Advertising & IMC Principles and Practice, 9E by Sandra Moriarty, Nancy D Mitchell, William D Wells

Advertising & IMC Principles and Practice, 9E

by Sandra Moriarty, Nancy D Mitchell, William D. Wells

Email: richard@qwconsultancy.com

Advertising & IMC: Principles and Practice, 9e (Moriarty) Chapter 1 The New World of Marketing Communication 1) Which of the following is a basic role of advertising?

A) identification B) entertainment C) competition D) public relations E) two-way communication Answer: A Diff: 2 Page Ref: 6 Skill: Concept Objective: 1-1 2) The word advertisement first appeared in the ________.

A) 1550s B) 1650s C) 1750s D) 1850s E) 1950s Answer: B Diff: 2 Page Ref: 6 Skill: Concept Objective: 1-1 3) Which of the following is most closely associated with the introduction of mass production and a new emphasis on wider distribution of products?

A) the Renaissance B) the Industrial Revolution C) the Dot Com Revolution D) the Early Age of Agencies E) the Scientific Era Answer: B Diff: 2 Page Ref: 7 Skill: Concept Objective: 1-1

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4) Which of the following is NOT part of the modern definition of advertising?

A) is a paid form of communication B) has an identified sponsor C) is usually personal in nature D) provides information about products E) uses mass media Answer: C Diff: 1 Page Ref: 7 Skill: Concept AACSB: Communication abilities Objective: 1-1 5) Paid persuasive communication that uses mass and interactive media to reach broad audiences to connect an identified sponsor with a target audience is known as ________.

A) advertising B) personal selling C) public relations D) sponsorship E) sales promotion Answer: A Diff: 1 Page Ref: 7 Skill: Concept AACSB: Communication abilities Objective: 1-1 6) Advertising is usually paid for by the ________.

A) audience B) target C) agency D) advertiser E) media Answer: D Diff: 2 Page Ref: 7 Skill: Concept Objective: 1-1

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7) In traditional advertising, the message is conveyed through different kinds of ________ media using ________ messages.

A) interactive; personal B) interactive; nonpersonal C) word of mouth; personal D) mass; nonpersonal E) mass; personal Answer: D Diff: 2 Page Ref: 7 Skill: Concept AACSB: Communication abilities Objective: 1-1 8) Catalogs and flyers sent to the office or home are examples of which type of promotional tool?

A) sales promotion B) direct-response C) word of mouth D) specialties E) public relations Answer: B Diff: 2 Page Ref: 8 Skill: Concept AACSB: Communication abilities Objective: 1-1 9) Communication with employees and shareholders about brands and campaigns is usually handled by ________.

A) sales promotion B) direct-response C) word of mouth D) specialties E) public relations Answer: E Diff: 2 Page Ref: 8 Skill: Concept AACSB: Communication abilities Objective: 1-1

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10) In which product category was the most spent on advertising in the United States in 2009?

A) financial services B) automotive C) airline travel, hotels, and resorts D) restaurants E) food, beverages, and confectionary Answer: B Diff: 2 Page Ref: 8 Skill: Concept Objective: 1-1 11) ________ refers to all forms of communication about a brand that appear in a variety of media.

A) Integrated marketing communication B) Marketing communication C) Marketing network D) Brand identity E) Brand differentiation Answer: B Diff: 1 Page Ref: 9 Skill: Concept AACSB: Communication abilities Objective: 1-1 12) Which of the following is NOT one of the four functions of advertising?

A) marketing roles B) communication roles C) economic roles D) networking roles E) societal roles Answer: D Diff: 2 Page Ref: 9 Skill: Concept AACSB: Communication abilities Objective: 1-1 13) In which scenario is advertising most likely to flourish in a society?

A) when demand exceeds supply B) when there is little price competition C) when public speech is tightly controlled by the government D) when consumers do not have disposable income E) when supply is greater than demand Answer: E Diff: 2 Page Ref: 9 Skill: Concept Objective: 1-1 4 .

14) Which of the following was the top U.S. advertiser with respect to total ad expenditures in 2009?

A) Monsanto B) Sara Lee C) Toyota D) General Electric E) Procter & Gamble Answer: E Diff: 2 Page Ref: 9 Skill: Concept Objective: 1-1 15) How many times did the "1984" commercial for Apple's Macintosh computer run?

A) 1 B) 2 C) 20 D) 50 E) more than 100 Answer: A Diff: 2 Page Ref: 10 Skill: Concept Objective: 1-1 16) Which of the following is considered a societal role of advertising?

A) creates a more rational economy B) reaches a mass audience C) serves an educational function D) makes consumers focus on nonprice benefits E) all of the above Answer: C Diff: 2 Page Ref: 11 Skill: Concept Objective: 1-1 17) Advertising that announces facts about products that are available in nearby stores and focuses on stimulating store traffic and creating a distinctive image for a retailer is known as retail or ________ advertising.

A) brand B) local C) direct-response D) institutional E) public-service Answer: B Diff: 1 Page Ref: 11 Skill: Concept AACSB: Communication abilities Objective: 1-1 5 .

18) ________ advertising is the most visible type of advertising; it focuses on the development of a long-term brand identity or image.

A) Retail B) Institutional C) Brand D) Nonprofit E) Public service Answer: C Diff: 1 Page Ref: 11 Skill: Concept AACSB: Communication abilities Objective: 1-1 19) ________ advertising may use any advertising medium, but it differs from other types of advertising in that it tries to stimulate an immediate consumer action.

A) Brand B) Local C) Direct-response D) Institutional E) Public service Answer: C Diff: 1 Page Ref: 11 Skill: Concept AACSB: Communication abilities Objective: 1-1 20) Which of the following is NOT considered a major type of advertising?

A) brand B) retail C) direct-response D) institutional E) generational Answer: E Diff: 2 Page Ref: 11 Skill: Concept AACSB: Communication abilities Objective: 1-1

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21) Brand advertising is also known as ________ advertising.

A) trade B) local C) consumer D) corporate E) public service Answer: C Diff: 2 Page Ref: 11 Skill: Concept AACSB: Communication abilities Objective: 1-1 22) ________ advertising is sent from one business to another.

A) Brand B) Retail C) Direct-reponse D) Institutional E) Trade Answer: E Diff: 1 Page Ref: 11 Skill: Concept AACSB: Communication abilities Objective: 1-1 23) ________ advertising focuses on establishing a corporate identity or winning the public over to the organization's point of view.

A) Brand B) National C) Public service D) Institutional E) Business-to-business Answer: D Diff: 1 Page Ref: 11 Skill: Concept AACSB: Communication abilities Objective: 1-1

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24) Charities, foundations, associations, hospitals, orchestras, museums, and religious institutions advertise for customers, members, volunteers, and donations and other forms of program participation using which major type of advertising?

A) nonprofit B) local C) consumer D) institutional E) trade Answer: A Diff: 1 Page Ref: 11 Skill: Concept Objective: 1-1 25) Which major type of advertising is used to communicate a message on behalf of some good cause, such as stopping drug abuse, and is usually created by advertising professionals free of charge with the necessary time and space often donated by the media?

A) nonprofit B) societal role C) direct-response D) business-to-business E) public service Answer: E Diff: 1 Page Ref: 11 Skill: Concept AACSB: Communication abilities Objective: 1-1 26) An advertising ________ is a set of related ads that are variations on a theme.

A) brand B) market C) campaign D) position E) target Answer: C Diff: 1 Page Ref: 12 Skill: Concept AACSB: Communication abilities Objective: 1-1

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27) In the evolution of advertising, which of the following came before the Early Age of Agencies?

A) the Early Age of Print B) the Scientific Era C) the Creative Revolution D) the Era of Accountability E) the Era of Integration Answer: A Diff: 2 Page Ref: 13 Skill: Concept Objective: 1-2 28) In the evolution of advertising, P.T. Barnum is known for which of the following?

A) conducting one of the first full ad campaigns B) crafting the strategy of advertising as news C) identifying the pulling power of headlines D) scientifically measuring the effectiveness of advertisements E) introducing the concept of status appeal Answer: A Diff: 3 Page Ref: 13 Skill: Concept Objective: 1-2 29) When did television commercials first come on the scene?

A) during the Great Depression B) during World War II C) during the 1950s D) during the 1960s E) during the Great Recession Answer: C Diff: 2 Page Ref: 15 Skill: Concept Objective: 1-2 30) The idea of positioning was developed in which era of the evolution of advertising?

A) the Early Age of Print B) the Early Age of Agencies C) the Scientific Era D) the Creative Revolution E) the Era of Accountability Answer: C Diff: 2 Page Ref: 15 Skill: Concept Objective: 1-2

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31) Which of the following is the idea that messages should be directed at particular groups of prospective buyers?

A) positioning B) targeting C) branding D) integrated marketing E) social responsibility Answer: B Diff: 1 Page Ref: 15 Skill: Concept Objective: 1-2 32) In the evolution of advertising, the 1960s and 1970s are most closely associated with which of the following?

A) the Early Age of Print B) the Early Age of Agencies C) the Scientific Era D) the Creative Revolution E) the Era of Accountability Answer: D Diff: 2 Page Ref: 15-16 Skill: Concept Objective: 1-2 33) During the ________ in the late 1990s, corporations were challenged on questions of taste and social responsibility.

A) Early Age of Print B) Era of Accountability and Integration C) Early Age of Agencies D) Creative Revolution E) Scientific Era Answer: B Diff: 2 Page Ref: 16-17 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 1-2

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34) ________ is the logic and planning behind an advertisement that gives it direction and focus.

A) The creative idea B) Execution C) Evaluation D) Strategy E) Idea generation Answer: D Diff: 1 Page Ref: 17 Skill: Concept AACSB: Communication abilities Objective: 1-2 35) Signs and posters are examples of ________ media.

A) interpersonal B) interactive C) digital D) outdoor E) broadcast Answer: D Diff: 2 Page Ref: 18 Skill: Concept Objective: 1-2 36) Radio and television are examples of ________ media.

A) print B) interactive C) digital D) outdoor E) broadcast Answer: E Diff: 2 Page Ref: 18 Skill: Concept Objective: 1-2 37) Advertising begins with the ________, the person or organization that uses advertising to send out a message about its products.

A) supplier B) media C) agency D) advertiser E) vendor Answer: D Diff: 1 Page Ref: 18 Skill: Concept Objective: 1-3

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38) The ________ initiates the advertising effort by identifying a marketing problem that advertising can solve.

A) supplier B) media C) agency D) advertiser E) vendor Answer: D Diff: 1 Page Ref: 18 Skill: Concept Objective: 1-3 39) Which key player makes the final decisions about the target audience and the size of the advertising budget and also approves the advertising plan?

A) advertiser B) media C) agency D) vendor E) audience Answer: A Diff: 2 Page Ref: 18 Skill: Concept Objective: 1-3 40) When an advertiser hires an advertising agency, the advertiser becomes the agency's ________.

A) supplier B) client C) channel D) vendor E) vehicle Answer: B Diff: 2 Page Ref: 18 Skill: Concept Objective: 1-3 41) The agency person in charge of an advertiser's business is the ________.

A) creative director B) account manager C) media buyer D) account producer E) copywriter Answer: B Diff: 2 Page Ref: 18 Skill: Concept Objective: 1-3 12 .

42) Independent organizations that are hired by advertisers to create, produce, and distribute part or all of an advertising effort are known as ________.

A) mass media B) in-house agencies C) outside agencies D) media vehicles E) account services Answer: C Diff: 2 Page Ref: 20 Skill: Concept Objective: 1-3 43) The working relationship between an advertiser and an advertising agency is known as the ________ partnership.

A) agency-client B) media-client C) advertiser-supplier D) vendor-client E) strategic-tactical Answer: A Diff: 2 Page Ref: 20 Skill: Concept Objective: 1-3 44) When creating an advertisement or complete campaign, it is typically more efficient for an advertiser to use an outside agency rather than an in-house agency for all of the following reasons EXCEPT which one?

A) Agencies typically have fewer restrictions on getting ideas approved.

B) Agencies have creative expertise.

C) Agencies have media knowledge.

D) Agencies have workforce talent.

E) Agencies have the ability to negotiate good deals for clients.

Answer: A Diff: 2 Page Ref: 20 Skill: Concept Objective: 1-3

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45) The primary responsibility of which of the following departments is managing the advertising process?

A) accounting department B) traffic department C) marketing services D) art studio E) print production Answer: C Diff: 1 Page Ref: 20 Skill: Concept Objective: 1-3 46) Big companies may have hundreds of agencies working for them, but they normally have a(n) ________, which does most of their advertising business and may even manage the other agencies.

A) agency-of-record B) creative boutique C) media-buying service D) agency-of-importance E) media vehicle Answer: A Diff: 1 Page Ref: 20 Skill: Concept Objective: 1-3 47) By using which type of advertising agency does an advertiser produce its own advertising?

A) home agency B) agency-of-record C) in-house agency D) creative boutique E) agency network Answer: C Diff: 2 Page Ref: 20 Skill: Concept Objective: 1-3

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48) Which "key player" in the advertising world is composed of the channels of communication that carry the message from the advertiser to the audience and from consumers back to companies?

A) advertiser B) agency C) media D) vendor E) distributors Answer: C Diff: 1 Page Ref: 20 Skill: Concept AACSB: Communication abilities Objective: 1-3 49) Artists, writers, songwriters, photographers, directors, producers, and printers are all examples of which type of "key player" in advertising?

A) advertiser B) agency C) media D) suppliers E) audience Answer: D Diff: 2 Page Ref: 21 Skill: Concept Objective: 1-3 50) Which of the following is NOT a reason an advertising agency might hire an outside supplier?

A) Only suppliers are able to produce commercials.

B) The agency may not have expertise in that area.

C) The agency may be overloaded.

D) The agency may want a fresh perspective.

E) Suppliers provide specialized services.

Answer: A Diff: 1 Page Ref: 21 Skill: Concept Objective: 1-3

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51) Which of the following is NOT one of the four major staff functions in a full-service advertising agency?

A) marketing research B) account management C) creative services D) media planning E) account planning Answer: A Diff: 2 Page Ref: 22 Skill: Concept Objective: 1-3 52) In an advertising agency, which of the following is responsible for internal tracking of completion of projects?

A) the research and development department B) the production department C) the traffic department D) the creative department E) the copywriter Answer: C Diff: 1 Page Ref: 22 Skill: Concept Objective: 1-3 53) A creative ________ is typically a small ad agency that concentrates entirely on preparing the creative execution of the idea or the creative product.

A) department B) holding company C) network D) account E) boutique Answer: E Diff: 1 Page Ref: 23 Skill: Concept Objective: 1-3 54) An agency ________ is a large conglomeration of agencies under a central ownership.

A) boutique B) service C) department D) network E) client Answer: D Diff: 1 Page Ref: 23 Skill: Concept Objective: 1-3 16 .

55) In an advertising agency, who is usually responsible for interpreting the client's marketing research and strategy for the rest of the agency?

A) the account executive B) the account planner C) the traffic department D) the copywriter E) the human resources department Answer: A Diff: 1 Page Ref: 24 Skill: Concept Objective: 1-3 56) In an advertising agency, who is usually responsible for gathering available intelligence on the market and consumers and acting as the voice of the consumer?

A) the account executive B) the account planner C) the traffic department D) the copywriter E) the human resources department Answer: B Diff: 1 Page Ref: 25 Skill: Concept Objective: 1-3 57) Which of the following positions in an advertising agency is most closely involved with creative development?

A) the account executive B) the account planner C) the media buyer D) the copywriter E) the management supervisor Answer: D Diff: 2 Page Ref: 25 Skill: Concept Objective: 1-3 58) Which of the following departments in an advertising agency fulfills the three functions of research, planning, and buying?

A) the account planning department B) the art department C) the traffic department D) the print production department E) the media department Answer: E Diff: 2 Page Ref: 25 Skill: Concept Objective: 1-3 17 .

59) The traditional form of compensation for an advertising agency was a ________.

A) set fee B) monthly retainer C) 5% commission on media billings D) 15% commission on media billings E) yearly retainer Answer: D Diff: 2 Page Ref: 25 Skill: Concept Objective: 1-3 60) A ________ is a form of compensation that involves the agency billing the client each month based on the projected amount of work and the hourly rate charged for that work.

A) set fee B) value bill C) commission D) retainer E) profit-share Answer: D Diff: 1 Page Ref: 25 Skill: Concept Objective: 1-3 61) Which of the following compensation systems is most commonly used by public relations agencies?

A) set fee B) value bill C) commission D) retainer E) pay-for-performance Answer: D Diff: 2 Page Ref: 25 Skill: Concept Objective: 1-3 62) Using value billing, an advertising agency is paid for its ________.

A) creative and strategic ideas B) media placements C) market research D) advertising executions E) share in the profits from a successful campaign Answer: A Diff: 1 Page Ref: 25 Skill: Concept Objective: 1-3

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63) Advertising agencies make most of their money from ________.

A) digital media and personal media B) digital media and television spots C) print media and personal media D) print media and television spots E) personal media and television spots Answer: D Diff: 2 Page Ref: 26 Skill: Concept Objective: 1-4 64) The advertisers' desired impact on the target audience is formally stated as a(n) ________, which is the measurable goal or result that the advertising is intended to achieve.

A) objective B) promotion C) effect D) strategy E) image Answer: A Diff: 1 Page Ref: 27 Skill: Concept Objective: 1-4 65) ________ is the practice of coordinating all marketing communication tools so they send a consistent message using the same basic brand strategy.

A) Marketing communications (MC) B) Integrated advertising execution (IAE) C) Integrated promotional activities (IPA) D) Integrated marketing communications (IMC) E) Global marketing communications (GMC) Answer: D Diff: 1 Page Ref: 27 Skill: Concept AACSB: Communication abilities Objective: 1-4 66) What is meant by the term effective with respect to advertising?

A) The advertising delivers the results the marketer has specified for the advertising.

B) The advertising wins creativity awards, such as the Effie or the Clio.

C) The advertising is remembered by at least 50 percent of the target audience.

D) The advertising results in increased sales.

E) The advertising media exposure was purchased at the lowest possible cost to reach the target audience.

Answer: A Diff: 1 Page Ref: 27 Skill: Concept Objective: 1-4 19 .

67) Which of the following awards is given based on the creativity of an advertisement?

A) the Clio B) the Effie C) the Silver Anvil D) the Reggies E) the AME award Answer: A Diff: 2 Page Ref: 27 Skill: Concept Objective: 1-4 68) Which of the following awards recognizes outstanding public relations efforts?

A) the Clio B) the Effie C) the Silver Anvil D) the Reggies E) the AME award Answer: C Diff: 2 Page Ref: 27 Skill: Concept Objective: 1-4 69) The Effie award in advertising is given by which organization?

A) New York Chapter of the American Marketing Association B) Institute of Practitioners C) New York Festivals Company D) Adweek E) Promotion Marketing Association Answer: A Diff: 2 Page Ref: 27 Skill: Concept Objective: 1-4 70) The First Principle of IMC is that ________.

A) communication must be two-way B) everything communicates C) advertising developed in-house is cost-effective D) effectiveness is more important than efficiency E) efficiency is more important than effectiveness Answer: B Diff: 1 Page Ref: 28 Skill: Concept Objective: 1-4

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71) Advertising is effective only for informing consumers about products and services.

Answer: FALSE Diff: 2 Page Ref: 6 Skill: Concept AACSB: Communication abilities Objective: 1-1 72) The sponsor is identified in an advertising message.

Answer: TRUE Diff: 2 Page Ref: 7 Skill: Concept Objective: 1-1 73) Over the years, identification, information, and entertainment have been the basic elements of marketing communication.

Answer: FALSE Diff: 2 Page Ref: 7 Skill: Concept Objective: 1-1 74) Persuasion can involve emotional messages as well as information.

Answer: TRUE Diff: 2 Page Ref: 8 Skill: Concept Objective: 1-1 75) Products can be services and ideas, as well as goods.

Answer: TRUE Diff: 2 Page Ref: 8 Skill: Concept Objective: 1-1 76) Advertising can be used to transform a product into a distinctive brand.

Answer: TRUE Diff: 2 Page Ref: 9 Skill: Concept AACSB: Communication abilities Objective: 1-1 77) Though advertising is used to showcase brands, it cannot actually create consumer demand.

Answer: FALSE Diff: 2 Page Ref: 9 Skill: Concept Objective: 1-1

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78) As competition in a product category increases, prices tend to increase.

Answer: FALSE Diff: 2 Page Ref: 9 Skill: Concept Objective: 1-1 79) The major types of advertising include brand, retail/local, direct-response, directory, political, business-to-business, institutional, nonprofit, and public service advertising.

Answer: FALSE Diff: 2 Page Ref: 11 Skill: Concept AACSB: Communication abilities Objective: 1-1 80) The objectives in local advertising tend to focus on stimulating store traffic and creating a distinctive image for the retailer.

Answer: TRUE Diff: 2 Page Ref: 11 Skill: Concept Objective: 1-1 81) Direct-response advertising tries to stimulate a sale directly.

Answer: TRUE Diff: 2 Page Ref: 11 Skill: Concept Objective: 1-1 82) Advertising sent from one business to another is known as direct-response advertising.

Answer: FALSE Diff: 2 Page Ref: 11 Skill: Concept AACSB: Communication abilities Objective: 1-1 83) Trade advertising is also known as B2B advertising.

Answer: TRUE Diff: 2 Page Ref: 11 Skill: Concept Objective: 1-1 84) During the Early Age of Print stage in advertising's evolution, ads looked like what we call classified advertising today.

Answer: TRUE Diff: 2 Page Ref: 13 Skill: Concept Objective: 1-2 22 .

85) The strategy of "ads as news" was not introduced until after World War II. Answer: FALSE Diff: 3 Page Ref: 13 Skill: Concept Objective: 1-2 86) An advertisement that uses puffery makes an exaggerated promise about the advertised product.

Answer: TRUE Diff: 3 Page Ref: 14 Skill: Concept Objective: 1-2 87) The advertising strategy of status appeal is used to persuade nonwealthy people to imitate the habits of rich people.

Answer: TRUE Diff: 2 Page Ref: 15 Skill: Concept Objective: 1-2 88) The logic and planning behind the advertisement that gives it direction and focus is known as the creative idea.

Answer: FALSE Diff: 2 Page Ref: 17 Skill: Concept AACSB: Communication abilities Objective: 1-2 89) The key players in advertising are the advertiser, the agency, the media, and the suppliers.

Answer: TRUE Diff: 2 Page Ref: 18 Skill: Concept Objective: 1-3 90) Advertising begins with the agency.

Answer: FALSE Diff: 2 Page Ref: 18 Skill: Concept Objective: 1-3 91) The advertiser initiates the advertising effort by employing the services of an agency.

Answer: FALSE Diff: 2 Page Ref: 18 Skill: Concept Objective: 1-3

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92) The agency person in charge of an advertiser's business is known as the "supplier manager."

Answer: FALSE Diff: 2 Page Ref: 18 Skill: Concept Objective: 1-3 93) It is typical for companies to have only one advertising agency working for them, known as the agency-of-record.

Answer: FALSE Diff: 2 Page Ref: 20 Skill: Concept Objective: 1-3 94) Newspapers, radio or TV stations, billboards, and so forth are known as media vehicles.

Answer: FALSE Diff: 2 Page Ref: 18 Skill: Concept Objective: 1-3 95) The primary advantage of advertising's use of mass media is that the costs are spread over the large number of people that these media reach.

Answer: TRUE Diff: 2 Page Ref: 21 Skill: Concept Objective: 1-3 96) Freelance writers, lighting specialists, and printers are examples of suppliers.

Answer: TRUE Diff: 2 Page Ref: 21 Skill: Concept Objective: 1-3 97) Key players who provide specialized services that assist advertisers, advertising agencies, and the media in creating and placing ads are known as suppliers.

Answer: TRUE Diff: 2 Page Ref: 21 Skill: Concept Objective: 1-2 98) An in-house agency performs most, and sometimes all, of the functions of an outside advertising agency.

Answer: TRUE Diff: 2 Page Ref: 23 Skill: Concept Objective: 1-3

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99) Integrated marketing communication (IMC) means that ads can now be customized to individual consumers.

Answer: FALSE Diff: 2 Page Ref: 27 Skill: Concept AACSB: Communication abilities Objective: 1-4 100) Synergistic marketing communication (SMC) is the practice of ensuring that all brand messages present the same basic brand strategy.

Answer: FALSE Diff: 2 Page Ref: 27 Skill: Concept Objective: 1-4 101) Digital media have led to increased word of mouth conversations about advertising among friends.

Answer: TRUE Diff: 2 Page Ref: 7 Skill: Application AACSB: Use of information technology Objective: 1-1 102) Advertising does not serve a positive societal role.

Answer: FALSE Diff: 2 Page Ref: 11 Skill: Critical Thinking AACSB: Ethical understanding and reasoning abilities Objective: 1-1 103) Advertising helps us shape an image of ourselves by setting up role models with whom we can identify; advertising also gives us a way to express ourselves in terms of our personalities and sense of style through the things we wear and use.

Answer: TRUE Diff: 2 Page Ref: 11 Skill: Synthesis AACSB: Reflective thinking skills Objective: 1-1 104) Companies that need close control over their advertising are more likely to use an agencyof-record than an in-house agency.

Answer: FALSE Diff: 2 Page Ref: 20, 22-23 Skill: Synthesis AACSB: Reflective thinking skills Objective: 1-3 25 .

105) All award-winning ads are effective ads.

Answer: FALSE Diff: 2 Page Ref: 27 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 1-4 106) Name and describe the four roles advertising plays in business and in society.

Answer: (1) Marketing Role Marketing is the process a business uses to satisfy consumer needs and wants by providing goods and services. Advertising transforms a product into a brand.

(2) Communication Role Advertising is a form of mass communication. It transmits different types of market information to connect buyers and sellers in the marketplace. Advertising is just one tool used in marketing communication; others include sales promotion, public relations, direct response, and specialties.

(3) Economic Role In societies that have some level of economic abundance, in which supply exceeds demand, advertising moves from being primarily informational to creating demand for a particular brand.

(4) Societal Role Advertising has a number of social roles. It informs consumers about products, mirrors fashion design trends, and adds to consumers' aesthetic sense. It has an educational role in that it teaches about new products and how to use them. It helps us shape an image of ourselves by setting up role models that we can identify with and express ourselves.

Diff: 2 Page Ref: 9-11 Skill: Synthesis AACSB: Reflective thinking skills Objective: 1-1

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107) Name and describe the seven common types of advertising.

Answer: (1) Brand Advertising The most visible type of advertising is national consumer, or brand, advertising. It focuses on the development of a long-term brand identity and image.

(2) Retail or Local Advertising Message announces facts about products that are available in nearby stores with the objective to focus on stimulating store traffic and creating a distinctive image for the retailer. Local advertising can refer to a retailer, manufacturer, or distributor who offers products in a fairly restricted geographic area.

(3) Direct-Response Advertising Can use any advertising medium, including direct mail, but the message is different from that of national and retail advertising in that it tries to stimulate a sale directly.

(4) Business-to-Business Advertising Sent from one business to another and is not directed at general consumers.

(5) Institutional Advertising (a.k.a. Corporate Advertising) Messages focus on establishing a corporate identity or winning the public over to the organization's point of view.

(6) Nonprofit Advertising Not-for-profit organizations advertise for customers, members, and volunteers, as well as for donations and other forms of program participation.

(7) Public Service Advertising Communicates a message on behalf of some good cause and is usually created by advertising professionals for free, and the media often donate the time and space.

Diff: 3 Page Ref: 11 Skill: Synthesis AACSB: Reflective thinking skills Objective: 1-1 108) Describe the Early Age of Agencies in the evolution of advertising.

Answer: The first ad agency was opened in 1848, and the J. Walter Thompson agency was formed in 1864. This agency is still in existence. Large-scale ad campaigns began, as well as the commission system for agency compensation. Professionalism in advertising began to take shape as advertisers and marketers became more concerned about creating effective ads. Different philosophies of advertising also began to take shape, such as "ads as news" and "truth well told."

The end of this era saw the introduction of brand names such as Baker's Chocolate and Ivory Soap. Many ads used puffery, or exaggerated claims, as well as artistic illustrations.

Diff: 2 Page Ref: 13-14 Skill: Synthesis AACSB: Reflective thinking skills Objective: 1-2

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109) Name and describe the four major players in advertising.

Answer: (1) Advertiser–The person or organization that uses advertising to send out a message about its product. The advertiser initiates the advertising effort by identifying a marketing problem that advertising can solve and makes the final decisions about the target audience, the size of the advertising budget, and approves the advertising plan. Finally, the advertiser hires the advertising agency, becoming the agency's client responsible for monitoring the work and paying the bills for the agency's work on its account.

(2) Advertising Agency–Creates the advertising. Outside agencies are often more efficient in creating an advertisement or a complete campaign than the advertiser would be on its own. Large advertisers participate in the advertising process either through their advertising departments or through their in-house agencies. Advertising departments act as a liaison between the marketing department and the advertising agency and other vendors. In-house agencies perform most, and sometimes all, of the functions of an outside advertising agency.

(3) Media–Composed of the channels of communication that carry the message from the advertiser to the audience. Media are referred to as channels of communication, with mass media being the most cost-efficient form.

(4) Suppliers–The group of service organizations that assist advertisers, agencies, and the media in creating and placing the ads by providing specialized services. Members of this group include artists, writers, photographers, directors, and so on. The other players might hire a supplier because of his or her expertise, they may be overloaded, they might want a fresh perspective, and/or cost efficiency.

Diff: 2 Page Ref: 18-21 Skill: Synthesis AACSB: Reflective thinking skills Objective: 1-3 110) Several ads for a company have won creativity awards. Does that mean the ads were effective? Explain your answer.

Answer: Not necessarily. Creativity awards, such as the Clios, are based on an ad's creativity alone. While the creative idea and execution are two of the fundamental concepts necessary for an ad to be effective, they are not necessarily sufficient. Effective ads are ones that satisfy consumers' objectives by engaging them with a relevant message that catches their attention, speaks to their interests, and remains in their memories. From a company's perspective, the ads achieve the company's marketing objectives, which are usually related to growth and sales, and contribute to the success of the business.

Diff: 3 Page Ref: 27 Skill: Synthesis AACSB: Reflective thinking skills Objective: 1-4

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111) When Proctor & Gamble developed the Mr. Clean Magic Eraser, the company needed to explain how the product cleans grime from walls without removing paint. Which basic role of advertising was most likely the focus of the campaign for this new product?

A) providing information B) providing product identification C) providing entertainment D) providing social value E) providing comparisons Answer: A Diff: 2 Page Ref: 7 Skill: Application AACSB: Reflective thinking skills Objective: 1-1 112) An e-mail from Amazon.com offers free shipping on your next purchase of more than $35.

This is an example of ________.

A) sales promotion B) publicity C) public relations D) word of mouth E) mass media Answer: A Diff: 2 Page Ref: 8 Skill: Analytic skills AACSB: Application Objective: 1-1 113) Some critics claim that advertising has a strong impact on how young women view themselves, often resulting in negative self-images. Some critics have even claimed that advertising is a major cause of eating disorders for young women because ads targeted to this demographic use unreasonably thin models. Which of the four functions of advertising does this best illustrate?

A) marketing role B) economic role C) societal role D) public service role E) institutional role Answer: C Diff: 2 Page Ref: 9 Skill: Application AACSB: Analytic skills Objective: 1-1

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114) 6SecondABS, an abdominal workout device, runs an infomercial that lasts 30 minutes and demonstrates the benefits of the product. The infomercial claims that users of the product can reduce their waist and lose one size in a week when following the 6secondabs workout plan.

Viewers can call the 1-800 number on the infomercial to purchase the product directly. To stimulate a sale immediately, the infomercial offers several incentives, such as a lower price and additional products, if consumers call in the "next 30 minutes." Which type of advertising is this?

A) retail B) local C) public service D) direct response E) institutional Answer: D Diff: 2 Page Ref: 11 Skill: Application AACSB: Analytic skills Objective: 1-1 115) Which of the following would most likely be created pro bono by an advertising agency?

A) an online direct-response advertisement for school supplies B) a trade advertisement for a computer components manufacturer C) an institutional advertisement designed to improve a company's image after a corporate ethics scandal D) a public service announcement designed to encourage families to regularly exercise together E) a nonprofit advertisement for a Methodist church encouraging new membership Answer: D Diff: 3 Page Ref: 11 Skill: Application AACSB: Reflective thinking skills Objective: 1-1 116) The cost of purchasing a 30-second advertising spot during the Super Bowl is very high, typically millions of dollars. Despite the cost, commercials for products such as Coca-Cola, Doritos, and Bud Light run during the Super Bowl every year. In advertising terms, the Super Bowl is the ________.

A) media vehicle B) agent C) message D) supplier E) client Answer: A Diff: 2 Page Ref: 20 Skill: Application AACSB: Analytic skills Objective: 1-3

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117) For the Truth® campaign, Porter + Bogusky and Arnold was the ________ that was hired by the American Legacy Foundation to plan and implement the advertising effort.

A) advertiser B) media buying company C) client D) advertising agency E) advertising department Answer: D Diff: 2 Page Ref: 20 Skill: Application AACSB: Analytic skills Objective: 1-3 118) An ad for Maybelline age-minimizing makeup in Ladies' Home Journal magazine featured actress Melina Kanakaredes and offered readers a $1-off coupon when they try the new makeup.

The medium of this ad is ________.

A) Melina Kanakaredes B) Ladies' Home Journal C) readers who redeem the $1-off coupon D) Maybelline E) the target market to whom Melina Kanakaredes appeals Answer: B Diff: 2 Page Ref: 20 Skill: Application AACSB: Analytic skills Objective: 1-3 119) Brad is a music industry major in college, and he wants to work in the advertising industry writing and performing jingles for radio commercials. If Brad gets a contract with an agency to write a jingle for a commercial, then Brad would be a(n) ________.

A) advertiser B) agency C) media D) supplier E) vehicle Answer: D Diff: 2 Page Ref: 21 Skill: Application AACSB: Analytic skills Objective: 1-3

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120) Bolls and Associates is an advertising agency that will develop a client's advertising campaign from strategy through execution and media exposure. However, Bolls and Associates does not actually produce the television commercials or shoot the photography for print ads; rather, the agency hires outside experts to produce those elements of the campaign. Which type of "key player" is Bolls and Associates advertising agency using to produce the advertisements for their client?

A) advertiser B) agency C) media D) supplier E) vehicle Answer: D Diff: 2 Page Ref: 21 Skill: Application AACSB: Analytic skills Objective: 1-3 121) Which of the following is an example of consumer-generated advertising?

A) Toyota's presence in online social networks B) Nike's Nike Plus running Web site C) MasterCard's use of "Priceless" commercials shot by customers D) Neiman Marcus's InCircle Rewards program for its best customers E) The Lexus Covenant aimed at creating customer delight Answer: C Diff: 2 Page Ref: 26 Skill: Application AACSB: Reflective thinking skills Objective: 1-4 122) Delia's is a clothing retailer that targets teenage girls. It runs coordinated promotions for its catalogs, Web site, and retail outlets. It uses the same models in its catalog and in its print ads as well as on its Web site. Delia's works to make sure its public relations activities as well as its sales promotions harmonize with its advertising in all venues. From this information, you can infer that Delia's is using ________.

A) buzz marketing B) public relations C) integrated marketing communication D) word of mouth marketing E) mass communication Answer: C Diff: 2 Page Ref: 27 Skill: Application AACSB: Analytic skills Objective: 1-4

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123) The cost of purchasing a 30-second advertising spot during the Super Bowl is very high, typically millions of dollars. From the advertiser's perspective, what is the most important benefit of placing an advertisement during the Super Bowl?

A) the ability to reach a mass audience B) the best media for introducing products C) the ability to make personal connections with consumers D) the likelihood that consumers will make an immediate purchase decision E) the persuasive nature of television commercials Answer: A Diff: 2 Page Ref: 21 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 1-3 124) For an advertisement to be considered effective, what is the first thing it must do?

A) hold consumers' interest B) gain consumers' attention C) convince consumers to change their purchasing behavior D) convince consumers to continue buying the brand E) remind consumers of the brand and their positive feelings about it Answer: B Diff: 2 Page Ref: 27 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 1-4 125) The truth® campaign is a series of advertisements run by the American Legacy Foundation.

The campaign tries to reach teenagers with antismoking messages. Which of the following is most likely the objective of this campaign?

A) to encourage teens to buy products B) to change smoking legislation C) to reduce the percentage of teens who begin smoking D) to create a public service announcement E) to encourage teens to become politically active Answer: C Diff: 2 Page Ref: 27 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 1-4

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126) Which of the following advertising situations would LEAST likely be considered "puffery"?

A) Mr. Clean coming to a housewife's rescue B) instantly toned thighs and legs as a result of using the Thigh Master for only 15 minutes C) children immediately growing into attractive adults as a result of drinking milk D) a retired couple drinking a vitamin and protein shake and then going bicycling E) a sleepy mom who wakes up to a gray day, drinks a cup of coffee, and then looks out her window to see golden sunshine, beautiful flowers blooming, songbirds singing, and a rainbow on the horizon Answer: D Diff: 3 Page Ref: 14 Skill: Application AACSB: Reflective thinking skills Objective: 1-2 Refer to the passage below to answer the following questions.

Polo Ralph Lauren manufactures and sells high-quality, expensive brands of clothing as well as accessories, cosmetics, and home products. The company maintains complete control over the brand image and all of the functions necessary to develop, execute, and deliver advertising. Polo appeals to consumers' lifestyle aspirations, and its products are of high quality and better than most competitors' offerings. The objective in the company's advertising is to convey this image and the fashion statement it makes.

127) Because Polo Ralph Lauren wants to maintain close control over its image and advertising, which of the following statements is most likely true?

A) Polo Ralph Lauren will most likely use an outside advertising agency to develop and execute its advertising.

B) Polo Ralph Lauren will most likely use an agency-of-record to develop and execute its advertising.

C) Polo Ralph Lauren will most likely not use any outside resources, such as suppliers, to assist in developing and executing its advertising.

D) Polo Ralph Lauren will get better media rates by not using an advertising agency to purchase advertising time and space.

E) Polo Ralph Lauren will most likely use an in-house agency to develop and execute advertising.

Answer: E Diff: 2 Page Ref: 20 Skill: Application AACSB: Analytic skills Objective: 1-3

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128) When Polo Ralph Lauren advertises in fashion magazines, it focuses on the company's brand identity and image by merely showcasing a beautiful, well-dressed person without giving any information at all except the brand name. What type of advertising is this?

A) institutional advertising B) direct-response advertising C) brand advertising D) business-to-business advertising E) indirect advertising Answer: C Diff: 2 Page Ref: 11 Skill: Application AACSB: Analytic skills Objective: 1-1 129) Which of the following approaches would Polo Ralph Lauren most likely take in an advertising campaign?

A) puffery B) ads as news C) status appeal D) classified advertising E) truth well told Answer: C Diff: 3 Page Ref: 11 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 1-2 130) Several of Polo Ralph Lauren's ads have won awards based solely on their creative ideas.

Of the following, what type of awards might these have been?

A) Effie B) Clio C) Reggie D) Silver Anvil E) Halo Answer: B Diff: 2 Page Ref: 27 Skill: Application AACSB: Analytic skills Objective: 1-4

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131) Describe the three major roles of advertising.

Answer: The roles of advertising are: (1) identifying a product and/or the store where it is sold, (2) providing information about the product, and (3) persuading people to buy things. Product identification is the most straightforward, and oldest, role of advertising. Advertisements also provide information, identifying the strengths of different products and showing how to use them. Persuasion is perhaps the most important role of advertising. This refers to persuading the customer to act and purchase a product, or, in the case of nonprofit advertising, change a behavior.

Diff: 2 Page Ref: 6 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 1-1 132) Define advertising.

Answer: Advertising is paid persuasive communication that uses mass and interactive media to reach broad audiences in order to connect an identified sponsor with a target audience.

Diff: 2 Page Ref: 7 Skill: Application AACSB: Reflective thinking skills Objective: 1-1 133) How can advertising deliver one-to-one communication with a large group of people?

Answer: Direct-response advertising, particularly those types that use digital media, addresses individual members of a targeted group.

Diff: 3 Page Ref: 7 Skill: Synthesis AACSB: Reflective thinking skills Objective: 1-1 134) Why is advertising often seen as the driving force in marketing communications?

Answer: Of all the marketing communication tools, advertising commands the biggest budget and accounts for the largest number of agencies and professionals.

Diff: 2 Page Ref: 8 Skill: Synthesis AACSB: Reflective thinking skills Objective: 1-1 135) How does advertising create cost efficiencies?

Answer: Advertising creates cost efficiencies by increasing demand among a large group of people; this increased demand results in higher levels of sales and, ultimately, lower prices.

Diff: 3 Page Ref: 9 Skill: Synthesis AACSB: Reflective thinking skills Objective: 1-1

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136) Calvin Klein used some very controversial ads depicting what looked like drug-addicted teenagers posing in sexually suggestive poses. What type of advertising is this? Explain your answer.

Answer: This is an example of brand advertising, because it was advertising of a brand that has national distribution and focused on the development of the brand's identity and image. Calvin Klein wanted to establish the image of the brand as being unique and sexy.

Diff: 2 Page Ref: 11 Skill: Application AACSB: Analytic skills Objective: 1-1 137) How is public service advertising different from brand advertising?

Answer: Public service advertising does not seek to develop a brand identity or image, which is the aim of brand advertising. Instead, public service advertising is typically created pro bono (free of charge) and is aired or printed for free; the message is on behalf of a good cause, such as stopping drunk driving or child abuse.

Diff: 3 Page Ref: 11 Skill: Synthesis AACSB: Reflective thinking skills Objective: 1-1 138) How did increasing literacy rates and increased access to printed materials affect advertising in the Early Age of Print?

Answer: As printed materials newspapers, books, and pamphlets became more available, the first ads in these media also appeared. Newspaper and magazine ads began appearing in the 1700s.

Diff: 3 Page Ref: 13 Skill: Synthesis AACSB: Reflective thinking skills Objective: 1-2 139) In the 1880s, advertising was referred to by advertising legend Albert Lasker as "salesmanship in print driven by a reason why." Explain what this means.

Answer: Lasker was one of the first to put forward a theory of advertising. According to him, an ad should make a claim about a product ("salesmanship") and explain the support behind that claim (a reason why).

Diff: 3 Page Ref: 13 Skill: Synthesis AACSB: Reflective thinking skills Objective: 1-2

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140) In the 1930s, John Caples published Tested Advertising Methods, which discussed his theories about the pulling power of headlines. How did Caples' work change the style of advertising writing?

Answer: Caples' research led to a shift in advertising writing, which had been wordy and full of puffery. Caples' research led to more concise, fresh advertising copy.

Diff: 3 Page Ref: 14 Skill: Synthesis AACSB: Reflective thinking skills Objective: 1-2 141) In the 1960s and 1970s, Leo Burnett used cultural archetypes in his advertisements. What is a cultural archetype? Give an example.

Answer: For Burnett, a cultural archetype was a mythical character who represents American values. Examples include the Jolly Green Giant, Tony the Tiger, and the Pillsbury Doughboy.

Diff: 3 Page Ref: 16 Skill: Application AACSB: Reflective thinking skills Objective: 1-2 142) Ads during the Super Bowl cost an advertiser more than $2 million for 30 seconds of time.

Why would an advertiser pay this much for advertising time?

Answer: Super Bowl advertising can reach a mass audience. One of the big advantages of mass media advertising is that it can reach a lot of people with a single message in a very cost-efficient manner.

Diff: 2 Page Ref: 21 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 1-3 143) Why was Apple's "1984" advertisement so effective?

Answer: Apple had the right product (a new PC) at the right time in the right place (advertised during the Super Bowl). The ad became news, generating tremendous publicity for Apple's new product.

Diff: 3 Page Ref: 10 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 1-1

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144) Several large corporations have several brand offerings in several product categories. How might such corporations organize for advertising?

Answer: Most large businesses have advertising departments (or marketing services), whose primary responsibility is to act as a liaison between the marketing department and the advertising agency (or agencies) and other vendors. Many companies may have hundreds of agencies working for them, although they normally have an agency-of-record, which does most of their business and may even manage other agencies.

Diff: 2 Page Ref: 20 Skill: Synthesis AACSB: Reflective thinking skills Objective: 1-3 145) Why might an advertiser use an in-house agency?

Answer: Companies that need closer control over their advertising have their own in-house agencies. Large retailers, for example, find that doing their own advertising provides cost savings as well as the ability to meet deadlines.

Diff: 2 Page Ref: 20 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 1-3 146) Calvin Klein used some very controversial ads depicting what looked like drug-addicted teenagers posing in sexually suggestive poses. Calvin Klein claimed that all the models in the ads were adults, but critics claimed that it did not look that way. It was reported that the ads were produced "in-house." Why do you think Calvin Klein used an in-house agency to produce these ads instead of an outside agency?

Answer: One reason advertisers use an in-house agency is so they can maintain complete creative control over their advertising and brand image. Calvin Klein is no stranger to controversial advertising. It would appear difficult to explain this creative idea to an outside agency, and an independent agency might not have been willing to produce such controversial advertising.

Diff: 3 Page Ref: 20 Skill: Critical Thinking AACSB: Ethical understanding and reasoning abilities Objective: 1-3 147) A 30-second spot on a hit TV show can cost advertisers more than $600,000. Why is mass media considered cost-effective when it costs so much?

Answer: Although it's true that mass media advertising, particularly on television, is very expensive on an absolute basis, mass media advertising can be cost-effective because the costs are spread over the large number of people reached by the ad. American Idol is one of the most popular TV shows, which means that advertisers will reach millions of viewers with one message.

Diff: 2 Page Ref: 21 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 1-3 39 .

Refer to the following passage to answer the questions below.

Joan recently opened a store in her community that specializes in home decor, including some furniture, such as sofas, chairs, and end tables, but mostly home-decorating accessories. She is also a certified interior decorator, and she provides expertise in assisting do-it-yourself home decorators in "putting it all together." She has not been pleased with her sales so far, and she decides she needs to promote her business.

148) If Joan decides to use advertising, what type of advertising will that be and what should it emphasize?

Answer: The type of advertising will be retail, or local, advertising, which is advertising that announces facts about products that are available in nearby stores with the objective of stimulating store traffic and creating a distinctive image for Joan's store. The advertising should emphasize the line of products offered in the retail store, but Joan should probably also stress her expertise as many home decor stores for "do-it-yourselfers" do not provide that expertise.

Diff: 2 Page Ref: 11 Skill: Synthesis AACSB: Reflective thinking skills Objective: 1-1 149) What other communications tools besides advertising can Joan use? Give two specific examples.

Answer: There are several other marketing communications tools besides advertising that Joan can use to promote her business, including sales promotion, public relations, and direct response.

Sales promotion could include providing an incentive for repeat purchases through a loyalty buyer program, or she might offer a premium with the purchase of a major item, such as providing accent pillows with the purchase of a sofa. Joan could also attempt to get free publicity by getting interviewed by the local newspaper or going on a local television program providing decorating tips for do-it-yourself home decorators. She could also host free (or paid) home decorating seminars at her store, which is a type of event.

Diff: 2 Page Ref: 8 Skill: Synthesis AACSB: Analytic skills Objective: 1-1

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150) Joan does not have a lot of resources to spend on promoting her business. What key player in advertising is most likely to be of value to Joan in assisting her in her advertising efforts?

Answer: The key players in advertising are the advertiser (Joan), advertising agency, media, and suppliers. Because Joan is a local retailer with limited geographic reach and limited financial resources, she would benefit from using local media, such as radio and newspapers. Many media organizations will assist advertisers in the design and production of advertisements, such as a retailer preparing an ad for the local newspaper. Some, such as radio or cable television, may even produce the advertisement for little or no charge. Local media also assist advertisers in gaining a better understanding of their target audience as well as setting reasonable objectives for their advertising. Suppliers, such as photographers and television production companies, may also be able to assist Joan in producing her ads. Finally, Joan could use a full-service advertising agency that will perform every function of advertising for her, but with her limited resources, this may not be feasible, or even necessary.

Diff: 2 Page Ref: 18 Skill: Synthesis AACSB: Reflective thinking skills Objective: 1-3

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Advertising & IMC: Principles and Practice, 9e (Moriarty) Chapter 2 Integrated Brand Communication 1) Which of the following refers to the way a product is designed, tested, produced, branded, packaged, priced, distributed, and promoted?

A) advertising B) promotion C) marketing D) management E) production Answer: C Diff: 2 Page Ref: 34 Skill: Concept Objective: 2-1 2) The goal of marketing is to match a product's availability to ________.

A) the competition's availability B) the previous year's level of sales C) the company's production capabilities D) the consumers' need, desire, or demand for the product E) the legal limits of availability Answer: D Diff: 2 Page Ref: 35 Skill: Concept Objective: 2-1 3) The classification to which a product is assigned is known as the ________.

A) product category B) product position C) market mix D) product class E) product mix Answer: A Diff: 1 Page Ref: 35 Skill: Concept Objective: 2-1

1 .

4) The four tools of product, price, place (distribution), and promotion are collectively referred to as the ________.

A) product mix B) promotion mix C) marketing mix D) integration elements E) exchange elements Answer: C Diff: 1 Page Ref: 35 Skill: Concept Objective: 2-1 5) The marketing mix is also known as the ________.

A) four Cs B) four Ms C) competitive advantage D) marketing channel E) four Ps Answer: E Diff: 1 Page Ref: 35 Skill: Concept Objective: 2-1 6) The act of trading a desired product or service to receive something of value in return is called a(n) ________.

A) distribution B) position C) exchange D) market E) demand Answer: C Diff: 1 Page Ref: 35 Skill: Concept Objective: 2-1 7) Which of the following are considered "key players" in the marketing industry?

A) marketers B) suppliers or vendors C) distributors or retailers D) agencies E) all of the above Answer: E Diff: 2 Page Ref: 35 Skill: Concept Objective: 2-1

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8) Which key player in marketing is the organization, company, or manufacturer producing the product and offering it for sale?

A) marketer B) supplier or vendor C) distributor or retailer D) agency E) brand manager Answer: A Diff: 1 Page Ref: 35 Skill: Concept Objective: 2-1 9) The materials and ingredients used in producing the product are obtained from other companies that are referred to as a producer's ________.

A) marketers B) suppliers or vendors C) distributors or retailers D) agencies E) exchangers Answer: B Diff: 2 Page Ref: 36 Skill: Concept Objective: 2-1 10) The complex network of suppliers that produce components and ingredients that are then sold to the manufacturer is known as the ________.

A) network chain B) channel of distribution C) supply chain D) ingredient chain E) distribution chain Answer: C Diff: 1 Page Ref: 36 Skill: Concept Objective: 2-1 11) The ________ refers to the various companies that are involved in moving a product from its manufacturer into the hands of its buyer.

A) network chain B) distribution chain C) supply chain D) ingredient chain E) promotion network Answer: B Diff: 1 Page Ref: 36 Skill: Concept Objective: 2-1 3 .

12) What term is used to mean a place or a particular type of buyer?

A) market B) position C) channel D) target E) segment Answer: A Diff: 1 Page Ref: 37 Skill: Concept Objective: 2-1 13) The percentage of the total sales in a product category that a particular brand has is called the brand's ________.

A) position B) market segment C) distribution D) share of market E) exchange Answer: D Diff: 2 Page Ref: 37 Skill: Concept Objective: 2-1 14) Which of the following is NOT considered a main type of market?

A) consumer B) business-to-business C) channel D) institutional E) media Answer: E Diff: 2 Page Ref: 37 Skill: Concept Objective: 2-1 15) ________ markets consist of people who buy products and services for personal or household use.

A) Consumer B) Business-to-business C) Channel D) Institutional E) Media Answer: A Diff: 1 Page Ref: 37 Skill: Concept Objective: 2-1

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16) ________ markets consist of companies that buy products or services to use in their own businesses or in making other products.

A) Consumer B) Business-to-business C) Distribution D) Institutional E) Indirect Answer: B Diff: 1 Page Ref: 37 Skill: Concept Objective: 2-1 17) ________ markets include a wide variety of profit and nonprofit organizations, such as hospitals, government agencies, and schools that provide goods and services for the benefit of society.

A) Consumer B) Business-to-business C) Channel D) Institutional E) Distribution Answer: D Diff: 1 Page Ref: 37 Skill: Concept Objective: 2-1 18) ________ markets are made up of members of a company's distribution chain.

A) Consumer B) Business-to-business C) Channel D) Institutional E) Media Answer: C Diff: 1 Page Ref: 37 Skill: Concept Objective: 2-1 19) Resellers in a channel market are also known as ________.

A) suppliers B) vendors C) intermediaries D) shareholders E) competitors Answer: C Diff: 1 Page Ref: 37 Skill: Concept Objective: 2-1 5 .

20) Most advertising dollars are spent in ________ markets.

A) consumer B) business-to-business C) distribution D) channel E) institutional Answer: A Diff: 2 Page Ref: 37 Skill: Concept Objective: 2-1 21) Firms usually reach ________ markets through mass media.

A) consumer B) business-to-business C) distribution D) channel E) institutional Answer: A Diff: 2 Page Ref: 37 Skill: Concept Objective: 2-1 22) What is the first step in the marketing process?

A) Set objectives for the marketing effort.

B) Research the consumer market and the competitive marketplace and develop a situation analysis.

C) Assess consumer needs and wants relative to the product, segment the market into groups that are likely to respond, and target specific markets.

D) Differentiate and position the product relative to the competition.

E) Develop the marketing mix strategy.

Answer: B Diff: 2 Page Ref: 39 Skill: Concept Objective: 2-1 23) What is the second step in the marketing process?

A) Assess consumer needs and wants relative to the product, segment the market into groups that are likely to respond, and target specific markets.

B) Set objectives for the marketing effort.

C) Research the consumer market and the competitive marketplace and develop a situation analysis.

D) Differentiate and position the product relative to the competition.

E) Develop the marketing mix strategy.

Answer: B Diff: 2 Page Ref: 39 Skill: Concept Objective: 2-1 6 .

24) Which of the steps in the marketing planning process listed below follows the others?

A) Assess consumer needs and wants relative to the product, segment the market into groups that are likely to respond, and target specific markets.

B) Set objectives for the marketing effort.

C) Research the consumer market and the competitive marketplace and develop a situation analysis.

D) Differentiate and position the product relative to the competition.

E) Develop the marketing mix strategy.

Answer: E Diff: 3 Page Ref: 39 Skill: Concept Objective: 2-1 25) Which of the following suggests that marketing should focus first on identifying the needs and wants of the customer?

A) the exchange concept B) the marketing concept C) the product concept D) the brand concept E) the production concept Answer: B Diff: 1 Page Ref: 39 Skill: Concept Objective: 2-1 26) How a brand is different and superior in some way is referred to as ________.

A) brand parity B) brand equity C) competitive advantage D) psychological pricing E) brand meaning Answer: C Diff: 1 Page Ref: 40 Skill: Concept Objective: 2-1 27) Which of the following does NOT add value to a product?

A) advertising B) convenience C) useful features D) branding E) All of the above add value to a product.

Answer: E Diff: 2 Page Ref: 41 Skill: Concept Objective: 2-1 7 .

