal poster

50) Advertisements for restaurants, TVs, radio stations, or other products and services placed above the seats and luggage areas in commuter buses are known as A) aerial ads. B) in-store ads. C) terminal posters. D) inside cards. E) mobile ads.

51) While walking on the street, Carlos sees an animated electronic billboard in Spanish for Amado home appliances on top of a taxicab. This ad is an example of

Version 1

A) a terminal transit poster. B) an inside card. C) an outside poster. D) an interactive billboard. E) an aerial ad.

52) ________ are a form of transit advertising that appear on the sides, backs, and/or roofs of buses, taxis, trains, and subway and trolley cars. A) Inside cards B) Aerial ads C) Specialty ads D) Terminal posters E) Outside posters

53) A cab service company uses a global positioning satellite (GPS) system to customize the advertising messages shown on top of its taxicabs. This is an example of technology-driven ________ advertising. A) specialty B) transit C) aerial D) network E) broadcast

54) Floor displays, island showcases, electronic signs, and other forms of advertising that appear in train or subway stations and airline terminals are all forms of

Version 1

A) transit advertising. B) aerial advertising. C) buzz marketing. D) branded entertainment. E) above-the-line advertising.

55) Fervor Inc., a leading women’s clothing line, has printed its company name and logo on ballpoint pens, calendars, and key rings. As part of its promotional strategy, Fervor offers customers these items as complimentary gifts. These items are referred to as A) ambient products. B) premiums. C) advertising specialties. D) company benefits. E) support media products.

56) As a part of its corporate strategy, Helios Inc., an automaker, offers business gifts such as key chains, planners, and T-shirts to its customers for their patronage. In this scenario, Helios is using A) buzz marketing. B) guerrilla marketing. C) viral marketing. D) promotional products marketing. E) above-the-line media marketing.

57) Ether Inc., an electronics manufacturer, offers T-shirts with the company’s logo on them free of charge to its customers. Ether believes that the T-shirts will help promote the company’s products and attract more customers. This is an example of

Version 1

A) in-store advertising. B) specialty advertising. C) public relations enhancement. D) guerrilla marketing. E) product placement.

58) ________ is a medium of advertising, sales promotion, and motivational communication employing imprinted, useful, or decorative products that are distributed free. A) Buzz marketing B) Specialty advertising C) Synchro marketing D) Guerrilla marketing E) Direct-response advertising

59) Products such as free pens, calendars, and coffee mugs featuring a company’s name and used as promotional tools are referred to as A) premiums. B) advertising specialties. C) sales promotions. D) heuristics. E) mnemonics.

60) Ourea Inc., a financial consulting company, distributes free stationery items like ballpoint pens, notepads, and file covers with the company logo to its customers. These items are known as

Version 1

A) advertising specialties. B) product placements. C) premiums. D) heuristics. E) mnemonics.

61) If the objective is to achieve high levels of retention and make the communication a frequent reminder of a company’s name and message, which of the following support media should be employed? A) mobile billboards B) product placements C) advertising specialties D) in-flight advertising E) Yellow Pages

62) Cumulus Corp. wants to generate goodwill among its customers. It aims to make a favorable impression that can positively impact its sales and revenues. Which of the following forms of support media can help Cumulus attain its desired outcome? A) multilevel marketing B) movie theater advertising C) promotional products marketing D) aerial advertising E) guerrilla marketing

63)

Which of the following is a disadvantage of promotional products marketing?

Version 1

A) low level of frequency B) lack of audience selectivity C) lack of feedback channels D) lack of flexibility E) possibility of market saturation

64) A major advantage of outdoor advertising is it is one of the more ________ communication forms. A) pervasive B) persuasive C) penetrated D) pricy E) printed

65) Controversy has risen over the use of transit cards in subway systems that used to advertise food and sundries and are now replaced with A) recruitment posters. B) tobacco ads. C) vape product ads. D) public service announcements. E) alcohol ads.

66) Compared to television, magazines, newspapers, and radio advertising, the CPM of outdoor advertising generally costs A) extra. B) more. C) less. D) the same. E) over average.

Version 1

67) The CEO of Start-up Services is considering sharing ad space on street furniture with a realtor colleague who graduated from her entrepreneurial program. The colleague warned her that the ads’ exposure may lead to A) low waste coverage. B) lasting durability. C) wearout. D) low awareness. E) no effect on sales.

68) Investigating advertising options, the CEO of Start-up Services is looking at miscellaneous alternative media—forms that have not been traditionally used for advertising. She has learned that the relative costs for alternative media are not yet that A) high. B) low. C) reasonable. D) intermittent. E) predictable.

69)

Which of the following is an advantage of outdoor advertising? A) ability to communicate complex messages B) low cost C) elimination of waste coverage D) geographic flexibility E) limited exposure

70)

Which of the following is an advantage of outdoor advertising?

Version 1

A) no waste coverage B) ease of measurement of audience size C) wide coverage of local markets D) low costs E) slow wearout

71) is to

Outdoor advertising would best be suited for a company whose communication objective

A) attain brand awareness. B) explain a complex product advantage. C) create an attitude change. D) stimulate product trial for a new gadget. E) expand exposure time of its advertising messages.

72) Which of the following support media provides advertisers with wide coverage of local markets and high levels of frequency? A) outdoor advertising B) specialty advertising C) print media D) in-store advertising E) in-flight advertising

73)

Which of the following is a disadvantage of transit advertising? A) low frequency of exposure B) high relative costs C) varying mood of the audience D) limited exposure time to an ad E) immediate results

Version 1

74)

Which of the following is an advantage of indoor transit advertising? A) long length of exposure B) elimination of waste coverage C) no copyright limitations D) accurate measurement of audience mood E) selectivity based on audience lifestyle

75)

Which of the following is an advantage of promotional products marketing? A) shorter lead time as compared to other media B) wider audience reach C) elimination of market saturation D) consistent portrayal of strong company image E) high recall of advertiser’s name and message

76)

Which of the following statements is true of movie theater advertising? A) Absolute and relative costs per exposure are quite high in movie theater advertising. B) Movie theater ads offer low emotional attachment to moviegoers. C) Movie theater advertising does not provide demographic segmentation. D) Advertising in movie theaters offers lack of clutter as the number of ads is limited. E) CPM in movie theater advertising is lower than that of any other media.

77) Butterfly Wings Inc., a manufacturer of soft toys and greeting cards, planned to advertise its Valentine’s Day merchandise in movie theaters. Based on the audience profile, one week prior to St. Valentine’s Day, the company began screening its commercial before the start of two movies titled The Vow and Perfect Sense. Since both movies were romantic dramas, Butterfly Wings’ commercial evoked a positive response in moviegoers. In this scenario, which of the following advantages of movie theater advertising did the marketer exploit?

Version 1

A) lack of advertising clutter B) lower absolute costs C) demographic segmentation D) lower relative costs E) advertising proximity

78)

Which of the following is true of movie theater advertising? A) It promotes a company’s goodwill. B) It has the ability to target specific demographic segments. C) Its CPM is lower than that of any other medium. D) It has an inherent problem of clutter. E) It charges a premium for its advertisements.

79)

Which of the following is a disadvantage associated with movie theater advertising? A) lack of emotional attachment B) low audience exposure C) possible irritation to audience D) extensive clutter E) limited segmentation

80) Which of the following statements correctly compares the cost per thousand (CPM) for movie theater advertising with that of other media? A) The CPM for movie theater advertising is lower than that for magazines. B) Movie ads have a lower CPM than radio ads, but higher than newspaper ads. C) When compared to other advertising media, the CPM is quite high for movie ads. D) Unlike print media, the CPM is quite low for movie ads. E) The CPM for movie theater advertising is equal to that of other forms of advertising media.

Version 1

81) Technology developed by Clear Channel Outdoor Americas, which has tens of thousands of billboards across the United States, and ________ allows for tracking the movements of drivers who pass the billboards through their mobile phones. A) Verizon B) AT&T C) Nielsen D) Brandchannel E) Flickr

82) Which of the following reports provides information on major advertisers’ expenditures on outdoor media? A) Experian Simmons Market Research Bureau B) Point of Purchase Advertising International C) Geopath D) The American Public Transportation Association E) Competitive Media Reports

83) Which of the following statements is true of measurement in promotional products marketing? A) Reach and frequency are as easy to measure with promotional products marketing as with print advertising. B) Response to direct-mail advertising that includes promotional products marketing is typically used as a measure of all support media. C) Q-score is used as a measurement tool for promotional products marketing. D) Companies that use promotional products marketing are not interested in sales; they only want to create goodwill. E) There is no established ongoing audience measurement system for promotional products marketing.

Version 1

84) Anyone with an Android phone can scan an ad and see additional information overlaid in a virtual layer. For example, an ad for mangos can be scanned and a recipe will appear. This technology is called A) artificial intelligence. B) augmented reality. C) crafted reality. D) virtual reality. E) augmented intelligence.

85)

What is an advantage of using promotional product marketing? A) improved image B) market saturation C) high recall D) short lead time E) great reach

86) Advertising specialties can be used for recognizing employees. What is a disadvantage of promotional product marketing? A) low selectivity B) loss of goodwill C) frequency of exposure D) limited flexibility E) cheapened image

87) Which of the following does not use digital billboards with a camera inside to recognize audience characteristics?

Version 1

A) Intel B) NEC C) Kraft Foods D) adidas E) Electronic Privacy Information Center

88)

________ is the primary trade association of the out-of-home advertising industry. A) Traffic Audio Bureau B) Competitive Media Reports C) Nielsen Media Research D) Experian Simmons Market Research Bureau E) Outdoor Advertising Association of America

89)

Another name for alternative media is A) functional communications. B) nontraditional media. C) measured media. D) above-the-line media. E) nonstructured communications.

90) ________ is a nontraditional form of advertising that blends marketing and recreation through television, film, music talent, and technology. A) Flighting B) Branded entertainment C) Direct response promotion D) Publicity E) Sales promotion

Version 1

91) In a movie, the lead actor is shown wearing Zelus running shoes in several scenes. Marketers of Zelus are using the nontraditional support medium of A) product placement. B) specialty advertising. C) promotional products marketing. D) guerrilla marketing. E) movie theater advertising.

92) An agreement that states that Rochelle brand cosmetics will pay a fee to have its products prominently featured in 20 episodes of the soap opera Proclivity is an example of A) product placement. B) specialty advertising. C) promotional products marketing. D) guerrilla marketing. E) buzz advertising.

93) In ________, a manufactured article is woven throughout a program or becomes the program itself. A) specialty advertising B) interactive television ads C) movie theater advertising D) product integrations E) multilevel marketing

94) Whizz Soda, a soft drink manufacturer, created a music video as part of its marketing campaign. The video featured several popular artists from the music industry. When the video was screened on satellite television, the Whizz Soda logo was prominently visible in the top left corner of the television screen. This video is an example of

Version 1

A) guerilla advertising. B) advertainment. C) specialty advertising. D) ambient advertising. E) publicity.

95) The creation of video and/or music content by an advertiser in an attempt to engage viewers while advertising its product is known as A) video on demand. B) digital advertising. C) product integration. D) buzz marketing. E) advertainment.

96) ________ are specialized content programs that are developed by advertisers and provided online and to cable operators for free. A) Videos on demand B) Digital ads C) Advertising specialties D) Mnemonics E) Advertainments

97)

With reference to advertising media, ________ create(s) the strongest source association. A) product placements B) in-flight advertising C) promotional products marketing D) transit advertising E) spectaculars

Version 1

98)

A company promoting its product through product placements in movies benefits from A) potentially high exposure. B) low absolute cost. C) broadened appeal. D) lack of clutter. E) strong control over messages.

99)

Which of the following statements is true about product placement advertising?

A) The product placements benefit from low potential for exposure. B) There is a strong source association between actors and the products featured through product placements. C) The major advantage associated with the use of product placement advertising is its relatively low cost. D) The recall of product placements is generally lower than that of television ads. E) Alcohol and tobacco companies are legally prohibited from using product placements.

100)

Which of the following is a disadvantage associated with branded entertainment? A) high absolute cost B) low exposure number C) poor recall D) ineffective reach E) weakened brand image

101) Because advertisers have no say over how often and when their products will be shown, the lack of control is cited as a disadvantage of

Version 1

A) guerrilla marketing. B) specialty advertising. C) product placements. D) product linings. E) transit advertising.

102) The rapid growth of branded entertainment tie-ins has led to an overwhelming number of product placements and integrations, which will eventually result in A) positive audience reactions. B) consistently high product appeal. C) extended exposure of products to the audience. D) low relative and absolute costs. E) clutter and loss of effectiveness.

103)

Which of the following factors has contributed to the growth of guerrilla marketing? A) advances in technology B) changing social attitude C) reduced government regulations D) increased inflation E) increased deflation

104)

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

Version 1

105)

The strategy behind place-based media is to A) bring an advertising medium to a consumer. B) use the place element of the marketing mix to impact advertising. C) use mobile billboards. D) create a media vehicle that leads in its ability to attract and retain consumer attention. E) provide places that are free of clutter.

Version 1

Answer Key Test name: Chap 13_12e 1) FALSE Support media are referred to by several titles, among them alternative media, below-the-line media, nonmeasured media, and nontraditional media. 2) FALSE Out-of-home (OOH) advertising has probably existed since the days of cave dwellers. Both the Egyptians and the Greeks used it as early as 5,000 years ago. 3) TRUE Due in part to the increased number of women in the work force (they can be reached on their way to work more easily than at home), audience segmentation, and the fact that many people spend more time outside of the home than inside, transit continues to be a popular medium. 4) TRUE Advertising specialties are always distributed free—recipients don’t have to earn the specialty by making a purchase or contribution. There are thousands of advertising specialty items, including ballpoint pens, coffee mugs, key rings, calendars, T-shirts, and matchbooks. 5) TRUE A number of studies have shown that mobile billboards can lead to a high number of impressions, while a study conducted by the Product Acceptance and Research Organization indicates that mobile ads lead to high levels of recall and readership and were likely to have an impact on sales. Version 1

6) FALSE An advantage of transit advertising is its ability to provide exposure to a large number of people, although this audience may have certain lifestyles and/or behavioral characteristics that are not true of the target market as a whole. 7) TRUE People are allowing ads to be placed on their bodies, including their heads, necks, and thighs. This is an example of nontraditional support media. 8) D Support media are used to reach those people in the target market the primary media may not have effectively reached and to reinforce, or support, their messages. It is important to remember that some of these media are not used only for support, but for some companies may be the primary or sole medium used. 9) A Support media are used to reach people in the target market that the primary media may not have effectively reached and to reinforce, or support, their messages. Ads have appeared on manhole covers, inside restroom stalls, on bus shelters, in grocery stores, on hubcaps, on cell phones, and even on people’s bodies. 10) E Support media are used to reach those people in the target market the primary media may not have effectively reached and to reinforce, or support, their messages. 11) A

Version 1

Support media are used to reach those people in the target market the primary media may not have effectively reached and to reinforce, or support, their messages. 12) D Given the rapid emergence of a variety of new media, we can further divide support media into traditional and nontraditional support media categories. 13) C Out of home (OOH) advertising media encompass many advertising formats found out of the home. The Outdoor Advertising Association of America (OAAA) categorizes these media as out of home—including billboards, street furniture, place-based media, and transit. Billboards and street furniture together constitute the majority of the outdoor billings. 14) C Generally, aerial media is not expensive in absolute terms and can be useful for reaching specific target markets. 15) E Some companies paint their cars with ads; others paint trucks and vans. Still others put ads on small billboards, mount them on trailers, and drive around and/or park in the geographic areas being targeted. These are all considered mobile billboards. 16) B Costs of mobile billboards depend on the area and the mobile board company’s fees, though both small and large organizations have found the medium affordable. 17) E Version 1

Advertisers use in-store media such as in-store ads, aisle displays, store leaflets, shopping cart signage, and in-store TV to reach shoppers at the place where they buy. 18) C Advertising specialties are a medium of advertising, sales promotion, and motivational communication employing imprinted, useful, or decorative products. They are subsets of promotional products. Unlike premiums, with which they are sometimes confused, these articles are always distributed free—recipients don’t have to earn the specialty by making a purchase or contribution. 19) B Both small and large companies can employ promotional products marketing for a variety of objectives limited only by their own creativity. 20) E Most forms of specialty advertising are designed for retention. Key chains, calendars, and pens remain with a potential customer for a long time, providing repeat exposures to the advertising message at no additional cost. 21) E Out-of-home (OOH) advertising media encompass many advertising forms. The Outdoor Advertising Association of America, Inc. (OAAA) categorizes these media as out of home—including billboards, street furniture, alternative media, and transit. 22) B

Version 1

The Outdoor Advertising Association of America, Inc. (OAAA) categorizes out-of-home advertising as outdoor—including billboards, street furniture, alternative media, and transit—as well as specific forms of radio. 23) D Billboards constitute 65 percent of the outdoor billings. 24) E Outdoor advertising is certainly one of the more pervasive communication forms, particularly if a person lives in an urban or suburban area. 25) C Ever since Lady Bird Johnson tried to rid the interstate highways of billboard advertising during her husband’s presidency with the Highway Beautification Act of 1965, there has been controversy regarding its use. 26) D A major reason for the continued success of outdoor advertising is its ability to remain innovative through technology. 27) E Airplanes pulling banners, skywriting (in letters as high as 1,200 feet), and blimps all constitute aerial advertising. 28) D Digital outdoor media takes three forms: (1) video advertising networks, (2) digital billboards, and (3) place-based advertising. 29) B

Version 1

Street Smart Inc. is using aerial advertising. Airplanes pulling banners, skywriting (in letters as high as 1,200 feet), and blimps all constitute another form of outdoor advertising available to the marketer: aerial advertising. 30) C This scenario is an illustration of a video advertising network. Video advertising networks include digital video screens that appear in offices, stores, theaters, inside transit networks, and entertainment venues such as health clubs, sporting arenas, bars, and restaurants. 31) A Street furniture accounts for about $388.2 million, or 5 percent of outdoor advertising. 32) A The use of an LCD screen to advertise Auburn Beauty shampoo is an example of digital billboard advertising. Digital billboards are screens that transmit in LED (light emitting diodes) or LCD (liquid crystal display) technologies. Digital billboards include large boards found at sports and entertainment venues, retail locations (like malls), in transit locations (terminals, etc.) and at roadsides or large traffic locations. 33) B Place-based advertising, which is not a purely digital out-of-home medium, often uses digital technology to send its messages. These typically include smaller signs that appear in restrooms, stairs, personal vehicles, and on specialty items. 34) D This scenario is an example of aerial advertising. Airplanes pulling banners, skywriting (in letters as high as 1,200 feet), and blimps all constitute aerial advertising. Version 1

35) A The above scenario is an illustration of aerial advertising. Airplanes pulling banners, skywriting (in letters as high as 1,200 feet), and blimps all constitute another form of outdoor advertising available to a marketer: aerial advertising. 36) B Generally, aerial advertising media are not expensive in absolute terms and can be useful for reaching specific target markets. 37) B In this scenario, Jimmy’s is using mobile billboard advertising. Mobile billboards are a type of an outdoor advertising medium. Some companies paint their cars with ads; others paint trucks and vans. Still others put ads on small billboards, mount them on trailers, and drive around and/or park in the geographic areas being targeted. 38) B Mobile billboards are a type of an outdoor advertising medium. Some companies paint their cars with ads; others paint trucks and vans. Still others put ads on small billboards, mount them on trailers, and drive around and/or park in the geographic areas being targeted. 39) D Costs of mobile billboards depend on the area and the mobile board company’s fees. 40) B In this scenario, Galaxy Bread is using a mobile billboard medium. Mobile billboards are a type of an outdoor advertising medium. Some companies paint their cars with ads; others paint trucks and vans. Still others put ads on small billboards, mount them on trailers, and drive around and/or park in the geographic areas being targeted. Version 1

41) D The shopping cart ad is an illustration of in-store media. Advertisers use in-store media such as in-store ads, aisle displays, store leaflets, shopping cart signage, and in-store TV to reach shoppers at the place where they buy. 42) B Transit advertising is targeted at the millions of people who are exposed to commercial transportation facilities, including buses, taxis, commuter trains, trolleys, airplanes, and subways. 43) A The ad is an illustration of transit advertising. Transit advertising is targeted at the millions of people who are exposed to commercial transportation facilities, including buses, taxis, commuter trains, trolleys, airplanes, and subways. 44) B Advertisers use in-store media such as in-store ads, aisle displays, store leaflets, shopping cart signage, and in-store TV to reach shoppers at the place where they buy. 45) C In the above scenario, the a electronic billboard is an example of transit advertising. Transit advertising is targeted at the millions of people who are exposed to commercial transportation facilities, including buses, taxis, commuter trains, trolleys, airplanes, and subways. 46) C This ad is an example of transit advertising. Transit advertising is targeted at the millions of people who are exposed to commercial transportation facilities, including buses, taxis, commuter trains, trolleys, airplanes, and subways. Version 1

47) A Due in part to the increased number of women in the work force (they can be reached on their way to work more easily than at home), audience segmentation, and the fact that many people spend more time outside of the home than inside, transit continues to be a popular medium. 48) C This ad is an example of transit advertising. Transit advertising is targeted at the millions of people who are exposed to commercial transportation facilities, including buses, taxis, commuter trains, trolleys, airplanes, and subways. 49) D In this scenario, Lauren notices an inside card used in transit advertising. Inside cards are a form of transit advertising found in commuter buses and are placed above seats and luggage area. They can be used for advertising restaurants, TV or radio stations, or a myriad of other products and services. 50) D Inside cards are a form of transit advertising found in commuter buses and placed above seats and luggage area. They can be used for advertising restaurants, TV or radio stations, or a myriad of other products and services. 51) C

Version 1

The electronic billboard is an illustration of an outside poster. Advertisers use various forms of outdoor transit posters to promote products and services. These outside posters may appear on the sides, backs, and/or roofs of buses, taxis, trains, and subway and trolley cars. The increasing sophistication of this medium is demonstrated by a technology, developed by Vert, Inc. (a division of Clear Channel), that transforms ads on top of taxicabs into real-time animated electronic billboards. 52) E Outside posters may appear on the sides, backs, and/or roofs of buses, taxis, trains, and subway and trolley cars. 53) B This scenario is an example of transit advertising. The increasing sophistication of the transit media is demonstrated by a technology developed by Vert, Inc. (a division of Clear Channel) that transforms ads on top of taxicabs into real-time animated electronic billboards. A web server that communicates with a global positioning satellite (GPS) is built into the taxi-top screen. The GPS determines the taxi’s location and sends it to the local server, which then delivers the relevant ads for a particular area. 54) A Floor displays, island showcases, electronic signs, and other forms of advertising that appear in train or subway stations, airline terminals, and the like are all forms of transit advertising. 55) C

Version 1

In this scenario, Fervor Inc. is using advertising specialties as a promotional tool. There are thousands of advertising specialty items, including ballpoint pens, coffee mugs, key rings, calendars, T-shirts, and matchbooks. Unconventional specialties such as plant holders, wall plaques, and gloves with the advertiser’s name printed on them are also used to promote a company or its product; so are glassware, trophies, awards, and vinyl products. 56) D This scenario illustrates promotional products advertising. According to the Promotional Products Association International (PPAI), promotional products marketing is “the advertising or promotional medium or method that uses promotional products, such as ad specialties, premiums, business gifts, awards, prizes, or commemoratives.” 57) B The above scenario is an example of specialty advertising. Specialty advertising is a medium of advertising, sales promotion, and motivational communication employing imprinted, useful, or decorative products called advertising specialties, a subset of promotional products. 58) B Specialty advertising has now been provided with a new definition: A medium of advertising, sales promotion, and motivational communication employing imprinted, useful, or decorative products called advertising specialties, a subset of promotional products. Unlike premiums, with which they are sometimes confused (called advertising specialties), these articles are always distributed free—recipients don’t have to earn the specialty by making a purchase or contribution. 59) B

Version 1

Unlike premiums, advertising specialties are always distributed free— recipients don’t have to earn the specialty by making a purchase or contribution. There are thousands of advertising specialty items, including ballpoint pens, coffee mugs, key rings, calendars, T-shirts, and matchbooks. 60) A Ourea is using advertising specialties as a promotional medium. Advertising specialties are always distributed free—recipients don’t have to earn the specialty by making a purchase or contribution. There are thousands of advertising specialty items, including ballpoint pens, coffee mugs, key rings, calendars, T-shirts, and matchbooks. 61) C Most forms of specialty advertising are designed for retention. Specialties lead to high recall of both the advertisers’ name and message. 62) C In this scenario, Cumulus Corp. should use promotional products advertising. Promotional products are the only medium that generates goodwill in the receiver. Because people like to receive gifts and many of the products are functional (key chains, calendars, etc.), consumers are grateful to receive them. The products also lead to a favorable impression of the advertiser. 63) E With so many organizations now using promotional products marketing, the marketplace may become saturated. While you can always use another ballpoint pen or scratch pad, the value to the receiver declines if replacement is too easy, and the likelihood that you will retain the item or even notice the message is reduced. Version 1

64) A Outdoor is one of the more pervasive communication forms, particularly if one lives in an urban or suburban area. 65) D Transit cards can be controversial. For example, in the New York subway system, many of the ads for chewing gum, soup, and Smokey the Bear have given way to public service announcements about AIDS, unwanted pregnancies, rape, and infant mortality. While subway riders may agree that such issues are important, many of them complain that the ads are depressing and intrusive. 66) C The average CPM of outdoor advertising is often one-half of radio and far less than that of TV, magazines, and newspapers. 67) C Because of the high frequency of exposures, outdoor advertising may lead to a quick wearout. 68) A Because of the nontraditional nature of alternative media, many advertisers are using media not previously used for advertising, or that, in general, do not require high expenditures. As such, the absolute and relative costs are not yet that high. 69) D Outdoor advertising offers geographic flexibility. Outdoor ads can be placed along highways, near stores, or on mobile billboards, almost anywhere that laws permit. For local advertisers, outdoor ads can reach people in specific geographic and/or demographic areas. 70) C Version 1

With proper placement, a broad base of exposure is possible in local markets, with both day and night presence. 71) A Because of its impact (and the need for a simple message), outdoor advertising can lead to a high level of awareness. 72) A With proper placement of outdoor ads, a broad base of exposure is possible in local markets, with both day and night presence. Because purchase cycles are typically for 30-day periods, consumers are usually exposed to outdoor ads a number of times, resulting in high levels of frequency. 73) C A disadvantage associated with transit advertising is the varying mood of the audience. Sitting or standing on a crowded subway may not be conducive to reading advertising, let alone experiencing the mood the advertiser would like to create. Controversial ad messages may contribute to this less than positive feeling. 74) A Long length of exposure to an ad is one major advantage of indoor transit forms. The average ride on mass transit is 45 minutes, allowing for plenty of exposure time. 75) E An advantage of promotional products marketing is that use of advertising specialties lead to high recall of both the advertiser’s name and message. 76) D

Version 1

Lack of clutter is an advantage offered by advertising in movie theaters. Most theaters limit the number of ads. 77) C A key advantage of movie theater advertising is the ability to target specific demographic segments. The profile of a moviegoer is above average in education and affluence. The movie titles and ratings enable advertisements to reach specific groups. 78) B A key advantage of movie advertising is the ability to target specific demographic segments. The profile of a moviegoer is above average in education and affluence. The movie titles and ratings enable advertisements to reach specific groups. 79) C A major disadvantage of advertising in movie theaters is that many people do not wish to see advertising in these media. A number of studies suggest these ads may create a high degree of annoyance. 80) C While the cost of advertising in local theaters has been cited as an advantage because of the low rates charged, ads exposed nationally are often as much as 20 percent higher than an equal exposure on television. CPMs also tend to be higher in movie theater advertising than in other media. 81) B

Version 1

Technology developed by Clear Channel Outdoor Americas, which has tens of thousands of billboards across the United States, and AT&T, allows for tracking the movements of drivers who pass the billboards through their mobile phones. The data will assist in identifying the age and gender of persons driving by, and subsequently determine if they visit a store and where. 82) E Competitive Media Reports provides information on expenditures on outdoor media by major advertisers. 83) E Owing to the nature of the industry, specialty advertising has no established ongoing audience measurement system. 84) B A new augmented reality (AR) feature allows anyone with an Android phone camera can scan a poster and get additional information overlaid in a virtual layer over the poster. If you scan a poster promoting a pop star’s concert, for example, you could watch that star’s top music video. 85) C Advertising specialties lead to high recall of both the advertisers’ name and message. 86) E While most forms of specialty advertising are received as friendly reminders of the store or company name, the firm must be careful choosing the specialty item. The company image may be cheapened by a chintzy or poorly designed advertising form. 87) E

Version 1

The Electronic Privacy Information Center claims that the technology has the potential to violate one’s civil liberties and violates the First Amendment. 88) E The Outdoor Advertising Association of America (OAAA) is the primary trade association of the industry. It assists members with research, creative ideas, and more effective use of the medium. 89) B Support media are referred to by several titles, among them alternative media, below-the-line media, nonmeasured media, and nontraditional media. 90) B Branded entertainment is a form of advertising that blends marketing and entertainment through television, film, music talent, and technology. Essentially, the goal is to use entertainment media to gain consumers’ attention and exposure to products and/or brands. 91) A In the above scenario Zelus is using the nontraditional support medium of product placement. Much of the logic behind product placement is that since the placement is embedded in the script or program setting, it cannot be avoided, thereby increasing exposure. It is very rare to watch a movie or TV show without being exposed to one or more placements. 92) A

Version 1

In this scenario, Rochelle is using the nontraditional support medium of product placement. Much of the logic behind product placement is that since the placement is embedded in the script or program setting, it cannot be avoided, thereby increasing exposure. Product placements are not a new phenomenon as placements are known to have existed as early as the 1930s and were commonly employed via soap operas in the 1950s. It is very rare to watch a movie or TV show without being exposed to one or more placements. 93) D In product integrations, a product is woven throughout a program or becomes the program itself. 94) B The creation of video and/or music content by an advertiser in an attempt to entertain viewers while advertising their products is known as advertainment. 95) E The creation of video and/or music content by an advertiser in an attempt to entertain viewers while advertising their products is known as advertainment. 96) A Videos on demand (VODs) are specialized content programs offered through cable TV networks that are developed by advertisers and provided to the cable operators for free. 97) A Product placements are a way to achieve branded entertainment. An advantage of branded entertainment is that when consumers see their favorite TV celebrities or movie stars using certain brands, the association may lead to a favorable product image or even to sales. Version 1

98) A In regard to product placements, a large number of people watch movies each year. When this number is combined with the home video rental market and network and cable TV, the potential exposure for a product placed in a movie or on television is enormous. 99) B When consumers see their favorite TV celebrities or movie stars using certain brands, the association may lead to a favorable product image or even to sales. 100) A While the CPM may be very low for various forms of branded entertainment, the absolute costs may be very high, pricing some advertisers out of the market. 101) C In many movies and television shows, an advertiser has no say over when and how often a product will be shown. 102) E The rapid growth of branded entertainment tie-ins has led to an overwhelming number of product placements and integrations. Like other forms of advertising, too many placements and integrations will eventually lead to clutter and loss of effectiveness. 103) A Guerrilla marketers have benefited by technology in that they can be even more creative, as well as the fact that cell phones now have cameras, and through social media viewers can send pictures to others instantly. 104) B Version 1

The idea of bringing an advertising medium to consumers wherever they may be underlies the strategy behind place-based media. TV monitors and magazine racks have appeared in classrooms, doctors’ offices, and health clubs, among a variety of other locations. 105) A The idea that underlies the strategy behind place-based media is to bring an advertising medium to consumers wherever they may be.

Version 1

CHAPTER 14 TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) A major factor contributing to the success of direct marketing is that so many Americans are now “money-rich and time-poor.” ⊚ ⊚

Adding a promotional product to a direct mailer increases response rates. ⊚ ⊚

true false

A company can use direct marketing to build a favorable image. ⊚ ⊚

true false

4) When Nordstrom calls existing customers to notify them of a special gift with purchase, they are combining direct marketing with sales promotions. ⊚ ⊚

true false

Direct marketing is typically restricted to small companies seeking business. ⊚ ⊚

true false

6) The end of Gwen’s TV commercial for her Rockabilly aerobics program urges people to call immediately to place an order. This is an example of a one-step approach. ⊚ ⊚

Version 1

true false

7) By running the same ad on different stations, a direct marketer can determine the relative effectiveness of a medium itself. ⊚ ⊚

true false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 8) Direct mail, telemarketing, interactive TV, print, and the Internet are all A) direct selling. B) direct marketing. C) direct-response media. D) direct advertising.

9) If an advertisement gets the potential buyers to perform an action, such as taking a test drive, the advertisement has solicited A) buyer involvement. B) a behavioral response. C) sales revenue. D) targeted messaging.

10)

Which of the following is part of the promotional mix? A) customer profile B) direct-marketing activity C) sales promotion D) competitive research

11) ________ is a form of marketing in which organizations communicate directly with customers.

Version 1

A) Direct response B) Direct marketing C) Direct advertising D) Direct selling

12)

As part of the IMC, direct marketing can be combined with which of the following? A) customer profile B) public relations C) copyediting D) strategy

13)

Which of the following is a method of personal selling used to generate sales? A) direct mail B) radio spots C) party plans D) intermittent selling

14)

For-profit companies often use telemarketing for which of the following? A) competitive intelligence B) screening potential clients C) increasing the salesforce D) product market research

15) ABC Company is launching a new program in Indianapolis, IN. The program is designed for middle-aged parents who are taking care of both their own children and their parents. ABC is conducting a direct-mail marketing campaign to get those in their target market to call for an appointment. ABC is

Version 1

A) contributing to clutter. B) trying to obtain a behavioral response. C) leverage direct selling. D) in an overuse situation.

16) The two-step approach to direct marketing essentially relies on ________ medium(s) to generate a sales response. A) 1 B) 2 C) 2 or more D) 0

17) In the two-step approach to direct marketing, the first effort ________ and the second effort ________. A) screens, generates response B) generates response, screens C) screens, qualifies D) qualifies, screens

18)

In a direct mail campaign, what is one of the biggest keys to success? A) the product B) the mailing list C) the day of the week the mail is received D) the advertising company

19)

Direct mail is often called

Version 1

A) junk mail. B) trash mail. C) garbage mail. D) solicited mail.

20)

Which of the following is a disadvantage associated with direct marketing? A) selectivity B) waste coverage C) cost compared to online D) frequency

21)

Direct marketing allows marketers to test the ________ of an advertisement or campaign. A) likeability B) effectiveness C) clutter D) overuse

22)

Direct marketing A) is synonymous with word-of-mouth marketing. B) seeks the same objectives as personal selling strategies in an IMC plan. C) is one of the slowest growing forms of promotion in terms of dollar expenditures. D) is a valuable tool in the integrated communications program. E) cannot be combined with other forms of promotional media.

23)

Unlike traditional marketing, the typical goal of direct marketing is to

Version 1

A) create brand image. B) generate an immediate behavioral response. C) utilize telephone communication exclusively. D) create awareness. E) convey detailed information.

24) ________ is a system of marketing by which organizations communicate without intermediaries to the target customers to generate a response or transaction. A) Sales promotion B) Word-of-mouth marketing C) Synchro marketing D) Direct marketing E) Publicity

25)

The customer response to direct marketing can take the form of A) inquiries. B) product diversification. C) product segmentation. D) sales promotions. E) push promotions.

26) ________ is an interactive system of marketing which uses one or more advertising media to effect a measurable response and/or transaction at any location. A) Trade advertising B) Publicity C) Public relations D) Direct marketing E) Synchro marketing

Version 1

27)

Which of the following statements is true about direct marketing?

A) Direct marketing is suitable only for consumer-to-consumer advertising. B) Direct marketing involves marketing research, segmentation, and evaluation. C) Direct marketing has the same objectives as that of other promotional-mix tools. D) Direct marketing as a promotional media is suitable only for small retailers. E) Rapid increase in dual income families in America has led to a reduction in the use of direct marketing as a promotional media.

28)

Which of the following is an example of direct-response media? A) billboards B) place-based media C) the Internet D) product placement E) guerrilla media

29)

________ are the tools by which direct marketers implement the communication process. A) Directional pull strategies B) Sweepstakes C) Direct-response media D) Directional push strategies E) Direct encoders

30) Which of the following events is considered one of the major impetuses behind the growth of direct marketing?

Version 1

A) increase in the number of working women B) invention of the printing press C) development and expansion of the U.S. Postal Service D) development of multinational companies and international markets E) law that mandates public education

31) the

One of the reasons for the recent, rapid growth of direct marketing in American society is

A) fact that the United States has moved from an industrialized nation to a service nation. B) increase in the number of hours individuals spend watching television. C) nonproliferation of cellular phones. D) increased use of consumer credit cards. E) development of four-color printing presses.

32)

Which of the following statements is true about the growth of direct marketing?

A) Direct marketing is being used as a promotional media tool only after the invention of the Internet. B) Typically, few purchases being made with the use of credit cards are as a result of direct marketing. C) The fast-paced and changing values and lifestyles of consumers are decreasing the effectiveness of direct marketing in urban areas. D) The rapid decrease in dual-income families has led to growth in direct marketing. E) The Internet has made it easier for consumers to shop and for marketers to be successful in reaching the desired target markets.

33) A magazine ad for pet health insurance contains both a toll-free number and a website URL to enable readers to obtain further information. This ad is an example of combining direct marketing with

Version 1

A) trade promotions. B) public relations. C) advertising. D) personal selling. E) consumer promotions.

34) A direct-mail piece for a Vesta Scooters offers a $50 Visa gift card for anyone who test drives a scooter. This mailer is an example of combining direct marketing with A) public relations. B) advertising. C) personal selling. D) sales promotion. E) support media.

35) A radio ad for Good Doggos announced an upcoming sale on spring leashes for dogs so that owners can be prepared for walking their dogs in warmer weather. This ad is combining direct marketing with A) advertising. B) sales promotion. C) publicity. D) public relations. E) personal selling.

36) Joe receives print ads from Sally’s Smells that feature a scratch-and-sniff of its newest candle. Which of the following combinations of promotional media is Sally’s using?

Version 1

A) advertising and sales promotion B) direct marketing and advertising C) sales promotion and public relations D) direct marketing and sales promotion E) public relations and support media

37) Britney sees an infomercial for a home fitness machine. The infomercial provides a website address that one can access for further product information. Additionally, the website contains an order form where customers can fill in their mailing address. This is an example of combining A) support media with public relations. B) sales promotion with support media. C) personal selling with direct marketing. D) advertising with personal selling. E) direct marketing with advertising.

38) The Florence County Museum called a press conference to inform the public of the need for major repairs to prevent water damage to the museum’s collection of primitive paintings. During the conference, the museum representative announced that each family in Florence County and neighboring counties could expect to receive a donation envelope in the mail within the next few days. This is an example of combining direct marketing with A) trade promotions. B) public relations. C) advertising. D) personal selling. E) consumer promotion.

39) Tristan Inc., a manufacturer of consumer appliances, engages in social responsibility activities. To solicit funds for charitable organizations, it uses telemarketing to contact its highincome, upscale customers and ask them to make donations. Tristan is using a combination of

Version 1

A) publicity and public relations. B) direct marketing and public relations. C) direct marketing and personal selling. D) advertising and support media. E) personal selling and publicity.

40)

Telemarketing and direct selling are two methods of ________ used to generate sales. A) public relations B) sales promotion C) infomercials D) telemarketing E) advertising specialties

41)

A long commercial that is designed to fit into a 30- or 60-minute time slot is A) an infomercial. B) a sales promotion. C) direct selling. D) broadcast media. E) a television spot.

42) Venus Airlines sends out mailers and e-mails to its customers announcing promotional airfares. Which of the following combinations of promotional media is Venus using? A) advertising and sales promotion B) advertising and direct marketing C) sales promotion and direct marketing D) sales promotion and public relations E) direct marketing and personal selling

Version 1

43) Bianca receives an e-mail notifying her of the end-of-season sale at Hop & Shop, a popular retail chain. The e-mail also informs her that she is invited to enter into a sweepstakes contest. In this scenario, Hop & Shop is using a combination of A) publicity and public relations. B) advertising and personal selling. C) direct marketing with sales promotion. D) support media and advertising. E) direct marketing and personal selling.

44)

Which of the following statements is true of telemarketing as an advertising medium? A) It is not used by for-profit organizations to screen and qualify prospects. B) It is considered an ineffective medium of direct selling by most national advertisers. C) It is typically expensive and increases advertising overheads substantially. D) It is typically used by nonprofit organizations to solicit funds. E) It is considered to be an important component of sales promotion.

45) Atkins Auto, an automobile dealer, sends direct-mail pieces to its prospective customers, inviting them to visit its auto showroom to test-drive new cars. Customers who respond to the direct mail by visiting the showroom are provided with thorough information about the cars. Salespersons of the company receive extensive training and assume responsibility for the selling efforts in the showroom. This is an example of combining direct marketing with A) advertising. B) personal selling. C) public relations. D) sales promotions. E) support media.

Version 1

46) Amanda, a florist, is the owner of Flush Inc. She receives a mail from Pluto Corp., a manufacturer of foam products, offering a water-soluble foam brick frequently used for arranging fresh flowers. According to the offer, if Amanda places an order with Pluto, she will be automatically registered to win $10,000 in a customer appreciation contest. This is an example of combining direct marketing with A) sales promotion. B) public relations. C) advertising. D) personal selling. E) support media.

47) To encourage customers to open a mail offering them a subscription to Home Companion, a home furnishings magazine, the front of the envelope suggested that there was a gift inside. The envelope contained an attractively laminated bookmark. This is an example of combining direct marketing with A) personal selling. B) support media. C) place-based media. D) product placement. E) advertising.

48) is to

The most common direct-marketing objective that nonprofit organizations typically seek

A) elicit a behavioral response. B) reduce source derogations. C) generate goodwill. D) reduce postpurchase dissonance. E) solicit donations.

49)

Which of the following is an objective of direct marketing?

Version 1

A) to make use of celebrity endorsements B) to maintain customer satisfaction C) to engage in social responsibility initiatives D) to make innovative products E) to increase market diversification

50)

To successfully implement direct-marketing programs, a company must

A) concentrate on market diversification to expand its customer base. B) conduct a competitor analysis to assess the strengths and weaknesses of its competitors. C) determine which markets to target through the use of a list or marketing database. D) use unconventional techniques such as guerrilla marketing to attract customers. E) engage in extensive bait-and-switch marketing.

51)

A typical U.S. household receives an average of ________ direct-mail pieces per week. A) 9 B) 12 C) 17 D) 19 E) 22

52) The announcer on a television commercial said, “Get your credit card and call now to order an autographed copy of the Summer Dreams DVD.” This commercial is an example of using the ________ approach of direct marketing. A) two-step B) group C) one-to-one D) one-step E) three-step

Version 1

53) In the ________ approach of direct marketing, a medium is used directly to obtain an order. A) three-step B) one-to-many C) indirect D) one-step E) two-step

54) All the television commercials and print ads that urge customers to pick up their phone and call a toll-free number to place an order immediately make use of the ________ approach of direct marketing. A) one-step B) two-step C) one-to-one D) indirect E) telemarketing

55) The goal of the ________ approach of direct marketing is to generate an immediate sale when an ad is shown. A) two-step B) one-step C) RFM scoring D) indirect E) all-in-one

56) The ________ approach of direct marketing involves the use of more than one medium to screen potential buyers, leading to a response.

Version 1

A) two-step B) switch-and-bait C) RFM scoring D) indirect E) all-in-one

57) Under the two-step approach of direct marketing, the first effort is designed to screen, or qualify, potential buyers, and the second effort A) generates the response. B) creates brand awareness. C) reduces the postpurchase dissonance. D) increases source bolsters. E) creates interest in a product.

58)

Which of the following is employing a one-step approach to direct marketing?

A) an infomercial for workout equipment urging viewers to phone a toll-free number to place an order immediately B) a magazine subscription service that sends an announcement of an upcoming sweepstakes C) an ad advising television viewers to watch their mailboxes for a way to earn free calling cards D) a company asking if a homeowner is interested in an estimate for a vinyl siding E) an advertisement for an adhesive bandage announcing free gifts on purchase of bandages worth $50 and above

59) To purchase cookware, music CDs, and exercise videos advertised on television, consumers are asked to call a toll-free telephone number. Viewers are instructed to have their credit cards handy when they call to place an order. This form of direct marketing is referred to as

Version 1

A) outbound telemarketing. B) video texting. C) the one-step approach. D) the two-step approach. E) support marketing.

60) Erika sees an infomercial for Luster skin care products. During the infomercial, a toll-free number flashes on her television screen. She immediately picks her phone and dials the number to place an order for a body lotion and hair shampoo. This infomercial is an example of A) the party plan approach to direct marketing. B) the two-step approach to direct marketing. C) the one-step approach to direct marketing. D) repetitive person-to-person selling. E) nonrepetitive person-to-person selling.

61) Sophia watches a TV commercial for Missy 21, a women’s magazine. The commercial asks viewers to call a toll-free number to place an order for a one-year subscription to the magazine. It also announces that the first 200 callers to place an order will receive an additional subscription of three months at no extra charge. This is an example of using the ________ approach of direct marketing. A) two-step B) outbound C) buzz D) one-step E) bullseye

62) In direct-marketing situations, when it is necessary to screen or qualify potential buyers, it is advisable to use

Version 1

A) the two-step approach. B) the one-step approach. C) direct mail rather than telemarketing. D) direct-response television. E) SMRB’s data on direct-marketing purchasers.

63)

The two-step approach to direct marketing A) urges customers to make an immediate purchase. B) uses the first effort to screen potential buyers. C) is commonly found in direct sales. D) is typically followed by a sweepstakes contest. E) is similar to missionary selling.

64) Creative Crew is a direct-marketing company that sells merchandise such as T-shirts, customized coffee mugs, calendars, key chains, bags, and the like. It uses telemarketing to inform prospective customers about the range of products offered by the company. Interested customers are provided with a website URL, which contains a form where they place their purchase orders. This is an example of using A) sweeps marketing. B) direct marketing in combination with support media. C) specialty advertising. D) the one-step approach to direct marketing. E) the two-step approach to direct marketing.

65) Jason receives a call from a sales representative of Bell Chime Inc., a manufacturer of inflatable sofa beds. When Jason shows an interest in purchasing a 5-in-1 inflatable sofa bed, the sales representative urges Jason to come over to the company’s retail outlet. Bell Chime is utilizing

Version 1

A) a buzz approach to personal selling. B) repetitive person-to-person selling. C) specialty advertising. D) the one-step approach to direct marketing. E) the two-step approach to direct marketing.

66)

Which of the following statements is true of direct mail? A) Direct mail is often called “treasure mail”—the solicited mail one receives. B) Direct mail has been rendered ineffective with the advent of the Internet. C) Direct mail is useful only for low-cost products. D) Direct mail is not restricted to small companies seeking business. E) Direct mail is ineffective in targeting high-income, upscale consumers.

67)

Which of the following statements is true of direct mail?

A) Direct mail is facing significant competition from the Internet. B) Traditional direct-mail business has experienced higher response rates from many consumers with the advent of the Internet. C) It is synonymous with personal selling. D) It is reserved for high-end brands.

68)

________ is created from a database that sorts names based on segmented markets. A) A mailing list B) An infomercial C) A TV spot D) A web pages E) A mail shopping network

69)

Which of the following statements is true of mailing lists?

Version 1

A) They lead to a lot of waste coverage. B) They have the ability to segment markets on the basis of lifestyles. C) They are used in combination with infomercials. D) They constitute a payroll database of a company’s employees. E) They are typically considered to be an unethical strategy.

70)

Which of the following factors have increased the effectiveness of mailing lists? A) rapid technological development and new product innovations B) social networking sites C) segmentation on the basis of geography and demographics D) limiting consumer segregation E) improved lifestyle characteristics and increased purchasing power of consumers

71) Which of the following media has lower cost and greater convenience, raising concerns among traditional direct-mail marketers but at the same time creating better opportunities? A) television B) radio C) Internet D) outdoor advertising E) transit advertising

72) Which of the following statements is true of the use of catalogs in the direct-marketing industry?

Version 1

A) One of the disadvantages of catalogs is that they can be used only in the form of traditional hard copies; they cannot be used in conjunction with the Internet. B) The number of catalogs mailed and the number of traditional catalog shoppers has increased in the recent years. C) The emotional appeal of a traditional catalog exceeds that of online catalogs, and ultimately is one of the best ways to drive consumers online. D) Catalogs are ineffective due to their limited segmentation characteristics. E) Catalogs are designed for stimulating an immediate purchase behavior in customers; however, they are ineffective in attracting publicity.

73) Which of the following statements is true of the use of direct mail on the Internet (e-mail) in the direct-marketing industry? A) It is less targeted than traditional direct mail. B) It does not make use of mailing lists because such lists lead to spam messages. C) It attempts to reach consumers with specific needs through targeted messages. D) It is used only by business-to-business marketers. E) It has higher cost and lower effectiveness than traditional direct mail.

74) ________ is the electronic equivalent of junk mail—it is less targeted and is considered unwanted e-mail. A) Add-on B) Trojan C) Mnemonic D) Spam E) Plug-in

75)

The U.S. government has passed laws regulating the use of e-mail marketing because

Version 1

A) it results in high volumes of spam and many consumers consider it a nuisance. B) of the huge costs involved in monitoring Internet traffic. C) it violates the privacy of online users and makes unauthorized use of consumer data. D) it makes use of comparative advertising. E) it involves sharing of a company’s confidential data with the consumers.

76) Which of the following statements is true of the use of broadcast media by the directmarketing industry? A) Direct marketing in the broadcast industry does not use support advertising. B) The majority of direct-marketing broadcast advertising occurs through radio as opposed to TV. C) The use of broadcast media by the direct-marketing industry has witnessed a decline in the recent years. D) The two-step approach to direct marketing is common on the radio, particularly with local companies. E) When a toll-free number is included in a direct-response ad, it is called support advertising.

77) In ________, a product or service is offered and a sales response is solicited, through either the one- or the two-step approach to direct marketing. A) direct-response advertising B) direct-support advertising C) direct-ambient advertising D) personal selling E) sales promotion

78)

Direct marketing in the broadcast industry involves

Version 1

A) public relations and supplementary promotions. B) direct-response advertising and support advertising. C) a one-step direct-marketing approach to sales. D) add-on marketing. E) ambient advertising and aerial advertising.

79) A television commercial for an apparel brand urges viewers to call its toll-free number to place an order, immediately. The commercial announces a free gift hamper to consumers who place an order before midnight. The apparel brand is making use of A) ambient advertising. B) publicity. C) direct-response advertising. D) sales promotion. E) support advertising.

80) A television ad for Savory Sandwich instructs its viewers to look in their mailbox for coupon offers that will save them money on their next sandwich order. This commercial is an example of A) ambient promotion. B) support advertising. C) a one-step direct-marketing approach. D) add-on marketing. E) sweeps marketing.

81)

Which of the following statements is true of infomercials?

Version 1

A) Infomercials are only useful for marketing trends. B) Typically infomercials only use the two-step approach to direct marketing. C) The lower costs on cable and satellite channels have led to the growth of infomercials. D) According to broadcast standards, infomercials cannot exceed 30 minutes. E) Infomercials typically move consumers into the conviction stage of the hierarchy of effects model.

82) Which of the following is a short advertisement on television for items such as prescription medication, toiletries, auto insurance, or pizza? A) infomercial B) direct selling C) television spot D) personal selling

83)

Infomercials are A) primarily designed to sell products that are classified as trends. B) always televised during off-viewing hours. C) those ads that appear only in print media. D) a part of specialty advertising. E) ads that use both one- and two-step approaches.

84) Cassandra sees a 30-minute TV show on an entertainment channel that advertises various types of kitchen appliances manufactured by Evolve, a brand of home appliances. In the show, the host demonstrates the usage of different appliances and describes the features and benefits of each product. This show is an example of

Version 1

A) a sales promotion. B) personal selling. C) specialty advertising. D) buzz advertising. E) an infomercial.

85)

Which of the following factors has led to a dramatic increase in home shopping? A) the development of satellite connectivity B) the nationalization of telephone networks C) the development of high-definition television D) the shift in social preferences among consumers E) the widespread use of credit cards

86) Due to clutter and relatively high costs, the use of ________ by direct marketers does not result in returns as high as those for other forms of direct-marketing media. A) magazines and newspapers B) television and radio C) direct mail and catalogs D) telemarketing and home shopping E) TV spots and infomercials

87)

Which of the following statements is true of telemarketing? A) Telemarketing exclusively uses network television for direct marketing. B) Telemarketing is employed only in a one-step system. C) Business-to-business marketers do not use telemarketing. D) Telemarketing is only used by for-profit companies. E) Telemarketing is effective for charitable organizations.

Version 1

88) ________ is the personal presentation, demonstration, and sales of products to consumers in their homes. A) Home shopping B) Direct marketing C) Personal liaising D) Consultative selling E) Direct selling

89)

Which of the following is a form of direct selling? A) party plans B) home shopping C) out-of-home shopping D) place-based advertising E) sales promotions

90) ________ is when a salesperson visits a buyer’s home, job site, or other location to sell frequently purchased products or services. A) Repetitive person-to-person selling B) Nonrepetitive person-to-person selling C) Party plans D) Home shopping E) Telemarketing

91)

Which of the following statements is true of repetitive person-to-person selling?

Version 1

A) It involves the sale of frequently purchased products. B) It is not a useful method for selling durables. C) It is not considered suitable for selling services. D) It involves selling products that are considered to be seasonal. E) It involves selling products through home or office parties.

92) ________ is when a salesperson visits a buyer’s home, job site, or other location to sell infrequently purchased products or services. A) Repetitive person-to-person selling B) Nonrepetitive person-to-person selling C) Party plans D) Home shopping E) Telemarketing

93)

Which of the following statements is true of nonrepetitive selling?

A) It is not considered useful for selling products such as encyclopedias. B) It is considered to be an indirect sales technique. C) It does not involve selling products at a customer’s home, unlike repetitive person-toperson selling. D) It involves selling products at a customer’s workplace. E) It is synonymous with ambient selling.

94) Which of the following products are likely to be sold using a nonrepetitive person-toperson selling technique? A) detergents B) T-shirts C) dairy products D) Girl Scout cookies E) shoes

Version 1

95) __________ is when a salesperson offers products or services to groups of people through home or office gatherings and demonstrations. A) Repetitive person-to-person selling B) Nonrepetitive person-to-person selling C) Party plan D) Home shopping E) Telemarketing

96) Advertisers can measure the relative effectiveness of a direct-marketing program quickly by using A) cost per thousand (CPM). B) the breakeven point. C) reach and frequency. D) cost per order (CPO). E) net sales.

97) Which of the following measures aids direct marketers in evaluating the relative effectiveness of an ad based on the number of calls generated? A) cost per order (CPO) B) cost per thousand (CPM) C) cost per man-hour (CPMH) D) cost per new prospect (CPNP) E) sales per database name (SDN)

98) ________ is a simple formula that is used to assist marketers in determining the dollar value associated with a long-term relationship with a customer, thus evaluating his or her worth.

Version 1

A) Cost per thousand B) Consumer worth evaluation C) Customer lifetime value D) Customer profitability estimation E) Breakeven point

99) ________ is a measure of effectiveness used to determine whether or not a customer should be acquired, as well as to optimize service levels to existing customers. A) Customer Profitability Estimation B) Consumer Worth Evaluation C) Customer Lifetime Value D) Breakeven point E) Cost per order

100) Tyche Inc., an electronics manufacturer, wants to assess future revenues and profit streams from each of its customers. It is focusing on the satisfaction and retention of its more profitable customers instead of spending its marketing efforts on attracting uninterested customers. Tyche is using ________ as a measure of effectiveness. A) Customer Profitability Estimation B) Consumer Worth Evaluation C) Customer Lifetime Value D) breakeven point E) cost per order

101) Gina targets a $5 return per order and creates and runs an ad at a cost of $2,500. She considers the ad effective if it generates more than 500 orders. This is an example of a ________ calculation.

Version 1

A) Customer Profitability Estimation B) Consumer Worth Evaluation C) Customer Lifetime Value D) breakeven-point E) cost-per-order

102)

Which of the following is an advantage that direct marketing offers to advertisers? A) personalization of messages B) ability to create a mood C) exclusive image D) greater content support E) accuracy of lists

103)

Which of the following is a disadvantage associated with direct marketing? A) poor image B) poor selectivity C) inability to measure effectiveness D) low frequency level E) lack of segmentation

104)

Direct marketing lets an advertiser A) build a credible image about a company’s product by using direct mails. B) reach a large number of people and reduce or eliminate waste coverage. C) make accurate mailing lists consistently for targeting potential customers. D) create a desirable mood in consumers. E) market its products in a cost-efficient manner.

105)

As postal rates increase, direct-mail advertising is increasingly replaced with

Version 1

A) billboards. B) e-mail. C) infomercials. D) telemarketing. E) radio advertising.

106) Unlike magazines, in direct-response advertising, ________ is limited to the surrounding program or editorial content. A) mood creation B) profit C) image D) telemarketing E) spiffs

107) Lucia utilizes direct-response ads on TV, but they yield a lower-than-expected number of orders. A follow-up study of people who saw the ad revealed that they associate direct-response ads on TV with lower-priced products and low-budget ads. Which of the following disadvantages of direct marketing does the scenario highlight? A) image B) accuracy C) content support D) rising costs E) Do Not Call lists

Version 1

Answer Key Test name: Chap 14_12e 1) TRUE One of the major factors contributing to the success of direct marketing is that so many Americans are now “money-rich and time-poor.” 2) TRUE Adding a promotional product to a direct mailer has proven to increase response rates. 3) TRUE Many organizations use direct marketing to build an image, maintain customer satisfaction, and inform and/or educate customers in an attempt to lead to future actions. 4) TRUE Nordstrom is using a direct-marketing tool to inform customers of a sales promotion. 5) FALSE Direct mail is not restricted to small companies seeking business. Respected large companies and organizations in the retail financial services and fund-raising sectors (among others) commonly employ this medium. 6) TRUE In the one-step approach, the medium is used directly to obtain an order. 7) TRUE By running the same ad on different stations, a direct marketer can determine the relative effectiveness of a medium itself. Version 1

8) C Direct marketing is an aspect of total marketing—that is, it involves marketing research, segmentation, evaluation, and the like. Direct marketing uses a set of direct-response media, including direct mail, telemarketing, interactive TV, print, the Internet, and other media. 9) B While some organizations rely on direct marketing solely to generate a behavioral response, for many others, direct marketing is an integral part of the IMC program. 10) D Direct-marketing activities support and are supported by other elements of the promotional mix. 11) B Direct marketing is a system of marketing by which organizations communicate directly with target customers to generate a response or transaction. This response may take the form of an inquiry, a purchase, or even a vote. 12) D Whether through mail, print, or TV, the direct-response offer is an ad. Sometimes the ad supports the direct-selling effort. 13) D Telemarketing and direct selling are two methods of personal selling used to generate sales. 14) C

Version 1

Nonprofit organizations like charities often use telemarketing to solicit funds. For-profit companies—particularly those in the business-tobusiness market—are also using telemarketing with much greater frequency to screen and qualify prospects (which reduces selling costs) and to generate leads. 15) B Not all direct marketing seeks a behavioral response. Many organizations use direct marketing to build an image, maintain customer satisfaction, and inform and/or educate customers in an attempt to lead to future actions. 16) C The two-step approach may involve the use of more than one medium. The first effort is designed to screen, or qualify, potential buyers. The second effort generates the response (e.g., the order). 17) A The two-step approach may involve the use of more than one medium. The first effort is designed to screen, or qualify, potential buyers. The second effort generates the response. 18) B Keys to the success of direct mail are the mailing list, which constitutes the database from which names are generated, and the ability to segment markets and, of course, the offer. 19) A Direct mail is often called “junk mail”—the unsolicited mail you receive. More advertising dollars continue to be spent in direct mail than in almost any other advertising medium—an estimated $46 billion in 2014.

Version 1

20) C Direct marketing lets an advertiser reach a large number of people and reduces or eliminates waste coverage. 21) B Direct marketing allows for a strong ability to test the effectiveness of the overall program as well as specific elements. 22) D Direct marketing is a valuable tool in the integrated communications program, though it usually seeks somewhat different objectives. 23) B Companies believe that while promotional-mix tools such as advertising, sales promotion, support media, and personal selling are effective in creating brand image, conveying information, and/or creating awareness, going direct can generate an immediate behavioral response. Direct marketing is a valuable tool in the integrated communications program, though it usually seeks somewhat different objectives. 24) D Direct marketing is a system of marketing by which organizations communicate directly with target customers to generate a response or transaction. 25) A Direct marketing is a system of marketing by which organizations communicate directly with target customers to generate a response or transaction. This response may take the form of an inquiry, a purchase, or even a vote. 26) D

Version 1

The Direct Marketing Association (DMA) defines direct marketing as an interactive system of marketing which uses one or more advertising media to effect a measurable response and/or transaction at any location. 27) B Direct marketing is an aspect of total marketing—that is, it involves marketing research, segmentation, evaluation, and the like. 28) C Direct marketing uses a set of direct-response media, including direct mail, telemarketing, interactive TV, print, the Internet, and other media. 29) C Direct marketing uses a set of direct-response media, including direct mail, telemarketing, interactive TV, print, the Internet, and other media. These media are the tools by which direct marketers implement the communication process. 30) C The major impetus behind the growth of direct marketing may have been the development and expansion of the U.S. Postal Service, which made catalogs available to both urban and rural dwellers. 31) D There are now more than 1 billion credit cards—bank, oil company, retail, and so on—in circulation in the United States. This makes it feasible for consumers to purchase both low- and high-ticket items through direct-response channels and assures sellers that they will be paid. 32) E

Version 1

The rapid technological advancement of the electronic media and the Internet has made it easier for consumers to shop and for marketers to be successful in reaching the desired target markets and hence led to the growth of direct marketing. 33) C This scenario is an example of combining direct marketing with advertising. Direct marketing is in itself a form of advertising. Whether through mail, print, or TV, the direct-response offer is an ad. It usually contains a toll-free number or a form that requests mailing information. Sometimes the ad supports the direct-selling effort. 34) B This scenario is an example of combining direct marketing with personal selling. Direct-mail pieces are often used to invite prospective customers to visit auto showrooms to test-drive new cars; the salesperson then assumes responsibility for the selling effort. Automobile manufacturers and their dealers have both made effective use of this approach. 35) A This scenario is an example of combining direct marketing with advertising. Direct marketing is in itself a form of advertising. Whether through mail, print, or TV, the direct-response offer is an ad. It usually contains a toll-free number or a form that requests mailing information. Sometimes the ad supports the direct-selling effort. 36) B This scenario is an example of combining direct marketing with advertising. Direct marketing is in itself a form of advertising. Whether through mail, print, or TV, the direct-response offer is an ad. It usually contains a toll-free number or a form that requests mailing information. Sometimes an advertisement will be sent through direct mail. Version 1

37) E This scenario is an example of combining direct marketing with advertising. Direct marketing is in itself a form of advertising. Whether through mail, print, or TV, the direct-response offer is an ad. It usually contains a toll-free number or a form that requests mailing information. 38) B This scenario is an example of combining direct marketing with public relations. Public relations activities often employ direct-response techniques. Private companies may use telemarketing activities to solicit funds for charities or co-sponsor charities that use these and other direct response techniques to solicit funds. 39) B This scenario is an example of combining direct marketing with public relations. Public relations activities often employ direct-response techniques. Private companies may use telemarketing activities to solicit funds for charities or co-sponsor charities that use these and other direct response techniques to solicit funds. 40) D Telemarketing and direct selling are two methods of personal selling used to generate sales. Nonprofit organizations like charities often use telemarketing to solicit funds. For-profit companies are also using telemarketing with much greater frequency to screen and qualify prospects (which reduces selling costs) and to generate leads. 41) A An infomercial is a long commercial that is designed to fit into a 30minute or 1-hour time slot. 42) C

Version 1

Venus is combining direct marketing with sales promotion. Airlines send out mailers or e-mails announcing promotional airfares. 43) C This scenario is an example of combining direct marketing with sales promotion. Hop & Shop sends e-mail announcements of special end-ofseason sales and invites her to enter into a sweepstakes contest. Each of these is an example of a company using direct-marketing tools to inform customers of sales promotions. 44) D Nonprofit organizations like charities often use telemarketing to solicit funds. For-profit companies are also using telemarketing with much greater frequency to screen and qualify prospects (which reduces selling costs) and to generate leads. 45) B This scenario is an example of combining direct marketing with personal selling. Direct-mail pieces are often used to invite prospective customers to visit auto showrooms to test-drive new cars; the salesperson then assumes responsibility for the selling effort. Automobile manufacturers and their dealers have both made effective use of this approach. 46) A This scenario is an example of combining direct marketing with sales promotion. Airlines send out mailers or e-mails announcing promotional airfares. Retail outlets call their existing customers to notify them of special sales promotions. Each of these is an example of a company using direct-marketing tools to inform customers of sales promotions. 47) B

Version 1

This scenario is an example of combining direct marketing with support media. Adding a promotional product to a direct mailer has proven to increase response rates. 48) E Telemarketing and direct selling are two methods of personal selling used to generate sales. Nonprofit organizations like charities often use telemarketing (along with direct mail) to solicit funds. 49) B Not all direct marketing seeks a behavioral response. Many organizations use direct marketing to build an image, maintain customer satisfaction, and inform and/or educate customers in an attempt to lead to future actions. 50) C To successfully implement direct-marketing programs, companies must make a number of decisions. As in other marketing programs, they must determine (1) what the program’s objectives will be, (2) which markets to target (through the use of a list or marketing database), (3) what direct-marketing strategies will be employed, and (4) how to evaluate the effectiveness of the program. 51) D The average U.S. household receives 19 pieces of direct mail each week. 52) D This commercial is an example of the one-step direct marketing approach. In the one-step approach, a medium is used directly to obtain an order. TV commercials for products like wrench sets, workout equipment, or magazine subscriptions urge viewers to phone a toll-free number to place an order immediately. Their goal is to generate an immediate sale when the ad is shown. Version 1

53) D In the one-step approach, a medium is used directly to obtain an order. TV commercials for products like wrench sets, workout equipment, or magazine subscriptions urge viewers to phone a toll-free number to place an order immediately. Their goal is to generate an immediate sale when the ad is shown. 54) A In the one-step approach, a medium is used directly to obtain an order. TV commercials for products like wrench sets, workout equipment, or magazine subscriptions urge viewers to phone a toll-free number to place an order immediately. Their goal is to generate an immediate sale when the ad is shown. 55) B In the one-step approach, a medium is used directly to obtain an order. TV commercials for products like wrench sets, workout equipment, or magazine subscriptions urge viewers to phone a toll-free number to place an order immediately. Their goal is to generate an immediate sale when the ad is shown. 56) A The two-step approach may involve the use of more than one medium. The first effort is designed to screen, or qualify, potential buyers. The second effort generates the response (e.g., the order). 57) A The two-step approach may involve the use of more than one medium. The first effort is designed to screen, or qualify, potential buyers. The second effort generates the response (e.g., the order). 58) A

Version 1

In the one-step approach, a medium is used directly to obtain an order. TV commercials for products like wrench sets, workout equipment, or magazine subscriptions urge viewers to phone a toll-free number to place an order immediately. 59) C This scenario is an example of the one-step approach to direct marketing. In the one-step approach, a medium is used directly to obtain an order. TV commercials for products like wrench sets, workout equipment, or magazine subscriptions urge viewers to phone a toll-free number to place an order immediately. Their goal is to generate an immediate sale when the ad is shown. 60) C The above scenario is an example of the one-step approach to direct marketing. In the one-step approach, a medium is used directly to obtain an order. TV commercials for products like workout equipment, skin care products, or magazine subscriptions urge viewers to phone a tollfree number to place an order immediately. Their goal is to generate an immediate sale when the ad is shown. 61) D This scenario is an example of the one-step approach to marketing. In the one-step approach, a medium is used directly to obtain an order. TV commercials for products like wrench sets, workout equipment, or magazine subscriptions urge viewers to phone a toll-free number to place an order immediately. Their goal is to generate an immediate sale when the ad is shown. 62) A

Version 1

The two-step approach may involve the use of more than one medium. The first effort is designed to screen, or qualify, potential buyers. The second effort generates the response (e.g., the order). 63) B The two-step approach may involve the use of more than one medium. The first effort is designed to screen, or qualify, potential buyers. The second effort generates the response (e.g., the order). 64) E The above scenario is an example of the two-step approach to direct marketing. The two-step approach may involve the use of more than one medium. The first effort is designed to screen, or qualify, potential buyers. The second effort generates the response (e.g., the order). 65) E This scenario is an example of the two-step approach to direct marketing. The two-step approach may involve the use of more than one medium. The first effort is designed to screen, or qualify, potential buyers. The second effort generates the response (e.g., the order). 66) D Direct mail is not restricted to small companies seeking business. Respected large companies and organizations in the retail financial services, and fund-raising sectors (among others) commonly employ this medium. 67) A While direct mail continues to be a favorite medium of many advertisers, and projections are that the market will grow, this medium has been seriously threat-ened by the Internet. The lower cost of e-mail and the convenience of the Internet have raised concerns among traditional direct-mail marketers. Version 1

68) A The mailing list comes from a database from which names are generated and the ability to segment markets. 69) B Keys to the success of direct mail are the mailing list, which constitutes a database from which names are generated, and the ability to segment markets and, of course, an offer. Lists have become more current and more selective, eliminating waste coverage. Segmentation on the basis of geography (usually through zip codes), demographics, and lifestyles has led to increased effectiveness. 70) C Mailing lists have become more current and more selective, eliminating waste coverage. Segmentation on the basis of geography (usually through zip codes), demographics, and lifestyles has led to increased effectiveness. 71) C The lower cost of e-mail and the convenience of the Internet have raised concerns among traditional direct-mail marketers. Interestingly, the Internet is both a threat and an opportunity, as Internet companies have increased their expenditures in direct mail to drive potential customers to their sites. 72) C The emotional appeal of the traditional catalog exceeds that of online catalogs, and ultimately is one of the best ways to drive consumers online. 73) C

Version 1

Direct mail on the Internet (e-mail) is essentially an electronic version of regular mail. Like regular mail, it is highly targeted, relies heavily on lists, and attempts to reach consumers with specific needs through targeted messages. 74) D Sometimes users may also receive less targeted and unwanted e-mails. The electronic equivalent of junk mail, these messages are referred to as spam. 75) A Because of the high volumes of spam and the fact that many consumers consider it a nuisance, the U.S. government has passed laws regulating the use of e-mail marketing. 76) D It should be noted that the two-step approach is still very common on the radio, particularly with local companies. 77) A In direct-response advertising, a product or service is offered and a sales response is solicited, through either the one- or two-step approach to direct marketing. 78) B Direct marketing in the broadcast industry involves both direct-response advertising and support advertising. 79) C

Version 1

This scenario is an example of direct-response advertising. In directresponse advertising, a product or service is offered and a sales response is solicited, through either the one- or two-step approach. Examples include ads for apparel, exercise equipment, collectibles, and so on. Toll-free phone numbers are included so that a receiver can immediately call to order. 80) B Support advertising is designed to do exactly that—support other forms of advertising. Ads for Publishers Clearing House or Reader’s Digest or other companies telling customers to look in their mailbox for a sweepstakes entry are examples of support advertising. 81) C The lower cost of commercials on cable and satellite channels has led advertisers to a new form of advertising. An infomercial is a long commercial that is designed to fit into a 30-minute or 1-hour time slot. 82) C Referred to in the direct-marketing industry as short-form programs, TV spots include direct-response commercials commonly seen on television for products such as drugs and toiletries, audio and video supplies, household products, and more. 83) E Today’s infomercials use both one- and two-step approaches to direct marketing. 84) E This scenario is an example of an infomercial. An infomercial is a long commercial that is designed to fit into a 30-minute or one-hour time slot. Many infomercials are produced by advertisers and are designed to be viewed as regular TV shows. Version 1

85) E The widespread use of credit cards, along with the development of tollfree telephone numbers, has led to a dramatic increase in the number of people who shop via their TV sets through home shopping channels. 86) A Magazines and newspapers are difficult media to use for direct marketing. Because these ads have to compete with the clutter of other ads and because the space is relatively expensive, response rates and profits may be lower than in other media. 87) E Both profit and charitable organizations have employed telemarketing effectively in both one- and two-step approaches. 88) E Direct selling is the direct, personal presentation, demonstration, and sales of products and services to consumers in their homes. 89) A The three forms of direct selling are repetitive person-to-person selling, nonrepetitive person-to-person selling, and party plans. 90) A Repetitive person-to-person selling is when a salesperson visits a buyer’s home, job site, or other location to sell frequently purchased products or services. 91) A Repetitive person-to-person selling is when a salesperson visits a buyer’s home, job site, or other location to sell frequently purchased products or services. 92) B Version 1

Nonrepetitive person-to-person selling is when a salesperson visits a buyer’s home, job site, or other location to sell infrequently purchased products or services. 93) D Nonrepetitive person-to-person selling is when a salesperson visits a buyer’s home, job site, or other location to sell infrequently purchased products or services. 94) D Nonrepetitive person-to-person selling is when a salesperson visits a buyer’s home, job site, or other location to sell infrequently purchased products or services. 95) C Party plans are when a salesperson offers products or services to groups of people through home or office parties and demonstrations. 96) D Because they generate a direct response, measuring the effectiveness of direct-marketing programs is not difficult. Using the cost per order (CPO), advertisers can evaluate the relative effectiveness of an ad in only a few minutes based on the number of calls generated. 97) A Using the cost per order (CPO), advertisers can evaluate the relative effectiveness of an ad in only a few minutes based on the number of calls generated. 98) C

Version 1

A commonly employed measure of effectiveness is Customer Lifetime Value (CLTV). CLTV is a simple formula that is used to assist marketers in determining the dollar value associated with a long-term relationship with a customer, thus evaluating his or her worth. 99) C Customer Lifetime Value (CLTV) is used to determine whether or not a customer should be acquired, as well as to optimize service levels to existing customers. 100) C Companies use Customer Lifetime Value (CLTV) to assist them in assessing future revenues and profit streams from a customer, so that they can focus more on the satisfaction and retention of their more profitable customers. Thus, a company can focus more attention on profitable customers while spending less marketing effort on those with a low CLTV score. 101) E Using cost per order (CPO), advertisers can evaluate the relative effectiveness of an ad in only a few minutes based on the number of calls generated. 102) A One of the advantages of direct marketing is its ability to offer personalized messages. No other advertising medium can personalize a message as well as direct media. 103) A

Version 1

Direct-response ads on TV are often low-budget ads for lower-priced products, which contributes to the image that something less than the best products are marketed in this way. The mail segment of the directmarketing industry is often referred to as junk mail. Many people believe unsolicited mail promotes junk products, and others dislike being solicited. 104) B Direct marketing lets an advertiser reach a large number of people and reduce or eliminate waste coverage. 105) B As postal rates increase, direct-mail profits are immediately and directly impacted. The same is true for print costs, which drives up the costs of mailers and catalogs. The low cost of e-mail has led many companies to switch to this medium. 106) A In direct-response advertising, mood creation is limited to the surrounding program and/or editorial content. Direct-mail and online services are unlikely to create a desirable mood. 107) A Direct-response ads on TV are often low-budget ads for lower-priced products, which contributes to the image that something less than the best products are marketed in this way.

Version 1

CHAPTER 15 TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) One of the reasons for the rapid growth of the Internet is consumers’ increased desire for information. ⊚ ⊚

true false

Banner ads may be used for creating awareness or recognition. ⊚ ⊚

true false

3) Inorganic search results are those that appear because of their relevance to the search terms, not advertisements. ⊚ ⊚

true false

4) One of the perceived disadvantages of the Internet is that it cannot measure commercial effectiveness, due in part to its inability to measure activity in real time. ⊚ ⊚

true false

All of the methods used to measure Internet activity and effectiveness are accurate. ⊚ ⊚

true false

6) Behavior tracking on the Internet helps in tailoring the message to appeal to specific needs and wants of the target audience. ⊚ ⊚

Version 1

true false

7) One of the greatest disadvantages of the Internet is the lack of reliability of the research numbers generated. ⊚ ⊚

true false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 8) Which of the following media is considered interactive? A) journals B) television C) radio D) Internet E) newspapers

Which media offers consumers the opportunity to provide their own content? A) journals B) television C) radio D) Internet E) newspapers

10)

The early websites produced by major corporations contained mainly ________ content. A) brand image B) promotional C) brand identity D) positioning E) information

Version 1

11)

Unlike other marketing media, the Internet is best considered to be A) an advertising medium. B) a hybrid of media types. C) a digital medium. D) a branded medium. E) a communications medium.

12) Users can both purchase and offer goods for sale on the Internet, which makes the Internet A) a thorough-response medium. B) a direct-reaction medium. C) a direct-response medium. D) a direct-opposition medium. E) an indirect-reaction medium.

13) The Internet is used to create awareness, provide information, and influence attitudes, which makes the Internet A) a thorough-response medium. B) a cultural medium. C) a communications medium. D) an influential medium. E) an indirect-reaction medium.

14) The Internet allows companies to create awareness, provide information, and influence attitudes, while allowing users to both purchase and sell products. This makes the Internet both

Version 1

A) a marketing medium and a direct-response medium. B) a communications medium and a direct-response medium. C) a communications medium and a marketing medium. D) an advertising medium and a direct-response medium. E) a communications medium and an advertising medium.

15)

The Internet is a particularly valuable tool for creating awareness for A) corporations. B) mutual funds. C) banking. D) small businesses.

16) To provide information such as specifications and submission dates quickly to more potential candidates, the best low-cost media A) are trade magazines. B) is the Internet. C) are custom newsletters. D) is still the U.S. Post Office. E) are occupational journals.

17)

Traditional marketers moving to the Internet have had difficulty creating A) advertising appeal. B) primacy appeal. C) brand image. D) brand parity. E) a business plan.

18)

Using the Internet to encourage consumers to order trial products has been

Version 1

A) a challenge for large companies. B) a challenge for small companies. C) ineffective. D) effective. E) uncommon.

19) With access to retail sales through the Internet, many companies are ________ their “brick-and-mortar” stores. A) leasing space in B) repurposing C) retaining D) reducing E) reconfiguring

20)

Which of the following statements is true of the Internet?

A) The Internet is an interactive medium that allows for a two-way flow of information. B) The Internet is a communications medium rather than a direct-response medium. C) Rapid industrialization is the main factor that has led to the rapid growth of the Internet. D) The Internet is a unidirectional medium like all other media. E) The Internet does not allow consumers to control the messages and content they are exposed to.

21) When major corporations first began to conduct business on the Internet, they put up websites primarily for

Version 1

A) information purposes. B) product placement. C) increasing interest. D) inducing trial. E) increasing sales.

22)

The Internet A) enables only one-way information flow. B) is unidirectional. C) is a direct-response medium. D) doesn’t allow feedback from consumers. E) is independent of other media.

23) Naomi has a consulting firm. She wants to use her website to provide details about her company’s profile and to answer FAQs. Naomi’s primary objective while designing her website is to A) build a brand image. B) allow customer sampling. C) disseminate information. D) handle objections. E) induce trial.

24)

Which of the following factors has led to rapid adoption of the Internet? A) decreased Internet traffic B) decreased government regulations C) the increasing availability of leisure time D) the ability to conduct e-commerce through one’s personal computer E) reduction of clutter in terms of broadcast and print media

Version 1

25) in

When using the Internet as a medium, traditional marketers have experienced difficulties

A) creating awareness. B) generating interest. C) disseminating information. D) creating brand images. E) creating strong brands.

26) Digital Melody, an online digital media store, allows customers to “sample” songs before they make a purchase decision. In this scenario, Digital Melody is trying to A) disseminate information. B) create awareness. C) build an image. D) create a strong brand. E) stimulate trial.

27)

Which of the following statements is true of the Internet as a medium for branding?

A) Unlike print media, the Internet is not an effective tool for branding. B) Unlike using television as media, the Internet does not enable service branding. C) The Internet is more effective as a media for branding because it has a onedirectional communication flow. D) Unlike the radio, the Internet is not an effective medium for branding for large companies. E) The Internet is an effective medium for achieving communications objectives such as consideration and/or evaluation.

28)

Which of the following statements is true of the Internet as an advertising medium?

Version 1

A) Blogs and discussion boards are considered particularly useful for providing information to evaluate products and brands. B) Typically, the Internet does not enable marketers to stimulate trial of products or services. C) Most marketers believe that the Internet is not an effective medium for achieving communications objectives such as consideration and/or evaluation. D) The Internet cannot be used to create a “buzz” for a product or service. E) While it can be used to complement traditional advertising, the Internet cannot be used as an independent medium.

29) DigiCell Inc. sells computer equipment to small- and mid-sized businesses. Its website provides in-depth information on its products, customer service, shipping policies, and suppliers. Like most business-to-business sites, the primary objective of this website is to A) eliminate economies of scale. B) create diseconomies of scale. C) disseminate information. D) replace advertising in trade journals. E) prevent price wars.

30) In developing creative strategies specifically adapted to the medium, marketers have found it most difficult to A) disseminate information through the Internet. B) provide current price lists on the Internet. C) create viable links to suppliers using the Internet. D) overcome online buying-center barriers. E) create a brand image on the Internet.

31) The manufacturer of Allay pain reliever offered a free sample of the product to visitors who registered at its website. In this case, the communications objective of the website was to

Version 1

A) disseminate information. B) create a route for disintermediation. C) create an e-commerce site. D) stimulate trial. E) create a brand image.

32)

Direct selling of goods and services on the Internet is known as A) direct-response advertising. B) consumer-to-consumer selling. C) business-to-business selling. D) e-commerce. E) blogging.

33)

Which of the following statements is true of e-commerce? A) It is typically considered an ancillary sales medium. B) It cannot be used as a business-to-business medium. C) It is a direct sales strategy. D) It is synonymous with “brick-and-mortar” stores. E) It is a primary component of C2C marketing.

34) Companies like Red Bull use their website to engage visitors with news, live streaming, and video content. This is an example of using the Internet to A) generate interest. B) create awareness. C) disseminate information. D) create an image. E) create a strong brand.

Version 1

35) User-generated ads are possible with Web 2.0. The changes to the World Wide Web are primarily a result of the ________ of communications and interactivity. A) advertising appeal B) primacy appeal C) concentration D) brand parity E) decentralization

36) A window appearing or a character trying to get your attention as you access certain websites is known as A) contextual advertising. B) a pop-up. C) an interstitial. D) a pop-over. E) an organic search.

37)

_________ are smaller than a full screen but larger than a banner ad. A) Contextual ads B) Pop-ups C) Interstitials D) Pop-overs E) Organic searches

38)

While you are waiting for a site’s content to download, __________ ads may appear.

Version 1

A) contextual B) pop-up C) interstitial D) pop-over E) organic search

39)

An ad based on the content of a web page is called ________ advertising. A) contextual B) pop-up C) interstitial D) pop-over E) organic search

40) When retrieving information from the Internet, some web pages require that users watch an ad before they can access the content. These ads are known as A) video on demand. B) webisodes. C) pre-rolls. D) blogs. E) zip-proof advertising.

41) While some marketers are excited to use this feature of the Internet, others are skeptical about the limited reach and potential for deception. They are referring to A) video on demand. B) webisodes. C) pre-rolls. D) blogs. E) zip-proof advertising.

Version 1

42) The terminology used to refer to the early evolution of the World Wide Web, in which users could view web pages and interface with them but could not contribute to the content of the web page, is known as A) Web 2.0. B) Web network. C) Web 1.0. D) Web 1.8. E) Web HTML.

43)

Which of the following statements is true of Web 1.0?

A) It started with the bursting of the dot-com bubble. B) It consisted mainly of static sites resulting in a one-way flow of communication. C) It led to the decentralization of communications and interactivity. D) It led to dramatic changes in the World Wide Web with information provided by users as contributors. E) Web 2.0 users acted as contributors in Web 1.0.

44)

Which of the following statements is true of Web 2.0?

A) For the most part, Web 2.0 consists of static sites resulting in a one-way flow of communication. B) Web 2.0 has led to dramatic changes in the World Wide Web due to decentralization of communications and interactivity. C) Web 2.0 ended with the bursting of the dot-com bubble, leading to the development of Web 3.0. D) Web 2.0 is the terminology used to refer to the early evolution of the World Wide Web in which users could only view the web pages. E) Web 2.0 does not allow users to contribute to the content of a web page.

Version 1

45) ________ has led to dramatic changes in the World Wide Web, primarily as a result of decentralization of communications and interactivity, with information provided by users as contributors of content. A) Interstitial B) Web 1.0 C) Web 2.0 D) E-commerce E) B2B selling

46)

Like broadcast or print, the Internet A) can only disseminate and not assimilate information. B) offers extensive psychographic selectivity. C) is an advertising medium. D) has a low reach. E) has no problems related to user privacy.

47)

Banner ads A) are rarely used for advertising on the Web. B) are typically used in transit advertising. C) are synonymous with interstitials. D) cannot be used to achieve direct-marketing objectives. E) can be static, animated, or in flash.

48)

Banner ads are also known as

Version 1

A) interstitials. B) paid searches. C) pop-ups. D) side panels. E) links.

49) Yoana is an online women’s magazine that features an animated ad for Carmen’s Cosmetics on its website. If a visitor clicks on the ad, it will take the visitor directly to Carmen’s website. This ad is an example of A) an interstitial. B) a banner. C) a pop-up. D) a sponsorship. E) a paid search.

50)

________ occur when a company pays to sponsor a section of a site. A) Paid searches B) Interstitials C) Regular sponsorships D) Content sponsorships E) Irregular sponsorships

51)

Regular sponsorship occurs when A) a sponsor participates in providing the content. B) a sponsor approves the content of a site. C) a company pays to sponsor a section of a site. D) a sponsor contributes all or part of the content. E) advertisers pay only when a consumer clicks on their ad from a search engine page.

Version 1

52) The WEmpower.com website, an online women’s magazine, has a book section sponsored by Spellbound.com, an e-commerce website. Spellbound.com has a similar arrangement with Valdivia.com and a few other sites. In this scenario, Spellbound.com is using a(n) ________. A) button B) banner C) regular D) interstitial E) content

53)

Regular sponsorship occurs when a sponsor A) buys pop-ups. B) buys banners and headliners. C) takes a corporate sponsorship of a page. D) buys pop-unders. E) provides part of the content for a website.

54) Ruminate Inc., an architectural design firm, pays for name association on a section of Placeproperty.com, a real estate website. Ruminate also sponsors a section on Assetplus.com, another real estate website. Ruminate is using A) guerrilla sponsorship. B) paid search. C) regular sponsorship. D) pay-per-click advertisement. E) content sponsorship.

55) The Clement Network, a satellite television channel that broadcasts weather forecasts, pays money in return for its name association with Nahla.com, an Internet portal. The Clement Network also provides weather information for the site. Which of the following methods of Internet advertising is Clement Network using? Version 1

A) interstitials B) regular sponsorship C) push technology D) pop-unders E) content sponsorship

56) Gizmo World, a gadgets magazine, pays for name association on a section of TechAtlas.com, an e-commerce site that sells cell phones and accessories. Gizmo World features its own articles on TechAtlas.com. This is an example of A) an interstitial. B) a regular sponsorship. C) push technology D) a pop-under. E) a content sponsorship.

57) ________ are windows or animated creatures that appear on a user’s screen in an attempt to get his or her attention when the user is accessing a website. A) Pop-ups B) Interstitials C) Links D) Banner ads E) Blogs

58) ________ are ads that appear underneath a web page and become visible only when a user leaves the site.

Version 1

A) Links B) Interstitials C) Banner ads D) Pop-unders E) Blogs

59) While Ginger waited for Etenia.com’s apparel site to load, a small ad encouraging her to check out the summer clothing collection at Ritzy, a retail outlet, appeared on her computer screen, along with a link to Ritzy’s website. Ritzy’s ad is an example of A) content sponsorship. B) a pop-up. C) push technology. D) functional sponsorship. E) a pop-under.

60) After Jones finished reading an article titled “101 Places to Visit Before You Die” on the travel website Excursion 2.0, he closed the page. Subsequently, he saw an ad on his screen that invited him to subscribe to the print version of Excursion 2.0 magazine. This ad is an example of A) content sponsorship. B) a pop-up. C) push technology. D) functional sponsorship. E) a pop-under.

61) Jonathan visits iJaunty.com, a travel website, for information on the top 10 tourist destinations in the United States. When he exits the website, an ad for Emblazon cell phones appears on his computer screen, inviting him to purchase the cell phone at a discounted price. This ad is an example of

Version 1

A) content sponsorship. B) a pop-up. C) regular sponsorship. D) functional sponsorship. E) a pop-under.

62) ________ are ads that appear on a user’s computer screen while he or she is waiting for a site to load content. A) Pop-unders B) Pay-per clicks C) Interstitials D) Plug-ins E) Floating ads

63)

In general, a site that ranks higher on a search page A) is likely to receive more visitors. B) is considered more aesthetically appealing. C) has a better chance of attracting banner sponsorships. D) is likely to receive fewer regular sponsorships. E) is considered less secure from malware.

64) ________ search results are those that appear because of their relevance to the search terms, not advertisements. A) Interstitial B) Optimized C) Nonorganic D) Paid E) Organic

Version 1

65)

Pay-per-click advertising is an example of a(n) ________ search. A) interstitial B) organic C) nonorganic D) nonoptimized E) spam

66) ________ is the process of increasing the volume of traffic driven to a site by a browser or web portal through unpaid (organic) results as opposed to paid inclusion. A) Search engine optimization B) Linking C) Rich media marketing D) Behavioral targeting E) Contextual targeting

67)

Advertisers employ search engine optimization (SEO) to

A) more specifically target customers who may be interested in their offerings. B) attract customers to their products and services through the nonorganic search process. C) monitor Internet traffic. D) include attractive multimedia content in their web pages. E) sponsor a section of a website.

68) ________ is an Internet advertising strategy based on advertisers’ targeting consumers by tracking their web surfing patterns, such as which websites they have visited and/or searches they have made.

Version 1

A) Search engine optimization B) Linking C) Rich media marketing D) Behavioral targeting E) Contextual targeting

69)

Behavioral targeting can be done by A) compiling clickstream data and Internet protocol information. B) providing regular and content sponsorship in a section of a website. C) including animation and flash in websites. D) placing a website higher on a search engine page. E) employing pay-per-click advertising.

70) Clinton Steel Inc., a manufacturer of golf equipment, targets consumers based on their website surfing behaviors. The company places ads on websites where web traffic is highest for golf-related searches. In this scenario, Clinton Steel is using A) behavioral targeting. B) advertising allowance analysis. C) rich media marketing. D) video substitution selection. E) contextual advertising.

71) Once a user visits a website and leaves without purchasing a product, a specifically targeted ad is displayed on subsequent participating websites the user visits. This phenomenon is known as

Version 1

A) retargeting. B) rebounding. C) heuristic targeting. D) search engine optimization. E) contextual targeting.

72) Advertisers who target their advertising based on the information provided on web pages are using A) behavioral targeting. B) advertising allowance analysis. C) rich media marketing. D) database marketing. E) contextual advertising.

73) by

Whereas behavioral advertising tracks surfing behaviors, contextual ads are determined

A) the context in which ads are made. B) the content of a web page. C) content sponsorships. D) pay-per-click advertising. E) advertising concepts.

74) ________ is a form of paid media where the ad experience follows the natural form and function of the user experience in which it is placed. A) Behavioral targeting B) Native advertising C) Place-based advertising D) Support media advertising E) Content sponsorship

Version 1

75) The goal of ________ is to be less intrusive while catching the attention of a reader who is likely interested in the content matter he or she is reading. A) behavioral targeting B) native advertising C) ambient advertising D) specialty advertising E) buzz sponsorship

76) _____ are defined as “a broad range of interactive digital media that exhibit dynamic motion, taking advantage of enhanced sensory features such as video, audio, and animation.” A) Interstitials B) Support media C) Contextual ads D) Simulations E) Rich media

77)

________ can include all content that is created in flash. A) Banner ads B) Links C) Interstitials D) Rich media E) Paid searches

78) ________ are short feature films in which companies create their own content to advertise their products.

Version 1

A) Online commercials B) Video on demand C) Blogs D) Webisodes E) Interstitials

79) The term ________ refers to the Internet’s change from static sites to a decen-tralization of communications and interactivity, with information provided by users as contributors of content such as user-generated ad content. A) Web 1.0 B) Web 2.0 C) paid search D) rich media E) e-commerce

80) As defined by Merriam-Webster, ________ is “forms of electronic communication (such as Web sites) through which people create online communities to share information, ideas, personal messages, etc.” A) pre-rolls B) social media C) native ads D) rich media E) interstitials

81) ________ sites are platforms that allow users to share interests, activities, backgrounds, or real-life connections.

Version 1

A) Social networking B) Contextual advertising C) Behavioral targeting D) User-generated video sharing E) Podcast networking

82)

Which of the following statements is true of social media? A) It is typically not used by firms as a marketing medium. B) There are numerous ways for consumers to access social media. C) It can be accessed only using specific Internet protocols. D) It is a type of content aggregator. E) It is built on the ideological foundations of Web 1.0.

83)

As a powerful social medium, YouTube is a A) social networking site. B) content aggregator. C) podcast. D) blog. E) paid search engine.

84) ________ is a medium that uses the Internet to distribute audio or video files for downloading into iPads and other portable devices. A) Paid search B) Interstitial C) Podcasting D) Blogging E) Contextual advertising

Version 1

85)

The attractiveness of ________ increases with the growth of the market for iPads. A) social networking sites B) really simple syndication (RSS) C) user-generated video-sharing sites D) blogs E) podcasting

86) A ________ is a web-based publication consisting primarily of periodic articles, normally presented in reverse chronological order. A) widget B) button C) link D) blog E) podcast

87)

Which of the following statements is true of QR codes? A) They are primarily Web 1.0 applications. B) They are considered a part of augmented reality. C) They are used to reflect the writings of a business or a corporation. D) They are Web-based publications consisting primarily of periodic articles. E) They are being threatened by near-field communication.

88) Swish Turbo Inc., an automaker, conducted a sweepstakes in which people could win the car that Adam Gosling, a popular golfer, uses during tournaments. To enter the sweepstakes, consumers had to visit Swish Turbo’s website. Which of the following promotional mix elements did the automaker use on the Internet?

Version 1

A) direct marketing B) personal selling C) publicity D) public relations E) sales promotions

89) In the context of personal selling, which of the following factors is compelling companies to reduce new hires and even cut back on their existing sales forces? A) dissuasive medium B) poor reach C) extensive clutter D) limited information E) lack of credibility

90)

Which of the following statements is true of personal selling on the Internet?

A) Websites are ineffective in enhancing and supporting the personal selling effort. B) The Internet cannot be detrimental to those involved in personal selling in the business-to-business market. C) The low-cost and high-reach advantages of personal selling are allowing companies to increase new hires to expand their existing sales forces. D) Customers can determine if a company’s offering satisfies their needs through trial demonstrations or samples offered online. E) The disadvantage of personal selling on the Internet is that it is time consuming and also incurs additional costs.

91) Press releases about company growth prospects, recent innovations, and industry-related news are available at the website of Kinetics Inc., a manufacturer of automobile components for trucks. Anyone conducting research on the company has access to this information. In this scenario, Kinetics uses the Internet as a tool for

Version 1

A) sales promotion. B) personal selling. C) direct marketing. D) public relations. E) advertising.

92) Cats Purr is a non-profit organization that provides shelter and care for abandoned cats and kittens. Cats Purr uses its website to display information about the cats that are available for adoption and how they are cared for at the shelter, and to spotlight various volunteer efforts. This is an example of how the Internet can be used as a tool for A) sales promotion. B) personal selling. C) direct marketing. D) public relations. E) advertising.

93) Eli receives a mail offering a software program that helps in filing taxes online at a discounted price. This offer is an example of how the Internet and ________ can complement each other. A) sales promotion B) personal selling C) direct marketing D) public relations E) interconnects

94) Due to the rapid adoption of smartphones and tablets, ________ is now receiving strong attention from marketers.

Version 1

A) Web 1.0 B) mobile C) video on demand D) Web 2.0 E) pay-per-click advertising

95) Which of the following is a traditional method of measuring the effectiveness of the Internet? A) unique visitors B) post-click conversion C) view-through rate D) web page eye tracking E) recall and retention

96)

Which of the following is an Internet-specific measure that is used by companies? A) recall tests B) retention tests C) sales D) return on investment (ROI) E) cost per conversion

97)

In 2008, ________ became the official media coding standard. A) Ad-Id B) sales C) return on investment (ROI) D) cost per conversion E) recall tests

Version 1

98) With the many options for social media networks and digital advertising, services like media management, content development, publishing and monitoring are available. These services are called A) the advertising platform. B) application management. C) Internet management. D) social media management. E) the marketing platform.

99) Tools that provide the ability to track and report website traffic and monitor performance are called A) nonorganic search results. B) e-commerce. C) analytics. D) organic search results. E) social media management.

100)

Which of the following statements is true of the Internet? A) It can target very specific groups of individuals. B) It leads to a lot of waste coverage. C) It does not resemble a combination trade magazine and trade show. D) It does not carry one-to-one marketing messages. E) There is a lack of creative opportunity associated with its use.

101)

Which of the following has been cited as an advantage of using the Internet?

Version 1

A) prestige B) lack of clutter C) privacy of user data D) message tailoring E) reliability

102) While some marketers believe that the Internet will eventually replace traditional forms of advertising, others disagree. Which of the following weaknesses of the Internet would support the marketers who disagree? A) lack of reliability of research numbers generated B) inability to provide in-depth information C) inability to offer sight and sound D) lack of sales potential in the business-to-business segment E) lack of creative flexibility in creating tailored advertising messages

103)

Which of the following is a disadvantage associated with the Internet? A) target marketing B) message tailoring C) interactive capabilities D) clutter E) sales potential

104) Benita noticed that her banner ads had far lower click-through rates after the website on which she was advertising started offering additional ads on the home page. Benita is dealing with the ________ disadvantage associated with the Internet.

Version 1

A) clutter B) potential for deception C) measurement challenge D) privacy E) irritation

105) Josie is looking at a native ad on her smartphone, which makes it difficult to see the labeling of the content as an ad. Josie is dealing with the ________ disadvantage associated with the Internet. A) clutter B) potential for deception C) measurement challenge D) privacy E) irritation

106)

Which of the following has been cited as a disadvantage of using the Internet? A) inability to tailor messages B) lack of sales potential C) limited exposure D) potential for deception E) lack of creativity

Version 1

Answer Key Test name: Chap 15_12e 1) TRUE A number of reasons can be cited as to why the growth of the Internet has been so rapid. One is consumers’ increased desire for information that they are now able to obtain easily. 2) TRUE The most common form of advertising on the web is banner ads. Banner ads may be used for creating awareness or recognition, entering viewers into contests and sweepstakes, or direct-marketing objectives. 3) FALSE Organic search results are those that appear because of their relevance to the search terms, not advertisements. 4) FALSE One of the perceived advantages of the Internet is a company’s ability to measure commercial effectiveness, due in part to its ability to measure activity in real time. 5) FALSE Unfortunately, not all of the methods used to measure Internet activity and effectiveness are accurate. 6) TRUE As a result of precise targeting, messages can be designed to appeal to the specific needs and wants of the target audience, much of which comes from behavior tracking. 7) TRUE Version 1

One of the greatest disadvantages of the Internet and new media is the lack of reliability of the research numbers generated. 8) D Unlike other media, which are essentially unidirectional and responsible for the content provided and products and services offered for sale, the Internet is interactive, allowing for a two-way flow. 9) D The Internet is interactive, allowing for a two-way flow. Consumers not only control when and which messages and content they are exposed to, but now provide their own content, offer their own goods and services for sale, and provide feedback on the same as provided by others. 10) E When major corporations first began to conduct business on the Internet, they put up websites primarily for information purposes, and a one-way flow of information resulted. 11) B Unlike other media, the Internet is actually a hybrid of media. It is a communications medium, allowing companies to create awareness, provide information, and influence attitudes. It is also a direct-response medium, allowing users to both buy and sell products through ecommerce sites. And marketers increasingly use social media to build brand image and develop a more direct and involved relationship with customers through engagement with the brand. 12) A The Internet is a direct-response medium, allowing a user to both purchase and sell products through e-commerce sites like Amazon and eBay. 13) C Version 1

The Internet is actually a hybrid of media. In part, it is a communications medium, allowing companies to create awareness, provide information, and influence attitudes, as well as pursue other communications objectives. For others, it is also a direct-response medium, allowing a user to both purchase and sell products through e-commerce sites like Amazon and eBay. 14) B The Internet is a communications medium, allowing companies to create awareness, provide information, and influence attitudes, as well as pursue other communications objectives. It is also a direct-response medium, allowing users to both purchase and sell products through ecommerce sites like Amazon and eBay. 15) D While a valuable tool for creating awareness—particularly for smaller companies that may have limited advertising budgets—the Internet is not likely to be the most effective of the IMC elements for achieving this objective for larger companies. 16) B Information regarding requirements, specifications, submission dates, and so on, is disseminated more quickly, to more potential candidates, and at a much lower cost via the Internet than it is through other media. 17) C One of the difficulties traditional marketers have experienced is that of creating a brand image on the Internet. While some of these companies have been successful, others have not fared as well and have come to realize that branding and image-creating strategies must be specifically adapted to this medium. 18) D Version 1

Many marketers have found the Internet to be an effective medium for stimulating trial of their products or services. Often websites offer electronic coupons in an attempt to stimulate trial of their products. 19) C Many companies maintain their existing “brick-and-mortar” stores while also selling through the Internet. 20) A Unlike other media, which are essentially unidirectional and responsible for the content provided and products and services offered for sale, the Internet is interactive, allowing for a two-way flow. 21) A When major corporations first began to conduct business on the Internet, they put up websites primarily for information purposes and a one-way flow of information resulted. 22) C The Internet is a direct-response medium, allowing a user to both purchase and sell products through e-commerce site like Amazon and eBay. 23) C This scenario is an example of using a website to disseminate information. Information regarding requirements, specifications, submission dates, and so forth is disseminated more quickly, to more potential candidates, and at a much lower cost via the Net than it is through other media. 24) D

Version 1

A number of reasons can be cited as to why the growth of the Internet has been so rapid. The ability to conduct e-commerce through one’s personal computer is very attractive as it now seems there is almost nothing that one can’t find or buy on the web. 25) D Interestingly, one of the difficulties traditional marketers have experienced is that of creating a brand image on the Internet. 26) E Often websites offer electronic coupons in an attempt to stimulate trial of their products. Others offer samples, promotions, and sweepstakes designed to encourage trial. 27) E Many marketers believe that the Internet is an effective medium for achieving communications objectives such as consideration and/or evaluation. Blogs and discussion boards are considered particularly useful for providing information useful in evaluating products and brands. 28) A Many marketers believe that the Internet is an effective medium for achieving communications objectives such as consideration and/or evaluation. Blogs and discussion boards are considered particularly useful for providing information useful in evaluating products and brands. 29) C

Version 1

In this scenario, DigiCell Inc. aims to disseminate information. One of the primary objectives for using the Web is to provide in-depth information about a company’s products and services. Information regarding requirements, specifications, submission dates, and so on is disseminated more quickly, to more potential candidates, and at a much lower cost via the Internet than it is through other media. 30) E Interestingly, one of the difficulties traditional marketers have experienced is that of creating a brand image on the Internet. While some companies have been successful, others have not fared as well and have come to realize that branding and image-creating strategies must be specifically adapted to this medium. 31) D This scenario is an example of stimulating trial through the Internet. Often websites offer electronic coupons in an attempt to stimulate trial of their products. Others offer samples, promotions, and sweepstakes designed to encourage trial. 32) D The Internet offers the opportunity to sell directly to customers in both the consumer market and the business-to-business market. This direct selling of goods and services has been labeled e-commerce. 33) C The Internet offers the opportunity to sell directly to customers in both the consumer market and the business-to-business market. The direct selling of goods and services has been labeled e-commerce. 34) A

Version 1

The site provides news, live streams, videos, and more from the “World of Red Bull.” The objectives of this site and many others like it are simple: Create interest that will bring visitors back to learn more about the products—and, of course, to sell stuff. 35) E Web 2.0 has led to dramatic changes in the World Wide Web, primarily as a result of decentralization of communications and interactivity, with information provided by users as contributors of content such as usergenerated ads content and so on. 36) B When you access the Internet, you no doubt have seen a window or a creature of some sort appear on your screen in an attempt to get your attention. These advertisements are known as pop-ups, and they often appear when you access certain sites. 37) B Pop-ups are usually larger than banner ads but smaller than a full screen. 38) C Interstitials are ads that appear on a user’s screen while the user is waiting for a site’s content to download. 39) A Advertisers who target their ads based on the content of a web page are using contextual advertising. 40) C The equivalent of traditional television commercials, online commercials are appearing more often on the Internet. These ads, called pre-rolls, are becoming more commonly employed by online advertisers, with some requiring that you watch the ad prior to receiving the content. Version 1

41) D Some marketers are excited about the potential of blogs to reach large audiences at a small cost. Others are a bit more skeptical, noting that there are a number of problems with the use of blogs, including the potential for deception and limited reach. These critics cite the use of mommy bloggers and teen bloggers who may support brands and promote them for compensation to unsuspecting audiences. 42) C Web 1.0 is the terminology used to refer to the early evolution of the World Wide Web in which users could view web pages and interface with them but could not contribute to the content of the web page. 43) B Web 1.0 consisted mainly of static sites resulting in a one-way flow of communication. 44) B Web 2.0 has led to dramatic changes in the World Wide Web, primarily as a result of decentralization of communications and interactivity, with information provided by users as contributors of content such as usergenerated ads content, etc. 45) C Web 2.0 has led to dramatic changes in the World Wide Web, primarily as a result of decentralization of communications and interactivity, with information provided by users as contributors of content, such as usergenerated ads, content, and so on. 46) C

Version 1

Like broadcast or print, the Internet is an advertising medium. Companies and organizations working to promote their products and services must consider this medium as they would television, magazines, outdoor, and so on. 47) E Banner ads can be static, animated, or in flash. 48) D Banner ads may take on a variety of forms as well as a number of names, such as leader boards, rectangles, side panels, skyscrapers, or verticals. 49) B This scenario is an example of a banner ad. Banner ads may take on a variety of forms as well as a number of names such as leader boards, rectangles, side panels, skyscrapers, or verticals. They can also be static, animated, or in flash. 50) C Regular sponsorships occur when a company pays to sponsor a section of a site, for example, a House Beautiful or Cosmopolitan magazine sponsorship on Design.com, or a corporate sponsorship of a page on Forbes.com. 51) C Regular sponsorships occur when a company pays to sponsor a section of a site, for example, a House Beautiful or Cosmopolitan magazine sponsorship on Design.com, or a corporate sponsorship of a page on Forbes.com. 52) C

Version 1

This scenario is an example of regular sponsorship. A common form of advertising is sponsorships. Regular sponsorships occur when a company pays to sponsor a section of a site, for example, a House Beautiful or Cosmopolitan magazine sponsorship on Design.com, or a corporate sponsorship of a page on Forbes.com. 53) C A common form of advertising is sponsorships. Regular sponsorships occur when a company pays to sponsor a section of a site, for example, a House Beautiful or Cosmopolitan magazine sponsorship on Design.com, or a corporate sponsorship of a page on Forbes.com. 54) C This scenario is an example of regular sponsorship. A common form of advertising is sponsorships. Regular sponsorships occur when a company pays to sponsor a section of a site, for example, a House Beautiful or Cosmopolitan magazine sponsorship on Design.com, or a corporate sponsorship of a page on Forbes.com. 55) E This scenario is an example of content sponsorship. Content sponsorship is one in which a sponsor not only provides dollars in return for name association but participates in providing the content itself. In some cases, a site is responsible for providing content and having it approved by a sponsor; in other instances, a sponsor may contribute all or part of the content. 56) E

Version 1

This scenario is an example of content sponsorship. Content sponsorship is one in which a sponsor not only provides dollars in return for name association but participates in providing the content itself. In some cases, a site is responsible for providing content and having it approved by a sponsor; in other instances, a sponsor may contribute all or part of the content. 57) A When you access the Internet, you no doubt have seen a window or a creature of some sort appear on your screen in an attempt to get your attention. These advertisements are known as pop-ups, and they often appear when you access certain sites. 58) D Pop-unders are ads that appear underneath a web page and become visible only when a user leaves the site. 59) B Ritzy’s ad is an example of a pop-up. When you access the Internet, you no doubt have seen a window or a creature of some sort appear on your screen in an attempt to get your attention. These advertisements are known as pop-ups, and they often appear when you access certain sites. 60) E This ad is an example of a pop-under. Pop-unders are ads that appear underneath a webpage and become visible only when a user leaves the site. 61) E The Emblazon ad is an example of a pop-under. Pop-unders are ads that appear underneath a web page and become visible only when a user leaves the site.

Version 1

62) C Interstitials are ads that appear on a user’s screen while he or she is waiting for a site’s content to load. 63) A In general, the higher a site appears on a search page, the more visitors it will receive. Often searchers will not go past the first page of results. 64) E Organic search results are those that appear because of their relevance to the search terms, not advertisements. 65) C Advertisers will also attempt to reach consumers through nonorganic or paid search results such as pay-per-click advertising by placing their ads on web pages that display results from search engine queries. 66) A Search engine optimization (SEO) is the process of improving the volume of traffic driven to one’s site by a search engine through unpaid (organic) results as opposed to paid inclusion. 67) A In an effort to more specifically target customers who may be interested in their offerings, advertisers employ search engine optimization (SEO). 68) D An Internet advertising strategy that has seen rapid growth is behavioral targeting. Behavioral targeting is based on advertisers’ targeting consumers by tracking their web surfing behaviors, such as which websites they have visited and/or searches they have made. 69) A

Version 1

Behavioral targeting is based on advertisers’ targeting consumers by tracking their web surfing behaviors, such as which websites they have visited and/or searches they have made. By compiling clickstream data and Internet protocol (IP) information, advertisers can identify segments of potential buyers and direct ads specifically to them. 70) A This scenario is an example of behavioral targeting. Behavioral targeting is based on advertisers’ targeting consumers by tracking their website surfing behaviors, such as which websites they have visited and/or searches they have made. 71) A Recently, advertisers have increased their use of retargeting. Once a user visits a website and leaves without purchasing a product, a specifically targeted ad will display on participating subsequent websites the user visits. 72) E Advertisers who target their ads based on the content of a web page are using contextual advertising. 73) B Whereas behavioral advertising tracks surfing behaviors, contextual ads are determined by the content of a webpage. For example, an advertiser may place an airline ad on a travel site, or a golf club ad on a golf site, or even in or near a story about golf on another site. 74) B

Version 1

Defined as “any paid advertising that takes the specific form and appearance of editorial content from the publisher,” advertisers love native ads because they allow advertisers to cut through the clutter of display ads, and have been found to be much more effective in receptivity and engagement. Concern has been expressed over the fact that the ads sometimes appear to be content and not advertising, misleading the consumer. 75) B The goal of native ads is to be less intrusive while catching the attention of a reader who is likely interested in the content matter he or she is reading. 76) E Rich media are “a broad range of interactive digital media that exhibit dynamic motion, taking advantage of enhanced sensory features such as video, audio and animation.” 77) D Some expand the definition of rich media to include all content that is created in flash. 78) D Short feature films created by an advertiser, such as those created by Jaguar and BMW, are examples of webisodes, in which companies create their own content to advertise their products. 79) B

Version 1

The most revolutionary change in the Internet came when it moved from what is referred to as Web 1.0 to Web 2.0. Web 2.0 has led to dramatic changes in the World Wide Web, primarily as a result of decen-tralization of communications and interactivity, with information provided by users as contributors of content such as user-generated ads content and so on. 80) B Social media have been defined in numerous ways. Using the simplest definition from Merriam-Webster dictionary, social media is defined as: “Forms of electronic communication (such as Web sites) through which people create online communities to share information, ideas, personal messages, etc.” 81) A Social networking sites are platforms for networks or social relations among people who share interests, activities, backgrounds, or real-life connections. 82) B There are numerous ways for consumers to access social media sites, including via desktops, laptops, tablets, smartphones, and connected devices. 83) B A powerful social medium, YouTube is a content aggregator, hosting content for information and entertainment. 84) C Podcasting is a medium that uses the Internet to distribute audio or video files for downloading into phones, iPads, and other portable devices. 85) E Version 1

Podcasting is a medium that uses the Internet to distribute audio or video files for downloading into iPhones, iPads, and other portable devices. As the market for iPads grows, the attractiveness of this medium does as well. 86) D A blog is a web-based publication consisting primarily of periodic articles, normally presented in reverse chronological order. 87) E QR codes may be beginning to grow in popularity, but they are being threatened by a new technology, near-field communication (NFC). NFC enables marketers to deliver content through an embedded chip that allows wireless communications just by touching the material or being in close proximity to the NFC tag. 88) E This scenario is an example of sales promotions on the Internet. Companies have found the Internet to be a very effective medium for disseminating sales promotions. Numerous companies now print online coupons. Other examples include the use of trivia games, contests, sweepstakes, instant win promotions, and so on. 89) B The high-cost and poor-reach disadvantages of personal selling are allowing companies to reduce new hires and even cut back on their existing sales forces. 90) D

Version 1

The Web can be used to stimulate trial. For many companies, personal salespersons can reach only a fraction of the potential customer base. Through trial demonstrations or samples offered online, customers can determine if an offering satisfies their needs and, if so, request a personal sales call. In such cases both parties benefit from time and cost savings. 91) D This scenario is an example of public relations on the Internet. Many sites devote a portion of their content to public relations activities, including the provision of information about a company, its philanthropic activities, annual reports, and more. 92) D This scenario is an example of public relations on the Internet. Many sites devote a portion of their content to public relations activities, including the provision of information about a company, its philanthropic activities, annual reports, and more. 93) C The above scenario is an example of direct marketing on the Internet. Many direct-marketing tools like direct mail, infomercials, and the like have been adapted to the Internet. At the same time, e-commerce— selling directly to the consumer via the Internet—has become an industry all its own. 94) B As dramatic an impact that the Internet had on companies’ IMC programs, it almost pales in comparison to the changes brought about by mobile. Spawned by the rapid adoption of smartphones and tablets, mobile is now receiving strong attention from marketers, and ad revenues continue to climb, primarily through applications (apps). Version 1

95) E A number of companies use traditional measures of recall and retention to test their Internet ads. 96) E Cost per conversion is an Internet-specific measure that is used by companies. 97) A The American Association of Advertising Agencies and the Association of National Advertisers use a system called Advertising Digital Identification (Ad-Id). Ad-Id assigns advertising across all media a specific media code to facilitate cross-media buys. In 2008 Ad-Id became the official media coding standard. 98) D There are a number of companies that provide social media management tools for small, medium and large companies. They offer services including media management, content development, publishing, monitoring the environment and more. 99) C Google and Facebook both offer analytical tools that allow you to monitor your performance. Facebook Analytics “allows users to understand and optimize your complete customer journey across mobile, web, bots, offline, and more. ..”, while Google Analytics “ is a web analytics service offered by Google that tracks and reports website traffic, currently as a platform inside the Google Marketing Platform brand.” 100) A

Version 1

A major advantage of the Internet digital and social media is the ability to target very specific groups of individuals with a minimum of waste coverage. 101) D As a result of precise targeting, messages can be designed to appeal to the specific needs and wants of the target audience, much of which comes from behavior tracking. 102) A One of the greatest disadvantages of the Internet is the lack of reliability of the research numbers generated. In a study of 410 marketing executives published by McKinsey, the primary reason cited for not investing online was the lack of sufficient metrics. 103) D Clutter is a disadvantage associated with the Internet. 104) A As the number of ads proliferates, the likelihood of one’s ad being noticed drops accordingly. The result is that some ads may not get noticed, and some consumers may become irritated by the clutter. 105) B Bloggers, and marketing influencers who endorse brands without revealing that they are being compensated to do so, and native ads can also be misleading. The problem with native ads may be particularly true when on smartphones where proper labeling the ads as sponsored may be difficult to see. 106) D

Version 1

The Center for Media Education has referred to the web as “a web of deceit” in regard to advertisers’ attempts to target children with subtle advertising messages. The center, among others, has asked the government to regulate the Internet. In addition, data collection without consumers’ knowledge and permission, hacking, and credit card theft are among the problems confronting Internet users.