28) Which of the following is NOT a way advertising adds value to a product?

A) making the product appear more desirable B) making the product appear more of a status symbol C) making the product more convenient for consumers to buy D) providing news and useful information of interest to consumers E) All of the above are ways advertising adds value to a product.

Answer: C Diff: 3 Page Ref: 41 Skill: Concept Objective: 2-1 29) Which marketing element includes product design and development, performance, branding, and packaging?

A) distribution B) branding C) product D) place E) promotion Answer: C Diff: 1 Page Ref: 41 Skill: Concept Objective: 2-1 30) Which marketing element includes personal selling, advertising, public relations, sales promotion, direct marketing, events and sponsorships, point-of-purchase, and the communication aspects of packaging?

A) price B) distribution C) product D) place E) promotion Answer: E Diff: 1 Page Ref: 41 Skill: Concept Objective: 2-1 31) The promotion "P" of marketing is also known as ________.

A) product B) distribution C) price D) marketing communication E) differentiation Answer: D Diff: 1 Page Ref: 41 Skill: Concept AACSB: Communication abilities Objective: 2-1 8 .

32) Which element of the marketing mix includes distribution channels, market coverage, and co-op advertising?

A) product B) promotion C) price D) communication E) place Answer: E Diff: 1 Page Ref: 41 Skill: Concept Objective: 2-2 33) Which of the following is LEAST likely to be a factor on which the price of a product is based?

A) what the market will bear B) the amount of support provided by resellers C) economic well-being of the consumer D) the consumer's ability to gauge the value E) the relative value of the product Answer: B Diff: 3 Page Ref: 42 Skill: Concept Objective: 2-1 34) A consumer's ability to gauge the value of a product is referred to as the ________.

A) psychological price B) price/value proposition C) exchange rate D) comparative price E) value exchange Answer: B Diff: 2 Page Ref: 42 Skill: Concept Objective: 2-1 35) Which pricing strategy uses marketing communication to manipulate the customer's judgment of value?

A) psychological pricing B) value pricing C) distribution pricing D) copy pricing E) customary pricing Answer: A Diff: 1 Page Ref: 42 Skill: Concept Objective: 2-1 9 .

36) Which pricing strategy is used to communicate a dramatic or temporary price reduction?

A) promotional pricing B) value pricing C) parity pricing D) copy pricing E) customary pricing Answer: A Diff: 2 Page Ref: 42 Skill: Concept Objective: 2-1 37) Using ________, a marketer sets a high price for a product to make the product seem worthy or valuable.

A) prestige pricing B) value pricing C) distribution pricing D) promotional pricing E) customary pricing Answer: A Diff: 2 Page Ref: 42 Skill: Concept Objective: 2-1 38) When a company distributes its products directly to buyers without the use of a reseller, the company is using ________.

A) indirect marketing B) no-channel marketing C) direct marketing D) indirect channel marketing E) integrated marketing Answer: C Diff: 1 Page Ref: 42 Skill: Concept Objective: 2-1 39) When a company distributes its products through one or more distributors and resellers, the company is using ________.

A) channel marketing B) no-channel marketing C) direct marketing D) multi-level marketing E) integrated marketing Answer: A Diff: 2 Page Ref: 43 Skill: Concept Objective: 2-1 10 .

40) Which strategy directs marketing efforts at the consumer?

A) push B) exchange C) pull D) coverage E) cooperative Answer: C Diff: 1 Page Ref: 43 Skill: Concept Objective: 2-1 41) A ________ strategy directs marketing efforts at resellers, and success depends on the ability of these intermediaries to market the product, which they often do with advertising.

A) push B) pull C) coverage D) direct E) exchange Answer: A Diff: 1 Page Ref: 43 Skill: Concept Objective: 2-1 42) Which marketing communication tool uses face-to-face contact between the marketer and a prospective customer?

A) advertising B) sales promotion C) public relations D) personal sales E) customary marketing Answer: D Diff: 1 Page Ref: 43 Skill: Concept AACSB: Communication abilities Objective: 2-1 43) Which of the following refers specifically to creating the tangible and intangible elements of a brand?

A) advertising B) branding C) exchanging D) marketing E) integrating Answer: B Diff: 1 Page Ref: 44 Skill: Concept Objective: 2-2 11 .

44) Computers, automobiles, and toothpaste are all examples of ________.

A) services B) ideas C) brands D) products E) markets Answer: D Diff: 2 Page Ref: 44 Skill: Concept Objective: 2-2 45) A(n) ________ is a perception, often imbued with emotion, which results from experiences with and information about a company or a line of products.

A) advertisement B) brand C) tagline D) logo E) trademark Answer: B Diff: 1 Page Ref: 44 Skill: Concept Objective: 2-2 46) Which of the following is the harmonization of an organization's identity and its image?

A) integrated marketing communication B) standardized marketing C) channel marketing D) organizational branding E) brand transformation Answer: D Diff: 2 Page Ref: 45 Skill: Concept Objective: 2-2 47) Parity products are those that have ________.

A) no brand name B) few competitors C) few distinguishing features D) a store's label E) an international market Answer: C Diff: 1 Page Ref: 46 Skill: Concept Objective: 2-2

12 .

48) Store brands are also referred to as ________.

A) generic brands B) private labels C) regional brands D) fast-moving consumer goods E) licensed brands Answer: B Diff: 2 Page Ref: 46 Skill: Concept Objective: 2-2 49) Which of the following were originally sold in black-and-white, no-frills packaging at low prices?

A) generic brands B) private labels C) regional brands D) fast-moving consumer goods E) licensed brands Answer: A Diff: 1 Page Ref: 46 Skill: Concept Objective: 2-2 50) Which of the following was the top global brand, based on brand value, in 2009?

A) Google B) Microsoft C) Coca-Cola D) McDonald's E) Walmart Answer: A Diff: 2 Page Ref: 48 Skill: Concept AACSB: Dynamics of the global economy Objective: 2-2 51) Which of the following is NOT a desirable quality for a brand name?

A) It should suggest something about the product's benefits and qualities.

B) It should be easy to pronounce, recognize, and remember.

C) The brand should be a long word to get attention.

D) The name should translate easily into foreign languages.

E) It should be distinctive.

Answer: C Diff: 3 Page Ref: 49 Skill: Concept Objective: 2-2

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52) A ________ is a legal sign that indicates ownership.

A) trademark B) logo C) brand D) brand license E) brand position Answer: A Diff: 1 Page Ref: 49 Skill: Concept Objective: 2-2 53) ________ refers to how consumers see a brand relative to the other brands in the product category.

A) Segmenting B) Targeting C) Differentiating D) Positioning E) Trademarking Answer: D Diff: 2 Page Ref: 50 Skill: Concept Objective: 2-2 54) Bold, fun, exciting, and daring are all examples of ________.

A) brand promises B) brand positions C) brand personalities D) brand images E) brand value Answer: C Diff: 2 Page Ref: 50 Skill: Concept Objective: 2-2 55) Brand value comes in two forms: the value to the ________ and the value to the ________.

A) consumer; competitor B) consumer; corporation C) competitor; channel D) corporation; competitor E) shareholder; stakeholder Answer: B Diff: 2 Page Ref: 51 Skill: Concept Objective: 2-2

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56) Brand ________ programs offer customers rewards for repeat business.

A) value B) equity C) extension D) integration E) loyalty Answer: E Diff: 1 Page Ref: 51 Skill: Concept Objective: 2-2 57) ________ is the intangible value of the brand based on the relationships with its stakeholders, as well as intellectual property.

A) Brand position B) Brand parity C) Brand image D) Brand identity E) Brand equity Answer: E Diff: 1 Page Ref: 51-52 Skill: Concept Objective: 2-2 58) Which of the following measures the financial value the brand contributes to a company?

A) trademark B) copyright C) brand image D) brand identity E) brand equity Answer: E Diff: 2 Page Ref: 51 Skill: Concept Objective: 2-2 59) ________ refers to promoting and advertising the use of a brand name for a component used in manufacturing a product.

A) Co-branding B) Ingredient branding C) Inside branding D) Brand licensing E) Integrated branding Answer: B Diff: 1 Page Ref: 52 Skill: Concept Objective: 2-2

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60) A company that uses an established brand name with a related line of products is using a(n) ________.

A) co-brand B) ingredient brand C) brand extension D) licensed brand E) brand parity Answer: C Diff: 1 Page Ref: 52 Skill: Concept Objective: 2-2 61) Which of the following is a strategy that uses two brand names owned by two separate companies to create a partnership offering?

A) co-branding B) equity branding C) brand licensing D) integrated branding E) parity branding Answer: A Diff: 1 Page Ref: 52 Skill: Concept Objective: 2-2 62) Using ________, a partner company rents another company's brand name and transfers some of that brand equity to another product.

A) co-branding B) equity branding C) brand licensing D) integrated branding E) parity branding Answer: C Diff: 1 Page Ref: 52 Skill: Concept Objective: 2-2

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63) Advertising, sales promotion, personal selling, public relations, and direct marketing are all ________.

A) promotional tools that should be integrated under the concept of integrated marketing communications B) promotional tools used in business-to-business markets but not consumer markets C) promotional tools used for push strategies but not pull strategies D) promotional tools used for pull strategies but not push strategies E) promotional tools used in consumer markets but not business-to-business markets Answer: A Diff: 2 Page Ref: 53 Skill: Concept Objective: 2-3 64) More companies are adopting the concept of ________, which is the practice of unifying all marketing communication messages and tools as well as the messages from the marketing mix decisions so that they send a consistent message supporting the brand's strategy.

A) integrated marketing communications B) integrated personal selling C) integrated competitive methods D) nonpersonal communication channels E) buzz marketing Answer: A Diff: 1 Page Ref: 53 Skill: Concept AACSB: Communication abilities Objective: 2-3 65) Integrated marketing communications produces better communications ________.

A) consistency B) sales C) simplicity D) variety E) independence Answer: A Diff: 2 Page Ref: 53 Skill: Concept AACSB: Communication abilities Objective: 2-3

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66) Integrated marketing communications require a company's mass-market advertisements, Web site, e-mail, and personal selling communications to all have ________.

A) equal portions of the advertising budget B) the same return on investment C) separate marketing objectives D) the same target audience E) the same message, look, and feel Answer: E Diff: 2 Page Ref: 53 Skill: Concept Objective: 2-3 67) Which of the following is NOT a principle of IMC? A) Everything communicates.

B) A brand is a unified vision and a complex system.

C) Brand relationships drive brand value.

D) You can't be integrated externally if you are not integrated internally.

E) Every element of the marketing mix should provide equal return on investment.

Answer: E Diff: 3 Page Ref: 54 Skill: Concept Objective: 2-3 68) A ________ brand is one marketed in a single country.

A) house B) local C) regional D) store E) private Answer: B Diff: 1 Page Ref: 56 Skill: Concept AACSB: Dynamics of the global economy Objective: 2-4 69) A(n) ________ brand is available in a number of different countries in various parts of the world.

A) parity B) local C) regional D) extension E) international Answer: E Diff: 1 Page Ref: 56 Skill: Concept AACSB: Dynamics of the global economy Objective: 2-4 18 .

70) A company that takes a ________ approach to international marketing tries to make accommodations in its marketing mix for cultural differences.

A) parity B) domestic C) global D) standardized E) localized Answer: E Diff: 2 Page Ref: 57 Skill: Concept AACSB: Dynamics of the global economy Objective: 2-4 71) Marketing is the way a product is designed, tested, produced, branded, packaged, priced, distributed, and promoted.

Answer: TRUE Diff: 1 Page Ref: 34 Skill: Concept Objective: 2-1 72) The goal in marketing is to sell as many products as possible.

Answer: FALSE Diff: 2 Page Ref: 34 Skill: Concept Objective: 2-1 73) The key players in the marketing industry include the marketer, suppliers or vendors, distributors and retailers, and agencies.

Answer: TRUE Diff: 2 Page Ref: 35 Skill: Concept Objective: 2-1 74) The materials and ingredients used in producing the product are obtained from other companies who are referred to as distributors.

Answer: FALSE Diff: 2 Page Ref: 36 Skill: Concept Objective: 2-1 75) The channel of distribution refers to the complex network of suppliers who produce components and ingredients that are then sold to the manufacturer.

Answer: FALSE Diff: 2 Page Ref: 36 Skill: Concept Objective: 2-1 19 .

76) The supply chain refers to the various companies that are involved in moving a product from its manufacturer into the hands of its buyer.

Answer: FALSE Diff: 2 Page Ref: 37 Skill: Concept Objective: 2-1 77) Only manufacturers advertise.

Answer: FALSE Diff: 2 Page Ref: 37 Skill: Concept Objective: 2-1 78) When marketing strategists speak of markets, they generally refer to a particular type of buyer.

Answer: TRUE Diff: 2 Page Ref: 37 Skill: Concept Objective: 2-1 79) Institutional markets consist of people who buy products and services for personal use.

Answer: FALSE Diff: 1 Page Ref: 37 Skill: Concept Objective: 2-1 80) Institutional markets are made up of nonprofit organizations only.

Answer: FALSE Diff: 2 Page Ref: 37 Skill: Concept Objective: 2-1 81) Most goods manufacturers also offer services.

Answer: TRUE Diff: 3 Page Ref: 38 Skill: Concept Objective: 2-1 82) The first step in the marketing planning process is to set objectives for the marketing effort.

Answer: FALSE Diff: 2 Page Ref: 39 Skill: Concept Objective: 2-1

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83) In the marketing planning process, consumer needs should be assessed before the product is positioned.

Answer: TRUE Diff: 3 Page Ref: 39 Skill: Concept Objective: 2-1 84) A company that operates with a marketing concept philosophy focuses on satisfying its customers' needs and wants.

Answer: TRUE Diff: 1 Page Ref: 39 Skill: Concept Objective: 2-1 85) The process of assessing whether there are identifiable groups within the market whose needs and wants intersect with the product and its features is known as differentiation.

Answer: FALSE Diff: 2 Page Ref: 40 Skill: Concept Objective: 2-1 86) The process of making a brand stand out as different from its competition is called positioning.

Answer: TRUE Diff: 1 Page Ref: 40 Skill: Concept Objective: 2-1 87) Customer is a more general term than consumer.

Answer: FALSE Diff: 3 Page Ref: 40 Skill: Concept Objective: 2-1 88) Advertising can add value to a brand.

Answer: TRUE Diff: 2 Page Ref: 41 Skill: Concept Objective: 2-1 89) A push strategy directs marketing efforts at the consumer in an attempt to stimulate consumer demand.

Answer: FALSE Diff: 2 Page Ref: 43 Skill: Concept Objective: 2-1 21 .

90) In personal sales, leads are also known as prospects.

Answer: TRUE Diff: 2 Page Ref: 43 Skill: Concept Objective: 2-1 91) Advertising is the process of creating the tangible and intangible elements of a brand.

Answer: FALSE Diff: 2 Page Ref: 44 Skill: Concept Objective: 2-2 92) Brand equity measures the financial value the brand contributes to the company.

Answer: TRUE Diff: 2 Page Ref: 51 Skill: Concept Objective: 2-2 93) Co-branding means acknowledging a supplier's brand as an important product feature or component.

Answer: FALSE Diff: 2 Page Ref: 52 Skill: Concept Objective: 2-2 94) Integrated marketing communication (IMC) is a recent trend that uses databases to drive communication with customers and keep track of their interactions with a company.

Answer: FALSE Diff: 1 Page Ref: 53 Skill: Concept AACSB: Use of information technology Objective: 2-3 95) An IMC program is more complex than a traditional advertising plan.

Answer: TRUE Diff: 3 Page Ref: 53 Skill: Concept Objective: 2-3 96) Implementation of IMC is most successful through the use of cross-functional organization.

Answer: TRUE Diff: 2 Page Ref: 54 Skill: Concept AACSB: Communication abilities Objective: 2-3

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97) In marketing terms, ROI stands for rate of interest.

Answer: FALSE Diff: 1 Page Ref: 55 Skill: Concept Objective: 2-4 98) Marketers who calculate ROI do not need to use other tools or techniques to evaluate the efficiency and effectiveness of their marketing communications.

Answer: FALSE Diff: 2 Page Ref: 55 Skill: Concept Objective: 2-4 99) The calculation of ROI identifies how much money a brand made in comparison to its expenses.

Answer: TRUE Diff: 2 Page Ref: 55 Skill: Concept Objective: 2-4 100) The growth in global marketing activities continues to increase.

Answer: TRUE Diff: 2 Page Ref: 56 Skill: Concept AACSB: Dynamics of the global economy Objective: 2-4 101) A car manufacturer buys tires from a tire manufacturer. These manufacturers are part of the institutional market.

Answer: FALSE Diff: 2 Page Ref: 37 Skill: Application AACSB: Analytic skills Objective: 2-1 102) Businesses are more likely to use advertising in specialized media than in mass media to reach customers in business-to-business markets.

Answer: TRUE Diff: 2 Page Ref: 37 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 2-1

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103) Diane is a repeat buyer of Dove beauty products. Diane is a consumer who is Dove's customer.

Answer: TRUE Diff: 2 Page Ref: 40 Skill: Application AACSB: Analytic skills Objective: 2-1 104) Retailers and wholesalers who have created their own brands–such as Walmart's Sam's Choice beverages and food products–are participating in co-branding.

Answer: FALSE Diff: 3 Page Ref: 46 Skill: Application AACSB: Reflective thinking skills Objective: 2-2 105) To maximize the toothpaste market in China, Crest needs to convince more of the Chinese population to brush their teeth three times a day. Crest is most likely to use a standardized approach for its marketing in China.

Answer: FALSE Diff: 2 Page Ref: 57 Skill: Application AACSB: Analytic skills Objective: 2-4 106) Describe the roles of the four categories of key players in marketing.

Answer: (1) Marketer (a.k.a Advertiser or Client) Any company or organization behind the product (i.e., the organization, company, or manufacturer producing the product and offering it for sale).

(2) Suppliers and Vendors Supply the materials and ingredients used in producing the product.

In marketing practice these suppliers and vendors are partners in the creation of a successful product. The term supply chain refers to the network of suppliers who produce components that are sold to manufacturers.

(3) Distributors and Retailers Companies that are involved in moving a product from its manufacturer into the hands of its buyer. The various companies involved in this are referred to as the channel of distribution.

(4) Marketing partners Do all or part of the work of advertising, implementing the creative vision of the client (marketer), and helping it to reach its advertising goals.

Diff: 2 Page Ref: 35-37 Skill: Synthesis AACSB: Reflective thinking skills Objective: 2-1

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107) Name and describe the four main types of markets, and discuss characteristics of advertising targeted toward each market, respectively.

Answer: (1) Consumer Markets Consist of people who buy products and services for personal or household use. Just about any product an individual purchases including clothing, food, books, health and beauty aids, and so forth can be advertised to consumers through mass media such as radio, television, newspapers, general consumer magazines, and direct-response media, such as direct mail. Businesses spend most of their advertising dollars on this market.

(2) Business-to-Business (B2B) Markets Consist of companies that buy products or services to use in their own businesses or in making other products. This market is typically reached through trade and professional advertising in specialized media, such as trade journals, professional magazines, and direct mail.

(3) Institutional Markets Include a wide variety of profit and nonprofit organizations, such as hospitals, government agencies, and schools, which provide goods and services for the benefit of society. This market is typically reached through the same means as industrial markets.

(4) Channel Markets Made up of members of the distribution chain, also known as resellers or intermediaries. This market is also typically reached through the same means as industrial and institutional markets.

Diff: 3 Page Ref: 37 Skill: Synthesis AACSB: Reflective thinking skills Objective: 2-1 108) Explain the marketing concept and discuss how it relates to advertising.

Answer: The marketing concept says that marketing should focus first on identifying the needs and wants of the customer, rather than on finding ways to sell products that may or may not meet customers' needs. This concept suggests that marketers must first determine the customers' needs and wants and then develop, manufacture, market, and service goods that fill those particular needs and wants, thus creating solutions for customers' problems. Both of these steps are addressed in advertising planning through consumer research and the methods used by planners to develop insight into consumer decision making. Advertising that follows the marketing concept will focus more on the consumer's benefit than on a product's features.

Diff: 2 Page Ref: 39-40 Skill: Synthesis AACSB: Reflective thinking skills Objective: 2-1

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109) Describe the evolution of Procter & Gamble's Ivory soap. How does it illustrate the concept of branding?

Answer: P&G created identity elements for its brand Ivory before anyone had thought of making a bar of soap a distinctive brand. The Ivory brand identity system also called attention to innovative features of the product. In the 1800s, soap wasn't like it is today; indeed, it was homemade from lye, fats, and fireplace ashes. It was a soft jelly-like yellowish soap that would clean, but if it fell to the bottom of a pail, it dissolved into mush. The Castile bar, which was a pure white soap imported from the Mediterranean and made from the finest olive oil, was considered the benchmark for quality soap and highly expensive. P&G discovered a formula that produced a uniform, predictable bar soap, which they provided in wooden boxes to both armies during the Civil War, introducing the concept of mass production, and created a huge market when returning soldiers demanded the bars for home use. But these bars were still yellow and sunk to the bottom. So P&G created a white bar equivalent to the Castile bar, becoming the "soap that floats" by accidentally whipping in too much air, which made the bar lighter. This claim–"It floats"–became one of the world's greatest statements of a product benefit. The soap was named "Ivory soap," resulting in consumers asking for it by name. P&G also learned that Ivory had only 0.56 percent impurities, leading to the claim that it was "99 and 44/100 percent pure," which is one of the most famous slogans in brand history.

Diff: 2 Page Ref: 47 Skill: Synthesis AACSB: Reflective thinking skills Objective: 2-2 110) Explain the concept of integrated marketing communications.

Answer: IMC calls for recognizing all contact points where the customer may encounter the company and its brands. A company wants to deliver a consistent and positive message with each contact. IMC ties together all of the company's messages and images, avoiding the confusion that can arise from customers receiving varied messages from a variety of media.

Diff: 2 Page Ref: 53 Skill: Application AACSB: Communication abilities Objective: 2-3 111) Procter & Gamble has sales of almost $50 billion and spends more than $4 billion on advertising every year. The company's corporate brand value is estimated to be more than $107 billion. In terms of key players in marketing, which one does Procter & Gamble represent?

A) marketer B) supplier or vendor C) distributor D) agency E) media Answer: A Diff: 2 Page Ref: 35 Skill: Application AACSB: Analytic skills Objective: 2-1 26 .

112) Amco, Inc. manufactures small electronic components that become integral parts of the electronic systems in automobiles. Amco does not sell directly to auto manufacturers, but rather through brokers that are involved in selling the components to the auto manufacturers.

Additionally, another company is employed to deliver the goods. All of these organizations are part of the ________ in getting electronic component parts to the automobile manufacturers.

A) distribution network B) supply chain C) marketing network D) brand management E) parity chain Answer: B Diff: 2 Page Ref: 36 Skill: Application AACSB: Analytic skills Objective: 2-1 113) Which of the following product offerings is intangible?

A) fish for an aquarium B) refillable ink cartridges for a computer printer C) a mink coat D) a meal at a fast-food restaurant E) a limousine ride Answer: E Diff: 2 Page Ref: 37 Skill: Application AACSB: Analytic skills Objective: 2-1 114) Sam is a brand manager for a manufacturer of consumer package goods. Part of his job entails launching new products into the marketplace. Before he launches a new product, however, Sam's department conducts extensive research to identify the needs and wants of the customer, rather than finding ways to sell products that may or may not meet customers' needs.

Which key concept of marketing is Sam implementing?

A) exchange B) branding C) added value D) marketing concept E) product concept Answer: D Diff: 2 Page Ref: 39 Skill: Application AACSB: Analytic skills Objective: 2-1

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115) Puma sells its edgy designs to trendy retailers but also sells its more mainstream products in stores such as Foot Locker. Which marketing mix element does this strategy illustrate?

A) product B) price C) place D) promotion E) branding Answer: C Diff: 2 Page Ref: 41 Skill: Application AACSB: Analytic skills Objective: 2-1 116) During the 2003 World Cup, which was held in Japan and South Korea, Puma got a wellknown sushi chef to create a special Puma sushi roll that was served in select Japanese restaurants in cities around the world. Puma also discretely announced the sponsorship in its company-branded chopsticks, sake cups, and napkins. At the same time, Puma partnered with the Terence Conran design shop to sell an exclusive version of its World Cup soccer boot, holding weekend sushi-making events at the home furnishings store. Which marketing mix element does this strategy illustrate?

A) product B) price C) place D) promotion E) branding Answer: D Diff: 2 Page Ref: 41 Skill: Application AACSB: Analytic skills Objective: 2-1 117) A.Y. McDonald, a manufacturer of pumps and plumbing valves, employs regional salespeople to sell its products to wholesalers and cities. This is an example of ________.

A) sales promotion B) personal selling C) public relations D) indirect marketing E) advertising Answer: B Diff: 2 Page Ref: 43 Skill: Application AACSB: Analytic skills Objective: 2-1

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118) An ad in a professional journal targeted to an audience of dentists asked dentists to recommend Crest toothpaste to their patients. It offered toothpaste samples that dentists could buy at cost to give to their patients to encourage patients to take better care of their teeth. The manufacturer of Crest toothpaste was using ________.

A) personal selling B) direct marketing C) a push strategy D) a pull strategy E) public relations Answer: C Diff: 2 Page Ref: 43 Skill: Application AACSB: Analytic skills Objective: 2-1 119) Glasis is a type of paint made specifically for use on cars. An ad in Motor Trend magazine advising consumers to request their body shops use Glasis paint is an example of how a company uses ________.

A) word of mouth influence B) public relations C) buzz marketing D) a push strategy E) a pull strategy Answer: E Diff: 2 Page Ref: 43 Skill: Application AACSB: Analytic skills Objective: 2-1 120) Peter purchased an inexpensive necklace from a department store to give to his sweetheart, Julie, on Valentine's Day. He didn't want her to know that he did not spend very much for the jewelry, so he put it in a box he had from an upscale jewelry store that sells only expensive items. When Julie unwrapped her gift, she was excited to see that it came from this store and absolutely loved the necklace Peter gave her. Which key concept of marketing does this illustrate?

A) exchange B) branding C) situation analysis D) marketing concept E) distribution Answer: B Diff: 3 Page Ref: 44 Skill: Application AACSB: Reflective thinking skills Objective: 2-2

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121) Laurie owns a 2002 Honda Accord, which is the third Honda vehicle that she and her husband have owned. They describe themselves as a "Honda" family and intend to purchase another Honda automobile when their daughter gets her driver's license. They know and trust Hondas. Which key concept of marketing does this illustrate?

A) exchange B) branding meaning C) brand personality D) marketing concept E) product concept Answer: B Diff: 2 Page Ref: 44 Skill: Application AACSB: Reflective thinking skills Objective: 2-2 122) When Tylenol brand of pain relief capsules were tampered with, resulting in the death of several consumers, the manufacturer pulled all of its products from store shelves, redesigned packaging to resist tampering, and reintroduced noncapsule forms of the product. This was very expensive for Tylenol to do, but the company knew that the reputation, meaning, and value that its brand name had acquired over time held financial value. Today, Tylenol brand medications have the reputation of being high-quality products. The reputation, meaning, and value that the Tylenol brand name has acquired over time is known as ________.

A) brand personality B) trademark C) brand framework D) brand relationship E) brand equity Answer: E Diff: 2 Page Ref: 51 Skill: Application AACSB: Analytic skills Objective: 2-2

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123) Intel manufactures computer chips that are part of several personal computer manufacturers' finished products. Intel and the computer manufacturers realized that customers valued Intel computer chips due to their superior quality and reliability and began asking whether or not the computer they were considering purchasing contained an Intel computer chip. As a result, Intel and computer manufacturers started communicating through advertising and other promotional tools that there's "Intel Inside." This is an example of ________.

A) primary branding B) secondary branding C) supply chain branding D) component branding E) ingredient branding Answer: E Diff: 2 Page Ref: 52 Skill: Application AACSB: Analytic skills Objective: 2-2 124) An apparel marketer is planning to launch an existing brand name into a new product category. Which brand development strategy is being implemented?

A) co-branding B) brand extension C) ingredient branding D) brand licensing E) rebranding Answer: B Diff: 2 Page Ref: 52 Skill: Application AACSB: Analytic skills Objective: 2-2 125) Harpo Enterprises maintains the Oprah Winfrey show, a Web site, and O magazine.

Because Harpo Enterprises practices integrated marketing communications, these different brand contacts all maintain ________ in design and tone.

A) variety B) feedback C) consistency D) creativity E) convenience Answer: C Diff: 2 Page Ref: 53 Skill: Application AACSB: Analytic skills Objective: 2-3

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126) Of the following, which method of adding value to a product is mostly psychological?

A) branding B) quality C) features D) convenience E) service Answer: A Diff: 2 Page Ref: 41-42 Skill: Synthesis AACSB: Reflective thinking skills Objective: 2-1 127) Which of the following is an advantage offered by co-branding?

A) Manufacturers do not have to invest in creating their own brand names.

B) Retailers have exclusive products that cannot be purchased from competitors.

C) A company can expand its existing brand into a category it otherwise might have difficulty entering alone.

D) Advertising, sales, promotion, and marketing must be carefully coordinated.

E) Brand equity is stabilized.

Answer: C Diff: 3 Page Ref: 52 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 2-2 128) Management of a company that adheres to the principle of integrated marketing communications is most likely to believe which of the following?

A) The use of multiple marketing communications channels is advantageous.

B) The use of a single marketing communications channel is advantageous.

C) Long-term relationships with customers are best nurtured through sales promotion.

D) Long-term relationships with customers are best nurtured through public relations.

E) Short-term relationships with customers are more profitable than long-term relationships with customers.

Answer: A Diff: 3 Page Ref: 53 Skill: Synthesis AACSB: Reflective thinking skills Objective: 2-3

32 .

Refer to the following passage to answer the questions below.

Johnson & Johnson manufactures health and beauty aid products under several brand names. The company sells its products to end consumers through retail stores such as grocery, drug, and discount stores. J&J employs a sales force that calls on intermediaries, such as wholesalers and retailers, and spends part of the promotion budget on trade deals to influence intermediaries to carry the company's brands. The remainder of J&J's promotion budget is spent on mass advertising and sales promotions, such as coupons, targeted toward consumers.

129) Which promotion strategy is J&J pursuing?

A) push B) zero channel C) direct D) pull E) push and pull Answer: E Diff: 2 Page Ref: 43 Skill: Application AACSB: Analytic skills Objective: 2-1 130) J&J also markets its Tylenol brand of pain relievers to hospitals. What type of market is that?

A) consumer B) primary C) institutional D) reseller E) secondary Answer: C Diff: 2 Page Ref: 37 Skill: Application AACSB: Analytic skills Objective: 2-1 131) What is the difference between a supply chain and a distribution chain?

Answer: A supply chain is made up of suppliers who produce components and ingredients that are sold to a manufacturer; a distribution chain is made up of all the companies that move a finished product from the manufacturer to its buyers.

Diff: 2 Page Ref: 36 Skill: Synthesis AACSB: Reflective thinking skills Objective: 2-1

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132) How are services and goods different? How are they similar?

Answer: Both services and goods are types of products. Goods are tangible, but services are–for the most part–intangible.

Diff: 2 Page Ref: 37 Skill: Synthesis AACSB: Reflective thinking skills Objective: 2-1 133) You just graduated from college and started working at a consumer packaged goods manufacturer. Your first assignment is to develop the marketing strategy for a new product extension of an existing brand. Where do you begin?

Answer: You begin at the first step of the marketing process, which is to research the market, consumers, and the competitive marketplace, and develop a situation analysis.

Diff: 2 Page Ref: 39 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 2-1 134) Andy has conducted extensive research in the marketing process. What should be his next two steps?

Answer: Andy's next two steps are setting marketing objectives and then assessing consumer needs and wants, segmenting the market, and targeting a specific market.

Diff: 2 Page Ref: 39 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 2-1 135) What is the last step of the marketing planning process? Why is this step important?

Answer: The last step of the marketing planning process is evaluating the effectiveness of the strategy. This is an important step because it tells marketers whether or not the strategy should be continued.

Diff: 2 Page Ref: 39 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 2-1 136) What is the difference between a consumer and a customer?

Answer: A consumer is a general term for people who use and buy products it's almost synonymous with the phrase general public. A customer is someone who has purchased a specific brand or visited a specific retailer. Customer is the more specific term.

Diff: 2 Page Ref: 40 Skill: Synthesis AACSB: Reflective thinking skills Objective: 2-1

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137) Blenco, Inc. is a manufacturer of frozen breakfast products, such as biscuits, pancakes, and waffles. Blenco does not spend any money on consumer advertising or promotions, but rather concentrates its promotion budget on intermediaries in the channel of distribution. What promotion strategy is Blenco pursuing and which promotion tools are most appropriate for implementing this strategy?

Answer: Blenco is pursuing a push promotion strategy that concentrates the flow of marketing communication on the members of the channel of distribution rather than on end consumers.

Blenco is most likely utilizing trade deals, trade advertising, and personal selling to get its products in the channel of distribution.

Diff: 3 Page Ref: 43 Skill: Synthesis AACSB: Reflective thinking skills Objective: 2-1 138) You just interviewed for a job with Dial, Inc. and learned that they are looking for someone who will call on grocery, drug, and convenience stores to sell and service Dial's health and beauty aid items to these types of retailers. What type of personal selling does this represent?

Answer: Field sales. Field sales are a type of personal selling that includes calls at the place of business by a field representative. (Note: This type of personal selling is also called trade selling.)

Diff: 2 Page Ref: 43 Skill: Application AACSB: Analytic skills Objective: 2-1 139) What kind of control does a company have over the meaning of one of its brands?

Answer: A company owns a brand name and a symbol, and can certainly influence what people think about the brand. However, the brand meaning is ultimately created by consumers because the meaning exists in their minds, derived from their own experiences with the brand.

Diff: 2 Page Ref: 46 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 2-2 140) Consider such brand names as A1 Steak Sauce, 409, A & D Ointment, A & W Root Beer, and Super 8. Why might such names with alphanumeric characters aid in brand name selection?

Answer: Such brands are easy to pronounce, easy to recognize, and easy to remember.

Diff: 3 Page Ref: 49 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 2-2

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141) Why is it important for a brand promise to be simple and honest?

Answer: Consumers who purchase the product and believe it does not live up to the promise will develop a negative image of the brand; they will be less likely to become loyal customers.

Diff: 3 Page Ref: 50 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 2-2 142) How does a brand name add value to a product?

Answer: Quality and consistency can be identified through a brand; experience with or knowledge of another's experience with a brand helps a buyer know what features, benefits, and quality to expect from a product.

Diff: 2 Page Ref: 51 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 2-2 143) Explain why someone would rather have a Rolex watch than a Timex watch, which is as reliable as a Rolex but considerably less expensive.

Answer: Although both are well-known brands, Rolex has built its brand image on quality and luxury. It's a status symbol to own a Rolex, and the watch is perceived more as a piece of jewelry than merely a timepiece. Timex is known as an inexpensive, reliable timepiece. Through effective branding, Rolex has transformed this product by creating a special meaning for it, and the meaning of the brand also tells something about the person wearing that brand.

Diff: 2 Page Ref: 49-50 Skill: Synthesis AACSB: Reflective thinking skills Objective: 2-2 144) What is a brand loyalty program? Give an example of one.

Answer: A brand loyalty program offers consumers rewards for their repeat business. Any program that awards points, money, or free products for repeated purchases could be used as an example.

Diff: 2 Page Ref: 51 Skill: Application AACSB: Analytic skills Objective: 2-2 145) When Dell computer indicates in its ads and on its computer boxes "Intel inside," what type of branding is this, and why does Dell do this?

Answer: This is called ingredient branding, which means acknowledging a supplier's brand as an important product feature. Dell knows that the quality and reputation of the Intel brand of computer chips adds value to its product and wants to communicate that to buyers.

Diff: 2 Page Ref: 52 Skill: Application AACSB: Analytic skills Objective: 2-2 36 .

146) How does integrated marketing communication (IMC) build brand identity?

Answer: IMC builds brand identity and strong customer relationships by tying together all of the company's messages and images.

Diff: 2 Page Ref: 53 Skill: Application AACSB: Reflective thinking skills Objective: 2-3 147) How do marketing managers use ROI? Answer: ROI stands for return on marketing investment. It is a calculation that marketing managers can use to determine the relationship between what a marketing program cost and what it delivered in sales.

Diff: 2 Page Ref: 55 Skill: Application AACSB: Reflective thinking skills Objective: 2-4 148) What types of products would be successful with standardized global marketing?

Answer: Products that require no change to the product itself or to the product's promotion would follow a standardized marketing mix.

Diff: 2 Page Ref: 57 Skill: Application AACSB: Reflective thinking skills Objective: 2-4

37 .

Refer to the passage below to answer the following questions.

Gore-Tex is a revolutionary material that is used in several types of outer- and athletic-wear that can keep consumers warm and dry in the winter but also cool in the summer. It is lighter and stronger than other types of materials, such as wool or cotton, and costs more. However, many consumers of these products were not aware of the advantages of Gore-Tex when comparing products and were put off by the very high price. To change this, Gore-Tex hired an advertising agency to assist in creating a special meaning for the brand and to communicate the advantages to end-user consumers. Gore-Tex also worked with the manufacturers of the products into which Gore-Tex was incorporated to encourage them to call attention to the fact that Gore-Tex is used in their products.

149) Which key concept in marketing is illustrated by Gore-Tex's desire to create a special meaning for it, and how can advertising help accomplish this?

Answer: Branding is the process of creating a special meaning for a product, one that makes it distinctive in the marketplace and in its product category. Brand image is the result of communication as well as consumers' own personal experiences with the product. A brand, and the advertising behind it, creates familiarity. Advertising can also be used to communicate the distinctive advantage of Gore-Tex over other types of material.

Diff: 2 Page Ref: 44 Skill: Synthesis AACSB: Reflective thinking skills Objective: 2-2 150) Manufacturers of apparel products using Gore-Tex include that information on their product labels as well as in their advertising. What is this known as, and why do these manufacturers do this?

Answer: This is known as ingredient branding, which means acknowledging a supplier's brand as an important product feature. Every contribution from the supply chain adds value to the product, and in practice, suppliers and vendors are partners in the creation of a successful product. The quality of the Gore-Tex brand of material enhances the quality of the finished products that it goes into.

Diff: 2 Page Ref: 52 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 2-2

38 .

Advertising & IMC: Principles and Practice, 9e (Moriarty) Chapter 3 Brand Communication and Society 1) ________ results when an external message drives people to feel a need or want to buy a product.

A) Demand creation B) Direct marketing C) Social marketing D) Cause marketing E) Mission marketing Answer: A Diff: 1 Page Ref: 65 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-1 2) The question of whether advertising creates social values rather than merely reflecting them is known as ________.

A) the social-versus-economic debate B) the competitive-versus-market power debate C) the personal-versus-corporate debate D) the personal-versus-social debate E) the shape-versus-mirror debate Answer: E Diff: 2 Page Ref: 66 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-1 3) A ________ is a representation of a cultural group that emphasizes a trait or group of traits that may or may not communicate an accurate representation of the group.

A) norm B) reference group C) symbol D) mean E) stereotype Answer: E Diff: 1 Page Ref: 68 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-1

1 .

4) Which of the following is a stereotype about women that most commonly appears in advertisements?

A) women as the decision makers about major purchases B) women as achievement-oriented C) women as strong and independent D) women as participants in sedentary activities E) women as nurturers Answer: E Diff: 2 Page Ref: 69 Skill: Concept AACSB: Multicultural and diversity understanding Objective: 3-1 5) Which of the following is a term used to describe what happens when Western culture is imposed on others?

A) marketing imposition B) cultural imposition C) marketing imperialism D) demand creation E) marketing elitism Answer: C Diff: 1 Page Ref: 70 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-1 6) Some Asian and Middle Eastern countries are critical of what they see as America's materialism and disrespectful behavior toward women and elders and are worried that advertising will encourage their young people to adopt these viewpoints. The term to describe this phenomenon is ________.

A) marketing ethics B) deceptive advertising C) social decline D) social responsibility E) cultural imperialism Answer: E Diff: 2 Page Ref: 70 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-1

2 .

7) Which of the following is true regarding customs?

A) Customs can be stronger than laws.

B) Customs are easily discerned.

C) Customs are basically the same around the world.

D) Customs have little impact on the effectiveness of advertising.

E) Only natives of a culture can ever understand local customs.

Answer: A Diff: 2 Page Ref: 70 Skill: Concept AACSB: Dynamics of the global economy Objective: 3-1 8) In a focus group of women in their 50s, participants objected to health care ads showing older women with arthritis in sedentary positions. They would prefer to see the women working out in a gym. This is an example of ________.

A) marketing imperialism B) cultural differences C) deceptive advertising D) ethnic stereotyping E) age-related stereotyping Answer: E Diff: 2 Page Ref: 70 Skill: Concept AACSB: Multicultural and diversity understanding Objective: 3-1 9) ________ is advertising or other sales representations that praise the item to be sold with subjective opinions, superlatives, or exaggerations, stating no specific facts.

A) Puffery B) Manipulative advertising C) Deceptive advertising D) Comparative advertising E) Indirect advertising Answer: A Diff: 1 Page Ref: 71 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-1

3 .

10) Under U.S. law, businesses can seek damages from an advertiser who misrepresents the nature, characteristics, qualities, or geographic origin of a product in ________.

A) puffery B) mission advertising C) demand creation D) comparative advertising E) claim advertising Answer: D Diff: 2 Page Ref: 71 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-1 11) According to U.S. law, which of the following is NOT an element a company/plaintiff is required to prove to win a false advertising lawsuit about an ad containing a comparative claim?

A) False statements have been made about either product.

B) The ads actually deceived or had the tendency to deceive a substantial segment of the audience.

C) The offending advertiser intended to damage the complaining company's business.

D) The deception was "material" and likely to influence purchasing decisions.

E) Falsely advertised goods are sold in interstate commerce.

Answer: C Diff: 3 Page Ref: 72 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-1 12) A(n) ________ is any advertising message that consumers believe reflects the opinions, beliefs, or experiences of an individual, group, or institution.

A) endorsement B) comparative ad C) puffed ad D) one-sided message E) two-sided message Answer: A Diff: 1 Page Ref: 72-73 Skill: Concept AACSB: Communication abilities Objective: 3-1

4 .

13) A company that pays bloggers to pose as customers and post customer reviews online is using ________.

A) green marketing B) cause marketing C) mission marketing D) flogging E) networking Answer: D Diff: 2 Page Ref: 73 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-1 14) Which of the following prohibits consumers from taking cash from manufacturers, suppliers, or their representatives for making recommendations, reviews, or endorsements, unless full disclosure is provided?

A) the Word of Mouth Marketing Association's ethics code B) the Fourth Principle of IMC C) the American Association of Advertising Agencies' Creative Code D) the TARES Test of Ethical Advertising E) the Potter Box Answer: A Diff: 2 Page Ref: 73 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-1 15) Verbal or written words in an advertisement that indicate exceptions to the advertising claim made are known as ________.

A) ethics B) puffs C) endorsements D) testimonials E) disclaimers Answer: E Diff: 2 Page Ref: 73 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-1

5 .

16) The main concern the FTC has when an advertiser substitutes for products during a demonstration (such as using a mixture of glue and water instead of ice cream) is ________.

A) whether the substitution is necessary B) whether the demonstration uses puffery C) whether the advertiser indicates that substitutes are used in the demonstration D) whether the consumer knows substitutes are used in the demonstration E) whether the demonstration falsely upgrades the consumers' perception of the advertised brand Answer: E Diff: 3 Page Ref: 73 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-1 17) Cigarette advertising on ________ has been banned since 1971.

A) radio only B) television only C) the Internet only D) radio and television only E) radio, television, and the Internet Answer: D Diff: 2 Page Ref: 74 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-1 18) Which is NOT an element of the FDA's 1996 restrictions on tobacco advertising?

A) a ban on all in-store advertising inside of stores located within 1,000 feet of a school or playground B) a ban on outdoor ads within 1,000 feet of a school or playground C) ads limited to black-and-white, text only, in magazines with 55 percent readership under the age of 18 D) $150 million provided to fund antismoking ads targeting children E) a portion of the master settlement agreement dedicated to fund TV and print ads warning children about the dangers of smoking Answer: A Diff: 3 Page Ref: 75 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-1

6 .

19) Which of the following best explains why the amount of prescription drug advertising has increased since 1997?

A) The American Medical Association approved the use of advertising to promote prescription drugs.

B) The federal government loosened its controls on the production of prescription drugs.

C) Pharmaceutical companies realized that a pull strategy would be more effective than a push strategy.

D) The federal government loosened its controls on pharmaceutical advertising.

E) Patents held by many pharmaceutical companies expired, resulting in price competition and heavy advertising.

Answer: D Diff: 3 Page Ref: 75 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-1 20) _______ efforts are typically shorter term than ________ efforts are.

A) Cause marketing; mission marketing B) Mission marketing; integrated marketing C) Green marketing; mission marketing D) Not-for-profit marketing; mission marketing E) Not-for-profit marketing; cause marketing Answer: A Diff: 2 Page Ref: 76 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-1 21) Which of the following refers to marketing that aligns the basic business practices and position of a brand with a cause, such as the environment or sustainability?

A) green marketing B) social marketing C) integrated marketing D) mission marketing E) not-for-profit marketing Answer: D Diff: 1 Page Ref: 76 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-1

7 .

22) ________ are the "shoulds" and "oughts" of behavior.

A) Missions B) Ethics C) Regulations D) Customs E) Traditions Answer: B Diff: 1 Page Ref: 76 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-2 23) ________ are frameworks for right actions and are primarily the domain of religion and philosophy.

A) Missions B) Ethics C) Morals D) Customs E) Traditions Answer: C Diff: 1 Page Ref: 76 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-2 24) Which of the following is an example of a moral system?

A) the Ten Commandments B) the AAAA's Creative Code C) the TARES Test of Ethical Advertising D) the Potter Box E) the Bill of Rights Answer: A Diff: 2 Page Ref: 76 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-2

8 .

25) With respect to guidelines for determining what is ethical, which is NOT one of the types of criteria for making an advertising decision?

A) individual moral upbringing B) self-interest C) professional ethics D) industry standards of self-regulation E) government regulations Answer: B Diff: 2 Page Ref: 77 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-2 26) Personal judgment and moral reasoning rest on ________.

A) explicit laws governing practice B) membership in a professional association C) an understanding of the law D) a sense of right and wrong E) a code of standards Answer: D Diff: 2 Page Ref: 78 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-2 27) The American Association of Advertising Agencies' Creative Code says that advertising agencies will not create advertising that has any of the following EXCEPT which one?

A) false or misleading statements B) puffs C) price claims that are misleading D) testimonials that do not reflect the real opinion of the individual involved E) statements offensive to public decency Answer: B Diff: 3 Page Ref: 79 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-2

9 .

28) Many professions write a code of ________ to help guide practitioners toward ethical behavior.

A) morals B) ethics C) laws D) regulations E) missions Answer: B Diff: 2 Page Ref: 79 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-2 29) Which of the following tools is designed to help marketers and advertising specialists decide what to do when faced with an ethical dilemma?

A) a SWOT analysis B) a Potter Box C) a URL D) the NARB E) the BBB Answer: B Diff: 2 Page Ref: 80 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-2 30) Which of the following is NOT an aspect considered in the Potter Box? A) facts B) loyalties C) regulations D) principles E) values Answer: C Diff: 3 Page Ref: 80 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-2

10 .

31) In the TARES Test of Ethical Advertising, TARES stands for ________.

A) tested, authentic, regulated, ethical, and socially responsible B) tested, aware, reasonable, essential, and socially responsible C) truthful, aware, reasonable, equitable, and socially responsible D) truthful, authentic, respectful, equitable, and socially responsible E) truthful, actionable, rewarding, essential, and socially responsible Answer: D Diff: 3 Page Ref: 80 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-2 32) Government oversight responsibility with respect to advertising includes ________.

A) professional discipline B) self-regulation C) laws and regulations D) right to refuse E) community group regulation Answer: C Diff: 2 Page Ref: 81 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3 33) ________ makes laws, and ________ interpret those laws in specific situations.

A) The Supreme Court; the lower courts B) Congress; the courts C) The president; the courts D) The president; the Senate and the House of Representatives E) Congress; the FTC and the FCC Answer: B Diff: 2 Page Ref: 81 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3 34) Which arm of the federal government creates laws regarding advertising?

A) executive branch B) judicial branch C) Federal Communications Commission D) Congress E) Federal Trade Commission Answer: D Diff: 2 Page Ref: 81 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3 11 .

35) The ________ prohibits unfair and deceptive acts and practices regardless of whether competition is injured.

A) Lanham Act B) Wheeler-Lea Amendment C) National Advertising Review Council D) Pure Food and Drug Act E) Magnuson-Moss Act Answer: B Diff: 3 Page Ref: 81 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3 36) A brand, a corporate or store name, or a distinctive symbol that identifies the seller's brand and thus differentiates it from the brands of other sellers is called a ________.

A) trademark B) copyright C) logo D) patent E) brand name Answer: A Diff: 1 Page Ref: 82 Skill: Concept Objective: 3-3 37) Which of the following is true regarding a trademark?

A) It gives an organization the exclusive right to use or reproduce original work, such as an advertisement or package design, for a period of time.

B) Controls for protection are provided by the Library of Congress.

C) The Department of Labor protects unique trademarks from infringement by competitors.

D) It identifies the seller's brand and differentiates it from the brands of other sellers.

E) It must be registered with the Federal Trade Commission, which gives the organization exclusive use of the mark, as long as the trademark is maintained as an identification for a specific product.

Answer: D Diff: 3 Page Ref: 82 Skill: Concept Objective: 3-3

12 .

38) Under which of the following are unique trademarks protected from infringement by competitors?

A) Pure Food and Drug Act B) Wheeler-Lea Amendment C) Lanham Act D) Federal Trade Commission Act E) FTC Improvement Act Answer: C Diff: 3 Page Ref: 82 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3 39) A recent trademark issue is protection for URLs, which are ________.

A) patents B) trademarks C) Internet domain names D) self-regulating agencies E) consumer-interest groups Answer: C Diff: 2 Page Ref: 82 Skill: Concept AACSB: Use of information technology Objective: 3-3 40) A ________ gives an organization the exclusive right to use or reproduce original work, such as an advertisement or package design, for a specified period of time.

A) trademark B) servicemark C) copyright D) patent E) brand name Answer: C Diff: 1 Page Ref: 82 Skill: Concept Objective: 3-3

13 .

41) Which of the following CANNOT be copyrighted?

A) an advertisement B) an idea C) a package design D) an illustration E) a photograph Answer: B Diff: 2 Page Ref: 82 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3 42) Controls for copyright protection are provided by the ________.

A) Federal Communications Commission B) Federal Trade Commission C) Patent and Trademark Office D) Department of Commerce E) Library of Congress Answer: E Diff: 3 Page Ref: 82 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3 43) The most basic federal law that governs advertising is the ________ Amendment to the U.S. Constitution.

A) First B) Second C) Third D) Fourth E) Fifth Answer: A Diff: 1 Page Ref: 82 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3

14 .

44) Which Amendment to the U.S. Constitution states that Congress shall make no law "abridging the freedom of speech or of the press"?

A) First B) Second C) Third D) Fourth E) Fifth Answer: A Diff: 2 Page Ref: 82 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3 45) ________ speech is speech that promotes commercial activity.

A) Political B) Free C) Unregulated D) Commercial E) Regulated Answer: D Diff: 1 Page Ref: 82 Skill: Concept AACSB: Communication abilities Objective: 3-3 46) In which case did the Supreme Court establish a test that determines to what extent the government can restrict advertising?

A) Valentine v. Chrestensen (1942) B) Virginia State Board of Pharmacy v. Virginia Citizens Consumer Council (1976) C) Central Hudson Gas & Electric Corporation v. Public Service Commission of New York (1980) D) Cincinnati v. Discovery Network (1993) E) 44 Liquormart, Inc. v. Rhode Island (1995) Answer: C Diff: 3 Page Ref: 82 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3

15 .

47) ________ advertising features a product other than the primary, and usually controversial, product.

A) Deceptive B) Unfair C) Comparative D) Injurious E) Indirect Answer: E Diff: 1 Page Ref: 83 Skill: Concept AACSB: Communication abilities Objective: 3-3 48) What is the primary agency governing the advertising industry?

A) Federal Communications Commission B) Federal Trade Commission C) Food and Drug Administration D) National Advertising Review Council E) National Advertising Division Answer: B Diff: 1 Page Ref: 84 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3 49) Which federal agency oversees package labeling, ingredient listing, and advertising for food and drugs?

A) Federal Trade Commission B) Food and Drug Administration C) Federal Communications Commission D) Bureau of Alcohol, Tobacco, and Firearms E) National Advertising Division Answer: B Diff: 1 Page Ref: 85 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3

16 .

50) Which federal agency was formed to protect the public interest in radio and television broadcast communications?

A) Federal Trade Commission B) Food and Drug Administration C) Federal Communications Commission D) Bureau of Alcohol, Tobacco, and Firearms E) National Advertising Division Answer: C Diff: 1 Page Ref: 85 Skill: Concept AACSB: Communication abilities Objective: 3-3 51) The Federal Communications Commission (FCC) can take action against ________.

A) the media B) advertisers C) advertising agencies D) A, B, and C E) B and C only Answer: A Diff: 2 Page Ref: 85 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3 52) Which of the following federal agencies regulates direct-mail and magazine advertising, as well as lotteries?

A) the U.S. Postal Service B) the Federal Communications Commission C) the Food and Drug Administration D) the U.S. Patent and Trademark Office E) the Library of Congress Answer: A Diff: 2 Page Ref: 85 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3

17 .

53) All EXCEPT which of the following have governmental authority concerning some form of regulation of advertising?

A) Bureau of Alcohol, Tobacco, and Firearms B) Federal Communications Commission C) U.S. Postal Service D) National Advertising Division E) Food and Drug Administration Answer: D Diff: 2 Page Ref: 85, 89 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3 54) Which of the following was NOT required by the Children's Television Advertising Practice Act of 1990?

A) a 10.5-minute-per-hour ceiling for commercials in children's weekend television programming B) three hours of children's educational shows aired by all TV stations each week C) commercial breaks that are clearly distinguished from programming D) the barring of the use of children's program characters to promote products in commercials E) a 12-minute-per-hour limit for commercials in children's weekday television programming Answer: B Diff: 3 Page Ref: 86 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3 55) Which of the following was the agreement reached in 1996 between broadcasters, children's advocates, and the federal government?

A) limiting advertising to 10 minutes per hour in children's weekend television programming B) limiting advertising to 12.5 minutes per hour in children's weekday television programming C) limiting advertising to 10 minutes per hour in all children's television programming D) requiring all TV stations to air three hours of children's educational shows a week E) banning all advertising during children's television programming Answer: D Diff: 3 Page Ref: 86 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3

18 .

56) Advertising intended to mislead consumers by making claims that are false or by failure to make full disclosure of important facts, or both, is called ________.

A) puff advertising B) indirect advertising C) deceptive advertising D) unsubstantiated advertising E) injurious advertising Answer: C Diff: 1 Page Ref: 86 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3 57) For an advertisement to be ruled deceptive, the deception must influence consumers' decision making about products and services, which is known as ________.