Version 1

CHAPTER 16 TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) Sales promotion activities cannot be targeted to different parties in the marketing channel. ⊚ ⊚

true false

Sales promotions are typically not considered a part of the IMC planning process. ⊚ ⊚

true false

3) A major reason for the increase in spending on sales promotion is that the promotion industry has matured over the past several decades. ⊚ ⊚

true false

4) An objective for consumer-oriented promotions is to enhance or support the integrated marketing communications effort for a brand or company. ⊚ ⊚

true false

Sampling is generally considered the least effective way to generate trial. ⊚ ⊚

true false

6) The oldest, most widely used, and most effective sales promotion tool is the cents-off coupon. ⊚ ⊚

Version 1

true false

7) In order to integrate advertising and sales promotion programs successfully, the theme of consumer promotion need not be tied in with the positioning platform for the company and/or its brand. ⊚ ⊚

true false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 8) A sales promotion can target which of the following groups? A) consumers only B) consumers or retailers only C) consumers, retailers, or distributors only D) consumers, retailers, distributors, or sponsors

9) A major reason for the increase in sales promotion is that customers are purchasing more on the basis of price, value, and convenience. In other words, consumers are less A) sophisticated. B) brand loyal. C) cost conscious. D) time sensitive.

10) to

One of the most important uses of sales promotion techniques is to encourage consumers

A) purchase a new brand. B) learn more about product features. C) purchase a product at a specific time. D) compare competitive brands.

Version 1

11)

A strategy for increasing sales of an established brand is to use promotions that attract A) media attention. B) nonusers of the product category. C) existing customers. D) advertising awards.

12) Promotion programs can be developed to coincide with ________ for certain products and services. A) delivery B) peak sales periods C) the decline life cycle stage D) the retirement life cycle stage

13)

Sampling is most effective for products that A) are large but inexpensive. B) are expensive but small. C) have a quick sales cycle. D) are indivisible.

14)

Which of the following is an example of event sampling? A) attaching a sample to an existing product B) mailing a sample to potential consumers C) leaving samples for customers at a store D) giving samples away at a conference

15)

A coupon booklet that is inserted into a newspaper or mailed is an

Version 1

A) FSI. B) FDI. C) FCI. D) FAI.

16)

Which of the following is an objective for trade-oriented promotions? A) Reduce retail inventories. B) Encourage retailers to eliminate competitive brands. C) Build distribution for growing products. D) Obtain distribution for new products.

17) Advertising is used primarily as a reminder to keep consumers aware of the brand when the brand moves to which stage?

A) growth B) maturity C) decline D) introduction

18)

What kind of support for a sales promotion program is typically considered optional? A) advertising B) public relations C) media D) direct selling

19)

When several competitors use promotions extensively, ________ can result.

Version 1

A) a sales promotion trap B) clutter C) overuse D) increased sales

20)

A brand that is constantly promoted may A) gain name recognition. B) increase perceived value. C) lose perceived value. D) lose name recognition.

21) Which of the following elements of the integrated marketing communications program is designed to provide an extra incentive to consumers to purchase a brand? A) magazine advertising B) direct mail C) public relations D) publicity E) sales promotion

22)

Coupons, bonus packs, premiums, and samples are promotional offers that target A) end users. B) retailers. C) wholesalers. D) salespeople. E) employees.

23)

Which of the following is an example of a trade-oriented sales promotion activity?

Version 1

A) samples B) coupons C) refunds/rebates D) dealer contests E) bonus packs

24)

How has the view of sales promotions changed during the past decades?

A) Sales promotions are now considered an essential part of an organization’s branding strategies. B) Sales promotion tactics are now developed before the branding strategy is determined. C) Sales promotions are now believed to be an ineffective tool for creating brand image. D) Creatives have become more sophisticated, and this sophistication has led to a decline in their dependence on sales promotion. E) Sales promotion techniques are increasingly being considered as “obsolete.”

25)

Which of the following is a reason for the increase in sales promotion? A) growing power of retailers B) increasing brand loyalty of customers C) lack of short-term focus among marketers D) decreased promotional sensitivity E) decreased competition

26) Which of the following developments has resulted in a transfer of power from manufacturers to retailers?

Version 1

A) The advent of optical scanners and computers has given manufacturers access to sales information. B) An increase in brand loyalty among consumers has led to an increase in sales promotion activities. C) Consolidation of the retail industry has resulted in larger chains with greater buying power and clout. D) A significant decrease in promotional sensitivity and time sensitivity among consumers has occurred since the early 2000s. E) Increasingly, manufacturers are introducing more private-label brands into the market.

27)

One reason for consumers’ increased sensitivity to sales promotions is A) that they have become less time sensitive. B) the increase in perceived brand loyalty. C) the increased power of manufacturers. D) that they save money. E) that consumers’ choices have declined.

28) are

In response to the decline in consumers’ attention to mass-media advertising, marketers

A) using more media monitoring services to make event sponsorship more successful. B) placing more traditional mass-media-based advertising. C) using more sales promotions. D) employing clipping services to determine the effectiveness of their press releases. E) spending more money on television ads.

29) Some businesspeople think that the packaged-goods brand management system has contributed to marketers’ increased dependence on

Version 1

A) telemarketing. B) direct mail. C) publicity. D) synergistic buying. E) sales promotion.

30) Which of the following statements is true of the increase in sales promotion by brand managers? A) Brand managers tend to ignore sales promotion due to its primacy effect. B) Many brand managers believe that sales promotions cannot be used to defend against competition. C) Typically, sales promotions are not used by brand managers while introducing new products. D) Sales promotions are typically used by brand managers to meet quarterly goals. E) Sales promotions are generally a neglected part of the IMC process by most brand managers.

31) Marketers who are being held accountable for strategy implementation often need concrete methods to show the effectiveness of their decision making. Which of the following would best help a marketer produce a quick and easily measurable jump in sales? A) mass-media advertising B) a strategy that enhances the advertising carryover effect C) sales promotions such as coupons and price discounts D) bait-and-switch marketing techniques E) out-of-home advertising media

32) ________ marketing is a type of marketing in which a manufacturer collaborates with an individual retailer to create a customized promotion that accomplishes mutual objectives.

Version 1

A) Evangelism B) Close-range C) Account-specific D) Call-to-action E) Affinity

33)

Account-specific marketing is also known as A) a planogram program. B) comarketing. C) dual sponsorship. D) piggyback marketing. E) guerilla marketing.

34) Kiddo Inc., a toy manufacturer, teamed with Game On, a retailer, to create direct-mail booklets offering discounts on Kiddo toys only at Game On stores. This is an example of A) guerilla marketing. B) brand stretching. C) evangelism marketing. D) account-specific marketing. E) brand extension.

35) Sales promotion activities that communicate distinctive brand attribute and contribute to the development and reinforcement of brand identity are what types of promotion? A) consumer loyalty B) consumer franchise C) brand extension D) brand logo E) trademark

Version 1

36) Which of the following statements describes how brand equity is affected by the increased use of sales promotion? A) Critics argue that sales promotions generally result in higher brand equity. B) Sales promotions do not contribute to the erosion of brand equity. C) Marketing experts argue that higher spending on sales promotion is at the expense of media advertising, which leads to a decline in brand equity. D) There is strong agreement among marketing professionals that any type of sales promotion activity detracts from brand equity. E) Marketing experts generally agree that advertising plays an important role in building and maintaining a brand’s image and position, which are core components of its equity.

37) Sales promotion activities that communicate distinctive brand attributes and contribute to the development and reinforcement of brand identity are known as A) nonfranchise-building promotions. B) consumer franchise-building promotions. C) high-involvement sales promotions. D) sales promotion traps. E) event marketing.

38)

Which of the following statements is true of consumer franchise-building promotions? A) They are designed to increase long-term brand preference. B) They are designed to help consumers avoid full-price purchases in the long term. C) They do not always depend on a promotional offer. D) They are a subset of public relations. E) They are synonymous with publicity.

39) Which of the following statements is true of consumer franchise-building (CFB) promotions?

Version 1

A) CFB promotions are designed to promote short-term brand preference. B) CFB promotions cannot make consumers loyal to a brand that is of little value. C) CFB promotions can make consumers loyal to a brand that does not provide a specific benefit. D) CFB promotions typically do not contribute to the development of a favorable brand image. E) CFB promotions are not suitable for brand extension strategies.

40)

Which of the following is an example of a nonfranchise-building promotion? A) consumer sampling B) contest targeted to ultimate consumers C) price-off deal D) event sponsorship E) frequency program

41) Promotional activities designed to accelerate the purchase process and generate an immediate increase in sales without communicating information about a brand’s unique features or benefits are known as A) consumer franchise-building promotion. B) nonfranchise-building promotion. C) vertical integration marketing. D) image promotions. E) evangelism marketing.

42) The sales promotion tool that critics contend is most guilty of detracting from brand equity and being detrimental to a brand franchise is

Version 1

A) sweepstakes. B) contests. C) frequent patronage programs. D) trade promotions. E) event sponsorships.

43) When General Mills included a Mini Minion character toy in its Lucky Charms cereal to provide an extra incentive for customers to buy the cereal, it was using a A) sweepstakes. B) contest. C) frequent patronage program. D) trade promotion. E) sales promotion.

44) When MillerCoors used a Taste Challenge promotion to help regain market share for Miller Light against Bud Light and other brands of light beer, it was A) using a sales promotion to attract users of a competing brand. B) identifying new uses for the brand. C) obtaining repurchase. D) defending current customers. E) targeting a specific market segment.

45) ________ involves a variety of procedures whereby consumers are given some quantity of a product for no charge to induce trial. A) A rebate B) A refund C) Sampling D) Couponing E) A sweepstakes

Version 1

46) ________ is generally considered the most effective method for generating trial of a new product. A) Couponing B) Sampling C) Rebating D) Sweepstakes promotion E) A contest

47)

Samples would be an appropriate promotional strategy A) to support an everyday low price (EDLP) strategy. B) to facilitate a push promotional strategy. C) to introduce a new product into the marketplace. D) in the decline stage of a product’s life cycle. E) to build long-term relationships with customers.

48) Which of the following correctly states an advantage of the sampling method of sales promotion? A) It is the least expensive among all methods of sales promotion. B) The costs of the sampling program can easily be recovered with just a few purchases. C) Marketers believe that for all products the results of sampling can be seen immediately. D) It is extremely useful for products and services that do not have subtle features. E) Consumers gain a greater appreciation for a product’s benefits.

49) With reference to the various sampling methods, ________ is used when it is important to control where the sample is delivered and when the products are of a perishable nature.

Version 1

A) mail sampling B) couponing C) door-to-door sampling D) on-package sampling E) mobile coupon

50) ________ is a common sampling technique for small, lightweight products that are nonperishable. A) Door-to-door sampling B) Sampling through the mail C) In-store sampling D) On-package sampling E) Location sampling

51) In ________ sampling, a marketer hires temporary demonstrators who set up a table or booth within an outlet, prepare small samples of a product, and pass them out to shoppers. A) door-to-door B) event C) on-package D) in-store E) direct-mail

52) In a(n) ________ sampling, a multiproduct firm attaches the sample to an existing item of the firm. A) checkout B) spiff C) in-store D) on-package E) bounce-back

Version 1

53)

The oldest, most widely used, and most effective sales promotion tool is A) cents-off coupons. B) sampling. C) rebates. D) event sponsorship. E) bonus packs.

54)

An advantage of coupons is that they A) elicit faster consumer responses than samples, unlike sweepstakes and rebates. B) generally elicit immediate response from consumers. C) are very effective even without brand name awareness. D) allow a marketer to offer a price reduction only to consumers who are price sensitive. E) build brand loyalty.

55)

Which of the following correctly states a disadvantage of couponing?

A) It can be difficult to estimate how many consumers will use a coupon and when. B) It discourages initial product trial. C) It assists in reducing the price of a product only by relying on retailers for cooperation. D) It assists only in attracting new customers but does not help in retaining existing customers. E) It may encourage regular users to trade down to inexpensive brands.

56)

Which of the following statements is true of couponing?

Version 1

A) Coupons always assist in providing an immediate response. B) Coupons are often used by consumers who are already loyal to the brand. C) Coupons are useless when it comes to promoting established products. D) Coupons are more effective than sampling for inducing initial product trial in a short period. E) Coupons have an extremely high redemption rate.

57)

The most popular method for distributing coupons is through A) newspaper freestanding inserts. B) direct mail. C) product packaging. D) magazines. E) the Yellow Pages.

58) What advantage does distribution of coupons through direct mail have over other forms of coupon delivery? A) less clutter B) lower cost C) lower redemption rate D) lower economies of scale E) cooperative advertising opportunities

59)

Consumers redeem less than what percentage of all coupons distributed? A) 40% B) 20% C) 10% D) 5% E) 1%

Version 1

60)

Nearly ________ percent of consumers use coupons on a regular basis. A) 90 B) 60 C) 50 D) 20 E) 10

61)

To increase early redemption of coupons, marketers A) reduce the duration period. B) offer a higher discount in the first week. C) announce the coupon schedule. D) reduce the number of coupons printed.

62) Which term means combining shopping skills with coupons to save as much money as possible? A) extreme shopping B) extreme saving C) extreme couponing D) extreme frugality

63)

Marketers often distribute coupons as a way to compete against A) similar brands. B) poor economic conditions. C) lower-priced brands D) sales quotas.

Version 1

64) A package of Confident razor blades contains a sample of Confident Foamy shaving cream. This is an example of a(n) ________ sampling method. A) on-package B) bounce-back C) checkout D) instant E) rebate

65)

Marketers are using online, or mobile, coupons as a means of A) distributing coupons more broadly. B) tracking redemption with in-store purchases. C) reaching more customers. D) increasing the coupons’ creative element.

66) Vinnie’s Cornmeal has had significant issues with their coupons being redeemed at local stores when the consumer makes no purchase. This is an example of A) poor tracking. B) misredemption. C) misappropriation. D) graft.

67)

RedPlum and SmartSource are examples of A) solo books. B) freestanding advertisements. C) freestanding inserts. D) freestanding coupons.

Version 1

68) FSIs are the most popular way of delivering coupons because, among other reasons, they can offer A) geographic positioning. B) category exclusivity. C) color exclusivity. D) creative exclusivity.

69)

The increased distribution of coupons through FSIs has led to A) overuse. B) high redemption rates. C) low redemption rates. D) clutter.

70) A(n) ________ is an offer of an item of merchandise or services, either free or at a reduced price, that is used to provide an extra incentive to purchase. A) mnemonic B) heuristic C) premium D) prommercial E) exhibition

71) NapTime Inc., a manufacturer of mattresses, gave away a sheep plush toy to any customer who purchased a mattress from a NapTime dealer. The toy was only available for a limited period. The plush toy is an example of a

Version 1

A) coupon. B) sample. C) free premium. D) rebate. E) self-liquidating premium.

72) Yummy Oats cereal included tubes of ToothFairy Junior toothpaste inside each of its boxes. This is an example of a A) free premium. B) self-liquidating premium. C) rebate. D) bonus pack. E) nonsubsidized premium.

73) Consumers must pay the manufacturer’s cost plus handling and mailing costs for a ________ premium. A) cost-covered B) self-liquidating C) subsidized D) cost-plus E) base-cost

74)

Which of the following statements is true of self-liquidating premiums? A) They are used for lightweight, nonperishable products. B) They require customers to pay for the mailing costs. C) They are typically offered at higher-than-retail prices. D) They are also known as cost-plus premiums. E) They are usually delivered directly to the customers’ doorsteps.

Version 1

75)

The in-store sampling approach can be very effective for food products because A) customers get to taste the sample. B) customers get the sample delivered to their homes. C) it is an inexpensive sampling method. D) it does not require a great deal of planning. E) it does not require the cooperation of retailers.

76)

Which of the following correctly states a limitation of on-package sampling? A) It will not reach nonusers of the carrier brand. B) It cannot be used by multiproduct firms. C) It is highly expensive. D) It can be used only for food products. E) It requires extensive product guarantees.

77)

Which fast-growing sampling method features media tie-ins and is the most popular? A) event sampling B) bounce-back sampling C) on-package sampling D) in-store sampling E) door-to-door sampling

78)

Which of the following correctly states a limitation of in-store sampling? A) It can be used only for food products. B) It requires the cooperation of retailers. C) It is a highly ineffective method. D) It must always be used in combination with another sampling method. E) It is typically considered effective only for high-end luxury products.

Version 1

79)

Which of the following correctly states a limitation of sampling through the mail? A) It can be used only by multiproduct firms. B) It must always be used in combination with another sampling method. C) It cannot be used for nonperishable products. D) It can be used only for small products.

80) This is a sampling method in which the sample is delivered directly to the residence and is used when it is important to control where the samples are delivered. A) door-to-door B) direct mail C) in-store D) on-package

81)

Which of the following correctly states an advantage of sampling through the mail? A) It offers a greater markup for the retailer than other sampling techniques. B) It can take place in stores as well as at a variety of other venues such as concerts. C) The marketer has control over where and when the product will be distributed. D) The distribution system is unaffected by postal restrictions and increasing postal

rates. E) This sampling method is always used in combination with another sampling method.

82) ________ is a sampling method in which the product is delivered directly to the prospect’s residence.

Version 1

A) In-house sampling B) In-store sampling C) Event sampling D) Door-to-door sampling E) Bounce-back sampling

83) A ________ is a promotion where consumers compete for prizes and/or money on the basis of skills or ability. A) sweepstakes B) contest C) refund D) rebate E) sample

84)

A ________ is a promotion where winners are determined purely by chance. A) contest B) sweepstakes C) rebate D) premium E) loss leader

85)

Sweepstakes and contests A) are used to move consumers to the conviction stage of the hierarchy of effects model. B) can be used to generate excitement and involvement with a popular and timely event. C) contribute minimally to consumer franchise building. D) do not distract from consumer franchise-building activities. E) are synonymous to each other.

Version 1

86) Which of the following sales promotion techniques is impacted negatively by the presence of professionals or hobbyists who take advantage of the promotion without making a purchase? A) samples and coupons B) premiums C) contests and sweepstakes D) event sponsorships E) bonus packs

87)

Which of the following statements is true of rebates?

A) Rebates are synonymous with refunds, and are used only for consumer durables like automobiles and appliances. B) Most retailers want to be involved with rebate programs. C) Nonusers of rebates perceive the rebate redemption process as too complicated. D) Rebates are increasing in popularity among both manufacturers and retailers. E) Rebates are ineffective in encouraging repeat purchases.

88) Got Game, a sports store, ran a promotion campaign in which it offered a box of 15 Pyramid golf balls at the price of 12 balls. This is an example of a A) price-off deal. B) premium. C) bonus pack. D) rebate. E) trade allowance.

89)

Bonus packs

Version 1

A) offer consumers an extra amount of a product or service but at a higher than normal price. B) help marketers provide extra value to consumers without having them do anything more than purchase the product. C) are not an effective way of loading consumers with a product and reducing their susceptibility to a competitor’s promotional offer. D) are always welcome by retailers since bonus packs never require extra shelf space and increase retailers’ profit margins. E) result in a higher cost per unit for the consumer.

90) When reductions from the regular price of a product are offered at the point-of-purchase through specially marked packages, a marketer is using a A) bonus price pack. B) rebate. C) refund offer. D) bounce-back price coupon. E) price-off deal.

91) Spring Supermarket gives its customers VIC (very important customer) cards, which give customers additional discounts on certain products and notifications of special, customer-only sales. In addition, customers can accrue points each time they present their cards while making a purchase. These points can be used to purchase cookware, dishes, and other similar hard goods. Spring Supermarket is using a A) bonus program. B) loyalty program. C) customer rewards contest. D) self-liquidating promotion. E) subsidized program.

Version 1

92) Every time Beth buys a book at The Venus Bookstore, she presents her Venus card, and the sales associate enters her purchase in a database. When she has purchased five books at regular price, she is sent a coupon for a free book to be picked out on her next visit to the store. This is an example of a A) sweepstakes program. B) loyalty program. C) customer rewards contest. D) premium promotion. E) rebate program.

93)

Why have loyalty programs become so popular with marketers?

A) Loyalty programs support the goal of customer retention. B) Loyalty programs are especially effective when used for new product introductions. C) Loyalty programs are a type of sweepstakes that generate a great deal of consumer interest. D) Loyalty programs allow marketers to set cookies so they can track consumers’ activities. E) Loyalty programs are a promotional form of brand extension strategy.

94)

Which of the following types of sales promotions are also called continuity programs? A) point-of-purchase displays B) loyalty programs C) price-off deals D) dealer incentives E) event sponsorship programs

95) Planet Beverage’s heavy financial involvement with freestyle skiing competitions and support of beach volleyball tournaments are examples of

Version 1

A) premiums. B) field marketing. C) exhibitions. D) event marketing. E) contests.

96)

Which of the following statements about event sponsorships and event marketing is true? A) The amount of money spent on event sponsorships has been declining in recent

years. B) Event sponsorships are not typically integrated into a company’s marketing communications strategy. C) Event marketing and event sponsorship are synonymous. D) Event sponsorship objectives are often part of an organization’s public relations activities. E) Event marketing is ineffective in connecting with consumers in an environment where they are comfortable with receiving a promotional message.

97) Programs involving cash payments directly to the sales force to reward them for selling the manufacturer’s products involve the use of A) slotting fees. B) fixed trade spending. C) push money. D) promotional pricing. E) a bonus pack.

98)

Which of the following promotions is targeted toward the trade rather than consumers?

Version 1

A) spiffs B) coupons C) premiums and sweepstakes D) bonus packs E) bounce-back coupons

99) An appliance manufacturer offers a $50 payment to salespeople who work at J&J Appliance Inc., a retailer, for each sale of the company’s new line of refrigerators. This payment by J&J Appliance is known as A) a slotting fee. B) a mnemonic. C) a spiff. D) pull money. E) a bonus pack.

100) Another term used for push money that is given to retailers’ or wholesalers’ sales staff to encourage them in promoting and selling a company’s product is A) a fixed trade spending. B) a rebate. C) a spiff. D) an off-invoice allowance. E) a slotting fee.

101) A discount or deal offered to a retailer or wholesaler to encourage them to stock, promote, or display a manufacturer’s product is known as

Version 1

A) cooperative advertising. B) merchandising support. C) a trade allowance. D) a spiff. E) push money.

102) Dewy, a fruit juice manufacturer, offers its retail accounts a discount of $3.00 per case on all purchases of cranberry juice during the month of May. This discount will be deducted straight from the bill. This offer is an example of A) push money. B) a slotting allowance. C) an off-invoice allowance. D) a display allowance. E) a fixed trade spending.

103) Payments offered by manufacturers to retailers for merchandising products or running special in-store programs are called A) off-invoice allowances. B) push monies. C) advertising subsidies. D) promotional allowances. E) slotting allowances.

104) Money that must be paid to a retailer so it will take on a company’s new product is known as

Version 1

A) a slotting allowance. B) a failure fee. C) a spiff. D) push moneys. E) a trade discount.

105)

Which of the following statements is true of slotting allowances?

A) Retailers justify slotting allowances by pointing to the costs associated with taking on a new product. B) Retailers are not justified in charging slotting allowances since most new products are successful. C) Large companies with popular brands are the most likely to have to pay slotting allowances. D) Slotting allowances are illegal and banned by the federal government. E) The costs slotting allowances add to new product introductions are minimal.

106) Some retailers have demanded payment for new products that do not reach a minimum sales target. These payments are called A) failure fees. B) slotting fees. C) push monies. D) off-invoice allowances. E) street monies.

107)

Slotting allowances are also called

Version 1

A) off-invoice allowances. B) spiffs. C) push money. D) street money. E) rebates.

108) A ________ is a configuration of products that occupy a shelf section in a store, offered to retailers by manufacturers. A) slotting plan B) planogram C) promotional layout D) retail format E) gatefold

109) A manufacturer of skis and skiing accessories provides sales personnel in ski shops with instruction classes, detailed manuals, and other tools to help them better understand how to sell the company’s ski boots. This is an example of A) cooperative advertising. B) sales force automation. C) a sales training program. D) event marketing. E) a sales incentive program.

110) ________ is an exhibition or forum where manufacturers can display their products to current and prospective buyers.

Version 1

A) A planogram B) A trade layout C) Cooperative advertising D) A trade show E) Event marketing

111) ________ is advertising sponsored in common by a group of retailers or other organizations providing products or services to the market. A) Horizontal cooperative advertising B) Vertical cooperative advertising C) Integrated dyadic advertising D) Retail-syndication advertising E) Syndicated advertising

112) Several different manufacturers of personal computers (PCs) have joined to create and sponsor ads that promote both the computer and the microprocessor by sharing the cost of advertising. The PC manufacturers are using A) cooperative advertising. B) event sponsorships. C) vertical integrated marketing. D) comparative advertising. E) inbound marketing.

113)

Which of the following statements is true of horizontal cooperative advertising? A) It is sponsored by a group of retailers. B) It is used only in the maturity stage of a product’s life cycle. C) It is usually conducted by a company and its marketing subsidiaries. D) It is synonymous with comparative advertising. E) It is synonymous with vertical advertising.

Version 1

114) ________ is advertising supported by raw materials manufacturers to help establish end products that include a company’s materials. A) Vertical cooperative advertising B) Ingredient-sponsored cooperative advertising C) Horizontal cooperative advertising D) Guerrilla advertising E) Buzz marketing

115) VB Inc., a shoe manufacturer, sponsors a campaign that advertises the availability of its running shoes at Shoe Rack, a retail chain. This is an example of ________ advertising. A) horizontal cooperative B) vertical cooperative C) parody D) ingredient-producer cooperative E) comparative

116) Advertising implemented by retailers and paid for, at least in part, by a manufacturer is called A) joint sales promotions. B) horizontal cooperative advertising. C) vertical cooperative advertising. D) ingredient-sponsored cooperative advertising. E) reseller advertising.

117) With respect to the allocation of the promotional budget, when a brand moves to the maturity stage

Version 1

A) push monies are used to encourage retailers to stock more products. B) advertising is primarily a reminder to keep consumers aware of the brand. C) promotional dollars will be used only for distributing coupons to customers. D) all promotional support for the brand will be removed. E) promotional dollars will be used only for distributing samples.

118) Which of the following statements is true of promotional budget allocation when a brand enters the decline stage? A) Promotional dollars will be used only for distributing coupons to customers. B) Promotional dollars will be used only for distributing samples. C) Price-offs and bonus packs must be used intermittently to maintain consumer loyalty. D) Most if not all of the promotional support for the brand will be removed. E) Advertising is primarily a reminder to keep consumers aware of the brand.

119) Which of the following statements is true of promotional budget allocation when a brand enters the growth stage? A) Promotional dollars will be used only for bait-and-switch marketing. B) Promotional dollars will be used only for rebate advertising. C) Price-offs and bonus packs must be used intermittently to induce product trial. D) Promotional dollars must be used primarily for advertising to stress brand differences. E) Advertising is primarily a reminder to keep consumers aware of the brand.

120) Which of the following statements is true of promotional budget allocation when a brand enters the introductory stage?

Version 1

A) Promotional dollars will not be allocated for activities such as sampling and couponing. B) A large portion of the budget will be allocated to sales promotion techniques. C) Promotional dollars must be used to eliminate brand differences. D) Most if not all of the promotional support for the brand will be removed. E) Promotional dollars will be used only for word-of-mouth marketing.

121) According to attribution theory, a consumer who purchases a product on promotion may not repurchase it because the A) purchase behavior is attributed to an external incentive. B) relationships between promotions and attitudes are weak. C) primary reinforcement is the brand, and not the promotional incentive. D) consumers typically possess high brand loyalty. E) purchase is internally motivated and unaffected by an external stimulus.

122) When McDonald’s introduced its value menu in 2003 and competitors responded by putting popular items on their own value meal menus to keep up, it was an example of a(n) ________, or a spiral that results when several competitors use promotions extensively. A) attribution trap B) sales promotion trap C) primary reinforcement spiral D) secondary reinforcement spiral E) external trap

123) A study by Priya Raghubir and Kim Corfman on whether price promotions affect pretrial evaluations of a brand showed that

Version 1

A) purchase behavior is attributed to an internal incentive. B) relationships between promotions and attitudes are weak. C) primary reinforcement is the brand, and not the promotional incentive. D) consumers typically possess high brand loyalty. E) price promotions may inhibit trial of a brand in certain situations.

Version 1

Answer Key Test name: Chap 16_12e 1) FALSE An important point regarding sales promotion activities is that they can be targeted to different parties in the marketing channel. 2) FALSE While sales promotion has been part of the marketing process for a long time, its role and importance in a company’s integrated marketing communications program have increased dramatically over the past decade. 3) TRUE A major reason for the increase in spending on sales promotion is that the promotion industry has matured over the past several decades. 4) TRUE An objective for consumer-oriented promotions is to enhance or support the integrated marketing communications effort for a brand or company. While building and/or maintaining brand equity was traditionally viewed as something that was done through media advertising, it has also become an important goal for marketers as they develop their sales promotion programs. 5) FALSE Sampling involves a variety of procedures whereby consumers are given some quantity of a product for no charge to induce trial. Sampling is generally considered the most effective way to generate trial, although it is also the most expensive. 6) TRUE Version 1

The oldest, most widely used, and most effective sales promotion tool is the cents-off coupon. 7) FALSE In order to integrate the advertising and sales promotion programs successfully, the theme of consumer promotion should be tied in with the positioning platform for the company and/or their brand wherever possible. 8) C Sales promotion has been defined as “a direct inducement that offers an extra value or incentive for the product to the sales force, distributors, or the ultimate consumer with the primary objective of creating an immediate sale.” 9) B A major reason for the increase in sales promotion is that consumers have become less brand loyal and are purchasing more on the basis of price, value, and convenience. 10) A One of the most important uses of sales promotion techniques is to encourage consumers to try a new product or service. 11) B A strategy for increasing sales of an established brand is to use promotions that attract nonusers of the product category or users of a competing brand. 12) B Promotion programs also can be developed to coincide with peak sales periods for certain products and services. 13) C Version 1

Manufacturers of packaged-goods products such as food, health care items, cosmetics, and toiletries are heavy users of sampling since their products meet the three criteria for an effective sampling program: 1) The products are of relatively low unit value, so samples do not cost too much, 2) The products are divisible, which means they can be broken into small sample sizes, and 3) The purchase cycle is relatively short. 14) D Many marketers are using sampling programs that are part of integrated marketing programs that feature events, media tie-ins, and other activities that provide consumers with a total sense of a brand rather than just a few tastes of a food or beverage or a trial size of a packaged-goods product. Event sampling can take place in stores as well as at a variety of other venues such as concerts, sporting events, and other places. 15) A An FSI is a four-color, multipage printed advertising booklet that contains consumer packaged-goods coupon offers delivered with newspapers (usually in Sunday editions). FSIs can also be delivered in direct-mail packages along with local retailer ads. 16) D One objective of trade-oriented promotions is to encourage retailers to display and promote an established brand. Marketers recognize that many purchase decisions are made in the store, and promotional displays are an excellent way of generating sales. 17) B When a brand moves to the maturity stage, advertising is primarily a reminder to keep consumers aware of the brand. 18) C

Version 1

Media support for a sales promotion program is critical and should be coordinated with the media program for the ad campaign. 19) A A potential problem with consumer-oriented promotions is that a sales promotion trap or spiral can result when several competitors use promotions extensively. 20) C A brand that is constantly promoted may lose perceived value. Consumers often end up purchasing a brand because it is on sale, they get a premium, or they have a coupon, rather than basing their decision on a favorable attitude they have developed. 21) E Sales promotion involves some type of inducement that provides an extra incentive to buy. This incentive is usually the key element in a promotional program; it may be a coupon or price reduction, the opportunity to enter a contest or sweepstakes, a money-back refund or rebate, or an extra amount of a product. 22) A Activities involved in consumer-oriented sales promotion include sampling, couponing, premiums, contests and sweepstakes, refunds and rebates, bonus packs, price-offs, frequency programs, and event marketing. These promotions are directed at consumers, the end purchasers of goods and services, and are designed to induce them to purchase the marketer’s brand. 23) D

Version 1

Trade-oriented sales promotion includes dealer contests and incentives, trade allowances, point-of-purchase displays, sales training programs, trade shows, cooperative advertising, and other programs designed to motivate distributors and retailers to carry a product and make an extra effort to push it to their customers. 24) A In the past, sales promotion specialists would be brought in after key strategic branding decisions were made. However, many companies are now making promotional specialists part of their strategic brandbuilding team, a move that puts sales promotion on par with media advertising. 25) A Among the factors that have led to the increase in the importance of sales promotion are the growing power of retailers, declining brand loyalty, increased promotional sensitivity, brand proliferation, fragmentation of the consumer market, the short-term focus of many marketers, increased accountability, competition, clutter, and the growth of digital and social media. 26) C One factor that has increased the power of retailers is the consolidation of the retail industry, resulting in larger chains with greater buying power and clout. Consolidation has also given large retailers more money for advancing already strong private-label initiatives, and sales promotion is the next step in the marketing evolution of private-label brands. 27) D

Version 1

An obvious reason for consumers’ increased sensitivity to sales promotion offers is that they save money. Another reason is that many purchase decisions are made at the point of purchase by consumers who are increasingly time sensitive and facing too many choices. 28) C Exciting, breakthrough creative ideas are difficult to come by, and consumers’ attention to mass-media advertising continues to decline. Rather than allocating large amounts of money to run dull ads, many marketers have turned to sales promotion. 29) E Many businesspeople believe the increase in sales promotion is motivated by marketing plans and reward systems geared to short-term performance and the immediate generation of sales volume. Some businesspeople think the packaged-goods brand management system has contributed to marketers’ increased dependence on sales promotion. Brand managers use sales promotions routinely, not only to introduce new products or defend against the competition but also to meet quarterly or yearly sales and market share goals. 30) D Brand managers use sales promotions routinely, not only to introduce new products or defend against the competition but also to meet quarterly or yearly sales and market share goals. 31) C Managers who are being held accountable to produce results often use price discounts or coupons, since they produce a quick and easily measured jump in sales. It takes longer for an ad campaign to show some impact and the effects are more difficult to measure. 32) C Version 1

A major development in recent years is account-specific marketing (also referred to as comarketing), whereby a manufacturer collaborates with an individual retailer to create a customized promotion that accomplishes mutual objectives. 33) B A major development in recent years is account-specific marketing (also referred to as comarketing), whereby a manufacturer collaborates with an individual retailer to create a customized promotion that accomplishes mutual objectives. 34) D This scenario is an example of account-specific marketing. A major development in recent years is account-specific marketing (also referred to as comarketing), whereby a manufacturer collaborates with an individual retailer to create a customized promotion that accomplishes mutual objectives. 35) B Sales promotion activities that communicate distinctive brand attributes and contribute to the development and reinforcement of brand identity are consumer franchise-building (CFB) promotions. Consumer franchise-building promotions are designed to build long-term brand preference and help the company achieve the ultimate goal of full-price purchases that do not depend on a promotional offer. 36) C Some marketing experts argue that sales promotion increases come at the expense of brand equity and every dollar that goes into promotion rather than advertising devalues the brand. They say trade promotions in particular contribute to the destruction of brand franchises and equity as they encourage consumers to purchase primarily on the basis of price. Version 1

37) B Sales promotion activities that communicate distinctive brand attributes and contribute to the development and reinforcement of brand identity are consumer franchise-building (CFB) promotions. Consumer sales promotion efforts cannot make consumers loyal to a brand that is of little value or does not provide them with a specific benefit. 38) A Consumer franchise-building promotions are designed to build longterm brand preference and help the company achieve the ultimate goal of full-price purchases that do not depend on a promotional offer. 39) B Consumer franchise-building promotions are designed to build longterm brand preference and help the company achieve the ultimate goal of full-price purchases that do not depend on a promotional offer. 40) C Price-off deals, bonus packs, and rebates or refunds are examples of non-FB sales promotion techniques. Trade promotions receive the most criticism for being nonfranchise building and for good reason. 41) B Nonfranchise-building promotions are designed to accelerate the purchase decision process and generate an immediate increase in sales. These activities do not communicate information about a brand’s unique features or the benefits of using it, so they do not contribute to the building of brand identity and image. 42) D

Version 1

Trade promotions receive the most criticism for being nonfranchise building because many of the promotional discounts andallowances given to the trade are never passed on to consumers. And most trade promotions that are forwarded through the channels reach consumers in the form of lower prices or special deals, leading them to buy on the basis of price rather than brand equity. 43) E Sales promotion involves some type of inducement that provides an extra incentive to buy. This incentive is usually the key element in a promotional program. 44) A One strategy to attract new customers is to use a sales promotion to attract users of a competing brand. 45) C Sampling involves a variety of procedures whereby consumers are given some quantity of a product for no charge to induce trial. 46) B Sampling is generally considered the most effective way to generate trial, although it is also the most expensive. As a sales promotion technique, sampling is often used to introduce a new product or brand to the market. 47) C As a sales promotion technique, sampling is often used to introduce a new product or brand to the market. However, sampling is also used for established products as well. 48) E

Version 1

Sampling generates much higher trial rates than advertising or other sales promotion techniques. Getting people to try a product leads to a second benefit of sampling: Consumers experience the brand directly, gaining a greater appreciation for its benefits. This can be particularly important when a product’s features and benefits are difficult to describe through advertising. 49) C Door-to-door sampling, in which the product is delivered directly to the prospect’s residence, is used when it is important to control where the sample is delivered. This distribution method is very expensive because of labor costs, but it can be cost effective if the marketer has information that helps define the target market and/or if the prospects are located in a well-defined geographic area. 50) B Sampling through the mail is common for small, lightweight, nonperishable products. A major advantage of this method is that the marketer has control over where and when the product will be distributed and can target the sample to specific market areas. 51) D In in-store sampling, a marketer hires temporary demonstrators who set up a table or booth, prepare small samples of the product, and pass them out to shoppers. The in-store sampling approach can be very effective for food products, since consumers get to taste the item and the demonstrator can give them more information about the product while it is being sampled. 52) D

Version 1

In an on-package sampling, a multiproduct firm attaches a sample of a new product to an existing item of the firm. This procedure can be very cost effective. 53) A The oldest, most widely used, and most effective sales promotion tool is the cents-off coupon. Coupons have been around since 1895, when the C.W. Post Co. started using the penny-off coupon to sell its new GrapeNuts cereal. 54) D Coupons make it possible to offer a price reduction only to those consumers who are price sensitive. Such consumers generally purchase because of coupons, while those who are not as concerned about price buy the brand at full value. 55) A There are a number of problems with coupons. First, it can be difficult to estimate how many consumers will use a coupon and when. Response to a coupon is rarely immediate; it typically takes several months to redeem one. 56) B A problem associated with using coupons to attract new users to an established brand is that it is difficult to prevent the coupons from being used by consumers who already use the brand. Rather than attracting new users, coupons can end up reducing the company’s profit margins among consumers who would probably purchase the product anyway. However, they can help retain users. 57) A

Version 1

Distribution through newspaper freestanding inserts (FSIs) is by far the most popular method for delivering coupons to consumers, accounting for more than 90 percent of all coupons distributed. An FSI is a fourcolor multipage printed advertising booklet that contains consumer packaged-goods coupon offers delivered with newspapers (usually in Sunday editions). 58) A The increased distribution of coupons through freestanding inserts (FSIs) has led to a clutter problem. This is leading some marketers to look at other ways of delivering coupons that will result in less clutter and higher redemption rates, such as direct mail. 59) E Consumers redeem less than 1 percent of the hundreds of billions of coupons distributed each year. 60) B Nearly 60 percent of consumers use coupons on a regular basis and some use them very heavily. 61) A A study of coupon redemption patterns found that many coupons are redeemed just before the expiration date rather than in the period following the initial coupon drop. Many marketers are attempting to expedite redemption by shortening the time period before expiration. 62) C The term “extreme couponing” describes the activity of combining shopping skills with coupon use in an effort to save as much money as possible while shopping. 63) C Version 1

Marketers use coupons as a way to compete against lower-priced competitors as well as private-label store brands. 64) A This scenario is an example of an on-package sample. Often, a small sample of a product that the marketer is trying to promote is coupled with a more established product or brand to encourage use. Many times, marketers include on-package coupons with the sample. 65) B Marketers are leveraging online, or mobile, coupons for a variety of reasons, but one is to have better tracking of the coupon redemption and in-store purchases. 66) B Vinnie’s Cornmeal is experiencing misredemption, or the cashing of a coupon without purchase of the brand. This situation costs the marketer/company considerable lost revenue and added expenses. 67) C RedPlum and SmartSource are examples of freestanding inserts, or FSIs. 68) B FSIs are the most popular way of delivering coupons because of their high-quality four-color graphics, competitive distribution costs, national same-day circulation, market selectivity, and the fact that they can be competition free due to category exclusivity (by the FSI company). 69) D

Version 1

The increased distribution of coupons through FSIs has led to a clutter problem. Consumers are being bombarded with too many coupons, and although each FSI publisher offers product exclusivity in its insert, this advantage may be negated when there are three inserts in a Sunday paper. 70) C A premium is an offer of an item of merchandise or services, either free or at a low price, that is an extra incentive for purchasers. Many marketers are eliminating toys and gimmicks in favor of value-added premiums that reflect the quality of the product and are consistent with its image and positioning in the market. 71) C In the above scenario, the plush toy is an example of a free premium. Free premiums are usually small gifts or merchandise included in the product package or sent to consumers who mail in a request along with a proof of purchase. In/on-package free premiums include toys, balls, trading cards, or other items included in cereal packages, as well as samples of one product included with another. 72) A This scenario is an example of free premiums. Free premiums are usually small gifts or merchandise included in the product package or sent to consumers who mail in a request along with a proof of purchase. In/on-package free premiums include toys, balls, trading cards, or other items included in cereal packages, as well as samples of one product included with another. 73) B

Version 1

Self-liquidating premiums require the consumer to pay some or all of the cost of the premium plus handling and mailing costs. The marketer usually purchases items used as self-liquidating premiums in large quantities and offers them to consumers at lower-than-retail prices. 74) B Self-liquidating premiums require the consumer to pay some or all of the cost of the premium plus handling and mailing costs. The marketer usually purchases items used as self-liquidating premiums in large quantities and offers them to consumers at lower-than-retail prices. 75) A The in-store sampling approach can be very effective for food products, since consumers get to taste the item and the demonstrator can give them more information about the product while it is being sampled. Demonstrators may also give consumers a cents-off coupon for the sampled item to encourage immediate trial purchase. 76) A On-package sampling, where a sample of a product is attached to another item, can be very cost effective, particularly for multiproduct firms that attach a sample of a new product to an existing brand’s package. A drawback is that since the sample is distributed only to consumers who purchase the item to which it is attached, the sample will not reach nonusers of the carrier brand. 77) A

Version 1

Event sampling has become one of the fastest growing and most popular ways of distributing samples. Many marketers are using sampling programs that are part of integrated marketing programs that feature events, media tie-ins, and other activities that provide consumers with a total sense of a brand rather than just a few tastes of a food or beverage or a trial size of a packaged-goods product. 78) B In-store sampling is increasingly popular, especially for food products. The marketer hires temporary demonstrators who set up a table or booth, prepare small samples of the product, and pass them out to shoppers. While this sampling method can be very effective, it can also be expensive and requires a great deal of planning, as well as the cooperation of retailers. 79) D Sampling through the mail is common for small, lightweight, nonperishable products. A major advantage of this method is that the marketer has control over where and when the product will be distributed and can target the sample to specific market areas. Many marketers are using information from geodemographic target marketing programs such as Nielsen’s PRIZM to better target their sample mailings. 80) A Door-to-door sampling, in which the product is delivered directly to the prospect’s residence, is used when it is important to control where the sample is delivered. 81) C

Version 1

Sampling through the mail is common for small, lightweight, nonperishable products. A major advantage of this method is that the marketer has control over where and when the product will be distributed and can target the sample to specific market areas. 82) D Door-to-door sampling, in which the product is delivered directly to the prospect’s residence, is used when it is important to control where the sample is delivered. 83) B A contest is a promotion where consumers compete for prizes or money on the basis of skills or ability. The company determines winners by judging the entries or ascertaining which entry comes closest to some predetermined criteria (e.g., picking the winning teams and total number of points in the Super Bowl or NCAA basketball tournament). 84) B A sweepstakes is a promotion where winners are determined purely by chance; it cannot require a proof of purchase as a condition for entry. Entrants need only submit their names for the prize drawing. 85) B Contests and sweepstakes are an increasingly popular consumer-oriented promotion. Marketers are attracted to contests and sweepstakes as a way of generating attention and interest among a large number of consumers. 86) C One problem with contests and sweepstakes is the participation in them by hobbyists who submit entries but have no real interest in the product or service. Because most states make it illegal to require a purchase as a qualification for a sweepstakes entry, consumers can enter as many times as they wish. Version 1

87) C Nonusers of rebates were particularly likely to perceive the redemption process as too complicated and to suspect manufacturers’ motives. This implies that companies using rebates must simplify the redemption process and use other promotional elements such as advertising to retain consumer confidence in the brand. 88) C This scenario is an example of a bonus pack. Bonus packs offer the consumer an extra amount of a product at the regular price by providing larger containers or extra units. Bonus packs result in a lower cost per unit for the consumer and provide extra value as well as more product for the money. 89) B Bonus packs give marketers a direct way to provide extra value without having to get involved with complicated coupons or refund offers. 90) E Price-off reductions are typically offered right on the package through specially marked price packs. Typically, price-offs range from 10 to 25 percent off the regular price, with the reduction coming out of the manufacturer’s profit margin, not the retailer’s. Keeping the retailer’s margin during a price-off promotion maintains its support and cooperation. 91) B One of the fastest-growing areas of sales promotion is the use of loyalty programs (also referred to as continuity or frequency programs). Frequency programs have become commonplace in a number of product and service categories, particularly travel and hospitality, as well as among retailers. Version 1

92) B One of the fastest-growing areas of sales promotion is the use of loyalty programs (also referred to as continuity or frequency programs). Frequency programs have become commonplace in a number of product and service categories, particularly travel and hospitality, as well as among retailers. 93) A There are a number of reasons why loyalty programs have become so popular. Marketers view these programs as a way of encouraging consumers to use their products or services on a continual basis and as a way of developing strong customer loyalty. Many companies are also realizing the importance of customer retention and understand that the key to retaining and growing market share is building relationships with loyal customers. 94) B One of the fastest-growing areas of sales promotion is the use of loyalty programs (also referred to as continuity or frequency programs). 95) D This scenario is an example of event marketing. Event marketing is a type of promotion where a company or brand is linked to an event or where a themed activity is developed for the purpose of creating experiences for consumers and promoting a product or service. Marketers often do event marketing by associating their product with some popular activity such as a sporting event, concert, fair, or festival. 96) D

Version 1

An event sponsorship is an integrated marketing communications activity where a company develops actual sponsorship relations with a particular event and provides financial support in return for the right to display a brand name, logo, or advertising message and be identified as a supporter of the event. Decisions and objectives for event sponsorships are often part of an organization’s public relations activities. 97) C Manufacturers often devise incentives or contests for the sales personnel. These programs may involve cash payments made directly to the retailer’s or wholesaler’s sales staff to encourage them to promote and sell a manufacturer’s product. These payments are known as push money. 98) A Manufacturers often devise incentives or contests for the sales personnel. These programs may involve cash payments made directly to the retailer’s or wholesaler’s sales staff to encourage them to promote and sell a manufacturer’s product. These payments are also known as push money (pm) or spiffs. 99) C The payment made to the salespeople is known as a spiff. Manufacturers often devise incentives or contests for sales personnel. These programs may involve cash payments made directly to the retailer’s or wholesaler’s sales staff to encourage them to promote and sell a manufacturer’s product. These payments are also known as push money (pm) or spiffs. 100) C

Version 1

Manufacturers often devise incentives or contests for the sales personnel. These programs may involve cash payments made directly to the retailer’s or wholesaler’s sales staff to encourage them to promote and sell a manufacturer’s product. These payments are known as push money or spiffs. 101) C Trade allowance is a discount or deal offered to retailers or wholesalers to encourage them to stock, promote, or display the manufacturer’s products. Types of allowances offered to retailers include buying allowances, promotional or display allowances, and slotting allowances. 102) C This scenario is an example of an off-invoice allowance. Off-invoice allowance means a certain per-case amount or percentage is deducted from the invoice. 103) D Manufacturers often give retailers allowances or discounts for performing certain promotional or merchandising activities in support of their brands. These are known as promotional allowances. These merchandising allowances can be given for providing special displays away from the product’s regular shelf position, running in-store promotional programs, or including the product in an ad. 104) A Slotting allowances, also called stocking allowances, introductory allowances, or street money, are fees retailers charge for providing a slot or position to accommodate a new product. 105) A

Version 1

Retailers justify the slotting allowance by pointing out the costs associated with taking on so many new products each year, such as redesigning store shelves, entering the product into their computers, finding warehouse space, and briefing store employees on the new product. 106) A A failure fee is demanded by retailers if a new product does not hit a minimum sales level within a certain time. The fee is charged to cover the costs associated with stocking, maintaining inventories, and then pulling the product. 107) D Slotting allowances, also called stocking allowances, introductory allowances, or street money, are fees retailers charge for providing a slot or position to accommodate the new product. 108) B Many manufacturers help retailers use shelf space more efficiently through planograms, which are configurations of products that occupy a shelf section in a store. Some manufacturers are developing computerbased programs that allow retailers to input information from their scanner data and determine the best shelf layouts by experimenting with product movement, space utilization, profit yields, and other factors. 109) C

Version 1

The above scenario is an example of a sales training program. Manufacturers provide sales training assistance to retail salespeople in a number of ways. They may conduct classes or training sessions that retail personnel can attend to increase their knowledge of a product or a product line. These training sessions present information and ideas on how to sell the manufacturer’s product and may also include motivational components. 110) D One important promotional activity targeted to resellers is a trade show, a forum where manufacturers can display their products to current as well as prospective buyers. 111) A Horizontal cooperative advertising is advertising sponsored in common by a group of retailers or other organizations providing products or services to the market. 112) A In the above scenario, the PC manufacturers are using cooperative advertising. One form of trade-oriented promotion we examine is cooperative advertising, where the cost of advertising is shared by more than one party. 113) A Horizontal cooperative advertising is advertising sponsored in common by a group of retailers or other organizations providing products or services to the market. 114) B Ingredient-sponsored cooperative advertising is supported by raw materials manufacturers; its objective is to help establish end products that include the company’s materials and/or ingredients. Version 1

115) B This scenario is an example of vertical cooperative advertising. The most common form of cooperative advertising is the trade-oriented form, vertical cooperative advertising, in which a manufacturer pays for a portion of the advertising a retailer runs to promote the manufacturer’s product and its availability in the retailer’s place of business. 116) C The most common form of cooperative advertising is the trade-oriented form, vertical cooperative advertising, in which a manufacturer pays for a portion of the advertising a retailer runs to promote the manufacturer’s product and its availability in the retailer’s place of business. Manufacturers generally share the cost of advertising run by the retailer on a percentage basis up to a certain limit. 117) B Allocation of the promotional budget may vary according to a brand’s stage in the product life cycle. When a brand moves to the maturity stage, advertising is primarily a reminder to keep consumers aware of the brand. 118) D With respect to the allocation of the promotional budget, according to a brand’s stage in the product lifecycle, when a brand enters the decline stage of the product lifecycle, most of the promotional support will probably be removed and expenditures on sales promotion are unlikely. 119) D With respect to the allocation of the promotional budget according to a brand’s stage in the product lifecycle, in the growth stage, promotional dollars may be used primarily for advertising to stress brand differences and keep the brand name in consumers’ minds. Version 1

120) B With respect to the allocation of the promotional budget according to a brand’s stage in the product lifecycle, in the introductory stage, a large amount of the budget may be allocated to sales promotion techniques such as sampling and couponing to induce trial. 121) A According to the attribution theory, consumers who consistently purchase a brand because of a coupon or price-off deal may attribute their behavior to the external promotional incentive rather than to a favorable attitude toward the brand. 122) B A sales promotion trap or spiral can result when several competitors use promotions extensively. 123) E A study by Priya Raghubir and Kim Corfman showed that offering a price promotion is more likely to lower a brand’s evaluation when the brand has not been promoted previously compared to when it has been frequently promoted; that price promotions are used as a source of information about a brand to a greater extent when the evaluator is not an expert but does have some product or industry knowledge; and that promotions are more likely to result in negative evaluations when they are uncommon in the industry. The findings from this study suggest that marketers must be careful in the use of price promotions as they may inhibit trial of a brand in certain situations.

Version 1

CHAPTER 17 TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) Publicity, public relations, and corporate advertising are integral parts of the overall promotional effort. ⊚ ⊚

Public relations is limited to business management. ⊚ ⊚

true false

Public relations efforts are often targeted to more than one group of individuals. ⊚ ⊚

true false

4) Public relations is typically a short-term strategy, while publicity is a concerted program extending over a period of time. ⊚ ⊚

true false

A corporate ad is not as easy to write as an ad designed to position a product. ⊚ ⊚

true false

6) Whirlpool’s association with Habitat for Humanity, related to its efforts to eliminate poverty housing, is an example of a sponsorship. ⊚ ⊚

Version 1

true false

7) Advocacy advertising is concerned with propagating ideas and elucidating controversial social issues of public importance in a manner that supports the interests of a sponsor. ⊚ ⊚

true false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 8) Which of the following statements about public relations is true? A) Typically, shorter forms of public relations and publicity are interchangeable functions. B) Public relations is not considered a management function. C) Public relations has the same objectives as product and service promotion. D) An effective public relations program continues over months or even years. E) Public relations deals only with the activities designed to sell a product or service.

9) In the traditional perspective, public relations is a ________ function whose primary responsibility is to maintain mutually beneficial relationships between an organization and its publics. A) financial B) human resources C) nonmanagement D) nonmarketing E) sales

10) ________ is the management function that evaluates public attitudes, identifies the policies and procedures of an organization with the public interest, and executes a program of action to earn public understanding and acceptance.

Version 1

A) Public relations B) Image advertising C) Corporate advertising D) Public administration E) Public offering

11) Marketing objectives that may be aided by ________ activities include raising awareness, informing and educating, gaining understanding, building trust, giving consumers a reason to buy, and motivating consumer acceptance. A) sales promotion B) public relations C) advertising D) human resources E) outdoor marketing

12) According to Cutlip and colleagues, what is the first step to developing a public relations plan? A) Hold programs to handle PR problems. B) Develop plans for handling PR problems. C) Define the PR problems. D) Take actions to counter PR problems. E) Evaluate the programs taken to counter PR programs.

13)

In public relations targeting, external audiences include the A) customers. B) public. C) suppliers. D) stockholders. E) employees.

Version 1

14)

Which of the following is considered an internal audience for a public relations activity? A) customers B) media C) government D) public E) civic groups

15) ________ for public relations efforts include employees, stockholders, and investors of a firm as well as members of the local community, suppliers, and current customers. A) Internal audiences B) Secondary audiences C) Mediated audiences D) External audiences E) Theoretical audiences

16)

Which of the following statements about publicity is true? A) Publicity always originates within a firm and is paid for by the firm. B) Publicity is used to generate news about a person, and not a product or service. C) Public relations is, in reality, a subset of the publicity effort. D) Publicity is typically a short-term strategy. E) Publicity is designed to provide only positive information about a firm.

17) Marketing public relations (MPR) can add value to an integrated marketing program in a number of ways, including creating advertising news when there is no product news. As demonstrated with the Super Bowl, the focus of publicity can sometimes be the

Version 1

A) rivalry. B) fans. C) MVP. D) ads. E) spirit of the game.

18)

A disadvantage of marketing public relations is that A) it integrates with IMC. B) it circumvents consumer resistance to sales efforts. C) media time and space is not guaranteed. D) it breaks through the clutter. E) it can create influence among opinion leaders and trendsetters.

19)

In marketing public relations (MPR), a firm’s product sales may be affected by A) procedures. B) public attitudes. C) employee morale. D) brand impact. E) policies.

20) When establishing a public relations plan, it should be noted that it is an ongoing process that deals with problems and opportunities requiring formalized A) policies and procedures. B) marketing plan. C) brand identity. D) advertising campaign. E) business planning.

Version 1

21)

Community members and customers of a firm are considered a(n) ________ audience. A) external B) marginal C) peripheral D) extroverted E) internal

22)

Communities of people who live and work where a firm is located are often the target of A) advertising efforts. B) primacy appeal. C) public relations efforts. D) brand impact. E) marketing efforts.

23) To be used by the press, the information in a press release must be factual and true and of interest to both the audience and the A) location. B) medium. C) locality. D) community. E) business.

24) The public does not realize that an organization either directly or indirectly pays for public relations communications. As a result, these communications tend to have more

Version 1

A) advertising. B) sustainability. C) controversy. D) credibility. E) sales.

25) Public relations is considered __________ because the media are not paid to provide the information. A) debatable B) unreliable C) controversial D) credible E) contentious

26)

When the possible effects of public relations are considered, the cost of public relations is A) pricey. B) very high. C) very low. D) negotiable. E) difficult to calculate.

27) Public relations messages are not subject to the clutter of ads because they are typically perceived as A) marketing. B) corporate communications. C) sponsored by firms. D) public notices. E) news items.

Version 1

28)

A major disadvantage of public relations is the potential for A) completing the advertising process. B) not completing the communications process. C) not completing the marketing process. D) not completing the advertising process. E) completing the marketing process.

29)

A subset of the public relations effort is A) marketing. B) the primacy appeal. C) publicity. D) admiration. E) advertising.

30) With the goal to provide positive information, it is important that public relations is usually controlled by A) the firm or its agent. B) the community. C) the firm’s board of directors. D) the public. E) the media.

31)

Both positive and negative publicity often originates from sources other than

Version 1

A) the firm or its agent. B) the community. C) the firm’s board of directors. D) the public. E) the media.

32) Unlike advertising and sales promotions, publicity is not usually perceived as being sponsored by a A) marketing firm. B) company. C) media entity. D) public relations firm. E) news outlet.

33)

The power of publicity is the frequency of exposure it generates through its A) marketing value. B) company value. C) media value. D) public relations value. E) news value.

34)

The new role of PR differs from the traditional role of PR in that it A) views PR as a nonmarketing function. B) has a narrower perspective of PR functions. C) considers marketing and public relations as separate departments. D) considers all noncustomer relationships necessary only in a marketing context. E) requires the marketing department to report to public relations.

Version 1

35)

The new role of public relations is characterized primarily by A) a less communication-oriented role. B) a less finance-oriented role. C) a more sales-oriented role. D) a less technical role. E) a more marketing-oriented role.

36) According to Thomas L. Harris, public relations activities that are designed to support marketing objectives are known as A) service marketing communications. B) public administration functions. C) marketing public relations functions. D) public activity networking. E) marketing system functions.

37) Which of the following statements describes an advantage of the use of marketing public relations (MPR)? A) The effectiveness of MPR can be easily measured. B) It is easy to tie slogans with MPR activities. C) MPR breaks through the clutter. D) The use of MPR guarantees a specific media time and place. E) MPR helps in increasing control over media.

38)

Which of the following correctly states an advantage of using MPR?

Version 1

A) It helps in extending a company’s control over the media. B) It is a cost-effective way to reach a target market. C) It enables marketers to easily use slogans and other advertising devices. D) It provides a guarantee for media time and space. E) It offers several standard effectiveness measures.

39)

Which of the following correctly states a disadvantage of using MPR? A) It does not contribute to a company’s ROI. B) It lacks credibility. C) It fails to support advertising programs. D) It rarely influences opinion leaders and trendsetters. E) It does not guarantee media time and space.

40)

Which of the following correctly states a disadvantage of MPR? A) It is not a cost-effective way to reach the market. B) It fails to achieve credibility. C) It is difficult to tie in slogans and other advertising devices. D) It fails to break through the clutter. E) It helps to improve ROI.

41)

Which of the following is considered an external audience of a public relations activity? A) customers B) suppliers C) members of the local community D) stockholders E) press

Version 1

42) Organizational newsletters, notices on bulletin boards, awards ceremonies and events, direct mail, and annual reports are some of the methods used to communicate with A) the current customers of an organization. B) the employees of a firm. C) the press. D) government officials. E) community members.

43) Which of the following methods of communication is typically used to create goodwill within an organization? A) organizational newsletters B) award ceremonies C) annual reports D) grievance committees E) corporate picnics

44) ________ are used to inform an audience about how well a firm is doing, its future plans, financial information, and other information that goes beyond numbers. A) Corporation certificates B) Articles of association C) Annual reports D) Grievance committee reports E) Memoranda of association

45) The press, educators, civic and business groups, governments, and financial communities are all

Version 1

A) internal audiences. B) secondary audiences. C) mediated audiences. D) external audiences. E) tertiary audiences.

46) One of the most critical external publics is ________, which determine what a person will read in newspapers or online, or see on TV, and how this news will be presented. A) suppliers B) customers C) the government D) the media E) investors

47) Which of the following groups would most likely be the target of public relations efforts designed to increase communications with external audiences? A) potential investors and the media B) current customers and employees of the firm C) supply chain members and current customers D) suppliers and employees of the firm E) stockholders and the public at large

48) A number of groups and major corporations, such as Marketing EDGE and the Direct Marketing Association, provide information regarding innovations, state-of-the-art research, and other items of interest to

Version 1

A) suppliers. B) financial groups. C) educators. D) civic organizations. E) the media.

49) Companies help ________ by making financial contributions, offering sponsorships, and delivering speeches at functions to create goodwill. A) suppliers B) financial groups C) educators D) civic organizations E) the media

50) ________ offer companies the potential for new sources of funding and so must be kept abreast of new developments in the organization. A) Suppliers B) Financial groups C) Educators D) Civic organizations E) Employees

51)

Companies that support lobbying efforts are A) trying to reach internal audiences. B) engaged in flighting. C) targeting government bodies. D) stressing the importance of homogeneity. E) targeting educators.

Version 1

52) Major accomplishments, major breakthroughs, emergencies, or catastrophes typically warrant A) a community involvement program. B) a national press conference. C) an exclusive interview. D) a focus group survey. E) an internal accounting process.

53) Companies often use ________ when they have significant news to announce, such as the introduction of a new product or advertising campaign. A) community involvement programs B) press conferences C) exclusives D) focus group surveys E) interviews

54) The management of a multinational firm sends copies of a write-up to several different European newspapers announcing its decision to start operations in Spain. Which public relations tool is the company using? A) community involvement B) press conference C) exclusives D) marketing public relations (MPR) E) press release

55) An international football player invites the media to hear his decision to retire from professional football. In front of a live audience, he announces his decision and explains his future plans as well. Which of the following public relations tools is illustrated in this scenario?

Version 1

A) community involvement B) social networking C) exclusives D) press conference E) press release

56) When a right to a public relations effort is offered to one particular medium since the medium reaches a substantial number of people in the target audience, it is known as A) a social network. B) a mnemonic. C) a press release. D) an exclusive. E) a press conference.

57) Energon Inc., a beer manufacturer, distributes free water bottles in areas where there is water scarcity. Moreover, the company sponsors several local events such as concerts, theater productions, and sporting events. In this scenario, Energon Inc. is engaging in A) community involvement. B) integrated public relations activities. C) exclusives. D) press conferences. E) press releases.

58) How does the use of the Internet differ from the use of other traditional media for disseminating PR information?

Version 1

A) The Internet often fails to offer updated PR information due to several constraints. B) The Internet is confined by time and space limitations that do not inhibit other media. C) The Internet enables companies to archive press releases. D) The Internet cannot be used by organizations to defend themselves against negative publicity. E) The Internet is rarely used as a public relations source.

59) Since public relations communications are typically perceived as ________, they are not subject to the problems of clutter that are associated with other forms of promotional communication. A) corporate-sponsored advertisements B) public-sponsored advertisements C) image builders D) news items E) exclusives

60)

Which of the following statements is true of public relations? A) This medium of promotion lacks credibility. B) The relative cost of public relations is very low. C) The absolute cost of public relations is very high. D) Public relations messages are subject to a lot of clutter. E) Public relations is ineffective in generating sales leads.

61)

Which of the following is an advantage of public relations? A) effectiveness at completing the communications process B) high absolute cost but low relative cost C) ability to complete the communications process D) effective lead generation E) strong connection between the receiver and the source

Version 1

62)

The cost of public relations is A) generally not considered as a part of the marketing budget. B) very low in both relative and absolute terms. C) very high in relative terms and very low in absolute terms. D) very low in relative terms and very high in absolute terms. E) not easy to determine as it fluctuates across initiatives.

63) Which of the following is the most affordable form of communication available to smaller companies? A) public relations B) image advertising C) corporate advertising D) public administration E) public offering

64) PR information about technological innovations, medical breakthroughs, and the like results almost immediately in a multitude of inquiries that result in A) high marketing costs. B) loss of credibility. C) high clutter. D) quality sales leads. E) loss of market share.

65)

Which of the following correctly states a disadvantage of PR?

Version 1

A) It has less credibility than advertising. B) It is costly in both relative and absolute terms. C) It is subject to clutter. D) It can misfire if mismanaged. E) It does not contribute to sales.

66) In a review of emerging models for measuring public relations effectiveness, Amit Jain concluded that A) the number of press releases developed is the best way to measure public relations effectiveness. B) public relations evaluation can validate the results of an organization’s efforts. C) evaluating public relations efforts tells management what has been achieved through public relations activities. D) traditional methods for measuring public relations effectiveness no longer work. E) media content analysis is not an effective way to measure public relations effectiveness.

67) Which of the following does Mark Weiner suggest for measuring the effectiveness of MPRs? A) quantitative assessment of consumers’ attitudes toward a product B) number of personal interviews given by company representatives C) dollar value of community involvement D) number of press releases developed E) percentage of people who have encountered the press release

68) ________ helps in systematically and objectively identifying the characteristics of messages that are broadcasted and analyzing the content to determine trends and perceptions relevant to a product or brand.

Version 1

A) Regression analysis B) Focus group discussion C) Marketing-mix modeling D) Survey research E) Media content analysis

69) Drawing data from multiple sources and integrating them to provide insight into the PR process is referred to as A) regression analysis. B) focus group discussion. C) marketing-mix modeling. D) survey research. E) media content analysis.

70)

Which of the following is an advantage of measuring the effectiveness of PR activities? A) It helps find the percentage of people who encounter the press release. B) It reduces the high absolute costs connected with PR activities. C) It enables the PR and marketing teams to function independently. D) It helps complete the communication process. E) It helps management judge the quality of PR achievements.

71) According to Mark Weiner, which of the following are a common method for measuring the effectiveness of public relations activities? A) number of customer complaints B) public opinion and surveys C) sales measures D) computer simulations E) trend analyses

Version 1

72) ________ refers to the generation of news about a person, product, or service that appears in broadcast or print media. A) Indirect advertising B) Direct response advertising C) Sales promotions D) Publicity E) Advertainment

73) An article published in a national newspaper states that a new drug manufactured by a well-known company to treat lung cancer is not as effective as the company claims it to be. The article also describes how the drug has been linked to several deaths and cases of serious side effects. This article is an example of A) an advertorial. B) negative publicity. C) controlled public relations. D) image advertising. E) negative lobbying.

74) Unlike other forms of promotion, ________ is not usually perceived as being sponsored by the company, especially in negative instances. A) direct marketing B) outdoor advertising C) publicity D) transit advertising E) trade promotion

75) Which of the following is one of the important reasons for the high power of publicity as a form of promotion?

Version 1

A) its ability to eliminate the problem of clutter B) its ability to eliminate the problem of economies of scale C) its news value and the frequency of exposure it generates D) its lack of ability to generate word of mouth information E) its lack of credibility

76) Many marketers consider publicity to be the strongest form of marketing communications because of A) its effectiveness at completing the communications process. B) its ability to make or break a brand. C) its inability to affect sales. D) the ease with which it complements other communications activities. E) the positive image it always attaches to products and organizations.

77) Which of the following communications methods is potentially the most powerful in terms of its ability to make or break a product or a company? A) sales promotions B) advertorials C) online advertising D) publicity E) celebrity branding

78) Publicity is considered much more important than advertising, sales promotion, or other forms of public relations because of the A) control it has over the message. B) timing of the message. C) credibility it offers to the message. D) accuracy of the message. E) lack of clutter in the message.

Version 1

79) Publicity is the generation of news about a person, product, or service that appears in broadcast or print media. Publicity can be managed like any other A) advertising tool. B) promotional tool. C) public relations tool. D) publicity tool. E) sponsorship tool.

80) A ________ is a publicity piece produced by publicists so that TV stations can air it as a news story. A) video news release B) celebrity branding C) split-run test D) news mnemonic E) dramatization ad

81) A news channel runs a two-minute story on phishing scams. The report features the testimonies of a phishing victim and a computer security expert from a software company. The story narrates how a security product from the company acts as “a first line of defense” against phishing scams. If the company actually funded the report, it would then be an example of A) image advertising. B) advocacy and news advertising. C) cause-related news advertising. D) a video news release. E) direct response advertising.

82) A popular cartoon channel on television ran a holiday feature on the best and worst hightech gifts for children. In the feature, a technology expert recommended games that were developed by selected companies. If these selected companies jointly funded the holiday feature, it would be an example of Version 1

A) a cause-related ad. B) a mnemonic. C) an image ad. D) a video news release. E) an event sponsorship.

83) 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

84)

Which of the following is an advantage of publicity? A) high control over the information being conveyed B) control over the timing of information release C) accuracy of the information being publicized D) control over any inappropriate word-of-mouth marketing E) perception of being endorsed by the media

85)

In the context of PR, the timing of when a press release is used is entirely up to the A) suppliers in a firm. B) financial groups in a community. C) educators in a community. D) civic organizations in a community. E) media.

Version 1

86)

Which of the following is a disadvantage of publicity? A) lack of credibility B) a perception of being endorsed by the media C) control over timing of publicity D) information can be inaccurate E) low potential for word-of-mouth communication

87)

One of the main disadvantages of publicity is the A) lack of control over the information conveyed. B) low credibility it offers. C) lack of support that is often shown by the media. D) lack of confidence people have in such information. E) minimal frequency of exposure that it generates.

88) The Cision framework for digital public relations involves a communication funnel consisting of bottom line, digital impact, and A) brand appeal. B) brand media. C) social media. D) brand impact. E) brand identity.

89) Corporate advertising does not promote any one specific product or service; it is actually an extension of the ________ function.

Version 1

A) e-commerce B) marketing C) public relations D) advertising E) new media

90)

Corporate advertising does not A) promote one product or service. B) seek direct involvement in a cause. C) enhance a brand or image. D) promote the firm overall. E) support social issues.

91) One of the reasons why corporate advertising is considered controversial is because critics say it is a costly form of A) public advertising. B) self-indulgence. C) marketing. D) public relations. E) advertainment.

92)

Corporate advertising is designed to reach A) the general public. B) affiliate news outlets. C) a select target market. D) an advertising firm. E) a marketing firm.

Version 1

93) Communications activities designed to promote a firm’s overall image, without reference to a specific product, are called A) corporate advertising. B) event branding. C) advertorials. D) lobbying. E) cause-related advertising.

94)

Why is corporate advertising considered controversial? A) Consumers are highly interested in this form of advertising. B) It places too much importance on products and services. C) It is considered a waste of money for a company. D) It depends on the names of a company’s brands rather than the company itself. E) It exposes the negative aspects of a firm’s functioning.

95) The illustration in an ad for Aries Venture showed an elephant walking a narrow log bridging two cliffs. The headline read, “Who says you can’t be big and nimble?” Since the ad made no reference to specific products offered by Aries Venture, it is an example of A) corporate advertising. B) advocacy advertising. C) an advertorial. D) lobbying. E) continuity advertising.

96)

Which of the following statements is true of corporate advertising?

Version 1

A) It portrays the image that a firm is in trouble. B) It is typically used to generate greater sales of a particular product. C) It generates high levels of interest among consumers. D) It is usually used to promote a service as opposed to a product. E) It usually brings a significant return on investment.

97)

Which of the following is the best example of corporate advertising? A) Saturn Inc.’s use of a popular actress as a spokesperson B) Mars and Gray promoting its concern for the environment C) Crest Golf’s signing of pro-golfer Bryan Raymond as a spokesperson D) W&W conducting a contest to choose a new color for their candies E) Haven Funeral Home giving out free calendars to all of its clients

98)

Which of the following statements about corporate advertising is true? A) It is a cheap form of advertising. B) It attracts the interest of consumers. C) Corporate image ads are highly tangible. D) Corporate ads are not easy to write. E) It concentrates on the promotion of one specific product or service.

99) The term ________ tends to be used as a catchall for any type of advertising run for the direct benefit of a company rather than for its products or services. A) direct marketing B) sales promotion C) aerial advertising D) corporate advertising E) trade promotion

Version 1

100)

One of the major goals of corporate advertising is A) developing consumer interest in a company’s products and services. B) creating awareness about the new products of a firm. C) inducing trial. D) inviting feedback. E) communicating an organization’s views on social issues.

101)

Firms that spend more on corporate advertising also tend to have A) ineffective IMC programs. B) unidimensional marketing strategies. C) greater return on investments. D) higher-priced stocks. E) better positioning strategies.

102)

Which of the following statements is true of corporate advertising? A) It is highly effective in promoting organizations. B) It reaches a select target market. C) It follows strong ethical principles. D) It fails to take advantage of the benefits derived from PR. E) It fails to effectively position a firm.

103)

Which of the following is a criticism commonly applied to corporate advertising? A) poor vehicle for repositioning a company or a brand B) failure to take advantage of the benefits derived from public relations C) not effective at reaching the target market D) questionable effectiveness E) lack of control over public opinion

Version 1

104)

Attitude surveys and focus group research help in measuring the effectiveness of A) corporate advertising. B) celebrity branding. C) advertorials. D) lobbying. E) continuity advertising.

105)

Which of the following is used to measure the effectiveness of corporate advertising? A) regression analysis B) focus group research C) Boolean analysis D) BCG matrix E) cumulative frequency analysis

106) It is often difficult to measure the effectiveness of corporate advertising activities. Which of the following measures would be most useful in this effort? A) tying PR activities directly to sales B) timing the amount a sponsored logo appears on television C) conducting studies relating to corporate advertising and stock prices D) computer simulations E) measuring effectiveness of the sales promotional tools instead

107)

Positioning ads and sponsorships are examples of

Version 1

A) transit advertising. B) cause-related advertising. C) image advertising. D) advocacy advertising. E) WOM advertising.

108) ________ is a form of corporate advertising devoted to promoting an organization’s overall reputation. A) Transit advertising B) Cause-related advertising C) Image advertising D) Advocacy advertising E) Symbolic advertising

109) An ad for Bingley Tableware proudly claims that its line of dinner plates and dishes is inspired by and similar to a popular film star’s designer wedding china. The ad shows a happy bride and groom sitting at their wedding table, which is laid with Bingley china. This ad is an example of A) cause-related advertising. B) advocacy advertising. C) a general positioning ad. D) a direct response ad. E) a financial support ad.

110) Grand Thornton’s print ad states, “If you have a passion for accounting and want to work with others who share that passion, you might be interested in the Grant Thornton accounting firm.” This ad is an example of

Version 1

A) direct-response advertising. B) corporate image advertising. C) cause-related advertising. D) advocacy advertising. E) event sponsorship.

111) In its ad, a well-known car company explains its “Global Earth Charter,” which has led to the recycling of 400 million pounds of steel annually and an aggressive recycling program that keeps 20 million pounds of other scrap metal from reaching landfills. Which type of image advertising has been used in this ad? A) recruitment ad B) sponsorship C) paid positive publicity D) general positioning ad E) financial support ad

112)

When Alstone Mobile refers to itself as “The good tire people,” it is engaging in A) positioning advertising. B) recruitment advertising. C) advocacy advertising. D) sales promotions. E) direct marketing.

113) When a large corporation sponsors a college bowl game, what type of advertising is being used?

Version 1

A) advocacy advertising B) image advertising C) issue advertising D) cause-related advertising E) advertorial marketing

114)

Which of the following statements is true of event sponsorships?

A) They are highly useful public relations tools. B) They are typically inexpensive. C) They are unsuitable for gaining affinity with target audiences. D) They are a poor platform from which to build equity and gain affinity with target audiences. E) They are not suitable platforms for building equity.

115)

Many companies are attracted to event sponsorships because A) they help build equity and gain affinity with target audiences. B) they help in segmenting the target market. C) they are less expensive than traditional forms of advertising. D) they help in elucidating controversial issues of public importance. E) they explain management’s position on social issues.

116) ________ is a major form of corporate advertising that addresses social, business, or environmental issues. A) Image advertising B) Aerial advertising C) Advocacy advertising D) Event sponsorship E) Trade promotion

Version 1

117) While portraying an image for a company or organization, ________ does so indirectly, by adopting a position on a particular issue rather than by promoting the organization itself. A) advocacy advertising B) publicity C) sponsorship D) public relations advertising E) image advertising

118) ________ advertising is concerned with propagating ideas and elucidating controversial social issues of public importance in a manner that supports the interests of a sponsor. A) Advocacy B) Image C) Aerial D) Event E) Interactive

119) An oil company in the United States develops an advertisement that promotes offshore oil-drilling in the country. The ad states the availability of oil resources and stresses the importance of reducing dependence on foreign oil sources. The ad’s goal is to get members of the public to support offshore drilling. This ad is an example of A) image advertising. B) trade promotion. C) direct-response advertising. D) event sponsorship. E) advocacy advertising.

120)

Which of the following statements is true of advocacy advertising?

Version 1

A) Advocacy advertising is concerned with elucidating controversial social issues. B) Advocacy advertising is most suitable for high-end luxury products. C) Advocacy advertising is designed to directly create an image of the firm in the public eye. D) Advocacy advertising is ineffective for large organizations. E) Advocacy advertising is used to promote the organization itself.

121) When M1 Oil runs an advertisement urging citizens to support and donate to a law enforcement memorial fund, it is using A) advocacy advertising. B) event marketing. C) specialty advertising. D) personal branding. E) event sponsorship.

122) An international soda manufacturer runs an ad campaign in which it addresses the problem of global warming. The campaign aims to educate people on the issue in depth and provides an alternative perspective on lifestyle choices. This ad is an example of A) advocacy advertising. B) event marketing. C) specialty advertising. D) corporate repositioning. E) image sponsorship.

123)

Which of the following statements is true of advocacy advertising?

Version 1

A) Advocacy advertising is typically suitable only for small firms. B) Advocacy ads may be sponsored by a firm or by a trade association. C) Advocacy ads can be used only in conjunction with cause-related marketing. D) Advocacy ads are mainly used for attracting sponsorships for events. E) Advocacy ads use direct advertising to promote an organization.

124) While considered a form of advocacy advertising, ________ may have no affiliation with a corporate or trade sponsor but may be sponsored by an organization to bring attention to what they consider to be an important cause. A) direct-response ads B) image ads C) positioning ads D) issue ads E) transit ads

125) A departmental store ad about a consumer tax problem would constitute ________ advertising. A) image B) event C) direct-response D) trade E) issue

126) ________ marketing is an increasingly popular method of image building, in which companies link with charities or nonprofit organizations as contributing sponsors.

Version 1

A) Cause-related B) Event C) Image D) Transit E) Cooperative

127)

Cause-related marketing refers to A) all advertising designed to cause sales. B) all advertising designed to cause attitude change. C) linking companies with nonprofit organizations. D) changing the current image of an organization. E) responding to any negative publicity faced by a firm.

128) Making outright donations to a nonprofit cause, having companies volunteer for the cause, donating materials or supplies, running public service announcements, or even providing event refreshments are some of the forms of ________ marketing. A) cause-related B) event C) image D) transit E) cooperative

129) 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.

Version 1

130)

Which of the following statements is true of cause-related marketing? A) It involves sponsoring a sports-related event. B) It helps increase consumer acceptance of price increases. C) It does not help consumers in differentiating between brands. D) It is also known as advocacy marketing. E) It does not include outright donations.

131) Advertising sponsored by the American Heart Association and the American Stroke Association and targeting teens to stop smoking is an example of A) advocacy advertising. B) cause-related marketing. C) VNR. D) event sponsorship. E) image advertising.

Version 1

Answer Key Test name: Chap 17_12e 1) TRUE Publicity, public relations, and corporate advertising all have promotional program elements that may be of great benefit to marketers. They are integral parts of the overall promotional effort that must be managed and coordinated with the other elements of the promotional mix. 2) FALSE Public relations is not limited to business management, but extends to other types of organizations, including nonprofit institutions. 3) TRUE Public relations efforts are often targeted to more than one group, and are a direct result of concerns initiated in the marketplace. 4) FALSE Publicity is typically a short-term strategy, while public relations is a concerted program extending over a period of time. 5) TRUE Corporate ads are not easy to write. The message to be communicated is not as precise and specific as one designed to position a product. 6) TRUE When a company associates with a charity, it can result in a carryover effect that benefits the company’s image. 7) TRUE

Version 1

Advocacy advertising is concerned with propagating ideas and elucidating controversial social issues of public importance in a manner that supports the interests of a sponsor. 8) D The public relations process does not occur all at once. An effective public relations program continues over months or even years. 9) D In the traditional perspective, public relations is viewed as a nonmarketing function whose primary responsibility is to maintain mutually beneficial relationships between the organization and its publics. 10) A Public relations has been defined as the management function that evaluates public attitudes, identifies the policies and procedures of an organization with the public interest, and executes a program of action (and communication) to earn public understanding and acceptance. 11) B Marketing objectives that may be aided by public relations activities include raising awareness, informing and educating, gaining understanding, building trust, giving consumers a reason to buy, and motivating consumer acceptance. 12) C Cutlip and colleagues suggest a four-step process for developing a PR plan: (1) define public relations problems, (2) plan and program, (3) take action and communicate, and (4) evaluate the program. 13) B

Version 1

External audiences are those people who are not closely connected with the organization (e.g., the public at large). 14) A Internal audiences may include the employees, stockholders, and investors of the firm as well as members of the local community, suppliers, and current customers. 15) A Internal audiences may include the employees, stockholders, and investors of the firm as well as members of the local community, suppliers, and current customers. 16) D Publicity is typically a short-term strategy, while public relations is a concerted program extending over a period of time. 17) D Ads themselves can be the focus of publicity. There seems to be as much hype about the ads on the Super Bowl as there is for the game itself. 18) C One main disadvantage of marketing public relations is that media time and space are not guaranteed. 19) B One of the main reasons why firms are concerned about public attitudes is that these attitudes may affect the sales of the firm’s products. 20) A The public relations process is an ongoing one, requiring formalized policies and procedures for dealing with problems and opportunities. 21) E Version 1

According to John Marston, community members and customers of a firm are considered internal rather than external because these groups are already connected with the organization in some way, and the firm normally communicates with them in the ordinary routine of work. 22) C People who live and work in the community where a firm is located or doing business are often the target of public relations efforts. 23) B To be used by the press, information must be factual, true, and of interest to the medium as well as to its audience. 24) D Since public relations communications are not perceived in the same light as advertising—that is, the public does not realize an organization either directly or indirectly paid for them—they tend to have more credibility. 25) D The fact that the media are not being compensated for providing the information may lead receivers to consider the news from public relations to be more truthful and credible. 26) C In both absolute and relative terms, the cost of public relations is very low, especially when the possible effects are considered. 27) E Since they are typically perceived as news items, public relations messages are not subject to the clutter of ads. 28) B

Version 1

Perhaps the major disadvantage of public relations is the potential for not completing the communications process. While public relations messages can break through the clutter of commercials, a receiver may not make the connection to the source. 29) C Publicity is really a subset of the public relations effort. 30) A Public relations is designed to provide positive information about a firm and is usually controlled by the firm or its agent. 31) A Publicity is not always positive and is not always under the control of, or paid for by, an organization. Both positive and negative publicity often originates from sources other than the firm. 32) B Unlike advertising and sales promotions, publicity is not usually perceived as being sponsored by a company. 33) E A reason for publicity’s power is its news value and the frequency of exposure it generates. 34) D The new role of PR perceives all noncustomer relationships as necessary only in a marketing context. 35) E PR takes on a much broader (and more marketing-oriented) perspective, designed to promote the organization as well as its products and/or services.

Version 1

36) C Thomas L. Harris has referred to public relations activities designed to support marketing objectives as marketing public relations (MPR) functions. 37) C MPR helps break through the clutter. 38) B An advantage of using MPRs is that it is a cost-effective way to reach target markets. 39) E One of the disadvantages of MPRs is that it does not guarantee media time and space. 40) C One of the disadvantages of MPRs is that it is difficult to tie in slogans and other advertising devices. 41) E The press, educators, civic and business groups, governments, and the financial community can be external audiences. 42) B Organizational newsletters, notices on bulletin boards, awards ceremonies and events, direct mail, and annual reports are some of the methods used to communicate with the employees of the firm. 43) E Social events, such as corporate bowling teams or picnics, are used to create goodwill among the employees of a firm. 44) C Version 1

Annual reports are a communications channel for informing stockholders and investors about why the firm is or is not doing well, outlining future plans, and providing other information that goes beyond numbers. 45) D The press, educators, civic and business groups, governments, and the financial community can be external audiences. 46) D Perhaps one of the most critical external publics is the media, which determine what you will read in your newspapers or online, or see on TV and how this news will be presented. 47) A The press, educators, civic and business groups, governments, and the financial community can be external audiences. 48) C A number of organizations provide educators with information regarding their activities. These groups and major corporations provide information regarding innovations, state-of-the-art research, and other items of interest. 49) D Companies’ financial contributions to these groups, speeches at organization functions, and sponsorships are all designed to create goodwill. Corporate executives’ service on the boards of nonprofit organizations also generates positive public relations. 50) B

Version 1

Financial advisors, lending institutions, and others must be kept abreast of new developments as well as of financial information, since they offer the potential for new sources of funding. 51) C Public relations often attempts to influence government bodies directly at both local and national levels. Successful lobbying may mean immediate success for a product, while regulations detrimental to the firm may cost it millions. 52) B Major accomplishments (such as the awarding of the next Super Bowl, FIFA, or Olympics location), major breakthroughs (such as medical cures), emergencies, or catastrophes warrant a national press conference. 53) B Companies often call press conferences when they have significant news to announce, such as the introduction of a new product or advertising campaign. 54) E The company is using a press release. One of the most important publics is the press. The source of a press release can improve the likelihood that the “news” will be disseminated by ensuring that it reaches the right target audience, making it interesting, and making it easy to pass along. 55) D In this scenario, the football player is using a press conference to communicate his decision. Companies often call press conferences when they have significant news to announce, such as the introduction of a new product or advertising campaign. Sports teams use this tool to attract fan attention and interest when a new star is signed or an existing star resigns. Version 1

56) D Although most public relations efforts seek a variety of channels for distribution, an alternative strategy is to offer one particular medium exclusive rights to the story if that medium reaches a substantial number of people in the target audience. Offering an exclusive may enhance the likelihood of acceptance. 57) A This scenario is an illustration of community involvement. Many corporations enhance their public image through involvement in the local community. This involvement may take many forms, including membership in local organizations and contributions to or participation in community events. 58) C Companies use their websites to address issues, as well as to provide information about products and services, archive press releases, link to other articles and sites, and provide lists of activities and events. 59) D Since they are typically perceived as news items, public relations messages are not subject to the clutter of ads. 60) B In both absolute and relative terms, the cost of public relations is very low, especially when the possible effects are considered. 61) D Information about technological innovations, medical breakthroughs, and the like results almost immediately in a multitude of inquiries. These inquiries may give the firm some quality sales leads. 62) B Version 1

In both absolute and relative terms, the cost of public relations is very low, especially when the possible effects are considered. 63) A For smaller companies, public relations is the most affordable form of communication available. 64) D Information about technological innovations, medical breakthroughs, and the like results almost immediately in a multitude of inquiries. These inquiries may give the firm some quality sales leads. 65) D Public relations may misfire through mismanagement and a lack of coordination with the marketing department. 66) D In a review of emerging models for measuring public relations effectiveness, Amit Jain concluded that traditional methods no longer work. Jain notes that as digital becomes more and more of the public relations process, new criteria need to be added to previous measures, and new models must be developed. 67) A Mark Weiner, in discussing measures of effectiveness of MPRs, suggests using media content analysis, survey research, and marketingmix modeling. 68) E Media content analysis helps in systematically and objectively identifying the characteristics of messages that are broadcasted and analyzing the content to determine trends and perceptions relevant to a product or brand. Version 1

69) C Marketing-mix modeling deals with drawing data from multiple sources and integrating them to provide insight into the process. 70) E One advantage that the evaluation of PR activity offers is that it gives management a way to judge the quality of public relations achievements and activities. 71) B One of the methods for measuring the effectiveness of PR (as suggested by Mark Weiner) is survey research that deals with quantitatively assessing consumers’ attitudes toward the product or brand. 72) D Publicity refers to the generation of news about a person, product, or service that appears in broadcast or print media. 73) B The article is an example of negative publicity. Publicity refers to the generation of news about a person, product, or service that appears in broadcast or print media. Publicity is not always positive and is not always under the control of, or paid for by, an organization. Both positive and negative publicity often originate from sources other than the firm. 74) C Unlike advertising and sales promotions, publicity is not usually perceived as being sponsored by the company (in negative instances, it never is). 75) C

Version 1

One reason for publicity’s power is its news value and the frequency of exposure it generates. 76) B One of the factors that most sets off publicity from the other program elements is the sheer power this form of communication can generate. Publicity can make or break a product or even a company. 77) D One of the factors that most sets off publicity from the other program elements is the sheer power this form of communication can generate. Publicity can make or break a product or even a company. 78) C Publicity is highly credible. Unlike advertising and sales promotions, publicity is not usually perceived as being sponsored by the company (in negative instances, it never is). So consumers perceive this information as more objective and place more confidence in it. 79) B Publicity is the generation of news about a person, product, or service that appears in broadcast or print media. Publicity can be managed like any other promotional tool. 80) A Marketers like to have as much control as possible over the time and place where information is released. One way to do this is with a video news release (VNR), a publicity piece produced by publicists so that stations can air it as a news story. 81) D

Version 1

If the report is actually funded by the company, the given scenario would then be an example of a video news release. Marketers like to have as much control as possible over the time and place where information is released. One way to do this is with a video news release (VNR), a publicity piece produced by publicists so that stations can air it as a news story. 82) D Marketers like to have as much control as possible over the time and place where information is released. One way to do this is with a video news release (VNR), a publicity piece produced by publicists so that stations can air it as a news story. 83) D Marketers like to have as much control as possible over the time and place where information is released. One way to do this is with a video news release (VNR), a publicity piece produced by publicists so that stations can air it as a news story. 84) E Publicity offers the advantages of credibility, news value, significant word-of-mouth communications, and a perception of being endorsed by the media. 85) E Timing of the publicity is not always completely under the control of the marketer. Unless the press thinks the information has very high news value, the timing of the press release is entirely up to the media—if it gets released at all. 86) D

Version 1

Information generated by publicity sometimes gets lost in translation; that is, it is not always reported the way the provider wishes it to be. As a result, inaccurate information, omissions, or other errors may result. 87) A The major problems that arise from the use of publicity are lack of control, timing, and accuracy. 88) D Cision Ltd. is a public relations and earned media software company and services provider assisting organizations in digital public relations. The Cision framework involves a communication funnel consisting of three levels: brand impact, digital impact, and bottom line. 89) C Actually an extension of the public relations function, corporate advertising does not promote any one specific product or service. 90) A Actually an extension of the public relations function, corporate advertising does not promote any one specific product or service. Rather, it is designed to promote a firm overall, by enhancing its image, assuming a position on a social issue or cause, or seeking direct involvement in something. 91) B Corporate advertising is a costly form of self-indulgence. Firms have been accused of engaging in corporate image advertising only to satisfy the egos of top management. 92) C

Version 1

An advantage associated with corporate image advertising is that it reaches a select target market. Corporate image advertising should not be targeted to the general public. It is often targeted to investors and managers of other firms rather than to the general public. It doesn’t matter if the general public does not appreciate this form of communication, as long as the target market does. 93) A One of the more controversial forms of advertising is corporate advertising. Actually an extension of the public relations function, corporate advertising does not promote any one specific product or service. Rather, it is designed to promote the firm overall by enhancing its image. 94) C Given that the ads do not directly appeal to anyone, are not understood, and do not promote anything specific, critics say the monies could be better spent in other areas. 95) A The ad is an illustration of corporate advertising. One of the more controversial forms of advertising is corporate advertising. Actually an extension of the public relations function, corporate advertising does not promote any one specific product or service. Rather, it is designed to promote the firm overall, by enhancing its image. 96) A Some critics believe the only time firms engage in corporate advertising is when they are in trouble—either in a financial sense or in the public eye—and are advertising to attempt to remedy the problem. 97) B

Version 1

Corporate advertising does not promote any one specific product or service. Rather, it is designed to promote the firm overall, by enhancing its image, assuming a position on a social issue or cause, or seeking direct involvement in something. 98) D Firms have been accused of engaging in corporate image advertising only to satisfy the egos of top management. This argument stems from the fact that corporate ads are not easy to write. 99) D The term corporate advertising tends to be used as a catchall for any type of advertising run for the direct benefit of the corporation rather than its products or services. 100) E Corporate advertising may be designed with two goals in mind: (1) creating a positive image for the firm and (2) communicating the organization’s views on social, business, and environmental issues. 101) D While there is no concrete evidence that corporate image advertising leads directly to increased investment, many managers believe there is, and that there is a correlation between the price of stock and the amount of corporate advertising done. Firms that spend more on corporate advertising also tend to have higher-priced stocks, though a direct relationship is very difficult to substantiate. 102) B Corporate image advertising should not be targeted to the general public. It is often targeted to investors and managers of other firms rather than to the general public.

Version 1

103) D There is no strong evidence to support the belief that corporate advertising works. 104) A Attitude surveys and focus group research help in measuring the effectiveness of corporate advertising. 105) B Attitude surveys and focus group research help in measuring the effectiveness of corporate advertising. 106) C 107) C General image or positioning ads and sponsorships are examples of image advertising. Image advertising is a form of corporate advertising. 108) C Image advertising is one form of corporate advertising devoted to promoting an organization’s overall image. 109) C This scenario illustrates a general positioning ad. General image or positioning ads are often designed to create an image of the firm in the public mind. 110) B In this scenario, Grand Thornton is using corporate image advertising designed to attract new employees. 111) D This scenario is an illustration of general positioning ads. General image or positioning ads are often designed to create an image of the firm in the public mind. Version 1

112) A Alstone Mobile is engaging in positioning advertising. General image or positioning ads are often designed to create an image of the firm in the public mind. 113) B This scenario is an example of image advertising. Firms often run corporate image advertising on TV programs or specials. For example, on the National Geographic Channel, a number of companies including Nikon, American Airlines, and others provide sponsorships to associate themselves with the quality programming shown. 114) A Companies are finding event sponsorships an excellent platform from which to build equity and gain affinity with target audiences as well as a good public relations tool. 115) A Companies are finding event sponsorships an excellent platform from which to build equity and gain affinity with target audiences as well as a good public relations tool. 116) C Advocacy advertising is a major form of corporate advertising that addresses social, business, or environmental issues. 117) A While still portraying an image for a company or organization, advocacy advertising does so indirectly, by adopting a position on a particular issue rather than promoting the organization itself. 118) A

Version 1

Advocacy advertising is concerned with propagating ideas and elucidating controversial social issues of public importance in a manner that supports the interests of a sponsor. 119) E This ad is an illustration of advocacy advertising. Advocacy advertising is concerned with propagating ideas and elucidating controversial social issues of public importance in a manner that supports the interests of a sponsor. 120) A Advocacy advertising is concerned with propagating ideas and elucidating controversial social issues of public importance in a manner that supports the interests of a sponsor. 121) A This scenario is an example of an advocacy advertisement. Advocacy advertising is concerned with propagating ideas and elucidating controversial social issues of public importance in a manner that supports the interests of a sponsor. 122) A This ad is an example of an advocacy advertisement. Advocacy advertising is concerned with propagating ideas and elucidating controversial social issues of public importance in a manner that supports the interests of a sponsor. 123) B Advocacy ads may be sponsored by a firm or by a trade association and are designed to tell readers how a firm operates or explain management’s position on a particular issue. 124) D Version 1

While considered a form of advocacy advertising, issue ads may have no affiliation with a corporate or trade sponsor but may be sponsored by an organization to bring attention to what they consider to be an important issue. 125) E This ad is an example of issue advertising. While considered a form of advocacy advertising, issue ads may have no affiliation with a corporate or trade sponsor but may be sponsored by an organization to bring attention to what they consider to be an important issue. 126) A An increasingly popular method of image building is cause-related marketing, in which companies link with charities or nonprofit organizations as contributing sponsors. 127) C An increasingly popular method of image building is cause-related marketing, in which companies link with charities or nonprofit organizations as contributing sponsors. 128) A Cause-marketing relationships can take a variety of forms. Making outright donations to a nonprofit cause, having companies volunteer for the cause, donating materials or supplies, running public service announcements, or even providing event refreshments are some of the ways companies get involved. 129) B An increasingly popular method of image building is cause-related marketing, in which companies link with charities or nonprofit organizations as contributing sponsors.

Version 1

130) B An increasingly popular method of image building is cause-related marketing, in which companies link with charities or nonprofit organizations as contributing sponsors. Proponents of cause marketing say that association with a cause may differentiate one brand or store from another, increase consumer acceptance of price increases, generate favorable publicity, and even win over skeptical officials who may have an impact on the company. A number of studies have examined the effect of various elements of corporate advertising (position in the magazine, source effects, etc.) on stock prices. 131) A Advocacy advertising is concerned with propagating ideas and elucidating controversial social issues of public importance in a manner that supports the interests of the sponsor (addresses social, business, or environmental issues).

Version 1

CHAPTER 18 TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) Measuring the effects of advertising helps a firm maximize its investment. ⊚ ⊚

true false

2) One of the main reasons cited for measuring the effectiveness of a promotional program is that it is easy to isolate the effects of promotional elements. ⊚ ⊚

true false

3) Testing bias occurs when people scrutinize ads much more closely than they would in normal situations. ⊚ ⊚

true false

4) Tests of comprehension and reaction employ one standard procedure for measuring advertising effectiveness. ⊚ ⊚

true false

Testing of ads is required even after an ad and/or a campaign has been implemented. ⊚ ⊚

true false

6) While it is important that marketers’ attempts to measure effectiveness be guided by all of the principles of PACT, the research should be guided by a model of human response to communications that encompasses reception, comprehension, and behavioral response. ⊚ ⊚

Version 1

true false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 7) What does the Magazine Impact Research Service (MIRS) measure? A) online advertising recall B) print advertising recall C) radio advertising recall D) television advertising recall

Which of the following is the primary advantage of field tests? A) control of variables B) realism C) cost D) isolation of causes

Which of the following is a commonly used method for concept testing? A) field testing B) laboratory testing C) focus group D) survey E) stakeholder interview

10) Which form of testing may measure the number of coupons returned, phone calls generated, or direct responses through reader cards?

Version 1

A) laboratory testing B) field testing C) inquiry testing D) comprehension testing

11) Studies have shown that ________ is a measure that the ad has been received, but not necessarily accepted, and is not predictive of sales. A) recall B) comprehension C) emotional response D) frequency

12)

Pretesting of ads is effective in terms of A) time. B) comprehensive feedback. C) cost. D) isolating variables.

13) Promotion Decisions Inc. examined the impact of freestanding inserts (FSIs) and found that ________ generated significant trial by new and lapsed users of the product. A) inquiries B) sweepstakes entries C) half-page ad D) coupons

14)

Marketers should assess advertising effectiveness measures in order to

Version 1

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 supports middlemen. E) ensure all kinds of promotional techniques are used.

15)

Which of the following is an argument against measuring advertising effectiveness? A) costs in terms of time and money B) lack of flexibility C) need for autonomy to those who control advertising D) lack of accountability E) decrease in advertising efficiency

16) Which of the following is a reason cited for not measuring the effectiveness of promotional campaigns? A) It is difficult to isolate the effects of promotional elements. B) It is not useful for evaluating alternative strategies. C) It typically increases economies of scale. D) It does not lead to an increase in the efficiency of advertising. E) It is impossible to determine if objectives are achieved.

17) One reason for not engaging in measuring effectiveness of promotional programs is a lack of time; however, this can be overcome A) by identifying source factors. B) with the help of Q scores. C) by creating familiarity sheets. D) by eliminating market segmentation elements. E) by determining the source of the problem.

Version 1

18)

The “vehicle option source effect” refers to the

A) different reach and frequency provided by different media vehicles. B) fact that people perceive ads differently depending on their context. C) responses that come from using a flighting, pulsing, or continuity scheduling strategy. D) opportunity costs of the various media vehicles that are not chosen. E) battle between budget constraints and creative options.

19) The ________ effect explains the different impact that the advertising exposure will have on the same audience member if the exposure occurs in one media option rather than another. A) halo B) primacy-recency C) stimulus-response D) vehicle option source E) vehicle media context

20) When Joanne saw a television ad for a large retail chain of jewelry stores, she was impressed with the money-back guarantee that the company offered on its jewelry. However, when she later heard an identical audio portion of the ad on the radio, she was unimpressed with the guarantee. This differing perception of ads as a result of the medium in which they appear is caused by the ________ effect. A) halo B) primacy-recency C) stimulus-response D) vehicle option source E) vehicle media context

21) In the context of evaluating media strategies to measure advertising effectiveness, owing to the increasing costs of media time, it is important to evaluate

Version 1

A) the duration of association between a company and its spokesperson. B) the value of customer juries. C) flighting versus pulsing or continuous schedules. D) whether or not to conduct posttesting. E) the readability of the print ad.

22)

________ are measures taken before an advertising campaign is implemented. A) Familiarity tests B) Pretests C) Recall tests D) Association measures E) Overlap tests

23)

________ occur after an ad or commercial has been in the field. A) Dummy advertising vehicles B) Posttests C) Consumer juries D) Portfolio tests E) Physiological measures

24) Which of the following is classified as a pretest field method for conducting research to measure advertising effectiveness? A) single-source system B) association measure C) on-air test D) comprehension and reaction test E) theater test

Version 1

25) Advertising testing methods such as association measures, tracking studies, and inquiry tests are examples of A) single-source real-world methods. B) posttest field methods. C) pretest laboratory methods. D) posttest laboratory methods. E) pretest field methods.

26)

Consumer juries and portfolio tests are examples of A) single-source real-world methods. B) posttest field methods. C) pretest laboratory methods. D) posttest laboratory methods. E) pretest field methods.

27) Which of the following is a pretest method for measuring advertising effectiveness that is conducted in a laboratory setting? A) recognition test B) single-source system C) association measure D) physiological measure E) inquiry test

28) Which of the following is a posttest method for measuring advertising effectiveness conducted in a field setting?

Version 1

A) readability test B) consumer jury C) portfolio test D) recognition test E) physiological measure

29) Which of the following is a posttest method used for measuring advertising effectiveness? A) concept tests B) portfolio tests C) recall tests D) physiological measures E) readability tests

30) Which of the following statements is true of pretesting that is used in measuring advertising effectiveness? A) Pretests occur only during the idea generation stage. B) The methodologies employed to conduct pretests vary. C) Only one type of pretest method can be used to measure advertising. D) Feedback for pretests is very expensive. E) Pretests are essentially conducted within restricted time schedules.

31)

One of the methodologies employed to conduct pretests is focus groups, in which A) the management of a company makes budgeting decisions. B) participants freely discuss the meanings they get from ads. C) concept testing takes place at the earliest development of ads. D) the management of a company determines the media strategies. E) different ads for similar products are compared.

Version 1

32)

One of 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) the ability to speed up the new product introduction process.

33)

Commercials and print ads undergo posttesting in order 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 an organization’s mission statement needs to be modified. E) locate new product ideas.

34)

Posttesting is designed to A) eliminate the problems associated with the primacy and recency effects. B) check the impact of positioning statements. C) serve as input into the next period’s situation analysis. D) determine what psychological factors will influence ad perception. E) avoid problems associated with selective perception.

35) The fact that people in a market research lab setting may scrutinize ads much more closely than they would at home is an example of

Version 1

A) a vision myopic perception. B) a testing bias. C) an environmental proclivity. D) a perceptual propensity. E) a myopic bias.

36) In ________ tests, people are brought to a particular location where they are shown ads and/or commercials, then testers ask questions about them or measure participants’ responses by other methods—for example, pupil dilation, eye tracking, or galvanic skin response. A) field B) ground C) laboratory D) closed E) recognition

37) The major advantage of the laboratory method of testing for advertisement effectiveness is the ________ it affords a researcher. A) control B) external validity C) realism D) generalization E) lack of bias

38)

Disadvantages associated with laboratory tests include A) lack of control of environmental variables. B) lack of realism leading to a testing bias. C) the expense associated with collecting feedback information. D) a loss of specificity. E) the elimination of competitive intelligence gathering opportunities.

Version 1

39) One major disadvantage of laboratory tests is the lack of realism, and perhaps the greatest effect of this lack of realism is A) high costs. B) a testing bias. C) limited control. D) distraction due to noise. E) perceptual propensity.

40) The primary difference between a laboratory test and a field test to measure advertising effectiveness is that in a field test, a researcher A) is unable to isolate causes of viewers’ evaluations. B) has the ability to achieve greater internal validity. C) has control of all independent variables. D) can eliminate bias. E) can create an illusion of reality.

41) ________ tests are tests of an ad or commercial under natural viewing situations, complete with the realism of noise, distractions, and the comforts of home. A) Concept B) Readability C) Rough D) Field E) Portfolio

42)

An advantage offered by field tests to measure advertising effectiveness is the

Version 1

A) greater control of synergistic forces. B) availability of realistic testing conditions. C) ability to avoid competitive intelligence gathering. D) low cost compared to other measurement tools. E) ability to isolate the causes of viewers’ evaluations.

43)

In a field test, a firm A) makes a final assessment of an ad before committing any money to media. B) takes into account the effects of repetition and program content. C) does not conduct tests with the realism of noise, distractions, and the comforts of

home. D) obtains quick and inexpensive feedback about an ad’s impact. E) sacrifices realism in order to gain more control.

44) The set of principles adopted by large advertising agencies to improve preparation and testing of ads is referred to as 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).

45) ________ is defined as research “that is undertaken when a decision is to be made about whether advertising should run in the marketplace.” A) Concept testing B) Copy testing C) Observational research D) Market testing E) Posttesting

Version 1

46) is to

According to Positioning Advertising Copy Testing (PACT), the purpose of copy testing

A) use a single measurement to adequately assess ad performance. B) aid in the judgment of specific advertising executions. C) isolate causes of viewers’ evaluations of ads. D) eliminate the use of controls to avoid the biasing effects of an exposure context. E) isolate each contributing factor of an ad performance.

47) The principles of Positioning Advertising Copy Testing (PACT) state that a good copy testing system will A) use a single measure of a single dependent variable to ensure clarity of interpretation. B) provide measurements that are relevant to the objectives of advertising. C) evaluate responses to the advertising at a single level of the hierarchy of effects. D) test alternative executions at various stages of completion. E) measure needs satisfaction levels proposed by each advertisement under consideration.

48) Which of the following is one of the nine principles of Positioning Advertising Copy Testing (PACT)? A) Require agreement about how the results will be used in advance of each specific test. B) Adhere to the consideration that an advertising stimulus should be exposed only once. C) Provide controls to increase the biasing effects of an exposure context. D) Use a convenience sample. E) Provide a single unique measurement to adequately assess an ad’s performance.

49)

Which of the following statements is true of a focus group?

Version 1

A) Focus groups require quantitative analysis. B) This methodology is unattractive as results are typically unattainable. C) Focus group samples can be generalized to larger populations. D) Group influences tend to bias participants’ responses. E) The results of focus groups are typically quantifiable.

50) ________ is conducted very early in a campaign development process in order to explore the targeted consumer’s response to a potential ad or campaign or have a consumer evaluate advertising alternatives. A) Posttesting B) Concept testing C) Recognition testing D) Copy testing E) Recall testing

51) A manufacturer of computer game software could use which methodology to test concepts to create an ad to appeal to preteens? A) split-run test B) storyboard C) Delphi technique D) computer simulation E) focus group

52)

One of the weaknesses associated with a focus group research is that the results are A) inaccurate. B) difficult to obtain. C) not directly observable. D) not immediate. E) not quantifiable.

Version 1

53)

Which of the following is a weakness associated with a focus group research? A) The results are not directly observable. B) The results are difficult to obtain. C) Consumers become instant “experts.” D) Consumers are hesitant to participate. E) Focus groups require quantitative analysis.

54) A way to gather consumers’ opinions of concepts is ________, where consumers in shopping centers are approached and asked to evaluate rough ads via questionnaires, rating scales, and/or rankings. A) laboratory testing B) Delphi groups C) focus groups D) mall intercepts E) consumer juries

55) Typically, most commercials on the television music channel Boom are created to be readily understood by twelfth graders. To measure the actual level of understanding of these commercials by twelfth graders, marketers can use A) recall and recognition tests. B) association measures. C) comprehension and reaction tests. D) tracking studies. E) physiological measures.

56) ________ tests are used in order to determine whether an ad or commercial conveys the meaning intended.

Version 1

A) Day-after recall B) Recognition C) Inquiry D) Comprehension E) Portfolio

57) The ________ is a technique used to evaluate the probable success of an ad by groups of individuals. The individuals are asked to rate a selection of layouts or copy versions presented in pasteups on separate sheets. A) tracking study B) day-after recall method C) comprehension and recognition test D) consumer jury method E) split-run test

58)

A rough commercial that is categorized as an animatic rough is likely to contain A) a succession of drawings. B) live motion. C) nonunion crews. D) minimal optics. E) a succession of photographs.

59) ________ is an early commercial test in which a succession of drawings and/or cartoons is shown to a receiver. A) Animatic rough testing B) Photomatic rough testing C) Live-action rough testing D) Finished commercial testing E) Single-source testing

Version 1

60) Which of the following is a disadvantage associated with the consumer jury method used to evaluate the probable success of an ad? A) It is influenced by the primacy effect. B) There is a lack of control over independent variables. C) The number of ads that can be evaluated is limited. D) It is an expensive methodology. E) It is highly prone to consumers’ subjectivity.

61) Jim, a participant in a research study, rated an ad as “good” since he liked the celebrity featured in the ad. However, experts criticized the ad for being senseless and lacking realism. In this scenario, Jim experienced the A) halo effect. B) recency effect. C) stimulus-response effect. D) visual option source effect. E) similarity effect.

62) Sometimes participants rate an ad good on all characteristics because they like a few and overlook specific weaknesses. This tendency, called the ________ effect, distorts the ratings and defeats the ability to control for specific components. A) halo B) recency C) stimulus-response D) visual option source E) contextual

63)

One of the flaws associated with the consumer jury method of pretesting an ad is the

Version 1

A) high cost of making the required changes. B) potential for ad erosion. C) potential for the halo effect. D) groupthink phenomenon. E) lack of control by researchers.

64) ________ are a laboratory methodology designed to expose a group of respondents to a system consisting of both control and test ads. A) Controlled tests B) Portfolio tests C) Dummy tests D) Unstructured focus groups E) Field tests

65)

The portfolio test for ads assumes that A) ads that yield the highest recall are the most effective. B) reliability and validity are the most important parts of the testing process. C) a 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 difference between an animatic rough and a photomatic rough.

66)

One way to determine the validity of the portfolio method is to A) compare the psychological measures used in print and broadcast methods. B) ask consumer juries to rate a selection of layouts presented in pasteups on separate

sheets. C) correlate its results with readership scores once an ad is placed in a field. D) use the order of merit or paired comparison methods. E) use the Flesch formula to assess readability of ad copy.

Version 1

67) ________ is a readability test that determines 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

68)

The results of readability tests indicate that a copy is best comprehended when A) sentences are long and descriptive. B) impersonal references are drawn. C) the words used have no connotations outside their dictionary definitions. D) the receiver is unknown. E) words are concrete and familiar.

69)

Which of the following sentences is true of readability tests?

A) The communications efficiency of a copy in a print ad can only be tested with reader interviews. B) This method uses the Delphi group formula. C) An advantage of the readability test is that the copies are not mechanical. D) To be effective, readability tests should be used only in conjunction with other pretesting methods. E) Readability tests are successful in consistently providing direct inputs from receivers.

70) ________ is a method for pretesting finished broadcast ads in which participants are invited to view pilots of proposed TV programs.

Version 1

A) Delphi marketing B) Portfolio testing C) Theater testing D) Flesch formula testing E) Field testing

71)

Which of the following statements is true of theater testing?

A) Theater testing is a popular field method of pretesting finished commercials. B) Theater testing is used to test animatic and photomatic roughs. C) The methods of theater testing operations vary, though all measure brand preference changes. D) One of the disadvantages of theater testing is that it fails to identify strong or weak commercials. E) Theater testing is typically considered to be “self-indulgent” by most critics.

72)

Which of the following statements is true of on-air tests of commercials? A) They do not possess the disadvantages associated with field testing. B) They often include single-source ad research. C) They work well only under controlled, artificial environments. D) They do not enable firms to identify weak commercials. E) They typically require a laboratory setting to measure effectiveness.

73)

The primary metric used in on-air testing method of pretesting finished broadcast ads is A) focus group results. B) portfolio analysis. C) recall. D) reaction. E) jury results.

Version 1

74) Pupillometrics, electrodermal response, and electroencephalographic measures are all forms of A) field posttests. B) rational measures of promotional success. C) portfolio tests used in association with single-source field tests. D) physiological measures of advertising effectiveness. E) focus group interaction measures.

75)

Physiological measures of advertising effectiveness A) are the most common methods for evaluating finished commercials in a laboratory

setting. B) indicate a receiver’s involuntary responses to ads. C) measure the effects of subliminal advertising. D) are only used for pretesting broadcast advertising. E) are neither valid nor reliable.

76) An advertising test that measures dilation or constriction of the eyes 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.

77)

Galvanic skin response is also known as

Version 1

A) electrodermal response. B) pupillometrics. C) dermal resolution. D) beta activity. E) alpha activity.

78) ________ measures the skin’s resistance to or conductance of a small amount of current passed between two electrodes. A) Electrodermal response B) Pupillometrics C) Dermal-electro resolution D) Electroencephalographic E) Cerebral response

79) ________ is a physiological measure of pretesting finished commercials in which viewers are asked to view an ad while a sensor aims a beam of infrared light at the eye. A) Pupillometrics B) Eye tracking C) Electrodermal response D) Alpha activity E) Eye lateralization

80) Sapid Inc. wished to test consumer reactions to its new ad campaign. A particular test included aiming a beam of infrared light at the viewer’s eye and the beam was programmed to follow the movement in the eye. This test was designed to show the exact spot of the ad the viewer is focusing on. Which physiological measure did Sapid use in this scenario?

Version 1

A) hemispheric eye lateralization B) gamma activity C) electrodermal response D) foveated eye imaging E) eye tracking

81)

One of the newest uses of eye tracking is to determine A) the effectiveness of websites, online ads, and e-mails. 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.

82) ________ measures determine 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) Cerebellum metric E) Cerebral response

83) One method of testing how consumers relate to an ad and process the information it contains is to measure ________, the degree of brain activation that occurs when they look at the ad. A) electrodermal response B) cerebral response C) beta activity D) alpha activity E) pupillometrics

Version 1

84) ________ distinguishes between alpha activity in the left and right sides of a brain and is used to determine how an ad is affecting the mental processes of the individual viewing it. A) Cerebral response testing B) Gamma activity C) Pupillometrics D) Beta activity E) Hemispheric lateralization

85) Brine Inc., a manufacturer of salt, places two different ads for Brine salt in alternate copies of the December 2016 issue of Kitchen Queen, a popular food magazine. One ad contains ideas extending the use of salt beyond the kitchen, and the other describes salt as “Flavor Savor.” In this scenario, Brine is conducting A) bipolar communications tests. B) split-run tests. C) single copy tests. D) Flesch tests. E) alpha activity tests.