A) misleading B) puffery C) material injury D) substantiation E) double jeopardy Answer: C Diff: 2 Page Ref: 86 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3 58) Which of the following is NOT considered by the FTC when determining the reasonableness of a claim in an advertisement?

A) type and specificity of claim made B) type of product C) possible consequences of a false claim D) degree of reliance on the claims by consumers E) price of the product Answer: E Diff: 2 Page Ref: 87 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3

19 .

59) A(n) ________ is the first step in the regulation process after the FTC determines that an ad is deceptive.

A) consent decree B) cease-and-desist order C) corrective advertising campaign D) consumer redress order E) incarceration Answer: A Diff: 2 Page Ref: 87 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3 60) Which of the following is NOT an FTC course of action for deception and unfair advertising?

A) consent decrees B) cease-and-desist orders C) incarceration D) corrective advertising E) consumer redress Answer: C Diff: 2 Page Ref: 86-87 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3 61) Which of the following statements regarding cease-and-desist orders issued by the Federal Trade Commission is FALSE? A) A cease-and-desist order requires that the deceptive or unfair practice by a business be stopped within 30 days of issuance of the order.

B) A cease-and-desist order given to one firm is applicable to all firms in an industry.

C) An advertiser can appeal the order to the full five-member commission.

D) A cease-and-desist order is the first step in the regulation process after the FTC determines that an ad is deceptive.

E) The process leading to the issuance of a cease-and-desist order is similar to a court trial.

Answer: D Diff: 3 Page Ref: 84 and 87 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3

20 .

62) Which of the following is the landmark corrective advertising case?

A) Valentine v. Chrestensen B) Warner-Lambert v. FTC C) 44 Liquormart, Inc. v FTC D) Nike v. FTC E) Cincinnati v. Discovery Network Answer: B Diff: 3 Page Ref: 88 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3 63) Which type of self-regulation occurs when an organization, such as an advertising agency, develops, uses, and enforces norms within its own practices?

A) industry self-regulation B) self-discipline C) social ethic D) self-regulation with outside help E) personal ethic Answer: B Diff: 2 Page Ref: 88 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3 64) Several companies, such as Procter & Gamble, General Foods, and Colgate-Palmolive, have their own codes of behavior and criteria that determine whether advertisements are acceptable.

Which type of self-regulation is this?

A) industry self-regulation B) self-discipline C) self-regulation with outside help D) personal ethic E) social ethic Answer: B Diff: 2 Page Ref: 88 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3

21 .

65) When an industry develops, uses, and enforces norms, this is known as which type of selfregulation?

A) industry self-regulation B) self-discipline C) social ethic D) professional ethic E) personal ethic Answer: A Diff: 2 Page Ref: 88 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3 66) In 1971, what organization did several professional advertising associations in conjunction with the Council of Better Business Bureaus establish to negotiate voluntary withdrawal of national advertising that professionals consider deceptive?

A) National Advertising Division (NAD) B) National Advertising Review Board (NARB) C) American Association of Advertising Agencies (AAAA) D) National Advertising Review Council (NARC) E) American Advertising Federation (AAF) Answer: D Diff: 3 Page Ref: 89 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3 67) The two operating arms of the National Advertising Review Council are the ________.

A) NAD and the NARB B) NAD and the AAAA C) AAF and the AAAA D) FTC and the FCC E) FTC and the NAD Answer: A Diff: 2 Page Ref: 89 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3

22 .

68) Which arm of the National Advertising Review Council is made up of people from the field of advertising who evaluate complaints submitted by consumers, consumer groups, industrial organizations, and advertising firms?

A) National Advertising Division (NAD) B) National Advertising Review Board (NARB) C) American Association of Advertising Agencies (AAAA) D) Federal Trade Commission (FTC) E) American Advertising Federation (AAF) Answer: A Diff: 2 Page Ref: 89 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3 69) If the National Advertising Division (NAD) and an allegedly deceptive advertiser cannot reach a satisfactory resolution, the case is referred to the ________.

A) National Advertising Review Board (NARB) B) American Association of Advertising Agencies (AAAA) C) Federal Trade Commission (FTC) D) American Advertising Federation (AAF) E) Federal Communications Commission (FCC) Answer: A Diff: 2 Page Ref: 89 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3 70) If the National Advertising Review Board (NARB) and an allegedly deceptive advertiser cannot reach a satisfactory resolution, the case is referred to the ________.

A) National Advertising Division (NAD) B) American Association of Advertising Agencies (AAAA) C) Advertising Review Council (ARC) D) American Advertising Federation (AAF) E) appropriate government agency Answer: E Diff: 2 Page Ref: 89 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3 71) Critics of advertising tend to argue that advertising has power to shape social trends and the way people think and act.

Answer: TRUE Diff: 2 Page Ref: 66 Skill: Concept AACSB: Communication abilities Objective: 3-1 23 .

72) Stereotypes can be useful and aid communication by using easily understood symbolic meanings.

Answer: TRUE Diff: 2 Page Ref: 68 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-1 73) Marketing imperialism is a term used to describe what happens when Western culture is imposed on others.

Answer: TRUE Diff: 1 Page Ref: 70 Skill: Concept AACSB: Dynamics of the global economy Objective: 3-1 74) Customs can be even stronger than laws.

Answer: TRUE Diff: 2 Page Ref: 70 Skill: Concept AACSB: Dynamics of the global economy Objective: 3-1 75) Obviously exaggerated "puffing" claims are illegal.

Answer: FALSE Diff: 2 Page Ref: 71 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-1 76) According to federal regulations, a spokesperson who endorses a brand must actually use the brand.

Answer: TRUE Diff: 2 Page Ref: 73 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-1 77) A code of ethics identifies how a professional in the industry must respond when faced with ethical questions.

Answer: FALSE Diff: 3 Page Ref: 79 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-2

24 .

78) A copyright is a brand, corporate or store name, or distinctive symbol that identifies the seller's brand and thus differentiates it from the brands of other sellers.

Answer: FALSE Diff: 1 Page Ref: 82 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3 79) A trademark must be registered with the Library of Congress.

Answer: FALSE Diff: 2 Page Ref: 82 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3 80) A copyright gives an organization the exclusive right to use or reproduce original work, such as an advertisement or package design, indefinitely.

Answer: FALSE Diff: 2 Page Ref: 82 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3 81) Common designs or symbols can be copyrighted.

Answer: FALSE Diff: 2 Page Ref: 82 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3 82) Under the First Amendment to the U.S. Constitution, protection of commercial speech is absolute.

Answer: FALSE Diff: 2 Page Ref: 82 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3 83) The government can ban truthful commercial speech if it can be proven that the public good demands such restrictions.

Answer: TRUE Diff: 3 Page Ref: 82 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3

25 .

84) The Federal Trade Commission (FTC) is the primary agency governing the advertising industry.

Answer: TRUE Diff: 2 Page Ref: 84 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3 85) A cease-and-desist order given to any firm in an industry applies to all firms in that industry.

Answer: TRUE Diff: 3 Page Ref: 84 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3 86) With respect to prescription drugs, the Food and Drug Administration's primary job is to determine whether the drugs are marketed in a responsible way.

Answer: FALSE Diff: 2 Page Ref: 85 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3 87) The Federal Communications Commission (FCC) has the power to ban the airing of messages, including ads, that are deceptive or in poor taste.

Answer: TRUE Diff: 2 Page Ref: 85 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3 88) The Federal Communications Commission (FCC) has the authority to take legal actions against advertisers and advertising agencies.

Answer: FALSE Diff: 3 Page Ref: 85 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3 89) To be considered deceptive under FTC policy, a false or misleading advertisement must influence consumers' decision making about the product or service advertised.

Answer: TRUE Diff: 2 Page Ref: 86 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3 26 .

90) The current FTC policy on deception is clear and easy for advertisers to measure.

Answer: FALSE Diff: 2 Page Ref: 86 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3 91) An advertiser should have data on file to substantiate any claims it makes in its advertisements.

Answer: TRUE Diff: 3 Page Ref: 86 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3 92) The FTC accepts only research conducted by an independent research firm when investigating an advertiser's claim substantiation.

Answer: FALSE Diff: 3 Page Ref: 86 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3 93) Advertisers must comply with a consent decree.

Answer: FALSE Diff: 2 Page Ref: 87 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-2 94) The first step in the regulation process after the FTC determines that an ad is deceptive is the issuance of a cease-and-desist order.

Answer: FALSE Diff: 2 Page Ref: 87 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3 95) The process leading to the issuance of a cease-and-desist order is similar to that of a court trial.

Answer: TRUE Diff: 2 Page Ref: 87 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3

27 .

96) An advertising agency can be held liable along with the advertiser for deceptive advertising.

Answer: TRUE Diff: 2 Page Ref: 87 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3 97) The media can reject ads that violate their standards of truth and good taste.

Answer: TRUE Diff: 2 Page Ref: 88 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3 98) Virtually all major advertisers and advertising agencies have in-house ad review procedures, typically including reviews by agency and client attorneys.

Answer: TRUE Diff: 2 Page Ref: 88 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3 99) The National Advertising Division (NAD) and the National Advertising Review Board (NARB) are government agencies that negotiate the voluntary withdrawal of national advertising that professionals consider deceptive.

Answer: FALSE Diff: 2 Page Ref: 89 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3 100) The Better Business Bureau is a government agency with the power to oversee advertising, particularly local advertising.

Answer: FALSE Diff: 2 Page Ref: 89 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 3-3 101) Because standards of good taste are generally consistent across a culture, creating general guidelines for good taste in advertising is straightforward.

Answer: FALSE Diff: 2 Page Ref: 67 Skill: Application AACSB: Reflective thinking skills Objective: 3-1 28 .

102) A cereal maker that advertises its products as "the one that will make you smile" is using an exaggerated claim, not puffery.

Answer: FALSE Diff: 3 Page Ref: 71 Skill: Application AACSB: Analytic skills Objective: 3-1 103) In advertising, an action that is legal is by definition ethical.

Answer: FALSE Diff: 3 Page Ref: 76 Skill: Application AACSB: Ethical understanding and reasoning abilities Objective: 3-2 104) A radio host who makes gender stereotyped references that are in poor taste could face action from the FTC. Answer: FALSE Diff: 3 Page Ref: 85 Skill: Application AACSB: Ethical understanding and reasoning abilities Objective: 3-3 105) The concern that children may be exploited by certain advertising messages could be addressed by both the FTC and the FCC. Answer: TRUE Diff: 3 Page Ref: 85-86 Skill: Synthesis AACSB: Reflective thinking skills Objective: 3-3

29 .

106) Discuss the key ethical issues of taste, stereotyping, use of sex appeal, and targeting children. How do advertising professionals deal with these issues?

Answer: (1) Taste and offensive advertising: Advertisers need to consider what might be considered bad taste or offensive by the target audience. The context in which the ads are viewed is also relevant.

(2) Stereotyping: Though stereotypes can be useful, this is a delicate area in advertising. Ads should not use stereotypes that rely on a characteristic that is so negative and exaggerated that it reduces the group to a caricature.

(3) Body image and sex appeal: Advertising that portrays women or men as sex objects can be considered demeaning and sexist, particularly if sex is unrelated to the product. Advertisements also influence cultural concepts of beauty; a focus on body perfection in advertising can lead to men and women placing their health at risk in order to look like models.

(4) Targeting children: Children are seen as more vulnerable than adult consumers. A current issue is related to selling soft drinks, candy, and food with high fat and sugar content to children.

Many believe that heavy advertising of such products has added to the growing obesity rate among the country's children.

Diff: 3 Page Ref: 67-70 Skill: Synthesis AACSB: Ethical understanding and reasoning abilities Objective: 3-1 107) Bob is a brand manager for a national brand laundry detergent and noticed a claim made in a competitor's advertisement that falsely indicates that its brand performed better than his company's brand. What must Bob's company prove to win a false advertising lawsuit over this comparative claim?

Answer: According to federal law, companies/plaintiffs are required to prove five elements to win a false advertising lawsuit about an ad containing a comparative claim: (1) False statements have been made about either product.

(2) The ads actually deceived or had the tendency to deceive a substantial segment of the audience.

(3) The deception was "material" or meaningful (i.e., likely to influence purchasing intentions).

(4) Falsely advertised goods are sold in interstate commerce.

(5) The suing company has been or likely will be injured as a result of the false statements, either by loss of sales or loss of goodwill.

Diff: 3 Page Ref: 72 Skill: Synthesis AACSB: Ethical understanding and reasoning abilities Objective: 3-1

30 .

108) Compare and contrast a trademark and a copyright. Explain the importance of each and how each is protected.

Answer: A trademark is a brand, corporate or store name, or distinctive symbol that identifies the seller's brand and thus differentiates it from the brands of other sellers. A trademark that is registered through the Patent and Trademark Office of the Department of Commerce gives the organization exclusive use of the mark, as long as the trademark is maintained as an identification for a specific product. Because trademarks are critical communication devices for products and services, they are important to advertising. A copyright gives an organization the exclusive right to use or reproduce original work, such as an advertisement or package design, for a period of time. Controls for copyright protection are provided by the Library of Congress.

Advertising is a competitive business in which copycat ads abound, and copyrighting of coined words, phrases, illustrations, characters, and photographs can offer some protection from other advertisers who borrow too heavily from their competitors.

Diff: 3 Page Ref: 82 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 3-3 109) Describe three specific responsibilities of the Federal Trade Commission.

Answer: FTC responsibilities include the following: (1) Initiate investigations against companies that engage in unfair competition or deceptive practices.

(2) Regulate acts and practices that deceive businesses or consumers.

(3) When a violation is found, mandate a cease-and-desist order, an affirmative disclosure, and/or corrective advertising.

Diff: 3 Page Ref: 84 Skill: Synthesis AACSB: Reflective thinking skills Objective: 3-3

31 .

110) Name and describe four FTC remedies for deception and unfair advertising.

Answer: The FTC can follow several courses of actions: (1) Consent Decrees–The first step in the regulation process after the FTC determines that an ad is deceptive. The FTC notifies the advertiser of its finding and asks the advertiser to sign a consent decree agreeing to stop the deceptive practice. Most advertisers do sign the decree to avoid bad publicity.

(2) Cease-and-Desist Orders–Issued when the advertiser refuses to sign the consent decree and the deception is determined to be substantial. The process leading to the issuance of a cease-anddesist order is similar to a court trial, in which an administrative law judge presides and lawyers represent both parties.

(3) Corrective Advertising–May be required when consumer research determines that an advertising campaign has perpetuated lasting false beliefs. The FTC orders the offending advertiser to produce messages for consumers that correct the false impressions the ad made.

(4) Consumer Redress–The FTC can order cancellation or reformation of contracts, refund of money or return of property, payment of damages, and/or public notification.

Diff: 3 Page Ref: 87-88 Skill: Critical Thinking AACSB: Ethical understanding and reasoning abilities Objective: 3-3 111) Some claim advertising has created a society that is obsessed with personal hygiene because consumers are bombarded with ads for products that remove our body odors, make our teeth white, make our hair shine, allow us to fit in with our peers, and make our family love us more.

Which side of the social debate on advertising do believers of this statement most likely take?

A) advertising mirrors social values B) advertising mimics social values C) advertising shapes social values D) advertising manipulates social values E) advertising is offensive Answer: C Diff: 2 Page Ref: 66 Skill: Application AACSB: Reflective thinking skills Objective: 3-1

32 .

112) John works for an advertising agency whose client wants to reach Hispanic consumers living in Florida and Texas. He decides that one ad execution is sufficient because he believes that all Hispanics are the same. John is using a(n) ________ to make his decision.

A) heuristic B) shortcut C) unethical basis D) stereotype E) substantiation Answer: D Diff: 2 Page Ref: 68 Skill: Application AACSB: Analytic skills Objective: 3-1 113) Charley's Fish Fry restaurant claims it has the "best seafood in town." What type of claim does the Federal Trade Commission consider this to be?

A) deceptive B) comparative C) puffery D) endorsement E) indirect Answer: C Diff: 2 Page Ref: 71 Skill: Application AACSB: Analytic skills Objective: 3-1 114) Bayer Aspirin claims that it relieves headache pain three times faster than does Tylenol.

What type of advertising is this?

A) comparative B) testimonial C) endorsement D) indirect E) substantiated Answer: A Diff: 2 Page Ref: 71 Skill: Application AACSB: Analytic skills Objective: 3-1

33 .

115) Recently, a class-action lawsuit was brought against McDonald's, charging that its food has contributed to the nationwide obesity epidemic. The suit was eventually dismissed, but many critics continue to point out the health dangers of typical "fast food" menu items. These critics are concerned that the fast food industry has used ________.

A) high-pressure selling B) deceptive promotions C) deceptive pricing D) deceptive packaging E) harmful products Answer: E Diff: 2 Page Ref: 74 Skill: Application AACSB: Ethical understanding and reasoning abilities Objective: 3-1 116) Timberland employees get 40 hours paid leave each year to pursue volunteer projects. The company runs a service day that hosts projects in 25 countries, and it supports a nonprofit that brings young people into public service for a year. CEO Jeffrey Swartz sees such service as a powerful differentiator for Timberland with its current and potential customers. Timberland could be most accurately described as practicing ________.

A) consumerism B) green marketing C) social marketing D) traditional marketing E) mission marketing Answer: E Diff: 2 Page Ref: 76 Skill: Application AACSB: Analytic skills Objective: 3-1 117) A regional supermarket chain runs print, radio, and television advertisements announcing that 1% of its sales over the next two months will be donated to local after-school programs for underprivileged youth. This is an example of ________ marketing.

A) cause B) mission C) sustainable D) green E) integrated Answer: A Diff: 2 Page Ref: 76 Skill: Application AACSB: Analytic skills Objective: 3-1

34 .

118) A company that practices green marketing would likely be LEAST concerned about which of the following?

A) recycling programs B) environmentally sustainable strategies C) social responsibility D) URL copyrights E) biodegradability Answer: D Diff: 2 Page Ref: 76 Skill: Application AACSB: Reflective thinking skills Objective: 3-1 119) Which of the following is the best example of a company using green marketing?

A) a company adopting a code of marketing ethics B) a company contributing a portion of revenues to a specific nonprofit organization C) a company making its products out of recycled materials D) a company making special efforts to hire a multiculturally diverse staff E) a company using the social marketing concept Answer: C Diff: 2 Page Ref: 76 Skill: Application AACSB: Analytic skills Objective: 3-1 120) Nike's longtime symbol on its products and in its ads is the Nike "Swoosh," which looks like a curved checkmark. If another athletic shoemaker used that symbol on its products or in its ads, that company would most likely be guilty of ________.

A) comparative advertising B) competitive infringement C) misleading advertising D) trademark infringement E) deceptive advertising Answer: D Diff: 2 Page Ref: 82 Skill: Application AACSB: Analytic skills Objective: 3-3

35 .

121) Malaysia has banned many forms of tobacco advertising. However, the name Salem a major cigarette manufacturer can be found in advertisements for a line of clothing sponsored by the company. Salem is using which of the following to work around the tobacco advertising bans?

A) stealth advertising B) deceptive advertising C) indirect advertising D) unfair advertising E) imperialistic advertising Answer: C Diff: 2 Page Ref: 83 Skill: Application AACSB: Analytic skills Objective: 3-3 122) Lovely Locks, a maker of shampoos, is considering entering the cosmetics market. The company has a line of mascara and eyeliner it wants to introduce. However, first Lovely Locks must obtain approval from the ________.

A) Environmental Protection Agency B) Interstate Commerce Commission C) Food and Drug Administration D) Federal Trade Commission E) Federal Communications Commission Answer: C Diff: 3 Page Ref: 85 Skill: Application AACSB: Analytic skills Objective: 3-3 123) The Federal Trade Commission investigated a claim made in an ad for Ultra Slimfast and determined that the ad is deceptive. What's the first remedy that will be taken by the FTC? A) issue a cease-and-desist order B) fine the advertiser $10,000 for every day the ad has run C) require the advertiser to run corrective advertising D) order the advertiser to refund consumers' money E) issue a consent decree Answer: E Diff: 2 Page Ref: 87 Skill: Application AACSB: Reflective thinking skills Objective: 3-3

36 .

124) In which case did the Supreme Court signal the LEAST protection for commercial speech under the First Amendment?

A) Valentine v. Chrestensen (1942) B) Virginia State Board of Pharmacy v. Virginia Citizens Consumer Council (1976) C) Central Hudson Gas & Electric Corporation v. Public Service Commission of New York (1980) D) Cincinnati v. Discovery Network (1993) E) 44 Liquormart, Inc. v. Rhode Island (1995) Answer: A Diff: 3 Page Ref: 83 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 3-3 125) A federal agency ordered KFC to stop running ads with false claims that its fried chicken is compatible with certain weight loss programs. Which agency had the authority to issue this order?

A) the Federal Trade Commission B) the Food and Drug Administration C) the Consumer Product Safety Commission D) the Environmental Protection Agency E) the American Association of Advertising Agencies Answer: A Diff: 2 Page Ref: 84 Skill: Synthesis AACSB: Reflective thinking skills Objective: 3-3 126) When Kraft foods made a claim that their processed cheese slices contained as much calcium as contained in 5 ounces of milk, the Federal Trade Commission pursued it as a deceptive claim. Although Kraft admitted that a cheese slice did not actually contain as much calcium as claimed due to processing, the company claimed that its ad was not deceptive because consumer research indicated that calcium content was not important to consumers when deciding among brands of cheese. Basically, Kraft's defense was based on its belief that the misleading claim ________.

A) did not lead to material injury to consumers, and thus it was not deceptive B) did not claim anything different from other cheese manufacturers C) was not technically misleading if consumers didn't think it was D) was not reasonable from the consumers' point of view E) was not deceptive because the claim was merely false but did not omit any important information Answer: A Diff: 3 Page Ref: 86 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 3-2 37 .

Use the passage below to answer the following questions.

Prior to 1997, broadcast ads for prescription drugs could not mention both the ailment for which the drug received FDA approval and the name of the drug in the same advertisement. That is, only one or the other could be mentioned, which led to much confusion on the part of consumers.

In 1997, the Food and Drug Administration loosened its controls on pharmaceutical companies, and as a result, the amount of prescription drug advertising on television has skyrocketed. Now both the ailment and the name of the drug can be mentioned, but major side effects must also be mentioned and there must be an indication where the consumer can get more information, such as from a magazine ad or a Web site. Some have been quite critical of this direct-to-consumer prescription advertising, claiming it has led to an increase in requests for costlier drugs when the less expensive generic drugs would be just as effective.

127) Although some doctors appreciate that the advertising has caused consumers to become more active in managing their own health and more informed about their drug options, some claim that they are being pressured to write inappropriate prescriptions because their patients are influenced by the drug ad claims. What is this called when an external message, like an advertisement, causes people to feel a need to buy and use a product?

A) demand creation B) overcommercialization C) indirect advertising D) endorsement advertising E) puffery Answer: A Diff: 2 Page Ref: 65 Skill: Application AACSB: Analytic skills Objective: 3-1

38 .

128) One ad for a drug used to overcome male erectile dysfunction depicted an old man in a nursing home acting like a young man chasing after several women at once. The ad was not allowed to air on the major television networks of NBC, CBS, and ABC. The ad did not contain any deceptive or unsubstantiated claims, so there was nothing untruthful in the ad. Furthermore, the ad followed the guidelines given by the FDA regarding broadcast advertising by indicating the major side effects and referring to a magazine ad for more information. Which of the following best explains why the ad was not allowed to air?

A) Stereotypes of "dirty old men" are not allowed in any advertising.

B) The National Advertising Division determined the ad was distasteful and disallowed it from being aired on television.

C) Not all advertising is given the same protection under the First Amendment of the Constitution.

D) The media can reject ads that violate their standards of good taste.

E) The behavior portrayed by the old man did not reflect the real behavior of the individual involved.

Answer: D Diff: 3 Page Ref: 88 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 3-3 129) Pfizer is a large pharmaceutical company that has dramatically increased its direct-toconsumer television advertising of prescription drugs. However, Pfizer has stringent in-house ad review procedures, including reviews by agency and client attorneys. Pfizer is concerned that any claim made in an ad is verifiable and that the ad is executed in good taste. What type of selfregulation does this illustrate?

A) industry self-regulation B) self-discipline C) self-regulation with outside help D) mandatory self-regulation E) voluntary self-regulation Answer: B Diff: 2 Page Ref: 88 Skill: Application AACSB: Analytic skills Objective: 3-3

39 .

130) An advertisement by the manufacturer of Flonase, a prescription allergy nasal spray, compared its product with another nasal spray on the market, Nasonex, and claimed that it controlled allergy symptoms for a longer period of time. The ad was effective, resulting in a two percent increase in market share for Flonase. Manufacturers of Nasonex claimed that the advertisement misrepresented their product and basically made a false comparison. Under which law, Nasonex would have to prove all of the following EXCEPT which one?

A) False statements had been made about Nasonex or Flonase.

B) The ads actually deceived a substantial segment of the audience.

C) Both Nasonex and Flonase are sold in interstate commerce.

D) Nasonex has been injured or is likely to be injured as a result of the false statements.

E) Flonase relied on puffery in the ads.

Answer: E Diff: 3 Page Ref: 72 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 3-1 131) Kim and her boyfriend were watching a movie on television when a commercial for a feminine hygiene product came on. Kim was actually interested in this product, but being a teenager, she was mortified that her boyfriend was there when this ad came on. She quickly changed the channel. What key ethical issue challenging the standards of advertising professionals does this best illustrate?

Answer: This example is a good illustration of the "poor taste and offensive advertising" key ethical issue facing advertising professionals. This ad might not be considered offensive or in poor taste by Kim if her boyfriend was not present, but it made her uncomfortable because he was there when it came on the television.

Diff: 2 Page Ref: 67 Skill: Application AACSB: Ethical understanding and reasoning abilities Objective: 3-1 132) What are the arguments against using sex appeals in an advertisement for a product that is not related to sex?

Answer: One argument is that the use of sex appeals may be degrading or sexist. Another argument is that the irrelevant use of sex in an ad distracts and hinders communication to the target.

Diff: 3 Page Ref: 68 Skill: Critical Thinking AACSB: Ethical understanding and reasoning abilities Objective: 3-1

40 .

133) OfficeMax has an advertisement that shows an African American with a bushy 1970s-era Afro hairdo dancing among office cubicles as he dispenses office supplies to fellow employees.

The music he is dancing to is a famous song, "Rubberband Man," recorded by an African American singer. While OfficeMax claims this ad has been received favorably by consumers, it seems as though the response could have gone the other way. Explain why.

Answer: This ad illustrates one of the key ethical issues facing advertising professionals: stereotyping. Some could argue that OfficeMax is using a racial and ethnic stereotype of an African American dancing around in a low-level position in an organization. The stereotype is further exaggerated with the 1970s Afro hairdo.

Diff: 3 Page Ref: 69-70 Skill: Critical Thinking AACSB: Ethical understanding and reasoning abilities Objective: 3-1 134) Explain the importance of avoiding the use of age-related stereotypes in advertisements.

Answer: Senior citizens are a growing segment of the population with increasing amounts of disposable income. The needs of the maturing consumer depend more on the individual's mental and physical acuity than on the individual's chronological age, so age-related stereotypes will not apply to broad segments of the senior population.

Diff: 2 Page Ref: 70 Skill: Synthesis AACSB: Reflective thinking skills Objective: 3-1 135) Many advertisements for weight-loss products feature before-and-after photos of individuals who have lost an astonishing amount of weight. While these products may work for some people, the results shown in the ads may not be typical. What are regulators' concerns regarding these ads, and how do advertisers of these products get away with showing such demonstrations?

Answer: The concern regarding demonstrations is whether the demonstration falsely upgrades the consumers' perception of the advertised brand. One technique some advertisers use to sidestep restrictions on demonstrations is to insert disclaimers or "supers," verbal or written words in the ad that indicate exceptions to the advertising claim made. Notice that most weightloss product advertisements indicate "results are not typical" or "results might vary."

Diff: 3 Page Ref: 73 Skill: Critical Thinking AACSB: Ethical understanding and reasoning abilities Objective: 3-1

41 .

136) In 1997, the Food and Drug Administration loosened its controls on pharmaceutical companies, and as a result, the amount of prescription drug advertising has skyrocketed. What is an advantage of this regulatory change?

Answer: Some doctors appreciate that the advertising has caused consumers to become more active in managing their own health and more informed about their drug options.

Diff: 2 Page Ref: 75 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 3-1 137) How is the Distilled Spirits Council a model for industry self-regulation?

Answer: The Distilled Spirits Council is a trade organization representing producers and marketers of distilled spirits sold in the U.S. The organization encourages members to follow guidelines for responsible practices when advertising; this has led to limited liquor advertising on television.

Diff: 3 Page Ref: 75 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 3-1 138) In 1997, the Food and Drug Administration loosened its controls on pharmaceutical companies, and as a result, the amount of prescription drug advertising has skyrocketed. What is a disadvantage of this regulatory change?

Answer: One study found that direct-to-consumer prescription drug advertising has led to an increase in requests for costlier drugs, when the less expensive generic drug would be just as effective. For this reason, consumer groups, government agencies, and insurance companies have been quite critical of this advertising. Some doctors also claim that they are being pressured to write inappropriate prescriptions because their patients are influenced by the drug ad claims.

These arguments tend to support the demand creation criticism of advertising.

Diff: 2 Page Ref: 75 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 3-1 139) Explain the distinctions between ethics and morals.

Answer: Ethics are the "shoulds and oughts" of behavior. Ethics are the "right thing to do."

Ethics and morals are closely related, but not synonymous. Morals are frameworks for right actions and are more the domain of religion. Moral systems provide a framework for behavior.

Diff: 2 Page Ref: 76 Skill: Synthesis AACSB: Ethical understanding and reasoning abilities Objective: 3-2

42 .

140) What is the purpose of the American Association of Advertising Agencies' Creative Code?

Answer: The AAAA's Creative Code is the core of the association's Standards of Practice. This code of ethics establishes guidelines for professionals in the ad industry to follow when faced with ethical questions.

Diff: 2 Page Ref: 79 Skill: Critical Thinking AACSB: Ethical understanding and reasoning abilities Objective: 3-2 141) List three ethical questions, given in the "Practical Tips" box, in terms of the social impact advertising professionals can ask themselves as they confront ethical dilemmas.

Answer: The "Practical Tips" box provides seven questions regarding advertising's social impact, only three of which are necessary to correctly answer this question: In terms of its social impact, does advertising: (1) violate public standards of good taste?

(2) reinforce negative stereotypes?

(3) damage people's self-image and create insecurities?

(4) promote materialism?

(5) create false wants and false hopes?

(6) contribute to cultural pollution?

(7) market dangerous products?

Diff: 3 Page Ref: 80 Skill: Application AACSB: Ethical understanding and reasoning abilities Objective: 3-2 142) Explain the "Reasonableness" element of the current FTC policy on deception.

Answer: The perspective of the "reasonable consumer" is used to judge deception. The FTC tests reasonableness by looking at whether the consumer's interpretation or reaction to an advertisement is reasonable.

Diff: 3 Page Ref: 86 Skill: Critical Thinking AACSB: Ethical understanding and reasoning abilities Objective: 3-3 143) Explain the "Injurious" element of the current FTC policy on deception.

Answer: The deception must lead to material injury. That is, it must influence consumers' decision making about products and services.

Diff: 3 Page Ref: 86 Skill: Critical Thinking AACSB: Ethical understanding and reasoning abilities Objective: 3-3

43 .

144) Procter & Gamble is concerned about a claim made in a rival's advertisement. P&G thinks that their claim is deceptive. If P&G does not want to get the government involved in this dispute, what course of action can P&G take to resolve this issue?

Answer: P&G can file a complaint with the National Advertising Division (NAD), which is the investigative arm of the National Advertising Review Council (NARC).

Diff: 2 Page Ref: 89 Skill: Synthesis AACSB: Reflective thinking skills Objective: 3-3 145) Todd just took a job as the manager of a television station. What does he need to know about the station's responsibility for showing children's educational shows?

Answer: Todd needs to know that, based on a 1996 agreement between broadcasters, children's advocates, and the federal government, all television stations are required to air three hours of children's educational shows each week.

Diff: 2 Page Ref: 86 Skill: Application AACSB: Reflective thinking skills Objective: 3-3 146) You, as a consumer, think that an advertisement you saw on television for a national brand is making a false claim. What can you do about it?

Answer: Consumers can: (1) Contact a consumer activist group.

(2) File a complaint with the appropriate federal regulating agency (i.e., the Federal Trade Commission).

(3) File a complaint with the National Advertising Review Council through the Council of Better Business Bureaus.

Diff: 3 Page Ref: 89-90 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 3-3

44 .

Use the information below to answer the following questions.

Amy is seven years old and loves to play with dolls. In fact, she has more than 20 Barbie dolls and lots of clothes and accessories, including three cars, a house with furniture, and an airplane.

Mattel, the manufacturer of Barbie, also sells many other products with the Barbie brand, such as games, notebooks, and girls' clothing, to name a few.

147) Amy saw a commercial on television for a newer Barbie house than the one she currently has, and of course, she wanted it. Advertising has been criticized because it is used to drive people to feel a need or want. What is this called and why is advertising criticized?

Answer: Demand creation means using an external message to drive people to feel a need or want. Demand creation becomes a question of ethics when social critics charge that the demand is artificial and the products really aren't needed that people's wants are being manipulated unnecessarily.

Diff: 2 Page Ref: 65 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 3-1 148) One ad for Barbie shows an animated Barbie character diving off of a diving board doing flips and twists before landing in a pool. The commercial was advertising a Barbie doll with a diving board that can be attached to the side of a bathtub. Amy begged her mother for the doll and got it, but she was very disappointed when the doll did not perform as she had seen it perform in the commercial. She realized she had to hold on to the doll to make it flip around and dive into the water. What was wrong with this ad?

Answer: This scenario is getting at the issue of deceptive advertising. The ad was misleading in that the doll could not actually do what was shown in the advertisement. The perspective of the "reasonable consumer" is used to judge deception, and in this case, a young girl such as Amy would be considered the "reasonable consumer." This ad led to material injury, as the ad certainly influenced Amy's demand for the doll.

Diff: 3 Page Ref: 86 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 3-3 149) What self-regulatory agencies would likely be interested in evaluating advertisements for Barbie?

Answer: The National Advertising Division (NAD) and the Council of Better Business Bureaus are two associations that might receive and investigate complaints about such advertisements.

Diff: 2 Page Ref: 89 Skill: Application AACSB: Reflective thinking skills Objective: 3-3

45 .

150) Amy's mother limits Amy's television viewing time because she feels there is just too much advertising influencing her child to want more stuff. However, there are restrictions regarding advertising toward children. Briefly name and describe the laws and regulations specific to television advertising targeted at children.

Answer: In 1990 Congress passed the Children's Television Advertising Practice Act, which placed 10.5-minute-per-hour ceilings for commercials in children's weekend television programming and 12-minute-per-hour limits for weekday programs. The Act also set rules requiring that commercial breaks be clearly distinguished from programming, barring the use of program characters to promote products.

Diff: 3 Page Ref: 86 Skill: Synthesis AACSB: Ethical understanding and reasoning abilities Objective: 3-3

46 .

Advertising & IMC: Principles and Practice, 9e (Moriarty) Chapter 4 How Marketing Communication Works 1) Which of the following is NOT an element of the basic communication model?

A) channel B) message C) source D) advertisement E) receiver Answer: D Diff: 2 Page Ref: 100 Skill: Concept AACSB: Communication abilities Objective: 4-1 2) The basic communication model begins with ________.

A) the source B) the receiver C) the message D) the channel E) the target audience Answer: A Diff: 1 Page Ref: 100 Skill: Concept AACSB: Communication abilities Objective: 4-1 3) Who encodes the message in the basic communication model?

A) the receiver B) the channel C) the media D) the source E) the encoder Answer: D Diff: 2 Page Ref: 100 Skill: Concept AACSB: Communication abilities Objective: 4-1

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4) When a message is interpreted by the receiver, it means it has been ________.

A) encoded B) delivered C) decoded D) persuasive E) accepted Answer: C Diff: 2 Page Ref: 100 Skill: Concept AACSB: Communication abilities Objective: 4-1 5) Which of the following is NOT a necessary component in the basic communication model?

A) source B) decoding C) noise D) receiver E) encoding Answer: C Diff: 2 Page Ref: 100 Skill: Concept AACSB: Communication abilities Objective: 4-1 6) ________ is obtained in the basic communication model by monitoring the response of the receiver to the message.

A) Noise B) Feedback C) Acceptance D) Persuasion E) Awareness Answer: B Diff: 1 Page Ref: 100 Skill: Concept AACSB: Communication abilities Objective: 4-1

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7) Things that interrupt the sending as well as the receiving of the message are known as ________ in the basic communication model.

A) encoders B) decoders C) feedback D) interference E) noise Answer: E Diff: 1 Page Ref: 100 Skill: Concept AACSB: Communication abilities Objective: 4-1 8) Who determines the objectives for the advertising message?

A) the audience B) the channel C) the media D) the advertiser assisted by its agency E) the advertiser assisted by its agency and the media Answer: D Diff: 2 Page Ref: 100 Skill: Concept AACSB: Communication abilities Objective: 4-1 9) Which major player in the advertising industry assists advertisers in encoding their messages into words and pictures?

A) media B) target audience C) agency D) sender E) channel Answer: C Diff: 2 Page Ref: 100 Skill: Concept AACSB: Communication abilities Objective: 4-1

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10) Newspaper, radio, and television are all examples of which element of the basic communication model?

A) the receiver B) the channel C) the source D) the encoder E) the decoder Answer: B Diff: 2 Page Ref: 101 Skill: Concept AACSB: Communication abilities Objective: 4-1 11) ________ communication is a form of two-way communication, a dialogue.

A) Mass B) Target C) Interactive D) Integrative E) External Answer: C Diff: 1 Page Ref: 101 Skill: Concept AACSB: Communication abilities Objective: 4-1 12) ________ is the multitude of messages all competing to get consumers' attention.

A) The medium B) Feedback C) Clutter D) The channel E) Internal noise Answer: C Diff: 1 Page Ref: 101 Skill: Concept AACSB: Communication abilities Objective: 4-1

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13) Which of the following is an example of external noise that could hinder the consumer's reception of the message?

A) advertising clutter B) the receiver's needs C) the receiver's language skills D) the receiver's interest level E) all of the above Answer: A Diff: 2 Page Ref: 101 Skill: Concept AACSB: Communication abilities Objective: 4-1 14) ________ enables anyone to have an opinion about a company or brand, communicate it, and listen to the reaction.

A) Mass communication B) Social networking C) Opinion marketing D) One-to-one marketing E) Clutter-free marketing Answer: B Diff: 2 Page Ref: 101 Skill: Concept AACSB: Use of information technology Objective: 4-1 15) Using ________ marketing, advertisers ask consumers if it is okay to contact them.

A) mass B) social C) opinion D) permission E) feedback Answer: D Diff: 2 Page Ref: 102 Skill: Concept AACSB: Use of information technology Objective: 4-1

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16) According to your text, good marketing communication is effective when it generates the advertiser's desired ________.

A) response B) strategy C) market share D) perception E) efficiency Answer: A Diff: 2 Page Ref: 103 Skill: Concept AACSB: Communication abilities Objective: 4-2 17) Which of the following is NOT an element of the AIDA model?

A) attention B) action C) attitude D) desire E) interest Answer: C Diff: 2 Page Ref: 103 Skill: Concept AACSB: Communication abilities Objective: 4-2 18) Because AIDA assumes that consumers start with attention and wind up with a decision, it is referred to as a(n) ________ model.

A) hierarchy-of-effects B) communication C) think-feel-do D) advertising E) stepwise Answer: A Diff: 2 Page Ref: 103 Skill: Concept AACSB: Communication abilities Objective: 4-2

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19) Which model works on the idea that advertising motivates people to think about the message, feel something about the product, and do something, such as try it or buy it?

A) AIDA model B) basic communication model C) Facets model D) think-feel-do model E) feel-do-think model Answer: D Diff: 1 Page Ref: 103 Skill: Concept AACSB: Communication abilities Objective: 4-2 20) Which of the following lists the three key effects, or domains, used in Moriarty's domains model?

A) perception, learning, and persuasion B) perception, emotion, and action C) perception, interest, and action D) interest, desire, and action E) thinking, feeling, and doing Answer: A Diff: 3 Page Ref: 103 Skill: Concept AACSB: Communication abilities Objective: 4-2 21) What is the problem with hierarchical models in planning advertising?

A) They are technically complex and difficult to use.

B) They require significant investments in technology to use.

C) The models do not take into account the rational, information-driven process consumers use to make a decision.

D) The models assume that people proceed through steps in a predictable fashion.

E) The models do not take into account consumers' perceptions.

Answer: D Diff: 3 Page Ref: 105 Skill: Concept AACSB: Communication abilities Objective: 4-2

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22) According to the Facets model, which of the following is NOT considered a consumer response?

A) perception B) cognition C) emotion D) association E) communication Answer: E Diff: 2 Page Ref: 106 Skill: Concept AACSB: Communication abilities Objective: 4-3 23) ________ is the process by which we receive information through our five senses and assign meaning to it.

A) Cognition B) Behavior C) Exposure D) Awareness E) Perception Answer: E Diff: 1 Page Ref: 107 Skill: Concept AACSB: Communication abilities Objective: 4-3 24) Using ________, consumers select messages to which they pay attention.

A) cognition B) association C) selective perception D) selective interest E) awareness Answer: C Diff: 1 Page Ref: 107 Skill: Concept AACSB: Communication abilities Objective: 4-3

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25) What is the first effect an advertising message must have if it is to be effective?

A) cognition B) affect C) perception D) association E) persuasion Answer: C Diff: 2 Page Ref: 107 Skill: Concept AACSB: Communication abilities Objective: 4-3 26) Which key component of perception refers to whether a message is seen or heard?

A) selection and attention B) exposure C) interest and relevance D) awareness E) recognition Answer: B Diff: 1 Page Ref: 107 Skill: Concept AACSB: Communication abilities Objective: 4-3 27) ________ means the receiver of the message has become mentally engaged in some way with the ad and the product.

A) Attention B) Perception C) Selection D) Interest E) Awareness Answer: D Diff: 1 Page Ref: 108 Skill: Concept AACSB: Communication abilities Objective: 4-3

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28) A high level of interest and attention is sometimes referred to as ________.

A) recognition B) perception C) synergy D) stickiness E) relevance Answer: D Diff: 2 Page Ref: 108 Skill: Concept AACSB: Communication abilities Objective: 4-3 29) ________ means the message connects on some personal level with the receiver.

A) Attention B) Perception C) Selection D) Interest E) Relevance Answer: E Diff: 1 Page Ref: 108 Skill: Concept AACSB: Communication abilities Objective: 4-3 30) ________ results when an advertisement makes an impression or registers with a consumer.

A) Attention B) Perception C) Selection D) Interest E) Awareness Answer: E Diff: 2 Page Ref: 109 Skill: Concept AACSB: Communication abilities Objective: 4-3

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31) ________ means people remember seeing the ad, and ________ means they remember what the ad said.

A) Recall; recognition B) Recognition; recall C) Aided recognition; unaided recognition D) Relevance; awareness E) Awareness; relevance Answer: B Diff: 2 Page Ref: 109 Skill: Concept AACSB: Communication abilities Objective: 4-3 32) ________ is a measure of perception; ________ is a measure of understanding.

A) Recall; recognition B) Recognition; recall C) Aided recognition; unaided recognition D) Relevance; awareness E) Awareness; relevance Answer: B Diff: 3 Page Ref: 109 Skill: Concept AACSB: Communication abilities Objective: 4-3 33) Marketers coordinate marketing communication efforts to create ________, which means that individual messages have more impact working jointly to promote a product than they would independently.

A) effects hierarchy B) conviction C) transformation D) synergy E) resonance Answer: D Diff: 2 Page Ref: 109 Skill: Concept AACSB: Communication abilities Objective: 4-3

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34) Subliminal advertising is primarily a(n) ________ issue.

A) perceptual B) affective C) cognitive D) behavioral E) association Answer: A Diff: 2 Page Ref: 109 Skill: Concept AACSB: Communication abilities Objective: 4-3 35) ________ effects are message cues given below the threshold of perception; in other words, you can't easily perceive them because they are too brief to see or they are disguised in some way.

A) Subversive B) Subliminal C) Cognitive D) Unaided E) Affective Answer: B Diff: 1 Page Ref: 109 Skill: Concept AACSB: Reflective thinking skills Objective: 4-3 36) The term ________ describes something that stimulates wants, touches the emotions, and creates feelings.

A) cognitive B) resonant C) liking D) affective E) transformative Answer: D Diff: 2 Page Ref: 109 Skill: Concept AACSB: Communication abilities Objective: 4-3

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37) Which of the following are drivers of the affective response?

A) wants B) symbols C) brand transformations D) needs E) differentiations Answer: A Diff: 2 Page Ref: 111 Skill: Concept AACSB: Communication abilities Objective: 4-3 38) Which of the following is/are NOT drivers of the affective response?

A) wants B) needs C) emotions D) liking E) resonance Answer: B Diff: 2 Page Ref: 111 Skill: Concept AACSB: Communication abilities Objective: 4-3 39) ________ takes place in the neocortex, which is the most evolved and "highest" part of the brain, but ________ comes from the limbic system, which is the most primitive part of the brain.

A) Conditioned learning; cognitive learning B) Social learning; conditioned learning C) Conditioned learning; social learning D) Emotion; rational thought E) Rational thought; emotion Answer: E Diff: 3 Page Ref: 112 Skill: Concept AACSB: Communication abilities Objective: 4-3

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40) Ads that rely on arousing feelings such as humor, love, or fear are using ________ appeals.

A) resonant B) symbolic C) emotional D) cognitive E) transformational Answer: C Diff: 1 Page Ref: 112 Skill: Concept AACSB: Communication abilities Objective: 4-3 41) ________ means the advertising message "rings true" and helps the consumer identify with the brand on a personal level.

A) Resonance B) Affect C) Transformation D) Symbolism E) Conditioned learning Answer: A Diff: 1 Page Ref: 113 Skill: Concept AACSB: Communication abilities Objective: 4-3 42) ________ is stronger than liking because it involves an element of self-identification.

A) Resonance B) Cognitive learning C) Transformation D) Symbolism E) Conditioned learning Answer: A Diff: 2 Page Ref: 113 Skill: Concept AACSB: Communication abilities Objective: 4-3

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43) ________ refers to how consumers respond to information, learn, and understand something.

A) Cognition B) Affect C) Perception D) Behavior E) Persuasion Answer: A Diff: 1 Page Ref: 113 Skill: Concept AACSB: Communication abilities Objective: 4-3 44) Which of the following is a key driver of cognition?

A) influence B) need C) symbolism D) emotion E) resonance Answer: B Diff: 2 Page Ref: 114 Skill: Concept AACSB: Communication abilities Objective: 4-3 45) Which of the following is NOT a key driver of cognition?

A) need B) comprehension C) resonance D) recall E) differentiation Answer: C Diff: 2 Page Ref: 114 Skill: Concept AACSB: Communication abilities Objective: 4-3 46) ________ are something you think about; ________ are based on feelings and desires.

A) Wants; needs B) Transformations; emotions C) Recollections; memories D) Memories; recollections E) Needs; wants Answer: E Diff: 2 Page Ref: 114 Skill: Concept AACSB: Communication abilities Objective: 4-3 15 .

47) ________ occurs when a presentation of facts, information, and explanations leads to understanding.

A) Resonance B) Conditioned learning C) Transformation D) Social learning E) Cognitive learning Answer: E Diff: 1 Page Ref: 114 Skill: Concept AACSB: Communication abilities Objective: 4-3 48) ________ takes place when a set of thoughts and feelings become linked to a brand through repetition of the message.

A) Resonance B) Conditioned learning C) Differentiation D) Social learning E) Cognitive learning Answer: B Diff: 1 Page Ref: 115 Skill: Concept AACSB: Communication abilities Objective: 4-3 49) ________ is the process of making symbolic connections between a brand and characteristics, qualities, or lifestyles that cue the brand's image and personality.

A) Resonance B) Association C) Comprehension D) Recall E) Recognition Answer: B Diff: 1 Page Ref: 115 Skill: Concept AACSB: Communication abilities Objective: 4-3

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50) Brand ________ reflects the degree to which the associations presented in a marketing message, as well as the consumer's interest, are connected to the brand.

A) resonance B) linkage C) synergy D) stickiness E) image Answer: B Diff: 1 Page Ref: 115 Skill: Concept AACSB: Communication abilities Objective: 4-3 51) Which of the following is a key driver of association?

A) resonance B) liking C) conditioned learning D) cognitive learning E) emotions Answer: C Diff: 2 Page Ref: 115 Skill: Concept AACSB: Communication abilities Objective: 4-3 52) Which of the following is NOT a key driver of association?

A) symbolism B) conditioned learning C) brand transformation D) liking E) need Answer: D Diff: 3 Page Ref: 115 Skill: Concept AACSB: Communication abilities Objective: 4-3

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53) When a brand takes on a(n) ________ meaning, the brand stands for certain qualities.

A) resonant B) symbolic C) conditioned D) rational E) affective Answer: B Diff: 1 Page Ref: 115 Skill: Concept AACSB: Communication abilities Objective: 4-3 54) ________ is what happens when a product takes on meaning and is differentiated from other products in the category by virtue of its brand identity and image.

A) Resonance B) Comprehension C) Conditioned learning D) Brand transformation E) Affect Answer: D Diff: 2 Page Ref: 115 Skill: Concept AACSB: Communication abilities Objective: 4-3 55) ________ is the conscious intent on the part of the source to influence or motivate the receiver of a message to believe or do something.

A) Motivation B) Involvement C) Persuasion D) Association E) Cognition Answer: C Diff: 1 Page Ref: 116 Skill: Concept AACSB: Communication abilities Objective: 4-3

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56) When people are convinced of something, their ________ are expressed as ________.

A) beliefs; values B) values; motivations C) motivations; appeals D) attitudes; beliefs E) thoughts; emotions Answer: D Diff: 2 Page Ref: 116 Skill: Concept AACSB: Communication abilities Objective: 4-3 57) An advertisement that suggests everyone is using a certain brand is using a ________ appeal.

A) rational B) buzz C) word of mouth D) bandwagon E) referral Answer: D Diff: 2 Page Ref: 117 Skill: Concept AACSB: Communication abilities Objective: 4-3 58) Which of the following is the most powerful form of persuasion?

A) rational appeal B) resonance C) word of mouth communication D) engagement E) emotional appeal Answer: C Diff: 3 Page Ref: 117-118 Skill: Concept AACSB: Communication abilities Objective: 4-3 59) High-involvement products are also known as ________.

A) trial purchases B) conviction purchases C) direct purchases D) considered purchases E) indirect purchases Answer: D Diff: 1 Page Ref: 118 Skill: Concept Objective: 4-3 19 .

60) Which of the following is the best example of a low-involvement product?

A) cars B) computers C) clothing D) cosmetics E) paper napkins Answer: E Diff: 2 Page Ref: 118 Skill: Concept Objective: 4-3 61) A(n) ________ is a tendency, inclination, or mental readiness to react to a situation in a given way.

A) attitude B) argument C) motivation D) influence E) association Answer: A Diff: 1 Page Ref: 116 Skill: Concept Objective: 4-3 62) A(n) ________ is a state of certainty about a brand.

A) attitude B) preference C) conviction D) credibility E) involvement Answer: C Diff: 1 Page Ref: 119 Skill: Concept Objective: 4-3 63) The idea of ________ is that a consumer is more than just interested in something; he or she is "turned on."

A) attitude B) engagement C) conviction D) credibility E) rehearsal Answer: B Diff: 1 Page Ref: 119 Skill: Concept Objective: 4-3

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64) An attitude (respect, preference), an emotion (liking), and an action (repeat purchases) combine to make ________.

A) brand position B) brand image C) brand promise D) brand loyalty E) brand personality Answer: D Diff: 2 Page Ref: 119 Skill: Concept Objective: 4-3 65) Which of the following refers to the trustworthiness of a person delivering an advertising message?

A) conviction B) engagement C) involvement D) credibility E) advocacy Answer: D Diff: 1 Page Ref: 119 Skill: Concept AACSB: Communication abilities Objective: 4-3 66) What causes consumers to NOT act on a message they may have seen or heard until later when they are in a store?

A) subliminal effects B) cognitive effects C) delayed effects D) association effects E) social learning Answer: C Diff: 2 Page Ref: 124 Skill: Concept AACSB: Communication abilities Objective: 4-3

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67) Brand loyalty is most closely associated with which facet of advertising?

A) perception B) cognition C) behavior D) emotion E) persuasion Answer: C Diff: 3 Page Ref: 119 Skill: Concept AACSB: Communication abilities Objective: 4-3 68) A consumer's brand ________ is motivated by conviction.

A) position B) image C) personality D) preference E) credibility Answer: D Diff: 2 Page Ref: 119 Skill: Concept Objective: 4-3 69) Which of the following is NOT a component of the behavior response?

A) mental rehearsal B) resonance C) contacting D) prevention E) buying Answer: B Diff: 2 Page Ref: 120 Skill: Concept Objective: 4-3 70) Which of the following refers to speaking out on a brand's behalf and referring to it when someone asks for a recommendation?

A) social rehearsal B) cognitive learning C) advocacy D) conviction E) loyalty Answer: C Diff: 1 Page Ref: 120 Skill: Concept Objective: 4-3

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71) Mass communication is a conversation or dialogue in which the source and receiver change positions as the message bounces back and forth between them.

Answer: FALSE Diff: 2 Page Ref: 100 Skill: Concept AACSB: Communication abilities Objective: 4-1 72) Feedback interrupts the sending as well as the receiving of the message.

Answer: FALSE Diff: 1 Page Ref: 103 Skill: Concept AACSB: Communication abilities Objective: 4-1 73) An advertiser's objectives are in terms of the effects the advertiser wants a message to have on an audience.

Answer: TRUE Diff: 2 Page Ref: 100 Skill: Concept AACSB: Communication abilities Objective: 4-1 74) Marketing communication should be considered effective when it generates the advertiser's desired response.

Answer: TRUE Diff: 2 Page Ref: 103 Skill: Concept AACSB: Communication abilities Objective: 4-2 75) The most common and long-standing explanation of advertising effects is referred to as AIDA, which stands for attitude, interest, decision, and action.

Answer: FALSE Diff: 2 Page Ref: 103 Skill: Concept AACSB: Communication abilities Objective: 4-2 76) The Facets Model of Effects posits that effective advertising can create six types of consumer responses: perception, cognition, emotion, association, persuasion, and behavior.

Answer: TRUE Diff: 2 Page Ref: 106 Skill: Concept AACSB: Communication abilities Objective: 4-3 23 .

77) Advertising creates visibility for a product or brand through exposure, and consumers respond by selecting messages to which they pay attention, a process called selective perception.

Answer: TRUE Diff: 2 Page Ref: 107 Skill: Concept AACSB: Communication abilities Objective: 4-3 78) A critical factor in perception is relevance, which means the message connects on some personal level.

Answer: TRUE Diff: 2 Page Ref: 108 Skill: Concept AACSB: Communication abilities Objective: 4-3 79) Relevance results when an advertisement initially makes an impression.

Answer: FALSE Diff: 2 Page Ref: 108 Skill: Concept AACSB: Communication abilities Objective: 4-3 80) Recognition means people remember seeing the ad, and recall means they remember what the ad said.

Answer: TRUE Diff: 2 Page Ref: 109 Skill: Concept AACSB: Communication abilities Objective: 4-3 81) The emotion effect from the Facets Model of Effects refers to the consumer's understanding of an advertisement.

Answer: FALSE Diff: 2 Page Ref: 109 Skill: Concept AACSB: Communication abilities Objective: 4-3 82) Subliminal message cues cannot be perceived because they are too brief to see or they are disguised in some way.

Answer: TRUE Diff: 2 Page Ref: 109 Skill: Concept AACSB: Communication abilities Objective: 4-3 24 .

83) Wants are something you think about, and needs are based on your feelings and desires.

Answer: FALSE Diff: 2 Page Ref: 111 Skill: Concept Objective: 4-3 84) The key drivers of the affective response are needs, wants, emotions, liking, and resonance.

Answer: FALSE Diff: 3 Page Ref: 111 Skill: Concept AACSB: Communication abilities Objective: 4-3 85) Cognition is the process by which we receive information through our five senses and assign meaning to it.

Answer: FALSE Diff: 1 Page Ref: 113 Skill: Concept AACSB: Communication abilities Objective: 4-3 86) An advertisement that creates resonance with a message that "rings true" helps the consumer identify with the brand on a personal level.

Answer: TRUE Diff: 2 Page Ref: 113 Skill: Concept AACSB: Communication abilities Objective: 4-3 87) Behavior refers to how consumers respond to information, learn, and understand something.

Answer: FALSE Diff: 1 Page Ref: 113 Skill: Concept AACSB: Communication abilities Objective: 4-3 88) Cognitive learning occurs when the learner links one thing with another.

Answer: FALSE Diff: 3 Page Ref: 114 Skill: Concept AACSB: Communication abilities Objective: 4-3

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89) Association is the process of making symbolic connections between a brand and characteristics, qualities, or lifestyles that represent the brand's image and personality.

Answer: TRUE Diff: 2 Page Ref: 115 Skill: Concept AACSB: Communication abilities Objective: 4-3 90) The key drivers of association are symbolism, conditioned learning, and brand transformation.

Answer: TRUE Diff: 2 Page Ref: 115 Skill: Concept AACSB: Communication abilities Objective: 4-3 91) Symbolism means a brand takes on meaning when it is transformed from a mere product into something special, something that is differentiated from other products in the category by virtue of its brand identity and image.

Answer: FALSE Diff: 2 Page Ref: 115 Skill: Concept AACSB: Communication abilities Objective: 4-3 92) A product becomes differentiated by virtue of its brand image, symbolism, and personality cues.

Answer: TRUE Diff: 2 Page Ref: 115 Skill: Concept AACSB: Communication abilities Objective: 4-3 93) Advertising creates brand meaning through symbolism and association.

Answer: TRUE Diff: 2 Page Ref: 115 Skill: Concept AACSB: Communication abilities Objective: 4-3 94) Persuasion is the conscious intent on the part of the source to influence or motivate the receiver of a message to believe or do something.

Answer: TRUE Diff: 1 Page Ref: 116 Skill: Concept AACSB: Communication abilities Objective: 4-3 26 .

95) An argument uses logic, reasons, and proof to make a point and build conviction.

Answer: TRUE Diff: 1 Page Ref: 119 Skill: Concept AACSB: Communication abilities Objective: 4-3 96) Conviction means an intention to try or buy a product.

Answer: FALSE Diff: 2 Page Ref: 119 Skill: Concept AACSB: Communication abilities Objective: 4-3 97) Preference is measured both as an attitude and by repeat purchases.

Answer: FALSE Diff: 3 Page Ref: 119 Skill: Concept Objective: 4-3 98) Conviction refers to the degree to which a consumer is engrossed in attending to an ad or making a product decision.

Answer: FALSE Diff: 2 Page Ref: 119 Skill: Concept Objective: 4-3 99) Factors that drive a behavioral response include trial, buying, contacting, and prevention.

Answer: TRUE Diff: 2 Page Ref: 120 Skill: Concept Objective: 4-3 100) Some advertising messages are designed to deter rather than encourage behaviors.

Answer: TRUE Diff: 2 Page Ref: 121 Skill: Concept AACSB: Communication abilities Objective: 4-3 101) Advances in technology, such as the Internet and cell phone, have helped marketers move from interactive communication to mass communication.

Answer: FALSE Diff: 2 Page Ref: 101 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 4-1 27 .

102) The hierarchy-of-effects models adequately explain what makes effective advertising effective.

Answer: FALSE Diff: 2 Page Ref: 105 Skill: Application AACSB: Reflective thinking skills Objective: 4-2 103) The cognition component of a consumer's response would typically be more influential than the affective component for purchases such as scented candles, bath salts, and luxurious towels.

Answer: FALSE Diff: 3 Page Ref: 114 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 4-3 104) The "Stop. Think. Tylenol." ad is an example of a bandwagon appeal.

Answer: FALSE Diff: 2 Page Ref: 117 Skill: Application AACSB: Analytic skills Objective: 4-3 105) Source credibility means that the person delivering the message, such as a doctor, is respected and believed.

Answer: TRUE Diff: 2 Page Ref: 119 Skill: Application AACSB: Communication abilities Objective: 4-3

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106) Describe the basic mass communication model. Then compare and contrast that model with the interactive communication model.

Answer: The basic mass communication model begins with a source, a sender who encodes a message (puts it in words and pictures). The message is presented through channels of communication, such as a newspaper, radio, or TV. The message is decoded, or interpreted, by the receiver, who is the reader, viewer, or listener. Feedback is obtained by monitoring the response of the receiver to the message. The entire process is complicated by noise, which is anything that interrupts the sending as well as the receiving of the message, such as a bad connection. The basic mass communication is generally a one-way process, with the message moving from the source to the receiver. However, interactive communication, while containing the same elements as the basic communication model, is a form of two-way communication, a dialogue. The difference between one-way and two-way communication is that the latter communication process is interactive and the source and receiver change positions as the message bounces back and forth between them.

Diff: 3 Page Ref: 100-101 Skill: Synthesis AACSB: Reflective thinking skills Objective: 4-1 107) Name and describe the most common hierarchy-of-effects model that has been used to explain advertising effects as well as the problems with these types of models.

Answer: The most common and long-standing explanation of advertising effects is called AIDA, which stands for attention, interest, desire, and action. The idea is that first an ad gets attention, then it creates interest, then desire, and finally stimulates action. It's a simple model that identifies four effects and makes a prediction about how they are related in a hierarchy of steps.

Because AIDA assumes that consumers start with attention and wind up with a decision, it is referred to as a hierarchy-of-effects model. The problem with these models is that advertisers now know that people don't always proceed through steps in this predictable fashion. The rational, information-driven process is what the AIDA model describes. However, with impulse purchases, the AIDA model works almost backward. So AIDA isn't adequate as a model of the various types of effects advertising can create.

Diff: 3 Page Ref: 103 Skill: Synthesis AACSB: Reflective thinking skills Objective: 4-2

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108) Briefly describe the purpose of Facets Model of Effects and the six types of consumer responses the model posits.

Answer: The Facets Model posits that effective advertising creates six types of consumer responses: (1) see/hear, (2), feel, (3) think/understand, (4) connect, (5) believe, and (6) act/do.

Within each type of response, factors, or aspects, give definition to the facet. According to this model, the type of responses come together to make up the unique consumer response to an advertising message. The effects are holistic, leading to an impression or an "integrated perception." An effective message, then, has a diamondlike quality that represents how the message effects work together to create the desired consumer response. According to this model, that impact can be created in a number of different ways, meaning one brand message may get attention, explain new information, and convince consumers to try the brand. Another message might create awareness, stir up an emotion, and link a product to a lifestyle. Both can be equally effective; they just touch the consumer in entirely different ways.

Diff: 2 Page Ref: 106-107 Skill: Synthesis AACSB: Reflective thinking skills Objective: 4-3 109) Compare and contrast the cognition and the emotion facets of the the Facets Model of Effects.

Answer: Cognition refers to how consumers respond to information, learn, and understand something. It's a rational response to a message. The key components of cognition are needs, cognitive learning, differentiation, and recall. The emotional/affective response involves feelings. The term affective describes something that stimulates wants, touches the emotions, and creates feelings. The components of the affective response are wants and desires, excitement, feelings, liking, and resonance. Although both mechanisms can explain how advertising works, each works differently. Cognitive responses are more rational and adress consumers' needs. The affective responses are more emotional and are related to consumers' wants.

Diff: 2 Page Ref: 109-114 Skill: Synthesis AACSB: Reflective thinking skills Objective: 4-3

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110) Name and describe the components of persuasion and how they work in advertising.

Answer: Persuasion is designed to change attitudes and behavior and build beliefs. There are many dimensions of persuasion. Advertisers identify motivation, influence, involvement, engagement, conviction, preference and intention, loyalty, and believability and credibility as key to explaining how persuasion works in advertising. Motivation is an incentive or reason to respond. The idea is that something prompts a person to act in a certain way. To intensify the consumer's level of motivation, advertising and other marketing communications such as sales promotion use incentives such as gifts, prizes, and contests to encourage people to respond.

Influence refers to external people or events that shape attitudes and behavior. Involvement refers to the degree to which you are engrossed in attending to an ad or making a product decision. Involvement is built on relevance on how much a product message connects with your life and interests. Engagement goes beyond involvement, cultivating passion for a brand. One of the factors affecting conviction, or a belief about a brand, is the power of an advertisement's argument. An argument is based on a cognitive strategy. It uses logic, reasons, and proof to make a point and build conviction. Preference involves an intention to try or buy a product. In terms of advertising effects, belief is indicated when consumers develop a preference for or an intention to try or buy a product. Brand loyalty, which is measured both as an attitude (preference) and by repeat purchases, is an important response that crosses over between thinking, feeling, and doing.

It is a response that is built on customer satisfaction. Loyalty programs are designed to retain customers, as well as increase their business. Loyalty is of value because it can lead to other behavioral responses, such as advocacy for the brand and referrals. Believability and credibility are the last key components of persuasion; they refer to the trustworthiness of the information and the source of the message.

Diff: 3 Page Ref: 116-118 Skill: Synthesis AACSB: Reflective thinking skills Objective: 4-3 111) HP's advertising agency assembles words and illustrations into an advertisement that will convey the company's intended brand message. In the communication process, HP is ________.

A) messaging B) encoding C) sending D) decoding E) responding Answer: B Diff: 2 Page Ref: 100 Skill: Application AACSB: Analytic skills Objective: 4-1

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112) In the mass communication process, an actual HP printer/fax machine advertisement is called ________.

A) feedback B) the channel C) noise D) the message E) the medium Answer: D Diff: 2 Page Ref: 100 Skill: Application AACSB: Analytic skills Objective: 4-1 113) Jacob has voted Republican his entire life. No matter how many times he sees a television commercial for the Democratic candidate, he is not going to process the message and be influenced by it. What is hindering Jacob's reception of the message?

A) external noise B) feedback C) buzz D) internal noise E) encoding Answer: D Diff: 2 Page Ref: 101 Skill: Application AACSB: Analytic skills Objective: 4-1 114) Procter & Gamble encourages a few teenagers to discuss its new products in chat rooms and to send product-related messages to friends via instant messenger and e-mail. P&G has found this to be an effective means of getting the message about a new product out among this age group. P&G is using ________.

A) mass communication B) buzz marketing C) internal marketing D) one-way communication E) permission marketing Answer: B Diff: 2 Page Ref: 101 Skill: Application AACSB: Analytic skills Objective: 4-1

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115) Turning the page in the newspaper or a magazine, hitting the mute button on the television, tossing unopened mail that looks like an ad, and deleting spam without looking at it are all examples of consumers ________ the message.

A) decoding B) encoding C) perceiving D) filtering E) accepting Answer: D Diff: 3 Page Ref: 107 Skill: Application AACSB: Analytic skills Objective: 4-3 116) The Canned Food Association of America wanted consumers to appreciate the benefits of canned foods. The group's magazine ad depicted a rather shapely robotic-looking woman who was very shiny and contrasted with the dark background in the ad. One had to look closely to learn that the ad was touting the benefits of food in cans, but research indicated that consumers did that because the unusual nature of the ad got them to look closer to determine what it was about. Which component of perception was this unusual ad attempting to accomplish?

A) wants and desires B) selection and attention C) resonance D) recognition E) relevance Answer: B Diff: 3 Page Ref: 108 Skill: Application AACSB: Reflective thinking skills Objective: 4-3 117) Juana looked at her September issue of O magazine and did not see anything of interest.

However, after her mother was diagnosed with bipolar disorder, Juana found the issue extremely interesting because it offered advice on how to help people who are suffering from this problem.

The fact that the boring issue became quite interesting is most directly due to a change in Juana's ________.

A) exposure B) values C) attention D) personality E) comprehension Answer: C Diff: 3 Page Ref: 108 Skill: Application AACSB: Analytic skills Objective: 4-3 33 .

118) Mercy University's initial ads for the school's new MBA program are most likely intended to create ________.

A) liking B) awareness C) preference D) loyalty E) conviction Answer: B Diff: 2 Page Ref: 109 Skill: Application AACSB: Analytic skills Objective: 4-3 119) Mary will not purchase the Disney movie Lion King for her children because she heard that the word sex was airbrushed in the dust rising from an animal stampede, and she doesn't want her children to be influenced by this. While some claim to have seen it, the word cannot be seen, and if it is there at all, it is below the threshold of perception. What type of effect is this?

A) selective attention B) synergistic C) subversive D) subliminal E) cognitive Answer: D Diff: 2 Page Ref: 109 Skill: Application AACSB: Analytic skills Objective: 4-3 120) While standing in line at the supermarket, Janet saw the display of candy bars. She did not think before she put a candy bar in her basket. What is the affective response driver most likely to be involved in such impulse purchases?

A) resonance B) liking C) feelings D) needs E) wants Answer: E Diff: 3 Page Ref: 111 Skill: Application AACSB: Reflective thinking skills Objective: 4-3

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121) Lauren is very particular about her coffee in the morning, using bottled water because the tap water in her community smells like chlorine and makes her coffee taste funny. She saw an ad for a coffeemaker that filters out impurities from the water used to make the coffee. The ad had the headline, "Come on, this is your coffee we're talking about!" When Lauren saw that, she exclaimed, "Yes!" because she could identify with it on a personal level. This is an example of which type of emotional driver?

A) bandwagon appeal B) motivation C) comprehension D) resonance E) need Answer: D Diff: 2 Page Ref: 113 Skill: Application AACSB: Analytic skills Objective: 4-3 122) John saw an ad for flowers that included the phone number 1-800-FLOWERS. Two months later, John wanted to send his mother some flowers for Mother's Day and remembered the phone number from the ad. Which component of cognition is this?

A) cognitive learning B) confusion C) conditioned learning D) differentiation E) recall Answer: E Diff: 2 Page Ref: 114 Skill: Application AACSB: Analytic skills Objective: 4-3 123) Beautiful actresses appear in ads testifying to the quality of a brand of hair coloring products. This is an application of which the following?

A) social learning B) subliminal perception C) cognitive learning D) rehearsal E) conditioned learning Answer: E Diff: 3 Page Ref: 115 Skill: Application AACSB: Analytic skills Objective: 4-3

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124) An ad for CLR bathroom cleaner shows soap scum and grime on a shower wall. The ad demonstrates how one spray is all it takes for CLR to restore everything to a shiny, clean luster.

Which component of persuasion is most clearly demonstrated in this ad?

A) attitude B) argument C) involvement D) loyalty E) trial Answer: B Diff: 2 Page Ref: 119 Skill: Application AACSB: Analytic skills Objective: 4-3 125) John saw an ad for flowers that included the phone number 1-800-FLOWERS. Two months later, John wanted to send his mother some flowers for Mother's Day and remembered the phone number from the ad, so he called and ordered flowers. What type of effect is this?

A) subliminal B) trial C) delayed D) high-involvement E) bandwagon Answer: C Diff: 2 Page Ref: 124 Skill: Application AACSB: Analytic skills Objective: 4-3 126) An ad for Maybelline age-minimizing makeup in Ladies' Home Journal magazine featured actress Melina Kanakaredes and offered readers a $1-off coupon when they try the new makeup.

In terms of the communication model, which of the following would be the best way for the source to measure feedback?

A) the number of subscribers to Ladies' Home Journal B) the number of people who make up the target market C) the number of people who redeem the coupon D) the number of people who were exposed to the ad E) the number of people to whom Melina Kanakaredes is an appealing spokesperson Answer: C Diff: 3 Page Ref: 101 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 4-1

36 .

Refer to the passage below to answer the following questions.

Just For Me is a line of hair care products for pre-teenage girls, that is, girls between the ages of eight and twelve. This is the age in which young girls start to care about their looks and want to make their own decisions regarding their grooming. The manufacturer of this brand decided to use television advertising to inform and persuade girls about this line of products.

127) The young girls to whom the advertising is targeted represent which element of the basic communication model?

A) source B) sender C) encoder D) channel E) receiver Answer: E Diff: 2 Page Ref: 100 Skill: Application AACSB: Analytic skills Objective: 4-1 128) The manufacturer of this line of products used an advertising agency to assist in developing the commercial so that it would communicate the desired meaning to the preteenage girl. Which element of the basic communication model does this represent?

A) noise B) feedback C) encoding D) channel E) decoding Answer: C Diff: 2 Page Ref: 100 Skill: Application AACSB: Analytic skills Objective: 4-1

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129) The commercial the agency developed went through extensive testing because the advertiser and its agency know that the target teenage girls are very fickle about which commercials they attend to. In this scenario, the agency and the advertiser are concerned about ________.

A) selective exposure B) selective perception C) selective awareness D) subliminal attention E) subliminal relevance Answer: B Diff: 2 Page Ref: 107 Skill: Application AACSB: Analytic skills Objective: 4-3 130) Hilary Duff, a singer and actress popular with the target market, appears in the commercial claiming the benefits of the product. Duff is well liked, respected, and believable to this target market. The ads were very successful. What is the most likely reason for the success of this campaign?

A) The target market needed this product.

B) The use of Hilary Duff led to cognitive learning in members of the target market.

C) Hilary Duff was a credible source to deliver this message to this target audience.

D) The use of Hilary Duff was a successful bandwagon appeal.

E) This was a low-involvement product.

Answer: C Diff: 3 Page Ref: 119 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 4-3 131) In the communication process, what is noise and why is it important?

Answer: Noise is the unplanned static or distortion during the communication process, which results in the receiver getting a different message than the one the sender sent. The consumer is distracted and misses the key point.

Diff: 2 Page Ref: 100 Skill: Application AACSB: Reflective thinking skills Objective: 4-1

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132) What is the major difference between the mass communication model and the interactive communication model?

Answer: In the mass communication model, communication is a one-way process, with the message moving from the source to the receiver. However, interactive communication is a form of two-way communication, a dialogue. The difference between one-way and two-way communication is that the latter is interactive, and the source and receiver change positions as the message bounces back and forth between them.

Diff: 2 Page Ref: 100-101 Skill: Synthesis AACSB: Reflective thinking skills Objective: 4-1 133) Describe the AIDA model.

Answer: The most common and long-standing explanation of advertising effects is one referred to as AIDA, which stands for attention, interest, desire, and action. The idea is that first an ad gets attention, then it creates interest, then desire, and finally it stimulates action.

Diff: 2 Page Ref: 103 Skill: Synthesis AACSB: Reflective thinking skills Objective: 4-2 134) Identify three of the key factors driving perception.

Answer: The key factors driving perception include exposure, selection and attention, interest, relevance, curiosity, awareness, and recognition.

Diff: 2 Page Ref: 107 Skill: Application AACSB: Analytic skills Objective: 4-3 135) Why is perception a particularly important facet of the Facets Model of Effects?

Answer: If an advertisement is to be effective, it must be noticed by consumers. In other words, without perception, it is impossible for an advertisement to be effective.

Diff: 2 Page Ref: 107 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 4-3 136) Why might curiosity be a problem for certain types of ad campaigns?

Answer: Curiosity can be a problem when the objective of an ad campaign is to discourage a behavior. Carson Wagner tested the idea that antidrug ads might actually result in increased drug use. He based his research on the psychology of curiosity literature, which suggested that if antidrug ads make people think drug use is widespread, they might become curious about experimenting themselves. His study supported this hypothesis.

Diff: 3 Page Ref: 108 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 4-3 39 .

137) A researcher is paging through a magazine and asking respondents whether they remember seeing a particular ad. Explain which component of perception this is assessing.

Answer: The factor of perception this is assessing is recognition, which means the people remember seeing the ad. Recognition is a measure of perception and is used to determine awareness.

Diff: 2 Page Ref: 109 Skill: Application AACSB: Reflective thinking skills Objective: 4-3 138) Why did the advertising industry sponsor an ad that had the headline, "People Have Been Trying to Find the Breasts in These Ice Cubes Since 1957"?

Answer: The advertising industry has been criticized by some who claim that subliminal "embeds" are placed in ads to manipulate purchase behavior, most often through appeals to sexuality. The ice cubes ad was an attempt to convey the industry's view on the issue of subliminal advertising. The advertising industry considers accusations of subliminal advertising to be both damaging and untrue.

Diff: 3 Page Ref: 110 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 4-3 139) Explain how and why liking is measured in terms of responses.

Answer: Liking is measured in terms of two responses: liking the ad or liking the brand. The assumption is that if you like the ad, then that positive feeling will transfer to the brand. It is possible, however, for consumers to like the ad and not even be able to remember the brand, so the positive feeling generated by the ad may not always transfer to the brand.

Diff: 3 Page Ref: 113 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 4-3 140) Compare and contrast needs and wants.

Answer: Needs are something you think about whereas wants are based on feelings and desires.

When we refer to needs, we are usually talking about the cognitive impact of an advertising message. Wants are depicted as influenced more by emotion or desire.

Diff: 2 Page Ref: 114 Skill: Synthesis AACSB: Reflective thinking skills Objective: 4-3

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141) What type of learning occurs when a presentation of facts, information, and explanations leads to understanding?

Answer: Cognitive learning occurs when a presentation of facts, information, and explanations leads to understanding.

Diff: 2 Page Ref: 114 Skill: Application AACSB: Analytic skills Objective: 4-3 142) Researchers were planning brand and positioning strategies by asking respondents what they think of when they hear the brand name "iPod." Jan responded that she thought of "cool," "music," "freedom," "cutting edge technology," "hip," and "young." What are the researchers doing in this research? Why? Answer: All the terms that came to Jan's mind form her network of association when she thinks of this brand. Understanding this network of associations can help advertiser see how a brand's meaning comes together in people's minds.

Diff: 3 Page Ref: 116 Skill: Application AACSB: Reflective thinking skills Objective: 4-3 143) Explain how cognitive and affective factors are related in the persuasion facet of the Facets Model of Effects.

Answer: Persuasion often involves the tools of logic and reasoning to intensify the feelings on which beliefs are built. Persuasion works through rational arguments and touching emotions in a way that creates a compulsion to act.

Diff: 3 Page Ref: 116 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 4-3 144) Why do marketers value opinion leaders?

Answer: Opinion leaders are people whose opinions are sought by others. Marketers rely on opinion leaders to positively influence the spread of product or service acceptance through a market.

Diff: 2 Page Ref: 117 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 4-3

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145) Mitch is very interested in all electronic devices from computers to stereos and pays attention to all advertisements related to these types of products, even if he is not purchasing one of these products. Why does he do this?

Answer: Mitch is highly engaged in this product category.

Diff: 2 Page Ref: 119 Skill: Application AACSB: Reflective thinking skills Objective: 4-3 146) Anheuser-Busch, a beer manufacturer, sponsors an advertising campaign to curb drunk driving, using the tagline "Friends Don't Let Friends Drive Drunk." The company has also shown a burning automobile with the headline, "Ever Toast a Friend?" Which component of the behavioral response are these ads attempting to stimulate?

Answer: They are attempting to stimulate the prevention response, which means to discourage unwanted behaviors.

Diff: 2 Page Ref: 121 Skill: Application AACSB: Analytic skills Objective: 4-3 147) On Wednesday Jim heard a radio ad about a new book by one of his favorite authors. On Saturday, at his wife's suggestion, he went shopping at the mall. When he saw the bookstore, he remembered the new book and went into the store to purchase the book. Explain the effect of the ad operating in this situation.

Answer: Advertising is a victim of delayed effects—messages are seen and heard at one time and may or may not come to mind at a later date when the consumer is in the purchase situation.

The impact of traditional advertising, like the radio ad, is seldom immediate. The ad for the new book caught Jim's attention. He thought about it three days later when he saw the bookstore. His memory was involved in recalling not just the ad but the content of the message.

Diff: 2 Page Ref: 124 Skill: Application AACSB: Reflective thinking skills Objective: 4-3

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Refer to the scenario below to answer the following questions.

Oust, a brand of air freshener, advertises how its product will get the odor out, not merely cover it up. The advertisement provides facts, information, and an explanation of how Oust can kill bacteria in the air that cause odors.

148) What type of response is Oust attempting to generate among consumers?

Answer: Oust is attempting to stimulate a cognitive response, which refers to how consumers respond to information, learn, and understand something. It's a rational response to a message.

Diff: 2 Page Ref: 113 Skill: Application AACSB: Analytic skills Objective: 4-3 149) Mary saw an ad for Oust on television and in a magazine, but she didn't purchase the product right away. She remembered the ads when she saw the product in the store and decided to try it then. What effect does this demonstrate?

Answer: This is an example of advertising's delayed effects how messages are seen at one time and come back to mind at a later date when the consumer is in a purchase situation.

Diff: 2 Page Ref: 124 Skill: Application AACSB: Analytic skills Objective: 4-3 150) Mary was extremely satisfied with the product after she tried it, so she purchased the product again. She even told her mother and sister about the benefits of Oust and convinced them to try the product as well. What component of persuasion does this represent, and why do marketers want to attain this level of persuasion?

Answer: Brand loyalty, which is measured both as an attitude (preference) and by repeat purchases, is an important response that crosses over between thinking, feeling, and doing. It is a response that is built on customer satisfaction. If you try a product and like it, then you are more likely to buy it again. Loyalty is of value because it can lead to other behavioral responses, such as advocacy for the brand, that is, speaking out on its behalf, which Mary did.

Diff: 3 Page Ref: 120-121 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 4-3

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Advertising & IMC: Principles and Practice, 9e (Moriarty) Chapter 5 Segmenting and Targeting the Audience 1) ________ describes how individuals or groups select, purchase, use, or dispose of products, as well as the needs and wants that motivate these behaviors.

A) Marketing B) Consumption C) Consumer behavior D) Psychology E) Segmentation Answer: C Diff: 1 Page Ref: 130-131 Skill: Concept Objective: 5-1 2) Which of the following is a social/cultural influence on consumer decision making?

A) state of mind B) innovation C) satisfaction D) family E) personality Answer: D Diff: 2 Page Ref: 131 Skill: Concept Objective: 5-1 3) Which of the following is NOT a social/cultural influence on consumer decision making?

A) culture B) motivations C) social class D) reference groups E) demographics Answer: B Diff: 2 Page Ref: 131 Skill: Concept AACSB: Multicultural and diversity understanding Objective: 5-1

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4) Which of the following is a psychological influence on consumer decision making?

A) state of mind B) innovation C) family D) culture E) brand relationship Answer: A Diff: 1 Page Ref: 131 Skill: Concept Objective: 5-1 5) Which of the following is NOT a psychological influence on consumer decision making?

A) state of mind B) selective perception C) satisfaction D) personality E) innovation Answer: E Diff: 2 Page Ref: 131 Skill: Concept Objective: 5-1 6) Which of the following choices is a behavioral influence on consumer decision making?

A) culture B) reference groups C) personality D) psychographics E) innovation Answer: E Diff: 2 Page Ref: 131 Skill: Concept Objective: 5-1 7) Which of the following is NOT a psychological influence?

A) selective perception B) needs and wants C) motivations D) quantity usage E) attitudes and value Answer: D Diff: 3 Page Ref: 131 Skill: Concept Objective: 5-2

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8) ________ is made up of tangible items such as art, literature, buildings, and music and intangible concepts such as knowledge, laws, morals, and customs.

A) Society B) Culture C) Ethnicity D) Behavior E) Social class Answer: B Diff: 1 Page Ref: 132 Skill: Concept AACSB: Multicultural and diversity understanding Objective: 5-1 9) The boundaries each culture establishes for "proper" behavior are called ________.

A) references B) values C) norms D) subcultures E) core values Answer: C Diff: 1 Page Ref: 132 Skill: Concept AACSB: Multicultural and diversity understanding Objective: 5-1 10) ________ are simply rules learned through social interaction that specify or prohibit certain behaviors.

A) Norms B) References C) Values D) Attitudes E) Motivations Answer: A Diff: 1 Page Ref: 132 Skill: Concept AACSB: Multicultural and diversity understanding Objective: 5-1

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11) The source of norms is a culture's ________, which represent underlying belief systems.

A) values B) legal systems C) social systems D) social classes E) education systems Answer: A Diff: 1 Page Ref: 132 Skill: Concept AACSB: Multicultural and diversity understanding Objective: 5-1 12) A sense of belonging, excitement, fun and enjoyment, warm relationships, self-fulfillment, respect from others, a sense of accomplishment, security, self-respect, and thrift are all examples of ________.

A) norms B) culture C) core values D) behaviors E) attitudes Answer: C Diff: 2 Page Ref: 132-133 Skill: Concept AACSB: Multicultural and diversity understanding Objective: 5-1 13) The position you and your family occupy within your society is known as your ________.

A) subculture B) culture C) ethnic group D) reference group E) social class Answer: E Diff: 1 Page Ref: 134 Skill: Concept AACSB: Multicultural and diversity understanding Objective: 5-1

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14) Which of the following does NOT determine an individual's social class?

A) income B) wealth C) education D) occupation E) geography Answer: E Diff: 2 Page Ref: 134 Skill: Concept AACSB: Multicultural and diversity understanding Objective: 5-1 15) Which of the following is NOT typically used to determine social class?

A) income B) age C) family prestige D) value of home E) neighborhood Answer: B Diff: 2 Page Ref: 134 Skill: Concept AACSB: Multicultural and diversity understanding Objective: 5-1 16) Which of the following statements is true regarding social class in the United States?

A) Social class is determined solely by income level.

B) Lines between social classes in the United States are fixed and rigid.

C) People in different social classes tend to buy different products.

D) Wealth is more critical than education level in measuring social class.

E) People are relegated to a permanent class layer in the United States.

Answer: C Diff: 3 Page Ref: 134 Skill: Concept AACSB: Multicultural and diversity understanding Objective: 5-1 17) A ________ is a group of people an individual uses as a model for behavior in specific situations.

A) subgroup B) social class C) reference group D) normal group E) cohort Answer: C Diff: 1 Page Ref: 134 Skill: Concept Objective: 5-1 5 .

18) Family is one of the ________ factors that influence consumer behavior.

A) cultural B) social C) personal D) psychological E) business Answer: B Diff: 2 Page Ref: 135 Skill: Concept Objective: 5-1 19) Which of the following is the most important reference group because of its formative role and the intensity of its relationships?

A) neighbors B) teachers C) family D) employer E) coworkers Answer: C Diff: 2 Page Ref: 135 Skill: Concept Objective: 5-1 20) According to the U.S. Census definition, a ________ consists of two or more people who are related by blood, marriage, or adoption, and live in the same household.

A) subculture B) family C) household D) reference group E) normative group Answer: B Diff: 1 Page Ref: 135 Skill: Concept Objective: 5-1 21) A ________ consists of all those who occupy a dwelling whether they are related or not.

A) subculture B) family C) household D) reference group E) normative group Answer: C Diff: 1 Page Ref: 135 Skill: Concept Objective: 5-1

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22) The basic driving forces that motivate us to do something are called ________.

A) wants B) desires C) values D) needs E) attitudes Answer: D Diff: 2 Page Ref: 135 Skill: Concept Objective: 5-1 23) ________ are what we feel for more essential items, such as food and shelter; ________ occur when we desire or wish for something.

A) Needs; wants B) Wants; needs C) Primary needs; secondary needs D) Acquired needs; primary needs E) Innate wants; acquired wants Answer: A Diff: 2 Page Ref: 135 Skill: Concept Objective: 5-1 24) ________ needs are those we learn in response to our culture and environment and may include needs for esteem, prestige, affection, power, and learning.

A) Innate B) Primary C) Acquired D) Selective E) Higher-order Answer: C Diff: 1 Page Ref: 135 Skill: Concept AACSB: Multicultural and diversity understanding Objective: 5-1 25) Acquired needs are also called ________ needs.

A) secondary B) primary C) physiological D) innate E) safety Answer: A Diff: 2 Page Ref: 135 Skill: Concept AACSB: Analytic skills Objective: 5-1 7 .

26) According to Maslow's Hierarchy of Needs, which level of needs includes self-fulfillment and enriching experiences?

A) ego needs B) belongingness needs C) safety needs D) self-actualization needs E) physiological needs Answer: D Diff: 2 Page Ref: 136 Skill: Concept Objective: 5-1 27) Prestige, status, and accomplishments are all examples of which level of needs in the Maslow's Hierarchy of Needs?

A) ego needs B) belongingness needs C) safety needs D) self-actualization needs E) physiological needs Answer: A Diff: 2 Page Ref: 136 Skill: Concept Objective: 5-1 28) In Maslow's Hierarchy of Needs, ________ needs include water, sleep, and food.

A) self-actualization B) ego C) belongingness D) safety E) physiological Answer: E Diff: 2 Page Ref: 136 Skill: Concept Objective: 5-1 29) In Maslow's Hierarchy of needs, ________ needs include love, friendship and acceptance by others.

A) self-actualization B) ego C) belongingness D) safety E) physiological Answer: C Diff: 2 Page Ref: 136 Skill: Concept Objective: 5-1 8 .

30) According to the theory of ________, we tend to compensate or justify the discrepancies between what we actually receive and what we thought we would receive.

A) selective satisfaction B) cognitive dissonance C) adaptation D) mass desire E) attribution Answer: B Diff: 2 Page Ref: 136 Skill: Concept Objective: 5-1 31) Which of the following is the public spread of a private want?

A) selective satisfaction B) cognitive dissonance C) adaptation D) mass desire E) normatization Answer: D Diff: 2 Page Ref: 136 Skill: Concept Objective: 5-1 32) A(n) ________ is an internal force that stimulates a person to behave in a particular manner and is produced by the tension caused by an unfulfilled want or need.

A) attitude B) desire C) value D) motive E) norm Answer: D Diff: 1 Page Ref: 136 Skill: Concept Objective: 5-1 33) ________ means dividing the market into groups of people who have similar characteristics in certain key product-related areas.

A) Targeting B) Marketing C) Positioning D) Segmenting E) Profiling Answer: D Diff: 1 Page Ref: 137 Skill: Concept Objective: 5-2 9 .

34) Using which strategy do planners treat the market as homogeneous and use general appeals for all consumers?

A) multi-segment strategy B) undifferentiated strategy C) behavioral targeting strategy D) microtargeting strategy E) niche strategy Answer: B Diff: 1 Page Ref: 137 Skill: Concept Objective: 5-2 35) Subsegments of a more general market segment are known as ________ markets and are defined by individuals with some distinctive interest or attitude, such as being ecologically minded consumers.

A) behavioral B) niche C) cultural D) generational E) social Answer: B Diff: 2 Page Ref: 138 Skill: Concept Objective: 5-2 36) Which approach to segmentation divides the market using such characteristics such as gender, ethnicity, income, and so forth?

A) demographic segmentation B) geographic segmentation C) psychographic segmentation D) benefit segmentation E) behavioral segmentation Answer: A Diff: 1 Page Ref: 138 Skill: Concept Objective: 5-2

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37) International, national, state, city, climate, and urban/rural are all ways to segment a market by ________.

A) demographics B) geographics C) psychographics D) behavioral characteristics E) benefits sought Answer: B Diff: 2 Page Ref: 138 Skill: Concept Objective: 5-2 38) Which of the following is NOT an approach to segmenting consumer markets?

A) demographic segmentation B) geographic segmentation C) psychographic segmentation D) behavioral segmentation E) brand segmentation Answer: E Diff: 2 Page Ref: 138-139 Skill: Concept Objective: 5-2 39) Which approach to segmentation divides people into groups based on product category and brand usage?

A) demographic segmentation B) geographic segmentation C) psychographic segmentation D) benefit segmentation E) behavioral segmentation Answer: E Diff: 2 Page Ref: 139 Skill: Concept Objective: 5-2 40) ________ are the statistical, social, and economic characteristics used to describe a population, including age, gender and sexual orientation, education, income, occupation, race, and family status.

A) Psychographics B) Lifestyles C) Geographics D) Demographics E) Ethnographics Answer: D Diff: 1 Page Ref: 139 Skill: Concept Objective: 5-2 11 .

41) The youngest of the baby boomers are now in their ________.

A) late 20s B) mid to late 20s C) mid to late 40s D) early 50s E) early 60s Answer: C Diff: 2 Page Ref: 140 Skill: Concept AACSB: Multicultural and diversity understanding Objective: 5-2 42) Which age-related population group is also referred to as the iGeneration?

A) Generation X B) Millennials C) Generation Y D) the Greatest Generation E) Me Generation Answer: B Diff: 2 Page Ref: 140 Skill: Concept AACSB: Multicultural and diversity understanding Objective: 5-2 43) Which of the following most accurately characterizes members of Generation Y? A) They are children of baby boomers.

B) They are the most environmentally educated generation.

C) They have reached their peak earning and spending years.

D) They were once labeled "the Greatest Generation."

E) They are less immersed in technology than Gen Xers are.

Answer: A Diff: 3 Page Ref: 140 Skill: Concept AACSB: Multicultural and diversity understanding Objective: 5-2

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44) Which of the following statements is false?

A) In the last decade, gay and lesbian consumers have become substantial target markets.

B) Few cultures are more important to U.S. marketing than the Hispanic culture because it is growing proportionately faster than other ethnic groups.

C) There are media use differences based on ethnicity.

D) In the United States during the last three decades, there has been a gradual movement from white-collar occupations to blue-collar occupations.

E) For advertisers, education tends to correlate with the type of medium consumers prefer.

Answer: D Diff: 3 Page Ref: 142-143 Skill: Concept AACSB: Multicultural and diversity understanding Objective: 5-2 45) Consumers with lower education tend to be higher users of ________ than consumers of higher education tend to be.

A) newspapers B) radio C) magazines D) television E) the Internet Answer: D Diff: 2 Page Ref: 142 Skill: Concept AACSB: Multicultural and diversity understanding Objective: 5-2 46) ________ is the amount of money available to a household after taxes and basic necessities such as food and shelter are paid for.

A) Taxable income B) Discretionary income C) Available income D) Net income E) Gross income Answer: B Diff: 2 Page Ref: 143 Skill: Concept Objective: 5-2

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47) What race/ethnicity is growing faster than other ethnic groups?

A) Caucasians B) African Americans C) Asians D) Hispanics E) American Indians Answer: D Diff: 2 Page Ref: 143 Skill: Concept AACSB: Multicultural and diversity understanding Objective: 5-2 48) Of the following, which ethnic minority is expected to be about 30% of the U.S. population by 2050?

A) African Americans B) Asian Americans C) Hispanics D) Native Americans E) Arab Americans Answer: C Diff: 2 Page Ref: 143 Skill: Concept AACSB: Multicultural and diversity understanding Objective: 5-2 49) The term ________ refers to lifestyle and psychological characteristics, such as activities, values, attitudes, interests, and opinions.

A) psychology B) psychographics C) attitude D) motivation E) personality Answer: B Diff: 1 Page Ref: 145 Skill: Concept Objective: 5-2

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50) Which of the following statements regarding attitudes is false?

A) Advertisers are interested in attitudes because of their impact on motivations.

B) Attitudes vary in direction and strength; that is, an attitude can be positive or negative, reflecting like or dislike, or it can be neutral.

C) Most attitudes are deeply set and cannot be changed.

D) Attitudes are important to advertisers because they influence how consumers evaluate products, institutions, retail stores, and advertising.

E) Attitudes are learned.

Answer: C Diff: 3 Page Ref: 145 Skill: Concept Objective: 5-2 51) Psychographic analysis looks at ________ in terms of patterns of consumption, personal relationships, interests, and leisure activities.

A) lifestyle B) psychology C) values D) family E) attitude Answer: A Diff: 2 Page Ref: 145 Skill: Concept Objective: 5-2 52) According to the VALS classification of consumers, what are the three primary motivations for buying products and services?

A) ideals, achievement, and self-expression B) self-orientation, self-expression, and self-fulfillment C) age, social class, and education D) resources, innovations, and psychographics E) attitudes, lifestyle, and values Answer: A Diff: 3 Page Ref: 147 Skill: Concept Objective: 5-2 53) What two variables are used to organize the VALS Lifestyle Framework?

A) resources and innovation B) age and self-orientation C) age and social class D) resources and psychographics E) social class and education Answer: A Diff: 3 Page Ref: 147 Skill: Concept Objective: 5-2 15 .

54) Which of the following is NOT a VALS classification of consumers?

A) Thinkers B) Strivers C) Makers D) Doers E) Believers Answer: D Diff: 3 Page Ref: 147 Skill: Concept Objective: 5-2 55) ________ refers to how much of a product category or brand a customer buys.

A) Adoption B) Innovation C) Motivation D) Niche E) Usage Answer: E Diff: 1 Page Ref: 148 Skill: Concept Objective: 5-2 56) Which of the following is NOT considered a consumer category of brand relationship?

A) innovators B) ex-users C) first-timers D) switchers E) regulars Answer: A Diff: 2 Page Ref: 149 Skill: Concept Objective: 5-2 57) Which of the following describes people with low levels of brand loyalty who may be willing to try a new brand?

A) switchers B) light users C) early adopters D) innovators E) laggards Answer: A Diff: 2 Page Ref: 149 Skill: Concept Objective: 5-2

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58) Consumers learn about new products for the first time and make the decision to buy them during the ________.

A) need recognition stage B) adoption process C) evaluation process D) trial process E) quality assessment Answer: B Diff: 2 Page Ref: 149 Skill: Concept Objective: 5-2 59) Which category of the adoption process represents the 2.5 percent of the population willing to try something new?

A) innovators B) early adopters C) early majority D) late majority E) laggards Answer: A Diff: 2 Page Ref: 149 Skill: Concept Objective: 5-2 60) According to SRI International, early adopters ________.

A) have many strong social contacts B) are people involved in unusual activities and whose level of activity will disproportionately affect the behaviors of others C) are low media users D) have a simple history of personal relationships E) are heavily influenced by others in their social circles Answer: B Diff: 3 Page Ref: 149 Skill: Concept AACSB: Multicultural and diversity understanding Objective: 5-2

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61) ________ is your view of the relationship between what you gain by trying something new and what you have to lose if it doesn't work out.

A) Adoption B) Adaptation C) Perceived risk D) Selective exposure E) Selective distortion Answer: C Diff: 1 Page Ref: 149 Skill: Concept Objective: 5-2 62) ________ are professional researchers hired by advertisers to identify trends that may affect consumer behavior.

A) Profilers B) Futurists C) Trend spotters D) Demographers E) Buzz marketers Answer: C Diff: 1 Page Ref: 150 Skill: Concept Objective: 5-2 63) ________ are trend spotters who specialize in identifying trendy fads that appeal to young people.

A) Cool hunters B) Buzz marketers C) Trend hunters D) Gen Y marketers E) Trend setters Answer: A Diff: 1 Page Ref: 150 Skill: Concept Objective: 5-2 64) Which of the following is NOT a step in the consumer decision process?

A) need recognition B) cognitive dissonance C) information search D) postpurchase evaluation E) purchase decision Answer: B Diff: 2 Page Ref: 151 Skill: Concept Objective: 5-3 18 .

65) ________ can vary in terms of seriousness or importance, and the goal of advertising at this stage is to activate or stimulate the need.

A) Need recognition B) Information search C) Evaluation of alternatives D) Purchase decision E) Postpurchase behavior Answer: A Diff: 1 Page Ref: 151 Skill: Concept Objective: 5-3 66) If the consumer's drive is strong and a satisfying product is near at hand, the consumer is likely to buy it then. If not, the consumer may store the need in memory or undertake a(n) ________.

A) brand personality B) selective retention C) postpurchase behavior D) information search E) product adoption Answer: D Diff: 2 Page Ref: 151 Skill: Concept Objective: 5-3 67) ________ is the stage in which consumers compare various products and features and reduce the list of options to a manageable number.

A) Need recognition B) Information search C) Evaluation of alternatives D) Purchase decision E) Postpurchase behavior Answer: C Diff: 2 Page Ref: 151 Skill: Concept Objective: 5-3

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68) Which of the following statements regarding influences on business-to-business decision making is false?

A) In organizational buying, many individuals are involved in making the decision, often with a buying committee making the final decision.

B) Although the business buyer may be motivated by both rational and emotional factors, the use of rational and quantitative criteria dominate most decisions.

C) Quality is less important in business-to-business buying than in consumer buying.

D) The decision is sometimes made based on a set of specifications to potential suppliers who then bid on the contract.

E) The decision may span a considerable time, creating a lag between the initial contact and final decision.

Answer: C Diff: 2 Page Ref: 152 Skill: Concept Objective: 5-3 69) ________ involves selecting potentially profitable segments as the audience for a marketing communication effort.

A) Targeting B) Positioning C) Zoning D) Segmenting E) Profiling Answer: A Diff: 2 Page Ref: 152 Skill: Concept Objective: 5-4 70) Which of the following involves matching online ads to interests indicated by recency and frequency of consumer online behavior?

A) data mining B) behavioral targeting C) microtargeting D) niche marketing E) mass marketing Answer: B Diff: 2 Page Ref: 155 Skill: Concept AACSB: Use of information technology Objective: 5-4

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71) Purchasers and users have the same needs.

Answer: FALSE Diff: 2 Page Ref: 131 Skill: Concept Objective: 5-1 72) The social and cultural forces that impact consumer decision making include culture, social class, family, and demographics.

Answer: TRUE Diff: 2 Page Ref: 131 Skill: Concept Objective: 5-1 73) Values are defined as rules that we learn through social interaction that specify or prohibit certain behaviors.

Answer: FALSE Diff: 2 Page Ref: 132 Skill: Concept Objective: 5-1 74) A household differs from a family in that it consists of all those who occupy a dwelling whether they are related or not.

Answer: TRUE Diff: 2 Page Ref: 135 Skill: Concept AACSB: Multicultural and diversity understanding Objective: 5-1 75) A need is an internal force that stimulates an individual to behave in a particular manner.

Answer: FALSE Diff: 2 Page Ref: 135 Skill: Concept Objective: 5-1 76) Acquired needs are those we learn in response to our culture and environment and may include needs for esteem, prestige, affection, power, and learning.

Answer: TRUE Diff: 2 Page Ref: 135 Skill: Concept Objective: 5-1 77) Physiological needs include the need for water, food, air, and sleep.

Answer: FALSE Diff: 3 Page Ref: 135 Skill: Concept Objective: 5-1 21 .

78) Consumers who try a product and find it does not meet their expectations may be dissatisfied.

Answer: TRUE Diff: 1 Page Ref: 136 Skill: Concept Objective: 5-1 79) According to the theory of cognitive dissonance, people tend to compensate or justify the discrepancies between what they actually receive and what they thought they would receive.

Answer: TRUE Diff: 2 Page Ref: 136 Skill: Concept Objective: 5-1 80) Using an undifferentiated strategy, marketers treat the market as homogeneous, purposely ignoring differences in the market and using one marketing strategy that will appeal to as many people as possible.

Answer: TRUE Diff: 2 Page Ref: 137 Skill: Concept Objective: 5-2 81) Psychographic segmentation is primarily based on studies of how people spend their money, their patterns of work and leisure, their interests and opinions, and their views of themselves.

Answer: TRUE Diff: 2 Page Ref: 139 Skill: Concept Objective: 5-2 82) Consumers with higher education tend to prefer print media, the Internet, and selected radio and cable stations.

Answer: TRUE Diff: 2 Page Ref: 142 Skill: Concept AACSB: Multicultural and diversity understanding Objective: 5-2 83) In the United States, the Asian market is becoming a huge opportunity because it is growing faster than other ethnic groups.

Answer: FALSE Diff: 3 Page Ref: 143 Skill: Concept AACSB: Multicultural and diversity understanding Objective: 5-2

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84) Ethnicity is a major factor for segmenting markets.

Answer: TRUE Diff: 2 Page Ref: 143 Skill: Concept AACSB: Multicultural and diversity understanding Objective: 5-2 85) Psychographics refers to lifestyle and psychological characteristics such as activities, interests, and opinions.

Answer: TRUE Diff: 2 Page Ref: 145 Skill: Concept Objective: 5-2 86) Psychographics are the statistical, personal, social, and economic characteristics used to describe a population.

Answer: FALSE Diff: 2 Page Ref: 145 Skill: Concept Objective: 5-2 87) In the VALS Framework, psychographic groups are arranged vertically by self-orientation and horizontally by resources.

Answer: FALSE Diff: 3 Page Ref: 147 Skill: Concept AACSB: Multicultural and diversity understanding Objective: 5-2 88) In the VALS Framework, Achievers and Strivers are motivated by achievement.

Answer: TRUE Diff: 2 Page Ref: 147 Skill: Concept AACSB: Multicultural and diversity understanding Objective: 5-2 89) The "bling bling generation" is a term coined by gay, upwardly mobile professionals.

Answer: FALSE Diff: 3 Page Ref: 148 Skill: Concept AACSB: Multicultural and diversity understanding Objective: 5-2

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90) The critical behavior predictor called usage refers to how much of a product category or brand a customer buys.

Answer: TRUE Diff: 1 Page Ref: 148 Skill: Concept Objective: 5-2 91) According to the Pareto Rule, 20 percent of the users buy 80 percent of the products.

Answer: TRUE Diff: 2 Page Ref: 149 Skill: Concept Objective: 5-2 92) In consumer categories, first-timers are people with low levels of brand loyalty who are willing to leave a brand to try another one.

Answer: FALSE Diff: 3 Page Ref: 149 Skill: Concept Objective: 5-2 93) The first step in the consumer decision process is information search.

Answer: FALSE Diff: 2 Page Ref: 151 Skill: Concept Objective: 5-3 94) Searchers are people who are driven by a need to know everything they can about a product before making a purchase, particularly for major purchases.

Answer: TRUE Diff: 2 Page Ref: 151 Skill: Concept Objective: 5-3 95) A difference between the low- and high-involvement decision processes is that in the lowinvolvement case, the information search stage may be skipped.

Answer: TRUE Diff: 2 Page Ref: 151 Skill: Concept Objective: 5-3 96) The first brands that come to mind when you think of a product category are referred to as your evoked set.

Answer: TRUE Diff: 2 Page Ref: 151 Skill: Concept Objective: 5-3 24 .

97) Purchase decision is the last step of the consumer decision process.

Answer: FALSE Diff: 2 Page Ref: 151 Skill: Concept Objective: 5-3 98) Business buyers are not influenced by emotional factors.

Answer: FALSE Diff: 2 Page Ref: 152 Skill: Concept Objective: 5-3 99) After segmenting a market, the marketer selects potentially profitable segments to be the target audience for a marketing communication effort.

Answer: TRUE Diff: 2 Page Ref: 152 Skill: Concept AACSB: Analytic skills Objective: 5-4 100) Profiles are descriptions of the target audience that read like a description of someone you know.

Answer: TRUE Diff: 1 Page Ref: 153 Skill: Concept Objective: 5-4 101) A belief that your family is more important than your job is an example of a value.

Answer: TRUE Diff: 2 Page Ref: 132 Skill: Application AACSB: Multicultural and diversity understanding Objective: 5-1 102) Because people are able to move between social classes, these classes are relatively impermanent and disordered divisions composed of members who do not share values, interests, or behaviors.

Answer: FALSE Diff: 3 Page Ref: 134 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 5-1

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103) When an insurance company tailors its promotional messages to show how its products protect people from being devastated by a natural disaster or an accident, the company is appealing to a secondary need on Maslow's Hierarchy of Needs.

Answer: FALSE Diff: 2 Page Ref: 135 Skill: Application AACSB: Analytic skills Objective: 5-1 104) Ed purchases new technological devices such as PDAs, DVRs, and MP3 players after many people he knows already own the devices. However, Ed is rarely among the last people he knows to purchase a new technology. Ed is part of the late majority adopter group.

Answer: TRUE Diff: 3 Page Ref: 150 Skill: Application AACSB: Analytic skills Objective: 5-2 105) A person buying a boat would be unlikely to exhibit low-involvement buying behavior.

Answer: FALSE Diff: 2 Page Ref: 151 Skill: Application AACSB: Analytic skills Objective: 5-3

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106) Name and describe the social and cultural influences on consumer decisions and why they are important for advertisers.

Answer: The cultural and social forces that impact consumer behavior fall into five major areas: (1) Culture–Made up of tangible items and intangible concepts that together define a group of people or a way of life. It is learned and passed on from one generation to the next. The boundaries each culture establishes for behavior are called norms, which are simply rules that we learn through social interaction that specify or prohibit certain behaviors. The source of norms is our values, which come from our immersion in a specific culture. Advertisers strive to understand the underlying core values that govern people's attitudes and refer to them when selecting an ad's primary appeals.

(2) Social Class–The position you and your family occupy within your society and is determined by such factors as income, wealth, education, occupation, family prestige, value of home, and neighborhood. Marketers assume that people in one class buy different goods from different outlets and for different reasons than people in other classes.

(3) Reference Groups–A group of people we use as a guide for behavior in specific situations.

Reference groups provide information, they serve as a means of comparison, and they offer guidance for consumers. Ads that feature typical users in fun or pleasant surroundings as well as those that use celebrity endorsements are using a reference group strategy.

(4) Family–The most important reference group because of its longevity and the intensity of its relationships. A family consists of two or more people who are related by blood, marriage, or adoption, and live in the same household. Advertisers need to understand the structure, changes, and workings of the family in order to communicate.

(5) Demographics–The statistical, personal, social, and economic characteristics used to describe a population including age, gender, education, income, occupations, race, and family size. These characteristics serve as the basis for most advertising strategies, and knowing them assists advertisers in message design and media selection for the target market.

Diff: 3 Page Ref: 132-135 Skill: Synthesis AACSB: Reflective thinking skills Objective: 5-1

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107) Name and describe the psychological influences that motivate consumers and why they are important to advertisers.

Answer: (1) Perception and State of Mind–Affects the way you perceive information as well as determines your particular pattern of consumer behavior. Your past experiences with a brand, as well as what your friends say about it, can color your feelings and make you more or less receptive to a brand message.

(2) Needs and Wants–Are two different responses that lead to different reactions to an advertising message. The basic driving forces that motivate us are needs. Some needs are innate and others are acquired. A want occurs when we desire or wish for something. A want can provide strong motivation to try or buy something new. Desire is the driving force behind demand.