86) ________ tests are complex methods of measuring advertising effectiveness through inquiries in which variations of an ad appear in different copies of the same newspaper or magazine. A) Recall B) Recognition C) Split-run D) Portfolio E) Comprehension

Version 1

87) Elite Motors Inc., an automaker, develops two new print ads targeted to women. One ad uses local scenes from around its Tennessee plant and emphasizes the “Made in America” aspect. The other ad uses a spokesperson and emphasizes the safety of the car. Which of the following types of ad effectiveness measures should Elite Motors use to test the more effective ad? A) split-run testing B) day-after recall C) consumer juries D) physiological measures E) portfolio tests

88)

A split-run test offered by some print media allows

A) half of an advertisement to be placed in the upper left-hand corner of a page and the other half in the lower right-hand corner. B) half of an advertisement to be placed on one page and the other half on the page facing it. C) an advertiser to put the same ad in two consecutive issues. D) alternate copies of the same issue to carry different versions of a message. E) an advertiser to buy 50 percent of the back-cover position in one issue.

89) Which of the following measures of advertising effectiveness through inquiries examines the effectiveness of a medium rather than an ad itself? A) running an ad in successive issues of the same medium B) running different ads in the same medium C) running the same ad in different media D) running variations of an ad in the same medium E) running variations of an ad in different copies of the same medium

90)

One of the major advantages of inquiry tests is that they are

Version 1

A) inexpensive to implement for measuring an ad’s effectiveness. B) very effective for comparing different versions of an ad or medium used. C) the most accurate measure of the creative aspects of an ad. D) a true measure of the attention-getting aspects of an ad. E) not subject to time constraints.

91)

________ is a posttest of print ads that is most closely associated with GfK-Starch. A) The recognition method B) Portfolio analysis C) Theater testing D) Inquiry testing E) A consumer jury

92) According to the Starch Ad Readership Report, the primary advantage offered by the recognition method of posttesting ads is A) the reliability of its recognition scores. B) true claims of recognition by participants in a test. C) the ability to judge specific aspects of an ad. D) lack of interviewer bias. E) the validity of the recognition scores.

93)

The four recognition scores generated by the Starch methodology are A) noting, brand-associated, read-most, and read-any. B) comprehension, retention, response, and brand-associated. C) noting, comprehension, seen-associated, and retention. D) readers per dollar, cost ratios, CPMs, and brand-associated. E) recognition, retention, comprehension, and readers per dollar.

Version 1

94) Which testing method should Axel Inc., a manufacturer of consumer electronics, employ to determine whether consumers remember its new advertising campaign slogan? A) physiological tests B) comprehension and reaction tests C) recall tests D) portfolio tests E) concept testing

95)

Which of the following statements is true of the recall method used in testing print ads? A) Recall tests are not affected by interviewer bias. B) Brand-associated scores are valuable measures of recall tests. C) Recall tests are useful when measuring an ad’s impact on memory. D) Recall tests are significantly different from pretests used in broadcast ads. E) Recall tests and recognition tests are synonymous.

96) The ________ was a technique of posttesting employed in the broadcasting industry for measuring advertising effectiveness. A) Starch recognition method B) Burke Day-After Recall test C) concept test D) consumer jury E) split-run test

97)

The day-after recall test would be the most appropriate measure of effectiveness for

Version 1

A) the back outside cover position of the May issue of a women’s magazine. B) a full-page ad in a trade journal aimed at the supermarket industry. C) a 30-second commercial promoting a baseball league on a cable channel. D) a direct mail containing details of products offered by a furniture manufacturer. E) an aerial ad by a leading fast-food chain.

98)

Which of the following is associated with the day-after recall test? A) eye-tracking test B) Burke test C) Flesch test D) galvanic skin response test E) bingo cards

99)

The major advantage of a day-after recall test is that it A) is cost efficient. B) offers unlimited samples. C) provides a realistic response profile. D) is highly secure. E) provides a uniform recall score for the same brand.

100) Purchase, intent, and frequency-of-purchase criteria are a part of ________ used in posttesting of broadcast commercials. A) tracking studies B) persuasive measures C) alpha activity D) beta activity E) portfolio analysis

Version 1

101) ________ measures are designed to garner viewers’ evaluations of ads, as well as how clearly a creative idea is understood and how well a proposition is communicated. A) Persuasive B) Diagnostic C) Alpha D) Beta E) Portfolio analysis

102)

Which of the following statements is true of test marketing?

A) It is used to test advertising effects in specific target areas. B) The disadvantage of test marketing of ads is its unrealism. C) A high degree of control cannot be obtained through test marketing. D) It measures effectiveness while the ads are being run. E) It favors unemotional appeals because respondents are asked to verbalize the message.

103) ________ is a posttest method used for broadcast commercials that traces the behaviors of consumers from a television set to a supermarket checkout counter. A) Contextual testing B) The Starch test C) The Burke follow-up test D) Single-source tracking E) Bipolar tracking

104) ________ are used to measure an advertising campaign’s effectiveness at regular intervals.

Version 1

A) In-depth interviews B) Tracking studies C) Recognition tests D) Recall tests E) Consumer juries

105) ________ have been used to measure the effects of advertising on awareness, recall, interest, and attitudes toward an ad and/or brand as well as purchase intentions at regular intervals. A) In-depth interviews B) Tracking studies C) Recognition tests D) Recall tests E) Consumer juries

106) If a manufacturer of fast-moving consumer goods (FMCG) is interested in measuring consumers’ movement through the adoption hierarchy, which ad effectiveness measure should it employ? A) tracking studies B) day-after recall tests C) concept testing D) recognition test E) portfolio analysis

107)

Which of the following statements is true of ad tracking?

Version 1

A) It is typically not useful for measuring consumer purchase intentions. B) It is useful for measuring the effects of advertising on awareness. C) It is suitable only for broadcast ads. D) It cannot be applied to print ads. E) It must be used in conjunction with split-run tests.

108)

The major advantage of using a tracking study to measure ad effectiveness is A) its high level of efficiency. B) the ease of quantifying other measures. C) its ability to be tailored to each specific campaign. D) its timeliness and cost-effectiveness. E) the speed with which results can be gathered and tabulated.

109) Good tests of advertising effectiveness must address the nine principles established by Positioning Advertising Copy Testing (PACT). One of the easiest ways to accomplish this is by following a decision sequence model. The first step in the model is to A) understand the appropriate research. B) create a model that uses multiple measures. C) establish communication objectives. D) decide whether to use pretests or posttests. E) develop a consumer response model.

110) Geena is testing an ad using the nine principles established by Positioning Advertising Copy Testing (PACT). When she isolates mall intercept participants and does not disclose what the interviews are about, she is trying to adhere to the seventh principle, which is to

Version 1

A) provide controls to avoid the biasing effects of the exposure context. B) create a model that uses multiple measures. C) establish communication objectives. D) decide whether to use pretests or posttests. E) develop a consumer response model.

111) ________ can be classified as those that monitor the quantity and nature of the media coverage obtained for a sponsored event and those that estimate direct and indirect audiences. A) Recall tests B) Exposure methods C) Tracking measures D) Inquiry tests E) Recognition tests

112)

Which of the following statements is true of exposure methods? A) They are specifically designed to evaluate purchase intentions in specific markets. B) They are synonymous with recognition tests. C) They are used to evaluate preferences engendered by sponsorship. D) They are commonly employed by organizations. E) They are designed to evaluate awareness.

113)

The first step in measuring the effectiveness of event sponsorship is to A) set qualitative goals. B) build evaluation methods into the event 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.

Version 1

114) ________ measures are designed to evaluate the awareness, familiarity, and preferences engendered by sponsorship based on surveys. A) Association B) Physiological C) Tracking D) Single-source E) Portfolio

115) One of the primary goals of assessing the effectiveness of a sponsorship is determining how well it builds A) frequency. B) brand equity. C) free advertisement. D) logo recognition.

Version 1

Answer Key Test name: Chap 18_12e 1) TRUE Measuring the effects of advertising does not just save money. It also helps a firm maximize its investment. 2) FALSE A reason cited for not measuring effectiveness is that it is difficult to isolate the effects of promotional elements. Each variable in the marketing mix affects the success of a product or service. Because it is often difficult to measure the contribution of each marketing element directly, some managers become frustrated and decide not to test at all. 3) TRUE The major disadvantage of laboratory testing is the lack of realism. Perhaps the greatest effect of this lack of realism is a testing bias. When people are brought into a lab, they may scrutinize the ads much more closely than they would at home. 4) FALSE Tests of comprehension and reaction employ no one standard procedure. Personal interviews, group interviews, and focus groups have all been used for this purpose, and sample sizes vary according to the needs of the client; they typically range from 50 to 200 respondents. 5) TRUE The fact that an ad and/or campaign has been implemented does not mean there is no longer a need for testing. 6) TRUE

Version 1

While it is important that marketers’ attempts to measure effectiveness be guided by all of the principles stated, the research should be guided by a model of human response to communications that encompasses reception, comprehension, and behavioral response. A problem with digital metrics is that they often don’t provide insights into the consumer response processes because the measures are behavioral and provide no insights into the emotional side. An effective measure must include some relationship to the communication process. 7) B Several tests measure recall of print ads. Perhaps the best known of these are the Ipsos-ASI Next*Correct test and the Gallup & Robinson Magazine Impact Research Service (MIRS). 8) B Field tests are tests of an ad or commercial under natural viewing situations, complete with the realism of noise, distractions, and the comforts of home. 9) C One of the more commonly used methods for concept testing is focus groups, which usually consist of 8 to 10 people in the target market for the product. 10) C Used in both consumer and business-to-business market testing, inquiry tests are designed to measure advertising effectiveness on the basis of inquiries generated from ads appearing in various print media, often referred to as “bingo cards.” 11) A Studies have shown that recall is a measure that the ad has been received, but not necessarily accepted, and not predictive of sales. Version 1

12) C From a cost standpoint—both actual cost outlays and opportunity costs—pretesting makes sense. 13) D FSI coupons generated significant trial by new and lapsed users of a product (53 percent). 14) C Research should address whether a strategy delivers the stated objectives and how appropriate the measures used to make this assessment are. 15) A Perhaps the most commonly cited reason for not testing the effectiveness of advertising and promotions strategies (particularly among smaller firms) is the expense. Good research can be expensive, in terms of both time and money. 16) A A reason cited for not measuring effectiveness is that it is difficult to isolate the effects of promotional elements. Each variable in the marketing mix affects the success of a product or service. Because it is often difficult to measure the contribution of each marketing element directly, some managers become frustrated and decide not to test at all. 17) E A reason for not testing effectiveness of promotional programs is a lack of time. Managers believe they already have too much to do and just can’t get around to testing, and they don’t want to wait to get the message out because they might miss the window of opportunity. Planning might be the solution to the first problem. Although many managers are overworked and time poor, research is just too important to skip. Version 1

18) B The vehicle option source effect is “the differential impact that the advertising exposure will have on the same audience member if the exposure occurs in one media option rather than another.” People perceive ads differently depending on their context. 19) D The vehicle option source effect is “the differential impact that the advertising exposure will have on the same audience member if the exposure occurs in one media option rather than another.” People perceive ads differently depending on their context. 20) D This above is an example of the vehicle option source effect. The vehicle option source effect is “the differential impact that the advertising exposure will have on the same audience member if the exposure occurs in one media option rather than another.” People perceive ads differently depending on their context. 21) C A factor to consider in media decisions involves scheduling. The evaluation of flighting versus pulsing or continuous schedules is important, particularly given the increasing costs of media time. 22) B Pretests are measures taken before a campaign is implemented; posttests occur after an ad or commercial has been in the field. 23) B Pretests are measures taken before a campaign is implemented; posttests occur after an ad or commercial has been in the field. 24) C Version 1

On-air tests are classified as a pretest field method for conducting research to measure advertising effectiveness. 25) B Advertising testing methods such as association measures, tracking studies, and inquiry tests are examples of posttest field methods. 26) C Consumer juries and portfolio tests are examples of laboratory pretest methods. 27) D Physiological measure is a pretest method for measuring advertising effectiveness that is conducted in a laboratory setting. 28) D Recognition tests are a posttest method for measuring advertising effectiveness that is conducted in a field setting. 29) C Recall tests are a posttest method used for measuring advertising effectiveness. 30) B The methodologies employed to conduct pretests vary. 31) B In focus groups, participants freely discuss the meanings they get from ads, consider the relative advantages of alternatives, and even suggest improvements or additional themes. 32) D The advantage of pretesting is that feedback is relatively inexpensive. 33) C Version 1

Posttesting is designed to (1) determine if a campaign is accomplishing the objectives sought and (2) serve as input into the next period’s situation analysis. 34) C Posttesting is designed to (1) determine if a campaign is accomplishing the objectives sought and (2) serve as input into the next period’s situation analysis. 35) B Perhaps the greatest effect of lack of realism is a testing bias. When people are brought into a lab (even if it has been designed to look like a living room), they may scrutinize ads much more closely than they would at home. 36) C In laboratory tests, people are brought to a particular location where they are shown ads and/or commercials. The testers either ask questions about them or measure participants’ responses by other methods—for example, pupil dilation, eye tracking, or galvanic skin response. 37) A The major advantage of the lab setting is the control it affords a researcher. 38) B The major disadvantage of the lab setting is the lack of realism. Perhaps the greatest effect of this lack of realism is a testing bias. 39) B The major disadvantage of laboratory tests is the lack of realism. Perhaps the greatest effect of this lack of realism is a testing bias. 40) A Version 1

The major disadvantage of field tests is the lack of control. It may be impossible to isolate causes of viewers’ evaluations. 41) D Field tests are tests of an ad or commercial under natural viewing situations, complete with the realism of noise, distractions, and the comforts of home. 42) B Field tests are tests of an ad or commercial under natural viewing situations, complete with the realism of noise, distractions, and the comforts of home. 43) B Field tests are tests of an ad or commercial under natural viewing situations, complete with the realism of noise, distractions, and the comforts of home. Field tests take into account the effects of repetition, program content, and even the presence of competitive messages. 44) A Twenty-one of the largest U.S. ad agencies have endorsed a set of principles aimed at “improving the research used in preparing and testing ads, providing a better creative product for clients, and controlling the cost of TV commercials.” This set of nine principles is called Positioning Advertising Copy Testing (PACT). 45) B Positioning Advertising Copy Testing (PACT) defines copy testing as research “that is undertaken when a decision is to be made about whether advertising should run in the marketplace. Whether this stage utilizes a single test or a combination of tests, its purpose is to aid in the judgment of specific advertising executions.”

Version 1

46) B Positioning Advertising Copy Testing (PACT) defines copy testing as research “that is undertaken when a decision is to be made about whether advertising should run in the marketplace. Whether this stage utilizes a single test or a combination of tests, its purpose is to aid in the judgment of specific advertising executions.” 47) B One of the nine principles of good copy testing is to provide measurements that are relevant to the objectives of advertising. 48) A One of the nine principles of good copy testing is to require agreement about how the results will be used in advance of each specific test. 49) D In focus groups, group influences typically tend to bias participants’ responses. 50) B Concept testing is conducted very early in a campaign development process in order to explore the targeted consumer’s response to a potential ad or campaign or have a consumer evaluate advertising alternatives. 51) E The manufacturer could use a focus group to create an ad that appeals to preteens. A commonly used method for concept testing is focus groups, which usually consist of 8 to 10 people in the target market for a product. 52) E

Version 1

One of the weaknesses associated with a focus group research is that the results are not quantifiable. 53) C One of the weaknesses associated with a focus group research is that consumers become instant “experts.” 54) D A way to gather consumers’ opinions of concepts is mall intercepts, where consumers in shopping malls are approached and asked to evaluate rough ads and/or copy. 55) C In this scenario, marketers can use comprehension and reaction tests to determine the level of ad comprehension among a group of people. One key concern for an advertiser is whether an ad or commercial conveys the meaning intended. The second concern is the reaction an ad generates. Comprehension and reaction tests are designed to assess these responses. 56) D One key concern for an advertiser is whether an ad or commercial conveys the meaning intended. The second concern is the reaction an ad generates. Comprehension and reaction tests are designed to assess these responses. 57) D The consumer jury method uses consumers representative of the target market to evaluate the probable success of an ad. Consumer juries may be asked to rate a selection of layouts or copy versions presented in pasteups on separate sheets. 58) A Version 1

An animatic rough may contain a succession of drawings, still frames, simulated movements, and rendered artworks. 59) A Animatic rough testing is an early commercial test in which a succession of drawings and/or cartoons is shown to a receiver. 60) C While the consumer jury method offers the advantages of control and cost effectiveness, serious flaws in the methodology limit its usefulness. The number of ads that can be evaluated is limited. 61) A This scenario is an example of the halo effect. Sometimes participants rate an ad good on all characteristics because they like a few and overlook specific weaknesses. This tendency, called the halo effect, distorts the ratings and defeats the ability to control for specific components. 62) A Sometimes participants rate an ad good on all characteristics because they like a few and overlook specific weaknesses. This tendency, called the halo effect, distorts the ratings and defeats the ability to control for specific components. 63) C One of the flaws associated with the consumer jury method of pretesting an ad is the potential for the halo effect. The halo effect distorts the ratings and defeats the ability to control for specific components. 64) B Portfolio tests are a laboratory methodology designed to expose a group of respondents to a portfolio consisting of both control and test ads. Version 1

65) A The portfolio test for ads assumes that ads that yield the highest recall are the most effective. 66) C One way to determine the validity of the portfolio method is to correlate its results with readership scores once an ad is placed in a field. 67) C Readability tests use the Flesch formula, named after its developer, Rudolph Flesch, to assess readability of a copy by determining the average number of syllables per 100 words. 68) E Readability test suggests that copy is best comprehended when sentences are short, words are concrete and familiar, and personal references are drawn. 69) D To be effective, readability tests should be used only in conjunction with other pretesting methods. 70) C In the past, one of the most popular laboratory methods for pretesting finished commercials was theater testing. In theater tests, participants are invited to view pilots of proposed TV programs. 71) C The methods of theater testing operations vary, though all measure brand preference changes. For example, many of the services now use programs with commercials embedded for viewing in one’s home or office rather than in a theater. 72) B Version 1

Some of the firms conducting theater tests also insert commercials into actual TV programs in certain test markets. Typically, the commercials are in finished form, although the testing of ads earlier in the developmental process is becoming more common. This is referred to as an on-air test and often includes single-source ad research. 73) C The most commonly employed metric used in an on-air test is recall— that is, the number of persons able to recall an ad and/or its message. 74) D Physiological measures used to test both print and broadcast ads include pupil dilation, galvanic skin response, eye tracking, and brain waves. Pupillometrics, electrodermal response, and electroencephalographic measures are all forms of physiological measures of advertising effectiveness. 75) B Physiological measures indicate a receiver’s involuntary response to an ad, theoretically eliminating biases associated with the voluntary measures reviewed to this point. 76) E Research in pupillometrics is designed to measure dilation and constriction of the pupils of the eyes in response to stimuli. 77) A Also known as electrodermal response, galvanic skin response (GSR) measures the skin’s resistance or conductance to a small amount of current passed between two electrodes. 78) A

Version 1

Also known as electrodermal response, Galvanic skin response (GSR) measures the skin’s resistance to or conductance of a small amount of current passed between two electrodes. 79) B A methodology that is more commonly employed for pretesting finished commercials is eye tracking, in which viewers are asked to view an ad while a sensor aims a beam of infrared light at the eye. 80) E This scenario is an example of eye tracking. A methodology that is more commonly employed for pretesting finished commercials is eye tracking, in which viewers are asked to view an ad while a sensor aims a beam of infrared light at the eye. The beam follows the movement of the eye and shows the exact spot on which the viewer is focusing. It can identify the strengths and weaknesses in an ad. 81) A Eye tracking has increasingly been used to measure the effectiveness of websites, online ads, and e-mails. 82) C Electroencephalographic (EEG) measures can be taken from the skull to determine electrical frequencies in the brain. 83) D Electroencephalographic (EEG) measures can be taken from the skull to determine electrical frequencies in the brain. These electrical impulses are used in two areas of research, alpha waves and hemispheric lateralization. Alpha activity refers to the degree of brain activation. 84) E

Version 1

Hemispheric lateralization distinguishes between alpha activity in the left and right sides of a brain. 85) B This scenario is an example of a split-run test. Complex methods of measuring effectiveness through inquiries may involve running split-run tests, in which variations of an ad appear in different copies of the same newspaper or magazine. 86) C Complex methods of measuring effectiveness through inquiries may involve running split-run tests, in which variations of an ad appear in different copies of the same newspaper or magazine. 87) A Elite Motors should use split-run testing, in which variations of an ad appear in different copies of the same newspaper or magazine. 88) D In a split-run test, variations of an ad appear in different copies of the same newspaper or magazine. 89) C Complex methods of measuring effectiveness through inquiries may involve running the same ad in different media which measures the effectiveness of a medium rather than an ad itself. 90) A Major advantages of inquiry tests are that they are inexpensive to implement and they provide some feedback with respect to the general effectiveness of an ad or medium used. 91) A

Version 1

Perhaps the most common posttest of print ads is the recognition method, most closely associated with GfK-Starch. 92) C Starch claims that (1) the pulling power of various aspects of an ad can be assessed through the control offered, (2) the effectiveness of competitors’ ads can be compared through the norms provided, (3) alternative ad executions can be tested, and (4) readership scores are a useful indication of consumers’ involvement in an ad or campaign. Of these claims, perhaps the most valid is the ability to judge specific aspects of an ad. 93) A The measures used in the Starch methodology are noting score, brandassociated score, read-most score, and read-any score. 94) C In this scenario, Axel Inc. must use recall tests. Recall tests attempt to measure recall of specific ads and can assess an ad’s impact on memory. 95) C Recall tests attempt to measure recall of specific ads. Recall tests can assess an ad’s impact on memory. 96) B The most popular method of posttesting employed in the broadcasting industry for decades was the Burke Day-After Recall test. 97) C A day-after recall test would be the most appropriate measure of effectiveness for a 30-second commercial. The most popular method of posttesting employed in the broadcasting industry for decades was the Burke Day-After Recall test. Version 1

98) B While a number of companies offered day-after recall methodologies, the “Burke test” for all intents and purposes became the generic name attached to these tests. 99) C The major advantage of day-after recall tests is that they are field tests whose natural setting is supposed to provide a more realistic response profile. 100) B A number of research firms now offer measures of a commercial’s persuasive effectiveness day. Some of the services offer additional persuasion measures, including purchase, intent, and frequency-ofpurchase criteria. 101) B Diagnostic measures are designed to garner viewers’ evaluations of the ads, as well as how clearly a creative idea is understood and how well a proposition is communicated. 102) A Many companies conduct tests designed to measure their advertising effects in specific test markets before releasing them nationally. The markets chosen are representative of the target market. A variety of factors may be tested, including reactions to the ads, the effects of various budget sizes, or special offers. The ads run in finished form in the media where they might normally appear, and effectiveness is measured after the ads run. 103) D

Version 1

Single-source tracking methods track the behaviors of consumers from a television set to a supermarket checkout counter in response to commercials. 104) B One of the useful and adaptable forms of posttesting involves tracking the effects of an ad campaign by taking measurements at regular intervals. Tracking studies have been used to measure the effects of advertising on awareness, recall, interest, and attitudes toward the ad and/or brand as well as purchase intentions. 105) B Tracking studies have been used to measure the effects of advertising on awareness, recall, interest, and attitudes toward an ad and/or brand as well as purchase intentions. 106) A In this scenario, a tracking study would be useful for measuring movement through the adoption hierarchy. Tracking studies have been used to measure the effects of advertising on awareness, recall, interest, and attitudes toward an ad and/or brand as well as purchase intentions. 107) B Tracking studies have been used to measure the effects of advertising on awareness, recall, interest, and attitudes toward an ad and/or brand as well as purchase intentions. 108) C The major advantage of tracking studies is that they can be tailored to each specific campaign and/or situation. A standard set of questions can track effects of a campaign over time or through the consumer purchase funnel.

Version 1

109) C Good tests of advertising effectiveness must address the nine principles established by PACT. One of the easiest ways to accomplish this is by following a decision sequence model in formulating promotional plans. The first step in the model is to establish communication objectives. 110) A Good tests of advertising effectiveness must address the nine principles established by PACT. One of the easiest ways to accomplish this is by following a decision sequence model in formulating promotional plans. The seventh step in the model is provide controls to avoid the biasing effects of the exposure context. 111) B Exposure methods can be classified as those that monitor the quantity and nature of the media coverage obtained for a sponsored event and those that estimate direct and indirect audiences. 112) D Exposure methods can be classified as those that monitor the quantity and nature of the media coverage obtained for a sponsored event and those that estimate direct and indirect audiences. While commonly employed by corporations, scholars have heavily criticized these measures. 113) C The first step in measuring the effectiveness of event sponsorship is to narrowly define the objectives for the event with specific details. 114) C Tracking measures are designed to evaluate the awareness, familiarity, and preferences engendered by sponsorship based on surveys.

Version 1

115) B As noted by John Nardone and Ed See, most marketers limit their sponsorship evaluations to brand awareness and impressions. The key question that needs to be asked, they say, is “how do you do sponsorships that build brand equity and maintain financial responsibility?”

Version 1

CHAPTER 19 TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) International markets are important to small and midsize companies as well as to large multinational corporations. ⊚ ⊚

true false

2) Due to faster communication, transportation, and financial transactions, time and distance have increased barriers to global marketing. ⊚ ⊚

true false

3) Demographic data can provide insight into the living standards and lifestyles in a particular country to help companies plan ad campaigns. ⊚ ⊚

true false

4) Product standardization is becoming increasingly important as a result of longer product life cycles. ⊚ ⊚

true false

5) Companies are consolidating their global advertising in an effort to increase cost efficiencies and gain greater leverage over their agencies. ⊚ ⊚

true false

6) Public relations activity in international markets is growing due to the proliferation of media.

Version 1

⊚ ⊚

true false

7) Consumer-oriented promotional tools such as sampling and high-value coupons are effective for introducing new products into the market. ⊚ ⊚

true false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 8) Which of the following factors is responsible for driving U.S. companies to focus on international markets? A) rapid population growth B) saturation in domestic markets for many products and services C) low competition from domestic companies D) low competition from foreign companies E) favorable marketing environment within the country

Domestic markets offer limited opportunities for expansion because of A) rapid population growth. B) unsaturated market conditions. C) intense competition from other companies. D) saturated markets in host countries. E) unfavorable marketing environments in foreign markets.

10) If not for globalization, most European companies would have been unable to compete with larger U.S. and Japanese companies because of

Version 1

A) their inability to operate global corporations. B) their inability to achieve economies of scale due to the small size of most European nations. C) the lack of education about international markets, resulting in limited exposure. D) the cultural differences prevailing amongst European nations, which make it difficult to achieve promotional program sustainability. E) the political and legal differences among European nations.

11) When the monetary value of a nation’s imports exceeds the monetary value of its exports, it is known as A) added value. B) international trade. C) balance-of-trade deficit. D) balance-of-payments surplus. E) value of exports.

12)

A balance-of-trade deficit exists when A) the monetary value of imports exceeds that of exports. B) economies of scale are not achievable. C) supply of imports exceeds the demand for them. D) the monetary value added by an exporting nation exceeds that added by an importing

nation. E) the monetary values of exports and imports are equal.

13) Since imports take a larger share of the domestic market for many products, it has become increasingly important for U.S. companies to

Version 1

A) take collective measures to be sustainable in the domestic market. B) allocate additional funds for publicity. C) adopt an international marketing orientation. D) invest heavily in import-oriented businesses. E) seek government aid to restrict further imports.

14) Which of the following elements are important parts of the marketing program of firms competing in the global marketplace? A) servicescape and visual merchandising B) publicity and public relations C) advertising and promotion D) direct marketing and personal selling E) direct selling and personal selling

15) ________ is the most visible as well as the most culture bound of a firm’s marketing functions. A) Pricing B) Promotion C) Product development D) Distribution E) Inventory management

16) Which of the following factors demands different creative and media strategies as well as changes in other elements of the advertising and promotional program for foreign markets? A) unlimited media options in various countries B) language variations from country to country C) similar buying behaviors of consumers around the world D) increase in the overall world literacy rate E) women’s empowerment throughout the world

Version 1

17) American companies are realizing that we are shifting from being an isolated, selfsufficient, national economy to being part of an interdependent A) political economy. B) industrial economy. C) foreign economy. D) domestic economy. E) global economy.

18) Which of the following is an example of a major macro-external environmental factor that a company must consider when analyzing the international marketing environment? A) economic factors B) product factors C) promotional factors D) pricing factors E) advertising factors

19) Which of the following factors is part of the economic environment of a foreign country that companies must consider while engaging in international marketing? A) moral standards B) values and ethics C) currency stability D) laws and regulations E) employment rate

20)

Which of the following is a cultural factor affecting international marketing?

Version 1

A) standards of living B) lifestyles C) distribution of wealth D) nationalism E) education levels

21)

________ is an example of a cultural factor that affects international marketing. A) Nationalism B) Occupation C) Income level D) Language E) Employment rate

22)

Which of the following is part of the demographic environment of a country? A) age distribution B) distribution of wealth C) lifestyles D) norms and customs E) exchange rates

23)

Which of the following is a component of the political/legal environment of a country? A) attitudes toward multinational companies B) ethics and moral standards C) stage of economic development D) norms, customs, and taboos E) employment rate and occupation distribution

Version 1

24) A country’s ________ indicate its present and future potential for consuming, since products and services can be sold only to countries where there is enough income to buy them. A) psychographic data B) economic conditions C) legal systems D) cultural systems E) government policies

25) For companies wishing to enter a new market, a country’s economic conditions indicate its ________, since products and services can be sold only to countries where there is enough income to buy them. A) population size and density B) consumer attitudes towards multinational companies C) cultural norms and values D) present and future potential for consuming E) population’s occupation distribution

26) The communications, transportation, financial, and distribution networks of a country are part of its A) political/legal environment. B) cultural environment. C) economic infrastructure. D) demographic environment. E) international interface.

27) Krypton, a developing nation, has a reputation for being unsuitable for conducting business in due to its poor communication and transportation systems. Its distribution networks are also underdeveloped. In this scenario, Krypton has a poor

Version 1

A) demographic environment. B) economic infrastructure. C) balance of payments. D) cultural system. E) advertising system.

28) Developed countries have the ________ infrastructure in terms of the communications, transportation, and distribution networks needed to conduct business effectively in these markets. A) demographic B) economic C) cultural D) political E) legal

29)

Which of the following is a reason for Brazil’s economic growth? A) emergence of the lower middle class B) limited political influence in business C) strict import restrictions D) reduction in population densities E) great population diversity

30) Swivel Inc., a manufacturer of consumer goods, markets its shampoo brand, Valerie, in several developing countries by making it available in single-use sachets. These sachets are sold through local shops in small towns and villages. In this scenario, Swivel is attempting to A) eliminate existing distribution networks. B) adapt its products for these markets. C) create diseconomies of scale. D) create market segmentation. E) diversify its product offerings.

Version 1

31) Factors such as income levels and distribution, age and occupation distribution of the population, household size, education, and employment rates are part of a country’s ________ characteristics. A) economic B) demographic C) cultural D) political/legal E) lifestyle

32) ________ data can provide insight into the living standards and lifestyles in a particular country to help companies plan ad campaigns. A) Economic B) Political C) Demographic D) Legal E) Social

33) Drum Inc., a manufacturer of musical instruments, is considering expanding into a foreign market. The company is collecting data relating to age, income distribution, and gender variations in the potential host country. In this scenario, Drum is collecting ________ information. A) economic B) demographic C) cultural D) political E) legal

34) ________ variables that marketers must consider include language, customs, tastes, attitudes, lifestyles, values, and ethical/moral standards.

Version 1

A) Demographic B) Economic C) Political D) Cultural E) Legal

35) Acacia Corp., a manufacturer of consumer electronics, encountered problems when it attempted to market instant cameras in Spain. Acacia found that Spanish consumers preferred having their film developed in the traditional format. Moreover, the company had failed to conduct a market research study about consumer customs, tastes, and attitudes in Spain. In this scenario, Acacia failed to study Spain’s ________ environment. A) demographic B) economic C) cultural D) political E) legal

36) Venus Inc., a manufacturer of canned meat, tried to market its canned beef products in India. Cows are considered sacred in many parts of the country, so beef consumption is limited. Since the company failed to consider this factor, its marketing strategy was a failure. This indicates that Venus Inc. did not understand the ________ environment in India. A) demographic B) economic C) cultural D) political E) legal

37)

Cultural variables marketers must consider include language, customs, tastes, and

Version 1

A) governmental regulations. B) laws. C) gender. D) age. E) values.

38) Saturn Inc., an American international fast-food chain, is setting up businesses across Southeast Asia. However, the company is facing problems associated with language diversity and differences in signs and symbols in these countries. To solve these problems effectively, Saturn Inc. should A) hire American managers. B) employ home country managers. C) hire local expertise. D) hire expatriate managers. E) employ a centralized HR system.

39)

Tastes, traditions, and customs are an important part of ________ considerations. A) economic B) demographic C) political D) cultural E) legal

40) International advertisers can best deal with problems arising from language diversity and differences in signs and symbols with the help of

Version 1

A) expat employees. B) research manuals. C) local expertise. D) government authority. E) language training.

41) ________ are beliefs and goals shared by members of a society regarding ideal end states of life and modes of conduct. A) Heuristics B) Work-life balance principles C) Corporate ethics D) Cultural values E) Demographic ideals

42) Carter Corp., a global retail chain, launches an ad campaign featuring supermodel Gemma Rush in several Middle Eastern countries. The television commercials featuring Gemma are not well received in most Middle Eastern countries due to their explicit visuals. Which of the following environmental factors has the company failed to consider in this scenario? A) economic B) demographic C) political D) cultural E) legal

43) ________ refers to the tendency of individuals to view their own group or society as the center of the universe.

Version 1

A) Monocentrism B) Nepotism C) Polycentrism D) Ethnocentrism E) Xenocentrism

44)

Which of the following statements is true of cultural values?

A) In today’s globalized market, cultural differences are negligible, thus enabling international advertisers to market their brands easily. B) Values and beliefs of a society can affect its receptivity to foreign products and services. C) Cultural values are personal values and are only applicable on an individual level. D) A highly ethnocentric culture will be extremely receptive to foreign products and services. E) Cultural values have no effect on the market or consumer behavior.

45) In the United States, promotions for Cavort Sports products emphasize individualism and independence. In Japan, however, the company had to change its message to one that focused on team values and cooperation due to the differing ________ in the two countries. A) demographics B) religious beliefs C) cultural values D) ethics E) lifestyles

46)

Which of the following statements is true of ethnocentrism?

Version 1

A) It refers to the receptive and heterogeneous attitude prevalent in a host country. B) It refers to people’s tendency to view their own group as the center of the universe. C) It is synonymous with the concept of xenocentrism. D) It is typically considered a negligible aspect of international marketing. E) It is synonymous with cultural relativism.

47) U.S. brands have become popular in many European and Asian countries. Marketers attribute the rising popularity of these U.S.-made products to A) the worldwide distribution of American music, films, and TV shows. B) the superior quality of their products. C) the low prices of the products. D) the centralized organizational approach adopted by most U.S. companies. E) the increasingly ethnocentric attitudes of consumers around the world.

48)

Values that are centered on ________ stress on loyalty and interpersonal relationships. A) ethnocentrism B) Confucianism C) the country-of-origin effect D) the halo effect E) xenocentrism

49)

Which of the following statements is true of Japan as an international market?

A) The Japanese place great emphasis on the individual. B) Japan is a typical example of a xenocentric society. C) The Japanese dislike ads that confront or disparage the competition. D) Unlike American societies, Japanese societies do not lay emphasis on social interdependence. E) Japan is considered one of the easiest countries in which to market consumer products.

Version 1

50)

Which of the following is a component of a country’s political/legal environment? A) cultural norms B) population density C) national sovereignty considerations D) values, religious beliefs, and traditions E) language and dialects

51) Since the European Union banned the use of food dyes in seafood, the market for salmon products has declined. People mistakenly believe that farm-bred salmon is naturally pink. However, salmon is an unappetizing gray color in its natural form. This is an example of how ________ factors can inadvertently hurt small businesses. A) economic B) demographic C) political/legal D) geographic E) infrastructure

52) Which of the following is/are a political/legal factor(s) that can affect various aspects of a company’s international advertising program? A) education and employment rates of the population B) a country’s financial and distribution networks C) the use of advertising material prepared outside a country D) the connotations of signs and symbols used in the company’s messages E) tastes, traditions, and customs of the population

53) ________ is a strategy of advertising in which certain banned products are indirectly advertised by labeling a nonbanned product with a familiar logo so as to develop brand image and easy recall.

Version 1

A) Aerial advertising B) Transit advertising C) Surrogate advertising D) Cross-selling E) Ethnocentric advertising

54) To circumvent the liquor advertising ban in India, CT Inc., the manufacturer of Bright Beer, introduced bottled water under the same brand. The company ran a series of ads promoting its bottled water carrying the “Bright Beer” brand name and hoped to build awareness. In this scenario, CT Inc. used A) buzz marketing. B) subliminal perception. C) aerial advertising. D) surrogate advertising. E) switch marketing.

55) ________ in production and distribution is one of the main advantages of global marketing and advertising. A) Cultural values B) Global marketing C) Pattern advertising D) Global advertising E) Economies of scale

56)

________ result(s) in greater marketing efficiency and lower production costs.

Version 1

A) Global marketing B) Globalization C) Product standardization D) Cultural values E) Economies of scale

57) It is extremely difficult to develop an effective universal approach to marketing and advertising due to differences in culture, market, and economic development; consumer needs and usage patterns; media availabilities; and A) legal restrictions. B) balance-of-trade deficits. C) economic infrastructures. D) localized advertising strategies. E) standardized advertising.

58)

The type of products best suited to worldwide appeal are A) consumables that can be replenished. B) first-time high-tech products. C) custom products that are often hard to find. D) a variety of unique, one-of-a-kind products. E) cultural artifact reproductions.

59) To avoid the problems of trying to translate words into dozens of languages for worldwide ad campaigns, brands or messages that can be adapted for a ________ are best suited. A) advertising appeal B) primacy appeal C) marketing appeal D) visual appeal E) cultural appeal

Version 1

60) A company gathering demographic data relating to a foreign market can use it to ascertain A) cultural values. B) norms and beliefs. C) market potential. D) economic prowess. E) legal stipulations.

61) ________ is a marketing approach that assumes that the needs satisfied by a product or service and the ways it is used are the same everywhere in the world, and therefore utilizes a common approach in all countries. A) Global marketing B) Complementary marketing C) Localized marketing D) Nationalized marketing E) Countertrading

62)

Product standardization results in A) higher production costs. B) lower design costs. C) lower marketing efficiency. D) increased competition. E) higher lead times.

63)

Which of the following is a problem associated with global marketing and advertising?

Version 1

A) difficulties in coordination and control of marketing and promotional programs B) differences in consumer needs and usage patterns C) difficulty in obtaining economies of scale in production and distribution D) higher advertising production costs E) greater inconsistency in international branding and/or corporate imaging

64)

Which of the following are best suited to worldwide appeal?

A) products that are steeped in a country’s cultural heritage B) high-tech products with a strong local touch C) products that appeal to a market segment with widely differing tastes, interests, needs, and values D) brands or messages that require translation into different languages E) products with a nationalistic flavor if the country has a reputation in the field

65) When Frito-Lay decided to move to a global campaign to connect worldwide fans with a consistent storyline, look, and feel from the Doritos brand, it created A) higher advertising production costs. B) longer lead times to introduce products into world markets. C) a consistent international brand image. D) more complex coordination of marketing and promotional programs. E) less-desirable economies in production and distribution.

66)

Global ad campaigns are appropriate for A) brands that play to domestic needs, values, and emotions. B) food- and clothing-related brands. C) translating advertising messages into dozens of languages. D) products that appeal to market segments with differing tastes. E) products without a nationalistic flavor.

Version 1

67) Products such as Swiss watches, Japanese automobiles, and French wine are automatically assumed to be superior to similar products from other countries because A) of the halo effect. B) they are perceived as high-quality products owing to their high prices. C) of the country-of-origin effect. D) they lend themselves to visual and image advertising. E) they appeal to a market segment with universally similar tastes, interests, needs, and values.

68) Products from countries with national reputations for quality and/or a distinctive image that can be used as the basis for global advertising capitalize on the A) cross-selling perception. B) country-of-origin effect. C) halo effect. D) placebo effect. E) Central Hudson test effect.

69) ________ refers to consumers’ general perceptions of the quality of products made in a given country. A) Cross-selling B) The country-of-origin effect C) The halo effect D) Global imaging E) The central Hudson test

70) ________ is a format where ads in a campaign follow the same basic approach but their themes, copy, and visual elements may be adjusted.

Version 1

A) Buzz advertising B) Local advertising C) Pattern advertising D) Formatted advertising E) Ad standardization

71) The ________ approach recognizes similar desires, goals, needs, and uses for products and services but tailors advertising to the local cultures and conditions in each market. A) “concentrated marketing” B) “think globally, act locally” C) localized D) domestic E) decentralized marketing

72) Fitness Fervor Inc. is a company that offers products and services that aid in weight loss and maintenance. It has achieved a 50 percent market share in the United States and intends to move into international markets. The company recognizes that it has to introduce dietary products and weight-loss measures on a country-by-country basis while maintaining its existing ad campaign and strategy. In this scenario, Fitness Fervor is using A) a localized advertising strategy. B) consistency advertising. C) a standardized formatting strategy. D) pattern advertising. E) undifferentiated marketing.

73) Biggest Balloons Inc. is a company that offers balloons for corporate use. It moved into a new international market with an advertising campaign that was designed specifically for the market. In this scenario, Biggest Balloons is using

Version 1

A) a localized advertising strategy. B) consistency advertising. C) a standardized formatting strategy. D) pattern advertising. E) undifferentiated marketing.

74) Which of the following statements is true of the “think globally, act locally” approach to international advertising? A) It is synonymous with the “one company, one advertising campaign” approach. B) It is also referred to as the “glocal” advertising strategy. C) It enables the head office to retain control of aspects such as slogans, themes, and copies. D) It offers limited autonomy to regional offices. E) It is essentially a form of xenocentric advertising.

75) When market and media conditions are similar from one country to another, many companies prefer ________ of their international advertising and promotion functions. A) consistency and centralization B) coordinated decentralization C) synchronized centralization D) corresponding decentralization E) complete centralization

76) When a company centralizes international advertising and promotion, all decision can be made the home office. Complete centralization is likely in several situations, one of which is when a company can use a ________ advertising strategy.

Version 1

A) combination B) pattern C) standardized D) domestic E) decentralized

77) Creative strategy development for international advertising is basically similar in process and procedure to that for a ________ advertising strategy. A) combination B) pattern C) standardized D) domestic E) decentralized

78)

International advertisers’ primary focus in international media has traditionally been A) television and radio. B) magazines and newspapers. C) television and journals. D) radio and newspapers. E) magazines and radio.

79) Readers of ________ are usually upscale, high-income individuals who are desirable target markets for many products and services. A) trade papers B) domestic magazines C) international publications D) local trade journals E) independent publications

Version 1

80)

A major development affecting broadcasting in Europe, Asia, and Latin America is A) global advertising. B) the country-of-origin effect. C) global marketing. D) direct broadcast by satellite (DBS). E) the privatization of media.

81) Companies prefer to ________ the international advertising and promotion function so that all decisions about agency selection, research, creative strategy and campaign development, media strategy, and budgeting are made at the firm’s home office. A) centralize B) decentralize C) localize D) globalize E) regionalize

82) Complete ________ of international advertising is likely when market and media conditions are similar from one country to another, when a company has only one or a few international agencies handling all of its advertising, when it can use standardized advertising, or when it desires a consistent image worldwide. A) localization B) globalization C) decentralization D) centralization E) regionalization

83) Miller Mechanics Inc., an American corporation, manufactures high-tech building automation systems. The company has decided to develop its advertising campaign programs and make all major strategy and budgeting decisions at the home office. Which approach is Miller Mechanics using for its international advertising? Version 1

A) a centralized organizational structure B) a regionalized organizational structure C) a combination structure D) a matrix structure E) a pattern structure

84) Jamel gives each of his managers, who are based in the local markets they oversee, decision-making authority over their ad agency selection, budget development, research, advertising themes, and media selection. What organizational structure is he using? A) a centralized organizational structure B) a globalized organizational structure C) a combination structure D) a decentralized organizational structure E) a pattern structure

85) In which of the following cases would centralization of the advertising function be a disadvantage? A) when an advertiser wants to maintain a consistent brand image across markets B) when an advertiser wants to keep control of its brand message and image C) when a product is categorized as a “high-technology product” with universal appeal D) when conditions in the various markets differ widely E) when a company wants to cut costs

86) Radical Inc., an international exporter, has adopted an advertising organizational structure in which each regional or local manager has the authority to make decisions regarding advertising and promotion. In this scenario, Radical is using a ________ organizational structure.

Version 1

A) centralized B) decentralized C) matrix D) pattern E) globalized

87) The ________ approach works well in small or unique markets where headquarters’ involvement is not worthwhile or advertising must be tailored to the local market. A) centralized B) decentralized C) pattern D) globalized E) matrix

88) For its international advertising, Lambert & Rios Corp., a global clothing company, uses an organizational approach in which the president of its global marketing division supervises the company’s marketing program in all the host countries but still provides autonomy to local and regional marketing directors. This is an example of a A) centralized approach. B) combination of pattern advertising and regional advertising. C) decentralized approach. D) combination of the centralized and decentralized approaches. E) matrix network.

89) At the initial stage of an international marketing campaign, many American companies prefer to use an international ad agency based in the United States with foreign offices in other countries because

Version 1

A) U.S. agencies are more creative than foreign agencies in terms of advertising concepts. B) U.S. agencies understand world markets better than foreign agencies do. C) U.S.-based agencies give an advertiser better control of the advertising process. D) U.S.-based agencies generally understand local markets better than agencies located in these countries. E) American culture is mostly used as a basis for understanding other cultures.

90)

Global marketers are consolidating their advertising with one agency A) to implement the philosophies of Theodore Levitt. B) to eliminate economies of scale. C) because the importance of cultural barriers has declined significantly. D) because agencies now have the ability to communicate globally. E) to easily distribute advertising costs among the various participating countries.

91) Which of the following statements is true of a company that consolidates with an agency for its advertising? A) Consolidation helps the company in achieving cost-efficiency. B) Consolidation helps the company in adapting its image for each country uniquely. C) Consolidation helps the company to project the multiple images it wants to portray. D) Consolidation enables the company to have multiple brand identities throughout the world. E) Consolidation lowers the company’s leverage over its agency.

92)

Which of the following is an advantage of using local agencies for each national market?

Version 1

A) It provides the local subsidiary with limited freedom. B) It improves morale in the host office. C) It enables marketers to hire the best talent in each market. D) It reduces diseconomies of scale. E) It is a highly cost-efficient method.

93) International companies moving toward global marketing and striving for a consistent corporate or brand image around the world should use A) a decentralized approach to advertising. B) an international agency. C) a pattern approach to advertising. D) a matrix approach. E) an “international boutique” system.

94)

Companies are consolidating their global advertising in an effort to A) create a dynamic global image. B) gain greater leverage over their agencies. C) reduce economies of scale. D) market products that are steeped in the cultural heritage of a country. E) counter resistance from the local population.

95)

The selection of an agency to handle a company’s international advertising depends on A) the type of marketing segmentation that the company is opting for. B) the company’s usage of advertising material that is prepared in the home country. C) the media that are permitted to be employed in foreign markets. D) the type of assistance it needs to meet its goals and objectives in foreign markets. E) the specific taxes that will be levied against advertising.

Version 1

96) Which of the following statements about making creative decisions for international advertising is true? A) The creative approach used in a company’s primary market typically transfers well to foreign markets. B) Creative strategy development for international advertising is basically similar in process and procedure to that for domestic advertising. C) Emotional appeals such as humor work well in virtually any country, irrespective of differences in cultural backgrounds and consumer perceptions. D) A product must be positioned similarly in each market, transcending dissimilarities in consumers’ usage patterns and habits. E) Localized advertising plays no role in making creative decisions for international advertising.

97) If advertisers use a ________, they should know that humorous advertising appeals are popular in the United Kingdom, but that German consumers do not respond well to them. A) global marketing strategy B) sales promotion tactic C) global public relations strategy D) localized advertising strategy E) centralized marketing strategy

98) When companies follow a ________ strategy, the creative team must determine what type of selling idea, ad appeal, and execution style will work in each market. A) global marketing B) pattern marketing C) global public relations D) localized advertising E) centralized marketing

99)

Which of the following statements is true of German advertising?

Version 1

A) German advertising primarily favors a fear-based approach. B) German advertising usually features arguments based on a product’s superiority. C) German advertising uses humorous appeals extensively. D) German advertising is typically not text heavy. E) German advertising typically avoids the use of rational appeals.

100) The growth of international sales promotion is attributable to the liberalization of trade, the rise of global brands, the spread of cable and satellite TV, and deregulation and A) global advertising. B) presence of a foreign multinational. C) global marketing. D) direct broadcast by satellite (DBS). E) privatization of media.

101) Public relations activities are needed to deal with local governments, media, trade associations, and the general public, any of which may feel threatened by A) global advertising. B) the presence of a foreign multinational. C) global marketing. D) direct broadcast by satellite (DBS). E) the privatization of media.

102)

Sales promotion is growing in international markets due to A) the deregulation and/or privatization of media. B) the reduction in the number of global brands. C) increased global literacy. D) the way news media responds to press releases. E) greater risks taken by marketers.

Version 1

103)

Unlike advertising, which can be conducted on a global basis, sales promotion A) must refrain from including sales contests in global markets. B) is unaffected by the rise of global brands. C) must be adapted to local markets. D) must adopt consolidation. E) is restricted to developed countries.

104) Which of the following statements is true of the use of advertising and sales promotion in international markets? A) Advertising can often be done on a global basis, while sales promotion must be adapted to local markets. B) Sales promotion as a localized strategy is applicable only for small firms that cannot create economies of scale. C) Advertising and sales promotion can be done either locally or globally with equal effectiveness. D) Sales promotion is most effective when done on a global basis. E) Advertising is subject to varying regulations in foreign markets, unlike sales promotion.

105)

Which of the following statements is true of international sales promotions?

A) In countries with low literacy rates, distributing coupons through print media is considered extremely effective. B) Sales promotion is the only marketing-mix element that is unaffected by the presence of legal restrictions and regulations. C) Free samples and demonstrations are widely used as effective promotional tools in developing countries. D) Sales promotions must be done on a global basis for legal reasons. E) The economic environment does not influence the use or choice of sales promotions.

Version 1

106) In many countries, sales promotion faces problems with distribution and retailers’ resistance to processing coupons, posting promotional displays, and dealing with premiums. These are sales promotion difficulties associated with the countries’ A) stages of economic development. B) market maturity. C) consumer perceptions. D) trade structures. E) legal regulations.

107)

Which of the following statements is true of public relations? A) It is typically considered to be a cheaper alternative to advertising. B) It is often used to deal with local media and governments. C) It typically creates a negative perception about the company among consumers. D) It is also known as publicity. E) It is synonymous with sales promotions.

108) ________ is the promotional function that deals with problems involving local governments, media, trade associations, and the people of the community. A) Advertising B) Marketing C) Personal selling D) Sales promotion E) Public relations

109)

Public relations activities are

Version 1

A) not effective for dealing with local or regional governments. B) not applicable on a global scale. C) used to communicate with the general community. D) usually expensive. E) a popular form of advertising.

110)

Which of the following statements is true of the international use of the Internet?

A) The Internet cannot be efficiently used with an IMC program in the global marketplace. B) Many companies hope word-of-mouth advertising will encourage greater use of the Internet. C) The Internet is an important IMC tool for both large and small companies around the world. D) Though English is the native language for only 8 percent of the world’s population, English is the language used in close to 20 percent of all e-commerce websites. E) During its formative years, the Internet was largely an Asian phenomenon.