(3) Motivations–An internal force that stimulates a person to behave in a particular manner, usually produced by tension caused by an unfulfilled need. Understanding buying motives is crucial to advertisers because the advertising message and the timing of the ad should coincide with the consumer's motivation priorities.

(4) Attitudes–Attitudes impact motivations, and they are learned, so we can establish them, change them, reinforce them, or replace them with new ones. Attitudes are important to advertisers because they influence how consumers evaluate products, institutions, retail stores, and advertising.

(5) Psychographics–Refers to lifestyle and psychological characteristics, such as attitudes, interest, and opinions. Advertisers use psychographics in order to understand fairly complex consumer pattern groupings. Knowing the psychographic orientation of consumers is a valuable asset to an advertiser in deciding to whom the messages should be targeted.

Diff: 3 Page Ref: 135-137 Skill: Synthesis AACSB: Reflective thinking skills Objective: 5-1

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108) Name and describe the behavioral influences on consumer decisions.

Answer: (1) Usage Behavior–Refers to how much of a product category or brand a customer buys. There are two ways to look at usage: usage rates and brand relationship. Usage rates refer to quantity of purchase: light, medium, or heavy. Because heavy users typically buy the most of a product category or a brand's share of the market, they are important to marketers and planners make special efforts to understand this key customer group. Brand relationship refers to past, present, or future use of the product by nonusers, ex-users, regulars, first-timers, loyal users, and users of and switchers from, or to, competitive products.

(2) Innovation and Adoption–The adoption process is identified in terms of the personal behavior of people and how their behavior reflects the speed with which they are willing to try something new. People are grouped based on these behaviors, such as innovators, early adopters, early majority, late majority, and laggards. Innovators and the early adopters categories are important groups for marketers launching new products.

(3) Experiences–People are interested in the experience of doing something like shopping that sometimes may be more important than what is bought. Decisions are often based on what was the experience with the brand–how well it performed, how easy it was to use, and how well customer service responded to questions.

Diff: 3 Page Ref: 148-150 Skill: Synthesis AACSB: Reflective thinking skills Objective: 5-2

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109) Define segmenting and targeting, and name and describe typical approaches to segmentation.

Answer: Segmenting means dividing the market into groups of people who have similar characteristics in certain key product-related areas. Targeting means identifying the group that might be the most profitable audience, the one most likely to respond to marketing communication. There are six approaches to segmentation: (1) Demographic Segmentation–Divides the market using characteristics such as gender, age, ethnicity, income, and so forth.

(2) Life Stage Segmentation–Based on the stage in consumers' life cycle, which includes such categories as children, young people living at home, college students, singles living on their own, couples, families with children, empty nesters, and senior singles living alone. Age is a characteristic of life stage, as is living situation. Discretionary income tends to vary with life stage.

(3) Geographic Segmentation–Uses location as a defining variable because consumers needs sometimes vary depending upon where they live. The most important variables are world or global, region, nation, state, city, climate, population density, and urban/rural character.

(4) Psychographic Segmentation–Primarily based on studies of how people spend their money, their patterns of work and leisure, their interest and opinions, and their views of themselves.

(5) Behavioral Segmentation–Divides people into groups based on product category and brand usage.

(6) Values and Benefits-based Segmentation–Based on consumers' needs or problems. The idea is that people buy products for different benefits they hope to derive.

Diff: 2 Page Ref: 137-139 Skill: Synthesis AACSB: Reflective thinking skills Objective: 5-2

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110) Name and describe the stages of the consumer decision process under a high-involvement purchase decision and the role advertising plays in each. How is this different under a lowinvolvement decision?

Answer: The stages of the consumer decision process under a high-involvement purchase decision are: (1) Need Recognition–Occurs when the consumer recognizes a need for a product. The goal of advertising at this stage is to activate or stimulate this need.

(2) Information Search–Can be casual or formal. Advertising helps the search process by providing information and making it easy to find and remember.

(3) Evaluation of Alternatives–The stage where consumers compare various products and features and reduce the list of options to a manageable number. Advertising is important in this process because it helps sort out products on the basis of tangible and intangible features.

(4) Purchase Decision–Often a two-part decision. Usually, we select the brand first and then select the outlet from which to buy it. Sometimes we select the outlet first, particularly with impulse purchases. In-store promotions such as packaging, point-of-purchase displays, price reductions, banners and signs, and coupon displays affect these choices.

(5) Postpurchase Evaluation–The point where we begin to reconsider and justify our purchases to ourselves. Many consumers continue to read information even after the purchase to justify the decision to themselves. Advertising, such as copy on package inserts, helps reduce the dissonance by pointing out key features, how to best use the product, or how many product users are satisfied.

The low-involvement decision process is similar, except the information search may be skipped and the evaluation of alternatives minimal.

Diff: 3 Page Ref: 150-151 Skill: Synthesis AACSB: Reflective thinking skills Objective: 5-3 111) Old Navy's "SuperModelquins" campaign features mock supermodels with celebrityworthy stories that are featured on TV and the Web. They've been featured in a flyer patterned after a celebrity magazine, have attended high-profile events, and have a presence on Twitter.

What type of influence on consumer decision making is this campaign attempting?

A) psychological B) cultural C) values D) benefits E) demographic Answer: B Diff: 3 Page Ref: 131 Skill: Application AACSB: Analytic skills Objective: 5-1

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112) Juan was born in Mexico but moved to the United States when he was five years old. His family is still close to relatives living in Mexico, and he lives in a neighborhood where most people speak Spanish, eat traditional Mexican dishes, wear traditional Mexican clothing, and listen to Mexican music. He remembers fondly his grandfather telling him stories of his home country's customs and heroes. All of these factors form the ________ that will influence Juan's consumer behavior.

A) social class B) family C) niche D) culture E) psychographics Answer: D Diff: 2 Page Ref: 132 Skill: Application AACSB: Multicultural and diversity understanding Objective: 5-1 113) Max is trying to get into a fraternity in college. Because he wants to be accepted by this group, he notices the brand of clothes they all seem to wear and the type of beer they drink at parties, and he does the same. Actually, he doesn't even like beer, but that seems to be what is expected of people in this fraternity. What influence does this fraternity represent with respect to Max's consumption behavior?

A) culture B) social class C) reference group D) family E) trend spotting Answer: C Diff: 2 Page Ref: 134 Skill: Application AACSB: Multicultural and diversity understanding Objective: 5-1 114) While many advertisers use celebrity endorsements, Old Navy's "SuperModelquins" campaign used mannequins as a(n) ________, playing with the idea that model mannequins can set fashion and appearance standards.

A) reference group B) social class C) ethnic group D) subculture E) family segment Answer: A Diff: 2 Page Ref: 134 Skill: Application AACSB: Analytic skills Objective: 5-1 32 .

115) Recently, an adventurous millionaire successfully made a dangerous climb in the Himalayas. This gentleman really has all of his basic needs satisfied, and he claims to do the things he does for self-fulfillment and enrichment. According to Maslow's Hierarchy of Needs, which need is this man satisfying?

A) physiological B) safety C) belongingness D) ego E) self-actualization Answer: E Diff: 2 Page Ref: 136 Skill: Application AACSB: Analytic skills Objective: 5-1 116) Barbara doesn't like to make major purchase decisions, such as choosing which car to buy.

However, she had to replace the old car she owned because it was no longer reliable, so she purchased a new Honda Accord. Although her entire family assisted in the purchase transaction and the salesperson was a close family friend and practically sold the car to her at cost, she is still concerned whether she made the right decision. Barbara is suffering from ________.

A) mass desire B) selective dissonance C) selective distortion D) cognitive dissonance E) selective exposure Answer: D Diff: 2 Page Ref: 136 Skill: Application AACSB: Analytic skills Objective: 5-2 117) Wholesome Soups, a maker of organic soups, is starting a new marketing campaign emphasizing the ease of preparing and eating Wholesome Soups on the go. Print, television, and Internet ads feature college-aged students enjoying Wholesome Soups in between classes and during study breaks. Wholesome Soups' new marketing campaign is most likely aimed at which of the following?

A) Baby Boomers B) the Me Generation C) Gen Xers D) Echo Boomers E) Generation Jones Answer: D Diff: 3 Page Ref: 140 Skill: Application AACSB: Reflective thinking skills Objective: 5-2 33 .

118) There is a trend in the United States toward rediscovering the flavor of regional cooking and the use of locally grown ingredients. People are choosing to spend hours in the kitchen using only the freshest ingredients to recreate local culinary traditions. This change in ________ is one of the reasons the number of farmers markets in the United States has increased by 70 percent in the last eight years.

A) needs B) demographics C) lifestyle D) segmenting E) life cycle Answer: C Diff: 2 Page Ref: 145 Skill: Application AACSB: Analytic skills Objective: 5-2 119) Cameron loves to know about and purchase the most up-to-date technological gadgets.

Among his friends, he is almost always the first to own the newest electronic product. Often the products that Cameron buys become adopted by large groups of consumers, but occasionally Cameron will purchase a product that is adopted by only a small portion of the population. To which of the following adopter groups does Cameron belong?

A) innovator B) loyal user C) early majority D) late majority E) laggards Answer: A Diff: 2 Page Ref: 149 Skill: Application AACSB: Analytic skills Objective: 5-2 120) Carol is conducting research and asking respondents to name the brands that first come to mind for certain product categories. When she asks Bob this question for computers, he mentions IBM, Dell, Gateway, and Hewlett-Packard. These brands represent Bob's ________.

A) evoked set B) considerate set C) purchase set D) reference group E) normative group Answer: A Diff: 2 Page Ref: 151 Skill: Application AACSB: Analytic skills Objective: 5-3

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121) An invitation to go skiing for the weekend forced Donna to look at her current wardrobe.

She decided she needed a much warmer coat. Donna was in which stage of the purchase decision?

A) product evaluation B) situational analysis C) need recognition D) problem screening E) information search Answer: C Diff: 2 Page Ref: 151 Skill: Application AACSB: Analytic skills Objective: 5-3 122) Lexus works to keep customers happy after each sale, aiming to delight the customer in order to gain a customer for life. In this pursuit, Lexus is focused on which step of the buyer decision process?

A) need recognition B) information search C) evaluation of alternatives D) purchase decision E) post-purchase evaluation Answer: E Diff: 2 Page Ref: 151 Skill: Application AACSB: Analytic skills Objective: 5-3 123) If baby boomers are predictors of where product and service demand will be, increased demands will most likely be evident in ________ in the upcoming years.

A) university enrollment B) beer and wine C) health care D) the apparel industry E) the automobile industry Answer: C Diff: 2 Page Ref: 140 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 5-2

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124) With an expected increase in ethnic diversity within the American population, marketers are most likely to place a greater emphasis on which of the following?

A) geographic segmentation B) differing advertising messages C) mass marketing D) "us and them" paradigms E) tiered markets Answer: B Diff: 2 Page Ref: 143 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 5-2 125) In an advertisement for a local carpet retailer, a well-known radio personality explained how the company solved his problem of replacing his old carpet. Toward what part of the consumer decision process was this ad aimed?

A) increase the chances consumers will pay attention to the commercial B) presenting the information in such a manner so that consumers will not distort it C) need recognition D) meeting the social needs of the target market E) appeal to the athletic segment Answer: C Diff: 2 Page Ref: 151 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 5-3 Refer to the following scenario to answer the questions below.

Monique and Bob Smith are married with two young children at home and a third away at college. They are also considering adopting another child. Monique is the primary shopper for her family. Every week, she goes shopping to buy products that she and her family need and want.

126) Though Monique doesn't eat them herself, she buys snack items for her children and is always looking for more nutritious snacks rather than mere junk food. In marketing terms, Monique is considered which type of consumer?

A) user B) business C) purchaser D) influencer E) trend setter Answer: C Diff: 2 Page Ref: 131 Skill: Application AACSB: Analytic skills Objective: 5-1 36 .

127) Bob and Monique only purchase cars produced by General Motors. They also attend General Motors car shows, own General Motors merchandise, and encourage their friends and family to buy exclusively from General Motors. Their devotion to General Motors indicates that Bob and Monique belong to a ________.

A) demographic B) social class C) reference group D) brand community E) corporate culture Answer: D Diff: 2 Page Ref: 134 Skill: Application AACSB: Reflective thinking skills Objective: 5-1 128) According to the U.S. Census, Monique, Bob, and the children are considered to be a ________.

A) target market B) family C) psychographic D) reference group E) subculture Answer: B Diff: 2 Page Ref: 135 Skill: Application AACSB: Analytic skills Objective: 5-1 129) Lex, Bob and Monique's oldest son who is away at college, lives with three other students in a house off-campus. According to the U.S. Census, Lex and the other students represent a ________.

A) target market B) family C) household D) reference group E) subculture Answer: C Diff: 2 Page Ref: 135 Skill: Application AACSB: Analytic skills Objective: 5-1

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130) After budgeting for the things that he has to pay for, such as his mortgage, car payments, insurance, food, and so forth, Bob figures they have $1,000 left each month to use for whatever they want. This $1,000 represents the Smith's ________ income.

A) net B) gross C) spendable D) discretionary E) left-over Answer: D Diff: 2 Page Ref: 143 Skill: Application AACSB: Analytic skills Objective: 5-2 131) Describe the three functions of reference groups.

Answer: Reference groups provide information, serve as a means of personal comparison, and offer guidance.

Diff: 3 Page Ref: 134 Skill: Synthesis AACSB: Reflective thinking skills Objective: 5-1 132) Many students in a junior high school wear the same style of shoes to school each day.

From the marketing perspective, why are these students conforming to a similar style?

Answer: Consumers often change their behavior to gain acceptance into a particular reference group. Students in this junior high school may want to feel as if they are the same as their fellow classmates, so they will wear the same style of shoes to be part of the group.

Diff: 3 Page Ref: 134 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 5-1 133) Compare and contrast the terms family and household.

Answer: According to the U.S. Census, a family consists of two or more people who are related by blood, marriage, or adoption, and live in the same household. A household differs from a family in that it consists of all those who occupy a dwelling whether they are related or not.

Therefore, a family is also a household, but a household is not necessarily a family.

Diff: 2 Page Ref: 135 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 5-1

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134) What is the difference between a consumer's need and a want?

Answer: An item a consumer needs is something the consumer thinks is essential or necessary for his life. An item that is a want is something that is desired but not essential.

Diff: 2 Page Ref: 135 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 5-1 135) For years, the U.S. Army has used an advertising campaign stressing that you can "Be all you can be." What type of need is addressed by this campaign?

Answer: It would appear that the army is appealing to its target audience's secondary, or acquired, needs for self-fulfillment and enriching experiences, that is, self-actualization, which represents the highest level of needs on Maslow's Hierarchy of Needs.

Diff: 3 Page Ref: 136 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 5-1 136) Miriam purchased a new car last month, but she continues to look at advertising for cars and notes how many other cars like hers are on the road. When a news article came out the other day indicating problems with the transmission noted by owners of her make of car, Miriam took that to mean that all types of cars in that class can have those problems, not just hers. She even sought out a Consumer Reports article that pointed out that the car she purchased was rated highly on reliability. What is Miriam experiencing?

Answer: Miriam is experiencing cognitive dissonance. According to the theory of cognitive dissonance, we tend to compensate or justify the discrepancies between what we actually received and what we thought we would receive. People engage in a variety of activities to reduce cognitive dissonance, including seeking out information that supports our decisions and ignoring and distorting information that does not.

Diff: 2 Page Ref: 136 Skill: Application AACSB: Analytic skills Objective: 5-1 137) Explain why the Hispanic culture is of great interest to marketers in the United States.

Answer: Few cultures are more important to U.S. marketing than the Hispanic culture because it is growing proportionately faster than other ethnic groups. There are media differences based on ethnicity, with Hispanic viewers tending to watch commercials in their entirety compared to nonHispanic viewers. They are also more likely to base purchase decisions on advertisements.

Diff: 2 Page Ref: 143 Skill: Synthesis AACSB: Multicultural and diversity understanding Objective: 5-2

39 .

138) How might geographic shifts in population impact marketers?

Answer: People in different regions buy differently. If tastes and preferences are taken with consumers as they disperse geographically at increasing rates, predicting specific consumption patterns in certain geographic areas may become difficult over time.

Diff: 2 Page Ref: 145 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 5-2 139) Why might marketers want to target segments of the population based on lifestyles rather than age groups?

Answer: Too much might be assumed about people in the same age group, and grouping people by lifestyle may eliminate some of the inaccurate assumptions made regarding age.

Diff: 3 Page Ref: 145-146 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 5-2 140) Explain how the VALS system categorizes consumers.

Answer: The VALS system categorizes consumers along two major dimensions: (1) resources and (2) innovation. Resources include income, education, self-confidence, and energy.

The difference between "Survivors" and "Innovators" is that "Survivors" have much lower resources than the "Innovators."

Diff: 2 Page Ref: 147 Skill: Synthesis AACSB: Reflective thinking skills Objective: 5-2 141) Ron is single and not a very good cook, so he eats a lot of pizza. In fact, he orders it sometimes five nights per week from his favorite pizza place, Pizza Hut. Why is Ron an important customer for Pizza Hut? Answer: A critical behavior predictor called usage refers to how much of a product category or brand a customer buys. There are two ways to look at usage: usage rates and brand relationship.

According to Ron's usage rate, he would most likely be classified as a heavy user. Heavy users typically buy the most of a product category or a brand's share of the market. There's a rule of thumb called the Pareto Rule that says 20 percent of the market typically buys 80 percent of the products. That explains why the heavy user category is so important to marketers and why planners will make special efforts to understand this key customer group.

Diff: 2 Page Ref: 149 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 5-2

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142) Why do retailers put several items, such as candy, batteries, small packages of facial tissue, coolers with individual bottles of soft drinks, and so forth right by the checkout?

Answer: These items are impulse items. Consumers seeing them while they are waiting to check out may realize they need, or at least want, an item, which is the first step of the consumer decision process.

Diff: 3 Page Ref: 151 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 5-3 143) Explain the role of marketers in the information search step of the consumer decisionmaking process. Give an example of how the marketer might execute this role.

Answer: The role of marketers in the information search step of the consumer decision-making process is to make the information consumers want and need about their product easily accessible by the consumer.

Diff: 3 Page Ref: 151 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 5-3 144) Kim, who is an avid cyclist, decided to buy a new bicycle. She searched the web for information on bikes and visited some bike shops. What is involved in the next step in her decision process if she follows the sequence in the text?

Answer: Kim is ready to evaluate alternatives, the stage in which Kim compares various brands and products and reduces the list of options to a manageable number. She needs to choose the attributes that are most important, then judge the alternatives accordingly.

Diff: 2 Page Ref: 151 Skill: Application AACSB: Analytic skills Objective: 5-3 145) Explain how marketers may be able to reduce postpurchase cognitive dissonance.

Answer: Marketers should make every effort to enhance after-sale communications, providing evidence and support to help consumers feel good about their purchases.

Diff: 2 Page Ref: 151 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 5-3

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146) Roger has decided to purchase a personal computer for his household's use, but he doesn't know much about computers and he really doesn't want to spend more than $1,000. How many stages of the consumer decision process is Roger likely to go through in making the decision regarding which computer to purchase?

Answer: Roger will probably go through all five stages of the high-involvement decision process.

Diff: 2 Page Ref: 151-152 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 5-3 147) Jan is leaving her present job in consumer marketing at a major consumer packaged goods manufacturer to start a new job with an industrial marketer. What are two things Jan should know about the differences between consumer decision making and business decision making?

Answer: Many of the influences that affect consumer buying also are reflected in business-tobusiness marketing. Although some of the consumer factors are relevant in business purchases, there are some differences as well. Some of the things students can discuss include: (1) In organizational buying, many individuals are involved in making the decision, often with a buying committee making the final decision.

(2) Although the business buyer may be motivated by both rational and emotional factors, the use of rational and quantitative criteria dominates most decisions.

(3) The decision is sometimes made based on a set of specifications to potential suppliers who then bid on the contract; typically the lowest bid wins.

(4) The decision may span a considerable time, creating a lag between the initial contact and final decision. On the other hand, once a decision is made, it may be in place for a long time and sometimes supported by a contract.

(5) Quality is hugely important and repeat purchases are based on how well the product performs.

(6) Personal selling is also important in B2B marketing, so advertising is used to open the door and generate leads for the sales force.

Diff: 2 Page Ref: 152 Skill: Synthesis AACSB: Analytic skills Objective: 5-3

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Read the following scenario and then answer the questions that follow.

A recent article in the Wall Street Journal described how the next "Pepsi Generation" likely will be drinking diet cola. Pepsi recently learned that one-third of teens were diet soda drinkers and that teens start drinking diet soft drinks at a very early age. However, they also acknowledged that a substantial portion of young people don't consider diet sodas cool, particularly men. The chief marketing officer for Pepsi-Cola North America was quoted as saying, "We are treating Diet Pepsi as the flagship brand. . . . It's a big step for us." Indeed, this is a major break with the traditional soft-drink marketing, in which the sugar-sweetened brand still dominates in market share. However, with concerns of rising obesity and schools cutting back on sugar-sweetened drinks in vending machines, soft-drink manufacturers, like Pepsi, are responding with increased marketing of their diet soft drinks. As part of this new change in focus, Diet Pepsi will be marketed as a hip, cool brand for everyone, including teenagers and Baby Boomers. Meanwhile, the article stated that Pepsi is narrowing its sales pitch for regular Pepsi-Cola to "soda drinkers younger than 25, Latinos, African-Americans, and sports fans."

148) By treating the diet soda market as relatively homogeneous, what marketing strategy is Pepsi using?

Answer: The strategy is the undifferentiated strategy.

Diff: 2 Page Ref: 137 Skill: Application AACSB: Analytic skills Objective: 5-2 149) What segmentation variables is Pepsi using when it narrows its marketing efforts for regular Pepsi-Cola to "soda drinkers younger than 25, Latinos, African- Americans, and sports fans"?

Answer: Age and ethnicity fall under demographic segmentation, and sports fans represent an interest, which would be psychographic segmentation.

Diff: 3 Page Ref: 138-139 Skill: Application AACSB: Analytic skills Objective: 5-2 150) It was also noted in the article that a substantial portion of young people don't consider diet sodas cool, particularly men. What is Pepsi trying to accomplish with its increased effort to reach these consumers?

Answer: Pepsi is trying to change their attitude toward diet sodas. Currently, a substantial portion of young people's attitudes toward this product are negative, and Pepsi would like to change that attitude. Attitudes are important to advertisers because they influence how consumers evaluate products.

Diff: 2 Page Ref: 145 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 5-2

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Advertising & IMC: Principles and Practice, 9e (Moriarty) Chapter 6 Strategic Research 1) ________ compiles information about the product, the product category, and other details of the marketing situation that will impact the development of advertising strategy.

A) Advertising research B) Market research C) Consumer research D) Strategic research E) Segmentation research Answer: B Diff: 1 Page Ref: 163 Skill: Concept Objective: 6-1 2) Which of the following is NOT a type of research used in planning advertising and marketing communication?

A) market research B) consumer research C) advertising research D) strategic research E) segmentation research Answer: E Diff: 2 Page Ref: 163 Skill: Concept Objective: 6-1 3) ________ identifies people who are in the market for a product in terms of their characteristics, attitudes, interests, and motivations.

A) Advertising research B) Market research C) Consumer research D) Strategic research E) Copy research Answer: C Diff: 1 Page Ref: 163 Skill: Concept Objective: 6-1

4) ________ focuses on message development research, media planning research, and evaluation, as well as information about competitors' advertising.

A) Advertising research B) Market research C) Consumer research D) Strategic research E) Copy research Answer: A Diff: 1 Page Ref: 163 Skill: Concept Objective: 6-1 5) ________ uncovers critical information that becomes the basis for strategic planning decisions for both marketing and marketing communication.

A) Segmentation research B) Market research C) Consumer research D) Strategic research E) Copy research Answer: D Diff: 1 Page Ref: 163 Skill: Concept Objective: 6-1 6) Background research that relies upon available published information about a topic is called ________.

A) strategic research B) quantitative research C) primary research D) secondary research E) qualitative research Answer: D Diff: 1 Page Ref: 164 Skill: Concept Objective: 6-1 7) Government organizations and trade associations are both sources of ________ data.

A) primary B) secondary C) ethnographic D) subscription E) unregulated Answer: B Diff: 2 Page Ref: 164 Skill: Concept Objective: 6-1

8) Radio Facts, published by the Radio Advertising Bureau, is an example of ________.

A) qualitative research B) primary information C) a trade association report that helps advertisers make better decisions D) a report developed by a secondary research supplier E) a government report that helps advertisers make better decisions Answer: C Diff: 2 Page Ref: 164 Skill: Concept Objective: 6-1 9) The Survey of Current Business from the U.S. Department of Commerce is an example of ________.

A) qualitative research B) primary information C) a trade association report that helps advertisers make better decisions D) a report developed by a secondary research supplier E) a government report that helps advertisers make better decisions Answer: E Diff: 2 Page Ref: 164 Skill: Concept Objective: 6-1 10) Lexis-Nexis and Dow Jones' Factiva are both examples of ________.

A) qualitative research suppliers B) primary research suppliers C) trade associations D) secondary research suppliers E) reports supplied by government agencies Answer: D Diff: 2 Page Ref: 164 Skill: Concept Objective: 6-1 11) Which of the following statements is FALSE regarding secondary research?

A) It is called secondary because it is information that has been collected and published by someone else.

B) Many statistics used by advertisers come from government census records on the population's size, geographic distribution, age, income, occupation, education, and ethnicity.

C) Secondary research found on the Internet is not valid.

D) Trade associations are a reliable source for secondary research.

E) Secondary research suppliers gather and organize information around specific topic areas for other interested parties.

Answer: C Diff: 2 Page Ref: 165 Skill: Concept AACSB: Use of information technology Objective: 6-1

12) Information that is collected for the first time from original sources is called ________.

A) market research B) quantitative research C) primary research D) secondary research E) government research Answer: C Diff: 1 Page Ref: 165 Skill: Concept Objective: 6-1 13) When companies do their own tracking and monitoring of their customers' behavior, which type of research are they conducting?

A) primary B) secondary C) supplier D) experimental E) sample Answer: A Diff: 2 Page Ref: 165 Skill: Concept Objective: 6-1 14) A. C. Nielsen is a large company that conducts research for clients. As the major supplier of program ratings in the television industry, it also monitors television viewing habits. These ratings are used by television networks and stations to determine the price of advertising time during a specific program. What type of research does A. C. Nielsen perform?

A) primary B) secondary C) qualitative D) experimental E) A, B, and C Answer: A Diff: 2 Page Ref: 165 Skill: Concept Objective: 6-1 15) Firms that specialize in interviewing, observing, recording, and analyzing the behavior of those who purchase or influence the purchase of a particular good or service are called ________.

A) secondary research suppliers B) primary research suppliers C) trade research suppliers D) advertising research suppliers E) certified research suppliers Answer: B Diff: 2 Page Ref: 165 Skill: Concept Objective: 6-1

16) Which of the following organizations surveys large samples of American consumers, asking questions about consumption, possession, and use of a wide range of products, services, and media?

A) Lexis-Nexis B) Off-the-Shelf Publications C) Dialog Information Services D) Dow Jones Factiva E) Simmons Market Research Bureau Answer: E Diff: 3 Page Ref: 165 Skill: Concept Objective: 6-1 17) ________ research provides insight into the underlying reasons for how consumers behave and why, using tools such as observation, ethnographic studies, in-depth interviews, and case studies.

A) Secondary B) Quantitative C) Qualitative D) Neural E) Experimental Answer: C Diff: 2 Page Ref: 167 Skill: Concept Objective: 6-1 18) Which of the following statements is true?

A) Primary research can be quantitative or qualitative, but not experimental.

B) Primary research can be quantitative, qualitative, or experimental.

C) Primary research is experimental, not qualitative or quantitative.

D) Primary research is qualitative, not quantitative or experimental.

E) Primary research is quantitative, not qualitative or experimental.

Answer: B Diff: 2 Page Ref: 167-168 Skill: Concept Objective: 6-1 19) ________ research delivers numerical data such as number of users and purchases, their attitudes and knowledge, their exposure to ads, and other market-related information.

A) Secondary B) Quantitative C) Qualitative D) Neural E) Experimental Answer: B Diff: 1 Page Ref: 167 Skill: Concept Objective: 6-1

20) What are the two primary characteristics of quantitative research?

A) large sample sizes and quota sampling B) small sample sizes and rich data C) primary and secondary data D) small sample sizes and consumer insights E) large sample sizes and random sampling Answer: E Diff: 2 Page Ref: 167 Skill: Concept Objective: 6-1 21) Experimental research is used to ________.

A) test hypotheses about cause-and-effect relationships B) gather preliminary information that will help define problems C) uncover information in an unstructured way D) describe marketing problems or situations E) quantify observations that produce insights unobtainable through other forms of research Answer: A Diff: 2 Page Ref: 168 Skill: Concept Objective: 5-4 22) ________ is formal research, such as surveys, in-depth interviews, observational methods, focus groups, and all types of primary and secondary data used to develop a marketing plan and, ultimately, provide information for an advertising plan.

A) Marketing research B) Media research C) Consumer insight research D) Semiotic analysis E) Concept testing Answer: A Diff: 2 Page Ref: 169 Skill: Concept Objective: 6-1 23) Which of the following is LEAST likely to be a benefit of conducting marketing research?

A) assessing market potential and market share B) understanding customer satisfaction and purchase behavior C) measuring the effectiveness of accounting practices D) measuring the effectiveness of promotion activities E) understanding customer motivation Answer: C Diff: 3 Page Ref: 169 Skill: Concept Objective: 6-1

24) ________ includes an assessment of a brand's role and performance in the marketplace, as well as an investigation of how people perceive brand personalities and images.

A) Competitive analysis B) Brand experience research C) Consumer insight research D) Media research E) Concept testing Answer: B Diff: 2 Page Ref: 169 Skill: Concept Objective: 6-1 25) When an agency gets a new client, the first thing the agency team should do is learn about the ________.

A) competition B) social media C) network of associations D) brand E) validity of previous research Answer: D Diff: 2 Page Ref: 169 Skill: Concept Objective: 6-1 26) When conducting a ________, the advertising planner will either formally or informally begin an assignment by collecting every possible piece of advertising and other form of marketing communication by the brand, as well as its competitors', and other relevant categories that may have lessons for the brand.

A) media audit B) semiotic analysis C) brand experience audit D) marketing communication audit E) competitive analysis Answer: D Diff: 2 Page Ref: 171 Skill: Concept Objective: 6-1 27) When conducting a(n) ________, account team members will buy and test other products in a brand's category.

A) media audit B) semiotic analysis C) association test D) marketing communication audit E) competitive analysis Answer: E Diff: 2 Page Ref: 171 Skill: Concept Objective: 6-1

28) A formal and systematic tabulation of competitors' approaches and strategies is known as a(n) ________.

A) content analysis B) semiotic analysis C) brand experience D) association test E) concept test Answer: A Diff: 1 Page Ref: 171 Skill: Concept Objective: 6-1 29) Which of the following best explains the goal of neuromarketers?

A) using subliminal messages to influence consumer decisions B) collecting data about responses to advertising and products by scanning consumers' brains C) observing and tracking consumer behavior on the Internet D) designing marketing research experiments using the Internet E) analyzing data from various sources to answer complex "what if" questions Answer: B Diff: 2 Page Ref: 172 Skill: Concept AACSB: Use of information technology Objective: 6-1 30) ________ research gathers information about all the possible media and marketing communication tools that might be used in a campaign to deliver a message.

A) Media B) Message development C) Consumer insight D) Competitive analysis E) Evaluation Answer: A Diff: 1 Page Ref: 173 Skill: Concept Objective: 6-1 31) Which of the following types of research is accurately described as a "work-in-progress" type of evaluation?

A) media research B) association testing C) semiotic analysis D) competitive analysis E) concept testing Answer: E Diff: 2 Page Ref: 173 Skill: Concept Objective: 6-1

32) ________ evaluates the relative power of various creative ideas, while ________ informs media selection.

A) Competitive analysis; content analysis B) Semiotic analysis; content analysis C) Concept testing; media research D) Competitive testing; copy testing E) Copy testing; semiotic analysis Answer: C Diff: 3 Page Ref: 173 Skill: Concept Objective: 6-1 33) The objective of ________ is to examine symbolism and signs in a message, uncovering layers and types of meanings that might be particular to different groups of customers.

A) content analysis B) semiotic analysis C) brand research D) association tests E) competitive analysis Answer: B Diff: 2 Page Ref: 173 Skill: Concept Objective: 6-1 34) ________ is research on a message execution in its finished stages but before it appears in media.

A) Insight research B) Copytesting C) Pretesting D) Message development research E) Semiotic analysis Answer: C Diff: 1 Page Ref: 174 Skill: Concept Objective: 6-1 35) Copytesting is also referred to as _______.

A) pretesting B) concept testing C) evaluative research D) media research E) semiotic analysis Answer: C Diff: 1 Page Ref: 174 Skill: Concept Objective: 6-1

36) Using ________, a researcher might page through a magazine with a respondent and ask whether the respondent remembers seeing a particular ad.

A) pretesting B) aided recognition C) unaided recognition D) media research E) semiotic analysis Answer: B Diff: 2 Page Ref: 174 Skill: Concept Objective: 6-1 37) Using ________, a researcher might ask a respondent what he or she remembers without using a magazine or other medium to refresh the respondent's memory.

A) pretesting B) aided recognition C) unaided recognition D) media research E) semiotic analysis Answer: C Diff: 2 Page Ref: 174 Skill: Concept Objective: 6-1 38) Which of the following is a way to contact consumers when conducting survey research?

A) in person B) by telephone C) by mail D) through the Internet E) all of the above Answer: E Diff: 1 Page Ref: 174 Skill: Concept AACSB: Communication abilities Objective: 6-2 39) ________ is a quantitative method that uses structured interviews to ask large numbers of people the same set of questions.

A) In-depth interviewing B) Survey research C) Focus group interviewing D) Observation research E) Ethnographic research Answer: B Diff: 1 Page Ref: 174 Skill: Concept Objective: 6-2

40) A subset of a population that is representative of the entire population is called a ________.

A) sample B) cohort C) subculture D) census E) subcensus Answer: A Diff: 1 Page Ref: 174 Skill: Concept Objective: 6-2 41) In a(n) ________ sample, each person in a population has an equal chance of being selected to be in the sample.

A) aided B) unaided C) random D) selected E) observed Answer: C Diff: 1 Page Ref: 175 Skill: Concept Objective: 6-2 42) Door-to-door interviews were the most common in which of the following decades?

A) 1960s B) 1970s C) 1980s D) 1990s E) 2000s Answer: A Diff: 2 Page Ref: 175 Skill: Concept Objective: 6-2 43) What is the primary difference between an interview and a survey?

A) An interview uses a representative sample, and a survey uses an entire population.

B) Surveys use a discussion guide that outlines the areas to be covered and tends to be very broad.

C) Interviews use close-ended questions.

D) Personal interviews are open-ended discussions among 8 to 10 people.

E) Interviews use more flexible questionnaires.

Answer: E Diff: 3 Page Ref: 176 Skill: Concept Objective: 6-2

44) A group of 8 to 10 users of a product who are brought together once to have a discussion about some topic such as the brand, the product category, or marketing communication is known as a(n) ________.

A) focus group B) focus panel C) survey group D) random sample E) ethnographic research sample Answer: A Diff: 2 Page Ref: 177 Skill: Concept Objective: 6-2 45) In which type of consumer research is the objective to get participants talking in a conversational format so researchers can observe the dialogue and interactions among the participants?

A) survey research B) focus groups C) in-depth interview D) observation research E) ethnographic research Answer: B Diff: 2 Page Ref: 177 Skill: Concept Objective: 6-2 46) Focus group interviewing is a(n) ________ research tool for gaining insights into consumer thoughts and feelings.

A) experimental B) secondary C) qualitatitve D) quantitative E) ethnographic Answer: C Diff: 2 Page Ref: 177 Skill: Concept Objective: 6-2 47) ________ focus groups are held in a comfortable setting, usually people's homes.

Participants in these groups have typically been recruited by the host.

A) Snowball B) Ethnographic C) Friendship D) Sample E) Unstructured Answer: C Diff: 2 Page Ref: 178 Skill: Concept Objective: 6-2

48) Which of the following practices involves aggregating the wisdom of Internet users in a type of digital brainstorming?

A) focus group interviewing B) ethnographic observing C) crowdsourcing D) expert panel interviewing E) consumer research panel interviewing Answer: C Diff: 2 Page Ref: 178 Skill: Concept AACSB: Use of information technology Objective: 6-2 49) ________ is a type of data collection in which the researcher simply records the consumer's behaviors.

A) Crowdsourcing B) Observation C) Surveying D) Focus group interviewing E) Neuromarketing Answer: B Diff: 2 Page Ref: 180 Skill: Concept Objective: 6-2 50) Using ________, researchers go into authentic consumer environments to record the behavior of consumers without actually participating in the lives of the consumers.

A) focus groups B) ethnographic research C) friendship groups D) observation research E) survey research Answer: D Diff: 2 Page Ref: 180 Skill: Concept Objective: 6-2 51) ________ involves the researcher living the lives of the people being studied.

A) Focus group research B) Ethnographic research C) Friendship group research D) Quantitative research E) Survey research Answer: B Diff: 1 Page Ref: 181 Skill: Concept Objective: 6-2

52) Ethnographic research ________.

A) comes from traditional focus groups B) is gathered where people live and work C) provides secondary data D) comes from diaries E) provides data to marketers when observation is impossible Answer: B Diff: 2 Page Ref: 181 Skill: Concept Objective: 6-2 53) Which of the following is true of ethnographic research?

A) It is a type of experimental research.

B) It combines anthropology and marketing.

C) It is a traditional quantitative research approach.

D) It can be conducted online but not in person.

E) It is typically used to answer well-defined product or strategy questions.

Answer: B Diff: 3 Page Ref: 181 Skill: Concept Objective: 6-2 54) Which method would a marketing communication researcher most likely use to obtain information that people are unwilling or unable to provide?

A) observational B) survey C) questionnaire D) focus group E) personal interview Answer: A Diff: 3 Page Ref: 181 Skill: Concept AACSB: Communication abilities Objective: 6-2 55) Marketers sometimes ask consumers to record their activities and thoughts through the use of ________.

A) surveys B) focus groups C) diaries D) monitors E) purpose-driven games Answer: C Diff: 2 Page Ref: 181 Skill: Concept Objective: 6-2

56) Which of the following is most likely to tell media planners exactly what programs and ads consumers watched?

A) panels B) diaries C) story elicitations D) focus groups E) purpose-driven games Answer: B Diff: 2 Page Ref: 181 Skill: Concept Objective: 6-2 57) Which of the following is NOT a projective technique researchers used to get insight about people's relationships with the brands they buy?

A) fill-in-the-blanks B) meaning creation C) purpose-driven games D) story elicitation E) photo sorts Answer: B Diff: 2 Page Ref: 182-183 Skill: Concept Objective: 6-2 58) Which projective technique is a form of attitude research in which people fill in the blanks in a story or balloons in a cartoon?

A) fill-in-the-blanks B) meaning creation C) purpose-driven games D) story elicitation E) photo sorts Answer: A Diff: 1 Page Ref: 182 Skill: Concept Objective: 6-2 59) Which projective technique do researchers use to see how people solve problems and search for information?

A) fill-in-the-blanks B) meaning creation C) purpose-driven games D) story elicitation E) photo sorts Answer: C Diff: 2 Page Ref: 182 Skill: Concept Objective: 6-2

60) Which projective technique asks consumers to explain the artifacts in their lives, such as photos in their homes and treasured objects?

A) fill-in-the-blanks B) artifact creation C) purpose-driven games D) story elicitation E) photo sorts Answer: D Diff: 2 Page Ref: 182 Skill: Concept Objective: 6-2 61) Which projective technique uses such ideas as life collages, day mapping, and the construction of instruction books as ways to elicit stories that discuss brands and their roles in daily life?

A) theater techniques B) photo sorts C) metaphors D) artifact creation E) story elicitation Answer: D Diff: 2 Page Ref: 182 Skill: Concept Objective: 6-2 62) Which projective technique involves asking consumers to visually record something with a camera, such as a shopping trip, and then later reviewing those visuals and asking consumers to explain what they were thinking or doing?

A) fill-in-the-blanks B) photo elicitation C) purpose-driven games D) story elicitation E) photo sorts Answer: B Diff: 2 Page Ref: 182 Skill: Concept Objective: 6-2

63) Which projective technique involves asking consumers to sort through a deck of photos and pick out visuals that represent something, such as typical users of the product or situations in which the product might be used?

A) fill-in-the-blanks B) photo elicitation C) purpose-driven games D) story elicitation E) photo sorts Answer: E Diff: 2 Page Ref: 183 Skill: Concept Objective: 6-2 64) Which projective technique attempts to gain insight into how people perceive brands by examining the link between concepts?

A) meaning creating B) metaphors C) purpose-driven games D) panel groups E) focus interviewing Answer: B Diff: 2 Page Ref: 183 Skill: Concept AACSB: Communication abilities Objective: 6-2 65) ________ means that the research actually measures what it says it measures.

A) Metaphor B) Reliability C) Validity D) Criteria E) Quality Answer: C Diff: 1 Page Ref: 183 Skill: Concept Objective: 6-2 66) ________ means that you can run the same test again and get the same answer.

A) Metaphor B) Reliability C) Validity D) Criteria E) Quality Answer: B Diff: 1 Page Ref: 183 Skill: Concept Objective: 6-2

67) Which of the following is a way to increase the reliability of the research?

A) Select a sample that truly represents its population.

B) Use sample sizes larger than 200.

C) Test hypotheses.

D) Only conduct qualitative research.

E) Rely on focus groups and in-depth interviews.

Answer: A Diff: 3 Page Ref: 183 Skill: Concept Objective: 6-2 68) ________ methods are more useful for gathering data (e.g., how many do this or believe that?), and ________ methods are better at uncovering reasons and motives (e.g., why do they do or believe?).

A) Qualitative; quantitative B) Primary; secondary C) Secondary; primary D) Reliable; valid E) Quantitative; qualitative Answer: E Diff: 3 Page Ref: 183 Skill: Concept Objective: 6-2 69) Which of the following is false regarding key challenges facing advertising researchers?

A) A problem with respect to globalization is cross-cultural communication and how to arrive at an intended message without cultural distortions or insensitivities.

B) Call centers can be used as research centers.

C) Strategic consistency in IMC planning suggests that different audiences should receive the same message.

D) Marketing communication messages should be tested for cultural sensitivity.

E) Whenever a call is made, for whatever purpose, that contact provides an opportunity to ask a brand-related question.

Answer: C Diff: 3 Page Ref: 184 Skill: Concept Objective: 6-3 70) In which type of research are research methods built into real purchase and use situations?

A) embedded research B) virtual research C) secondary research D) content analysis E) semiotic research Answer: A Diff: 2 Page Ref: 184 Skill: Concept Objective: 6-3

71) IMC research uncovers critical information that becomes the basis for strategic planning decisions.

Answer: FALSE Diff: 2 Page Ref: 163 Skill: Concept Objective: 6-1 72) Secondary research is information that has been collected and published by someone else.

Answer: TRUE Diff: 1 Page Ref: 164 Skill: Concept Objective: 6-1 73) Secondary research is less important than primary research.

Answer: FALSE Diff: 2 Page Ref: 164 Skill: Concept Objective: 6-1 74) Firms that specialize in interviewing, observing, recording, and analyzing the behavior of those who purchase or influence the purchase of a particular good or service are called primary research suppliers.

Answer: TRUE Diff: 2 Page Ref: 165 Skill: Concept Objective: 6-1 75) Both SMRB and MRI conduct and report original research that is intended primarily for use in media planning.

Answer: TRUE Diff: 3 Page Ref: 165 Skill: Concept Objective: 6-1 76) Marketers who want insight into the underlying reasons for how consumers behave and why should conduct qualitative research.

Answer: TRUE Diff: 2 Page Ref: 167 Skill: Concept Objective: 6-1 77) Qualitative research should be used to draw conclusions about the larger population.

Answer: FALSE Diff: 2 Page Ref: 167 Skill: Concept Objective: 6-1

78) Experimental research uses formal hypothesis-testing techniques.

Answer: TRUE Diff: 1 Page Ref: 168 Skill: Concept Objective: 6-1 79) Marketing research is informal research.

Answer: FALSE Diff: 3 Page Ref: 169 Skill: Concept Objective: 6-1 80) Insight research may uncover why a consumer wants to buy a product or why a consumer does not want to buy a product.

Answer: TRUE Diff: 2 Page Ref: 172 Skill: Concept Objective: 6-1 81) Media planning begins with media research that gathers information about all possible media and marketing communication tools that might be used in a campaign to deliver a message.

Answer: FALSE Diff: 3 Page Ref: 173 Skill: Concept Objective: 6-1 82) Research used to evaluate the relative power of various creative ideas before the launch of a product is called copy testing.

Answer: FALSE Diff: 2 Page Ref: 173 Skill: Concept Objective: 6-1 83) Copy testing is a way to take apart the signs and symbols in a message to uncover layers and types of meanings.

Answer: FALSE Diff: 2 Page Ref: 173 Skill: Concept AACSB: Communication abilities Objective: 6-1 84) Survey research is a quantitative method that can be conducted in person, by phone, by mail, or online.

Answer: TRUE Diff: 1 Page Ref: 174 Skill: Concept AACSB: Communication abilities Objective: 6-2

85) Ideally, a sample should be representative so that the researcher can make accurate estimates of the thoughts and behaviors of the larger population.

Answer: TRUE Diff: 2 Page Ref: 174 Skill: Concept Objective: 6-2 86) Focus groups use no interviewer to bias the answers, may produce more honest answers, and can be used to collect large amounts of data at a low cost per respondent.

Answer: FALSE Diff: 3 Page Ref: 177 Skill: Concept Objective: 6-2 87) The most important issue facing online researchers is the growing digital divide.

Answer: FALSE Diff: 3 Page Ref: 177 Skill: Concept AACSB: Use of information technology Objective: 6-2 88) Focus groups should be used only in the background research step of the message development process.

Answer: FALSE Diff: 2 Page Ref: 178 Skill: Concept Objective: 6-2 89) Formal focus groups take place in a comfortable setting, usually people's homes, where the participants have been recruited by the host.

Answer: FALSE Diff: 2 Page Ref: 178 Skill: Concept Objective: 6-2 90) Psychographic research involves the researcher participating in the lives of the people being studied.

Answer: FALSE Diff: 2 Page Ref: 181 Skill: Concept Objective: 6-2 91) Focus groups have the advantage of revealing what people actually do, as distinguished from what they say they do.

Answer: FALSE Diff: 2 Page Ref: 181 Skill: Concept Objective: 6-2

92) Researchers use beeper diaries as a way to randomize the recording of consumer activities.

Answer: TRUE Diff: 2 Page Ref: 181 Skill: Concept AACSB: Use of information technology Objective: 6-2 93) A form of attitude research in which people fill in the blanks in a story or balloons in a cartoon is known as metaphor investigation.

Answer: FALSE Diff: 2 Page Ref: 182 Skill: Concept Objective: 6-2 94) Sculpting techniques involve physically putting product users in static positions that reflect how they think about or use a brand.

Answer: TRUE Diff: 2 Page Ref: 182 Skill: Concept Objective: 6-2 95) In the qualitative research method called photo elicitation, consumers are asked to sort through a deck of photos and pick out visuals that represent something, such as typical users of the product or situations in which it might be used.

Answer: FALSE Diff: 2 Page Ref: 182 Skill: Concept Objective: 6-2 96) A metaphor says one thing a brand, for example is like something else.

Answer: FALSE Diff: 2 Page Ref: 183 Skill: Concept AACSB: Communication abilities Objective: 6-2 97) The two basic research criteria of validity and reliability are drawn from the scientific method.

Answer: TRUE Diff: 2 Page Ref: 183 Skill: Concept Objective: 6-2 98) Reliability means that the research actually measures what it says it measures.

Answer: FALSE Diff: 1 Page Ref: 183 Skill: Concept Objective: 6-2

99) In research terms, reliability means that any differences that are uncovered by the research, such as different attitudes or purchasing patterns, really reflect differences among individuals, groups, or situations.

Answer: FALSE Diff: 2 Page Ref: 183 Skill: Concept Objective: 6-2 100) A problem facing global advertisers is cross-cultural communication and how to arrive at an intended message without cultural distortions or insensitivities.

Answer: TRUE Diff: 2 Page Ref: 184 Skill: Concept AACSB: Multicultural and diversity understanding Objective: 6-3 101) A researcher investigating the amount of food waste in the typical four-person family plans to sift through the garbage of a small sample of representative families. This method is an example of a survey.

Answer: FALSE Diff: 2 Page Ref: 174 Skill: Application AACSB: Analytic skills Objective: 6-2 102) Custom online communities such as the Adidas Insider community organized by Adidas allow marketers to address the problem of controlling who is in an online sample.

Answer: TRUE Diff: 2 Page Ref: 178 Skill: Application AACSB: Use of information technology Objective: 6-2 103) As a part of a research team, Fatima observed five groups of teenagers shop, socialize, and eat dinner at a local mall. Fatima was participating in traditional quantitative research.

Answer: FALSE Diff: 2 Page Ref: 180 Skill: Application AACSB: Analytic skills Objective: 6-2 104) Quantitative research is more useful than qualitative research.

Answer: FALSE Diff: 3 Page Ref: 183 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 6-2

105) Sora is a teenager who loves to shop for clothes. She has a points card from Trend Town, her favorite shop. Sora's card is scanned each time she makes a purchase at Trend Town, and the more she uses the card, the more special offers she receives from the shop. Data from Sora's card can be used in embedded feedback research.

Answer: TRUE Diff: 2 Page Ref: 184 Skill: Application AACSB: Analytic skills Objective: 6-3 106) Compare and contrast primary and secondary research and provide examples of sources for each.

Answer: Information that is collected for the first time from original sources is called primary research. Companies do their own tracking and monitoring of their customers' behavior and they also hire research firms to do this research. Firms that specialize in interviewing, observing, recording, and analyzing the behavior of those who purchase or influence the purchase of a particular good or service are called primary research suppliers, such as A. C. Nielsen.

Background research that uses available published information about a topic is called secondary research. It's called secondary because it is information that has been collected and published by someone else. Many secondary information sources are available to advertisers, including government organizations, trade associations, secondary research suppliers, and the Internet.

Diff: 3 Page Ref: 164-165 Skill: Synthesis AACSB: Reflective thinking skills Objective: 6-1 107) Explain the differences among market research, consumer research, advertising research, IMC research, and strategic research.

Answer: Market research compiles information about the product category and other details of the marketing situation that will impact the development of advertising strategy. Consumer research is used to identify people who are in the market for the product in terms of their characteristics, attitudes, interests, and motivations. Ultimately this information is used to decide who should be the targeted audience for the advertising. In an integrated marketing communication (IMC) plan, the consumer research expands to acquire information about all the relevant stakeholders. Advertising research focuses on all the elements of advertising, including message development research, media planning research, and evaluation, as well as information about competitors' advertising. IMC research is similar except it is used to assemble information needed in planning the use of a variety of marketing communication tools. Strategic research uncovers critical information that becomes the basis for strategic planning decisions. In advertising, it covers all the factors and steps that lead to the creation of message strategies and media plans.

Diff: 3 Page Ref: 163 Skill: Synthesis AACSB: Reflective thinking skills Objective: 6-1

108) Compare and contrast quantitative and qualitative research, and discuss uses of each.

Answer: Qualitative research provides insight into the underlying reasons for how consumers behave and why. Common methods include observation, ethnographic studies, in-depth interviews, and case studies. Qualitative methods are used early in the process of developing an advertising plan or message strategy for generating insights, as well as questions and hypotheses for additional research. They are also good at confirming hunches, ruling out bad approaches and questionable or confusing ideas, and giving direction to the message strategy. Because qualitative research is typically done with small groups, advertisers are not able to draw conclusions about or project their findings to the larger population.

Quantitative research delivers numerical data such as number of users and purchasers, their attitudes and knowledge, their exposure to ads, and other market-related information. It also provides information on reactions to advertising and motivation to purchase. Two primary characteristics of quantitative research are large sample sizes and random sampling. The most common quantitative research methods include surveys and studies that track such things as sales and opinions. In contrast to qualitative research, quantitative research is usually designed to either accurately count something, such as sales levels, or to predict something, such as attitudes.

In sum, qualitative research should not be used to draw conclusions, which is the province of quantitative research, but instead to better understand a market and generate hypotheses that we can test with quantitative methods.

Diff: 2 Page Ref: 167 Skill: Synthesis AACSB: Reflective thinking skills Objective: 6-1

109) Describe five ways research is used in marketing communication planning.

Answer: Research has several uses in marketing communication planning, including but not limited to the following: Market Information Marketing research is formal research, such as surveys, in-depth interviews, observational methods, focus groups, and all types of primary and secondary data used to develop a marketing plan and an advertising plan. A subset of marketing research known as market research is used to gather information about a particular market. Market information, then, includes everything a planner can uncover about consumer perceptions of the brand, product category, and competitors' brands. Brand information includes an assessment of the brand's role and performance in the marketplace. This research also investigates how people perceive brand personalities and images.

Consumer Insight Research Both the creative team and the media planners need to know as much as they can, in as much depth and detail as possible, about the people they are trying to reach. The objective of most consumer research is to puzzle out the key consumer insight that will help move the target audience to respond to the message.

Media Research Media research gathers information about all the possible media and marketing communication tools that might be used in a campaign to deliver a message. Media researchers then match that information to what is known about the target audience.

Message Development As planners, account managers, and people on the creative team begin the development of an advertisement, they involve themselves in various types of informal and formal research. They read all the relevant secondary information provided by the client and the planners to become better informed about the brand, the company, the competition, and the product category. Furthermore, as writers and art directors begin working on a specific creative project, they almost always conduct at least some informal research of their own. Concept testing is used in the development of message strategy to evaluate the relative power of various creative ideas.

Evaluation Research Evaluative research, called copytesting, is done during and after a campaign to determine the relative effectiveness of various approaches to the sales message.

Diff: 3 Page Ref: 169-174 Skill: Synthesis AACSB: Reflective thinking skills Objective: 6-1

110) You work in an advertising agency and have been tasked with recommending some imaginative ways to investigate consumers' relationships with the brands they buy. Briefly describe four of the more imaginative qualitative methods discussed in the chapter.

Answer: There are several projective techniques researchers can use to develop insights about people's relationships with the brands they buy, including the following: (1) Fill-in-the-Blanks–A form of attitude research in which people fill in the blanks in a story or balloons in a cartoon. Their perceptions will sometimes come to the surface in the words they use to describe the action or situations depicted in the visuals.

(2) Purpose-Driven Games–Used to see how people solve problems and search for information.

Games can make the research experience more fun and involving for the participants. It uncovers problem-solving strategies that may mirror consumers' approach to information searching or the kinds of problems they deal with in certain product situations.

(3) Story Elicitation–Consumers are asked to explain the artifacts of their lives. These stories can provide insights into how and why people use or do things.

(4) Artifact Creation–Uses such ideas as life collages, day mapping, and the construction of instruction books as ways to elicit stories that discuss brands and their role in daily life.

(5) Photo Elicitation–Similar to artifacts, visuals can be used to elicit consumer thoughts and opinions. Sometimes consumers are asked to look at a set of visuals or they are instructed to visually record something with a camera, such as a shopping trip. Later, in reviewing the visuals, they are asked what the photo brings to mind or to explain what they were thinking or doing at the time.

(6) Photo Sorts–Consumers are asked to sort through a deck of photos and pick out visuals that represent something, such as typical users of the product or situations where it might be used.

(7) Metaphors–Can enrich the language consumers use to talk about brands. A metaphor says one thing–a brand, for example–is something else. The insight into how people perceive brands through such connections comes from exploring the link between the two concepts.

Diff: 3 Page Ref: 182-183 Skill: Synthesis AACSB: Reflective thinking skills Objective: 6-2 111) Every few years, the Association of National Advertisers conducts a study on how national advertisers compensate advertising agencies that plan, develop, and execute their advertising campaigns. A national advertiser uses this data to determine how it should compensate its advertising agency. From the perspective of the national advertiser, what type of research is this?

A) primary B) qualitative C) secondary D) organizational E) marketing communication Answer: C Diff: 2 Page Ref: 164 Skill: Application AACSB: Reflective thinking skills Objective: 6-1

112) Kraft wanted to understand how consumers decide which brand of cheese to purchase while they are shopping at a grocery store, so the company hired a research firm that observed consumers as they made their selection in the store. Which type of research does this represent?

A) quantitative B) qualitative C) secondary D) ethnographic E) survey Answer: B Diff: 2 Page Ref: 167 Skill: Application AACSB: Analytic skills Objective: 6-1 113) Sam wants to understand consumers' perceptions of his company's products, so he conducts a survey to assess their attitudes toward his brands as well as their intention to purchase them.

What type of research does this represent?

A) quantitative B) qualitative C) secondary D) ethnographic E) in-depth research Answer: A Diff: 2 Page Ref: 167 Skill: Application AACSB: Analytic skills Objective: 6-1 114) A report from Mediamark Research, Inc. (MRI) uses all of the following characteristics to report the TV-viewing habits of consumers EXCEPT which one?

A) age B) size of household C) age of children D) type of TV program E) religion Answer: E Diff: 3 Page Ref: 166 Skill: Application AACSB: Analytic skills Objective: 6-1

115) You are about to test the hypothesis that sales of your product will increase at a very similar rate at either a $5 drop in unit price or a $7 drop in unit price. You are involved in what type of research?

A) exploratory B) qualitative C) experimental D) focus group E) ethnographic Answer: C Diff: 2 Page Ref: 168 Skill: Application AACSB: Analytic skills Objective: 6-1 116) The advertising that launched General Motors' OnStar GPS system used a Batman theme.

Looking at the commercial in terms of signs and symbols, it is possible to discover the obvious and hidden meanings of the message. For instance, the "bat beacon" becomes the OnStar for the average person who wants to have the wonderful technology toys Batman had. This is an example of ________.

A) consumer insight research B) semiotic analysis C) aided recognition D) quantitative research E) unaided recognition Answer: B Diff: 2 Page Ref: 173 Skill: Application AACSB: Analytic skills Objective: 6-1 117) V-8, a brand of vegetable juice, wanted to determine if viewers understood the health benefit message the company was trying to convey in television commercials. V-8 conducted research in which consumers were brought to a research center to view a pilot television show in which the V-8 ad appeared. Several other ads appeared during the 30-minute television program, and after viewing the show, participants were given a survey regarding their attitudes toward all of the ads they had seen. Five different groups saw the same program and ads, except the V-8 ad was different for each group. What type of research is this?

A) secondary B) concept testing C) semiotic research D) association testing E) panel Answer: B Diff: 2 Page Ref: 173 Skill: Application AACSB: Analytic skills Objective: 6-1

118) You want to find out whether Americans between 21 and 40 years of age tend to vote Democratic and whether Americans between 41 and 70 tend to vote Republican. You will most likely use ________ to collect your data.

A) ethnographic research B) observational research C) survey research D) experimental research E) projective techniques Answer: C Diff: 2 Page Ref: 174 Skill: Application AACSB: Reflective thinking skills Objective: 6-2 119) You have decided to use only open-end questions on your survey. Which of the following questions would NOT be found on your survey?

A) Why is voting important to you?

B) How many cars does your family own?

C) What is your best childhood memory?

D) Where did you spend your last vacation?

E) What are the most important qualities in a friend?

Answer: B Diff: 3 Page Ref: 176 Skill: Application AACSB: Analytic skills Objective: 6-2 120) Wal-Mart sends a trained observer to watch and interact with customers as they shop in a Wal-Mart store. This is an example of ________.

A) secondary research B) survey research C) ethnographic research D) experimental research E) projective research Answer: C Diff: 2 Page Ref: 181 Skill: Application AACSB: Analytic skills Objective: 6-2

121) Maria was participating in a research study in which she was asked to take pictures with her camera phone while she was shopping. After recording her trip with pictures, she was asked to explain what she was thinking or doing at the time a given photo was taken. Which qualitative research method is this?

A) metaphors B) story elicitation C) photo elicitation D) photo sorts E) meaning creation Answer: C Diff: 2 Page Ref: 182 Skill: Application AACSB: Reflective thinking skills Objective: 6-2 122) Malaya Ramirez is organizing marketing research in Central American countries for a large American corporation that is interested in expanding its market. The survey Malaya is using was written in English and then translated into Spanish for use by Spanish-speaking respondents.

Which of the following is it most important for Malaya to do before administering this questionnaire to a sample of the market?

A) make sure that the survey includes both open-end and closed-end questions B) decide whether to focus on primary or secondary data C) determine which type of research instrument to use D) examine the questionnaire for cultural distortions and insensitivities E) determine whether to focus on qualitative or experimental objectives Answer: D Diff: 2 Page Ref: 184 Skill: Application AACSB: Analytic skills Objective: 6-3 123) A research study about Coca-Cola used ________, asking respondents to make a collage of images that capture their feelings about the brand.

A) theater techniques B) metaphors C) secondary demographic research D) purpose-driven games E) artifact creation Answer: E Diff: 2 Page Ref: 182 Skill: Application AACSB: Analytic skills Objective: 6-2

124) Which form of data below can usually be obtained more quickly and at a lower cost than the others?

A) primary B) survey research C) experimental research D) secondary E) ethnographic research Answer: D Diff: 2 Page Ref: 165-166 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 6-1 125) Which of the following survey contact methods is generally the LEAST flexible?

A) mail B) telephone C) Internet surveys D) online panels E) personal Answer: A Diff: 2 Page Ref: 176 Skill: Synthesis AACSB: Reflective thinking skills Objective: 6-2 126) Scott works in the marketing department of a national insurance company. He conducted a focus group interview in which 10 consumers discussed their attitudes toward purchasing longterm disability insurance. Based on this research, Scott concluded that most people think this insurance is not necessary because they feel that they will always be able to work and would be wasting their money on such expensive insurance. Which of the following statements is true regarding this situation?

A) Scott can feel confident that what he learned in this research is representative of the perceptions held by the rest of the consumer population that makes up the target market for this product.

B) Scott should really conduct one more focus group interview with a different group of consumers before making any generalizations about the general public.

C) Scott should have conducted survey research before he conducted the focus group interview.

D) Scott should conduct quantitative research that further investigates insights uncovered during the focus group interview.

E) Focus groups are the only type of qualitative research from which reliable conclusions can be drawn.

Answer: D Diff: 3 Page Ref: 183 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 6-3

Use the scenario below to answer the following questions.

Mike works in the marketing department of a consumer packaged goods manufacturer. His primary responsibility is the marketing of a new brand of cereal that is targeted to women. The cereal includes extra calcium and soy to help women avoid osteoporosis, a disease that weakens bones later in life and primarily affects women. Much research was conducted before this product was developed, but more is necessary to develop a marketing communication campaign.

Mike is working with an advertising agency to develop the marketing communication campaign.

127) Before the advertising agency created any advertising for this new brand of cereal, people working on the account started reading everything they could find on the product, company, industry, and competition. This is known as ________ research.

A) primary B) secondary C) qualitative D) experimental E) quantitative Answer: B Diff: 2 Page Ref: 164 Skill: Application AACSB: Analytic skills Objective: 6-1 128) The initial research Mike conducted was used to identify women who are in the market for cereals with these benefits in terms of their characteristics, attitudes, interests, and motivation.

What type of research did Mike conduct?

A) brand experience research B) consumer insight research C) marketing communication research D) message development research E) evaluation research Answer: B Diff: 2 Page Ref: 172 Skill: Application AACSB: Analytic skills Objective: 6-1

129) The advertising agency team members used research to help develop the message strategy.

They conducted in-depth interviews with several women who were representative of the client's target market and asked them to evaluate the relative power of various creative ideas. This type of research is known as ________.

A) consumer insight research B) aided recognition C) semiotic analysis D) concept testing E) copy testing Answer: D Diff: 2 Page Ref: 173 Skill: Application AACSB: Analytic skills Objective: 6-1 130) The advertising agency also analyzed all media that is relevant to the client's target market.

Not surprisingly, they found that women they wanted to reach with the advertising were heavy readers of health-related magazines, such as Prevention and Health. However, they also found that these women were also heavy readers of shelter magazines, such as Better Homes and Gardens and House Beautiful. What kind of research did the agency conduct?

A) concept testing B) consumer insight C) media D) message development E) evaluation research Answer: C Diff: 2 Page Ref: 173 Skill: Application AACSB: Analytic skills Objective: 6-1 131) Mark owns his own advertising agency and just won a new client's account. Discuss two sources of secondary research that might be of use to him as he conducts strategic research.

Answer: There are several sources of secondary research that students can discuss: Government Organizations–Many of the statistics provided come from census records on the population's size, geographic distribution, age, income, occupation, education, and ethnicity.

Trade Associations–Many industries support trade associations that gather and distribute information of interest to association members.

Secondary Research Suppliers–These independent researchers gather and organize existing information around specific topic areas or other interested parties.

Secondary Information on the Internet–For any given company, you're bound to find a web site where you can learn about the company's history and philosophy of doing business, check out its complete product line, and discover who runs the company.

Diff: 2 Page Ref: 164-165 Skill: Synthesis AACSB: Reflective thinking skills Objective: 6-1

132) Jones and Smith Advertising Agency is in the early process of developing an advertising plan for one of its new clients, a regional soft-drink manufacturer. What type of research would you recommend Jones and Smith conduct at this stage of the process?

Answer: Students can go a number of different directions in answering this question, but should focus on the importance of secondary research and qualitative research at the beginning of the research process.

Diff: 2 Page Ref: 164-165 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 6-1 133) You want to determine whether no-smoking policies have impacted employee morale in the United States in the past two decades. Are any secondary data likely available? Why? Answer: Yes, there are likely to be several studies conducted from which the researcher could extract information because many companies have implemented no-smoking policies in the past twenty years.

Diff: 3 Page Ref: 164 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 6-1 134) You want to determine whether no-smoking policies have impacted employee morale in the United States among workers in companies that employ fewer than 50 workers in Fort Wayne, Indiana. Are any secondary data likely available? Why? Answer: Because the data sought are so specific, there will likely not be much, if any, data that specifically answer the question.

Diff: 3 Page Ref: 165 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 6-1 135) Identify and describe two web sites advertisers can use for research.

Answer: Answers may include the following: BrandEra (www.brandera.com) offers information by product category.

Market Perceptions (http://marketperceptions.com) represents a research company that specializes in health care research. The site has information about its focus group capabilities.

Forrester Research (www.forrester.com) provides industry research into technology markets.

Greenbook.org (www.greenbook.org) is a worldwide directory of marketing research focus group suppliers.

Cluetrain (www.cluetrain.com) publishes new ways to find and share innovative marketing information and ideas.

Diff: 3 Page Ref: 165 Skill: Application AACSB: Use of information technology Objective: 6-1

136) Describe the kind of information an advertiser can gain from Mediamark Research, Inc. (MRI).

Answer: Mediamark Research, Inc. conducts its own original research and publishes its findings, which are available to clients, such as advertisers. An MRI subscriber can select a consumer target and ask for information on all other products and services and all the media that members of the target segment use. The resulting profile provides a vivid and detailed description of the target as a person, which is what information agency creative teams need to help them envision their audiences. Another example of the kind of information advertisers can gain from MRI are the types of TV programs adults aged 18 to 34 watch, broken down into four market segments based on size of household and age of children.

Diff: 3 Page Ref: 165-166 Skill: Synthesis AACSB: Reflective thinking skills Objective: 6-1 137) Explain why qualitative or experimental research would be the best method for determining whether shoppers in the Midwest are more sensitive to a price increase for laundry soap than shoppers on the East Coast are.

Answer: Experimental research would be most important because it investigates cause-andeffect relationships; it would allow the researcher to test a hypothesis about price sensitivity and compare the differences in the two geographic regions.

Diff: 3 Page Ref: 168 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 6-1 138) Jill is part of the creative team in the advertising agency developing the message for a client's account. Her job is to conduct tests to evaluate the relative power of various creative ideas. What is this type of test called?

Answer: The test is known as concept testing.

Diff: 2 Page Ref: 173 Skill: Application AACSB: Analytic skills Objective: 6-1 139) Josh was told to conduct in-depth interviews with consumers to gain a better understanding of their perceptions and feelings toward his company's brand of facial tissue. He has only had experience conducting survey research and is not sure what an in-depth interview actually is.

Explain what it is, how it's different from survey research, and how it's done.

Answer: An in-depth interview is a qualitative method conducted one-on-one using open-ended questions that require respondents to generate their own answers. The primary difference between an interview and a survey is the interview's use of an unstructured questionnaire.

Interviews use a discussion guide that outlines the areas to be covered during the session.

Interviews are considered qualitative because they typically use smaller sample sizes than surveys and their results are not generalizable and subject to statistical tests.

Diff: 2 Page Ref: 176 Skill: Synthesis AACSB: Reflective thinking skills Objective: 6-2

140) Madeleine needs to conduct a focus group interview to get consumers' reactions to various advertising ideas. However, she does not have much time and she needs more in-depth responses than she normally gets from a typical focus group interview. What would you recommend Madeleine do to meet her needs?

Answer: One alternative to a typical focus group is to use a friendship focus group, which uses a comfortable setting, usually people's homes, where the participants have been recruited by the host. This approach is designed to break down barriers and save time in getting to more in-depth responses.

Diff: 2 Page Ref: 178 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 6-2 141) Cover Girl is a brand of cosmetics that can be purchased in major discount stores, drug stores, and grocery stores. One of Cover Girl's largest target markets is college-aged women, and the company wants to get a first-hand understanding of how this market purchases and uses cosmetics on a daily basis. What type of research would be best at getting at this level of understanding?

Answer: Several qualitative research methods, such as focus group interviews, in-depth interviews, and observation research could provide this insight. However, ethnographic research, which involves the researcher in living the lives of the people being studied, might provide even better insight. Perhaps Cover Girl can have a researcher become a college student living in a dormitory, sorority, or apartment with other college women to study the meanings, language, interaction, and behavior of the target market. This method is particularly good at deriving a picture of a day in the life of a typical consumer.

Diff: 3 Page Ref: 176-178 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 6-2 142) A marketer of frozen dinners has decided to collect consumer feedback via a focus group interview. How might the marketer use the focus group interview to determine whether peas or green beans should be included with the turkey entrée?

Answer: The group might be given a prepared meal with both vegetable options. Afterward, the marketer can obtain fresh feedback from the respondents or through observation. The marketer could assess respondents' reactions and facial expressions while they eat provided meals.

Diff: 2 Page Ref: 177-178 Skill: Synthesis AACSB: Reflective thinking skills Objective: 6-2 143) You are trying to determine whether retired people drink more coffee at McDonald's during lunch than they do during dinner. Why is observation research NOT effective in this scenario?

Answer: It is difficult to determine, just by looking, whether people are retired.

Diff: 3 Page Ref: 180 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 6-2

144) You are conducting research and want to make sure that it adheres to the scientific method.

Discuss the two basic research criteria you need to be concerned about.

Answer: The two basic research criteria are validity and reliability. Validity means that the research actually measures what it says it measures. Reliability means that you can run the same test again and get the same answer.

Diff: 2 Page Ref: 183 Skill: Synthesis AACSB: Reflective thinking skills Objective: 6-2 145) Discuss a major issue that global researchers face.

Answer: In-depth understanding of the economic and cultural conditions, government regulations, and communications media of each country is more important than ever before. The biggest problem is cross-cultural communication and how to arrive at an intended message without cultural distortions or insensitivities.

Diff: 2 Page Ref: 184 Skill: Synthesis AACSB: Reflective thinking skills Objective: 6-3 146) Explain how researchers are using embedded research.

Answer: Research methods can be embedded directly into real purchase and use situations, so that the consumer is a recipient and direct beneficiary of the information. Call centers can be used as research centers to gain real-time feedback about the brand and its marketing and advertising strategies. For example, whenever a call is made for whatever purpose (either inbound or outbound), that contact provides an opportunity to ask a brand-related question.

Diff: 2 Page Ref: 184 Skill: Synthesis AACSB: Reflective thinking skills Objective: 6-3

Refer to the following scenario to answer the questions below.

Kraft markets several consumer packaged goods products as well as appliances, such as coffeemakers, and wants to get a better understanding of its target market and how competing products are advertised. Kraft's agency of record has conducted extensive research for them as well as purchased information from research suppliers. They are also conducting background research as well as using some imaginative qualitative methods to better understand Kraft's target market.

147) Name and describe some of the primary and secondary research suppliers that Kraft and its agencies might have purchased information from.

Answer: A. C. Nielsen, Simmons Market Research Bureau (SMRB), and Mediamark Research, Inc. (MRI) were discussed in this chapter. A. C. Nielsen will conduct primary research, but it is also a secondary research supplier (e.g., television ratings). SMRB and MRI survey large samples of American consumers (approximately 30,000 for each survey) and ask questions about the consumption, possession, or use of a wide range of products, services, and media.

Diff: 3 Page Ref: 165 Skill: Application AACSB: Analytic skills Objective: 6-1 148) One of Kraft's research projects had the objective of understanding competitors' advertisements. Name and describe the purpose of this type of background research.

Answer: A marketing communication audit might include only informal summaries of the slogans, appeals, and images used most often, or it might include a more formal and systematic tabulation of competitors' approaches and strategies called a content analysis. By disclosing competitors' strategies and tactics, analysis of the content of competitive advertisements provides clues to how competitors are thinking and suggests ways to develop new and more effective campaigns.

Diff: 2 Page Ref: 171 Skill: Synthesis AACSB: Reflective thinking skills Objective: 6-2 149) If Kraft wants to understand the deeper meanings consumers derive from competitors' advertising, what type of research do you suggest and why?

Answer: Semiotic analysis is a way to take apart the signs and symbols in a message to uncover layers and types of meanings. The objective is to find deeper meanings in the symbolism and meanings, particularly as they relate to different groups of consumers.

Diff: 2 Page Ref: 173 Skill: Synthesis AACSB: Reflective thinking skills Objective: 6-1

150) One research study used the Zaltman Metaphor Elicitation Technique (ZMET) for the Kraft boxed macaroni and cheese product. Kraft learned that its brand of boxed macaroni and cheese generated feelings of fun and love, not just feelings of nutrition and fulfillment. Explain how Kraft, using this technique, uncovered this information.

Answer: The ZMET uses metaphors and visual images to uncover patterns in people's thinking.

Respondents could have been asked to collect pictures that captured their feelings about Kraft's product from magazines, catalogs, or other printed materials. Then they might have discussed the images in personal interviews. Finally, participants could have been asked to create a summary image and record a statement that explained its meaning.

Diff: 3 Page Ref: 183 Skill: Synthesis AACSB: Reflective thinking skills Objective: 6-2

Advertising & IMC: Principles and Practice, 9e (Moriarty) Chapter 7 Strategic Planning 1) ________ is the process of identifying a problem, determining objectives, deciding upon strategies, and implementing tactics.

A) Insight mining B) Situation analysis C) Strategic research D) Strategic planning E) Marketing research Answer: D Diff: 1 Page Ref: 190 Skill: Concept Objective: 7-1 2) ________ are goals to be accomplished with a strategic plan.

A) Strategies B) Objectives C) Tactics D) Motives E) Needs Answer: B Diff: 1 Page Ref: 190 Skill: Concept Objective: 7-1 3) ________ are concerned with how to accomplish objectives outlined in a strategic plan.

A) Strategies B) Needs C) Tactics D) Motives E) Insights Answer: A Diff: 1 Page Ref: 190 Skill: Concept Objective: 7-1 4) ________ are the actions that make the strategic plan come to life.

A) Strategies B) Objectives C) Tactics D) Motives E) Insights Answer: C Diff: 1 Page Ref: 190 Skill: Concept Objective: 7-1 1 .

5) Strategic planning is a three-tiered process that starts with the ________.

A) marketing plan B) initial investment C) business plan D) advertising plan E) SWOT analysis Answer: C Diff: 2 Page Ref: 191 Skill: Concept Objective: 7-1 6) A strategic business unit is ________.

A) a line of products B) all of the offerings under a single brand name C) a functional department of a company D) both A and B E) all of the above Answer: D Diff: 2 Page Ref: 191 Skill: Concept Objective: 7-1 7) Which concept is a measurement that shows whether, in general, the costs of conducting the business are more than matched by the revenue produced in return?

A) SWOT B) SBU C) IMC D) the 4 Ps E) ROI Answer: E Diff: 2 Page Ref: 191 Skill: Concept Objective: 7-1 8) The objectives for planning at the ________ level tend to focus on maximizing profit and return on investment.

A) advertising planning B) IMC planning C) marketing planning D) tactical planning E) business planning Answer: E Diff: 2 Page Ref: 191 Skill: Concept Objective: 7-1

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9) For most organizations, strategic planning starts with ________.

A) formulating a business mission statement B) identifying the target market C) determining the required return-on-investment D) conducting an internal and external environment analysis E) creating the marketing mix Answer: A Diff: 2 Page Ref: 192 Skill: Concept Objective: 7-1 10) A(n) ________ assesses the external and internal environments that affect marketing operations.

A) market situation analysis B) point-in-time analysis C) strategic business unit analysis D) mission statement E) action plan Answer: A Diff: 2 Page Ref: 193 Skill: Concept Objective: 7-1 11) Adam is assisting in the development of his company's marketing plan, and he has been assigned to assess the external and internal environments that affect the marketing operations. He will be looking at the company's history, products, and brands, as well as the competitive environment, consumer trends, and other marketplace trends that affect the product category.

What type of analysis is Adam conducting?

A) business analysis B) competitive analysis C) internal/external analysis D) market situation analysis E) category analysis Answer: D Diff: 2 Page Ref: 193 Skill: Concept Objective: 7-1

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12) The percentage of the category purchases that are made by the brand's customers is known as ________.

A) customer equity B) return-on-investment C) share of market D) share of voice E) customer value Answer: C Diff: 1 Page Ref: 193 Skill: Concept Objective: 7-1 13) What is the most important part of the marketing plan for advertising managers?

A) business objectives B) business mission statement C) marketing mix strategy D) evaluation and control E) situation analysis Answer: C Diff: 2 Page Ref: 193 Skill: Concept Objective: 7-1 14) A(n) ________ plan is more tightly focused on solving a particular marketing communication problem than an annual marketing plan is.

A) business B) IMC C) corporate D) campaign E) strategic Answer: D Diff: 1 Page Ref: 194 Skill: Concept Objective: 7-2 15) The practice of ________ involves mobilizing a digital crowd to provide collective intelligence in the marketing analysis process.

A) SWOT analysis B) tactical formulation C) insight mining D) crowdsourcing E) synergy Answer: D Diff: 1 Page Ref: 194 Skill: Concept AACSB: Use of information technology Objective: 7-2 4 .

16) In which section of a typical campaign plan are media objectives, media selection, media budget allocations, and media scheduling determined?

A) situation analysis B) key strategic decisions C) media strategy D) message strategy E) campaign management Answer: C Diff: 2 Page Ref: 194 Skill: Concept Objective: 7-2 17) In which section of a typical campaign plan are the advertising objectives, the target audience, and the brand position specified?

A) situation analysis B) key strategic decisions C) media strategy D) message strategy E) campaign management Answer: B Diff: 2 Page Ref: 194 Skill: Concept Objective: 7-2 18) In which section of a typical campaign plan are key consumer insights, the selling premise, and the big idea detailed?

A) situation analysis B) key strategic decisions C) media strategy D) message strategy E) campaign management Answer: D Diff: 2 Page Ref: 196 Skill: Concept Objective: 7-2 19) Which step of campaign planning details the process by which the effectiveness of the campaign is determined?

A) situation analysis B) key strategic decisions C) media strategy D) message strategy E) campaign management Answer: E Diff: 2 Page Ref: 196 Skill: Concept Objective: 7-2 5 .

20) In a SWOT analysis, strengths and weaknesses are ________, and opportunities and threats are ________.

A) primary; secondary B) internal; external C) secondary; primary D) external; internal E) long-term; short-term Answer: B Diff: 2 Page Ref: 196 Skill: Concept Objective: 7-2 21) In a SWOT analysis, a(n) ________ is an area in which the company could develop an advantage over its competition.

A) win B) weakness C) opportunity D) threat E) leverage Answer: C Diff: 2 Page Ref: 196 Skill: Concept Objective: 7-2 22) In a SWOT analysis, a(n) ________ is a positive trait or condition.

A) strength B) win C) opportunity D) threat E) leverage Answer: A Diff: 2 Page Ref: 196 Skill: Concept Objective: 7-2 23) In a SWOT analysis, a(n) ________ is a trend or development in the environment that will erode business unless the company takes action.

A) strength B) weakness C) opportunity D) threat E) leverage Answer: D Diff: 2 Page Ref: 196 Skill: Concept Objective: 7-2 6 .

24) In a SWOT analysis, a(n) ________ of a business is a trait, condition, or situation that is perceived as negative.

A) strength B) weakness C) opportunity D) threat E) leverage Answer: B Diff: 2 Page Ref: 196 Skill: Concept Objective: 7-2 25) What kind of problems can advertising solve?

A) quality B) price C) perception D) availability E) all of the above Answer: C Diff: 2 Page Ref: 197 Skill: Concept Objective: 7-2 26) Which of the following is the most accurate statement about brand loyalty?

A) To create brand loyalty, an advertising campaign must have both cognitive and rational effects.

B) To create brand loyalty, an advertising campaign must have both cognitive and affective effects.

C) To create brand loyalty, an advertising campaign must have both affective and emotional effects.

D) To create brand loyalty, an advertising campaign must have both perceptive and associative effects.

E) To create brand loyalty, an advertising campaign must have both perceptive and emotional effects.

Answer: B Diff: 3 Page Ref: 199 Skill: Concept Objective: 7-2

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27) Which type of advertising objective is most closely associated with the Facets Model of Effects category of perception?

A) cue the psychological appeal B) create awareness C) stimulate desire D) stimulate trial E) connect to positive brand experiences Answer: B Diff: 2 Page Ref: 199 Skill: Concept Objective: 7-2 28) Which type of advertising objective is most closely associated with the Facets Model of Effects category of emotion?

A) cue the psychological appeal B) create awareness C) stimulate desire D) establish the brand position E) connect to positive brand experiences Answer: A Diff: 2 Page Ref: 199 Skill: Concept Objective: 7-2 29) Which type of advertising objective is most closely associated with the Facets Model of Effects category of cognition?

A) cue the psychological appeal B) create awareness C) stimulate desire D) establish the brand position E) connect to positive brand experiences Answer: D Diff: 2 Page Ref: 199 Skill: Concept Objective: 7-2 30) To ________ an objective, a planner uses a comparable effort, such as a similar product or prior brand campaign, to predict a logical goal.

A) target B) differentiate C) segment D) position E) benchmark Answer: E Diff: 1 Page Ref: 199 Skill: Concept Objective: 7-2 8 .

31) Which of the following is NOT a requirement for a measurable objective?

A) a specific effect that can be measured B) a time frame C) a baseline D) percentage change E) a hypothesis Answer: E Diff: 2 Page Ref: 199 Skill: Concept Objective: 7-2 32) Establishing in the consumer's mind what a brand offers and how it compares with the competition is ________.

A) benchmarking B) targeting C) segmenting D) positioning E) attributing Answer: D Diff: 1 Page Ref: 202 Skill: Concept Objective: 7-2 33) Which of the following is a tangible product feature?

A) quality B) status C) value D) ease of use E) fashion Answer: D Diff: 2 Page Ref: 202 Skill: Concept Objective: 7-2 34) Which strategy is designed to focus attention on product differences that are important to consumers and that distinguish the company's product from its competitors?

A) product differentiation B) segmentation C) feature analysis D) benchmarking E) targeting Answer: A Diff: 1 Page Ref: 202 Skill: Concept Objective: 7-2

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35) Products that really are the same, such as milk, unleaded gas, and over-the-counter drugs, are referred to as ________ products.

A) generic B) differentiated C) parity D) unpositioned E) positioned Answer: C Diff: 2 Page Ref: 202 Skill: Concept Objective: 7-2 36) Which type of analysis involves making a chart of a company's product and competitors' products, listing each product's relevant features, evaluating how well the product and the competitors' products perform on that feature, and then evaluating how important each feature is to the target audience?

A) situation analysis B) segmentation analysis C) feature analysis D) differential analysis E) market situation analysis Answer: C Diff: 1 Page Ref: 204 Skill: Concept Objective: 7-2 37) ________ is found where the product has a strong feature in an area that is important to the target and the competition is weaker.

A) Position B) Competitive advantage C) Differentiation D) Segmentation E) Brand equity Answer: B Diff: 1 Page Ref: 204 Skill: Concept Objective: 7-2

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38) What do planners use to compare positions of competitors?

A) brand matrix B) situation matrix C) differential map D) perceptual map E) SWOT map Answer: D Diff: 1 Page Ref: 205 Skill: Concept Objective: 7-2 39) Advertising shapes the position of a brand, but what anchors it in target consumers' minds?

A) personal experiences B) price C) distribution D) publicity E) sales promotions Answer: A Diff: 3 Page Ref: 205 Skill: Concept AACSB: Communication abilities Objective: 7-2 40) As described in "A Matter of Principle," what objective did 7-Up have when it wanted to reposition its product in 1967?

A) to pick up the green 7-Up bottle in consumers' minds and move it to where Pepsi and Coke are B) to penetrate the British consumer market C) to change the perception that 7-Up was too expensive D) to change the perception that 7-Up was unhealthy E) to capture a large share of the family market soft drink expenditures Answer: A Diff: 2 Page Ref: 206 Skill: Concept Objective: 7-1 41) ________ use reasons to persuade consumers whereas ________ build an image for a brand and touch consumers' emotions.

A) Hard-sell approaches; soft-sell approaches B) Soft-sell approaches; hard-sell approaches C) Benefit position approaches; usage approaches D) Category approaches; competitors' approaches E) Usage approaches; benefit approaches Answer: A Diff: 2 Page Ref: 206 Skill: Concept Objective: 7-1 11 .

42) Which of the following refers to the amount customers spend on a brand?

A) return on investment B) share of wallet C) share of mind D) value position E) share of voice Answer: B Diff: 1 Page Ref: 206 Skill: Concept Objective: 7-1 43) Which of the following is NOT a common advertising budgeting method?

A) historical method B) objective-task method C) consumer insight method D) percentage-of-sales method E) all you can afford Answer: C Diff: 2 Page Ref: 209 Skill: Concept Objective: 7-2 44) Which advertising budgeting method simply bases the annual budget on last year's budget, with a percentage increase for inflation or some other marketplace factor?

A) historical method B) objective-task method C) competitive budgets D) percentage-of-sales method E) all you can afford Answer: A Diff: 2 Page Ref: 209 Skill: Concept Objective: 7-2 45) Which advertising budgeting method involves developing the budget from the ground up, with objectives as the starting point?

A) historical method B) objective-task method C) competitive budgets D) percentage-of-sales method E) all you can afford Answer: B Diff: 1 Page Ref: 209 Skill: Concept Objective: 7-2

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46) Which advertising budgeting method compares the total sales with the total advertising budget during the previous year or the average of several years to compute a percentage?

A) historical method B) objective-task method C) competitive budgets D) percentage-of-sales method E) all you can afford Answer: D Diff: 2 Page Ref: 209 Skill: Concept Objective: 7-2 47) Which advertising budgeting method uses competitors' budgets as benchmarks and relates the amount invested in advertising to the product's share of market?

A) historical method B) benchmarking method C) competitive budgets D) percentage-of-sales method E) comparative budgets Answer: C Diff: 2 Page Ref: 209 Skill: Concept Objective: 7-2 48) Which concept represents the advertiser's media presence?

A) share of advertising voice B) share of mind C) market share D) competitive share E) percent of sales Answer: A Diff: 2 Page Ref: 209 Skill: Concept Objective: 7-2 49) ________ is the research-and-analysis process used to gain knowledge and understanding of the consumer that is expressed as a key consumer insight into how people relate to a brand or product.

A) Account planning B) Advertising planning C) Consumer planning D) Message planning E) Media planning Answer: A Diff: 1 Page Ref: 210 Skill: Concept Objective: 7-3 13 .

50) In an advertising agency, who is responsible for researching a brand and its customer relationships in order to devise advertising message strategies that are effective in addressing consumer needs and wants?

A) account manager B) account planner C) media director D) creative director E) research director Answer: B Diff: 1 Page Ref: 210 Skill: Concept Objective: 7-3 51) Who in an advertising agency is most accurately described as "speaking for the consumer" or "speaking with the voice of the consumer"?

A) account manager B) account planner C) media director D) creative director E) research director Answer: B Diff: 2 Page Ref: 211 Skill: Concept Objective: 7-3 52) Which of the following is NOT typically a responsibility of an account planner?

A) understanding the meaning of the brand B) articulating communication strategies C) evaluating the effectiveness of the communication in terms of how the target reacts to it D) preparing creative briefs based on an understanding of the consumer and the brand E) deciding the pricing strategy of the brand Answer: E Diff: 2 Page Ref: 211 Skill: Concept Objective: 7-3 53) What is at the core of all account planning?

A) consumer research B) pricing plans C) hard-sell approaches D) soft-sell approaches E) distribution management Answer: A Diff: 2 Page Ref: 211 Skill: Concept Objective: 7-3 14 .

54) Which of the following tasks of an account planner has been described as "peering into nooks and crannies without losing sight of the big picture in order to identify a key insight that can transform a client's business"?

A) big idea generating B) critical thinking C) creative thinking D) insight mining E) insight communicating Answer: D Diff: 2 Page Ref: 213 Skill: Concept Objective: 7-3 55) The outcome of strategic research usually reaches agency creative departments in the form of a strategy document called a ________.

A) communication brief B) situation analysis C) business plan D) marketing plan E) competitive brief Answer: A Diff: 1 Page Ref: 214 Skill: Concept Objective: 7-3 56) Which of the following explains the consumer insight and summarizes the basic strategy decisions?

A) creative brief B) research brief C) business plan D) IMC plan E) competitive brief Answer: A Diff: 2 Page Ref: 214 Skill: Concept Objective: 7-3 57) Which of the following is NOT included in a communication brief?

A) proposition or selling idea B) problem C) target audience D) brand imperatives E) sales force objectives Answer: E Diff: 2 Page Ref: 214-215 Skill: Concept Objective: 7-3 15 .

58) Which component of a communication brief details the brand's essence, personality, and image?

A) communication objectives B) problem C) target audience D) brand imperatives E) support Answer: D Diff: 2 Page Ref: 215 Skill: Concept Objective: 7-3 59) Which component of a communication brief states the single-minded thought that the communication will bring to life in a provocative way?

A) communication objective B) consumer insight C) creative direction D) brand imperative E) proposition or selling idea Answer: E Diff: 2 Page Ref: 215 Skill: Concept Objective: 7-3 60) Which component of a communication brief provides the reason to believe the proposition?

A) brand position B) support C) creative direction D) brand imperative E) proposition or selling idea Answer: B Diff: 2 Page Ref: 215 Skill: Concept Objective: 7-3 61) Which of the following most accurately states the difference between an advertising plan and an IMC plan?

A) the time frame of the plan B) the amount of research conducted to develop the plan C) the scope of the plan and the variety of marketing communication areas involved in the effort D) the formality of the plan E) the message Answer: C Diff: 2 Page Ref: 216 Skill: Concept Objective: 7-4 16 .

62) Which of the following does NOT represent an area where an IMC plan is different from an advertising plan?

A) stakeholders B) time frame C) contact points D) objectives E) internal marketing Answer: B Diff: 3 Page Ref: 216-217 Skill: Concept Objective: 7-4 63) ________ refers to any group of people who have a stake in the success of a company or a brand.

A) Shareholder B) Stakeholder C) Contact point D) Target group E) Market segment Answer: B Diff: 1 Page Ref: 216 Skill: Concept Objective: 7-4 64) Typical objectives for which marketing communication area include increasing sales, attracting attention at selection point, delivering product information, and creating a brand reminder?

A) public relations B) direct marketing C) packaging D) specialties E) sponsorship Answer: C Diff: 2 Page Ref: 216 Skill: Concept Objective: 7-4 65) Which of the following is NOT a typical objective for public relations?

A) encourage repeat purchase B) announce news C) affect attitudes and opinions D) maximize credibility and likeability E) create and improve stakeholder relationships Answer: A Diff: 2 Page Ref: 216 Skill: Concept Objective: 7-4 17 .

66) Which of the following is a typical objective of consumer sales promotion?

A) announce news B) build industry acceptance C) push through the channel D) create pull through the channel E) create brand experience Answer: D Diff: 3 Page Ref: 216 Skill: Concept Objective: 7-4 67) Support from employees for marketing, advertising, and marketing communication programs is managed through an activity called ________.

A) public relations B) community building C) internal marketing D) internal targeting E) service management Answer: C Diff: 2 Page Ref: 217 Skill: Concept Objective: 7-4 68) Employees, customers, shareholders, and elected officials are all examples of a company's ________.

A) communities B) segments C) partners D) stakeholders E) investors Answer: D Diff: 2 Page Ref: 217 Skill: Concept Objective: 7-4 69) ________ are all the ways and places where a person can come into contact with a brand.

A) Target points B) Contact points C) IMC points D) Brand experiences E) Brand images Answer: B Diff: 1 Page Ref: 218 Skill: Concept Objective: 7-4

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70) According to the concept of ________, messages should vary with the interest of the stakeholder but the brand strategy should remain the same.

A) segmentation B) competitive advantage C) strategic consistency D) brand personality E) psychological positioning Answer: C Diff: 1 Page Ref: 218 Skill: Concept AACSB: Communication abilities Objective: 7-4 71) Market planning is the process of determining objectives, deciding on strategies, and implementing the tactics to occur within a specified time frame.

Answer: FALSE Diff: 2 Page Ref: 190 Skill: Concept Objective: 7-1 72) Marketing planning follows business planning.

Answer: TRUE Diff: 2 Page Ref: 191 Skill: Concept Objective: 7-1 73) A business plan may cover a specific division of the company or a strategic business unit.

Answer: TRUE Diff: 2 Page Ref: 191 Skill: Concept Objective: 7-1 74) A business mission statement should be a concise expression of the broad goals and policies of the business unit.

Answer: TRUE Diff: 1 Page Ref: 192 Skill: Concept Objective: 7-1 75) A market situation analysis assesses the external and internal environments that affect the marketing operations.

Answer: TRUE Diff: 2 Page Ref: 193 Skill: Concept Objective: 7-1

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76) The objectives at the marketing level tend to be focused on return-on-investment.

Answer: FALSE Diff: 2 Page Ref: 193 Skill: Concept Objective: 7-1 77) The marketing mix strategy includes decisions about the target market, brand position, product design and performance, pricing, distribution, and marketing communication.

Answer: TRUE Diff: 2 Page Ref: 193 Skill: Concept Objective: 7-1 78) A typical advertising or IMC plan includes a situation analysis, key strategic decisions, media strategy, message strategy, and campaign management.

Answer: TRUE Diff: 2 Page Ref: 194-196 Skill: Concept Objective: 7-2 79) The situation analysis of a typical advertising or IMC plan includes background research, a SWOT analysis, and key advertising problems to be solved.

Answer: TRUE Diff: 2 Page Ref: 194 Skill: Concept Objective: 7-2 80) Key strategic decisions in a typical advertising plan include media objectives, media vehicle selection and budget allocation, media scheduling, and key consumer insight development.

Answer: FALSE Diff: 2 Page Ref: 194 Skill: Concept Objective: 7-2 81) In strategic planning, the idea is to leverage the strengths and opportunities and to avoid the weaknesses and threats.

Answer: FALSE Diff: 2 Page Ref: 196 Skill: Concept AACSB: Communication abilities Objective: 7-2

20 .

82) Advertising planners must analyze the market situation for any communication problems that affect the successful marketing of a product, as well as opportunities that advertising can create or exploit.

Answer: TRUE Diff: 2 Page Ref: 197 Skill: Concept AACSB: Communication abilities Objective: 7-2 83) Advertising can affect the way consumers perceive price, availability, and quality, but it cannot solve problems related to the price of the product, availability, or quality.

Answer: TRUE Diff: 2 Page Ref: 197 Skill: Concept AACSB: Communication abilities Objective: 7-2 84) The advertiser's basic assumption is that advertising works if it creates an impression, influences people to respond, and separates the brand from the competition.

Answer: TRUE Diff: 2 Page Ref: 197 Skill: Concept AACSB: Communication abilities Objective: 7-2 85) Benchmarking refers to using a comparable effort to predict a logical goal.

Answer: TRUE Diff: 2 Page Ref: 199 Skill: Concept Objective: 7-2 86) The first step in crafting a position is to identify the importance and performance of your brand to determine competitive advantage.

Answer: FALSE Diff: 2 Page Ref: 202 Skill: Concept Objective: 7-2 87) A position is a location in a consumer's mind where the product or brand is placed relative to its competitors on the basis of the key factors the consumer uses to make a decision.

Answer: TRUE Diff: 2 Page Ref: 202 Skill: Concept Objective: 7-2

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88) The historical method of advertising budgeting compares the total sales with the total advertising budget during the previous year or the average of several years to compute a percentage.

Answer: FALSE Diff: 2 Page Ref: 209 Skill: Concept Objective: 7-2 89) Companies using the all-you-can-afford method of advertising budgeting do not value advertising as a strategic imperative.

Answer: TRUE Diff: 2 Page Ref: 210 Skill: Concept Objective: 7-2 90) An advertiser's "share of voice" is determined by comparing the amount spent on advertising to the advertiser's sales.

Answer: FALSE Diff: 2 Page Ref: 209 Skill: Concept Objective: 7-2 91) Account planning is the research-and-analysis process used to gain knowledge and understanding of the consumer, which is expressed as a key consumer insight into how people relate to a brand or product.

Answer: TRUE Diff: 2 Page Ref: 210 Skill: Concept Objective: 7-3 92) The account planner is the voice of the consumer.

Answer: TRUE Diff: 2 Page Ref: 211 Skill: Concept Objective: 7-3 93) The outcome of strategic research usually reaches agency creative departments in the form of a strategy document called a message brief.

Answer: FALSE Diff: 2 Page Ref: 214 Skill: Concept Objective: 7-3

22 .

94) Under the brand position section of a communication brief, the brand essence, brand personality, and image are described.

Answer: FALSE Diff: 3 Page Ref: 215 Skill: Concept Objective: 7-3 95) The proposition or selling idea component of a communication brief describes the single thought that the communication will bring to life in a provocative way.

Answer: TRUE Diff: 2 Page Ref: 215 Skill: Concept AACSB: Communication abilities Objective: 7-3 96) A communication brief should be both strategic and inspirational.

Answer: TRUE Diff: 2 Page Ref: 216 Skill: Concept AACSB: Communication abilities Objective: 7-3 97) Typical objectives for public relations include announcing news, affecting attitudes and opinions, maximizing credibility and likeability, and creating and improving stakeholder relationships.

Answer: TRUE Diff: 2 Page Ref: 216 Skill: Concept AACSB: Communication abilities Objective: 7-4 98) Typical objectives for point-of-purchase displays are to increase immediate sales, attract attention at the decision point, create interest, stimulate urgency, and encourage trial and impulse purchasing.

Answer: TRUE Diff: 2 Page Ref: 216 Skill: Concept AACSB: Communication abilities Objective: 7-4 99) Employees, investors, government bodies, and business partners are examples of corporate level stakeholders.

Answer: TRUE Diff: 2 Page Ref: 217 Skill: Concept Objective: 7-4 23 .

100) Synergistic points are all the ways and places where a person can come into contact with a brand.

Answer: FALSE Diff: 2 Page Ref: 218 Skill: Concept AACSB: Communication abilities Objective: 7-4 101) For advertising to be truly effective, it must focus on only one effect at a time.

Answer: FALSE Diff: 2 Page Ref: 199 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 7-2 102) A manager's decision to run a quarter-page ad in the business section of the local newspaper to promote goodwill toward his company is part of a campaign plan.

Answer: TRUE Diff: 2 Page Ref: 194 Skill: Application AACSB: Analytic skills Objective: 7-2 103) Holiday Inn has divided the total customer market into smaller segments and selected the most promising segments. Deciding what position it wants to occupy in these segments is called targeting.

Answer: FALSE Diff: 2 Page Ref: 199 Skill: Application AACSB: Analytic skills Objective: 7-2 104) A product must be differentiated on tangible differences in order to create long-lasting product differentiation.

Answer: FALSE Diff: 3 Page Ref: 202 Skill: Application AACSB: Reflective thinking skills Objective: 7-2 105) Positioning represents one of advertising's most critical tasks.

Answer: TRUE Diff: 2 Page Ref: 202 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 7-2 24 .

106) Compare and contrast a business plan, a marketing plan, and an advertising plan.

Answer: Strategic planning is a three-tiered process that starts with the business plan, then moves to functional areas of the company such as marketing where a marketing plan is developed that outlines objectives, strategies, and tactics for all areas of the marketing mix. Both the business plan and the marketing plan contribute direction to specific plans for specialist areas, such as advertising and other areas of marketing communication.

A business plan may cover a specific division of the company or a strategic business unit. The objectives for planning at this level tend to focus on maximizing profit and ROI. To a large extent, the marketing plan parallels the business strategic plan and contains many of the same components. Finally, the advertising planning operates with the same concern for objectives, strategies, and tactics that are outlined for business and marketing plans.

Diff: 3 Page Ref: 191-194 Skill: Synthesis AACSB: Reflective thinking skills Objective: 7-1 107) Describe the components and purpose of a SWOT analysis.

Answer: The primary tool used to make sense of information in a situation analysis is a SWOT analysis, which stands for strengths, weaknesses, opportunities, and threats. The strengths and weakness are internally focused, and the opportunities and threats lie in the external marketing environment. In strategic planning, the idea is to leverage the strengths and opportunities and address the weaknesses and threats, which is how the key problems and opportunities are identified. More specifically, the components of the SWOT analysis are: (1) Strengths–the positive traits, conditions, and good situations of the business.

(2) Weaknesses–the traits, conditions, and situations of the business that are perceived as negatives.

(3) Opportunity–an area in which the company could develop an advantage over its competition.

(4) Threat–a trend or development in the environment that will erode business unless the company takes action.

Diff: 2 Page Ref: 196 Skill: Synthesis AACSB: Reflective thinking skills Objective: 7-2

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108) Name and describe the five common advertising budgeting methods.

Answer: The five advertising budgeting methods are: (1) Historical–Bases a budget on last year's budget, perhaps with a percentage increase for inflation or some other marketplace factor. Though easy, it has little to do with reaching advertising objectives.

(2) Objective-Task–Looks at the objectives for each activity and determines the cost of accomplishing each objective. The advantage of this method is that it develops the budget from the ground up so that objectives are the starting point.

(3) Percentage-of-Sales–Compares the total sales with the total advertising budget during the previous year or the average of several years to compute a percentage.

(4) Competitive Budgets–Uses competitors' budgets as benchmarks and relates the amount invested in advertising to the product's share of market. This suggests that the advertiser's shareof-advertising voice affects the share of attention the brand will receive, and that, in turn, affects the market share the brand can obtain.

(5) All You Can Afford–Allocates whatever is left over to advertising. It's not really a method, but rather a philosophy, and companies using this approach don't value advertising as a strategic imperative.

Diff: 3 Page Ref: 209-210 Skill: Synthesis AACSB: Reflective thinking skills Objective: 7-2 109) Define account planning and describe the tasks involved.

Answer: Account planning is the research-and-analysis process used to gain knowledge and understanding of the consumer, understanding that is expressed as a key consumer insight into how people relate to a brand or product. An account planner, then, is a person in an agency who uses this disciplined system to research a brand and its customer relationships in order to devise marketing communication message strategies that are effective in addressing consumer needs and wants. The account planner's tasks involve the following: (1) Understand the meaning of the brand.

(2) Understand the target audience's relationship to the brand.

(3) Articulate communication strategies.

(4) Prepare creative briefs based on understanding of consumer and brand.

(5) Evaluate the effectiveness of the communication in terms of how the target reacts to it.

Diff: 3 Page Ref: 210-211 Skill: Synthesis AACSB: Reflective thinking skills Objective: 7-3

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110) Name and describe six of the nine components of a typical communication brief.

Answer: The communication brief includes the following components: (1) Problem–What's the problem that communication can solve?

(2) Target Audience–Who do we want to speak to?

(3) Consumer Insight–What motivates the target? What are the major truths about the target's relationship to the product category or brand?

(4) Brand Imperatives–What are the important features? What's the point of competitive advantage? What's the brand's position relative to competition? What are the brand's essence, personality, and image?

(5) Communication Objectives–What do we want customers to do in response to our message?

(6) The Proposition or Selling Idea–What is the single thought that the communication will bring to life in a provocative way?

(7) Support–What is the reason to believe the proposition?

(8) Creative direction–How can we best stimulate the desired response? How can we best say it?

(9) Media imperatives–Where and when should we say it?

Diff: 3 Page Ref: 214-215 Skill: Synthesis AACSB: Reflective thinking skills Objective: 7-4 111) Kimball Gardens is a company that operates as two distinct businesses: one that sells lawn and garden products and one that markets booklets. Each business is called a(n) ________.

A) return on investment (ROI) B) strategic business unit (SBU) C) integrated media company (IMC) D) key account E) business portfolio Answer: B Diff: 2 Page Ref: 191 Skill: Application AACSB: Analytic skills Objective: 7-1 112) The following statement appeared in an organization's business plan: "Quick and Dirty Auto Repair aims to offer high-quality auto repair services and a full range of auto parts, focusing on personalized, convenient, and rapid service." Which part of a business plan does this represent?

A) business objectives B) business mission C) marketing objectives D) corporate tactics E) business strategy Answer: B Diff: 2 Page Ref: 192 Skill: Application AACSB: Analytic skills Objective: 7-1 27 .

113) Harris, the marketing manager at a small sports retail chain, has conducted a marketing analysis. He has investigated the company's internal resources and situational factors, as well as factors and trends in the competitive sports retail chain market. Which of the following has Harris completed?

A) a SWOT analysis B) a business plan C) a creative brief D) a marketing plan E) a marketing mix Answer: A Diff: 2 Page Ref: 196 Skill: Application AACSB: Analytic skills Objective: 7-2 114) Biopure is a company that manufactures and markets oxygen therapeutics. Its products are Hemopure for human use and Oxyglobin for animal use. Both have been developed as alternatives to red blood cell transfusions. Which of the following would be part of Biopure's internal environment?

A) approval by the U.S. Food and Drug Administration to allow veterinarians to use Oxyglobin B) the global market for the raw materials needed to make Hemopure and Oxyglobin C) the patented manufacturing process that Biopure uses to produce Hemopure and Oxyglobin D) a competitor developing a similar product E) changes in patent law Answer: C Diff: 2 Page Ref: 196 Skill: Application AACSB: Analytic skills Objective: 7-2 115) Newman's Own is a brand of salad dressing. In 2004, low-carbohydrate dieting became the craze among consumers, with millions attempting to follow a low-carb lifestyle. In print advertising, Newman's Own featured the fact that several of its dressings are low in carbohydrates. In terms of a SWOT analysis, the low-carb diet trend among consumers represents a(n) ________.

A) strength B) weakness C) opportunity D) threat E) all of the above Answer: C Diff: 2 Page Ref: 196 Skill: Application AACSB: Analytic skills Objective: 7-2

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116) Newman's Own is a brand of salad dressings. In 2004, low-carbohydrate dieting became the craze among consumers, with millions attempting to follow a low-carb lifestyle. In print advertising, Newman's Own featured the fact that several of its dressings are low in carbohydrates. In terms of a SWOT analysis, the fact that the brand was low in carbohydrates represents a(n) ________.

A) strength B) weakness C) opportunity D) threat E) all of the above Answer: A Diff: 2 Page Ref: 196 Skill: Application AACSB: Analytic skills Objective: 7-1 117) In Party People's marketing plan, two of the company goals are "Achieve growth rate in sales of 15% for the year 2012" and "Maintain a gross margin of 40% each month." As indicated by these two examples, an objective should be ________.

A) measurable B) general C) creative D) company-wide E) set by management Answer: A Diff: 2 Page Ref: 199 Skill: Application AACSB: Analytic skills Objective: 7-2 118) For Hyundai Corporation, customers who care about the price of a car and its operating economy make up one ________.

A) market position B) market value C) market segment D) strategic business unit (SBU) E) share of mind Answer: C Diff: 2 Page Ref: 199 Skill: Application AACSB: Analytic skills Objective: 7-2

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119) Saturn is "a different kind of company, different kind of a car"; the Hummer is "like nothing else." Statements such as these reflect a firm's ________.

A) brand personality B) target markets C) positioning D) marketing mix E) brand preference Answer: C Diff: 2 Page Ref: 202 Skill: Application AACSB: Analytic skills Objective: 7-2 120) Toward the end of the fiscal year, the owner of a small company came back from lunch concerned because he had learned that a business targeting the same customers as his was planning on spending $150,000 on advertising. As soon as he arrived at the office, he called his financial manager and said, "I want to budget $150,000 for next year's advertising." Which method of budgeting did the owner want to use?

A) the objective-and-task method B) the percentage-of-sales method C) the competitive method D) the historical method E) the pull-push method Answer: C Diff: 2 Page Ref: 209 Skill: Application AACSB: Analytic skills Objective: 7-2 121) Delia's is a clothing retailer that targets teenage girls. It runs coordinated promotions for its catalogs, Web site, and retail outlets. It uses the same models in its catalog and in its print ads as well as on its Web site. Delia's works to make sure its public relations activities as well as its sales promotions harmonize with its advertising in all venues. From this information, you can infer that Delia's is using ________.

A) crowdsourcing B) soft-sell approaches C) integrated marketing communication D) hard-sell approaches E) benchmarking Answer: C Diff: 2 Page Ref: 216 Skill: Application AACSB: Analytic skills Objective: 7-4

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122) Harpo Enterprises maintains the Oprah Winfrey show, a Web site, and O magazine.

Because Harpo Enterprises practices integrated marketing communications, these different brand contacts all maintain ________ in design and tone.