Version 1

Answer Key Test name: Chap 19_12e 1) TRUE International markets are important to small and midsize companies as well as the large multinational corporations. 2) FALSE Due to faster communication, transportation, and financial transactions, time and distance are no longer barriers to global marketing. 3) TRUE Demographic data can provide insight into the living standards and lifestyles in a particular country to help companies plan ad campaigns. 4) FALSE Product standardization and global marketing enable companies to roll out products faster into world markets, which is becoming increasingly important as product life cycles become shorter and competition increases. 5) TRUE Companies are consolidating their global advertising in an effort to increase cost efficiencies and gain greater leverage over their agencies. 6) FALSE Sales promotion activity in international markets is growing due in part to the transfer of promotion concepts and techniques from country to country and in part to the proliferation of media. 7) TRUE

Version 1

To introduce a product to a country, consumer-oriented promotional tools such as sampling, high-value coupons, and cross-promotions with established products and brands are often effective. 8) B Companies are focusing on international markets for a number of reasons. Many companies in the United States and Western Europe recognize that their domestic markets offer them limited opportunities for expansion because of slow population growth, saturated markets, intense competition, and/or an unfavorable marketing environment. 9) C Companies are focusing on international markets for a number of reasons. Many companies in the United States and Western Europe recognize that their domestic markets offer them limited opportunities for expansion because of slow population growth, saturated markets, intense competition, and/or an unfavorable marketing environment. 10) B Most European nations are relatively small in size and without foreign markets would not have the economies of scale to compete against larger U.S. and Japanese companies. 11) C The United States has been running a continuing balance-of-trade deficit; the monetary value of its imports exceeds that of its exports. 12) A The United States has been running a continuing balance-of-trade deficit; the monetary value of its imports exceeds that of its exports. 13) C

Version 1

A reason it is increasingly important for U.S. companies to adopt an international marketing orientation is that imports are taking a larger and larger share of the domestic market for many products. 14) C Advertising and promotion are important parts of the marketing program of firms competing in the global marketplace. 15) B As one international marketing scholar notes: Promotion is the most visible as well as the most culture bound of the firm’s marketing functions. 16) B Companies that promote their products or services abroad face an unfamiliar marketing environment. Languages vary from country to country and even within a country, such as India or Switzerland. Such factors demand different creative and media strategies as well as changes in other elements of the advertising and promotional program for foreign markets. 17) E The U.S. has been running a balance-of-trade deficit, which means the monetary value of our imports exceeds that of our exports. American companies are realizing that we are shifting from being an isolated, selfsufficient, national economy to being part of an interdependent global economy. 18) A Just as with domestic marketing, companies engaging in international marketing must carefully analyze the major environmental factors of each market in which they compete, including economic, demographic, cultural, and political/legal variables. Version 1

19) C Currency stability is part of the economic environment of a foreign country that must be considered by companies while engaging in international marketing. 20) B The lifestyle of the people or nationals is a cultural factor affecting international environment. 21) D Language is a cultural factor that affects international marketing. 22) A Age distribution of the population is part of the demographic environment of a country. 23) A Attitudes toward multinational companies is a component of the political/legal environment of a country. 24) B A country’s economic conditions indicate its present and future potential for consuming, since products and services can be sold only to countries where there is enough income to buy them. 25) D A country’s economic conditions indicate its present and future potential for consuming, since products and services can be sold only to countries where there is enough income to buy them. 26) C Developed countries have the economic infrastructure in terms of the communications, transportation, financial, and distribution networks needed to conduct business in these markets effectively. Version 1

27) B In this scenario, Krypton is said to have a poor economic structure. Developed countries have the economic infrastructure in terms of the communications, transportation, financial, and distribution networks needed to conduct business in these markets effectively. By contrast, many developing countries lack purchasing power and have limited communications networks available to firms that want to promote their products or services to these markets. 28) B Developed countries have the economic infrastructure in terms of the communications, transportation, financial, and distribution networks needed to conduct business in these markets effectively. By contrast, many developing countries lack purchasing power and have limited communications networks available to firms that want to promote their products or services to these markets. 29) A Much of Brazil’s growth prior to the recent economic downturn has come from an emerging lower middle class that now represents nearly half of the company’s population. 30) B This scenario is an example of how a company can adapt its products for foreign markets. Many multinational companies are turning their attention to third-world countries where consumer markets are slowly emerging. Often, they adapt their products for these markets by making them available in single-use sachets that cost the equivalent of pennies rather than dollars and can be easily distributed and sold through the small kiosks found in rural villages. 31) B Version 1

Major demographic differences exist among countries as well as within them. Marketers must consider income levels and distribution, age and occupation distributions of the population, household size, education, and employment rates. 32) C Demographic data can provide insight into the living standards and lifestyles in a particular country to help companies plan ad campaigns. 33) B Drum Inc. is collecting demographic information. Major demographic differences exist among countries as well as within them. Marketers must consider income levels and distribution, age and occupation distributions of the population, household size, education, and employment rates. 34) D Cultural variables marketers must consider include language, customs, tastes, attitudes, lifestyles, values, and ethical/moral standards. 35) C In this scenario, Acacia Corp. failed to conduct a thorough study of Spain’s cultural environment. Cultural variables marketers must consider include language, customs, tastes, attitudes, lifestyles, values, and ethical/moral standards. Marketers must be sensitive not only in determining what products and services they can sell foreign cultures but also in communicating with them. 36) C

Version 1

In this scenario, Venus Inc. failed to conduct a thorough study of India’s cultural environment. Cultural variables marketers must consider include language, customs, tastes, attitudes, lifestyles, values, and ethical/moral standards. Marketers must be sensitive not only in determining what products and services they can sell foreign cultures but also in communicating with them. 37) E Cultural variables marketers must consider include language, customs, tastes, attitudes, lifestyles, values, and ethical/moral standards. 38) C Problems arising from language diversity and differences in signs and symbols can usually be best solved with the help of local expertise. Marketers should consult local employees or use an ad agency knowledgeable in the local language that can help verify that the advertiser is saying what it wants to say. 39) D Tastes, traditions, and customs are an important part of cultural considerations. The customs of a society affect what products and services it will buy and how they must be marketed. 40) C Problems arising from language diversity and differences in signs and symbols can usually be best solved with the help of local expertise. Marketers should consult local employees or use an ad agency knowledgeable in the local language that can help verify that the advertiser is saying what it wants to say. 41) D Cultural values are beliefs and goals shared by members of a society regarding ideal end states of life and modes of conduct. Version 1

42) D In this scenario, Carter Corp. failed to consider cultural factors. Tastes, traditions, and customs are an important part of cultural considerations. The customs of a society affect what products and services it will buy and how they must be marketed. Values and beliefs of a society can affect its members’ attitudes and receptivity toward foreign products and services. 43) D Values such as ethnocentrism, which refers to the tendency for individuals to view their own group or society as the center of the universe, or nationalism often affect the way consumers in various countries respond to foreign brands or even advertising messages. 44) B Cultural values are beliefs and goals shared by members of a society regarding ideal end states of life and modes of conduct. Values and beliefs of a society can affect its members’ attitudes and receptivity toward foreign products and services. 45) C In this scenario, Cavort Sports adapted its message to the host country’s cultural values. Cultural values are beliefs and goals shared by members of a society regarding ideal end states of life and modes of conduct. For example, cultural values in the United States place a major emphasis on individual activity and initiative, while many Asian societies stress cooperation and conformity to the group. 46) B Ethnocentrism refers to the tendency for individuals to view their own group or society as the center of the universe. 47) A Version 1

Marketers attribute the rising popularity of many U.S.-made products to the worldwide distribution of American music, films, and TV shows; the growth of the Internet; and the increase in travel to the United States. These factors have made consumers in foreign countries more familiar with American culture, values, and lifestyle. 48) B Chinese values are centered around Confucianism, which stresses loyalty and interpersonal relationships. 49) C The Japanese dislike ads that confront or disparage the competition and tend to prefer soft rather than hard sells. 50) C Regulations differ owing to economic and national sovereignty considerations, nationalistic and cultural factors, and the goal of protecting consumers not only from false or misleading advertising but, in some cases, from advertising in general. 51) C This scenario is an example of how political/legal factors can inadvertently hurt small businesses. Government regulations and restrictions can affect various aspects of a company’s advertising program, including the types of products that may be advertised, the content or creative approach that may be used, the use of foreign languages in ads, the use of advertising material prepared outside a country, and so on. 52) C

Version 1

The political and legal environment in a country is one of the most important factors influencing the advertising and promotional programs of international marketers. Government regulations and restrictions can affect various aspects of a company’s advertising program, including the use of advertising material prepared outside the country. 53) C The advertising of tobacco and liquor is banned in India, although many companies have tried to get around the ban by using what are known as “surrogate advertisements.” Instead of promoting tobacco and liquor products, these TV commercials and print ads market unrelated products that a company also happens to manufacture that carry the same brand name and allow them to build brand awareness. 54) D This scenario is an example of surrogate advertising. The advertising of tobacco and liquor is banned in India, although many companies have tried to get around the ban by using “surrogate advertisements.” Instead of promoting tobacco and liquor products, these TV commercials and print ads market unrelated products that a company also happens to manufacture that carry the same brand name and allow them to build brand awareness. 55) E One of the main advantages of global marketing and advertising is economies of scale in production and distribution. 56) C Product standardization results in lower design and production costs as well as greater marketing efficiency, which translate into lower prices for consumers. 57) A Version 1

Differences in culture, market, and economic development; consumer needs and usage patterns; media availabilities; and legal restrictions make it extremely difficult to develop an effective universal approach to marketing and advertising. 58) B High-tech products and new products coming to the world for the first time are best suited to worldwide appeal and not those steeped in the cultural heritage of a country. 59) D Brands or messages that can be adapted for a visual appeal are best suited for worldwide appeals. These avoid the problems of trying to translate words into dozens of languages. 60) C Marketers must consider income levels and distribution, age and occupation distributions of the population, household size, education, and employment rates. Demographic information can reveal the market potential of various foreign markets. 61) A In recent years, a great deal of attention has focused on the concept of global marketing, where a company uses a common marketing plan for all countries in which it operates, thus selling a product in essentially the same way everywhere in the world. 62) A Product standardization results in lower design and production costs as well as greater marketing efficiency, which translates into lower prices for consumers. 63) B Version 1

Opponents of the standardized global approach argue that very few products lend themselves to global advertising. Differences in culture, market, and economic development; consumer needs and usage patterns; media availabilities; and legal restrictions make it extremely difficult to develop an effective universal approach to marketing and advertising. 64) E Products with a nationalistic flavor, if the country has a reputation in the field, are well suited to worldwide appeal. 65) C Prior to the campaign, Doritos had a different look and feel across the 37 countries where the brand is sold; 25 packaging variations existed and different advertising approaches were used in various markets. Packaging for Doritos was standardized across all markets and the global campaign themed “For the Bold” was developed that included digital and television advertising, promotions on Facebook and Twitter, and sponsorship of concerts. 66) A Marketers recognize that emotions such as joy, sentiment, excitement, and pleasure are universal as are needs/values such as self-esteem, status, and achievement. Thus, it is common for global advertising campaigns to use emotional and image appeals. 67) C Products that come from countries with national reputations for quality and/or a distinctive image can be used as the basis for global advertising. Examples include Swiss watches, French wine, and German beer or automobiles. 68) B

Version 1

Products that come from countries with national reputations for quality and/or a distinctive image can be used as the basis for global advertising. These products capitalize on the country-of-origin effect, which refers to consumers’ general perceptions of quality for products made in a given country. 69) B The country-of-origin effect refers to consumers’ general perceptions of quality for products made in a given country. 70) C Many global marketers use a strategy called pattern advertising; their ads follow a basic approach, but themes, copy, and sometimes even visual elements are adapted to differences in local markets. 71) B The “think globally, act locally” approach recognizes similar desires, goals, needs, and uses for products and services but tailors advertising to the local cultures and conditions in each market. 72) D This scenario is an example of pattern advertising. Many global marketers use a strategy called pattern advertising; their ads follow a basic approach, but themes, copy, and sometimes even visual elements are adapted to differences in local markets. 73) A When a company develops an advertising campaign specifically for a particular country or market rather than using a global approach, it is called a localized advertising strategy. 74) B

Version 1

The “think globally, act locally” strategy has recently been referred to as the glocal advertising strategy—locally adapting a universally embraced core idea that will resonate in any market anywhere in the world. 75) E Complete centralization of international advertising and promotion functions is likely when market and media conditions are similar from one country to another. 76) C Complete centralization is likely when market and media conditions are similar from one country to another, when a company has only one or a few international agencies handling all of its advertising, when a company can use standardized advertising, or when it desires a consistent image worldwide. 77) D Creative strategy development for international advertising is basically similar in process and procedure to that for domestic advertising. 78) B The international advertiser can reach audiences in various countries through international media that have multimarket coverage. The primary focus of international media has traditionally been magazines and newspapers. 79) C International publications offer advertisers a way to reach large audiences on a regional or worldwide basis. Readers of these publications are usually upscale, high-income individuals who are desirable target markets for many products and services. 80) D Version 1

A major development affecting broadcasting in Europe, Asia, and Latin America is direct broadcast by satellite (DBS) to homes and communities equipped with small, low-cost receiving dishes. 81) A Many companies prefer to centralize the international advertising and promotion function so that all decisions about agency selection, research, creative strategy and campaign development, media strategy, and budgeting are made at the firm’s home office. 82) D Complete centralization is likely when market and media conditions are similar from one country to another, when a company has only one or a few international agencies handling all of its advertising, when a company can use standardized advertising, or when it desires a consistent image worldwide. 83) A This scenario is an example of a centralized organizational structure. Many companies prefer to centralize the international advertising and promotion function so that all decisions about agency selection, research, creative strategy and campaign development, media strategy, and budgeting are made at a firm’s home office. 84) D Under a decentralized organizational structure, marketing and advertising managers in each market have the authority to make their own advertising and promotional decisions. 85) D

Version 1

Many marketing and advertising managers in foreign markets oppose centralized control. They say the structure is too rigid and makes it difficult to adapt the advertising and promotional program to local needs and market conditions. 86) B Radical is using a decentralized organizational structure. Under a decentralized organizational structure, marketing and advertising managers in each market have the authority to make their own advertising and promotional decisions. 87) B Under a decentralized organizational structure, marketing and advertising managers in each market have the authority to make their own advertising and promotional decisions. The decentralized approach works well in small or unique markets. 88) D This scenario is an example of a combination of the centralized and decentralized approaches. While there is an increasing trend toward centralizing the international advertising function, many companies combine centralization and decentralization approaches. The home office, or headquarters, has the most control over advertising policy, guidelines, and operations in all markets. The international advertising manager works closely with local or regional marketing managers and personnel from the international agency (or agencies). 89) C Many American companies prefer to use a U.S.-based agency with foreign offices; this gives them greater control and convenience and also facilitates coordination of overseas advertising. 90) D Version 1

Companies are consolidating their global advertising in an effort to increase cost efficiencies and gain greater leverage over their agencies. A major reason for all of the account consolidation is that agencies now have the ability to communicate and manage globally. 91) A Companies are consolidating their global advertising in an effort to increase cost-efficiencies and gain greater leverage over their agencies. Consolidation can also lead to cost-efficiencies not only for creative but for media planning and buying as well. 92) C An alternative for the international marketer is to select a local agency for each national market in which it sells its products or services. Since local agencies often have the best understanding of the marketing and advertising environment in their country or region, they may be able to develop the most effective advertising. 93) B Several experts in international marketing and advertising advocate the use of international agencies by international companies, particularly those firms moving toward global marketing and striving for a consistent corporate or brand image around the world. 94) B Companies are consolidating their global advertising in an effort to increase cost efficiencies and gain greater leverage over their agencies. 95) D The selection of an agency to handle a company’s international advertising depends on how a firm is organized for international marketing and the type of assistance it needs to meet its goals and objectives in foreign markets. Version 1

96) B Creative strategy development for international advertising is basically similar in process and procedure to that for domestic advertising. 97) D When companies follow a localized advertising strategy, the creative team must determine what type of selling idea, ad appeal, and execution style will work in each market. 98) D When companies follow a localized advertising strategy, the creative team must determine what type of selling idea, ad appeal, and execution style will work in each market. 99) B While humorous appeals are popular in the United States and Britain, they are not used often in Germany, where consumers do not respond favorably to them. German advertising typically uses rational appeals that are text-heavy and contain arguments for a product’s superiority. 100) E The growth of sales promotion stems from the liberalization of trade, the rise of global brands, the spread of cable and satellite TV, and the deregulation and/or privatization of media. 101) B Public relations activities are needed to deal with local governments, media, trade associations, and the general public, any of which may feel threatened by the presence of a foreign multinational. 102) A

Version 1

The growth of sales promotion stems from the liberalization of trade, the rise of global brands, the spread of cable and satellite TV, and the deregulation and/or privatization of media. 103) C Unlike advertising, which can be done on a global basis, sales promotions must be adapted to local markets. 104) A Unlike advertising, which can be done on a global basis, sales promotions must be adapted to local markets. 105) C Free samples and demonstrations are widely used as effective promotional tools in developing countries. 106) D Retailers in many countries do not want to take time to process coupons, post promotional displays, or deal with premiums or packaging that require special handling or storage. This is due to the trade structures prevailing in those countries. 107) B Public relations activities are needed to deal with local governments, media, trade associations, and the general public, any of which may feel threatened by the presence of a foreign multinational. 108) E Public relations activities are needed to deal with local governments, media, trade associations, and the general public, any of which may feel threatened by the presence of a foreign multinational. 109) C

Version 1

Public relations activities are needed to deal with local governments, media, trade associations, and the general public, any of which may feel threatened by the presence of a foreign multinational. 110) C The Internet is coming of age as a global marketing medium and is becoming an important IMC tool for companies around the world, both large and small.

Version 1

CHAPTER 20 TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) Self-regulation and control of advertising emanate from individual advertisers and their agencies. ⊚ ⊚

true false

2) Self-regulation begins with the interaction of client and agency when creative ideas are generated and submitted for consideration. ⊚ ⊚

true false

3) Federal law requires that advertisers possess substantiation for their advertising claims before the claims are published. ⊚ ⊚

true false

4) In 2016, Facebook imposed a global ban on private gun sales on Facebook and Instagram, which is an example of self-regulation. ⊚ ⊚

true false

5) The Federal Trade Commission (FTC) is responsible for protecting businesses, but not consumers, from anticompetitive behavior and unfair and deceptive practices. ⊚ ⊚

true false

6) The Wheeler-Lea Act withdrew the Federal Trade Commission’s (FTC’s) power to regulate advertising.

Version 1

⊚ ⊚

true false

Trade-oriented promotions are not subject to regulations by various agencies. ⊚ ⊚

true false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 8) Which groups have the force of the law behind them with regard to regulating advertising? A) trade associations B) industry groups C) government agencies D) internal regulatory bodies

9) Legislation is being considered that would either ban or impose major restrictions on direct-to-consumer advertising of A) hard liquor. B) cigarettes. C) prescription drugs. D) political campaigns.

10)

Policies and procedures for industry self-regulation are established by the A) Federal Trade Commission. B) U.S. Postal Service. C) Advertising Self-Regulatory Council. D) Federal Communications Commission.

Version 1

11) Which entity stated that it is a constitutional right for doctors to be able to advertise their services? A) Supreme Court B) State Medical Association C) American Medical Association D) Federal Communications Commission E) Federal Trade Commission

12)

Self-regulation of advertising has resulted in the development of A) legislation of practices and standards. B) stringent practices and standards. C) lax practices and standards. D) non-uniform practices and standards

13)

This entity has regulations that affect advertising going through the mail. A) Federal Communications Commission B) Federal Trade Commission C) U.S. Postal Service D) Federal Transportation Commission

14)

Protection of commercial speech is provided by which amendment to the Constitution? A) First B) Second C) Fourth D) Twenty-First E) Twenty-Second

Version 1

15) In the cases regarding advertising, the U.S. Supreme Court has ruled that freedom of expression must be balanced against A) competition. B) global views. C) competing interests. D) Central Hudson.

16) What gave the Federal Trade Commission (FTC) the power to issue cease-and-desist orders and levy fines on violators? A) Lea-Salonga Amendment B) Jim-Wheeler Amendment C) Wheeler-Lea Amendment D) Lea-Jewell Amendment

17) What protects consumers from deceptive and unsubstantiated advertising and enforces the provisions of the FTC Act that forbid misrepresentation, unfairness, and deception in general advertising at the national and regional level? A) Division of Advertising Practices B) Federal Communications Commission C) U.S. Postal Service D) American Bar Association

18) Exploiting vulnerable groups, such as children and older adults, in advertising is considered to be

Version 1

A) targeted advertising. B) unfair advertising. C) ageist advertising. D) effective advertising.

19)

________ is an accepted form of exaggeration in advertising. A) Bravado B) Bragging C) Puffery D) Ego-centric

20)

A promotion is considered a lottery if A) a prize is offered. B) an entry form is completed C) anyone can win the prize. D) entrants must make a purchase to win.

21)

Sending multiple unsolicited commercial electronic messages is called A) junking. B) stalking. C) spamming. D) glitching.

22)

Which of the following is a federal agency that controls advertising?

Version 1

A) National Advertising Review Board B) Better Business Bureau C) National Advertising Review Council D) Food and Drug Administration E) National Association of Attorneys General

23) that

In the 1966 Supreme Court decision 44 Liquormart, Inc. v. Rhode Island, the court ruled

A) advertising alcoholic beverage prices is okay because commercial speech is protected under the First Amendment. B) advertising the prices of prescription drugs is okay because commercial speech is protected under the First Amendment. C) misleading or deceptive commercial speech is protected. D) political speech guidelines are stricter than commercial speech guidelines. E) the free flow of information depends on self-regulation.

24)

Advertisers are often supportive of voluntary self-regulation because

A) self-regulation is viewed as a way of limiting government interference in advertising. B) all clients and agencies are affected by voluntary self-regulation. C) self-regulation does not require interaction between an agency and a client. D) self-regulation results in even more stringent regulations than what state and federal agencies want. E) it is simple and less time consuming.

25)

Self-regulation begins with the interaction of client and agency when

Version 1

A) a consent order is signed. B) a company is charged with a lawsuit for deceptive advertising. C) there has been an omission of advertising substantiation. D) creative ideas are generated and submitted for consideration. E) ads are aired in foreign nations.

26) In 1977, the ________ held that state bar associations’ restrictions on advertising are unconstitutional and that attorneys have First Amendment freedom of speech rights to advertise. A) Federal Trade Commission B) American Bar Association C) U.S. Supreme Court D) Better Business Bureau E) American Marketing Association

27) Which of the following statements is true of advertising by members of professional associations? A) Both government regulatory agencies and consumer groups are against advertising by members of professional associations. B) Professional associations have always authorized advertising by their members on the basis that such promotional activities heighten members’ professional status. C) Research has shown that consumers generally disfavor the use of professional advertising. D) The Supreme Court has ruled that professionals, such as dentists and physicians, have the right to advertise. E) Professional advertising is typically considered unethical and fraudulent.

28)

Which of the following statements concerning advertising by attorneys is true?

Version 1

A) The right for attorneys to advertise is protected under the First Amendment. B) The U.S. Supreme Court does not permit lawyers to advertise if they earn more than $100,000 per year. C) Ads soliciting personal injury victims help in enhancing the public’s perception of attorneys. D) The American Bar Association recently removed all restrictions on the type of advertising attorneys can use. E) Typically, traditional law firms are in favor of using advertising, particularly on TV, because they believe that it might boost a profession’s image.

29) A number of self-regulatory mechanisms have been established by the business community in an effort to control advertising practices, and among them, the largest and best known is the A) Federal Trade Commission. B) Federal Communications Commission. C) Better Business Bureau. D) World Trade Organization. E) Chamber of Deputies.

30) The BBB is the largest and best known self-regulatory mechanism in the United States that has been established by the business community in an effort to control advertising practices. BBB stands for A) Board for Business Broadcasting. B) Board of the Best Businessmen. C) Board for Betterment of Broadcasting. D) Better Business Bureau. E) Best Business Bureau.

31)

Which of the following sentences is true of the Better Business Bureau (BBB)?

Version 1

A) The BBB is a federal regulatory agency that controls advertising. B) The BBB promotes fair advertising and selling practices across all industries. C) The BBB was established to handle client complaints about regional business practices. D) The BBB is regulated by the American Marketing Association. E) Local BBBs are located in only two cities across America.

32)

Local Better Business Bureaus (BBBs) A) receive and investigate complaints from consumers regarding advertising in their

area. B) are located in small cities throughout the United States with populations less than 200,000. C) are government-aided agencies. D) follow a standard operating procedure for handling complaints as implemented by the Federal Trade Commission. E) are funded by the Council of Better Business Bureaus.

33) Better Business Bureaus (BBBs) provide effective control over advertising practices at the ________ level. A) local B) national C) global D) industry-wide E) international

34) The BBB National Programs Inc. plays a major role in controlling advertising practices at the ________ level.

Version 1

A) national B) local C) manufacturer D) international E) regional

35) The ________ plays a major role at the national level as the third-party administrator of the advertising industry self-regulatory system. A) National Advertising Review Board B) BBB National Programs Inc. C) American Marketing Association D) Federal Trade Commission E) National Advertising Review Council

36) the

Policies and procedures for self-regulation of the advertising industry are established by

A) National Association of Broadcasters. B) Vision Council of America. C) National Advertising Review Council. D) Independent Business Alliance. E) Association of American Publishers.

37)

Which of the following is the appellate unit of the Advertising Self-Regulatory Council? A) National Advertising Division B) Independent Business Alliance C) National Advertising Review Board D) American Marketing Association E) National Association of Broadcasters

Version 1

38) Which of the following statements is true of policies and procedures established for industry self-regulation by the Advertising Self-Regulatory Council (ASRC)? A) The Children’s Advertising Review Unit (CARU) reviews advertising directed to children between the ages of 12 and 16. B) The National Advertising Division of the Council of Better Business Bureaus (NAD) examines advertising claims in direct-response advertising. C) The Electronic Retailing Self-Regulation Program (ERSP) examines all advertising claims excluding infomercials and home shopping channels. D) The National Advertising Division of the BBB National Programs Inc. is staffed primarily by attorneys. E) The Electronic Retailing Self-Regulation Program (ERSP) reviews advertising claims that are local in scope.

39) The ________ was formed by three advertising associations and the BBB National Programs Inc. to sustain high standards of truth and accuracy in national advertising. A) National Advertising Board B) National Advertising Review Council C) American Association of Advertisers D) Ad Council E) Board of Advertising Ombudsmen

40) The ________ of the BBB National Programs Inc. focuses on areas that include product performance claims, superiority claims against competitive products, and all kinds of scientific and technical claims made in countrywide advertising. A) National Advertising Division B) National Review Board C) National Association of Attorneys General D) American Marketing Association E) Federal Trade Commission

Version 1

41) The ________ examines advertising claims in direct-response advertising, including infomercials and home shopping channels. A) Children’s Advertising Review Unit B) Vision Council of America C) National Association of Broadcasters D) Electronic Retailing Self-Regulation Program E) Independent Business Alliance

42)

Which of the following statements is true of the National Advertising Division (NAD)?

A) The NAD’s advertising monitoring program only reviews complaints from local Better Business Bureaus. B) Advertisers that disagree with the NAD’s findings have an automatic right to appeal the NAD’s decision to the National Advertising Review Board. C) The NAD has no authority to direct an advertiser to stop running an ad in case the required substantiating evidence does not support the advertiser’s claim. D) Lawyers at the NAD usually seek help from local advertising agencies to find misleading advertisements. E) The NAD does not deal with complaints that come from marketers who are threatened by comparative advertising.

43) If an advertiser refuses to comply with rulings made by the National Advertising Review Board (NARB), the NARB is most likely to A) order the advertiser to stop running the ad. B) refer the case to an industry trade association. C) refer the matter to an appropriate federal agency. D) impose a fine. E) lodge a class action suit for customers who have been in some way negatively affected by the ad.

Version 1

44) Which of the following statements is true of the Electronic Retailing Self-Regulation Program (ERSP)? A) The mission of the ERSP is to discourage advertising and marketing in the electronic retailing industry that contains comparative advertising. B) The majority of claims reviewed under the ERSP program are for online advertising, including search media optimization and social media marketing. C) The ERSP works under the scope of the Electronic Retailing Association (ERA) to create a predisposed self-regulatory system. D) Spam e-mails along with Internet pop-up ads that lead to further e-commerce are in the ERSP’s purview as well as advertising on TV shopping channels. E) The ERSP is an initiative of the Federal Trade Commission (FTC) to work toward the self-regulation of electronic retailing.

45) The ________ is a self-regulatory program implemented by the Advertising SelfRegulatory Council (ASRC) that regulates online behavioral advertising (OBA) across the Internet. A) Internet Advertising Review Board B) Internet Retailing Self-Regulation Program C) Council of Better Business Bureaus D) Internet-Based Advertising Accountability Program E) Information Technology Act

46)

Which of the following statements is true of online behavioral advertising (OBA)?

A) OBA permits only those advertisements that provide detailed information about an advertiser’s products and services. B) Companies engaged in OBA are monitored by the Federal Trade Commission (FTC). C) OBA is based on the seven Self-Regulatory Principles for Electronic Retailing. D) OBA uses information collected across multiple unaffiliated websites to predict a user’s preferences. E) OBA is regulated by the Electronic Retailing Self-Regulation Program (ERSP).

Version 1

47) Which of the following statements is true of the National Advertising Review Council (NARC)? A) Cases brought to NARC are subject to extensive publicity as compared to the cases brought to court. B) It is very expensive to get a case solved through NARC. C) The NARC takes longer to solve a case when compared to the Federal Trade Commission (FTC). D) The NARC can handle cases at a lower cost as compared to a court. E) The NARC is a government agency regulating advertising agencies.

48) The ________ is a major trade association of the advertising business in the United States and has established standards of practice and its own creative code. A) Vision Council of America B) Independent Business Alliance C) American Association of Advertising Agencies D) Federal Trade Commission E) National Association of Broadcasters

49) Which of the following statements describes the media’s role in the self-regulation of advertising? A) The media must accept all the advertising campaigns they receive because of the First Amendment that guarantees the freedom of speech. B) The media cannot refuse to accept advertising for an entire product class such as hard liquor. C) The media can refuse to accept individual ads they find offensive or objectionable. D) The media is expected to reject ads that are targeted toward children and older adults. E) The broadcast is required by law to reject political ads.

50) Certain magazines regularly test the products they advertise and offer a “seal of approval” and refunds if the products are later found to be defective. They do so in order to Version 1

A) enhance the credibility of the publication. B) encourage advertisers to buy more media space. C) eliminate puffery in their ads. D) discourage comparative advertising. E) avoid questionable advocacy advertising.

51) Advertising on television and radio was initially regulated through codes developed by the ________ until the courts found that portions of its regulations were in restraint of trade. A) National Advertising Review Board B) Federal Trade Commission C) Federal Communications Commission D) National Association of Broadcasters E) Standards and Practices Division

52) Which of the following media has the most stringent review and approval process for advertising? A) community radio B) business magazines C) newspaper and trade publications D) the Internet E) the four major television networks

53)

Television advertising is A) typically not used to advertise hard liquor. B) regulated through codes developed and enforced by the Federal Trade Commission. C) regulated by affiliate networks. D) more stringently self-regulated than any other medium. E) considered a declining advertising medium.

Version 1

54) A very frustrating, and often expensive, scenario for both an agency and its client occurs when a commercial A) is rejected at the storyboard stage. B) that was rejected at the storyboard stage is accepted at the final stage. C) is rejected for reasons such as sex, politics, and religion. D) is approved at the storyboard stage but then is rejected after it is produced. E) is rejected at the idea-generation stage.

55)

Which of the following statements about self-regulation by media is true?

A) Most commercials once rejected cannot be rerun. B) Network standards regarding acceptable advertising have remained constant over the past 30 to 40 years. C) Advertising for contraceptives is completely banned on all networks since 1995. D) Television is probably the most carefully scrutinized of all forms of advertising. E) Network standards have become more stringent in response to competition from independent and cable stations.

56) The three major participants in the advertising process that work individually and collectively to encourage truthful, ethical, and responsible advertising are A) advertisers, advertising review boards, and the cable operators. B) creative boutiques, copywriters, and consumer panels. C) consumer panels, advertisers, and agencies. D) advertisers, advertising agencies, and the media. E) advertisers, the government, and the television networks.

57)

Which of the following statements is true of self-regulation of advertising?

Version 1

A) Self-regulation of advertising is typically restricted to liquor and tobacco advertisements. B) Self-regulation was initially introduced to eliminate the problem of puffery. C) Self-regulation of advertising has led to the development of more lenient standards and practices than those imposed by the legislation. D) The advertising industry views self-regulation as an effective mechanism for controlling advertising abuses. E) The advertising industry prefers government intervention over self-regulation.

58) ________, as defined by the First Amendment to the U.S. Constitution, is the most basic federal law governing advertising in the United States. A) Freedom of using any media vehicle B) Freedom to advertise C) Freedom to stop the airing of any advertisement D) Freedom of speech E) Freedom of press

59)

The courts have extended First Amendment protection to

A) commercial speech, a speech that promotes a commercial transaction. B) advertisers to enable them to sue the media for not providing them with the promised reach and frequency. C) the findings of marketing research studies. D) advertisers who want to use delusory wording in their ads. E) advertisers who do not want to be self-regulated.

60)

Commercial speech is most accurately defined as

Version 1

A) an encoding and decoding tool for commercial communications. B) communication that promotes a commercial transaction. C) a type of comparative advertising used in TV commercials. D) an advertising component of broadcast media. E) speech governed by the Fifth Amendment to the U.S. Constitution.

61) The U.S. Supreme Court established the ________, a four-part test to determine restrictions on commercial speech. A) Virginia Consumer Council Test B) Free Speech Matrix C) First Amendment Analysis D) California Test of Affirmation E) Central Hudson Test

62) Act.

Federal regulation of advertising originated in 1914 with the passage of the ________

A) Information Technology B) Advertising Self-Regulatory C) Federal Consumer Protection D) Federal Trade Commission E) Central Hudson

63)

Under the original Federal Trade Commission Act of 1914, the FTC

Version 1

A) was given the power to issue cease-and-desist orders against firms engaging in deceptive practices. B) was given the power to pursue corrective advertising remedies to deceptive practices. C) could not prohibit false advertising unless there was evidence of injury to a competitor. D) was given the power to regulate all false and deceptive advertising practices that might injure competition or mislead consumers. E) could not enforce antitrust laws or protect major competitors from one another.

64) The ________ empowered the Federal Trade Commission to regulate unfair or deceptive practices in commerce including those in advertising. A) Lanham Amendment B) Sherman and Clayton Antitrust Act C) Wheeler-Lea Amendment D) Food and Drug Administration Act E) Consumer Protection Act

65) The ________ gave the Federal Trade Commission (FTC) the power to issue cease-anddesist orders and levy fines on violators. A) Central Hudson Test B) National Advertising Review Board C) Lanham Act D) Wheeler-Lea Amendment E) Sherman Antitrust Act

66)

The three major divisions of the Federal Trade Commission (FTC) are the bureaus of

Version 1

A) employment, national security, and trade. B) governance, compliance, and cooperation. C) regulation, restriction, and economic reconstruction. D) economics, consumer protection, and competition. E) distribution, distillation, and consumer diversity.

67) Which of the following divisions of the Federal Trade Commission (FTC) deals with antitrust and consumer protection investigations? A) Bureau of Economics B) Bureau of Compliance C) National Advertising Review Board D) Bureau of Reconstruction E) Trade Regulation Bureau

68) The ________ is the division of the Federal Trade Commission (FTC) that is responsible for investigating cases involving deceptive or misleading advertising. A) Bureau of Economics B) Bureau of Competition C) National Advertising Review Board D) Bureau of Consumer Protection E) Trade Regulation Bureau

69) Which of the following divisions of the Federal Trade Commission (FTC) protects consumers from deceptive and unsubstantiated advertising and enforces the provisions of the FTC Act that forbid misrepresentation, unfairness, and deception in general advertising at the national and regional level?

Version 1

A) Division of Consumer Advertising & Protection B) Division of Advertising Broadcasts C) Division of Marketing Practices D) Division of Advertising Practices E) Division of Economic Practices

70) The Federal Drug Administration has forced a number of companies to run corrective ads as a remedy for A) false and misleading ad campaigns. B) not providing the proper disclaimers. C) not identifying the name of the company. D) not recognizing FDA approval. E) bashing competitors’ products.

71) The ________ test considers whether consumers are left with a latent impression that would continue to affect buying decisions and whether corrective ads are needed to remedy the situation. A) SOUP B) Unfair Practices C) STP D) Magnuson-Moss E) Warner-Lambert

72) Over the past decade the FTC has focused its attention on the enforcement of existing regulations in areas such as

Version 1

A) telemarketing and Internet privacy. B) magazines and newspapers. C) infomercials and video on demand. D) radio and television. E) public relations and publicity.

73) According to Federal Trade Commission (FTC) policy, the basis for determining ________ is that a trade practice causes substantial physical or economic injury to consumers, could not reasonably be avoided by consumers, and must not be outweighed by countervailing benefits to consumers or competition. A) unfairness B) deception C) puffery D) affirmative disclosure E) cease-and-desist orders

74) Gretchen learned that an ad her team worked on for a client was not being allowed to air because it was profane and in poor taste. Which agency has the authority to purge ads that are profane, deceptive, or misleading? A) FDA B) FCC C) US Post Office D) ATF E) Supreme Court

75) ________ has been legally defined as “advertising or other sales presentations which praise the item to be sold with subjective opinions, superlatives, or exaggerations, vaguely and generally, stating no specific facts.”

Version 1

A) Deceptive advertising B) Unfairness C) Comparative advertising D) Puffery E) Affirmative disclosure

76) Scrumptious Inc., an American food and beverages company, claims that “Scrumptious makes the world’s best chocolate frosting.” This is an example of A) sales promotion. B) superiority advocacy. C) puffery. D) comparative advertising. E) trickery.

77) Esme Inc., a manufacturer of cosmetics, ran an ad campaign in which it claimed that Esme’s “Vivid” range of water-proof mascara is the best mascara in the world. It also claimed that the mascara gives 10 times more volume to the eyelashes and provides more definition to the eyes than any other mascara brand. This campaign is an illustration of A) deception. B) superlative advertising. C) unfairness. D) puffery. E) unethical advertising.

78)

Which of the following is the best example of the use of puffery in advertising?

Version 1

A) A bank advertises free checking with a minimum balance of $1,000. B) A tire manufacturer advertises a 50,000-mile guarantee for its tires. C) A manufacturer of premium chocolates claims that it makes the finest chocolates in the world. D) A popular shampoo brand advertises that it has been proven to be effective in preventing dandruff. E) A provider of courier services advertises guaranteed overnight delivery service.

79)

The use of superlatives such as “greatest,” “best,” and “finest” in advertising constitutes A) an unfair claim. B) puffery. C) deception. D) an affirmative disclosure. E) advertising substantiation.

80)

The Federal Trade Commission (FTC) takes the position that A) consumers cannot distinguish between factual information and puffery. B) puffery has a detrimental effect on consumers’ purchase decisions. C) consumers recognize puffery and don’t believe it. D) puffery is illegal under the Wheeler-Lea Act. E) consumers believe in puffery.

81) of

Snapple’s claim that its beverages are “made from the best stuff on Earth” is an example

A) an unfair claim. B) puffery. C) deception. D) an affirmative disclosure. E) advertising substantiation.

Version 1

82) The Federal Trade Commission defines ________ as an express or implied statement contrary to fact. A) selective exposure B) affirmative disclosure C) selective retention D) misrepresentation E) comparative disclosure

83) According to the Federal Trade Commission, ________ exists if there is a misrepresentation, omission, or practice that is likely to mislead the consumer acting reasonably in the circumstances to the consumer’s detriment. A) puffery B) affirmative disclosure C) selective retention D) deception E) selective disclosure

84) According to the Federal Trade Commission, ________ occurs when qualifying information necessary to prevent a practice, claim, representation, or reasonable belief from being misleading is not disclosed. A) misinterpretation B) affirmative disclosure C) coercion D) misleading omission E) fraud

85) The key elements in the Federal Trade Commission’s definition of deception are that the representation, omission, or practice must be likely to mislead the reasonable consumer and that it must have

Version 1

A) materiality. B) selective exposure. C) selective retention. D) puffery. E) peripheral importance.

86) According to the Federal Trade Commission’s definition of deception, a representation, omission, or practice has materiality if it A) is seen by a substantial number of consumers leading to significant injury. B) can be decoded to have several different meanings. C) is likely to influence consumers’ purchase decisions. D) uses superlatives and can be substantiated. E) can influence the consumers’ decision-making process in a detrimental way.

87) Which of the following factors does the Federal Trade Commission (FTC) consider in evaluating an ad for deception? A) presence of superlative words in the advertisement B) significant omissions of important information C) lack of selective disclosure D) presence of puffery in the advertisement E) violation of trade regulation rule

88) Under its affirmative disclosure requirement, the Federal Trade Commission may require advertisers to include certain types of information in their ads so that

Version 1

A) consumers can substantiate the claims made for advertisers’ product or service. B) consumers will be aware of all the consequences and limitations associated with the use of a product or service. C) consumers’ choice or conduct with regard to a product or service will remain unaffected. D) consumers can distinguish exaggeration or inflated claims in advertising and also recognize puffery. E) consumers can easily understand any technical data or information provided.

89)

The goal of affirmative disclosure is to A) avoid ads that might be offensive or misleading to consumers. B) give consumers sufficient information to make an informed decision. C) protect advertisers from suits involving accuracy of advertising claims. D) restrict the content of attorney ads and necessitate a disclaimer. E) enhance consumer confidence in advertisements.

90) In 1971, the Federal Trade Commission’s ________ program required advertisers to have supporting documentation for their claims and to prove the claims are truthful. A) Central Hudson B) Lanham C) cease-and-desist D) advertising substantiation E) affirmative disclosure

91) The Federal Trade Commission’s advertising substantiation program now requires advertisers to substantiate their claims

Version 1

A) within one month of the appearance of an ad. B) if an ad does not provide sufficient information to consumers so as to make an informed decision. C) if an ad uses puffery. D) before an ad appears. E) if an ad runs for more than six months.

92) The Federal Trade Commission’s advertising substantiation program has had a major effect on the advertising industry because it A) simplified the advertising decision-making process. B) led to fewer liability litigations involving products that are associated with consumer injuries. C) enabled advertisers to make accurate advertising claims. D) shifted the burden of proof from the commission to the advertiser. E) increased consumer confidence in all advertising claims.

93) The Federal Trade Commission (FTC) requires advertising for any product that is sweetened with saccharin to contain a warning that it may be hazardous to one’s health. This requirement falls under the FTC’s ________ requirement. A) misleading omission B) advertising substantiation C) elimination of puffery D) cease-and-desist E) materiality

94) Which of the following Federal Trade Commission (FTC) programs requires firms to verify the veracity of product information before making any advertising claims about the product?

Version 1

A) corrective advertising B) implied uniqueness C) comparative advertising D) affirmative disclosure E) advertising substantiation

95) The Federal Trade Commission (FTC) requires the advertisers for The Atkins Diet prove their products promote weight loss. This requirement falls under the FTC’s ________ requirement. A) misleading omission B) advertising substantiation C) elimination of puffery D) cease-and-desist E) materiality

96) A(n) ________ is an agreement to stop the practice or advertising in question, is for settlement purposes only, and does not constitute an admission of guilt by an advertiser. A) cease-and-desist order B) consent order C) ad substantiation agreement D) affirmative disclosure order E) injunction

97)

Which of the following statements is true of a consent order?

Version 1

A) The signing of a consent order constitutes an admission of guilt by an advertiser. B) If an advertiser refuses to sign a consent order, the inquiry is handed to the U.S. Department of Justice. C) A consent order is for settlement purposes only. D) A consent order prohibits an advertiser from making a specified advertising claim for 30 days. E) A consent order leads to adverse publicity.

98) Under the Wheeler-Lea Amendment, the Federal Trade Commission is empowered to stop an advertiser from making a specified claim within 30 days and prohibit the advertiser from engaging in the objectionable practice until after a hearing is held. This is known as A) a consent order. B) injunctive power. C) a cease-and-desist order. D) corrective advertising. E) advertising substantiation.

99)

Cease-and-desist orders A) are used to regulate public service announcements. B) require an advertiser to run comparative advertisements. C) are issued by the Federal Trade Commission. D) are made legally binding by the Robinson-Patman Act. E) do not impose punishments upon violation.

100) The Federal Trade Commission program that requires an advertiser who is found guilty of deceptive advertising to run additional advertising to remedy the deception or misinformation contained in previous ads is known as

Version 1

A) the fairness doctrine. B) ad substantiation. C) affirmative disclosure. D) corrective advertising. E) the puffery dogma.

101) 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) McDonald’s.

102) Which of the following programs is likely to be 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

103) The ________ is a federal agency that was founded in 1934 to regulate broadcast communication and that has jurisdiction over the radio, television, telephone, and telegraph industries.

Version 1

A) Federal Trade Commission B) Federal Communications Commission C) Fairness Doctrine D) U.S. Postal Service E) National Association of Broadcasters

104)

Under the Children’s Television Act,

A) advertising aimed at children is prohibited. B) advertising during children’s programming is limited to 12 minutes an hour on weekdays. C) broadcasters are required to provide time for opposing viewpoints on important issues. D) advertisers have no restrictions on the amount of advertising aimed at children. E) the Federal Communications Commission (FCC) can fine advertisers who exceed advertising limits as defined by the act.

105) Under the Reagan administration, the controversial ________, which required broadcasters to provide time for opposing viewpoints on important issues, was repealed on the grounds that it was counterproductive. A) Deception Doctrine B) Misinterpretation Dogma C) Affirmative Disclosure Doctrine D) Fairness Doctrine E) Substantiation Dogma

106) Under the ________, the Federal Communications Commission (FCC) required stations to run commercials about the harmful effects of smoking.

Version 1

A) Substantial Omission Doctrine B) Misinterpretation Doctrine C) Affirmative Disclosure Doctrine D) Fairness Doctrine E) Substantiation Doctrine

107) The ________ is the federal agency that has authority over the labeling, packaging, branding, ingredient listing, and advertising of packaged foods and drug products, as well as cosmetics. A) Federal Food and Drugs Commission B) Federal Commission for Substance Abuse Control C) U.S. Commission for Food, Drugs, and Cosmetics D) Bureau of Alcohol, Tobacco, and Firearms E) Food and Drug Administration

108) In 1996, President Clinton signed an executive order declaring that nicotine was an addictive drug and gave the ________ board jurisdiction to regulate the advertising of cigarettes and smokeless tobacco. A) U.S. Commission for Food and Drugs B) Federal Trade Commission C) Bureau of Alcohol, Tobacco, and Firearms D) Food and Drug Administration E) Tobacco Institute

109) The ________ has control over advertising involving the use of the mail and ads that involve lotteries, obscenity, or fraud.

Version 1

A) U.S. Postal Service B) Federal Communications Commission C) National Association of Attorneys General D) Federal Trade Commission E) U.S. Department of Welfare

110) The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) is an agency within the ________ that enforces laws, develops regulations, and is responsible for tax collection for the liquor industry. A) Department of Internal Affairs B) Better Business Bureau C) Department of Commerce D) Food and Drug Administration E) Treasury Department

111)

Which of the following agencies is responsible for tax collection for the liquor industry? A) Federal Commission for Substance Abuse Control B) Food and Drug Administration C) Bureau of Alcohol, Tobacco, Firearms and Explosives D) Federal Trade Commission E) National Association of Attorneys General

112)

The ________ regulates and controls the advertising of alcoholic beverages. A) Federal Commission for Substance Abuse Control B) Food, Alcohol, and Drug Administration C) Bureau of Alcohol, Tobacco, Firearms and Explosives D) Federal Trade Commission E) National Association of Attorneys General

Version 1

113) The ________ is a government regulation that is increasingly being used by companies to file lawsuits against competitors they believe are making false claims. A) Federal Trade Commission Act B) Wheeler-Lea Amendment C) Lanham Act D) Robinson-Patman Act E) Clayton Antitrust Act

114) Garrett Inc., an oil retailer, claimed its Clear Index gasoline cleaned car engines, boosted mileage, and reduced pollution emissions better than any other gas. Vaughn Corp., an energy corporation, contended that its products were just as good as Garrett’s. The ________ is likely to make it easier for Vaughn to sue Garrett for this perceived misrepresentation. A) Wheeler-Lea Amendment B) Federal Trade Commission Improvements Act C) Clayton Antitrust Act D) Lanham Act E) Competitor Trademark Act

115) Roberto’s, a pizzeria, claimed in its print and television ads that its pizza was made from the best ingredients and tasted better than Pacifix Crust’s pizza. Pacifix Crust can launch a civil suit against Roberto’s for false and misleading advertising under the ________ Act. A) Federal Trade Commission B) Wheeler-Lea C) Lanham D) Robinson-Patman E) Clayton Antitrust

Version 1

116) Wagner Tire, a manufacturer of tires, is developing an advertising campaign that will claim that cars using its new RX model stop 25 percent faster on wet surfaces when compared to other brands of tires. The company must conduct careful studies to provide support for the claim because A) the Federal Trade Commission may sue Wagner for comparative advertising. B) Wagner’s competitors may sue the company under the Lanham Act if it cannot substantiate its claims. C) the Better Business Bureau may sue Wagner if it cannot substantiate its claims. D) the Federal Trade Commission may charge Wagner for using puffery, which is an illegal form of advertising. E) the consumers may sue the company for the nonsubstantiation of the ad.

117) Alyssa was asked to edit her team’s testimonial ad so it would include a disclosure that said, “Results not typical.” Which agency scrutinizes the use of testimonial ads and asks for this type of disclosure in situations where the outcomes vary substantially? A) U.S. Post Office B) Supreme Court C) FCC D) FTC E) Trademark Registrars

118) Which of the following is an important early development in state regulation that is used in 44 states as a basis for advertising regulation? A) Printers Ink model statutes B) Better Business Bureau guidelines C) Wheeler-Lea Amendment D) Consortium of Trade Association’s regulations E) Fifth Amendment rectifications

119) The ________ moved against a number of national advertisers as a result of inactivity by the Federal Trade Commission (FTC) during the Reagan administration. Version 1

A) Better Business Bureau B) National Advertising Review Council C) National Advertising Review Board D) National Association of Attorneys General E) Federal Communications Commission

120) Many areas of sales promotions are regulated by the ________ through the Marketing Practices Division of the Bureau of Consumer Protection. A) Federal Communications Commission B) Food and Drug Administration C) Federal Trade Commission D) U.S. Justice Department E) Promotional Products Marketing Association

121) This agency has stepped up its efforts to stop fraud that targets financially distressed customers and to protect consumers’ online privacy. A) Federal Communications Commission B) Food and Drug Administration C) Federal Trade Commission D) U.S. Justice Department E) Promotional Products Marketing Association

122) If a participant is required to give up something of value in order to participate in a game or sweepstakes, then ________ is present, and the promotion is considered a lottery. A) misrepresentation B) consideration C) deception D) enticement E) remuneration

Version 1

123) Raiment Sportswear, a clothing manufacturer specializing in sportswear, has developed a “Super Bowl Sweepstakes” that it plans to promote during the football post-season. To avoid having this promotion classified as a lottery, Raiment should A) not make premium offers to special audiences such as children. B) offer only merchandise and no cash as part of the sweepstakes prizes. C) not require that consumers buy one of their products as a condition for entering the sweepstakes. D) run the promotion only in the state where the Super Bowl is being held. E) avoid comparative advertising.

124)

A promotion such as a contest or sweepstakes can avoid being considered a lottery by A) conducting the contest or sweepstake only at the regional level and not national

level. B) providing full disclosure. C) not requiring consideration to be present. D) publishing the odds of winning. E) ensuring puffery is avoided in advertisements.

125) A study by the Children’s Advertising Review Unit (CARU) found that the most prevalent violation of its voluntary advertising guidelines occurred with ________ aimed at children. A) rebates and refunds B) premiums C) trade allowances D) discounts E) contests and sweepstakes

126) Marketers’ use of trade allowances is controlled by the ________, which prohibits price discrimination.

Version 1

A) Federal Trade Commission Act B) Lanham Act C) Robinson-Patman Act D) FDA Act E) Wheeler-Lea Amendment

127) The ________ determined that POM Wonderful LLC had made unsubstantiated claims about the health benefits of its pomegranate juice. A) FTC B) FCC C) FDA D) ATF E) BBB

128) The Federal Trade Commission (FTC) and U.S. Postal Service have rules that govern the use of ________ plans whereby a company proposes to send merchandise to consumers and expects payment unless a consumer sends a notice of rejection or cancellation. A) unsolicited order B) negative option C) contradictory option D) false substitution E) unsubstantiated order

129) The ________ was established as part of the 1998 tobacco settlement and is dedicated to reducing tobacco use.

Version 1

A) Direct Marketing Reform Agency B) Telephone Consumer Protection Agency C) Direct Selling Association D) American Legacy Foundation E) Federal Telemarketing Reform Agency

130) In 2014, ________ changed its policy to prohibit marketers from “like-gating” a page to gain access to content or enter a contest. A) Facebook B) Snapchat C) LinkedIn D) Twitter E) Pinterest

Version 1

Answer Key Test name: Chap 20_12e 1) TRUE Self-regulation and control of advertising emanate from individual advertisers and their agencies. 2) TRUE Self-regulation begins with the interaction of client and agency when creative ideas are generated and submitted for consideration. Most companies have specific guidelines, standards, and policies to which their ads must adhere. 3) TRUE Federal law requires that advertisers possess substantiation for their advertising claims before the claims are published. After initiating or receiving a complaint, NAD requests the advertiser’s substantiation, reviews the information, and reaches a determination. 4) TRUE Some digital advertising platforms have restrictions on advertising certain types of products and services. 5) FALSE The FTC is responsible for protecting both consumers and businesses from anticompetitive behavior and unfair and deceptive practices. 6) FALSE The FTC has had the power to regulate advertising since the passage of the Wheeler-Lea Act. 7) FALSE Version 1

Both consumer- and trade-oriented promotions are subject to various regulations. The Federal Trade Commission regulates many areas of sales promotion through the Marketing Practices Division of the Bureau of Consumer Protection. 8) C Regulatory concerns can play a major role in the advertising decisionmaking process. 9) C Legislation is being considered that would either ban or impose major restrictions on direct-to-consumer advertising of drugs. 10) C Policies and procedures for industry self-regulation are established by the Advertising Self-Regulatory Council and implemented through four programs: the National Advertising Division (NAD), the Children’s Advertising Review Unit (CARU), the Electronic Retailing SelfRegulation Program (ERSP), and the Online Interest-Based Advertising Accountability Program. 11) A In 1977, the Supreme Court held that state bar associations’ restrictions on advertising are unconstitutional and that attorneys have First Amendment freedom of speech rights to advertise. Many professional associations subsequently removed their restrictions, and advertising by lawyers and other professionals is now common. 12) B Self-regulation of advertising has been effective and, in many instances, probably led to the development of more stringent standards and practices than those imposed by or beyond the scope of legislation.

Version 1

13) C Federal agencies such as the Federal Communications Commission, the Food and Drug Administration, the U.S. Postal Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives may have regulations that affect advertising. 14) A The courts have extended First Amendment protection to commercial speech, which is speech that promotes a commercial transaction. 15) C In the cases regarding advertising, the U.S. Supreme Court has ruled that freedom of expression must be balanced against competing interests. For example, the courts have upheld bans on the advertising of products that are considered harmful, such as tobacco. The Court has also ruled that only truthful commercial speech is protected, not advertising or other forms of promotion that are false, misleading, or deceptive. 16) C The Wheeler-Lea Amendment gave the FTC the power to issue ceaseand-desist orders and levy fines on violators. It extended the FTC’s jurisdiction over false advertising of foods, drugs, cosmetics, and therapeutic devices. 17) A The Division of Advertising Practices protects consumers from deceptive and unsubstantiated advertising and enforces the provisions of the FTC Act that forbid misrepresentation, unfairness, and deception in general advertising at the national and regional level. 18) B

Version 1

Practices considered unfair are claims made without prior substantiation, claims that might exploit such vulnerable groups as children and older adults, and instances where consumers cannot make a valid choice because an advertiser omits important information about a product or competing products mentioned in an ad. 19) C Puffery has generally been viewed as a form of poetic license or allowable exaggeration. 20) D A promotion is considered a lottery if a prize is offered, if winning a prize depends on chance and not skill, and if a participant is required to give up something of value in order to participate. 21) C Spamming is the sending of unsolicited multiple commercial electronic messages. 22) D Advertising is controlled by internal self-regulation and by external state and federal regulatory agencies such as the Federal Trade Commission (FTC), the Federal Communications Commission (FCC), the Food and Drug Administration (FDA), and the U.S. Postal Service. 23) A

Version 1

The Supreme Court’s 1996 decision in 44 Liquormart, Inc. v. Rhode Island struck down two state statutes designed to support the state’s interest in temperance. The first prohibited the advertising of alcoholic beverage prices in Rhode Island except on signs within a store, while the second prohibited the publication or broadcast of alcohol price ads. The Court ruled that the Rhode Island statutes were unlawful because they restricted the constitutional guarantee of freedom of speech, and the decision signaled strong protection for advertisers under the First Amendment. 24) A Advertisers see self-regulation as a way to limit government interference, which, they believe, results in more stringent and troublesome regulations. 25) D Self-regulation begins with the interaction of client and agency when creative ideas are generated and submitted for consideration. 26) C In 1977, the Supreme Court held that state bar associations’ restrictions on advertising are unconstitutional and that attorneys have First Amendment freedom of speech rights to advertise. 27) D In 1982, the Supreme Court upheld a Federal Trade Commission (FTC) order permitting advertising by dentists and physicians. 28) A A sizable faction within the American Bar Association (ABA) blames the legal profession’s image problem on sleazy ads. The ABA’s Commission on Advertising held a series of public hearings on what, if any, restrictive measures to recommend to state ethics panels. Version 1

29) C A number of self-regulatory mechanisms have been established by the business community in an effort to control advertising practices. The largest and best known is the Better Business Bureau (BBB), which promotes fair advertising and selling practices across all industries. 30) D A number of self-regulatory mechanisms have been established by the business community in an effort to control advertising practices. The largest and best known is the Better Business Bureau (BBB), which promotes fair advertising and selling practices across all industries. 31) B The Better Business Bureau (BBB) promotes fair advertising and selling practices across all industries. 32) A Local BBBs receive and investigate complaints from consumers and other companies regarding the advertising and selling tactics of businesses in their area. 33) A While BBBs provide effective control over advertising practices at the local level, the parent organization, the Council of Better Business Bureaus, plays a major role at the national level, as the third-party administrator of the advertising industry self-regulatory system. 34) A While BBBs provide effective control over advertising practices at the local level, the parent organization, the Council of Better Business Bureaus, plays a major role at the national level, as the third-party administrator of the advertising industry self-regulatory system.

Version 1

35) B While the Better Business Bureaus provide effective control over advertising practices at the local level, the parent organization, the Council of Better Business Bureaus, plays a major role at the national level, as the third-party administrator of the advertising industry selfregulatory system. 36) C Policies and procedures for self-regulation of the advertising industry are established by the Advertising Self-Regulatory Council (ASRC). In 2012, the National Advertising Review Council changed its name to the Advertising Self-Regulatory Council. 37) C Policies and procedures for industry self-regulation are established by the Advertising Self-Regulatory Council (ASRC). The system includes three investigative units—the National Advertising Division of the Council of Better Business Bureaus (NAD), the Children’s Advertising Review Unit (CARU), and the Electronic Retailing Self-Regulation Program (ERSP)—and an appellate unit, the National Advertising Review Board (NARB). 38) D Staffed primarily by attorneys, the NAD, CARU, ERSP, and Accountability Program review advertising claims that are national in scope. CARU reviews advertising directed to children under the age of 12, and ERSP examines advertising claims in direct-response advertising, including infomercials and home shopping channels, while the Accountability Program regulates online behavioral advertising (OBA) across the Internet. 39) B Version 1

In 1971, four associations—the American Advertising Federation (AAF), the American Association of Advertising Agencies (AAAA), the Association of National Advertisers (ANA), and the Council of Better Business Bureaus (now BBB National Programs Inc.) —joined forces to establish the National Advertising Review Council (NARC). 40) A The NAD has examined advertising for truth and accuracy since 1971 and has published more than 5,000 decisions, focusing on areas that include product performance claims, superiority claims against competitive products, and all kinds of scientific and technical claims. 41) D The Electronic Retailing Self-Regulation Program (ERSP) examines advertising claims in direct-response advertising, including infomercials and home shopping channels. 42) B Advertisers that disagree with the NAD’s findings have an automatic right to appeal the NAD’s decision to the National Advertising Review Board. 43) C When companies refuse to participate in a self-regulatory proceeding or do not comply with the terms of a decision, their disputed advertising may be referred to the most appropriate federal agency for further review. 44) D Spam e-mails along with Internet pop-up ads that lead to further ecommerce are in the ERSP’s purview as well as advertising on TV shopping channels.