A) variety B) feedback C) consistency D) creativity E) convenience Answer: C Diff: 2 Page Ref: 218 Skill: Application AACSB: Reflective thinking skills Objective: 7-4 123) When the makers of a ballpoint pen state they are in the communication equipment business, they are defining their mission too ________.

A) narrowly B) realistically C) specifically D) broadly E) futuristically Answer: D Diff: 2 Page Ref: 192 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 7-1 124) Tony developed the following objective for his advertising plan: "Increase market share in the consumer market from 10 percent to 15 percent in one year." What is wrong with this advertising plan objective?

A) It is an objective more appropriate for a marketing plan.

B) It does not have a specific effect that can be measured.

C) The goal is not realistic.

D) It does not include a time frame.

E) It does not provide a percentage change.

Answer: A Diff: 3 Page Ref: 193, 199 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 7-1

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125) Which of the following most accurately identifies a difference between a weakness and a threat in SWOT analysis?

A) A company is more able to change a threat than a weakness.

B) A company is more able to change a weakness than a threat.

C) A company can be more negatively affected by a weakness than by a threat.

D) A company can be more negatively affected by a threat than by a weakness.

E) A company can more easily identify threats than weaknesses.

Answer: B Diff: 3 Page Ref: 196 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 7-1 126) Of the following, it is most important for marketers to develop ________ for their products.

A) preemptive positions B) unique market positions C) cross-functional organizations D) marketing ROI data E) value positions Answer: B Diff: 2 Page Ref: 202 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 7-2

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Refer to the following scenario to answer the questions below.

Susan is working on the advertising plan for her company's shampoo named Silkience. She has conducted a SWOT analysis and learned that her company enjoyed a strong financial position and has good working relations with the resellers of its brands. The primary target customers for this brand are women between the ages of 35 and 50, and demographic analysis indicates that this age demographic will grow in double digits over the next 10 years. Silkience targets women who may be having concerns about graying hair. It is a gentle shampoo that will not wash out color, especially semi-permanent color that women of this age tend to use. However, Susan also learned that the target customers do not perceive her company's brand of shampoo as a brand for them but rather for a younger consumer because previous ads tended to use younger-looking models. There was also nothing in the previous advertising campaigns that really explained the benefits of the brand, such as suggesting that it was gentler for semi-permanent-colored hair.

127) In terms of the SWOT analysis, the fact that the demographic analysis indicated that this age group of women will increase considerably in the next 10 years represents a(n) ________.

A) strength B) weakness C) opportunity D) threat E) win Answer: C Diff: 2 Page Ref: 196 Skill: Application AACSB: Analytic skills Objective: 7-2 128) Silkience's place in consumers' minds among other brands targeted to younger women represents Silkience's ________.

A) position B) competitive advantage C) competitive disadvantage D) target E) perceptual map Answer: A Diff: 2 Page Ref: 202 Skill: Application AACSB: Analytic skills Objective: 7-2

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129) Silkience really is different from other shampoos because it is so gentle that it does not fade semi-permanent hair color, allowing a woman to go for a longer period time before having to color her hair again. What does this product attribute represent?

A) opportunity B) product differentiation C) brand position D) brand target E) brand imperative Answer: B Diff: 2 Page Ref: 202 Skill: Application AACSB: Analytic skills Objective: 7-2 130) To determine the advertising budget, Susan divided last year's advertising expenditures by last year's sales and then multiplied that by this year's sales forecast. Which advertising budgeting method did Susan use?

A) historical method B) objective-task method C) percentage-of-sales method D) all-you-can-afford method E) competitive budgeting method Answer: C Diff: 2 Page Ref: 209 Skill: Application AACSB: Analytic skills Objective: 7-2 131) Distinguish between strategic planning, strategies, and tactics.

Answer: Strategic planning is the process of determining objectives (what you want to accomplish), deciding on strategies (how to accomplish the objectives), and implementing the tactics (which make the plan come to life).

Diff: 2 Page Ref: 190 Skill: Synthesis AACSB: Reflective thinking skills Objective: 7-1

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132) Sarah is trying to think of ways to better define the marketing problem she is facing. List three "What's going on?" type questions that might be helpful to Sarah in defining the marketing problem.

Answer: Students can give any three of the following: (1) What is happening with the brand and the category?

(2) How is it happening?

(3) Where is it happening?

(4) When is it happening?

(5) To whom is it happening?

Diff: 2 Page Ref: 193 Skill: Synthesis AACSB: Reflective thinking skills Objective: 7-1 133) Eric is an account planner at a major advertising agency. What three elements are at the heart of an advertising plan and represent the decisions Eric is responsible for as the account planner?

Answer: These three elements at the heart of an advertising plan are audience insight, message, and medium.

(1) Audience Insight Whom are you trying to reach and what insight do you have about how they think, feel, and act? How should they respond to your advertising message?

(2) Message What do you say to them? What directions from the consumer research are useful to the creative team?

(3) Medium How and where will you reach them? What directions from the consumer research are useful to the media team?

Diff: 3 Page Ref: 194 Skill: Synthesis AACSB: Reflective thinking skills Objective: 7-1 134) Richard is tasked with developing the campaign plan for his family's business. Give a general outline of the major components of this type of plan.

Answer: A typical outline for a campaign plan includes the following: (1) situation analysis, (2) key strategic decisions, (3) media strategy, (4) message strategy, (5) other marcom tools used in support and (6) campaign management.

Diff: 2 Page Ref: 194-196 Skill: Synthesis AACSB: Reflective thinking skills Objective: 7-2

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135) Tom was given the task of writing the objectives for an advertising plan. Briefly explain the logic of objectives.

Answer: Given the huge amounts of money spent on advertising, it is important for advertisers to know what to expect from a campaign or ad. Objectives are formal statements of the goals of the advertising or other marketing communication. They outline what the message is designed to achieve and how it will be measured.

Diff: 2 Page Ref: 198 Skill: Synthesis AACSB: Reflective thinking skills Objective: 7-2 136) While working on a campaign plan for a client, Madeleine was given the task of understanding the brand's position within the competitive marketplace. What is a position of a brand?

Answer: A position is a place in consumers' minds where the product or brand stands in comparison to its competitors. A position is usually based on a particular feature or attribute, although it can be psychological or both. The target decision is the starting point because the brand position is determined by how customers see the brand in the marketplace.

Diff: 2 Page Ref: 202 Skill: Synthesis AACSB: Reflective thinking skills Objective: 7-2 137) Explain the purpose of a perceptual map.

Answer: A perceptual map is used to compare positions of different brands in a product category. The perceptual map plots all of the competitors on a matrix based on the two most important consumer decision factors.

Diff: 2 Page Ref: 205 Skill: Synthesis AACSB: Reflective thinking skills Objective: 7-2 138) Why is repositioning a difficult task?

Answer: Repositioning involves changing a product's established position, as 7-Up did when it repositioned itself as the "uncola." Repositioning is difficult because it involves changing consumers' entire understanding of a brand.

Diff: 2 Page Ref: 205 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 7-2

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139) What is the difference between a hard-sell approach and a soft-sell approach?

Answer: A hard-sell approach uses reasons to persuade consumers; a soft-sell approach builds an image for a brand and touches consumers' emotions.

Diff: 3 Page Ref: 206 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 7-2 140) Describe how 7-Up, described in "A Matter of Practice," repositioned its brand.

Answer: 7-Up wanted to turn a medicinal product, which was also used as a mixer with whisky, into a soft drink without changing anything about the product or its packaging. In 1967, a soft drink was a cola, and a cola was a soft drink. 7-Up had to find a way to take that green bottle (7Up), pick it up mentally in consumers' minds, and move it over to where Coke and Pepsi were.

And until they did that, anything 7-Up did that smacked of soft-drink advertising was going to be rejected by consumers. The 7-Up advertising team thought of 'Uncola' it did everything they wanted to do. In one word, it did it all. It positioned 7-Up as a cola, yet not a cola. Today, the 7Up Uncola campaign is regarded as perhaps the classic example of brand positioning and a classic example of how the right brand positioning can lead to marketing magic.

Diff: 3 Page Ref: 206 Skill: Synthesis AACSB: Reflective thinking skills Objective: 7-2 141) Caroline needs to develop the advertising budget for her marketing group's brand. She wants to use a method that is the best and most defensible. Which method should she use?

Answer: The objective-task method looks at the objectives for each activity and determines the cost of accomplishing each objective. This method's advantage is that it develops the budget from the ground up so that objectives are the starting point, which makes it easier to justify than the other budgeting methods because they are not tied directly to the objectives.

Diff: 3 Page Ref: 209 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 7-2

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142) You notice that an advertising agency is recruiting on your campus and that one of the job positions they are seeking to fill is "account planner." What should be included in the job description that explains an account planner's tasks?

Answer: The account planner's tasks are as follows: (1) Understand the meaning of the brand.

(2) Understand the target audience's relationship to the brand.

(3) Articulate communication strategies.

(4) Prepare creative briefs based on understanding of consumer and brand.

(5) Evaluate the effectiveness of the communication in terms of how the target reacts to it.

Diff: 3 Page Ref: 211 Skill: Synthesis AACSB: Reflective thinking skills Objective: 7-3 143) Explain insight mining and why it is important.

Answer: Insight mining is peering into nooks and crannies without losing sight of the big picture in order to identify a key insight that can transform a client's business. Insight mining is a deep dive into the meaning of a brand looking for major truths. The planner engages in unearthing the relationship (if there is any) that a target audience has with a brand or product and what role that brand plays in their lives. Understanding the brand/consumer relationship is important because account planners are taking on the position of the agency's brand steward.

Diff: 2 Page Ref: 213 Skill: Synthesis AACSB: Reflective thinking skills Objective: 7-3 144) Jana is an account planner at an advertising agency. She conducts consumer research to gain a better understanding of their clients' brands and their customers. How is the outcome of this strategic research communicated to the creative teams that work on these clients' accounts?

Answer: The outcome of strategic research usually reaches agency creative departments in the form of a strategy document called a communication brief or creative brief, which explains the consumer insight and summarizes the basic strategy decisions (position, targeting, objectives, and brand strategy).

Diff: 2 Page Ref: 214 Skill: Application AACSB: Reflective thinking skills Objective: 7-3

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145) Identify three questions account planners can use to gain useful insights from consumer and market research.

Answer: Students can describe any three of the following: (1) What is a realistic response objective (perception, knowledge, feelings, attitudes, symbolic meanings, behavior) for this target group?

(2) What are the causes of their lack of response?

(3) What are the barriers to the desired response?

(4) What could motivate them to respond in the desired way?

(5) What is the role of each element in the communication mix to motivate them or remove a barrier?

Diff: 2 Page Ref: 213 Skill: Application AACSB: Reflective thinking skills Objective: 7-3 146) What is the difference between a stakeholder and a customer?

Answer: Stakeholder is a much broader term. It refers to any group of people who have a stake in the success of a company or a brand, including employees, trade audiences, the local community, general public, opinion leaders, and so on.

Diff: 2 Page Ref: 217 Skill: Synthesis AACSB: Reflective thinking skills Objective: 7-4 147) What are contact points, and why are they important in IMC programs?

Answer: IMC programs are designed to maximize all the various types of contacts that consumers and other stakeholders might have with a brand. Contact points, also called touch points, are all the ways and places where a person can come into contact with a brand.

Diff: 2 Page Ref: 218 Skill: Synthesis AACSB: Reflective thinking skills Objective: 7-4

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Refer to the following passage to answer the questions below.

Bob works at a major advertising agency, and his job entails understanding the meaning of the client's brand and the target audience's relationship to the brand. He must also articulate communication strategies, prepare a creative brief based on an understanding of the consumer and the brand, and finally, evaluate the effectiveness of the communication in terms of how the target reacts to it.

148) What is Bob's function called?

Answer: Bob is an account planner.

Diff: 2 Page Ref: 210 Skill: Application AACSB: Analytic skills Objective: 7-1 149) What should Bob include in the creative brief that he prepares for the creative department?

Answer: The Creative Brief or Communication Brief Outline includes the problem, target audience, consumer insights, brand imperatives, communication objectives, proposition or selling idea, support, creative direction, and media imperatives.

Diff: 2 Page Ref: 214-215 Skill: Synthesis AACSB: Reflective thinking skills Objective: 7-3 150) For one of the agency's clients, Bob is involved in assisting the team in crafting a position by identifying features of the company's brand as well as the competition to determine where the brand has an advantage over its competitors. Name and describe a technique Bob can use to help structure this analysis.

Answer: Bob can use feature analysis. First, he'll need to make a chart of a client's product and competitors' products, listing each product's relevant features. Then he'll evaluate how well the product and the competitors' products perform on that feature. Next, he'll evaluate how important each feature is to the target audience based on primary research.

Diff: 3 Page Ref: 204 Skill: Synthesis AACSB: Reflective thinking skills Objective: 7-2

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Advertising & IMC: Principles and Practice, 9e (Moriarty) Chapter 8 The Creative Side 1) Which dimension of effective advertising represents the "art" part?

A) strategic dimension B) personal dimension C) creative dimension D) media dimension E) evaluative dimension Answer: C Diff: 1 Page Ref: 226 Skill: Concept Objective: 8-1 2) Which dimension of effective advertising represents the "science" part?

A) strategic dimension B) personal dimension C) creative dimension D) media dimension E) evaluative dimension Answer: A Diff: 1 Page Ref: 226 Skill: Concept Objective: 8-1 3) In an advertising agency, who manages the creative process?

A) the account planner B) the copy writer C) the creative director D) the client E) the art director Answer: C Diff: 1 Page Ref: 228 Skill: Concept Objective: 8-1 4) According to Professor Sheila Sasser, what are the 3 Ps of innovation?

A) person, plan, product B) plan, product, process C) place, person, process D) place, plan, process E) place, plan, product Answer: C Diff: 3 Page Ref: 228 Skill: Concept Objective: 8-1 1 .

5) A marketing communication that is ________ is right for the product and target; it also meets the objectives.

A) original B) creative C) logical D) strategic E) rational Answer: D Diff: 2 Page Ref: 231 Skill: Concept AACSB: Communication abilities Objective: 8-1 6) ________ is what the advertisement says, and ________ is how it is said.

A) Execution; creative strategy B) Message strategy; media strategy C) Creative strategy; execution D) Media strategy; message strategy E) Cognition; affect Answer: C Diff: 2 Page Ref: 231 Skill: Concept AACSB: Communication abilities Objective: 8-1 7) The creative strategy and key execution details are spelled out in a document called a(n) ________.

A) creative brief B) positioning statement C) execution plan D) unique selling proposition E) big idea map Answer: A Diff: 1 Page Ref: 231 Skill: Concept Objective: 8-1 8) Which of the following is NOT included in a typical creative brief?

A) media considerations B) budget considerations C) brand position D) target audience E) communication objective Answer: B Diff: 2 Page Ref: 231 Skill: Concept Objective: 8-1 2 .

9) Which of the following is NOT another name for a creative platform?

A) creative brief B) positioning statement C) creative worksheet D) creative blueprint E) both C and D Answer: B Diff: 2 Page Ref: 231 Skill: Concept Objective: 8-1 10) Which of the following objectives is most closely related to the perception facet of the Facets Model of Effects?

A) change attitudes B) create conviction C) create attention D) stimulate trial E) touch emotions Answer: C Diff: 2 Page Ref: 232 Skill: Concept AACSB: Communication abilities Objective: 8-1 11) To deliver information and aid understanding are objectives related to which facet of the Facets Model of Effects?

A) perception B) think/understand C) affective D) persuasion E) transformation Answer: B Diff: 2 Page Ref: 232 Skill: Concept AACSB: Communication abilities Objective: 8-1

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12) Which of the following are objectives related to the feel facet of the Facets Model of Effects??

A) create attention, awareness, interest, recognition and recall B) deliver information and understanding C) touch emotions and create feelings D) change attitudes, create conviction and preference E) establish brand identity and associations Answer: C Diff: 1 Page Ref: 232 Skill: Concept AACSB: Communication abilities Objective: 8-1 13) Which of the following are objectives related to the connect facet of the Facets Model of Effects?

A) create attention, awareness, interest, recognition and recall B) deliver information and understanding C) touch emotions and create feelings D) change attitudes, create conviction and preference E) establish brand identity and associations Answer: E Diff: 2 Page Ref: 232 Skill: Concept AACSB: Communication abilities Objective: 8-1 14) Which of the following refers to brand visibility, presence, and importance to the target market?

A) ROI B) the 3 Ps C) brand personality D) brand salience E) brand position Answer: D Diff: 2 Page Ref: 233 Skill: Concept AACSB: Communication abilities Objective: 8-1

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15) In the Facets Model, the cognitive objectives generally speak to the ________, and the affective objectives are more likely to speak to the ________.

A) ego; conscience B) conscience; ego C) attributes; benefits D) head; heart E) heart; head Answer: D Diff: 2 Page Ref: 235 Skill: Concept AACSB: Communication abilities Objective: 8-2 16) An informational message that is designed to touch the mind and create a response based on logic is known as a ________.

A) factual sell B) heart sell C) hard sell D) soft sell E) personal sell Answer: C Diff: 2 Page Ref: 235 Skill: Concept AACSB: Communication abilities Objective: 8-2 17) Which approach uses emotional appeals or images to create a response based on attitudes, moods, dreams, and feelings?

A) factual sell B) head sell C) hard sell D) soft sell E) attributes sell Answer: D Diff: 1 Page Ref: 235 Skill: Concept AACSB: Communication abilities Objective: 8-2

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18) Which of Frazier's Six Creative Strategies is most likely to force competitors into "me too" positions?

A) resonance B) positioning C) preemptive D) affective E) brand image Answer: C Diff: 2 Page Ref: 236 Skill: Concept Objective: 8-2 19) In Taylor's model, the ________ view is similar to the more rational "head" strategies.

A) transmission B) positioning C) ritual D) dramatic E) substantiated Answer: A Diff: 2 Page Ref: 236 Skill: Concept Objective: 8-2 20) In which advertising message does a speaker present evidence and use an argument to persuade the audience?

A) soft sell B) lecture C) teaser D) appeal E) drama Answer: B Diff: 2 Page Ref: 237 Skill: Concept AACSB: Communication abilities Objective: 8-2

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21) Which type of advertising message tells a story about the products, using characters who speak to each other rather than the audience?

A) hard sell B) lecture C) teaser D) demonstration E) drama Answer: E Diff: 2 Page Ref: 237 Skill: Concept AACSB: Communication abilities Objective: 8-2 22) A(n) ________ connects with some emotion that makes the product particularly attractive or interesting.

A) claim B) appeal C) feature D) attribute E) argument Answer: B Diff: 1 Page Ref: 237 Skill: Concept AACSB: Communication abilities Objective: 8-2 23) In Taylor's Six-Segment Strategy Wheel, ________ strategies are based on images that consumers have of themselves.

A) ration B) acute need C) routine D) social E) ego Answer: E Diff: 2 Page Ref: 238 Skill: Concept AACSB: Communication abilities Objective: 8-2

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24) In Taylor's Six-Segment Strategy Wheel, ________ strategies are based on logic.

A) ration B) acute need C) routine D) social E) ego Answer: A Diff: 2 Page Ref: 238 Skill: Concept AACSB: Communication abilities Objective: 8-2 25) A(n) ________ states the logic behind the sales offer.

A) attribute B) appeal C) feature D) point of differentiation E) selling premise Answer: E Diff: 1 Page Ref: 239 Skill: Concept AACSB: Communication abilities Objective: 8-2 26) Which of the following is NOT a rational customer-focused selling premise?

A) benefit B) promise C) reason why D) unique selling proposition (USP) E) resonance Answer: E Diff: 2 Page Ref: 239 Skill: Concept Objective: 8-2 27) Which of the following is a benefit statement that is both unique to the product and important to the user?

A) substantiation B) promise C) reason why D) unique selling proposition (USP) E) appeal Answer: D Diff: 2 Page Ref: 239 Skill: Concept AACSB: Communication abilities Objective: 8-2 8 .

28) Which of the following is NOT a common message format?

A) straightforward B) spokesperson C) substantiation D) comparison E) problem solution Answer: C Diff: 2 Page Ref: 239-240 Skill: Concept Objective: 8-2 29) Which message format is an elaborate version of a problem solution staged in the form of a drama in which "typical people" talk about a common problem and resolve it?

A) demonstration B) slice-of-life C) teaser D) spokes-character E) social Answer: B Diff: 2 Page Ref: 240 Skill: Concept AACSB: Communication abilities Objective: 8-2 30) Which type of message format is designed to arouse curiosity, using mystery ads that don't deliver quite enough information to make sense?

A) teaser B) slice-of-life C) spokesperson D) problem avoidance E) sensory Answer: A Diff: 2 Page Ref: 240 Skill: Concept AACSB: Communication abilities Objective: 8-2

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31) Getting attention reflects the ________ power of an advertisement; keeping attention reflects the ________ power of an ad.

A) stopping; sticking B) pulling; stopping C) stopping; pulling D) pulling; sticking E) sticking; pulling Answer: C Diff: 2 Page Ref: 241 Skill: Concept AACSB: Communication abilities Objective: 8-2 32) Keeping attention through the arousal of curiosity creates ________.

A) stopping power B) pulling power C) sticking power D) perception E) awareness Answer: B Diff: 2 Page Ref: 241 Skill: Concept Objective: 8-2 33) In which type of campaign does the message unfold over time?

A) drama B) lecture C) slice-of-life D) teaser E) slogan Answer: D Diff: 2 Page Ref: 241 Skill: Concept Objective: 8-2 34) When an ad amplifies the emotional impact of a message by engaging a consumer in a personal connection with a brand, the ad ________.

A) informs B) teaches C) persuades D) creates believability E) resonates Answer: E Diff: 2 Page Ref: 241 Skill: Concept AACSB: Communication abilities Objective: 8-2 10 .

35) What is typically used at the end of an ad to summarize the point of the ad's message in a highly memorable way?

A) testimonial B) tagline C) teaser D) unique selling proposition E) signature Answer: B Diff: 1 Page Ref: 241 Skill: Concept AACSB: Communication abilities Objective: 8-2 36) Which of the following is a clever phrase that grabs consumers' attention and can be repeated to intensify memorability?

A) slogan B) logo C) testimonial D) claim E) key visual Answer: A Diff: 1 Page Ref: 241 Skill: Concept AACSB: Communication abilities Objective: 8-2 37) A ________ is a vivid image that the advertiser hopes will linger in the viewer's mind.

A) tagline B) slogan C) signature D) key visual E) testimonial Answer: D Diff: 2 Page Ref: 241 Skill: Concept AACSB: Communication abilities Objective: 8-2

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38) Ads that demonstrate how something works or how to solve a problem are messages that are most likely designed to ________.

A) create brand associations B) remind loyal customers C) teach D) touch emotions E) resonate Answer: C Diff: 2 Page Ref: 242 Skill: Concept AACSB: Communication abilities Objective: 8-2 39) Messages that ________ are designed to affect attitudes and create beliefs.

A) reach emotions B) teach C) get attention D) persuade E) resonate Answer: D Diff: 2 Page Ref: 242 Skill: Concept AACSB: Communication abilities Objective: 8-2 40) In particular, ________ advertising is used to create a representation of the brand in a consumer's mind through symbolism.

A) unique selling proposition (USP) B) image C) conviction D) selling premise E) call to action Answer: B Diff: 1 Page Ref: 242 Skill: Concept AACSB: Communication abilities Objective: 8-2

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41) Which type of message strategy delivers information symbolically by connecting a brand with a certain type of person, lifestyle, or other characteristic?

A) unique selling proposition (USP) B) affective C) reminder D) association E) call to action Answer: D Diff: 2 Page Ref: 243 Skill: Concept AACSB: Communication abilities Objective: 8-2 42) What is one of the main goals of reminder advertising?

A) maintain customer relationships B) build brand preference C) correct false impressions D) inform the market of a price change E) restore company image Answer: A Diff: 3 Page Ref: 243 Skill: Concept Objective: 8-2 43) In generating original ideas, which of the following should be avoided?

A) clichés B) "what if" games C) punch lines D) divergent thinking E) creative risk Answer: A Diff: 2 Page Ref: 244 Skill: Concept Objective: 8-3 44) A ________ is a creative concept that becomes a point of focus for communicating the message strategy.

A) big idea B) cliche C) slogan D) tagline E) creative leap Answer: A Diff: 1 Page Ref: 244 Skill: Concept Objective: 8-3 13 .

45) An advertising agency has a meeting with its client to present the Big Idea for an advertising campaign. What exactly does "Big Idea" mean?

A) It's the art part of advertising.

B) It's the science part of advertising.

C) It's the creative concept that implements the advertising strategy so that the message is both attention getting and memorable.

D) It's the verbal part of advertising that presents the selling premise.

E) It's the visual part of advertising that catches and holds attention.

Answer: C Diff: 2 Page Ref: 244 Skill: Concept AACSB: Communication abilities Objective: 8-3 46) The ROI of effective advertising stands for ________.

A) real, original, and intense B) relevant, original, and impact C) relevant, original, and intense D) real, on-target, and invested E) ready, on-target, and interesting Answer: B Diff: 2 Page Ref: 246 Skill: Concept Objective: 8-3 47) It is most accurate to say that an ad that means something to the target audience is ________.

A) relevant B) original C) creative D) divergent E) unexpected Answer: A Diff: 1 Page Ref: 247 Skill: Concept AACSB: Communication abilities Objective: 8-3 48) An advertising idea is considered ________ when it's one of a kind.

A) relevant B) impactful C) original D) divergent E) convergent Answer: C Diff: 1 Page Ref: 247 Skill: Concept Objective: 8-3 14 .

49) An idea that breaks through the clutter, gets attention, and sticks in memory is said to have ________.

A) relevance B) originality C) resonance D) impact E) association Answer: D Diff: 2 Page Ref: 247 Skill: Concept AACSB: Communication abilities Objective: 8-3 50) In marketing communication, using an idea that someone else has originated is known as ________.

A) duplicate advertising B) left-brain advertising C) copycat advertising D) right-brain advertising E) divergent advertising Answer: C Diff: 1 Page Ref: 247 Skill: Concept Objective: 8-3 51) Which of the following is a style of thinking that explores multiple possibilities?

A) rational thinking B) divergent thinking C) logical thinking D) immersion E) illumination Answer: B Diff: 1 Page Ref: 247 Skill: Concept Objective: 8-4 52) Which of the following refers to intuitive, nonverbal, and emotion-based thinking?

A) lateral-brain thinking B) back-brain thinking C) top-brain thinking D) right-brain thinking E) left-brain thinking Answer: D Diff: 1 Page Ref: 247 Skill: Concept Objective: 8-4 15 .

53) Which type of thinking is logical, orderly, and verbal?

A) right-brain B) left-brain C) top-brain D) back-brain E) lateral-brain Answer: B Diff: 1 Page Ref: 247 Skill: Concept Objective: 8-4 54) A ________ involves moving from the safety of predictable business language in a strategy statement to an original idea.

A) creative leap B) creative gap C) brainstorming process D) creative brief E) free association Answer: A Diff: 2 Page Ref: 247 Skill: Concept Objective: 8-4 55) John had been working on the creative concept for one of his clients when he finally jumped from the strategy statement to an original idea that conveys the strategy in an interesting way.

What did John just do?

A) took the creative leap B) took the creative plunge C) switched from right- to left-brain thinking D) completed a creative aerobics session E) switched from facts to fantasy Answer: A Diff: 2 Page Ref: 247 Skill: Concept Objective: 8-4 56) Which of the following is a common technique that creative thinkers use to stimulate new ideas?

A) free association B) divergent thinking C) analogies and metaphors D) right-brain thinking E) all of the above Answer: E Diff: 2 Page Ref: 247-251 Skill: Concept Objective: 8-4 16 .

57) Which of the following is NOT a technique that creative thinkers use to stimulate new ideas?

A) visualization B) conceptual thinking C) creative aerobics D) right-brain thinking E) copycat thinking Answer: E Diff: 2 Page Ref: 248-249 Skill: Concept Objective: 8-4 58) Which of the following is NOT a step in the process of creative aerobics?

A) Come up with a list of facts about a product.

B) Create new "names" for the product.

C) Look for similarities between dissimilar objects.

D) Create new definitions for product-related nouns.

E) Copytest ideas with a focus group.

Answer: E Diff: 2 Page Ref: 249 Skill: Concept Objective: 8-4 59) The technique of creative aerobics is best classified as a ________ process.

A) thought-evaluation B) thought-starter C) visualization D) brainstorming E) risk-taking Answer: B Diff: 2 Page Ref: 249 Skill: Concept Objective: 8-4 60) Which of the following is the first step in the creative process?

A) ideation B) brainfag C) incubation D) immersion E) illumination Answer: D Diff: 2 Page Ref: 249 Skill: Concept Objective: 8-4

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61) In which step of the creative process does the problem solver read, research, and learn everything he or she can about the problem?

A) ideation B) brainfag C) incubation D) immersion E) illumination Answer: D Diff: 2 Page Ref: 249 Skill: Concept Objective: 8-4 62) In which step of the creative process does the problem solver look at the problem from every angle, develop ideas, and generate as many alternatives as possible?

A) ideation B) brainfag C) incubation D) immersion E) illumination Answer: A Diff: 2 Page Ref: 249 Skill: Concept Objective: 8-4 63) In which step of the creative process does the problem solver hit a blank wall and want to give up?

A) ideation B) brainfag C) incubation D) mental block E) immersion Answer: B Diff: 2 Page Ref: 249 Skill: Concept Objective: 8-4 64) In which stage of the creative process does the problem solver try to put his or her conscious mind to rest to let the subconscious take over?

A) ideation B) brainfag C) incubation D) immersion E) illumination Answer: C Diff: 2 Page Ref: 249 Skill: Concept Objective: 8-4 18 .

65) Which stage of the creative process is characterized as an unexpected moment when the idea comes, often when the mind is relaxed and doing something else?

A) ideation B) brainfag C) incubation D) immersion E) illumination Answer: E Diff: 2 Page Ref: 249 Skill: Concept Objective: 8-4 66) Which of the following is the last step in the creative process?

A) ideation B) evaluation C) incubation D) immersion E) illumination Answer: B Diff: 2 Page Ref: 249 Skill: Concept Objective: 8-4 67) A technique in which six to 10 people work together to come up with ideas is known as ________.

A) concept listing B) brainstorming C) convergent thinking D) free associating E) dramatizing Answer: B Diff: 1 Page Ref: 250 Skill: Concept AACSB: Communication abilities Objective: 8-3 68) Which of the following techniques involves describing everything that comes into your mind when you imagine a given word?

A) free association B) conceptual thinking C) problem solving D) dramatization E) visualization Answer: A Diff: 1 Page Ref: 250 Skill: Concept Objective: 8-4 19 .

69) What is often used to test an ad before it runs to try to determine whether it works?

A) narrative testing B) concept evaluation C) brainstorming D) comparative analysis E) copytesting Answer: E Diff: 1 Page Ref: 253 Skill: Concept Objective: 8-5 70) A particular problem that Big Ideas face is that the message is sometimes so creative that the ad is remembered but not the product. This is known as ________.

A) marketing imperialism B) the carryover effect C) overpowering creativity D) cannibalistic creativity E) vampire creativity Answer: E Diff: 1 Page Ref: 253 Skill: Concept Objective: 8-5 71) Effective advertising is a product of both science and art.

Answer: TRUE Diff: 2 Page Ref: 226 Skill: Concept Objective: 8-1 72) Copywriters and art directors are the only creative roles in advertising agencies.

Answer: FALSE Diff: 2 Page Ref: 229 Skill: Concept Objective: 8-1 73) Creative strategy is what the advertisement says, and execution is how it is said.

Answer: TRUE Diff: 2 Page Ref: 231 Skill: Concept AACSB: Communication abilities Objective: 8-1

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74) The message plan is the document prepared by the account planner to summarize the basic marketing and advertising strategy as well as give direction to members of the creative team as they search for a creative concept.

Answer: FALSE Diff: 2 Page Ref: 231 Skill: Concept Objective: 8-1 75) A creative brief is typically completed in outline form.

Answer: TRUE Diff: 2 Page Ref: 231 Skill: Concept Objective: 8-1 76) A creative brief is more likely to provide creative suggestions than creative ideas.

Answer: TRUE Diff: 3 Page Ref: 231 Skill: Concept Objective: 8-1 77) An advertising objective associated with achieving the behavior Facet of Effect is to touch emotions and create feelings.

Answer: FALSE Diff: 3 Page Ref: 232 Skill: Concept Objective: 8-1 78) A hard sell is an informational message that is designed to touch the mind and create a response based on logic.

Answer: TRUE Diff: 1 Page Ref: 235 Skill: Concept AACSB: Communication abilities Objective: 8-2 79) Lecture as a basic strategy relies on the viewer to make inferences.

Answer: FALSE Diff: 2 Page Ref: 237 Skill: Concept Objective: 8-2

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80) An appeal connects with some emotion that makes the product particularly attractive or interesting.

Answer: TRUE Diff: 2 Page Ref: 237 Skill: Concept AACSB: Communication abilities Objective: 8-2 81) An appeal typically states the logic behind the sales offer.

Answer: FALSE Diff: 2 Page Ref: 237 Skill: Concept Objective: 8-2 82) The unique selling proposition is a benefit statement that looks to the future and predicts that something good will happen if you use the product.

Answer: FALSE Diff: 2 Page Ref: 239 Skill: Concept AACSB: Communication abilities Objective: 8-2 83) To get attention, an ad has to have pulling power.

Answer: FALSE Diff: 2 Page Ref: 241 Skill: Concept AACSB: Communication abilities Objective: 8-2 84) The ability to keep consumers' attention reflects the pulling power of an ad.

Answer: TRUE Diff: 2 Page Ref: 241 Skill: Concept AACSB: Communication abilities Objective: 8-2 85) The key visual in a print, interactive, or television ad is a vivid image that the advertiser hopes will linger in the viewer's mind.

Answer: TRUE Diff: 2 Page Ref: 241 Skill: Concept AACSB: Communication abilities Objective: 8-2

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86) A jingle is a valuable memorability device.

Answer: TRUE Diff: 2 Page Ref: 241 Skill: Concept AACSB: Communication abilities Objective: 8-2 87) A persuasive message is designed to change behaviors rather than attitudes.

Answer: FALSE Diff: 3 Page Ref: 242 Skill: Concept AACSB: Communication abilities Objective: 8-2 88) An association message strategy delivers information symbolically by connecting a brand with a certain type of person, lifestyle, or other characteristic.

Answer: TRUE Diff: 2 Page Ref: 242 Skill: Concept AACSB: Communication abilities Objective: 8-1 89) Style, quality, prestige, package, and color are all considered to be intangible characteristics of the product.

Answer: FALSE Diff: 2 Page Ref: 243 Skill: Concept Objective: 8-2 90) Most ads end with a signature of some kind.

Answer: TRUE Diff: 2 Page Ref: 243 Skill: Concept Objective: 8-2 91) An effective ad is relevant, original, and has impact.

Answer: TRUE Diff: 2 Page Ref: 246 Skill: Concept Objective: 8-3 92) Left-brain thinking involves the juxtaposition of two seemingly unrelated thoughts.

Answer: FALSE Diff: 2 Page Ref: 247 Skill: Concept Objective: 8-4 23 .

93) Left-brain thinking is intuitive, nonverbal, and emotion-based thinking.

Answer: FALSE Diff: 2 Page Ref: 247 Skill: Concept Objective: 8-4 94) Creative problem solvers are risk takers with a high tolerance for ambiguity.

Answer: TRUE Diff: 2 Page Ref: 248 Skill: Concept Objective: 8-4 95) For advertising professionals, creative thinking is more important than strategic thinking.

Answer: FALSE Diff: 2 Page Ref: 249 Skill: Concept Objective: 8-4 96) The first step in the creative process is to read, research, and learn everything you can about the problem.

Answer: TRUE Diff: 2 Page Ref: 249 Skill: Concept Objective: 8-4 97) Illumination is a technique in which a group of six to 10 people work together to come up with ideas.

Answer: FALSE Diff: 2 Page Ref: 250 Skill: Concept AACSB: Communication abilities Objective: 8-4 98) In the case where the core targeting and positioning strategies remain the same in different markets, execution needs to be the same.

Answer: FALSE Diff: 2 Page Ref: 252 Skill: Concept AACSB: Multicultural and diversity understanding Objective: 8-5 99) A formal method of evaluating the effectiveness of an ad, either in draft form or after it has been used, is called copytesting.

Answer: TRUE Diff: 1 Page Ref: 253 Skill: Concept Objective: 8-5 24 .

100) Vampire creativity is using an idea that someone else has originated.

Answer: FALSE Diff: 2 Page Ref: 253 Skill: Concept Objective: 8-5 101) The most creative marketing communication may not be the most strategic marketing communication.

Answer: TRUE Diff: 2 Page Ref: 231 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 8-1 102) A product's point of differentiation relative to the competition reflects its position.

Answer: TRUE Diff: 2 Page Ref: 236 Skill: Application AACSB: Reflective thinking skills Objective: 8-2 103) An ad showing how much food a Dixie paper plate can handle and how much more food a Chinet paper plate can handle is an example of a problem avoidance message format.

Answer: FALSE Diff: 2 Page Ref: 240 Skill: Application AACSB: Analytic skills Objective: 8-2 104) No matter how hard a creative team tries, it is unlikely to come up with a Big Idea for a parity product, such as toilet paper.

Answer: FALSE Diff: 2 Page Ref: 244 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 8-3 105) Unilever regularly runs ads comparing its Suave products to "overpriced competitors."

Unilever would need to adapt this campaign if it wanted to run ads in Japan.

Answer: TRUE Diff: 3 Page Ref: 253 Skill: Application AACSB: Reflective thinking skills Objective: 8-5

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106) Name and describe the four rational customer-focused selling premises.

Answer: (1) Benefit–Emphasizes what the product can do for the user by translating the product feature or attribute into something that benefits the consumer.

(2) Promise–A benefit statement that looks to the future and predicts that something good will happen if you use the product.

(3) Reason Why–A type of benefit statement that gives reason to buy something, although the reason sometimes is implied or assumed. The word because is the key to a reason-why statement.

(4) Unique Selling Proposition (USP) –A benefit statement that is both unique to the product and important to the user. The USP is a promise that consumers will get this unique benefit by using this product only.

Diff: 3 Page Ref: 239 Skill: Synthesis AACSB: Reflective thinking skills Objective: 8-2 107) Name and describe any five of the common message approaches.

Answer: Students can discuss any five of the following: (1) Straightforward–A straightforward factual or informational message conveys information without any gimmicks, emotions, or special effects.

(2) Demonstration–Focuses on how to use the product or what it can do for you.

(3) Comparison–Contrasts two or more products, showing the advertiser's brand to be superior.

The comparison can be direct, with competitors mentioned, or indirect, with just a reference to "other leading brands."

(4) Problem Solution/Problem Avoidance–In problem solution (a.k.a. product-as-hero), the message begins with a problem and the product is the solution. A variation is the problemavoidance message format, in which the product helps avoid a problem.

(5) Humor–It gets attention; advertisers hope that people will transfer the warm feelings they have as they are being entertained to the product. To be effective, the selling premise must reinforce the point of the humor.

(6) Slice of Life–An elaborate version of a problem solution staged in the form of a drama in which "typical people" talk about a common problem and resolve it.

(7) Spokesperson (or Endorser Format) –Ad uses celebrities we admire, created characters, experts we respect, or someone "just like us" whose advice we might seek out to speak on behalf of the product to build credibility.

(8) Teasers–Mystery ads that don't identify the product or don't deliver enough information to make sense, but are designed to arouse curiosity. The ads run for a while without the product identification and then when curiosity is sufficiently aroused, a concluding ad runs with the product identification.

Diff: 3 Page Ref: 239-240 Skill: Synthesis AACSB: Reflective thinking skills Objective: 8-2

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108) A print ad for the American Cancer Society pictured an attractive young woman in a bikini bathing suit from the torso up with her face turned toward the sun and her arms folded behind her head. The headline read, "Fry now, pay later." The copy went on to give factual information on skin cancer and how to avoid it, as well as information on how sun exposure can cause wrinkles later in life. In terms of DDB Needham agency's "ROI" evaluate this ad.

Answer: According to DDB agency, an effective ad is relevant, original, and has impact which is referred to as ROI. This ad is relevant to the target audience, in this case young women, especially those who like to tan themselves. An advertising idea is considered creative when it is novel, fresh, unexpected, and unusual. Original means one of a kind. Although this might not be one of a kind, the headline does play on words and delivers the message effectively. That is, do this to your skin now, and you will pay later. To be effective, the idea must have impact, which means it breaks through the clutter, gets attention, and sticks in memory. The ad catches attention because of the beautiful woman and the message sticks in memory through the catchy headline.

Diff: 3 Page Ref: 247 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 8-3 109) Describe the creative person.

Answer: Creative advertising people may be zany, weird, off-the-wall, and unconventional.

However, they must be focused on creating effective advertising. Research indicates that creative people tend to be independent, assertive, self-sufficient, persistent, and self-disciplined, with a high tolerance for ambiguity. They are also risk takers with powerful egos. They don't care much about group standards and opinions and typically have inborn skepticism and strong curiosity.

Here are a few of the key characteristics of creative people who do well in advertising: (1) Problem Solving–Creative problem solvers are alert, watchful, and observant, and reach conclusions through intuition rather than through logic. They also tend to have a mental playfulness that allows them to make novel associations.

(2) Ability to Visualize–Most of the information we accumulate comes through sight, so the ability to manipulate visual images is crucial for good copywriters, as well as good designers.

(3) Openness to New Experiences–Creative people are open to exploring a range of new experiences.

(4) Conceptual Thinking–People open to experience might develop innovative advertisements and commercials because they are more imaginative.

Diff: 3 Page Ref: 248 Skill: Synthesis AACSB: Reflective thinking skills Objective: 8-4

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110) Name and describe the six steps in the creative process.

Answer: (1) Immersion–Read, research, and learn everything you can about the problem.

(2) Ideation–Look at the problem from every angle; develop ideas; generate as many alternatives as possible.

(3) Brainfag–Your mind may hit a blank wall, but don't give up.

(4) Incubation–Try to put the conscious mind to rest to let the subconscious take over.

(5) Illumination–This is the unexpected moment when the idea comes, often when the mind is relaxed and doing something else.

(6) Evaluation–Ask yourself: Does it work? Is it on strategy?

Diff: 3 Page Ref: 249 Skill: Synthesis AACSB: Reflective thinking skills Objective: 8-4 111) A television commercial for Tylenol brand pain reliever focuses on a woman's face as she talks about her arthritis pain and how she used to think that prescription medication was the answer. She then goes on to say that with all the problems that are being discovered about prescription pain medications, she has reconsidered over-the-counter Tylenol, which provides just as much pain relief without all the risks. What type of advertising message is this?

A) drama B) lecture C) slice-of-life D) teaser E) sensory Answer: B Diff: 2 Page Ref: 237 Skill: Application AACSB: Analytic skills Objective: 8-2 112) An ad for Mongoose mountain bikes shows a serious biker traversing remote and rugged but beautiful terrain and states, "There are places that are so awesome and so killer that you'd like to tell the whole world about them. But please, don't." This ad is most closely related to the ________ strategy of Taylor's Six-Segment Strategy Wheel.

A) ration B) ego C) social D) routine E) acute need Answer: B Diff: 3 Page Ref: 238 Skill: Application AACSB: Analytic skills Objective: 8-2

28 .

113) When Taco Bell used a Chihuahua, a small dog, to represent its product, which type of message format was being used?

A) comparison B) teaser C) brand icon D) slice-of-life E) demonstration Answer: C Diff: 2 Page Ref: 240 Skill: Application AACSB: Analytic skills Objective: 8-2 114) Laurie saw a television commercial that depicts a mother stressed out from working and taking care of children. The scenes show hassles at work, kids crying, dogs barking, and the phone ringing. Then the commercial shows the mother relaxing in a bubble bath with the voiceover saying, "Calgon, take me away!" When Laurie saw that ad, she exclaimed, "Yes, that's exactly how I feel!" What message approach was this ad using?

A) straightforward B) demonstration C) comparison D) slice-of-life E) humor Answer: D Diff: 2 Page Ref: 240 Skill: Application AACSB: Analytic skills Objective: 8-2 115) Suave ran ads featuring a woman with beautiful hair questioning "Suave or Matrix? Can You Tell?" This is an example of a ________ format.

A) spokesperson B) teaser C) comparison D) problem-solution E) problem avoidance Answer: C Diff: 2 Page Ref: 240 Skill: Application AACSB: Analytic skills Objective: 8-2

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116) An ad for a new convection oven shows a busy professional woman serving dinner to her family. The convection oven is seen in the background, and the headline reads, "The latest development in time travel." This objective of this message was most likely to ________.

A) create believability B) resonate C) inform D) teach E) remind Answer: B Diff: 3 Page Ref: 241 Skill: Application AACSB: Reflective thinking skills Objective: 8-2 117) A pharmaceutical ad features a world-renowned heart surgeon describing the benefits of the medication. Which of the following was most likely the objective of this ad?

A) remind B) tease C) teach D) resonate E) create believability Answer: E Diff: 3 Page Ref: 241 Skill: Application AACSB: Analytic skills Objective: 8-2 118) Jell-O ads contain the phrase "Make some magic." All Ace Hardware store ads contain the statement "Life is an ongoing project." The American Dairy Farmers run ads that say, "Ahh, the power of cheese." These are all examples of ________.

A) jingles B) testimonials C) unique selling propositions D) slogans E) slice-of-life appeals Answer: D Diff: 2 Page Ref: 241 Skill: Application AACSB: Analytic skills Objective: 8-2

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119) When Proctor & Gamble developed the Mr. Clean Magic Eraser, the company needed to explain how the product cleans grime from walls without removing paint. Proctor & Gamble likely used a message that ________.

A) informs B) touches emotion C) resonates D) teases E) reminds Answer: A Diff: 2 Page Ref: 242 Skill: Application AACSB: Reflective thinking skills Objective: 8-2 120) Apple recently ran ads featuring real people who had switched from Microsoft Windowsbased PCs to Macs. These ads use a ________ strategy.

A) testimonial B) lifestyle C) slice-of-life D) promise E) demonstration Answer: A Diff: 2 Page Ref: 242 Skill: Application AACSB: Analytic skills Objective: 8-2 121) When Budweiser beer started using the Budweiser frogs in commercials, people raved about how creative the advertising was. However, someone who has worked in the advertising industry for many years pointed out that he used that creative idea several years before. This is an example of ________.

A) duplicate advertising B) revised advertising C) copycat advertising D) cliched advertising E) vampire advertising Answer: C Diff: 2 Page Ref: 247 Skill: Application AACSB: Analytic skills Objective: 8-3

31 .

122) Patrick and his colleagues were working on the creative concept for a client when they all seemed to hit a blank wall. To help overcome this, they decided to go play a game of basketball.

In the second half of the game, Patrick came up with a great idea, and they all went back to work. In which step of the creative process were Patrick and his colleagues when they went to play basketball?

A) immersion B) ideation C) incubation D) evaluation E) creative leap Answer: C Diff: 2 Page Ref: 249 Skill: Application AACSB: Analytic skills Objective: 8-4 123) Carly saw a billboard for a local church that said, "CH_ _ CH–What's missing?" This is an example of which technique for creating original and unexpected ideas?

A) clichés B) an unexpected association C) metaphors D) play on words E) analogies Answer: D Diff: 3 Page Ref: 251 Skill: Application AACSB: Analytic skills Objective: 8-4 124) Which message strategy approach is most likely to emphasize tangible product features and benefits?

A) resonance sell B) affective sell C) hard sell D) soft sell E) brand sell Answer: C Diff: 2 Page Ref: 235 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 8-2

32 .

125) In Taylor's Six-segment strategy wheel, the transmission view is equivalent to the ________ strategy.

A) head B) heart C) teaser D) talking head E) resonance Answer: A Diff: 2 Page Ref: 238 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 8-2 126) What purpose do brand icons such as the Burger King's Burger King and Geico's Gecko fulfill?

A) the relevant use of humor B) the visible demonstration of product benefits C) the establishment of credibility D) the association of personality with a brand E) the arousal of curiosity Answer: D Diff: 3 Page Ref: 240 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 8-2

33 .

Refer to the following scenario to answer the questions below.

For years, Energizer batteries used the Energizer Bunny in its television commercials. The bunny was cute, always beating a drum with the tagline, "The Energizer Bunny keeps going and going and going." Several of the ads were humorous. Viewers could remember the battery ad with the bunny, but for a long time, people could not name the brand of battery. In response, Energizer started putting the bunny on the packaging and using it in point-of-purchase displays in stores, even going so far as to let consumers enter a drawing to take home the bunny that was on top of the battery display. The creative team that worked on this campaign spent considerable time researching consumers' usage of batteries as well as the problems they had with them. The team learned that people didn't like batteries that don't last long, and because Energizer batteries lasted much longer than competitors' brands, they decided to feature that in the execution of the ads.

127) In which step of the creative process did the creative team read, research, and learn everything they could about Energizer batteries and their competitors?

A) immersion B) ideation C) incubation D) illumination E) evaluation Answer: A Diff: 2 Page Ref: 249 Skill: Application AACSB: Analytic skills Objective: 8-4 128) One commercial was particularly effective because viewers watched the entire commercial to see the bunny do something funny at the end. It is most accurate to say that this commercial had ________.

A) stopping power B) pulling power C) sticking power D) credibility E) repetition Answer: B Diff: 2 Page Ref: 241 Skill: Application AACSB: Analytic skills Objective: 8-2

34 .

129) Though humorous, the ads stressed that Energizer batteries last three times longer than competing brands. What is this known as?

A) intangible characteristics B) vampire creativity C) association message strategy D) positioning E) creative platform Answer: D Diff: 2 Page Ref: 236 Skill: Application AACSB: Analytic skills Objective: 8-2 130) Initially, people could remember the ads but not the brand. This is an example of ________.

A) vampire creativity B) positioning C) structural fault D) copycat advertising E) cliched thinking Answer: A Diff: 2 Page Ref: 253 Skill: Application AACSB: Analytic skills Objective: 8-5 131) How might creativity be demonstrated in the use of media?

Answer: Though creativity is usually demonstrated in the message, media selection also plays a role. New, more engaging media such as social networks and smart phones allow for creative executions of messages.

Diff: 2 Page Ref: 228 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 8-1 132) What role does environment play in the process of innovation?

Answer: Environment, or place, can help or hinder the creative process. The structure, image, and culture of the workplace can all affect creativity; for this reason, many ad agencies have playful offices to stimulate their creative team's ideas.

Diff: 3 Page Ref: 228 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 8-1

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133) Compare and contrast the terms creative strategy and creative execution.

Answer: Creative strategy is what the advertisement says and execution is how it is said.

Advertising creativity is about coming up with an idea that solves a communication problem in an original way, which incorporates both creative strategy and creative execution.

Diff: 2 Page Ref: 231 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 8-1 134) Two basic approaches are sometimes referred to as head and heart strategies. Explain what this means in terms of the Facets Model.

Answer: In the Facets Model, the cognitive objectives generally speak to the head, and the affective objectives are more likely to speak to the heart.

Diff: 2 Page Ref: 235 Skill: Synthesis AACSB: Reflective thinking skills Objective: 8-2 135) Give two examples of different types of advertising appeals that marketers can use.

Answer: Answers will vary, but may include economic savings, fear, love, admiration, and vanity.

Diff: 2 Page Ref: 237 Skill: Application AACSB: Analytic skills Objective: 8-2 136) What is a USP? When would an advertiser use a USP strategy?

Answer: USP stands for unique selling proposition, a strategy marketers use to emphasize the distinct advantages of a product that a customer can identify.

Diff: 2 Page Ref: 239 Skill: Synthesis AACSB: Reflective thinking skills Objective: 8-2 137) At one time, Michael Jordan was the highest paid celebrity endorser for several products.

Why do advertisers use such celebrity endorsers?

Answer: Celebrity endorsements are used to intensify conviction in the target audience, as well as get attention and cue the brand personality. The idea is that celebrities draw attention, but they also carry a strong message of conviction when they speak with passion about something they believe in. Celebrities, product placements (i.e., brands used by stars in a movie or television program), and other credibility techniques are used to give the consumer permission to believe a claim or selling premise.

Diff: 3 Page Ref: 240, 242 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 8-2 36 .

138) How do recent changes in FTC rules affect endorsers of products?

Answer: According to changes in FTC rules, endorsers as well as advertisers are liable for any false or unsubstantiated claims they make in an advertisement.

Diff: 3 Page Ref: 240 Skill: Critical Thinking AACSB: Ethical understanding and reasoning abilities Objective: 8-2 139) Give a hypothetical example of a slice-of-life message execution style.

Answer: Possible examples are endless. Slice-of-life examples show one or more typical people using a product in a normal setting.

Diff: 2 Page Ref: 240 Skill: Synthesis AACSB: Reflective thinking skills Objective: 8-2 140) To get attention, an ad has to have stopping power. Describe how ads can accomplish this.

Answer: Ads that stop the scanning and break through the clutter are usually high in originality.

People will notice something that is new, novel, or surprising. Creative advertising breaks through the old patterns of seeing and saying things; the unexpectedness of the new idea creates stopping power. Many clutter-busting ads are intrusive and use loud, bold effects to attract viewer attention. Contrast can attract attention too.

Diff: 3 Page Ref: 241 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 8-2 141) Explain the function of a key visual.

Answer: The key visual is a vivid image that the advertiser hopes will linger in the viewer's mind.

Diff: 2 Page Ref: 241 Skill: Synthesis AACSB: Reflective thinking skills Objective: 8-2 142) When would a marketer most likely use a message that informs?

Answer: Informative ads are used heavily when introducing new or reformulated products.

Diff: 2 Page Ref: 242 Skill: Application AACSB: Analytic skills Objective: 8-2

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143) Explain what a Big Idea is and give an example.

Answer: The Big Idea becomes a point of focus for communicating the message strategy a theme or central concept or creative concept. Examples will vary.

Diff: 2 Page Ref: 244 Skill: Synthesis AACSB: Reflective thinking skills Objective: 8-3 144) One of your assignments in an advertising class is to give a brief presentation on tips for coming up with original ideas. List three tips you would include in your presentation.

Answer: Tips for creating original ideas: (1) Live big.

(2) The right answer is the wrong answer.

(3) What do you want to say?

(4) Do not use a computer to create.

(5) Use the power of play.

(6) Play what-if.

(7) Don't play scared.

(8) Use associations.

(9) Use a set-up and a punch line.

(10) Have fun.

Diff: 2 Page Ref: 245-246 Skill: Synthesis AACSB: Reflective thinking skills Objective: 8-3 145) Marcy is a creative consultant who goes to a business or organization to conduct "creative aerobic" sessions. Explain what she does.

Answer: Creative aerobics is a thought-starter process that uses both the head and the heart. The four-step approach is: (1) Facts–The first exercise is left-brain and asks you to come up with a list of facts about the product.

(2) New Names–Create new "names" for the product.

(3) Similarities–Look for similarities between dissimilar objects.

(4) New Definitions–Create new definitions for product-related nouns.

Diff: 3 Page Ref: 249 Skill: Synthesis AACSB: Reflective thinking skills Objective: 8-3

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146) You have been asked by your supervisor to participate in a brainstorming session to come up with ideas for your company's advertising campaign. Explain what brainstorming is and why it is used.