Version 1

45) D In 2012, the ASRC implemented a new self-regulatory program, the Internet-Based Advertising Accountability Program, which regulates online behavioral advertising (OBA) across the Internet. 46) D OBA uses information collected across multiple unaffiliated websites— and more recently mobile apps—to predict a user’s preferences and display ads most likely to interest consumers. 47) D Cases brought to NARC are handled at a fraction of the cost (and with much less publicity) than those brought to court and are expedited more quickly than those reviewed by a government agency such as the FTC. 48) C The AAAA, which is the major trade association of the ad agency business in the United States, has established standards of practice and its own creative code. 49) C Most media maintain some form of advertising review process and, except for political ads, may reject any they regard as objectionable. Some media exclude advertising for an entire product class; others ban individual ads they think offensive or objectionable. 50) A

Version 1

Large, established publications, such as major newspapers or magazines, often have strict standards regarding the type of advertising they accept. Some magazines, such as Parents and Good Housekeeping, regularly test the products they advertise and offer a “seal of approval” and refunds if the products are later found to be defective. Such policies are designed to enhance the credibility of the publication and increase a reader’s confidence in the products it advertises. 51) D Advertising on television and radio has been regulated for years through codes developed by the industry trade association, the National Association of Broadcasters (NAB). However, in 1982, the NAB suspended all of its code provisions after the courts found that portions (dealing with time standards and required length of commercials in the TV code) were in restraint of trade. 52) E The four major television networks have the most stringent review process of any media. All four networks maintain standards and practices divisions, which carefully review all commercials submitted to the network or individual affiliate stations. 53) D The four major television networks have the most stringent review process of any media. All four networks maintain standards and practices divisions, which carefully review all commercials submitted to the network or individual affiliate stations. 54) D A very frustrating, and often expensive, scenario for both an agency and its client occurs when a commercial is approved at the storyboard stage but then is rejected after it is produced. Version 1

55) D Since television is probably the most carefully scrutinized and frequently criticized of all forms of advertising, the networks must be careful not to offend their viewers and detract from advertising’s credibility. 56) D The three major participants in the advertising process—advertisers, agencies, and the media—work individually and collectively to encourage truthful, ethical, and responsible advertising. 57) D The advertising industry views self-regulation as an effective mechanism for controlling advertising abuses and avoiding the use of offensive, misleading, or deceptive practices, and it prefers this form of regulation to government intervention. 58) D Freedom of speech or expression, as defined by the First Amendment to the U.S. Constitution, is the most basic federal law governing advertising in the United States. 59) A The courts have extended First Amendment protection to commercial speech, which is speech that promotes a commercial transaction. 60) B The courts have extended First Amendment protection to commercial speech, which is speech that promotes a commercial transaction. 61) E The U.S. Supreme Court established a four-part test known as the Central Hudson Test for determining restrictions on commercial speech. 62) D Version 1

Federal regulation of advertising originated in 1914 with the passage of the Federal Trade Commission Act (FTC Act), which created the FTC, the agency that is today the most active in, and has primary responsibility for, controlling and regulating advertising. 63) C In 1922, the Supreme Court upheld an FTC interpretation that false advertising was an unfair method of competition, but in the 1931 case FTC v. Raladam Co., the Court ruled the commission could not prohibit false advertising unless there was evidence of injury to a competitor. 64) C In 1938, Congress passed the Wheeler-Lea Amendment. It amended Section 5 of the FTC Act to read: “Unfair methods of competition in commerce and unfair or deceptive acts or practices in commerce are hereby declared to be unlawful.” 65) D The Wheeler-Lea Amendment gave the FTC the power to issue ceaseand-desist orders and levy fines on violators. 66) D The major divisions of the FTC include the bureaus of competition, economics, and consumer protection. 67) A The Bureau of Economics helps the FTC evaluate the impact of its actions and provides economic analysis and support to antitrust and consumer protection investigations and rule makings. 68) D

Version 1

The Bureau of Consumer Protection’s mandate is to protect consumers against unfair, deceptive, or fraudulent practices. This bureau also investigates and litigates cases involving acts or practices alleged to be deceptive or unfair to consumers. 69) D The Division of Advertising Practices protects consumers from deceptive and unsubstantiated advertising and enforces the provisions of the FTC Act that forbid misrepresentation, unfairness, and deception in general advertising at the national and regional level. 70) A However, there have been a number of cases where the FTC has required marketers to run corrective ads as a remedy for false and misleading advertising campaigns. 71) E Since the Supreme Court ruling in the Listerine case, there have been several other situations where the FTC has ordered corrective advertising on the basis of the “Warner-Lambert test,” which considers whether consumers are left with a latent impression that would continue to affect buying decisions and whether corrective ads are needed to remedy the situation. 72) A Over the past decade the FTC has focused its attention on the enforcement of existing regulations, particularly in areas such as telemarketing and Internet privacy. 73) A

Version 1

According to Federal Trade Commission policy, the basis for determining unfairness is that a trade practice (1) causes substantial physical or economic injury to consumers, (2) could not reasonably be avoided by consumers, and (3) must not be outweighed by countervailing benefits to consumers or competition. 74) B The FCC can keep a profane or inappropriate ad from airing. 75) D Puffery has been legally defined as “advertising or other sales presentations which praise the item to be sold with subjective opinions, superlatives, or exaggerations, vaguely and generally, stating no specific facts.” 76) C This scenario is an example of puffery. Puffery has been legally defined as “advertising or other sales presentations which praise the item to be sold with subjective opinions, superlatives, or exaggerations, vaguely and generally, stating no specific facts.” 77) D The Esme campaign is an example of puffery. Puffery has been legally defined as “advertising or other sales presentations which praise the item to be sold with subjective opinions, superlatives, or exaggerations, vaguely and generally, stating no specific facts.” Puffery has generally been viewed as a form of poetic license or allowable exaggeration. 78) C

Version 1

In this scenario, the manufacturer of premium chocolates claiming that it makes the finest chocolates in the world is using puffery in advertising. Puffery has been legally defined as “advertising or other sales presentations which praise the item to be sold with subjective opinions, superlatives, or exaggerations, vaguely and generally, stating no specific facts.” 79) B Puffery has been legally defined as “advertising or other sales presentations which praise the item to be sold with subjective opinions, superlatives, or exaggerations, vaguely and generally, stating no specific facts.” 80) C The FTC takes the position that because consumers expect exaggeration or inflated claims in advertising, they recognize puffery and don’t believe it. 81) B Snapple’s claim that its beverages are “made from the best stuff on Earth” is an example of puffery. Puffery has been legally defined as “advertising or other sales presentations which praise the item to be sold with subjective opinions, superlatives, or exaggerations, vaguely and generally, stating no specific facts.” The use of puffery in advertising is common. 82) D The FTC defines misrepresentation as an express or implied statement contrary to fact. 83) D

Version 1

In 1983, the FTC, under Chair James Miller III, put forth a new working definition of deception: “The commission will find deception if there is a misrepresentation, omission, or practice that is likely to mislead the consumer acting reasonably in the circumstances to the consumer’s detriment.” 84) D The FTC defines misrepresentation as an express or implied statement contrary to fact, whereas a misleading omission occurs when qualifying information necessary to prevent a practice, claim, representation, or reasonable belief from being misleading is not disclosed. 85) A The third key element to the FTC’s definition of deception is materiality. According to the FTC a “material” misrepresentation or practice is one that is likely to affect a consumer’s choice or conduct with regard to a product or service. 86) C The third key element to the FTC’s definition of deception is materiality. According to the FTC a “material” misrepresentation or practice is one that is likely to affect a consumer’s choice or conduct with regard to a product or service. What this means is that the information, claim, or practice in question is important to consumers and, if acted upon, would be likely to influence their purchase decisions. 87) B Two of the factors the FTC considers in evaluating an ad for deception are (1) whether there are significant omissions of important information and (2) whether advertisers can substantiate the claims made for a product or service. 88) B Version 1

Under its affirmative disclosure requirement, the FTC may require advertisers to include certain types of information in their ads so that consumers will be aware of all the consequences, conditions, and limitations associated with the use of a product or service. The goal of affirmative disclosure is to give consumers sufficient information to make an informed decision. 89) B The goal of affirmative disclosure is to give consumers sufficient information to make an informed decision. 90) D In 1971, the FTC’s advertising substantiation program required advertisers to have supporting documentation for their claims and to prove the claims are truthful. 91) D Broadened in 1972, the advertising substantiation program now requires advertisers to substantiate their claims before an ad appears. 92) D The FTC’s substantiation program has had a major effect on the advertising industry because it shifted the burden of proof from the commission to the advertiser. Before the substantiation program, the FTC had to prove that an advertiser’s claims were unfair or deceptive. 93) B This scenario is an example of advertising substantiation. In 1971, the FTC’s advertising substantiation program required advertisers to have supporting documentation for their claims and to prove the claims are truthful. Broadened in 1972, this program now requires advertisers to substantiate their claims before an ad appears.

Version 1

94) E In 1971, the FTC’s advertising substantiation program required advertisers to have supporting documentation for their claims and to prove the claims are truthful. Broadened in 1972, this program now requires advertisers to substantiate their claims before an ad appears. 95) B This scenario is an example of advertising substantiation. In 1971, the FTC’s advertising substantiation program required advertisers to have supporting documentation for their claims and to prove the claims are truthful. Broadened in 1972, this program now requires advertisers to substantiate their claims before an ad appears. 96) B A consent order is an agreement to stop the practice or advertising in question. This agreement is for settlement purposes only and does not constitute an admission of guilt by the advertiser. 97) C An advertiser can agree to negotiate a settlement with the FTC by signing a consent order, which is an agreement to stop the practice or advertising in question. This agreement is for settlement purposes only and does not constitute an admission of guilt by the advertiser. 98) C The Wheeler-Lea Amendment empowers the FTC to issue a cease-anddesist order, which requires that an advertiser stop the specified advertising claim within 30 days and prohibits the advertiser from engaging in the objectionable practice until after a hearing is held. 99) C

Version 1

The Wheeler-Lea Amendment empowers the FTC to issue a cease-anddesist order, which requires that an advertiser stop a specified advertising claim within 30 days and prohibits the advertiser from engaging in the objectionable practice until after a hearing is held. 100) D To address the problem of residual effects, in the 1970s, the FTC developed a program known as corrective advertising. An advertiser found guilty of deceptive advertising can be required to run additional advertising designed to remedy the deception or misinformation contained in previous ads. 101) C The impetus for corrective advertising was a case involving Campbell Soup, which when making a photo for an ad, placed marbles in the bottom of a bowl of vegetable soup to force the solid ingredients to the surface, creating a false impression that the soup contained more vegetables than it really did. 102) E Corrective advertising is probably the most controversial of all the FTC programs. 103) B The Federal Communications Commission (FCC), founded in 1934 to regulate broadcast communication, has jurisdiction over the radio, television, telephone, and telegraph industries. 104) B In 1991, the Children’s Television Act went into effect. The act limits advertising during children’s programming to 10.5 minutes an hour on weekends and 12 minutes an hour on weekdays.

Version 1

105) D Under the Reagan administration, the controversial Fairness Doctrine, which required broadcasters to provide time for opposing viewpoints on important issues, was repealed on the grounds that it was counterproductive. 106) D Under the Fairness Doctrine, the FCC required stations to run commercials about the harmful effects of smoking before passage of the Public Health Cigarette Smoking Act of 1970, which banned broadcast advertising of cigarettes. 107) E The Food and Drug Administration (FDA) has authority over the labeling, packaging, branding, ingredient listing, and advertising of packaged foods and drug products, as well as cosmetics. 108) D In 1996, President Bill Clinton signed an executive order declaring that nicotine is an addictive drug and giving the Food and Drug Administration (FDA) board jurisdiction to regulate cigarettes and smokeless tobacco. 109) A The U.S. Postal Service has control over advertising involving the use of the mail and ads that involve lotteries, obscenity, or fraud. 110) E The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) is an agency within the Treasury Department that enforces laws, develops regulations, and is responsible for tax collection for the liquor industry. 111) C Version 1

The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) is an agency within the Treasury Department that enforces laws, develops regulations, and is responsible for tax collection for the liquor industry. 112) C The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) regulates and controls the advertising of alcoholic beverages. 113) C While most advertisers rely on self-regulatory mechanisms and the FTC to deal with deceptive or misleading advertising by their competitors, many companies are filing lawsuits against competitors they believe are making false claims. One piece of federal legislation that has become increasingly important in this regard is the Lanham Act. 114) D This scenario is an example of the usage of the Lanham Act. While the FTC Act did not give individual advertisers the opportunity to sue a competitor for deceptive advertising, civil suits are permitted under the Lanham Act. 115) C In this scenario, Pacifix Crust can launch a lawsuit against Roberto’s on the basis of the Lanham Act. Increasingly, companies are using the Lanham Act to sue competitors for their advertising claims, particularly since comparative advertising has become so common. 116) B This scenario is an application of the Lanham Act. Over the years, there has been a significant increase in the use of comparative advertising, and it has resulted in more and more companies suing one another under the Lanham Act.

Version 1

117) D The FTC is scrutinizing the use of testimonial ads more carefully, particularly with respect to the use of a “results not typical” disclosure in situations where the outcomes are more likely to vary substantially than be typical for most consumers. 118) A An important early development in state regulation of advertising was the adoption in 44 states of the Printers Ink model statutes as a basis for advertising regulation. 119) D The National Association of Attorneys General (NAAG) moved against a number of national advertisers as a result of inactivity by the FTC during the Reagan administration. 120) C The Federal Trade Commission regulates many areas of sales promotion through the Marketing Practices Division of the Bureau of Consumer Protection. 121) C The Federal Trade Commission has stepped up its efforts to stop fraud that targets financially distressed customers and is focusing attention on protecting consumers’ online privacy and the collection of sensitive information, particu-larly for those using social media such as Facebook and Twitter. 122) B

Version 1

A promotion is considered a lottery if a prize is offered, if winning a prize depends on chance and not skill, and if a participant is required to give up something of value in order to participate. The latter requirement is referred to as consideration and is the basis on which most contests, games, and sweepstakes avoid being considered lotteries. 123) C This scenario explains the condition for a promotion not to be classified as a lottery. A promotion is considered a lottery if a prize is offered, if winning a prize depends on chance and not skill, and if a participant is required to give up something of value in order to participate. Generally, as long as consumers are not required to make a purchase to enter a contest or sweepstakes, consideration is not considered to be present and the promotion is not considered a lottery. 124) C A promotion is considered a lottery if a prize is offered, if winning a prize depends on chance and not skill, and if a participant is required to give up something of value in order to participate. Generally, as long as consumers are not required to make a purchase to enter a contest or sweepstakes, consideration is not considered to be present and the promotion is not considered a lottery. 125) B A recent study of children’s advertising commissioned by CARU found the single most prevalent violation involved devoting virtually an entire commercial message to information about a premium. CARU guidelines state that advertising targeted to children must emphasize the product rather than the premium offer. 126) C

Version 1

Marketers using various types of trade allowances must be careful not to violate any stipulations of the Robinson-Patman Act, which prohibits price discrimination. 127) C In a high-profile case, the FTC issued a very important ruling against POM Wonderful LLC—a maker of juices, teas, and fruit—upholding an initial finding by an administrative law judge that the company had made a number of unsubstantiated claims for its pomegranate juice. One of the ads the company ran showed a bottle with a noose around its neck and the headline “Cheat Death” while the ad copy claimed that the juice “can help prevent premature aging, heart disease stroke, Alzheimer’s, even cancer. Eight ounces a day is all you need.” 128) B The FTC and the Postal Service police direct-response advertising closely to ensure the ads are not deceptive or misleading and do not misrepresent a product or service being offered. Laws forbid mailing unordered merchandise to consumers, and rules govern the use of “negative option” plans whereby a company proposes to send merchandise to consumers and expects payment unless the consumer sends a notice of rejection or cancellation. 129) D The American Legacy Foundation (ALF) is well known for campaigns like truth®, which was launched in 2000 and is the largest national youth smoking prevention campaign. 130) A

Version 1

Facebook changed its policy to prohibit marketers from “like-gating” a page to gain access to content or enter a contest. Facebook said the change was made to make sure people are liking pages because they truly want to connect with a business or brand, not because they were enticed by artificial incentives such as promotional offers.

Version 1

CHAPTER 21 TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) An action that is legal is always ethical. ⊚ ⊚

true false

2) The American Advertising Federation requires that members of the team creating ads should be given permission to express internally their ethical concerns. ⊚ ⊚

true false

3) Critics argue that advertising plays a major role in influencing and transmitting social values. ⊚ ⊚

true false

4) Critics of advertising argue that consumers ignore ads for products and services they do not really need or that fail to interest them. ⊚ ⊚

true false

5) Advertising has been guilty of stereotyping women and ethnic groups in the past and, in some cases, still does so. ⊚ ⊚

true false

6) The International Advertising Association has been running a campaign for several years to convince consumers around the world of the economic value of advertising. ⊚ ⊚

Version 1

true false

7) The global campaign launched by the American Advertising Federation (AAF) was targeted at members of the creative teams in ad agencies who were primarily responsible for the message and presentation. ⊚ ⊚

true false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 8) A particular action may be within the law and still not be ethical. For example, ________ laws restrict tobacco companies from targeting advertising and promotion for new brands to a select group. A) local B) international C) national D) no E) state

9) Most advertisers do not design their messages with the intention to mislead or deceive consumers. Alcohol advertising is regulated by the A) Tobacco and Trade Bureau (TTB). B) Tobacco and Tax Bureau (TTB). C) Tobacco Tax and Trade Bureau (TTB). D) Tobacco Trade and Tax Bureau (TTB). E) Trade and Tobacco Tax Bureau (TTB)

10)

Untruthful or fraudulent advertising and promotion exist more at the ________ level.

Version 1

A) local B) state C) national D) international

11) Evaluating the credibility of information received by youth is a responsibility for marketing and advertisers. According to the ________, advertisers have a special responsibility to protect children from their own susceptibilities. A) Children’s Advertising Review Unit B) Children’s Marketing Review Center C) Center for Children’s Advertising Review D) Children’s Marketing Review Unit E) Center for Advertising Review

12) A recent survey of 33,000 people showed that the level of trust for both traditional and search media hit an all-time high of 65 percent. Nevertheless, the trust in media ________ remains the lowest of any institution trusted worldwide. A) locally B) internationally C) nationally D) domestically E) by state

13)

Which of the following statements is true of advertising and promotion? A) They are the most visible of all business activities. B) They are less common in a free-market economy. C) They are not subject to governmental regulation. D) The methods they use are less prone to scrutiny. E) They are the least prevalent of all marketing tools.

Version 1

14) ________ are moral principles and values that govern the actions and decisions of an individual or group. A) Regulations B) Guidelines C) Policies D) Ethics E) Norms

15)

Which of the following statements is true of the relationship between law and ethics? A) All ethical actions are legal. B) An action may be within the law and still not be ethical. C) Legal actions are typically not treated as ethical actions. D) Ethical actions will not have legal implications. E) All legal actions are ethical.

16) A lapse in ethical standards or judgment in advertising and promotion can be more damaging to a company than a lapse in other disciplines. Which of the following is a reason for this? A) Advertising and promotional actions are highly visible and subject to scrutiny. B) Advertising and promotion are the least expensive of all marketing efforts. C) Customers are more aware of the activities within an organization than they are of its marketing techniques. D) Governments do not regulate the flow of information in the other disciplines. E) There is a two-way interaction between marketers and audience in advertising and promotion.

17) Stall 5 Inc. claims to be a marketing services provider. It posts online ads that offer freebies to viewers who are willing to sign up for its newsletter. It tricks viewers into providing personal information and delivers no freebies or services in return. Critics of advertising are likely to call this a(n) ________ ad. Version 1

A) offensive B) distasteful C) boring D) ethical E) deceptive

18) ScH Corp., a pharmaceutical company, launches a new painkiller. It claims that the product provides relief within two minutes due to its unique ingredients. Tests reveal that ScH’s painkiller contains the same ingredients as those of its competitors and that relief is not guaranteed in all cases. Critics would classify this as a(n) ________ advertisement. A) ethical B) odious C) deceptive D) offensive E) asocial

19) A study by John Wirtz analyzing thousands of participants’ reactions to sexy ads found that sexy ads were remembered for longer and they had ________ impact on sales. A) a major B) a minor C) no D) a minimal E) a huge

20) When advertisers make false or misleading claims or fail to award prizes promoted in a contest or sweepstakes, their ads are likely to be labeled as

Version 1

A) deceptive. B) playful. C) childish. D) intrusive. E) ineffective.

21)

A common criticism of inappropriate sexual appeals in advertisements is that they A) are deceptive in nature. B) mislead consumers. C) are conservative and boring. D) make false claims. E) demean women.

22) Which of the following are critics of advertising likely to state as a reason that marketers engage in deceptive advertising? A) Most products in the market are not of good quality. B) Advertisers usually present only information that is favorable to their position. C) The National Advertising Review Council does not regulate deceptive advertisements. D) Studies have found that deceptive advertisements increase sales drastically. E) Unlike other unethical practices, deceptive advertising has no legal implications.

23)

Which of the following statements is true of advertising for condoms?

A) States prohibit advertising condoms unless it is part of a health campaign. B) Ads for condoms are permitted on cable television but not on the major networks. C) Ads for condoms are considered offensive and are legally prohibited from appearing in print media. D) Health-oriented ads are not as well received by conservatives as are entertaining ads. E) Condom ads were shown only in late-night time slots until recently.

Version 1

24) An automobile dealer gives away promotional calendars to customers. The calendars show scantily clad female models posing suggestively alongside expensive cars. Critics of advertising would argue that such calendars are A) untruthful. B) misleading. C) deceptive. D) in poor taste. E) antisocial.

25) Which of the following is the right classification for advertisements that project sexually appealing images that don’t have much relevance to the products that they advertise? A) deceptive advertising B) misleading advertising C) offensive advertising D) untruthful advertising E) ethical advertising

26) The advertising appeals that have received the most criticism for being in poor taste are those using A) misrepresentations. B) violence. C) sexual appeals. D) deceptive claims. E) celebrities.

27) According to research, which of the following products have the reputation of producing the most irritating commercials?

Version 1

A) soft drinks B) industrial machinery C) alcoholic beverages D) feminine hygiene products E) insurance services

28) Advertisers continue to use sexual appeals to advertise products such as beer, cigarettes, and cosmetics despite increased criticism from all corners. Which of the following reasons best explains this advertising trend? A) Sexual appeals in ads can help draw consumers’ attention to the brands being advertised. B) Sexual appeals have a strong association with these kinds of products. C) Sexual appeals in ads are perceived as relevant and acceptable by men and women equally. D) Sexual appeals are common in movies and TV shows and have thus become necessary in ads. E) Sexual appeals offer a strong positioning strategy that results in greater brand loyalty.

29) The type of advertising appeals that have received the most criticism for being in poor taste are A) ads targeted at children. B) fear appeals used to sell beauty products. C) ill-humored ads that make fun of the socially inept. D) ads that use sex or nudity. E) unfair comparative ads used by competing brands.

30) In ________, marketers use nudity, sexual suggestiveness, or other startling images to get consumers’ attention.

Version 1

A) surrogate advertising B) open advertising C) shock advertising D) covert advertising E) classified advertising

31)

Advertisers use shock advertising primarily to A) increase the brand association of certain products. B) get consumers’ attention amid the clutter. C) create an ethical model of shock advertising for others to follow. D) avoid controversy and scrutiny and deliver a direct message. E) reach conservative or older audiences.

32) Manufacturers of products such as beer often use nudity, sexual suggestiveness, or other startling images to get consumers’ attention. Which of the following terms best represents this practice? A) covert advertising B) surrogate advertising C) open advertising D) shock advertising E) hidden advertising

33) Print ads for Brooke’s Clothing Inc. often include nude pictures and content that is sexually suggestive. Which of the following types of advertising is Brooke’s using? A) shock advertising B) surrogate advertising C) open advertising D) covert advertising E) hidden advertising

Version 1

34)

Advertisers spend billions of dollars each year to reach children because A) they are not vulnerable to advertising. B) their direct purchases are influenced by ads. C) they can easily interpret the selling intent of a message. D) they do not have much influence on their family’s spending. E) products made for children are more saleable.

35) Critics state that advertising to children is inherently unfair and deceptive and should be banned or severely restricted. Which of the following statements supports this argument? A) Most advertisements shown in traditional media contain nudity. B) Children have a limited ability to interpret the selling intent of a message. C) Most advertisements shown in traditional media contain violence. D) Children do not have spending power though they can identify products. E) The consumer socialization process is slower in children than in adults.

36) Nina argues that it is unfair and deceptive to advertise to children. Which of the following statements is likely to strengthen her argument? A) Children can differentiate between commercials and programs. B) Children can perceive the selling intent of commercials. C) Children require no guidance to distinguish between reality and fantasy. D) Children require cognitive defenses against misleading advertisements. E) Children require their parents to make the actual purchase.

37)

Which of the following best describes the consumer socialization process?

Version 1

A) It refers to how marketers influence consumers to move from need recognition to final purchase. B) It explains why consumers will never completely abandon department store shopping for online shopping. C) It explains how marketers engage consumers in relationship marketing. D) It refers to consumers acquiring the skills needed to function in the marketplace. E) It refers to marketers studying consumers’ social skills to understand the market.

38) From an advertising perspective, which of the following statements best explains why critics might be opposed to the use of commercial characters or brand mascots as stars of TV shows? A) Preschool children cannot differentiate between commercials and programs. B) Such shows come with requirements for parental guidance and control. C) Such shows contain violence that is unsuitable for preschool children. D) There are too many commercial slots in these shows. E) Children needn’t understand advertising to use their cognitive defenses against them.

39) Maya argues that advertising to children is unethical. If Talia disagrees with her, which of the following arguments offered by Talia is the most plausible? A) Young children can differentiate between advertisements and programs. B) Children can differentiate between reality and fantasy. C) Children can use their cognitive defenses against misleading ads. D) Existing restrictions are enough to control children’s advertising. E) Advertising is a part of life and children must learn to deal with it.

40) Which of the following statements is true of the Children’s Advertising Review Unit (CARU)?

Version 1

A) It is a division of the Federal Trade Commission. B) It limits its review to print media; it does not cover special effects and animation. C) It has strict regulatory guidelines for product presentations directed to children. D) It supervises the advertisements in the United States rather than issuing selfregulatory guidelines. E) It bases its regulations on the protection of children’s rights as defined by the Constitution.

41) Which of the following justifications did marketing and advertising trade groups use to defend themselves against the American Psychological Association’s (APA’s) restrictions on advertising? A) Parents of younger children, rather than the children themselves, make purchase decisions. B) Products for children are also commercial merchandise that requires advertising. C) Products for children require more awareness than other commercial products. D) Children are less aware of their needs compared to adults. E) Viewing such advertisements is a part of the consumer socialization process in children.

42) Which of the following is a condition that exists in the Children’s Advertising Review Unit (CARU) guidelines for advertising? A) Manufacturers of baby-care products should not advertise their products through fictional characters. B) Children’s toys should be advertised only in print media. C) Advertisers should be cautious not to run baby-care advertisements during prime time. D) Advertisements targeting children should be withdrawn from mainstream channels. E) Care should be taken to incorporate minority and other groups in advertisements.

43) The Children’s Advertising Review Unit (CARU) guidelines urge that products and content inappropriate for children should not be advertised or promoted Version 1

A) directly to children. B) through mainstream channels. C) to children or their parents. D) through traditional media. E) during prime time.

44) The Children’s Advertising Review Unit (CARU) guidelines urge that care should be taken to incorporate minority and other groups in advertisements A) to encourage racial and ethnic stereotypes. B) to project a nonracial image of the United States. C) to control the number of advertisements that are shown on TV channels. D) to present positive and pro-social roles and role models wherever possible. E) as a means to promote appeals to prejudice toward gender roles.

45) PlayNet Inc., a toy manufacturer, believes that it is important to communicate directly with children rather than with their parents. To avoid ethical issues, which of the following considerations should PlayNet keep in mind while advertising? A) Ads should be such that children’s cognitive defenses are required to screen messages. B) Fantasy characters must be used to sell products that children may not desire as much. C) The same tools used to reach adults must be used for children for an effective reach. D) The advertisement must be sensitive to the naiveté of children as consumers. E) Communication that creates a strong need for the product must be designed.

46) When Abercrombie & Fitch (A&F) CEO Mike Jeffries bragged about being exclusionary and only marketing to cool, good-looking people who were not too large, the result was

Version 1

A) the lowest ratings in the 2016 American Customer Satisfaction Index. B) a decrease in sales at competitor H&M. C) an increase in A&F stock prices. D) stronger brand loyalty from cool, good-looking people. E) a change in stereotypes.

47)

A social influence agent, advertising is criticized because it encourages A) liberating consumers and controlling the media. B) maternalism and perpetuating stereotypes. C) manipulating minimalism, perpetuating stereotypes, and controlling the media. D) materialism, manipulating consumers, and perpetuating stereotypes. E) breaking stereotypes and controlling the media.

48)

There is a consensus among all groups that advertising A) does not create false needs in consumers. B) attempts to discourage materialism in society. C) has a more positive social influence than a negative one. D) is an important social influence agent. E) minimizes stereotypes about people and groups.

49)

One of the criticisms of advertising is that it A) perpetuates stereotypes. B) is not aggressive enough. C) lacks detailed information. D) discourages capitalism. E) is unable to control other media content.

Version 1

50) Advertising for products such as expensive clothing, jewelry, and luxury automobiles is often criticized for promoting A) differentiation. B) shock advertising. C) materialistic values. D) brand recognition. E) economies of scale.

51) Many believe that materialism is an acceptable part of ________, which stresses hard work and individual effort and initiative and views the accumulation of material possessions as evidence of success. A) capitalism B) the school of hard knocks C) the First Amendment D) the rite of passage E) the Protestant ethic

52) The decrease in _________ has those publications reducing their publication schedules and beginning to charge or increase rates for online subscriptions. A) magazine subscriptions B) digital subscriptions C) journal subscriptions D) newspaper subscriptions E) website subscriptions

53) Jake argues that ads with sex appeals are offensive and ineffective. Dan disagrees and feels that creativity must be respected in all art forms. Which of the following statements is likely to strengthen Jake’s argument?

Version 1

A) Ads with sex appeal have high stopping power. B) Ads with sex appeal are enjoyed by men and women equally. C) Ads with sex appeal reach only a focused audience. D) Ads with sex appeal objectify women and demean them. E) Ads with sex appeal increase the strength of brand identity.

54) Tara argues that ads with sex appeals are in bad taste and ineffective in influencing the target audience. Amy disagrees and is of the opinion that these ads are effective as long as they fulfill the marketing objective. Which of the following statements is likely to strengthen Amy’s argument? A) Ads with sex appeal have high stopping power. B) Ads with sex appeal are enjoyed by men and women equally. C) Ads with sex appeal are dismissed by conservatives. D) Ads with sex appeal objectify women and demean them. E) Ads with sex appeal could distract viewers from the product.

55)

Attitudes toward the use of sex in advertising is a polarizing issue because A) sexual ads promote a deterioration of moral and social values. B) the use of sex in ads is demeaning for the actors. C) sexual ads have high stopping power and easily attract attention. D) everyone agrees that some sexual ads are inappropriate while some aren’t. E) different people have different values and religious orientations.

56) Advertisements often seek to create needs rather than merely show how a product or service fulfills them. Many critics claim that this aspect of advertising has an adverse effect on consumers’ values. Which of the following is the main reason for this claim?

Version 1

A) Creating needs is likely to discontinue social stereotyping. B) Consumers are always aware of the difference between needs and wants. C) Creating needs encourages materialism in people. D) Advertising leads to easily-content individuals. E) Marketers who create needs are likely to gain a greater market share.

57) Critics say that by surrounding consumers with images of extravagant lifestyles and by showing products as symbols of status and success, advertising is likely to A) promote a sense of patriotism. B) initiate positive consumer socialization. C) raise awareness against stereotypes. D) reduce people’s needs and wants. E) encourage materialism.

58) ________ is a preoccupation with accumulating possessions rather than intellectual or spiritual concerns. A) Idealism B) Naturalism C) Ethnocentrism D) Materialism E) Mysticism

59) Those who value individual effort and hard work and believe that material possessions are evidence of success are likely to accept materialism as a part of the A) socialist culture. B) Protestant ethic. C) communist ideal. D) spiritualist way of life. E) feminist movement.

Version 1

60) For which of the following product categories is the advertising most likely to be criticized as promoting materialistic values? A) consumer goods B) industrial machinery C) health products D) transportation services E) alcoholic beverages

61) Which of the following products’ advertisements is least likely be criticized for encouraging materialism? A) expensive cars B) diamond jewelry C) wind turbines D) specialty foods E) furniture

62)

Critics argue that a major contributor to materialism is advertising that A) seeks to fulfill existing needs rather than creating new needs. B) implies that accumulation of possessions can lead to a content life. C) promotes equality of ethnic and racial minorities. D) states that physical goods cannot be symbols of respect and dignity. E) voices against social stereotypes and gender inequalities.

63)

Which of the following supports the view that advertising encourages materialism?

Version 1

A) Most advertisements are shown during prime time. B) Ads seek to create needs rather than show how a product fulfills needs. C) Advertising seeks to promote intellectual rather than materialistic growth. D) Many ads are broadcast through nontraditional media. E) Advertisements promote violence rather than showing images of the good life.

64) Which of the following statements supports the idea that advertisements do not promote materialism? A) Advertisements create brand loyalty. B) Material possessions are indicators of status and success. C) Advertisements can increase or decrease the price elasticity. D) Consumers’ values are defined by the society in which they live. E) Advertising can create needs that did not exist before.

65) Which of the following components is most likely to be reflected in an informational advertisement? A) elevation of social status from using the product B) celebrities who use the product C) performance and availability of the product D) attractive appearance of the product E) emotional fulfillment from using the product

66) Which of the following is a component most likely to be present in a persuasive advertisement? A) price B) performance C) social status D) availability E) specifications

Version 1

67) Track Inc., a bike manufacturer, decides to launch a new model. If Track decides to use a persuasive rather than an informational strategy, which of the following components is likely to be the focus of the advertisement? A) price B) performance C) durability D) specifications E) attractiveness

68) Space-it-out Design Inc. launches a new range of furniture. The marketing head, Sana, wants to change the advertising strategy from persuasive to informational. Which of the following components is she most likely to remove from the existing advertisement? A) price B) performance C) comfort D) availability E) attractiveness

69)

Persuasive advertising is criticized for A) ignoring the psychological needs of consumers. B) fostering discontent among consumers. C) encouraging people to focus on intellectual growth. D) providing too much information in advertisements. E) ignoring consumers’ emotions and anxieties.

70) ________ advertising is criticized for fostering discontent among consumers and encouraging them to purchase products and services as a way of dealing with deeper problems.

Version 1

A) Educative B) Social-awareness C) Persuasive D) Informational E) Knowledge-based

71) Most critics of advertising tolerate informative advertisements better than persuasive advertisements. Which of the following reasons best explains why it is hard to engage in only informational advertising? A) Customers also want to obtain information from sources other than advertising. B) Information presented in advertisements often lacks credibility. C) It is difficult to separate informational advertising from persuasive advertising. D) Customers would not buy products or services without being persuaded. E) Advertisements should create needs for marketers to reach their profit objectives.

72) Which of the following statements supports defenders of persuasive advertising in terms of Maslow’s hierarchy of needs theory? A) It is natural for individuals to move to higher-order needs such as self-esteem. B) The basic needs of all individuals are not met in society. C) Advertising determines how well people can satisfy their basic needs. D) Consumers lack the ability to defend themselves against persuasive advertisements. E) Consumers do not have the freedom to make their own purchase decisions.

73) Which of the following statements can proponents of advertising use against the charge that advertising makes people buy things they do not need?

Version 1

A) Customers benefit from the economies of scale that occur due to persuasive advertising. B) Consumers have the freedom to make their own choices when confronted with persuasive advertising. C) Materialism is an important freedom of choice in an individualistic society. D) Advertising provides information on basic needs to customers rather than persuading them. E) Most persuasive advertisements do not use emotional appeals to persuade customers.

74)

Portrayals of adult women on American television and in print advertising emphasize A) passivity. B) credibility. C) self-dependence. D) need for power. E) intelligence.

75)

American television and print advertising have portrayed men as A) passive. B) deferent. C) achieving. D) lacking intelligence. E) dependent.

76) Research has shown that nonverbal behaviors involving ________ are associated more with boys than girls.

Version 1

A) passivity and knowledge B) dominance and control C) aggression and lack of credibility D) passivity and trustworthiness E) aggression and lack of knowledge

77) Which of the following groups in the United States argues that advertising that portrays women as sex objects contributes to violence against women? A) Advertising Research Foundation B) American Advertising Federation C) American Women’s Association D) American Psychological Association E) National Organization for Women

78) Which of the following groups in the United States has been critical of advertisers for the way they portray women in advertisements for clothing, cosmetics, and other products? A) Advertising Research Foundation B) American Advertising Federation C) American Association of Advertising Agencies D) American Women’s Association E) National Organization for Women

79) Which of the following has had a profound impact in reducing sexism and stereotyping in advertising? A) decrease in the purchasing power of American women B) increase in portrayal of women as submissive C) increase in the number of working women D) decrease in portrayal of women as independent E) increase in the number of economically dependent women

Version 1

80) Which of the following statements is true of advertising targeted to African American and Hispanic consumers? A) For many years, advertisers ignored African American and Hispanics as identifiable subcultures and viable markets. B) Over the past two decades, marketing and advertising programs targeted at African American consumers have decreased. C) Hispanics or African American have always appeared more often in TV advertisements than white people. D) The use of Hispanic people as spokespersons has been prevalent since the conception of print ads. E) Hispanics and African American together constitute the largest consumer group in the United States.

81)

Which of the following is a reason for the increased attention to multicultural marketing? A) increase in the purchasing power of ethnic minorities B) increase in the budget allotted to advertising C) decrease in a multicultural workforce in large corporations D) emergence of white females in key agency roles E) insufficient policies that focus on antidiscriminatory practices

82) Which of the following statements is true of trends in advertising targeted to the gay community? A) Gay-themed ads are generally limited to spot TV. B) Most gay themes in mainstream commercials openly show the intent. C) The number of advertisers turning to gay themes in mainstream commercials is decreasing. D) Most advertisers run gay-themed ads on network television. E) Unambiguous gay themes are more common than unclear themes.

Version 1

83) Media often avoid certain topics or even present biased news coverage, in compliance to advertiser demands. Which of the following terms represents this practice? A) Protestant ethic B) stereotyping C) economic censorship D) consumer socialization E) shock advertising

84) Yevon Inc., a manufacturer of fruit-based beverages, runs its ads on a particular news station. It packages the drinks in boxes and plastic bottles. A recent study done by a local doctor reveals that there is a direct correlation between stomach infections and drinking from juice boxes. Although the doctor does not mention any brand names, the news station decides not to air the news report in compliance with Yevon, its prime sponsor. This is an example of A) media stereotyping. B) consumer socialization. C) economic censorship. D) shock advertising. E) the Protestant ethic.

85) A magazine decides to run an article on the ill effects of certain types of cosmetics and the harm they cause to skin in the long run. The article includes facts given by environmentalists who are opposed to animal testing. However, in compliance with one of its lead sponsors, the magazine drops the facts on animal testing and writes only about skin-related issues. This is an example of A) shock advertising. B) the Protestant ethic. C) media stereotyping. D) consumer socialization. E) economic censorship.

Version 1

86) Which of the following facts has led to a concern that advertisers may influence or even control the media? A) The Constitution guarantees advertisers the freedom of speech. B) Disclosure laws in the United States are relatively strong. C) Most consumers tend to distrust the media. D) Most consumers tend to be skeptic of persuasive advertising. E) Advertising plays an important role in financing the media.

87) Which of the following is the most important source of revenue for newspapers and magazines? A) sales B) subscriptions C) editorials D) advertising E) donations

88) Which of the following are most likely to be susceptible to pressures from advertisers on the type of stories to run? A) high-revenue media companies B) large broadcast stations C) popular radio stations with high audience ratings D) financially insecure magazines E) newspapers with a diverse range of advertisers

89) Which of the following is a strong argument against the charge that advertisers control the media?

Version 1

A) All media can obtain advertisements from a variety of sources and hence cannot be influenced. B) Advertisers have very little influence in determining the earnings of most media companies. C) Most advertisers have a diverse array of media to choose from and hence do not have to influence a particular medium. D) To retain public confidence, media must report the news fairly and accurately without showing bias. E) News and business departments work together as a unit to minimize the effects of biased influences.

90) Which of the following is a plausible reason to argue that advertisers do not exert undue influence over the media? A) Media does not often show advertisements with sexual content. B) Advertisements help the media reduce its costs of operation. C) Only a few large companies are influenced by the effect of biased advertising. D) An advertiser needs the media more than the media needs any individual advertiser. E) Only minor media companies are subject to economic censorship by influential brands.

91) A newspaper editor who talks about “The Wall” with respect to in-house operations is referring to A) the difference between veteran and cub reporters. B) the formal separation of the newspaper’s editorial staff and sales force. C) how difficult it is to access certain information from internal sources. D) the separation of classified advertising from other types of advertising. E) the lowest ad-placement rate accepted in the newspaper.

92) Most print media try to maintain “The Wall” within the organization in order to ensure independence and credibility. However, it is becoming increasingly difficult to maintain “The Wall.” Which of the following is the primary reason for this? Version 1

A) changes in the type of information in print media B) changes in advertising patterns C) increased competition from other media D) change in the attitude of advertisers E) increased customer awareness and price sensitivity

93) Which of the following alternatives run counter to most people’s desire for freedom of the press? A) nonprofit media campaigns B) pay-per-view television systems C) government-sponsored media D) private news channels E) self-financing media initiatives

94) One study of minorities represented in magazine print ads showed that ________ percent of all models used were African American. A) 6.6 B) 9.5 C) 53.4 D) 66 E) 83.8

95) Advertising not only informs customers of available goods and services but also leads to ________ in production, marketing, and distribution, which in turn lead to lower prices. A) differentiation B) barriers to entry C) materialistic values D) brand recognition E) economies of scale

Version 1

96) Able to allocate more monies to advertising so they can afford the costly but more efficient media like network television, ________ usually sell more of a product or service, which means they may have lower production costs. A) independent advertisers B) international advertisers C) large advertisers D) local advertisers E) creditable advertisers

97) Defenders of advertising point out a number of factors, such as price, product quality, distribution effectiveness, production efficiencies, competitive strategies and even government legislation, that substantiate why it is unrealistic to attribute a firm’s market dominance and ________ solely to advertising. A) differentiation B) barriers to entry C) materialistic values D) brand recognition E) economies of scale

98)

Advertising plays a positive role in a free-market system by A) making consumers aware of products and services. B) creating needs that did not exist before. C) encouraging materialistic values in society. D) creating barriers to entry for smaller brands. E) making products highly differentiated.

99)

Which of the following is a major benefit of advertising?

Version 1

A) It limits the earning potential of larger companies and maximizes the potential of smaller companies. B) It leads to economies of scale in production. C) It encourages materialistic values in society. D) It helps in altering the collective values of society. E) It helps nations discourage individualistic values in citizens.

100) Some critics state that advertising hampers consumer choice. Which of the following is the most reasonable justification for this argument? A) Advertisers often provide informational rather than persuasive messages. B) Advertising discourages gender and social stereotyping. C) Advertisements can be used to create economies of scale. D) Advertising creates the perception that the advertised product is unique. E) Advertising minimizes the effect of economic censorship.

101) Larger companies often end up charging higher prices and achieve a more dominant position in the market than smaller firms that cannot compete against them and their large advertising budgets. When this occurs, advertising A) helps quality products from smaller brands reach the target audience. B) increases the choice of alternatives for consumers. C) becomes a substitute for competition based on price. D) encourages competition based on product improvement. E) discourages large brands from becoming market leaders.

102) As a result of advertising, the products or services of large advertisers are perceived as unique or better than competitors’ products. This is referred to as

Version 1

A) diversification. B) scalability. C) economies of scale. D) innovation. E) differentiation.

103) Vendre Inc., a clothing company, spends over $2 billion annually on advertising for its various products. It gains market leadership even though other, smaller brands produce products of higher quality and offer better prices. This is an example of how a large advertiser can help achieve a competitive advantage based on A) differentiation. B) economies of scale. C) economic censorship. D) diversification. E) the Protestant ethic.

104) Large advertisers usually sell more of a product or service, which means they may have lower production costs and can allocate more monies to advertising, so they can afford the costly but more efficient media like network television. Which of the following phenomena describes this effect? A) economies of scale B) economic censorship C) diversification D) Protestant ethic E) differentiation

105)

Consumer advocates argue that advertising

Version 1

A) should create brand loyalty rather than provide mere information. B) is useful to consumers as it creates an equal and content society. C) makes consumers aware of their needs, rather than creating needs. D) reduces the market power of large companies. E) costs are expenses that make the price higher for consumers.

106)

Critics of advertising argue that barriers to entry are likely to A) decrease market concentration. B) assist new brands in gaining a market share. C) make larger brands give up market dominance. D) increase consumer awareness of smaller, more efficient brands. E) cause entrants to spend more on advertising.

107) Turn Inc., a large consumer-goods manufacturer, has a strong brand loyalty created by effective advertising over the years. Tim states that this kind of advertising causes barriers to entry, while Joan argues that this is not the case. Which of the following statements supports Joan’s argument? A) Turn Inc. is the market leader in the industry. B) Smaller brands spend more than Turn Inc. does on advertising. C) Autumn Corp., a new brand, gains an equal market share to Turn Inc. D) Neil Read Inc., a small-scale magazine, rejects other sponsors to accommodate Turn Inc.’s ads. E) There is high market concentration in the industry caused by Turn Inc. and other leading brands.

108) Topaz is a brand of wrist watches manufactured by Krypton Inc. Krypton spends little money on its advertising, yet Topaz is a highly successful brand owing to its attractive features, exquisite design, and performance. The success of Topaz can be interpreted as evidence that

Version 1

A) advertising increases product costs and prices. B) advertising is a major barrier to entry. C) product quality is an important determinant of a brand’s success. D) advertising is not needed for a brand to be successful. E) advertising can minimize competition based on product improvement.

109) Some critics state that advertising hampers consumer choice. Which of the following statements could weaken their argument? A) The opportunity to advertise gives companies the incentive to develop new brands. B) Advertising creates needs in society by changing people’s values. C) Advertising is not susceptible to the effect of economies of scale. D) Consumers become brand loyal and less sensitive to pricing due to advertising. E) Advertising results in differentiation that allows larger brands to dominate the market.

110)

From an economic perspective, advertising can lower prices of a product by A) creating barriers to entry for smaller firms. B) focusing more on persuasion than on quality. C) making a market more competitive. D) reducing the economies of scale. E) creating brand loyalties.

111) Critics point out that relatively homogenous products have price differentiation due to advertising. Which of the following products is likely to be in this category? A) aspirin B) wrist watches C) shower gel D) perfume E) computers

Version 1

112) Which of the following statements supports the ideology that advertising equals market power? A) Advertising does not change the way customers value various product attributes. B) Industry prices of products in the market decrease as a result of advertising. C) Advertising encourages new brands to enter the market. D) Only the relationship between price and quality affects elasticity for a product. E) Firms are insulated from market competition and they can be more discretionary.

113) Many argue that industry prices decrease as a result of advertising. Which of the following perspectives supports this view? A) Advertising equals market power. B) Advertising isolates markets. C) Advertising produces differentiation. D) Advertising equals brand loyalty. E) Advertising equals information.

114) Which of the following statements supports the “advertising equals information” ideology? A) Advertising affects consumer preferences and tastes. B) Consumers become brand loyal and less price sensitive due to advertising. C) Advertising makes entry possible for new brands. D) Advertisements help firms establish strong brand loyalty. E) Advertising makes customers highly inelastic.

115) The belief that advertising equals ________ reflects traditional economic thinking that views advertising as a way to change consumers’ tastes, lower their sensitivity to price, and build brand loyalty among buyers of advertised brands.

Version 1

A) empowerment B) information C) equality D) market power E) ethics

116) If a marketer for an established company believes that potential entrants to the marketplace must overcome established brand loyalty and spend relatively more on advertising, then he or she is likely to believe that advertising equals A) market power. B) ethics. C) information. D) empowerment. E) equality.

117) Marketers who believe that advertising equals ________ view advertising as providing consumers with useful facts of the products and increasing competition in the market. A) economies of scale B) materialism C) differentiation D) market power E) information

118) According to the “advertising equals information” ideology, advertising causes consumers to

Version 1

A) value product attributes differently. B) become brand loyal. C) become more price sensitive. D) perceive fewer substitutes for advertised brands. E) give up comparison of competitive offerings.

119)

Which of the following beliefs takes a positive view of advertising’s economic effects? A) Advertising equals materialism. B) Advertising equals market power. C) Advertising equals differentiation. D) Advertising equals brand loyalty. E) Advertising equals information.

120) According to the “advertising equals information” ideology, advertising makes entry possible for new brands because it A) can maintain brand loyalty for dominant brands. B) can provide more discretionary power to new brands. C) discourages product innovation. D) can communicate product attributes to consumers. E) can insulate accomplished firms from competition.

121) Which of the following is a major reason for the American Advertising Federation (AAF) to develop an integrated marketing communications (IMC) campaign? A) to provide proof for the advertising industry’s capabilities B) to redefine advertising in the eyes of corporate executives C) to encourage the development of new advertising agencies D) to help advertisers improve product differentiation E) to encourage purchase of more time and space in traditional media

Version 1

122) The ________ has been running a campaign for several years to convince consumers around the world of the economic value of advertising. A) Advertising Research Foundation B) Consumers International C) American Psychological Association D) Outdoor Advertising Association of America E) International Advertising Association

123) Which of the following is identified as the American advertising industry’s primary trade organization? A) American Advertising Federation B) Advertising Research Foundation C) Association of National Advertisers D) National Advertising Review Council E) Outdoor Advertising Association of America

124) The Great Brands campaign, developed by the American Advertising Federation, promoted the economic power of advertising by A) providing financial incentives to smaller firms in the industry. B) featuring companies synonymous with quality advertising. C) protesting against restrictions enforced by the Children’s Advertising Review Unit. D) voting against offensive and obnoxious advertising. E) enforcing restrictions on unethical and immoral advertising.

125) Which of the following statements is indicative of the “advertising equals market power” school of thought on advertising’s role in the economy?

Version 1

A) Advertising informs consumers about product attributes but does not change the way they value those attributes. B) Advertising causes consumers to become more price sensitive and buy best “value.” C) Advertising affects consumer preferences and tastes, changes product attributes, and differentiates the product from competitive offerings. D) Advertising makes entry possible for new brands because it can communicate product attributes to consumers. E) Consumers can compare competitive offerings easily and competitive rivalry increases.

Version 1

Answer Key Test name: Chap 21_12e 1) FALSE Ethics are moral principles and values that govern the actions and decisions of an individual or group. A particular action may be within the law and still not be ethical. 2) TRUE The American Advertising Federation (AAF) requires that advertisers and their agencies, and online and offline media, should discuss privately potential ethical concerns, and members of the team creating ads should be given permission to express internally their ethical concerns. 3) TRUE While a number of factors influence the cultural values, lifestyles, and behavior of a society, the overwhelming amount of advertising and its prevalence in the mass media lead many critics to argue that advertising plays a major role in influencing and transmitting social values. 4) FALSE Proponents of advertising argue that consumers ignore ads for products and services they do not really need or that fail to interest them. Critics argue that advertising creates needs that do not exist. 5) TRUE

Version 1

Advertising has been guilty of stereotyping women and ethnic groups in the past and, in some cases, still does so. But as the role of women changes, advertisers are changing their portrayals to remain accurate; they are also trying to increase the incidence of minority groups in ads while avoiding stereotypes. 6) TRUE The International Advertising Association has been running a campaign for several years to convince consumers around the world of the economic value of advertising. 7) FALSE The global campaign launched by the AAF was targeted at corporate executives who were responsible for establishing and maintaining budget levels for advertising. The theme of the campaign, “Advertising. The way great brands get to be great brands,” cautions corporate executives not to neglect their brand development. 8) D A particular action may be within the law and still not be ethical. A good example of this involves target marketing. No laws restrict tobacco companies from targeting advertising and promotion for new brands to African Americans, but most people would consider it unethical, especially given the high levels of lung cancer and smoking-related illnesses among the black population. 9) C

Version 1

Alcohol advertising is regulated by the Tobacco Tax and Trade Bureau (TTB). In regard to the regulations of these ads, the TTB has made this statement: “The First Amendment allows for a lot of freedom of speech in general and therefore limits how much the federal government can regulate advertising, even in regard to alcohol. In general, advertisements of alcoholic products must be truthful and without deception.” 10) A The problem of untruthful or fraudulent advertising and promotion exists more at the local level and in specific areas such as mail order, telemarketing, and other forms of direct marketing. 11) A Younger children have a limited capability for evaluating the credibility of information they receive. According to the Children’s Advertising Review Unit (CARU), advertisers have a special responsibility to protect children from their own susceptibilities. 12) B While there has been a slight increase in the level of trust in the media in the United States, the trust in media internationally remains the lowest of any institution trusted worldwide. The Edelman survey of 33,000 showed that the level of trust of traditional and search media hit an alltime high at 65 percent for both. 13) A Advertising and promotion are the most visible of all business activities and are prone to scrutiny by those who are concerned about the methods marketers use to sell their products and services. 14) D

Version 1

Ethics are moral principles and values that govern the actions and decisions of an individual or group. 15) B Ethics are moral principles and values that govern the actions and decisions of an individual or group. A particular action may be within the law and still not be ethical. 16) A Advertising and promotion are the most visible of all business activities. Advertising and promotion are areas where a lapse in ethical standards or judgment can result in actions that are highly visible and often very damaging to a company. 17) E The technique used by Stall 5 Inc. is untruthful and misleading, and it deceives the viewers by tricking them into providing personal information. Critics of advertising are likely to call this a deceptive ad. 18) C The advertisement for the painkiller is misleading and deceives consumers. Critics are likely to label this ad as deceptive. 19) C A study conducted by John Wirtz at the University of Illinois examined 78 studies conducted from 1969 to 2017 analyzing thousands of participants’ reactions to sexy ads. Men were shown to like the ads more than women and sexy ads were remembered for a longer period of time. However, there was no impact on sales. So, the old adage that “sex sells” is not necessarily true, according to Wirtz. 20) A

Version 1

One of the major complaints against advertising is that many ads are misleading or untruthful and deceive consumers. Sometimes advertisers make false or misleading claims or fail to award prizes promoted in a contest or sweepstakes. Such advertisements are called deceptive advertisements. 21) E A common criticism of sexual appeals is that they can demean women (or men) by depicting them as sex objects. Ads for cosmetics and lingerie are among the most criticized for their portrayal of women as sex objects and for being implicitly suggestive. 22) B Critics say that advertisers usually present only information that is favorable to their position and do not always tell consumers the whole truth about a product or service. This leads to deceptive advertisements that could be misleading. 23) E Advertising for condoms has now been appearing on TV for almost 20 years, but only in late-night time slots or on cable networks. However, in 2005, the broadcast networks agreed to accept commercials for condoms during prime time by agreeing to run health-oriented ads. 24) D In this scenario, the calendars would be criticized for being in poor taste and offensive. The advertising appeals that have received the most criticism for being in poor taste are those using sexual appeals such as suggestiveness and/or nudity. 25) C Ads that project sexual appeal without relevance are classified as offensive or in bad taste. Version 1

26) C The advertising appeals that have received the most criticism for being in poor taste are those using sexual appeals such as suggestiveness and/or nudity. 27) D There has been found to be a strong product class effect with respect to the types of ads consumers perceived as distasteful or irritating. The most irritating commercials tend to be for feminine hygiene products. Ads for women’s undergarments and hemorrhoid products were close behind. 28) A Techniques such as sexual appeal are often used to gain consumers’ attention and may not even be appropriate to the product being advertised. 29) D The advertising appeals that have received the most criticism for being in poor taste are those using sexual appeals such as suggestiveness and/or nudity. 30) C In shock advertising, marketers use nudity, sexual suggestiveness, or other startling images to get consumers’ attention. 31) B With the increasing clutter in the advertising environment, advertisers use shock advertising to catch the attention of consumers. Shock advertising involves marketers using nudity, sexual suggestiveness, or other startling images to get consumers’ attention. 32) D Version 1

In shock advertising, marketers use nudity, sexual suggestiveness, or other startling images to get consumers’ attention. 33) A In shock advertising, marketers use nudity, sexual suggestiveness, or other startling images to get consumers’ attention. 34) B Companies spend approximately $17 billion a year advertising to children. Children are targeted because the ads influence their purchases as well as influencing other family members’ purchases. 35) B Because of children’s limited ability to interpret the selling intent of a message or identify a commercial, critics charge that advertising to them is inherently unfair and deceptive and should be banned or severely restricted. 36) D Research has shown that children cannot differentiate between commercials and programs, do not perceive the selling intent of commercials, and cannot distinguish between reality and fantasy. Studies also reveal that children must understand how advertising works in order to use their cognitive defenses against it effectively. 37) D Consumer socialization process is the act of acquiring the skills needed to function in the marketplace. 38) A

Version 1

Critics argue that children, particularly young ones, are especially vulnerable to advertising because they lack the experience and knowledge to understand and critically evaluate the purpose of persuasive advertising appeals. Research has shown that preschool children cannot differentiate between commercials and programs, do not perceive the selling intent of commercials, and cannot distinguish between reality and fantasy. 39) E Those who disagree with the fact that advertising to children is unethical are likely to view advertising as a part of life. They contend that children must learn to deal with it in the consumer socialization process of acquiring the skills needed to function in the marketplace. 40) C Children are protected from the potential influences of commercials by network censors and industry self-regulatory groups such as the Council of Better Business Bureaus’ Children’s Advertising Review Unit (CARU). CARU has strict self-regulatory guidelines regarding the type of appeals, product presentation and claims, disclosures and disclaimers, the use of premiums, safety, and techniques such as special effects and animation. 41) A In defense to a report by the APA, marketing and advertising trade groups argue that parents of younger children, rather than the children themselves, make purchase decisions. 42) E

Version 1

The Children’s Advertising Review Unit guidelines suggest that care should be taken to incorporate minority and other groups in advertisements in order to present positive and pro-social roles and role models wherever possible. 43) A The Children’s Advertising Review Unit guidelines urge that products and content inappropriate for children should not be advertised or promoted directly to children. 44) D The Children’s Advertising Review Unit guidelines suggest that care should be taken to incorporate minority and other groups in advertisements in order to present positive and pro-social roles and role models wherever possible. 45) D It is important to many companies to communicate directly with children. However, only by being sensitive to the naiveté of children as consumers will they be able to do so freely and avoid potential conflict with those who believe children should be protected from advertising and other forms of promotion. 46) A By 2016, when the American Customer Satisfaction Index was released Abercrombie & Fitch received the lowest customer satisfaction ratings in the history of that measurement system, and sales continued to decline. 47) D

Version 1

While there is general agreement that advertising is an important social influence agent, opinions as to the value of its contribution are often negative. Advertising is criticized for encouraging materialism, manipulating consumers to buy things they do not really need, perpetuating stereotypes, and controlling the media. 48) D While there is general agreement that advertising is an important social influence agent, opinions as to the value of its contribution are often negative. 49) A Advertising is criticized for encouraging materialism, manipulating consumers to buy things they do not really need, perpetuating stereotypes, and controlling the media. 50) C Critics argue that a major contributor to materialism is advertising that suggests material possessions are symbols of status, success, and accomplishment and/or will lead to greater social acceptance, popularity, sex appeal, and so on. 51) E Many believe materialism is an acceptable part of the Protestant ethic, which stresses hard work and individual effort and initiative and views the accumulation of material possessions as evidence of success. 52) D The decrease in newspaper subscriptions has led some papers to reduce their publication schedules and begin charging or increasing rates for online subscriptions. 53) D Version 1

Critics who argue that ads with sex appeal are offensive are likely to point out that they portray women as sex objects and demean them. 54) A If ads with sex appeal have higher stopping power, they are likely to grab attention and cut through clutter. A person who finds ads with sex appeals effective is likely to be supported by this fact. 55) E Attitudes toward the use of sex in advertising is a polarizing issue as opinions regarding its use vary depending upon an individual’s values and religious orientation as well as by age, education, and gender. 56) C Critics argue that a major contributor to materialism is advertising that seeks to create needs rather than merely showing how a product or service fulfills them. 57) E Advertising seeks to create needs rather than merely showing how a product or service fulfills them. Advertising surrounds consumers with images of the good life and suggests the acquisition of material possessions leads to contentment and happiness and adds to the joy of living. Critics argue that these aspects of advertising encourage materialism. 58) D Materialism refers to a preoccupation with accumulating possessions rather than intellectual or spiritual concerns. 59) B

Version 1

Many believe materialism is an acceptable part of the Protestant ethic, which stresses hard work and individual effort and initiative and views the accumulation of material possessions as evidence of success. 60) E Many critics claim advertising has an adverse effect on consumer values by encouraging materialism, a preoccupation with material things rather than intellectual or spiritual concerns. Advertising for products such as expensive automobiles and luxury goods like clothing, jewelry, and alcoholic beverages is often criticized for promoting materialistic values. 61) C Advertising for products such as expensive automobiles and luxury goods like clothing, jewelry, and alcoholic beverages is often criticized for promoting materialistic values. 62) B Critics argue that a major contributor to materialism is advertising that surrounds consumers with images of the good life and suggests the acquisition of material possessions leads to contentment and happiness and adds to the joy of living. 63) B Many critics share the view that advertising is a major contributor to materialism because it creates needs rather than merely showing how a product or service fulfills the needs. 64) D Supporters of advertising say that advertising merely reflects the values of society rather than shaping them. They argue that consumers’ values are defined by the society in which they live and are the results of extensive, long-term socialization or acculturation.

Version 1

65) C Informational advertising reports price, performance, and other objective criteria, whereas persuasive advertising plays on consumers’ emotions, anxieties, and psychological needs and desires such as status, selfesteem, and attractiveness. 66) C Informational advertising reports price, performance, and other objective criteria, whereas persuasive advertising plays on consumers’ emotions, anxieties, and psychological needs and desires such as status, selfesteem, and attractiveness. 67) E Informational advertising reports price, performance, and other objective criteria, whereas persuasive advertising plays on consumers’ emotions, anxieties, and psychological needs and desires such as status, selfesteem, and attractiveness. 68) E Informational advertising reports price, performance, and other objective criteria, whereas persuasive advertising plays on consumers’ emotions, anxieties, and psychological needs and desires such as status, selfesteem, and attractiveness. 69) B Persuasive advertising is criticized for fostering discontent among consumers and encouraging them to purchase products and services to solve deeper problems. 70) C Persuasive advertising is criticized for fostering discontent among consumers and encouraging them to purchase products and services to solve deeper problems. Version 1

71) C It is difficult to separate desirable informational advertising from undesirable persuasive advertising. Even advertising that most observers would categorize as very informative is often very persuasive. 72) A According to defenders of advertising who use Maslow’s need hierarchy for support, it is natural for individuals to move from basic needs to higher-order ones such as self-esteem and status or self-actualization. 73) B Proponents of advertising offer two defenses against the charge that advertising makes people buy things they do not really need. First, this criticism attributes too much power to advertising and assumes consumers have no ability to defend themselves against it. Second, it ignores the fact that consumers have the freedom to make their own choices when confronted with persuasive advertising. 74) A Portrayals of adult women in American television and print advertising have emphasized passivity, deference, lack of intelligence and credibility, and punishment for high levels of efforts. In contrast, men have been portrayed as constructive, powerful, autonomous, and achieving. 75) C Portrayals of adult women in American television and print advertising have emphasized passivity, deference, lack of intelligence and credibility, and punishment for high levels of efforts. In contrast, men have been portrayed as constructive, powerful, autonomous, and achieving. 76) B Version 1

Boys are generally shown as being more knowledgeable, active, aggressive, and instrumental than girls. Research has shown that nonverbal behaviors involving dominance and control are associated more with boys than girls. 77) E Feminist groups such as the National Organization for Women (NOW) and the Sexual Assault Prevention and Awareness Center argue that advertising that portrays women as sex objects contributes to violence against women. 78) E Feminist groups such as the National Organization for Women (NOW) and the Sexual Assault Prevention and Awareness Center argue that advertising that portrays women as sex objects contributes to violence against women. NOW has been critical of advertisers for the way they portray women in advertising for clothing, cosmetics, and other products. 79) C The increase in the number of working women has resulted not only in women having more influence in family decision making but also in more single-female households, which means more independent purchasers. 80) A For many years, advertisers virtually ignored all nonwhite ethnic groups as identifiable subcultures and viable markets. 81) A Increases in the size and purchasing power of ethnic minorities are leading companies to give more attention to multicultural marketing.

Version 1

82) A More advertisers are turning to gay themes in their mainstream commercials, though often subtly. However, few run these ads on network television; they limit them to spot TV and local stations in more gay-friendly cities such as New York, Los Angeles, and San Francisco. 83) C It is well documented that economic censorship occurs, whereby the media avoid certain topics or even present biased news coverage, in acquiescence to advertiser demands. 84) C The above scenario is an example of economic censorship. Economic censorship occurs when the media avoid certain topics or even present biased news coverage, in acquiescence to advertiser demands. 85) E This scenario is an example of economic censorship. Economic censorship occurs when the media avoid certain topics or even present biased news coverage in acquiescence to advertiser demands. 86) E The fact that advertising plays such an important role in financing the media has led to a concern that advertisers may influence or even control the media. 87) D Newspapers and magazines receive nearly 70 percent of their revenue from advertising; commercial TV and radio derive virtually all their income from advertisers. 88) D

Version 1

Small, financially insecure newspapers, magazines, or broadcast stations are the most susceptible to pressure from advertisers, particularly companies that account for a large amount of the media outlet’s advertising revenue. 89) D Media executives point out that it is in the best interest of the media not to be influenced too much by advertisers. To retain public confidence, they must report the news fairly and accurately without showing bias or attempting to avoid controversial issues. 90) D Media executives offer several reasons why advertisers do not exert undue influence over the media. They note that an individual advertiser needs the media more than they need any individual advertiser, particularly when the medium has a large audience or does a good job of reaching a specific market segment. 91) B The formal separation of news and business departments of newspaper publishers is essential to their independence and credibility. This separation is often referred to as “The Wall.” 92) C The new economics of the publishing industry is making it difficult to maintain “The Wall.” Competition from cable TV, direct mail, and the Internet is increasing, and newspaper and magazine readership and revenues continue to decline. 93) C Government-supported media, like those in many other countries, would run counter to most people’s desire for freedom of the press.

Version 1

94) B 83.8 percent of all models used were Caucasian, 9.5 percent African American, and 6.6 percent Asian American. 95) E Advertising not only informs customers of available goods and services but also facilitates entry into markets for a firm or a new product or brand; leads to economies of scale in production, marketing, and distribution, which in turn lead to lower prices. 96) C Large advertisers usually sell more of a product or service, which means they may have lower production costs and can allocate more monies to advertising, so they can afford the costly but more efficient media like network television. 97) B Defenders of advertising say it is unrealistic to attribute a firm’s market dominance and barriers to entry solely to advertising. There are a number of other factors, such as price, product quality, distribution effectiveness, production efficiencies, competitive strategies and even government legislations. 98) A Advertising plays an important role in a free-market system by making consumers aware of products and services and providing them with information for decision making. 99) B

Version 1

Advertising can encourage consumption and foster economic growth. It not only informs customers of available goods and services but also facilitates entry into markets for a firm or a new product or brand; leads to economies of scale in production, marketing, and distribution, which in turn lead to lower prices; and hastens the acceptance of new products and the rejection of inferior products. 100) D Economists argue that advertising is used to achieve differentiation, whereby the products or services of large advertisers are perceived as unique or as better than competitors’ products. This would reduce competition and customer choice. 101) C Larger companies often end up charging higher prices and achieve a more dominant position in the market than smaller firms that cannot compete against them and their large advertising budgets. When this occurs, advertising becomes a substitute for competition based on price or product improvements. 102) E Economists argue that advertising is used to achieve differentiation, whereby the products or services of large advertisers are perceived as unique or as better than competitors’ products. 103) A Economists argue that advertising is used to achieve differentiation, whereby the products or services of large advertisers are perceived as unique or as better than competitors’ products. 104) A

Version 1

Large advertisers usually sell more of a product or service, which means they may have lower production costs and can allocate more monies to advertising, so they can afford the costly but more efficient media like network television and can obtain better advertising rates. This phenomenon is referred to as economies of scale. 105) E Consumer advocates hold the view that the large sums of money spent on advertising a brand constitute an expense that must be covered, and the consumer ends up paying for it through higher prices. 106) E Power in the hands of large firms with huge advertising budgets creates a barrier to entry, which makes it difficult for other firms to enter the market. Potential entrants must overcome established brand loyalty and spend relatively more on advertising. 107) C There is no clear evidence that advertising alone reduces competition, creates barriers to entry, and thus increases market concentration. High levels of advertising are not always found in industries where firms have a large market share. In this scenario, the fact that a new brand enjoys an equal market share supports Joan’s argument that advertising does not always cause barriers to entry. 108) C Defenders of advertising say a firm’s market dominance and barriers to entry cannot be solely attributed to advertising. There are a number of other factors, such as price, product quality, distribution effectiveness, production efficiencies, competitive strategies, and even government legislations. Topaz’s success is evidence that product quality is an important determinant of a brand’s success. Version 1

109) A The opportunity to advertise gives companies the incentive to develop new brands and improve their existing ones. When a successful new product is introduced, competitors quickly follow and use advertising to inform consumers about their brand. 110) C Advertising can lower prices by making a market more competitive, which usually leads to greater price competition. Advertising also cuts costs through economies of scale. 111) A Critics of advertising generally point to the differences in prices between national brands and private-label brands that are physically similar, such as aspirin or tea bags, as evidence of the added value created by advertising. 112) E According to the advertising equals market power ideology, firms are insulated from market competition and potential rivals; concentration increases, leaving firms with more discretionary power. 113) E According to the advertising equals information perspective, industry prices decrease. The effect on profits due to increased competition and increased efficiency is ambiguous. 114) C According to the “advertising equals information” ideology, advertising makes entry possible for new brands because it can communicate product attributes to consumers. 115) D Version 1

The belief that advertising equals market power reflects traditional economic thinking and views advertising as a way to change consumers’ tastes, lower their sensitivity to price, and build brand loyalty among buyers of advertised brands. 116) A According to the “advertising equals market power” ideology, potential entrants must overcome established brand loyalty and spend relatively more on advertising. 117) E Those who believe that advertising equals information view advertising as providing consumers with useful information, increasing their price sensitivity (which moves them toward lower-priced products), and increasing competition in the market. 118) C According to the “advertising equals information” ideology, consumers become more price sensitive and buy best “value.” Only the relationship between price and quality affects elasticity for a given product. 119) E The belief that advertising equals information takes a more positive view of advertising’s economic effects. This model sees advertising as providing consumers with useful information, increasing their price sensitivity (which moves them toward lower-priced products), and increasing competition in the market. 120) D According to the “advertising equals information” ideology, advertising makes entry possible for new brands because it can communicate product attributes to consumers.

Version 1

121) B The American Advertising Federation decided that the best way to get marketers to recognize the value of advertising was to practice what it preaches, and thus an integrated marketing communications campaign was developed to redefine advertising in the eyes of corporate executives. 122) E The International Advertising Association has been running a campaign for several years to convince consumers around the world of the economic value of advertising. 123) A American Advertising Federation is the American advertising industry’s primary trade organization. 124) B The Great Brands campaign, developed by the American Advertising Federation, promoted the economic power of advertising by featuring companies synonymous with quality advertising and for whom advertising has played a critical role in building brand equity. 125) C The “advertising equals market power” school of thought believes advertising affects consumer preferences and tastes, changes product attributes, and differentiates the product from competitive offerings.

Version 1

CHAPTER 22 TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) When the final price is to be negotiated between the buyer and the seller, personal selling is effective. ⊚ ⊚

true false

2) When the number and dispersion of customers does not allow for acceptable advertising economies, the sales force is likely to be a major part of the integrated marketing communications (IMC) mix. ⊚ ⊚

true false

3) Unlike advertising, personal selling does not provide the sender with the opportunity to determine the impact of the message. ⊚ ⊚

true false

4) When the cost per sales call for a firm continues to climb, the firm may find mass communications a more cost-effective alternative. ⊚ ⊚

true false

5) Supplementing personal selling efforts with phone calls allows the sales force to spend less time selling. ⊚ ⊚

true false

Unlike other IMC program elements, personal selling is usually used alone.

Version 1

⊚ ⊚

true false

7) The ability of a sales representative to take care of company property is a quantitative measure used to evaluate sales forces. ⊚ ⊚

true false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 8) According to Marketo CMO Sanjay Dholakia, marketing is becoming the de facto owner of A) sales. B) advertising. C) customer contact. D) customer journey. E) online sales.

Which type of goods is best suited for personal selling? A) low-priced goods B) non-durable goods C) high-priced non-durable goods D) high-priced durable goods

10) When salespeople are educating themselves more about their customers’ businesses and regularly assessing these businesses and their customers to achieve a position of knowledgeable authority, they are engaging in

Version 1

A) surveying. B) mapmaking. C) guiding. D) fire starting.

11) According to Hoffberg and Corcoran, when salespeople engage in ________, they are engaging customers and driving them to commit to a solution. A) surveying B) mapmaking C) guiding D) fire starting

12) Which of the following expresses the key difference between relationship marketing and CRM? A) Relationship Marketing = tool, CRM = concept B) Relationship Marketing = concept, CRM = tool C) Relationship Marketing = practice, CRM = concept D) Relationship Marketing = concept, CRM = salesperson

13)

Which of the following is an advantage of personal selling? A) better messaging B) lower cost C) better reach D) fewer distractions

14) Customers consider a salesperson energetic when he or she displays a positive attitude, enthusiasm, affability, and

Version 1

A) a neutral affect. B) firm mindedness. C) consistency. D) company loyalty.

15)

Which of the following is a disadvantage of personal selling? A) tailored messaging B) higher cost C) two-way interaction D) source of information

16)

Personal selling is most likely used in which stage of the response hierarchy? A) planning B) creating awareness C) creating interest D) stimulating trial

17) Which of the following tools is an example of combining personal selling with sales promotion? A) promotional pens B) downloadable coupons C) direct mail D) QR codes

18) Announcing company activities through social media is an example of combining what promotional tool with personal selling?

Version 1

A) public relations B) sales promotion C) advertising D) direct marketing

19) Flip charts and specialty ads designed to assist the sales staff are an example of combining what activity with personal selling? A) advertising B) direct marketing C) public relations D) sales promotion

20) In its use to complement personal selling, most marketing managers find the Internet to be valuable for A) generating leads. B) closing orders. C) prospecting. D) problem solving.

21) When a salesperson is evaluated on the number of shelf or counter displays he or she uses, the manager is using what criterion? A) provision of marketing intelligence B) follow-up activities C) program implementation D) attainment of communication objectives

22) The sales manager supervises the sales force; as a result, salesperson evaluations are typically based on Version 1

A) communication objectives. B) sales criteria. C) program implementations. D) marketing partnership.

23)

Personal selling is typically under the control of the A) sales manager. B) advertising department. C) promotions department. D) marketing department. E) operations manager.

24)

Which of the following statements is true of personal selling?

A) Personal selling involves inexpensive forms of communication. B) For personal selling to be effective, the sales and promotions department should operate independently. C) Integrated marketing communications (IMC) tools are used in conjunction with personal selling to make it effective. D) In an integrated marketing communications (IMC) program, personal selling is a substitute for other promotional-mix elements. E) Personal selling is typically controlled by the advertising and promotions department.

25)

Personal selling refers to selling A) personalized products to individuals and organizations. B) homemade products through online stores. C) through a person-to-person communications process. D) personalized products to only individuals and not organizations or groups. E) low-value products to only individuals and not organizations or groups.

Version 1

26) Which of the following products is most likely to use personal selling as the dominant tool of marketing? A) pizza B) pens C) OTC medications D) fresh flowers E) earth-moving equipment

27)

Which of the following is an example of a direct-marketing effort by a company? A) selling through salespeople B) selling through resellers C) missionary selling D) territory distribution E) advertising

28)

Personal selling differs from other forms of promotional communication in that it A) involves no direct contact with the customer. B) provides opportunity for immediate feedback. C) does not serve as a link to resellers. D) uses only standardized messages in communication. E) relies on advertising and other promotional tools.

29) ________ allows for more specific tailoring of the message and more personal interaction than other communications media.

Version 1

A) Informative advertising B) Mobile marketing C) Online promotion D) Dyadic communication E) Classified advertising

30) In personal selling, the sender can immediately receive and evaluate feedback from the receiver due to ________ communication. A) impersonal B) one-way C) indirect D) dyadic E) nonlinear

31)

Dyadic communication in personal selling is likely to result in A) a customized message that addresses the receiver’s needs. B) confusion caused by third parties or intermediaries. C) impersonal communications between receiver and sender. D) the sales force having to rely on advertising to address customer needs. E) a time lag between the message and feedback.

32) Management should determine the specific responsibilities of personal selling and the role it will assume relative to the other promotional-mix elements. Which of the following questions would best guide the management in determining these roles? A) What is the workflow followed in the advertising department? B) What is the total sales revenue of the industry in which the company operates? C) How many people work in each department of the organization? D) What is the market capitalization of the company? E) What specific information must be exchanged with potential customers?

Version 1

33)

Which of the following products is most likely to be sold using personal selling? A) computers B) packaged food C) shoes D) distilled water E) apparel

34)

Personal selling is the most appropriate sales method when A) the margin of sales is low. B) the channel system is relatively long. C) advertising media provide an effective link with market targets. D) features and performance of the products are relatively simple. E) final price is negotiated between buyer and seller.

35)

Under which of the following conditions is personal selling ideal for life insurance? A) when mass communication provides an effective link with the target market B) when the final price of the policy is predetermined C) when the selling margin is relatively low D) when the dispersion of customers cannot enable acceptable advertising economies E) when sales promotion is adequate to provide policy-related information needed by

buyers

36) A sales force is a major part of an organization’s integrated marketing communications (IMC) mix when

Version 1

A) the channel system is very long and indirect to the end users. B) product trial by customers is unnecessary to make purchase decisions. C) the purchase decision is not a major one for the buyer. D) channel intermediaries need product and service training. E) selling price or quality provides an inadequate margin.

37) Alex is the marketing head of BlackSteel Corp., a manufacturer of industrial equipment that introduces a new line of machinery that requires detailed demonstration and trial for its customers. Which of the following communication methods is Alex most likely to choose to increase sales of the new product line? A) shock advertising B) direct advertising C) personal selling D) retail selling E) mass communication

38)

The first step of the Eight-Step Personal Selling Process is A) prospecting. B) preapproach. C) handling objections. D) sales presentation. E) trial close.

39) What step in the Eight-Step Personal Selling Process is characterized by focusing on the features, advantages, and benefits of the product or service to the buyer?

Version 1

A) prospecting B) approach C) handling objections D) sales presentation E) trial close

40) Which step of the Eight-Step Personal Selling Process involves addressing concerns and requests for more information and determining exactly what is on the prospect’s mind? A) prospecting B) approach C) handling objections D) sales presentation E) trial close

41) Ellen heads the sales force of Track Inc. Track provides services that link buyers and suppliers. At present, the sales team’s responsibilities involve seeking out selected buyers who are perceived to have the resources and the authority to buy the services. Ellen’s team is in the ________ step of the Eight-Step Personal Selling Process. A) prospecting B) approach C) handling objections D) sales presentation E) trial close

42) Zen Inc. sources furniture for hotels and restaurants. The sales team at Zen works with the hotel and restaurant managers to identify their issues. These issues are then translated into needs, and the managers are offered a selection of products to meet those needs. In this scenario, Zen is in the ________ step of the Eight-Step Personal Selling Process.

Version 1

A) prospecting B) approach C) handling objections D) sales presentation E) trial close

43) GrayScale Corp. is an insurance provider. Their salespeople are checking with their customers to be sure that everything is going as planned and resolving any issues that may arise. Which step of the Eight-Step Personal Selling Process are their salespeople performing? A) follow-up B) handling objections C) trial close D) closing the sale E) sales presentation

44)

In personal selling, the final price is negotiated between A) buyer and manufacturer. B) buyer and management. C) buyer and seller. D) no one; there is no negotiation.

45)

Personal selling is used when advertising does not A) close the sale. B) provide complete information. C) generate leads. D) entice the customer.

46)

Advertising may outperform personal selling by better communicating

Version 1

A) complex product features. B) to a fragmented target market. C) a consistent message. D) information to generate interest.

47) Zest Inc. produces automated kitchen equipment. Their type of product is new on the market, and many of their customers do not understand either how to use it or why it would benefit them. Zest is trying to determine the best way to inform customers about their product and thereby produce sales. Which of the following would be the best method for Zest to secure sales? A) direct-mail advertising B) Internet sales C) personal selling D) telesales

48)

Brokers or manufacturer’s agents are examples of A) buyers. B) channel intermediaries. C) telemarketers. D) advertisers.

49)

Which of the following is a deciding factor to use personal selling? A) The price of the product is high. B) The product is available online. C) There is no advertising available. D) The buyer is part of a distinct and large target market.

Version 1

50) The textbook publishing market is highly competitive. Instructors can easily view multiple products online. A textbook publisher would use personal selling A) because of the high price of textbooks. B) to push sales through the channel. C) because advertising doesn’t work in the channel. D) to take orders.

51) Traditionally, salespeople have served the roles of information providers, influencers by proximity, and A) advertisers. B) public relations. C) demonstrators. D) product developers.

52)

Which of the following statements about the stages in the evolution of selling is true? A) Salespeople’s skills and roles remain constant. B) The need for salespeople is declining. C) Salespeople will need to take on new roles due to the changing landscape. D) The Internet is making salespeople irrelevant.

53) The ________ role of salespeople primarily focuses on outlining both an account strategy and a solutions strategy for the customer. A) fire-starting B) guiding C) surveying D) information-providing E) mapmaking

Version 1

54) Salespeople should educate themselves about their customers’ businesses and regularly assess these businesses and their customers to achieve a position of knowledgeable authority. These responsibilities are most closely associated with the ________ role of salespeople. A) mapmaking B) guiding C) fire starting D) surveying E) influencing

55) Modern salespeople bring incremental value to the customer by identifying problems and opportunities, offering alternative options and solutions, and providing solutions with tangible value. These functions of salespeople can be classified as part of the ________ role. A) fire-starting B) surveying C) mapmaking D) guiding E) influencing

56)

The fire-starting role of salespeople is most closely associated with A) outlining an account strategy and a solutions strategy for customers. B) laying out a customized plan for individual customers. C) engaging customers and driving them to commit to a solution. D) bringing incremental value to the customers by identifying problems. E) educating themselves about their customers’ businesses.

57)

Which of the following statements is true of relationship marketing?

Version 1

A) It focuses on short-term sales. B) It uses message differentiation to target different markets. C) It does not track promotional effects to improve relationships. D) It does not utilize sales representatives. E) It is synonymous with buzz marketing.

58) ________ refers to an organization’s effort to develop a long-term, cost-effective link with individual customers for mutual benefits. A) Relationship marketing B) Missionary selling C) Transactional relationship D) Transformational exchange E) Joint venture

59)

Which of the following terms is most closely associated with relationship marketing? A) persuasion B) compliance C) consultation D) partnership E) autonomy

60)

Which of the following is the best example of relationship marketing? A) Kite Inc. uses mass media to communicate with its target audience. B) Fin Corp. focuses on short-term gains through one-time transactions. C) Venus Inc. focuses on using print media to have a wide reach. D) Gate Corp. uses personal selling to reach individual customers. E) Felix Inc. develops a long-term link with individual customers for mutual benefit.

Version 1

61) Adoption of a customer relationship management (CRM) approach will require sales managers to A) reduce the role of direct marketing. B) decrease their reliance on websites as strategic marketing tools. C) decrease the use of traditional sales strategies. D) focus less on building long-term collaborations. E) focus less on building relationships based on trust.

62) Nina, marketing head of Red Inc., changes the existing marketing strategy by adopting a customer relationship management (CRM) approach. Which of the following is likely to be a consequence of Nina’s choice of the CRM approach? A) The role of direct marketing increases. B) The use of standardized forms of communication increases. C) The focus of the sale will be primarily on the price. D) The use of traditional strategies will increase. E) The reliance on tactical approaches to marketing will increase.

63) In some industries, personal selling accounts for most of the promotional budget. This is true because A) it has a wider reach than the mass media. B) it is not as expensive as other forms of communication. C) the average cost per sales call has decreased since 1980. D) the cost per sales call is less than the cost per message through other media. E) it is expensive and usually requires more than one sales call.

64) Which of the following products is likely to be the most expensive in terms of sales call costs?

Version 1

A) cosmetics B) personal care products C) computers D) cigarettes E) liquor

65) Personal selling has many advantages over other communications methods. However, most companies do not use it extensively. Which of the following is a reason for this? A) Personal selling lacks the ability to deliver customized solutions. B) It is not effective when you want to reach a niche target audience. C) Personal selling techniques have limited persuasion capability. D) It does not have opportunities for immediate response and feedback. E) Personal selling is expensive compared to other forms of communication.

66)

Leads are different from prospects in that A) leads may not have a need for the product or service offered. B) leads are tougher to identify than prospects. C) leads are more likely to make a purchase than prospects. D) missionary sales reps are likely to close deals with leads. E) leads are less likely to receive cold calls than prospects.

67) Robert performs sales activities such as prospecting, assessing the situation and determining the needs to be met, presenting his company’s capabilities for satisfying these needs, and closing the sale. Robert is in which type of sales job? A) personal selling B) advertising C) channel partner D) public relations

Version 1

68) Catharine introduces new products, new promotions, and new programs to customers, while the actual orders are taken by Salim, the company’s order taker. Catharine is likely to be A) a sales development rep. B) an account manager. C) a regional sales manager. D) an account executive.

69) People who are responsible for the first part of the sales process such as researching, prospecting, and qualifying leads are called A) sales development reps (SDRs). B) account managers. C) regional sales managers. D) account executives (AEs).

70)

A salesperson who travels to customers just to get their orders is A) a sales development rep. B) an account manager. C) a regional sales manager. D) an account executive. E) an outside salesperson.

71)

Which sales role has a steady client base and works to encourage repeat sales? A) sales development rep B) account manager C) regional sales manager D) account executive E) outside salesperson

Version 1

72) Tom builds the product, and so knows a lot about the product. He is often asked to be on sales calls with an account executive to help answer any in-depth questions the potential client may have. Tom is working in which type of sales role? A) account manager B) regional sales manager C) vice president D) sales engineer E) director of sales

73) Which sales position has a strategic role, but also provides direction and quotas to the sales managers? A) vice president B) regional sales director C) sales engineer D) director of sales E) account executive

74) At Little Corp., Rick works as a sales development rep while Harry works as an account executive. If they follow a typical personal-selling procedure, which of the following is most likely to happen when Rick encounters a situation that involves a major purchase decision? A) Rick will attempt to close the sale himself only for this one time. B) Rick will route the sale to Harry. C) Rick will make the decision himself as part of his responsibilities. D) Rick will decline the sale.

75) Tia works in the sales team of Blitz Inc. Her role involves working leads, doing product demonstrations, and closing the initial sale. Once she has completed the initial sales, to whom at Blitz is Tia most likely to transition the client?

Version 1

A) sales development rep B) account executive C) sales manager D) account manager E) vice president

76) Which of the following roles is most responsible for the strategic direction of the sales team? A) account manager B) account executive C) regional sales manager D) sales director E) vice president

77) Which of the following steps of selling is performed right before demonstrating the capabilities of the firm and its products? A) handling the indirect objections of customers B) determining customers’ needs and wants C) recommending ways to satisfy customers’ needs and wants D) attempting to close the sale E) servicing the account

78)

Order taking is most likely to happen at the stage of A) feedback. B) objection handling. C) need determination. D) closing the sale. E) pre-approach.

Version 1

79) HRTech is a company that provides human resource management (HRM) services for small- and medium-sized businesses. HRTech visits LW Corp. for a sales presentation. At the end of the presentation, the HRTech salesperson asks, “Would you like us to set up a personalized HR system for you?” This question is an example of A) a close. B) a lead screening process. C) objection handling. D) need determination. E) a pre-approach.

80) Rafael visits an insurance agent from whom he has purchased auto insurance to clarify some questions. The agent asks Rafael if he owns or rents where he lives, as well as what type of possessions Rafael has (such as electronics, jewelry, etc.). Then agent asks Rafael if he has renters’ insurance. The insurance agent is in which step of the sales process? A) locating perspective customers B) determining customer’s needs and wants C) recommending a way to satisfy the customer’s needs and wants D) demonstrating the capabilities of the firm E) closing the sale

81) Zoe Inc. is a jewelry store whose website was designed by Quirky Inc., a graphic design firm. After the launch of the new site, the marketing head of Quirky visits Zoe’s office to ask about the new website and what Zoe thinks about it. Quirky Ink is attempting to engage in A) locating perspective customers. B) determining customer’s needs and wants. C) recommending a way to satisfy the customer’s needs and wants. D) demonstrating the capabilities of the firm. E) following up and servicing the account.

Version 1

82) Which of the following stages in selling focuses on retaining existing customers rather than attracting new ones? A) problem solving B) objection handling C) closing the sale D) following up E) trial closing

83) Which of the following stages in the selling process is typically characterized by cross selling? A) following up B) closing the sale C) problem solving D) objection handling E) need recognition

84) for

Of all the promotional program elements, only personal selling provides the opportunity

A) increased product awareness. B) the communication of detailed information. C) direct feedback. D) maintaining customer loyalty. E) low sales costs.

85) Personal selling offers the opportunity to assess the sales situation and to adapt the sales message accordingly. This is called a

Version 1

A) missionary sale. B) cross sale. C) one-way communication process. D) secondary response system. E) direct feedback network.

86)

Which of the following is a major advantage of personal selling? A) consistency of messages B) reduced salesforce/management conflicts C) lack of distraction for the buyer D) reduced sales cost E) wide reach at low cost

87) Personal selling is considered more effective than other marketing communication techniques for some products. Which of the following is a reason for this? A) Distortion of marketing messages does not occur in personal selling. B) Salespeople can be involved in the decision-making process. C) Marketing messages tend to be consistent in personal selling. D) Personal selling is an inexpensive form of communication. E) Personal selling is associated with better reach compared to other methods.

88) Buyers consider knowledgeable salespeople to be most helpful. To have this trait, salespeople should be A) punctual in their appointments with buyers. B) flexible in making choices with buyers. C) personally accountable for handling customer requests. D) aware of every detail of the products and policies. E) empathetic and willing to listen to buyers.

Version 1

89) Which of the following behaviors of salespeople is most closely associated with being results oriented? A) listening to customers’ problems B) presenting innovative solutions to problems C) coming prepared to sales presentations D) displaying positive attitudes and enthusiasm E) quantifying the type of ROI a customer can expect

90) Robert has joined industry organizations, gained professional certifications, and contributed to industry publications. Prospects are likely to view Robert as A) knowledgeable. B) punctual. C) efficient. D) helpful. E) results oriented.

91)

Which of the following is a disadvantage of personal selling? A) lack of two-way interaction B) lack of personalization C) indirect communication D) increased customer distraction E) inconsistent marketing messages

92) Which of the following characteristics of personal selling can be both advantageous and disadvantageous?

Version 1

A) ability to personalize the sales message B) lack of distraction C) high sales costs D) one-way interaction E) potential for direct feedback

93) The ability to tailor the marketing message may prove to be either an advantage or a disadvantage. In which of the following situations could it become a disadvantage? A) when costs per contact are high B) when salespeople alter the message just to get a sale C) when the price of the product is standardized D) when the product is complex in nature E) when distribution channels are short and direct to the end user

94)

Which of the following is a potential disadvantage of personal selling? A) lack of personalization B) conflict between sales force and management C) lack of direct feedback D) inability to tailor messages E) lack of customer involvement in the decision-making process

95)

What does it mean when salespeople are described as having a poor reach? A) They engage in too much talk that distracts the buyer. B) They lack the product knowledge needed to convince the buyer. C) They are unable to contact everyone in the target market. D) They lack the confidence to close the sale. E) They lack the skill required to influence buying decisions.

Version 1

96) this?

Personal selling may lead to ethical problems. Which of the following is a reason for

A) Most personal sale situations demand unethical practices. B) Many salespeople are compulsive talkers and they do not listen to customers. C) Personal selling does not encourage feedback from customers. D) Personal selling does not have opportunities for two-way interaction. E) Managers do not have complete control over the message that salespeople convey.

97) Marketers often use mass communications as an alternative to personal selling. Which of the following is a reason for this? A) need for personalized communication B) high cost per sales call C) low success rate of personal selling D) need for tailored marketing messages E) high level of distraction in personal selling

98) Personal selling often results in conflict between sales force and marketing. Which of the following is a reason for this conflict? A) The marketing team may be responsive to the field assessment of customer needs. B) The sales force may not use the material provided by the marketing team. C) Most organizations do not distinguish between sales and marketing departments. D) Salespeople are forced to deliver messages to customers as defined by marketers. E) Personal selling does not allow for two-way interaction with customers.

99)

At which stage of the response hierarchy is personal selling least likely to be useful?

Version 1

A) product awareness B) demonstration C) product trial D) product purchase E) order-getting

100) Studies have shown that the combination of advertising and personal-selling efforts is likely to A) reduce effectiveness. B) weaken the image of sales reps. C) reduce reach. D) increase costs. E) increase the probability of a sale.

101)

Research has shown that combining advertising with personal selling results in A) decreased customer trust. B) uninformed decision making. C) improved reach. D) impulse buying. E) decreased cross selling.

102) Personal selling is more likely to be used than other methods of sales communication in situations where A) routine information has to be provided to customers. B) profitability is dependent on the scale and cost effectiveness of operation. C) the product is inexpensive and simple. D) the salesperson has to stimulate a trial to make a sale. E) the organization wants to create product awareness.

Version 1

103) When a new product is being introduced and the seller needs to reach as many people in the target market quickly and cost effectively, personal selling combined with ________ is likely to be most effective. A) public relations efforts B) advertising C) direct marketing D) missionary selling E) word-of-mouth communication

104)

Personal selling is a more appropriate tool than advertising when the objective is to A) ask for a sale. B) minimize the cost per lead. C) provide information. D) create awareness. E) create brand appeal.

105) By servicing accounts and cooperating and empathizing with clients, salespeople are engaging in ________ activities on behalf of their firm. A) promotional B) advertising C) public relations D) direct-marketing E) telemarketing

106) Which of the following is a major advantage that advertising provides to personal selling?

Version 1

A) It can provide personalized messages to the buyers. B) It can act as an ego booster for the buyer during sales calls. C) It helps the salesperson complete the customer’s decision-making process. D) It helps screen leads after qualifying potential buyers. E) It allows the opportunity for immediate feedback.

107) White Inc. places an ad in a dental trade magazine, Albus Review, for a new product. The ad asks interested readers to request a product information pamphlet by e-mail. The names and addresses of dentists who request information are then given to the sales force at White Inc. This is an example of how ________ activities can be combined with personal selling. A) sales-promotion B) operational C) public relations D) direct-marketing E) holistic marketing

108) Many companies have started using telemarketing to supplement personal selling. Which of the following is a reason for this? A) increased need for personalization B) increased need for diseconomies of scale C) need to reduce selling costs D) need for face-to-face interaction E) decreased customer loyalty

109) of

Organizations use telemarketing to support personal selling. Telemarketing is an example

Version 1

A) direct marketing. B) field order taking. C) internal marketing. D) inbound selling. E) mass communication.

110) An organization wants to screen leads and qualify potential buyers before salespeople call on them. Which of the following is the most cost-efficient method to do this? A) Increase advertising in mass media. B) Use alternate channels such as retailing. C) Appoint external consultants to screen leads. D) Use direct-marketing techniques such as telemarketing. E) Hire highly qualified salespeople who can convince prospective customers.

111) Telemarketing staff can provide a(n) ________ function, creating goodwill and improving customer satisfaction and loyalty. A) sales promotion B) direct marketing C) public relations D) internal marketing E) advertising

112) ________ refers to an online presentation that can serve a variety of purposes from conducting job training for employees to making presentations and providing in-depth product information to existing and potential customers.

Version 1

A) Social networking B) Virtual conferencing C) Podcast D) Teleconferencing E) Webinar

113) ________ refers to the ability of the sales force to report information regarding competitive programs and customer reactions. A) Attainment of communications objectives B) Program implementation C) Follow-up activity D) Provision of marketing intelligence E) Personalization of communication

114) Which of the following is a factor for evaluating personal selling that considers aspects such as the use and dissemination of promotional brochures and providing feedback on the effectiveness of promotional programs? A) provision of promotional intelligence B) attainment of communications objectives C) provision of marketing intelligence D) program implementations E) follow-up activities

115) Lisa works as a sales manager at Zoroh Inc. She evaluates the members of the sales force based on the number of accounts to which presentations were made and the number of trial offers accepted. Which of the following criteria is Lisa using to evaluate the salespeople?

Version 1

A) attainment of communications objectives B) provision of marketing intelligence C) program implementations D) follow-up activities E) provision of promotional intelligence

116) Joelle’s manager evaluates her performance during their quarterly meeting. Which of the following criteria is a quantitative measure of Joelle’s sales efforts? A) attainment of communications objectives B) average order size C) program implementations D) follow-up activities E) net profit

117)

A quantitative measure used to evaluate sales personnel is A) product knowledge. B) selling expenses per call. C) follow-up activities. D) customer feedback. E) marketing intelligence.

118) Which of the following quantitative measures can be used to evaluate the selling expenses of salespeople? A) number of service calls B) number of displays set up C) average cost per sales call D) delivery cost per unit sold E) number of new accounts

Version 1

119)

A qualitative measure used to evaluate sales personnel is A) the number of new accounts. B) the percentage of sales quota achieved. C) territory management. D) report preparation. E) sales call preparation.

120) Which of the following is a qualitative measure used to evaluate sales-related activities of the sales force? A) product knowledge B) customer knowledge C) execution of selling techniques D) customer relations E) communication skills

121) Which of the following qualitative measures is used to evaluate the selling skills of the sales force? A) customer knowledge B) personal characteristics C) marketing intelligence D) customer relations E) follow-ups

122) Zoe is a sales manager who emphasizes qualitative measures of sales results in her salesperson evaluations. Which of the following might Zoe use as a qualitative measure of sales results?

Version 1

A) quality of sales presentations B) average order size C) program implementations D) net profit E) number of orders obtained

123) Baxter is completing a sales report. He is reporting the results of a calculation dividing his total orders by the number of sales calls, which is also known as his A) quality of sales presentations. B) average order size. C) batting average. D) net profit. E) gross margin.

Version 1

Answer Key Test name: Chap 22_12e 1) TRUE When the final price is to be negotiated between the buyer and the seller, personal selling is effective. 2) TRUE When the number and dispersion of customers doesn’t enable acceptable advertising economies, the sales force is likely to be a major part of the integrated marketing communications (IMC) mix. 3) FALSE Personal selling involves two-way interaction, which allows the sender to determine the impact of the message. 4) TRUE There is a high cost involved in personal selling and as the cost per sales call continues to climb, the marketer may find mass communications a more cost-effective alternative. 5) FALSE Supplementing personal selling efforts with phone calls frees the sales force to spend more time selling. The phone can be used effectively for service and follow-up functions as well as for growth-related activities. 6) FALSE Like the other program elements, personal selling is usually one component of the IMC program. Rarely, if ever, is it used alone. It supports and is supported by other program elements. 7) FALSE Version 1

The ability of a sales representative to take care of company property is a qualitative measure used to evaluate sales forces. 8) D Marketo CMO Sanjay Dholakia said, “Marketing is really the new sales function...In three to five years. marketing is going to be the de facto owner of the entire customer journey. We’re also moving toward a world where marketing is the new customer service. It is a huge elevation.” 9) D Personal selling often plays the dominant role in industrial firms, while in other firms, such as makers of low-priced consumer nondurable goods, its role is minimized. 10) A Surveying is where a salesperson is educating themselves more about their customers’ businesses and regularly assessing these businesses and their customers to achieve a position of knowledgeable authority. 11) D When salespeople engage customers and drive them to commit to a solution, they are engaging in fire starting. 12) B The first step in the personal-selling process is the prospecting step. It involves looking for leads and checking them. 13) D Even when a group of salespeople makes the presentation, or when more than one decision maker is present, the setting is less distracting than those in which nonpersonal mass media are used. 14) C Version 1

A salesperson is considered energetic when he or she has a positive attitude, enthusiasm, affability, consistency, and flexibility. Being energetic is one of the traits of salespeople that customers are typically impressed with and consider most helpful. 15) B One of the major disadvantages of personal selling is the cost involved. 16) D The advantages of advertising make it more effective in the early stages of the response hierarchy (for example, in creating awareness and interest), whereas personal selling is more likely to be used in the later stages (for example, stimulating trial and getting the order). 17) A While trade sales promotions are designed to support the reseller and often target the ultimate consumer, many other promotional tools are designed to assist the sales staff. Flip charts, leave-behinds (such as promotional pens), and specialty ads may be designed to assist salespeople in their presentations, serve as reminders, or just create goodwill. 18) D Companies have found that integrating direct marketing into their field sales operations makes their personal sales efforts more effec-tive. Marketers have increased their use of web-related activities for both lead generation and social media growth. These activities include announcing company activities such as webinars, a new website launch, and promotions. 19) D

Version 1

While trade sales promotions are designed to support the reseller and are often targeted to the ultimate consumer, many other promotional tools are designed to assist the sales staff. Flip charts, leave-behinds, and specialty ads may be designed to assist salespeople in their presentations, serve as reminders, or just create goodwill. 20) A As noted, the Internet has been used to provide product information, generate leads, screen prospects, and build and market from databases. This, in turn, will allow the sales force to be more effective in closing orders, prospecting, problem solving, and cross selling and focusing more attention on high-value and/or new customers. 21) C The number of promotional programs implemented, the number of shelf and/or counter displays used, and the implementation and assessment of cooperative advertising programs can be used as measures when salespeople are being evaluated on the criterion of program implementation. 22) B Because the sales force is under the supervision of the sales manager, evaluations are typically based on sales criteria. Sales may be analyzed by total sales volume, territories, product line, customer type, or sales representative attitudes. 23) A Personal selling is typically under the control of the sales manager, not the advertising and promotions department. 24) C

Version 1

Integrated marketing communications (IMC) tools are used in conjunction with personal selling and in some cases the sales force itself may become a target of the communications program. 25) C Personal selling involves selling through a person-to-person communications process. 26) E Personal selling often plays the dominant role in industrial firms, while in other firms, such as makers of low-priced consumer nondurable goods, its role is minimized. 27) E Manufacturers may promote their products directly to consumers through advertising and promotions, digital and social media, and/or direct-marketing efforts or indirectly through resellers and salespeople. 28) B Personal selling differs from the other forms of promotional communication in that messages flow from a sender (or group of senders) to a receiver (or group of receivers) directly (usually face to face). This direct and interpersonal communication lets the sender immediately receive and evaluate feedback from the receiver. 29) D Dyadic communication allows for more specific tailoring of the message and more personal communications than do many of the other media. 30) D

Version 1

In personal selling, messages flow from a sender to a receiver directly. This direct and interpersonal communication lets the sender immediately receive and evaluate feedback from the receiver. This communications process is known as dyadic communication. 31) A Dyadic communication allows for more specific tailoring of the message and more personal communications than do many of the other media discussed. The message can be changed to address the receiver’s specific needs and wants. 32) E The following questions would help determine the responsibility of personal selling and the role it will assume relative to other promotionalmix elements: (1) What specific information must be exchanged between the firm and potential customers? (2) What are the alternative ways to carry out these communications objectives? (3) How effective is each alternative in carrying out the needed exchange? (4) How cost effective is each alternative? 33) A Personal selling is best suited for products that are complex and requiring customer application assistance such as computers. 34) E Personal selling is suitable when the final price is negotiated between buyer and seller. 35) D

Version 1

For products such as life insurance, personal selling is ideal when the number and dispersion of customers will not enable acceptable advertising economies. Personal selling is also effective when the information needed by buyers cannot be provided entirely through advertising and sales promotion. 36) D When channel intermediaries need product and service training and assistance, sales force is a major part of the integrated marketing communications mix. 37) C Personal selling is the most appropriate method of communication when the features and performance of a product require personal demonstration and trial by the customer. In this scenario, as BlackSteel’s equipment requires detailed demonstration, Alex would most likely choose personal selling as the communication method. 38) A Prospecting, or looking for and checking leads, is the first step in the Eight-Step Personal Selling Process. 39) B In the approach step, the salesperson is focusing on the features, advantages, and benefits of the product or service to the buyer. 40) C In handling objections, the salesperson is addressing concerns and requests for more information and determining exactly what is on the prospect’s mind. 41) A

Version 1

The activities in the prospect step include seeking out selected buyers who are perceived to have a need for the offering as well as the resources and authority to buy it. In this scenario Ellen’s team is in the prospector stage of personal-selling evolution. 42) B Zen is in the approach step, in which the salesperson focuses on the features, advantages, and benefits of the product or service to the buyer. 43) A In follow-up, the salesperson ensures that everything goes as planned and addresses additional concerns or issues that may arise. 44) C In personal selling, the final price is negotiated between buyer and seller (appliances, cars, real estate). 45) B Personal selling is used when information needed by buyer cannot be provided entirely through advertising and sales promotion (like insurance). 46) C Advertising may do a better job of repeating messages or reaching a large number of people with one distinct, consistent message. 47) C In this situation, Zest would most benefit from personal sales. Their potential customers do not understand how to use or why to use the product. The best way to drive purchases from the consumer is to do product trials and demos where the salesperson can answer questions and demonstrate the benefits of the product. 48) B Version 1

Channel intermediaries—brokers or manufacturer’s agents—are available to perform the personal-selling function for suppliers with limited resources and experience. 49) A While the cost of a personal sales call may not be prohibitive in industrial settings where a single purchase can be worth millions of dollars, the same cost may be unfeasible in a consumer market. Other media may be able to communicate the required message at a much lower cost. 50) B In this situation, the price per textbook is not high enough to warrant personal selling. Advertising does work in this channel, but not to the degree that would pre-empt sales of a competitor’s product. While the salespeople may take orders, their primary role is to push sales through the channel by developing relationships with the instructor and to fully explain the product’s benefits. 51) C Along with retaining their traditional roles, salespeople will have to acquire new roles to remain effective. That is, in addition to being information providers, influencers through proximity (i.e., through personal contact), and demonstrators, salespeople will engage in additional roles. 52) C Along with retaining their traditional roles, salespeople will have to acquire new roles to remain effective. That is, in addition to being information providers, influencers through proximity (i.e., through personal contact), and demonstrators, salespeople will engage in additional roles. Version 1

53) E Mapmaking refers to outlining both an account strategy and a solutions strategy for the customer. This means laying out a plan, discussing it with a customer, and revising it as changes require. 54) D Surveying involves salespeople educating themselves more about their customers’ businesses and regularly assessing these businesses and their customers to achieve a position of knowledgeable authority. 55) D Guiding refers to bringing incremental value to the customer by identifying problems and opportunities, offering alternative options and solutions, and providing solutions with tangible value. 56) C The fire-starting role of salespeople involves engaging customers and driving them to commit to a solution. 57) B Rather than focusing on a short-term sale, the sales rep tries to establish a long-term bond. And rather than just selling, the sales department works with marketing to use techniques like database marketing, message differentiation to different target markets, and tracking of promotional effects to improve the relationship. 58) A Relationship marketing is a type of marketing that focuses on cultivating deeper, more meaningful relationships with customers to ensure longterm satisfaction and brand loyalty. 59) D

Version 1

Personal selling is evolving to a much more marketing-oriented partnership with customers. The modern salesperson is attempting to establish a long-term, symbiotic relationship with clients, working with them as a solutions provider and partner. 60) E Relationship marketing refers to a marketing-oriented partnership with the customer to ensure long-term satisfaction and brand loyalty. In the scenarios listed, only Felix Inc. is working to establish a long-term relationship with its individual customers. 61) C Adoption of a CRM approach will require sales managers to develop nontraditional sales strategies. The company’s reliance on websites and banner ads, as well as ads in print publications, will need to be more strategic; direct marketing will assume a greater role; and the use of more sophisticated CRM programs will be required to be successful. 62) A Adoption of a CRM approach will require sales managers to develop nontraditional sales strategies. Companies will need to move to a more strategic, less tactical approach; direct marketing will assume a greater role; marketing will use a more personalized form of communication; the relationship will be based more on trust and the sale will focus not only on price. As a consequence, Nina is most likely to increase direct marketing activities as part of Red’s marketing strategy. 63) E

Version 1

In some industries, personal selling constitutes a substantial portion of the communications effort and may account for most of the promotional budget. This is true because (1) much attention is devoted to this function due to its advantages over other communication methods and (2) it is an expensive form of communication. The costs of personal selling are even higher when you consider that one sales call is not likely to be enough to close a deal. 64) C One sales call is not likely to be enough to close a deal, particularly in building and construction; while it may take (on the average) only 3.34 sales calls to close a deal in the building and construction industry, the same close in electronics and computer manufacturing may require 6.6 visits. 65) E Personal selling is an expensive way to communicate. Although the average cost per sales call varies by industry, it has increased every year since 1980. 66) A The process of locating new customers, often referred to as prospecting, involves the search for and qualification of prospective customers. Leads are those who may become customers and prospects are those who need the product or service. 67) A

Version 1

Personal selling activities may include (1) locating prospective customers, (2) determining customers’ needs and wants that are not being satisfied, (3) recommending a way to satisfy these needs and/or wants, (4) demonstrating the capabilities of the firm and its products for providing this satisfaction, (5) closing the sale and taking the order, and (6) following up and servicing the account. 68) D The missionary representative may not actually take the order. He or she introduces new products, new promotions, and/or new programs, with the actual order to be taken by the company’s order taker or by a distributor representing the company’s goods. In this scenario, Catharine is the missionary salesperson, while Salim is the order taker. 69) A SDRs (also commonly called business development reps, or BDRs) are responsible for the first part of the sales process: researching, prospecting, and qualifying leads. After being qualified, the prospect is turned over to the sales rep. 70) E Thanks to the rise of email, social media, and web-conferencing tools— not to mention a growing desire to talk to salespeople virtually and on the phone rather than in person—outside sales roles are becoming increasingly less common. An outside salesperson spends most of their time “in the field,” or visiting potential customers at their offices. 71) B Account managers enter the picture once the initial purchase is complete. Unlike a salesperson, whose accounts are constantly changing, an account manager’s portfolio is relatively stable. An account manager also serves as the client’s primary point of contact at the company. Version 1

72) D Sales engineers combine the technical expertise of engineers with the business acumen and selling skills of a traditional rep. They answer indepth product questions; work with prospects to determine their technical needs; communicate those needs to the sales, engineering and/or product teams; help salespeople give demos; and craft the technical components of proposals and contracts. 73) D A director of sales works with sales managers to determine sales objectives, forecast and develop sales quotas, maintain sales volume, and remain a crucial part of the hiring process. This position has a more strategic role than that of a sales manager. 74) B The sales development rep’s role is to qualify leads and pass them on to the account executive. In this situation, the most likely outcome is that Rick will forward the sale and the information about the client to Harry, the account executive. 75) D Tia’s role is that of an account executive. Her task is to work the leads and close the initial sale with a client. Once she has done that, her job is to transition that client to an account manager, who will continue to grow the account with the client and serve as the client’s main point of contact with Blitz Inc. 76) E

Version 1

A vice president of sales should contribute to the overall growth and strategy of the sales organization—and the company as a whole. This person is also in charge of team strategy, like deciding which markets the organization will expand to, and should be able to sell the tactics the sales team will need to get there. 77) C Recommending a way to satisfy the customers’ needs and wants is done right before demonstrating the capabilities of the firm and its products. 78) D The key ingredient in any sales presentation is the close, getting the prospect’s commitment to place the order. 79) A The key ingredient in any sales presentation is the close, getting the prospects’ commitment. In the given example, the salesperson is indirectly asking for an order. HRTech is using the question “Do you think you would like us to set up a personalized HR system for you?” to close the sale with LW Corp. 80) C The agent has already asked his questions and is coming up with a possible solution for Rafael—namely renter’s insurance. He is recommending a way to satisfy the customer’s needs and wants. 81) E Quirky Inc. is attempting to follow up and service the account. Quirky has made one sale—a website design—and is now working to maintain customer loyalty, generate repeat sales, and cross sell. In relationship marketing, follow-up is necessary and expected. 82) D Version 1

Following up and servicing the account includes maintaining customer loyalty, generating repeat sales, and getting the opportunity to cross sell. It is much easier to keep existing customers than to attract new ones. 83) A Following up is associated with maintaining customer loyalty, generating repeat sales, and getting the opportunity to cross sell. 84) C A primary advantage a salesperson offers through personal selling is the opportunity to assess the situation firsthand and adapt the sales message accordingly, a direct feedback network. No other promotional element provides this opportunity. 85) E A primary advantage a salesperson offers through personal selling is the opportunity to assess the situation firsthand and adapt the sales message accordingly. This is referred to as a direct feedback network. 86) C In many personal-selling situations, a one-to-one presentation is conducted. The likelihood of distractions is minimized and the buyer is generally paying close attention to the sales message. 87) B Through consultative selling and relationship marketing, the seller becomes more of a partner in the buying decision process, acting in conjunction with the buyer to solve problems. This leads the buyer to rely more on the salesperson and his or her products and services. 88) D

Version 1

Prospects gravitate to salespeople who are considered experts in the field, which is why ambitious salespeople look for opportunities to boost their credibility by speaking at conferences, joining industry organizations, gaining professional certifications, and contributing to industry publications. They must know their product forwards and backwards. 89) E Salespeople who are results oriented quantify the type of ROI a prospect can expect and provide some reference points so prospects can see how much money they stand to lose by not agreeing to do business with the salesperson. 90) A Prospects gravitate to knowledgeable salespeople who are considered experts in the field, which is why ambitious salespeople look for opportunities to boost their credibility by speaking at conferences, joining industry organizations, gaining professional certifications, and contributing to industry publications. They must know their product forward and backward. 91) E The message to be communicated is generally designed by the marketing staff with a particular communications objective in mind. The salesperson may alter this message in ways the marketer did not intend. Thus, the marketing staff is at the mercy of the sales force with respect to what exactly is communicated. 92) A

Version 1

The ability to adapt the message to the receiver is a distinct advantage of personal selling. However, the lack of standardized message can become a disadvantage. The message to be communicated is generally designed by the marketing staff with a particular communications objective in mind; but the salesperson may alter this message in ways the marketer did not intend. 93) B The message to be communicated is generally designed by the marketing staff with a particular communications objective in mind. But the salesperson may alter this message in ways the marketer did not intend. This could be disadvantageous. 94) B Because of failure to communicate, corporate politics, and a myriad of other reasons, the sales force and marketing may not be working as a team. The result is that the sales force may not use materials provided from marketing, marketing may not be responsive to the field’s assessment of customer needs, and so forth. 95) C Personal selling cannot reach as many members of the target audience as other program elements. The sales force has only so many hours and so many people it can reach in a given time. This problem is referred to as poor reach. 96) E Since managers do not have complete control over the messages that salespeople communicate and because income and advancement are often directly tied to sales, sometimes sales reps bend the rules. This could lead to ethical problems. 97) B Version 1

The cost of personal selling has been increasing. As the cost per sales call continues to climb, the marketer may find mass communications a more cost-effective alternative. 98) B The marketing staff may not understand the problems faced by the sales staff, or the salespeople may not understand why marketing people do things the way they do. The result is that the sales force may not use materials provided from marketing, which leads to conflict. 99) A With specific market situations and communications objectives, the advantages of advertising make it more effective in the early stages of the response hierarchy (for example, in creating awareness and interest), whereas personal selling is more likely to be used in the later stages. 100) E Studies have shown that companies can improve reach, reduce costs, and improve the probability of a sale by combining advertising and personal selling. Sales reps from well-known companies are better received than those from companies that do not spend advertising dollars to create awareness. 101) C Studies suggest that combining advertising and personal selling is likely to improve reach, reduce costs, and increase the probability of a sale. 102) D Advertising is more effective in the early stages of the response hierarchy (for example, in creating awareness and interest), whereas personal selling is more likely to be used in the later stages (for example, stimulating trial and getting the order).

Version 1

103) B 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 advertising is likely to be most effective. 104) A Personal selling is a more appropriate tool than advertising when the objective is to ask for the sale and/or to establish a relationship. 105) C By servicing an account and by cooperating and empathizing with clients, salespeople are engaging in public relational activities on behalf of their firm. The per-sonal-selling agent is often the firm’s best source of public relations. 106) B Telling prospects that an ad will appear in the media often makes the buyer feel she is important, and that she has inside information. Seeing the ad reinforces this. In this manner, advertising acts as an ego booster. 107) D Here, White Inc. is using direct-marketing activity to assist prospecting and to reduce the cost of its personal-selling process. 108) C Companies have found that integrating telemarketing into their field sales operations makes their sales efforts more effective. The cost of a sales call and the cost associated with closing a sale are already very high and on the increase. Many marketers have reduced these costs by combining telemarketing and sales efforts. 109) A Version 1

Companies have found that integrating direct marketing, specifically telemarketing, into their field sales operations makes their sales efforts more effective. 110) D The telemarketing department screens leads; qualifies potential buyers based on their interest levels, credit ratings, and the like; and passes them on to the sales force. 111) C In addition to selling and supporting the sales efforts, the telemarketing staff provides a public relations dimension. Communicating with buyers more often creates goodwill, improving customer satisfaction and loyalty. 112) E Online presentations that include a variety of purposes from conducting job training for employees to making presentations and providing indepth product information to existing and potential customers are called webinars. 113) D Provision of marketing intelligence is determined by the ability of the sales force to feed back information regarding competitive programs, customer reactions, market trends, and other factors that may be important in the development of the promotional program. 114) E Follow-up activities can be evaluated by assessing factors such as the use and dissemination of promotional brochures, correspondence with new and existing customers, and providing feedback on the effectiveness of various promotional programs.

Version 1

115) A Attainment of communications objectives can be evaluated by assessing the number of accounts to whom presentations were made (awareness, evaluation), the number of trial offers accepted, and the like. In this scenario, Lisa is checking to see if Zoroh’s sales pitch was effective. 116) A Attainment of communications objectives—the number of accounts to whom presentations were made (awareness, evaluation), the number of trial offers accepted, and the like—is a quantitative measure used to evaluate personal selling efforts. 117) B Selling expenses per call is a quantitative measure used to evaluate salespeople. 118) C Average cost per sales call can be used to evaluate the selling expenses of salespeople. The number of service calls and displays set and delivery cost per unit are part of customer service and not sales, and the number of new accounts is used as a measure of customer accounts. 119) D Report preparation and timely submission are qualitative measures of salespeople’s performance. 120) D Customer relations is a qualitative measure used to evaluate sales-related activities of the sales force. 121) A Customer knowledge is a qualitative measure used to evaluate the selling skills of the sales force. Version 1

122) A Quality of sales presentations is an example of a qualitative measure of selling skills, which are associated with sales results. 123) C Batting average is the number of orders divided by the number of sales calls.

Version 1