Answer: Brainstorming involves a group of six to 10 people working together to come up with ideas. One person's idea stimulates someone else's, and the combined power of the group associations stimulates far more ideas than any one person could think of alone.

Diff: 2 Page Ref: 250 Skill: Synthesis AACSB: Reflective thinking skills Objective: 8-4 147) Explain how you would ensure that a brainstorming session is successful.

Answer: The secret to brainstorming is to remain positive and defer judgment. Negative thinking during a brainstorming session can destroy the playful atmosphere necessary to achieve a novel idea. Brainstorming sessions should be scheduled and located away from distractions.

Diff: 3 Page Ref: 250 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 8-4 Refer to the following scenario to answer the questions below.

For several years, the Cotton Growers of America, a trade group representing U.S. cotton farmers, used an advertising campaign that depicted people in everyday scenarios with a voiceover saying that cotton was the "fabric of our lives." Although cotton has several advantages over other types of fabric, none of this information was conveyed in this advertising campaign.

148) Did this campaign use a hard-sell or soft-sell strategy?

Answer: This is an example of a soft-sell strategy because it uses emotional appeals or images to create a response based on attitudes, moods, dreams, and feelings.

Diff: 2 Page Ref: 235 Skill: Application AACSB: Analytic skills Objective: 8-2 149) Although there were several executions of the cotton television commercials, they each included the words, "Cotton. The fabric of our lives." What are these words known as?

Answer: This is a tagline, which is used at the end of an ad to summarize the point of the ad's message in a highly memorable way.

Diff: 2 Page Ref: 241 Skill: Application AACSB: Analytic skills Objective: 8-2

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150) Name and describe the message format approach you think best describes the television commercial execution for this campaign.

Answer: The message format approach that best describes these commercials is slice-of-life.

This approach depicts people in an everyday vignette with which viewers can identify.

Diff: 2 Page Ref: 240 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 8-2

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Advertising & IMC: Principles and Practice, 9e (Moriarty) Chapter 9 Copywriting 1) The person who shapes and sculpts the words in marketing communication is called a(n) ________.

A) account planner B) art director C) copywriter D) creative director E) talent Answer: C Diff: 1 Page Ref: 261 Skill: Concept AACSB: Communication abilities Objective: 9-1 2) ________ is the text of an ad or the words that people say in a commercial.

A) Copy B) Body C) Verbiage D) Dialogue E) Headline Answer: A Diff: 1 Page Ref: 261 Skill: Concept AACSB: Communication abilities Objective: 9-1 3) What is the most important word selection in marketing communication?

A) headline B) slogan C) brand or corporate name D) mission statement E) display copy Answer: C Diff: 2 Page Ref: 262 Skill: Concept AACSB: Communication abilities Objective: 9-1

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4) Which of the following is false regarding advertising writing style?

A) Words such as interesting, very, in order to, buy now and save, introducing, and nothing less than are effective in advertising copy.

B) Effective copy is succinct and single-minded.

C) Every word counts because space and time are expensive.

D) Copy should be as simple as possible to reach a generally inattentive and uninterested audience.

E) Copywriters try to write the way the target audience thinks and talks.

Answer: A Diff: 2 Page Ref: 262-263 Skill: Concept AACSB: Communication abilities Objective: 9-1 5) A type of formula writing that is full of clichés, superlatives, stock phrases, and vague generalities is known as ________.

A) hyperbole B) display copy C) key copy D) adese E) your-name-here-copy Answer: D Diff: 1 Page Ref: 265 Skill: Concept AACSB: Communication abilities Objective: 9-1 6) Which of the following can be described as "we" copy written from the company's point of view in a pompous tone?

A) hyperbole B) display copy C) key copy D) brag-and-boast copy E) your-name-here-copy Answer: D Diff: 1 Page Ref: 265 Skill: Concept AACSB: Communication abilities Objective: 9-1

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7) A print advertisement is created in which of the two following pieces?

A) layout and storyboard B) copy sheet and layout C) script and storyboard D) copy sheet and script E) copy sheet and storyboard Answer: B Diff: 2 Page Ref: 265 Skill: Concept AACSB: Communication abilities Objective: 9-2 8) Which of the following are the two categories of copy that print advertising uses?

A) display and body B) headline and text C) tagline and slogan D) overlines and underlines E) headlines and subheads Answer: A Diff: 2 Page Ref: 265 Skill: Concept AACSB: Communication abilities Objective: 9-2 9) ________ includes all elements that readers see in their initial scanning; these elements are set in larger type size than other elements of a print ad.

A) Body copy B) Display copy C) Adese D) Brag-and-boast copy E) Visuals Answer: B Diff: 1 Page Ref: 265 Skill: Concept AACSB: Communication abilities Objective: 9-2

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10) ________ includes the elements in a print ad that are designed to be read and absorbed.

A) Body copy B) Display copy C) Adese D) Brag-and-boast copy E) News copy Answer: A Diff: 1 Page Ref: 265 Skill: Concept AACSB: Communication abilities Objective: 9-2 11) All of the following are considered display copy EXCEPT which one?

A) caption B) headline C) subhead D) tagline E) slogan Answer: A Diff: 2 Page Ref: 265 Skill: Concept AACSB: Communication abilities Objective: 9-2 12) Which element in print advertising conveys the main message so that people get the point of the ad?

A) headline B) overline C) body copy D) subheads E) tagline Answer: A Diff: 1 Page Ref: 266 Skill: Concept AACSB: Communication abilities Objective: 9-2

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13) The text of the ad is known as the ________.

A) headline B) overline C) body copy D) subhead E) tagline Answer: C Diff: 1 Page Ref: 267 Skill: Concept AACSB: Communication abilities Objective: 9-2 14) Which of the following is NOT considered one of the copywriter's tools?

A) adese B) overlines and underlines C) body copy D) callouts E) slogans Answer: A Diff: 2 Page Ref: 267 Skill: Concept AACSB: Communication abilities Objective: 9-2 15) Phrases or sentences that either lead into the headline or follow up on the thought in the headline are known as ________.

A) overlines and underlines B) heads and subheads C) display and body copy D) call-outs and calls to action E) taglines and slogans Answer: A Diff: 2 Page Ref: 267 Skill: Concept AACSB: Communication abilities Objective: 9-2

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16) Which of the following copy elements in a print ad is a sentence that floats around the visual, usually with a line or arrow pointing to some specific element in the visual that it names and explains?

A) caption B) overline C) underline D) call-out E) tagline Answer: D Diff: 2 Page Ref: 267 Skill: Concept AACSB: Communication abilities Objective: 9-2 17) A sentence or short piece of copy that explains what the viewer is looking at in a photo or illustration is known as a(n) ________.

A) caption B) overline C) underline D) call-out E) tagline Answer: A Diff: 2 Page Ref: 267 Skill: Concept AACSB: Communication abilities Objective: 9-2 18) A short phrase that wraps up the key idea or creative concept and that usually appears at the end of the body copy is known as a(n) ________ A) caption B) overline C) underline D) call-out E) tagline Answer: E Diff: 1 Page Ref: 267 Skill: Concept AACSB: Communication abilities Objective: 9-2

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19) A distinctive catch phrase that serves as a motto for a campaign, brand, or company is known as a(n) ________.

A) caption B) overline C) underline D) call-out E) slogan Answer: E Diff: 1 Page Ref: 267 Skill: Concept AACSB: Communication abilities Objective: 9-2 20) A line at the end of an ad that encourages people to respond and gives information on how to respond is called a(n) ________.

A) underline B) caption C) call to action D) overline E) call-out Answer: C Diff: 2 Page Ref: 267 Skill: Concept AACSB: Communication abilities Objective: 9-2 21) According to researchers, what percentage of readers who read the headline goes on to read the body copy?

A) 10 percent B) 20 percent C) 30 percent D) 40 percent E) 50 percent Answer: B Diff: 3 Page Ref: 268 Skill: Concept AACSB: Analytic skills Objective: 9-2

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22) Copy-tests of headlines using two versions of the same ad are known as ________.

A) end-run tests B) tag tests C) split-run tests D) dual tests E) direct tests Answer: C Diff: 2 Page Ref: 268 Skill: Concept AACSB: Communication abilities Objective: 9-2 23) Headlines can be grouped into which two general categories?

A) call-outs and call to actions B) overlines and underlines C) taglines and slogans D) direct- and indirect-action headlines E) display and body headlines Answer: D Diff: 2 Page Ref: 268 Skill: Concept AACSB: Communication abilities Objective: 9-2 24) Which category of headlines is straightforward and informative?

A) call-outs B) call to actions C) overlines D) indirect-action E) direct-action Answer: E Diff: 2 Page Ref: 268 Skill: Concept AACSB: Communication abilities Objective: 9-2 25) Which of the following is a type of direct-action headline?

A) news announcement B) puzzles C) association D) question E) provocation Answer: A Diff: 2 Page Ref: 268 Skill: Concept AACSB: Analytic skills Objective: 9-2 8 .

26) Which of the following is NOT a type of direct-action headline?

A) news announcement B) association C) command D) how-to head E) assertion Answer: B Diff: 2 Page Ref: 268 Skill: Concept AACSB: Analytic skills Objective: 9-2 27) Which type of direct-action headline states a claim or a promise that will motivate someone to try the product?

A) assertion B) command C) how-to head D) association E) news announcement Answer: A Diff: 2 Page Ref: 268 Skill: Concept AACSB: Communication abilities Objective: 9-2 28) Which type of direct-action headline politely tells the reader to do something?

A) assertion B) command C) how-to head D) association E) news announcement Answer: B Diff: 1 Page Ref: 268 Skill: Concept AACSB: Communication abilities Objective: 9-2 29) Which of the following is a type of indirect-action headline?

A) assertion B) command C) how-to head D) association E) news announcement Answer: D Diff: 2 Page Ref: 269 Skill: Concept Objective: 9-2 9 .

30) Which type of indirect-action headline are strictly used for curiosity and provocative power?

A) assertions B) puzzles C) how-to heads D) associations E) news announcements Answer: B Diff: 1 Page Ref: 269 Skill: Concept Objective: 9-2 31) Which type of indirect-action headline uses image and lifestyle to get attention and build interest?

A) assertion B) puzzles C) how-to head D) association E) news announcement Answer: D Diff: 2 Page Ref: 269 Skill: Concept Objective: 9-2 32) Indirect-action headlines that give little information but attempt to compel readers to read on to find out the point of the message are known as ________.

A) blind headlines B) blank headlines C) assertion headlines D) tagline E) attention-getters Answer: A Diff: 1 Page Ref: 269 Skill: Concept AACSB: Communication abilities Objective: 9-2

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33) Next to the headline, which copy element has the second-highest readership?

A) overlines B) underlines C) call-outs D) captions E) taglines Answer: D Diff: 2 Page Ref: 270 Skill: Concept AACSB: Communication abilities Objective: 9-2 34) ________ are sectional headlines that can be used to break up a mass of "gray" type in a large block of copy.

A) Captions B) Subheads C) Taglines D) Slogans E) Direct headlines Answer: B Diff: 2 Page Ref: 270 Skill: Concept AACSB: Communication abilities Objective: 9-2 35) Which of the following is NOT a literary technique used by copywriters to enhance the memorability of subheads, slogans, and taglines?

A) direct address B) parallel construction C) music D) rhyme E) cliche Answer: E Diff: 2 Page Ref: 271 Skill: Concept AACSB: Communication abilities Objective: 9-2

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36) The slogan "Have it your way" is an example of which of the following literary techniques used by advertisers?

A) direct address B) parallel construction C) music D) rhyme E) cliche Answer: A Diff: 2 Page Ref: 271 Skill: Concept AACSB: Communication abilities Objective: 9-2 37) Which copy element develops the sales messages, states the argument, summarizes the proof, and provides explanation?

A) headline B) subhead C) caption D) body copy E) display copy Answer: D Diff: 2 Page Ref: 271 Skill: Concept AACSB: Communication abilities Objective: 9-2 38) Which of the following is NOT a standard approach to writing body copy?

A) straightforward B) narrative C) alliteration D) translation E) explanation Answer: C Diff: 2 Page Ref: 272 Skill: Concept AACSB: Communication abilities Objective: 9-2

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39) Which standard approach to writing body copy is characterized by factual copy usually written in the words of an anonymous or unacknowledged source?

A) straightforward B) narrative C) dialogue D) translation E) explanation Answer: A Diff: 2 Page Ref: 272 Skill: Concept AACSB: Communication abilities Objective: 9-2 40) Which standard approach to writing body copy tells a story in first person or third person?

A) straightforward B) narrative C) dialogue D) translation E) explanation Answer: B Diff: 2 Page Ref: 272 Skill: Concept AACSB: Communication abilities Objective: 9-2 41) Which standard approach to writing body copy lets the reader "listen in" on a conversation?

A) straightforward B) narrative C) dialogue D) translation E) explanation Answer: C Diff: 2 Page Ref: 272 Skill: Concept AACSB: Communication abilities Objective: 9-2

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42) Which standard approach to writing body copy explains how something works?

A) straightforward B) narrative C) dialogue D) translation E) explanation Answer: E Diff: 1 Page Ref: 272 Skill: Concept AACSB: Communication abilities Objective: 9-2 43) Which standard approach to writing body copy defines technical information in understandable language?

A) straightforward B) narrative C) dialogue D) translation E) explanation Answer: D Diff: 2 Page Ref: 272 Skill: Concept AACSB: Communication abilities Objective: 9-2 44) Which paragraph(s) gets special attention in body copy?

A) lead B) middle and closing C) lead, middle, and closing D) lead and closing E) lead and middle Answer: D Diff: 2 Page Ref: 272 Skill: Concept AACSB: Communication abilities Objective: 9-2

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45) Which of the following is another name for the first paragraph of the body copy?

A) tagline B) lead C) paramount D) initial E) headline Answer: B Diff: 1 Page Ref: 272 Skill: Concept AACSB: Communication abilities Objective: 9-2 46) What is the purpose of the closing paragraph in body copy?

A) to give readers interesting information so that they go back and read the full body copy B) to provide specific information such as price and warranty C) to highlight the required disclaimers D) to draw the reader's attention to the selling premise E) to refer back to the creative concept and wrap up the Big Idea Answer: E Diff: 2 Page Ref: 272 Skill: Concept AACSB: Communication abilities Objective: 9-2 47) Which type of advertising is not considered as intrusive as the others?

A) direct marketing B) newspaper C) outdoor D) television E) radio Answer: B Diff: 2 Page Ref: 273 Skill: Concept AACSB: Communication abilities Objective: 9-2 48) In which print medium can ads be more informative and carry longer copy?

A) newspapers B) magazines C) directories D) posters E) outdoor advertising Answer: B Diff: 2 Page Ref: 273 Skill: Concept AACSB: Communication abilities Objective: 9-2 15 .

49) What is the most important characteristic of copywriting for outdoor advertising?

A) rhythm B) adese C) call to action D) brevity E) alliteration Answer: D Diff: 2 Page Ref: 274 Skill: Concept AACSB: Communication abilities Objective: 9-2 50) Brochures, pamphlets, and other materials that provide detail about a product, company, or event are known as ________.

A) add-on materials B) supplemental literature C) collateral materials D) overlines E) underlines Answer: C Diff: 1 Page Ref: 274 Skill: Concept AACSB: Communication abilities Objective: 9-2 51) Radio's special advantage is that the story is visualized in the listener's imagination; this is referred to as ________.

A) theater of the mind B) the mind's imagination C) image enhancement D) theater of the imagination E) synthesis Answer: A Diff: 2 Page Ref: 275 Skill: Concept AACSB: Communication abilities Objective: 9-3

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52) Which of the following is a tool of radio advertising?

A) headline B) body copy C) theater D) motion E) voice Answer: E Diff: 1 Page Ref: 275 Skill: Concept AACSB: Communication abilities Objective: 9-3 53) Which of the following is considered the most important element in radio advertising?

A) voice B) music C) sound effects D) motion E) copy Answer: A Diff: 2 Page Ref: 275 Skill: Concept AACSB: Communication abilities Objective: 9-3 54) Commercials in song are known as ________.

A) jingles B) musicals C) lyricals D) sound effects E) voice-overs Answer: A Diff: 1 Page Ref: 276 Skill: Concept AACSB: Communication abilities Objective: 9-3 55) Which of the following is NOT a guideline for writing effective radio commercials?

A) Keep it impersonal.

B) Wake up the inattentive.

C) Speak to listeners' interests.

D) Make it memorable.

E) Include call to action.

Answer: A Diff: 2 Page Ref: 276 Skill: Concept AACSB: Communication abilities Objective: 9-3 17 .

56) ________ occurs in a radio commercial when the visuals from the TV version of an ad are re-created in a listener's mind by the use of key phrases and ideas from the TV commercial.

A) Adese B) Memorability C) Call to action D) Image transfer E) Brevity Answer: D Diff: 1 Page Ref: 277 Skill: Concept AACSB: Communication abilities Objective: 9-3 57) Copywriters working on a radio commercial use a standard ________ format to write the copy to certain time blocks including all the words, dialogue, lyrics, sound effects, instructions, and descriptions.

A) storyboard B) radio script C) transcript D) dialogue E) dual-column Answer: B Diff: 1 Page Ref: 277 Skill: Concept AACSB: Communication abilities Objective: 9-3 58) Which of the following is NOT a technique used in television copy?

A) action B) demonstration C) storytelling D) emotion E) underline Answer: E Diff: 2 Page Ref: 278 Skill: Concept AACSB: Communication abilities Objective: 9-4

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59) What are the two primary toolkits available to television copywriters?

A) voice-over and on-camera B) voice and sound effects C) video and audio D) on- and off-location E) script and storyboard Answer: C Diff: 2 Page Ref: 278 Skill: Concept AACSB: Communication abilities Objective: 9-4 60) An announcer who is not visible describing some kind of action on the screen is known as a(n) ________.

A) voice-over B) remote-voice C) off-location D) ghost-voice E) monologue Answer: A Diff: 1 Page Ref: 278 Skill: Concept AACSB: Communication abilities Objective: 9-4 61) In a television ad, where does the action take place?

A) storyboard B) script C) cast D) set E) frame Answer: D Diff: 1 Page Ref: 280 Skill: Concept AACSB: Communication abilities Objective: 9-4

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62) Commercials shot outside the studio are said to be filmed ________, which means the entire crew and cast are transported somewhere away from the studio.

A) off frame B) on camera C) on location D) off location E) off camera Answer: C Diff: 1 Page Ref: 280 Skill: Concept AACSB: Communication abilities Objective: 9-4 63) Which of the following is NOT a role for which people can be cast in a television commercial?

A) announcer B) director C) spokesperson D) character type E) celebrity Answer: B Diff: 2 Page Ref: 280 Skill: Concept AACSB: Communication abilities Objective: 9-4 64) A commercial's ________ refers to how fast or slowly the action progresses.

A) storytelling B) action C) direction D) key frame E) pace Answer: E Diff: 1 Page Ref: 281 Skill: Concept AACSB: Communication abilities Objective: 9-4

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65) Segments of action in a television commercial that occur in a single location are known as ________.

A) scenes B) segments C) key frames D) storyboards E) scripts Answer: A Diff: 1 Page Ref: 281 Skill: Concept AACSB: Communication abilities Objective: 9-4 66) The visual that sticks in the mind and becomes the image that viewers remember when they think about the commercial is known as the ________.

A) brand personality B) key frame C) tagline D) elemental visual E) scripted visual Answer: B Diff: 1 Page Ref: 281 Skill: Concept AACSB: Communication abilities Objective: 9-4 67) A(n) ________ is the visual plan or layout of the commercial that shows the number of scenes, the composition of the shots, and the progression of the action.

A) key frame B) script C) storyboard D) storyline E) action plan Answer: C Diff: 1 Page Ref: 282 Skill: Concept AACSB: Communication abilities Objective: 9-4

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68) What is the most common form of online advertising?

A) superstitials B) pop-ups C) mobile ads D) testimonials E) banner ads Answer: E Diff: 2 Page Ref: 282 Skill: Concept AACSB: Use of information technology Objective: 9-5 69) Banner ads normally invite viewers to click on the banner to link to an ad or the advertiser's home page. The effectiveness of such efforts is monitored in part by the number of ________.

A) write-ins B) readers C) visuals D) key words E) click-throughs Answer: E Diff: 1 Page Ref: 283 Skill: Concept AACSB: Use of information technology Objective: 9-5 70) Which of the following statements is false regarding copywriting in a global environment?

A) English is more economical than many other languages.

B) Standardizing the copy content by translating the appeal into the language of the foreign market is fraught with possible communication blunders.

C) Most international campaigns are not literally translated.

D) A back translation of the ad copy from the foreign language into the domestic one is always a good idea because it conveys a complete cultural interpretation.

E) The most reasonable solution to the language problem is to use bilingual copywriters who understand the full meaning of the English text and can capture the essence of the message in the second language.

Answer: D Diff: 2 Page Ref: 284 Skill: Concept AACSB: Multicultural and diversity understanding Objective: 9-5

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71) If a message tries to convey abstract qualities, such as justice and quality, words tend to communicate these concepts more easily than pictures.

Answer: TRUE Diff: 2 Page Ref: 261 Skill: Concept AACSB: Communication abilities Objective: 9-1 72) The person who shapes and sculpts the words in an advertisement is called the creative director.

Answer: FALSE Diff: 1 Page Ref: 261 Skill: Concept AACSB: Communication abilities Objective: 9-1 73) Effective copy is succinct and single-minded.

Answer: TRUE Diff: 3 Page Ref: 263 Skill: Concept AACSB: Communication abilities Objective: 9-1 74) One tip for writing effective copy is to use evocative or figurative language to build a picture in the consumer's mind.

Answer: TRUE Diff: 2 Page Ref: 263 Skill: Concept AACSB: Communication abilities Objective: 9-1 75) Formulaic advertising copy, called adese, violates guidelines for writing effective copy described in this chapter.

Answer: TRUE Diff: 2 Page Ref: 265 Skill: Concept AACSB: Communication abilities Objective: 9-1 76) The two categories of copy in print advertising are display copy and body copy.

Answer: TRUE Diff: 2 Page Ref: 265 Skill: Concept AACSB: Communication abilities Objective: 9-2

23 .

77) Display copy includes the elements that are designed to be read and absorbed, such as the text of the ad message and captions.

Answer: FALSE Diff: 1 Page Ref: 265 Skill: Concept AACSB: Communication abilities Objective: 9-2 78) Good headlines interrupt readers' scanning and get their attention, present the selling premise, and lead to conviction.

Answer: FALSE Diff: 2 Page Ref: 268 Skill: Concept AACSB: Communication abilities Objective: 9-2 79) An assertion headline politely tells the reader to do something.

Answer: FALSE Diff: 2 Page Ref: 268 Skill: Concept AACSB: Communication abilities Objective: 9-2 80) Association headlines use image and lifestyle to get attention and build interest.

Answer: TRUE Diff: 2 Page Ref: 269 Skill: Concept AACSB: Communication abilities Objective: 9-2 81) Subheads are short, catchy, and particularly memorable phrases used at the end of an ad to complete or wrap up the creative idea.

Answer: FALSE Diff: 1 Page Ref: 270 Skill: Concept AACSB: Communication abilities Objective: 9-2 82) The literary technique of parallel construction uses repetition of sounds.

Answer: FALSE Diff: 3 Page Ref: 271 Skill: Concept AACSB: Communication abilities Objective: 9-2

24 .

83) The two paragraphs that get the most attention in body copy are the lead and the follow-up paragraph.

Answer: FALSE Diff: 2 Page Ref: 272 Skill: Concept AACSB: Communication abilities Objective: 9-2 84) All print ads end with a call to action with instructions on how to respond.

Answer: FALSE Diff: 2 Page Ref: 272 Skill: Concept AACSB: Communication abilities Objective: 9-2 85) The most important characteristic of copywriting for outdoor advertising is brevity.

Answer: TRUE Diff: 2 Page Ref: 274 Skill: Concept AACSB: Communication abilities Objective: 9-2 86) Experts suggest that copywriters use no less than 20 words in outdoor advertising copy.

Answer: FALSE Diff: 3 Page Ref: 274 Skill: Concept AACSB: Communication abilities Objective: 9-2 87) The tools of radio copywriting include voice, music, and sound effects.

Answer: TRUE Diff: 2 Page Ref: 275 Skill: Concept AACSB: Communication abilities Objective: 9-3 88) The most important element in radio advertising is the human voice.

Answer: TRUE Diff: 2 Page Ref: 275 Skill: Concept AACSB: Communication abilities Objective: 9-3

25 .

89) Radio advertising relies on conversational style and vernacular language.

Answer: TRUE Diff: 2 Page Ref: 275 Skill: Concept AACSB: Communication abilities Objective: 9-3 90) Slang is usually effective in radio advertising.

Answer: FALSE Diff: 3 Page Ref: 275 Skill: Concept AACSB: Communication abilities Objective: 9-3 91) Storytelling is one way that copywriters can present action in a television commercial more powerfully than in other media.

Answer: TRUE Diff: 2 Page Ref: 277 Skill: Concept AACSB: Communication abilities Objective: 9-4 92) Television copywriters have two primary toolkits: video and audio.

Answer: TRUE Diff: 2 Page Ref: 278 Skill: Concept AACSB: Communication abilities Objective: 9-4 93) Music serves the same function in both radio and television advertising.

Answer: FALSE Diff: 2 Page Ref: 278 Skill: Concept AACSB: Communication abilities Objective: 9-4 94) Commercials shot outside the studio are said to be filmed on set, which means the entire crew and cast are transported somewhere away from the studio.

Answer: FALSE Diff: 2 Page Ref: 280 Skill: Concept Objective: 9-4

26 .

95) The people appearing in a television commercial are referred to as the talent.

Answer: TRUE Diff: 1 Page Ref: 280 Skill: Concept Objective: 9-4 96) The key set is what sticks in the mind and becomes the image that viewers remember when they think about the commercial.

Answer: FALSE Diff: 2 Page Ref: 281 Skill: Concept AACSB: Communication abilities Objective: 9-4 97) The storyboard is the visual plan or layout of the commercial.

Answer: TRUE Diff: 1 Page Ref: 282 Skill: Concept AACSB: Communication abilities Objective: 9-4 98) One way to make banner ads more effective is to change the offer frequently, perhaps even daily.

Answer: TRUE Diff: 2 Page Ref: 283 Skill: Concept AACSB: Use of information technology Objective: 9-5 99) The principles of good copywriting are not really applicable to web ads.

Answer: FALSE Diff: 2 Page Ref: 283 Skill: Concept AACSB: Communication abilities Objective: 9-5 100) Standardizing the copy content by translating the appeal to the language of the foreign market is fraught with possible communication blunders.

Answer: TRUE Diff: 1 Page Ref: 283-284 Skill: Concept AACSB: Multicultural and diversity understanding Objective: 9-5

27 .

101) The more elaborate the copy, the greater its impact is likely to be.

Answer: FALSE Diff: 2 Page Ref: 263 Skill: Application AACSB: Reflective thinking skills Objective: 9-1 102) Incorrect grammar has no place in advertising copy.

Answer: FALSE Diff: 2 Page Ref: 264 Skill: Application AACSB: Reflective thinking skills Objective: 9-1 103) "Your-name-here-copy" is most effectively used in corporate advertising.

Answer: FALSE Diff: 2 Page Ref: 265 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 9-1 104) "Pork. The other white meat" is an example of a slogan that cues the product.

Answer: TRUE Diff: 2 Page Ref: 271 Skill: Application AACSB: Analytic skills Objective: 9-2 105) Because of the clutter in newspapers, the copy in newspaper advertisements has to work harder than other kinds of advertising to catch the attention of its audience.

Answer: FALSE Diff: 3 Page Ref: 273 Skill: Application AACSB: Reflective thinking skills Objective: 9-2 106) Compare and contrast display copy and body copy.

Answer: The two categories of copy that print advertising uses are display copy and body copy (or text). Display copy includes all elements that readers see in their initial scanning. These elements –headlines, subheads, call-outs, taglines, and slogans –usually are set in larger type sizes than body copy and are designed to get attention and to stop the viewer's scanning. Body copy includes the elements that are designed to be read and absorbed, such as the text of the ad message and captions.

Diff: 2 Page Ref: 265-266 Skill: Synthesis AACSB: Communication abilities Objective: 9-2 28 .

107) Name and describe the types of direct- and indirect-action headlines.

Answer: Types of direct-action headlines: (1) Assertion –States a claim or a promise that will motivate someone to try the product.

(2) Command –Politely tells the reader to do something.

(3) How-To Heads –People are rewarded for investigating a product when the message tells them how to use it or how to solve a problem.

(4) News Announcements –Used with new-product introductions, but also with changes, reformulations, new styles, and new uses. The news value is thought to get attention and motivate people to try the product.

Types of indirect-action headlines: (1) Puzzles –Used strictly for their curiosity and provocative power. Puzzling statements, ambiguities, and questions require the reader to examine the body copy to get the answer or explanation. The intention is to pull readers into the body copy.

(2) Associations –Use image and lifestyle to get attention and build interest.

Diff: 3 Page Ref: 268-269 Skill: Synthesis AACSB: Reflective thinking skills Objective: 9-2 108) Name and describe the five standard approaches to writing body copy in print ads.

Answer: (1) Straightforward –Factual copy usually written in the words of an anonymous or an unacknowledged source.

(2) Narrative –tells a story in first person or third person.

(3) Dialogue –Lets the reader "listen in" on a conversation.

(4) Explanation –Explains how something works.

(5) Translation –Technical information, such as that written for the high-tech and medical industries, must be defined and translated into understandable language.

Diff: 3 Page Ref: 272 Skill: Synthesis AACSB: Reflective thinking skills Objective: 9-2

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109) Compare and contrast copywriting for radio and copywriting for television.

Answer: Because radio is a transitory medium, the ability of the listener to remember facts is difficult, so copywriters repeat the key points of brand name and identification information.

Radio is pervasive in that it surrounds many of our activities, but it is seldom the listener's center of attention and usually in the background. Radio's special advantage, referred to as theater of the mind, is that the story is visualized in the listener's imagination. The copywriter has all the theatrical tools of voices, sound effects, and music, but no visuals. The most important element in radio advertising is voices, which are heard in jingles, spoken dialogue, and announcements.

Radio advertising also relies on conversational style and vernacular language. Guidelines for writing effective radio copy include: (1) Keep it personal (2) Speak to listeners' interests (3) Wake up the inattentive (4) Make it memorable (5) Include call to action (6) Create image transfer Television copywriters understand that it is the moving image, the action, which makes television so much more engaging than other media. The challenge for the writer is to fuse the images with the words to present not only a creative concept, but also a story. One of the strengths of television, then, is its ability to reinforce verbal messages with visuals or reinforce visuals with verbal messages. Viewers watching a program they enjoy often are absorbed to a degree only slightly less than that experienced by people watching a movie in a darkened theater.

Effective television commercials can achieve this level of audience absorption if they are written to maximize the dramatic aspects of moving images and storytelling. Television copywriters have two primary tools: their audio and visual toolkits.

Diff: 3 Page Ref: 275-280 Skill: Synthesis AACSB: Communication abilities Objective: 9-3

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110) What is the most common form of Internet advertising, and what must the copywriter think about when developing these ads?

Answer: The most common form of online advertising is small banner ads containing text, images, and perhaps animation. The key to stopping surfers is vivid graphics and clever phrases.

To grab the surfer, the copywriter must think about: (1) Offering a deal that promises a discount or a freebie as a prize.

(2) Using an involvement device such as a challenge or contest.

(3) Changing the offer frequently, perhaps even daily. One of the reasons people surf the Net is to find out what's happening now.

(4) Keeping the writing succinct because most surfers have short attention spans and get bored easily.

(5) Focusing surfers' attention by asking provocative questions or offering knowledge they can use.

(6) Using the advertisement to solicit information and options from users as part of the research.

Diff: 3 Page Ref: 282-283 Skill: Synthesis AACSB: Use of information technology Objective: 9-5 111) As described in the chapter's opening vignette, what tagline captured the Big Idea in the campaign for Chick-fil-A? A) Cows for Chick-fil-A B) Chicken is good food C) Finger Lickin' Good D) Eat Mor Chikin E) America's Best Loved Chicken Sandwich Answer: D Diff: 2 Page Ref: 259 Skill: Application AACSB: Communication abilities Objective: 9-1 112) Gwen was an English major in college and took a job at an advertising agency after she graduated. She knows the meanings and derivations, as well as the moods and feelings, of words and the reverberations and vibrations they create in a reader's mind. Her job is to shape and sculpt the words in an advertisement. Gwen works as a(n) ________.

A) art director B) creative director C) copywriter D) wordsmith E) proofreader Answer: C Diff: 2 Page Ref: 261 Skill: Application AACSB: Reflective thinking skills Objective: 9-1 31 .

113) Michelle just got her first job as a copywriter. Which of the following is NOT a characteristic of writing effective copy that Michelle should use?

A) be succinct B) get personal C) be conversational D) use variety E) use gimmicks Answer: E Diff: 2 Page Ref: 263 Skill: Application AACSB: Reflective thinking skills Objective: 9-1 114) Which of the following is the most accurate statement about humor in advertising?

A) The goal is to generate awareness and recall of a simple message.

B) If the ad is funny enough, what it's advertising is less important.

C) The target audience for funny ads is mainly middle-aged women.

D) Humor works best in print.

E) The audience should have a high need for cognition.

Answer: A Diff: 2 Page Ref: 264 Skill: Application AACSB: Communication abilities Objective: 9-1 115) An advertisement for an exercise bike exclaimed "Get fit as a fiddle!" Which of the following best describes this copy?

A) adese B) parallel construction C) brag-and-boast copy D) your-name-here copy E) rhyme Answer: A Diff: 3 Page Ref: 265 Skill: Application AACSB: Analytic skills Objective: 9-1

32 .

116) A print ad for Wonder Bread used a picture of a little boy with sentences floating around him and arrows pointing to various parts of his body. Each arrow was accompanied by a statement about how Wonder Bread helps a specific body part. These sentences and lines pointing to the various parts of the visual are known as ________.

A) overlines B) underlines C) body copy D) call-outs E) cut-outs Answer: D Diff: 2 Page Ref: 267 Skill: Application AACSB: Analytic skills Objective: 9-2 117) The advertising agency for Ford Focus wants to test which of the two headlines it is considering for a magazine ad will have the greatest impact on the target audience. What kind of test can the agency conduct to determine this?

A) end-run testing B) headline test C) split-run test D) dual test E) direct test Answer: C Diff: 2 Page Ref: 268 Skill: Application AACSB: Reflective thinking skills Objective: 9-2 118) A headline for a magazine ad states "Lose up to 10 pounds this weekend!" Which type of headline does this best represent?

A) command B) news announcement C) association D) assertion E) promise Answer: D Diff: 2 Page Ref: 268 Skill: Application AACSB: Reflective thinking skills Objective: 9-2

33 .

119) A Johnson & Johnson campaign for the company's "Healthy People" initiative includes posters with the headline "Keep your spirit pure" with no more information in the headline. This is an example of an indirect headline or a(n) ________ headline.

A) how-to B) blind C) action D) target E) identifying Answer: B Diff: 2 Page Ref: 269 Skill: Application AACSB: Analytic skills Objective: 9-2 120) For several years, Nike included the phrase "Just Do It" in all of its advertisements, print and television. This phrase is an example of a(n) ________.

A) caption B) underline C) slogan D) call-out E) body copy Answer: C Diff: 2 Page Ref: 270 Skill: Application AACSB: Analytic skills Objective: 9-2 121) George just finished writing the copy for a pamphlet detailing the healthy food options at a chain of fast food restaurants. The pamphlet will be available at the counter of each restaurant, giving customers the opportunity to find out more about the health value of different meal combinations before they order. George has written ________.

A) underline material B) taglines C) collateral material D) slogans E) overline material Answer: C Diff: 2 Page Ref: 274 Skill: Application AACSB: Analytic skills Objective: 9-2

34 .

122) A car insurance company has a successful and popular television commercial. The company would like to expand its advertising to radio, building on the momentum of its television campaign. What technique should the company use to convey its television ad on the radio?

A) keep it personal B) speak to listeners' interests C) make it memorable D) image transfer E) call to action Answer: D Diff: 3 Page Ref: 277 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 9-3 123) What element is essential in visual storytelling, as shown in audience reactions to the video of Susan Boyle on Britain's Got Talent?

A) animation B) element of surprise C) beautiful visuals D) emotional engagement E) positive feedback Answer: D Diff: 2 Page Ref: 279 Skill: Application AACSB: Reflective thinking skills Objective: 9-4 124) Vardaman Toyota routinely shoots television commercials in its car lot rather than in a studio. These commercials are shot ________.

A) off-script B) on-location C) out-back D) off-frame E) off-lot Answer: B Diff: 2 Page Ref: 280 Skill: Application AACSB: Analytic skills Objective: 9-4

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125) Howard Computers is a manufacturer of portable medical laptop computers, which are more technical than a typical laptop computer. Howard Computers will be advertising in trade and medical professional publications. Which approach to writing body copy would be most appropriate for this product and target market?

A) parallel construction B) narrative C) dialogue D) rhythm and alliteration E) translation Answer: E Diff: 2 Page Ref: 272 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 9-2 126) If a company wants to advertise in a print medium that is unintrusive, straightforward, and informative, what medium should it choose?

A) newspaper B) television C) radio D) poster E) billboard Answer: A Diff: 2 Page Ref: 273 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 9-2

36 .

Refer to the following scenario to answer the questions below.

Travelocity.com is an online travel agency that advertises that users will get the best prices on airfare, hotels, and rental cars. Travelocity.com uses the "Traveling Gnome" in its television commercials, often in humorous situations. For example, a recent ad showed the gnome in Europe where he plugged an American appliance (i.e., hair dryer) into a socket and was shocked across the room. All that was shown of him when the smoke cleared was the top of his gnome hat down behind a chair, and he said, "Am I going to die?"

127) The "Traveling Gnome" is most accurately classified as which of the following?

A) announcer B) spokesperson C) character type D) celebrity E) talking head Answer: B Diff: 3 Page Ref: 280 Skill: Application AACSB: Analytic skills Objective: 9-4 128) Most audience members who see this commercial remember the image of the Traveling Gnome being jolted across the room. This visual is known as a(n) ________.

A) action point B) visual point C) key visual D) key frame E) primary frame Answer: D Diff: 2 Page Ref: 281 Skill: Application AACSB: Analytic skills Objective: 13-4 129) When a new concept and execution is developed for a television commercial, Travelocity.com's advertising agency provides a visual plan or layout of the commercial for the company to approve. This plan is called a(n) ________.

A) storyboard B) scene-by-scene plan C) script D) action plan E) progression sheet Answer: A Diff: 2 Page Ref: 282 Skill: Application AACSB: Analytic skills Objective: 9-4 37 .

130) Because Travelocity.com is an online travel agency, it's only natural that it would use web advertising, particularly banner ads. The banner ads offered a discount for first-time users. What online copywriting strategy is this employing?

A) focusing surfers' attention B) using an involvement device C) changing the offer frequently D) keeping the writing succinct E) offering a deal Answer: E Diff: 2 Page Ref: 283 Skill: Application AACSB: Analytic skills Objective: 9-5 131) Describe the Chick-fil-A campaign that was described in the chapter's opening vignette.

Answer: The "Eat Mor Chickin" campaign featured cows encouraging people to eat more chicken rather than burgers.

Diff: 2 Page Ref: 259 Skill: Synthesis AACSB: Reflective thinking skills Objective: 9-1 132) List five characteristics for writing effective copy that were given in the chapter.

Answer: Students can list any five of the following: (1) Be succinct.

(2) Be single-minded.

(3) Be specific.

(4) Get personal.

(5) Keep a single focus.

(6) Be conversational.

(7) Be original.

(8) Use variety.

(9) Use imaginative description.

Diff: 2 Page Ref: 263 Skill: Synthesis AACSB: Reflective thinking skills Objective: 9-1

38 .

133) Toni is a copywriter for several clients' accounts. Regardless of the campaign, she falls back on general principles that guide her development of headlines for ads. Discuss two general principles that she likely uses when developing a headline for an ad.

Answer: Because headlines are so important, some general principles guide their development and explain the particular functions they serve: (1) A good headline will attract only those who are prospects; there is no sense in attracting people who are not in the market.

(2) The headline must work in combination with the visual to stop and grab the reader's attention.

(3) The headline must also identify the product and brand, and start the sale. The selling premise should be evident in the headline.

(4) The headline should lead readers into the body copy.

Diff: 2 Page Ref: 268 Skill: Synthesis AACSB: Reflective thinking skills Objective: 9-2 134) A magazine ad for Aveeno moisturizing lotion states, "Get healthy skin for life." Identify and describe the type of headline this illustrates.

Answer: This is an example of a direct-action headline known as assertion. An assertion is a headline that states a claim or a promise that will motivate someone to try the product.

Diff: 3 Page Ref: 268 Skill: Application AACSB: Reflective thinking skills Objective: 9-2 135) A magazine ad for Geico car insurance asks, "How Could You Save Over $200 on Car Insurance?" with a subhead of "The answer is @ your fingertips." The ad then goes on to explain how in just minutes you can get an accurate quote when you visit Geico's web site. Identify and describe the type of headline this illustrates.

Answer: This is an example of a direct-action headline and is best described as a how-to headline. With a how-to headline, people are rewarded for investigating a product when the message tells them how to use it or how to solve a problem. However, an argument can be made that this is also an example of an assertion headline, which is one that states a claim or a promise that will motivate someone to try the product.

Diff: 3 Page Ref: 268 Skill: Application AACSB: Reflective thinking skills Objective: 9-2

39 .

136) You are going to lead the creative team in coming up with a new slogan for a client. List three techniques copywriters use to create catchy slogans.

Answer: Techniques for creating catchy slogans: (1) Direct Address (2) Startling or Unexpected Phrase (3) Rhyme, Rhythm, Alliteration –Uses repetition of sounds (4) Parallel Construction –Uses repetition of the structure of a sentence or phrase (5) Cue for the Product (6) Music (7) Combination of the above techniques Diff: 2 Page Ref: 271 Skill: Synthesis AACSB: Reflective thinking skills Objective: 9-2 137) What is a major advantage of newspaper advertising?

Answer: Newspaper advertising is one of the few types of advertising that is not considered intrusive because people consult the paper as much to see what is on sale as to find out what is happening. For this reason, the copy does not have to work as hard as other kinds of advertising to catch attention. The ads don't have to entertain, and most copy is straightforward, informative, and brief.

Diff: 2 Page Ref: 273 Skill: Synthesis AACSB: Reflective thinking skills Objective: 9-2 138) What is an advantage of magazine advertising over newspaper advertising?

Answer: Magazines offer better-quality ad production. Ads can be more informative and carry longer copy than do newspapers.

Diff: 2 Page Ref: 273 Skill: Synthesis AACSB: Reflective thinking skills Objective: 9-2 139) What kind of writing should a copywriter use when creating an ad that will be placed in a directory?

Answer: For directory advertising, it's advisable to use a headline that focuses on the service or store personality unless the store's name is a descriptive phrase. Complicated explanations don't work well because there is little space. It is not wise to include information that is subject to change because the directory is published only once a year.

Diff: 2 Page Ref: 273 Skill: Synthesis AACSB: Reflective thinking skills Objective: 9-2

40 .

140) Describe the purpose of product literature. What are the identifying characteristics of product literature?

Answer: Product literature (or collateral material) is used in support of an advertising campaign.

Brochures and pamphlets and other materials provide details about a product, company, or event.

Typically, product literature is a heavy-copy format, or at least a format that provides room for explanatory details along with visuals; the body copy may dominate the piece.

Diff: 3 Page Ref: 273 Skill: Synthesis AACSB: Reflective thinking skills Objective: 9-2 141) Bob is a sales representative for a local radio station, but he also helps advertisers with the copy for their ads. What are the main tools Bob has to work with when developing copy for radio commercials and how are they used?

Answer: In radio advertising, the tools are the audio elements: voice, music, and sound effects.

The most important element is voices. Music can be used behind the dialogue to create a mood or establish a setting. Sound effects are described in radio script and are important in making a commercial attention-getting and memorable.

Diff: 2 Page Ref: 275 Skill: Synthesis AACSB: Reflective thinking skills Objective: 9-3 142) What are some of the guidelines for writing effective radio commercials that address the distinctive characteristics of radio advertising?

Answer: The guidelines discussed in the text are: (1) Keep it personal (2) Speak to listeners' interests (3) Wake up the inattentive (4) Make it memorable (5) Include call to action (6) Create image transfer Diff: 2 Page Ref: 276-277 Skill: Synthesis AACSB: Reflective thinking skills Objective: 9-3 143) Storytelling is one way that copywriters can present action in a television commercial more powerfully than in other media. Discuss the characteristics of storytelling and message design.

Answer: Most of the programming on television is narrative, so commercials use storytelling to take advantage of the medium's strength. TV can dramatize the situation in which a product is used and the type of people using it. Stories can be riveting if they are well told, but they must be imaginative to hold their own against the programming that surrounds them.

Diff: 2 Page Ref: 278 Skill: Synthesis AACSB: Reflective thinking skills Objective: 9-4 41 .

144) Jane is interning at an advertising agency for the summer, and she is assisting a television copywriter named Harold. To help her get started, Harold provides her with some general principles that are relevant for most effective television commercials. List three of the principles he could have discussed with her.

Answer: Students can discuss any of the following three: (1) What's the Big Idea you need to get across?

(2) What's the benefit of that Big Idea, and who does it benefit?

(3) How can you turn that benefit into a visual element?

(4) Gain the interest of your viewer at the beginning; the first three seconds are critical.

(5) Focus on a key visual, a scene that encapsulates your entire selling message into one neat package.

(6) Be single-minded –Tell one important story per commercial.

(7) Observe the rules of good editing.

(8) Try to show the product in close-up at the end.

Diff: 2 Page Ref: 281 Skill: Synthesis AACSB: Reflective thinking skills Objective: 9-4 145) Rob has been writing advertising copy for magazine ads for many years, but now he wants to venture into writing copy for web ads. Explain how writing for the web is going to be different for Rob. Answer: The web is more interactive than any other medium. Not only does the viewer initiate the contact, but viewers can send e-mail on many, if not most, web sites. This makes web advertising more like two-way communication, and that's a major point of difference from other advertising forms.

Diff: 3 Page Ref: 282-283 Skill: Synthesis AACSB: Reflective thinking skills Objective: 9-5 146) Discuss problems advertisers might face when translating copy into another language. How can these problems be addressed?

Answer: Headlines in any language often rely on a play on words, themes that are relevant to one country, or slang. Because these verbal techniques don't cross borders well, copywriters must remove them from the advertising unless the meaning or intent can be re-created in other languages. For this reason, international campaigns are not literally translated. A back translation of the ad copy from the foreign language into the domestic one is always a good idea, but it never conveys a complete cultural interpretation.

Diff: 3 Page Ref: 283-284 Skill: Synthesis AACSB: Multicultural and diversity understanding Objective: 9-5

42 .

Refer to the passage below to answer the following questions.

Advertisements for a particular brand of soap include the phrase, "Love the skin you're in." Print ads usually show a close-up of a young woman's clean face, and the copy is usually written as if she is telling the reader the benefits of this soap. She explains how soft your skin will feel and how much you will love that feeling. The copy of this ad was translated into several foreign languages so that it could be used globally. However, German women thought it was strange to use the word love in reference to something other than another person.

147) The phrase "Love the skin you're in" appears in every ad for this product. Explain what element of copy this represents.

Answer: This represents a slogan, which is a distinctive catch phrase that serves as a motto for a campaign, brand, or company. It is used across a variety of marketing communication messages and over an extended period of time. Slogans, which are repeated from ad to ad as part of a campaign or a long-term brand identity effort, also may be used as taglines.

Diff: 2 Page Ref: 270 Skill: Synthesis AACSB: Reflective thinking skills Objective: 9-2 148) One copy element of the print ad explained the effect this brand of soap had on the young woman's skin structure, which is what allows skin to feel so soft after using this soap. An arrow was used to connect the explanation to the skin on her cheek. What type of copy element does this represent?

Answer: Call-outs are sentences that float around the visual (i.e., the young woman's face), usually with a line or arrow pointing to some specific element (i.e., her skin) in the visual that they name and explain.

Diff: 2 Page Ref: 267 Skill: Application AACSB: Analytic skills Objective: 9-2 149) Which standard approach to writing body copy does this print ad represent?

Answer: This example is best described as narrative because it tells a story in the first person.

Diff: 2 Page Ref: 272 Skill: Application AACSB: Analytic skills Objective: 9-2 150) Explain why this ad was less well received in Germany than in the United States.

Answer: The word love may be used differently in Germany; it may not typically be used to refer to things rather than people.

Diff: 3 Page Ref: 283-284 Skill: Critical Thinking AACSB: Multicultural and diversity understanding Objective: 9-5 43 .

Advertising & IMC: Principles and Practice, 9e (Moriarty) Chapter 10 Visual Communication 1) Which of the following is NOT a key reason designers focus on the use of visuals in advertising?

A) anchor associations B) cement belief C) communicate quickly D) replace copy E) tell interesting stories Answer: D Diff: 2 Page Ref: 291 Skill: Concept AACSB: Communication abilities Objective: 10-1 2) In most marketing communication, the power to get attention lies primarily with the ________.

A) visual B) audio C) script D) copy E) sound effects Answer: A Diff: 2 Page Ref: 291 Skill: Concept AACSB: Communication abilities Objective: 10-1 3) Who is the person most responsible for designing images that tell stories and create brand impressions in an advertisement?

A) copywriter B) art director C) producer D) designer E) photographer Answer: B Diff: 2 Page Ref: 292 Skill: Concept Objective: 10-1

1 .

4) A(n) ________ is the imprint used for immediate identification of a brand or company.

A) icon B) logo C) brand image D) design E) thumbnail Answer: B Diff: 1 Page Ref: 295 Skill: Concept Objective: 10-1 5) Images from collections of copyright-free art that anyone who buys the service can use are known as ________.

A) sepia images B) die-cut images C) process images D) public art E) clip art Answer: E Diff: 1 Page Ref: 296 Skill: Concept Objective: 10-2 6) Copywriters and art directors who imagine what the finished ad might look like are engaged in ________.

A) visualization B) dubbing C) post production D) stop action E) surrealism Answer: A Diff: 1 Page Ref: 296 Skill: Concept Objective: 10-2 7) Which of the following is NOT included in the art director's toolkit for print advertising?

A) photos B) illustrations C) typefaces D) layout E) dubbing Answer: E Diff: 2 Page Ref: 296 Skill: Concept Objective: 10-2

2 .

8) When art directors use the word art, they usually mean ________.

A) photographs B) illustrations C) color D) A and B E) A, B, and C Answer: D Diff: 2 Page Ref: 296 Skill: Concept Objective: 10-2 9) Which of the following statements about photographs and illustrations is false?

A) Most people feel that photographs lie because it is so easy to alter them with computer technology.

B) A photograph is more realistic and an illustration is more fanciful.

C) Illustrations eliminate many of the details you see in a photograph.

D) Illustrations can focus attention on key details of the image.

E) Illustrations can intensify meanings and moods.

Answer: A Diff: 2 Page Ref: 296 Skill: Concept AACSB: Communication abilities Objective: 10-2 10) Which of the following is a reason color is used in advertisements?

A) attract attention B) provide realism C) establish moods D) build brand identity E) all of the above Answer: E Diff: 1 Page Ref: 298 Skill: Concept AACSB: Communication abilities Objective: 10-2 11) The use of _______ lends a dignity and sophistication to a visual.

A) full color B) spot color C) blue and yellow D) red and orange E) black and white Answer: E Diff: 2 Page Ref: 300 Skill: Concept AACSB: Communication abilities Objective: 10-2 3 .

12) A second color used in addition to black-and-white is known as ________.

A) mono color B) single color C) spot color D) limited color E) contrast color Answer: C Diff: 2 Page Ref: 300 Skill: Concept Objective: 10-2 13) Warm colors such as red, yellow, and orange convey ________.

A) intellect B) alarm C) danger D) happiness E) aloofness Answer: D Diff: 2 Page Ref: 300 Skill: Concept AACSB: Communication abilities Objective: 10-2 14) What colors should an art director use if he or she wants to bring a friendly tone to an ad?

A) deep blues and greens B) yellow and red C) cool colors D) warm colors E) pastel colors Answer: E Diff: 2 Page Ref: 300 Skill: Concept AACSB: Communication abilities Objective: 10-2 15) The appearance of an ad's printed matter in terms of the style and size of typefaces is known as ________.

A) medium B) typography C) layout D) design E) classification Answer: B Diff: 1 Page Ref: 300 Skill: Concept Objective: 10-2 4 .

16) The primary function of ________ is to convey the words of the message.

A) typography B) aesthetics C) unity D) balance E) measurement Answer: A Diff: 2 Page Ref: 300 Skill: Concept AACSB: Communication abilities Objective: 10-2 17) What are the two major typeface families?

A) point and font B) face and size C) serif and sans serif D) justified and unjustified E) Times Roman and Times Answer: C Diff: 3 Page Ref: 301 Skill: Concept Objective: 10-2 18) Which of the following is NOT an aspect of typeface selection that designers must work with?

A) digitization B) capitalization C) lowercase D) legibility E) weight Answer: A Diff: 3 Page Ref: 301 Skill: Concept Objective: 10-2 19) How type relates to the margin is known as ________.

A) weight B) posture C) points D) justification E) legibility Answer: D Diff: 2 Page Ref: 301 Skill: Concept Objective: 10-2

5 .

20) The ________ of type refers to how easy it is to perceive the letters.

A) legibility B) point C) pica D) justification E) typography Answer: A Diff: 1 Page Ref: 302 Skill: Concept Objective: 10-2 21) The typography presentation of white letters written on a dark background is known as ________.

A) reverse type B) negative type C) white space D) surprinting E) ornamental type Answer: A Diff: 2 Page Ref: 301 Skill: Concept Objective: 10-2 22) Whether or not to use italic lettering is a(n) ________ decision.

A) typeface B) font C) surprinting D) typesize E) alignment Answer: A Diff: 2 Page Ref: 301 Skill: Concept Objective: 10-2 23) Which of the following does NOT hinder the legibility of print ads?

A) reverse type B) all capitals C) left justification D) ornamental type E) surprinted type Answer: C Diff: 2 Page Ref: 301 Skill: Concept AACSB: Communication abilities Objective: 10-2

6 .

24) Running the type over another image in a print ad is known as ________.

A) reverse type B) surprinting C) over-printing D) bleed through E) nonlinear type Answer: B Diff: 2 Page Ref: 301 Skill: Concept Objective: 10-2 25) Which of the following is a design principle that guides designers as they lay out an ad?

A) direction B) dominance C) unity D) balance E) all of the above Answer: E Diff: 2 Page Ref: 302 Skill: Concept AACSB: Communication abilities Objective: 10-2 26) Which design principle describes how all of the elements in an ad come together?

A) unity B) oneness C) simplicity D) direction E) proportion Answer: A Diff: 2 Page Ref: 302 Skill: Concept AACSB: Communication abilities Objective: 10-2 27) The saying "KISS" refers to the design principle of ______.

A) unity B) movement C) simplicity D) direction E) proportion Answer: C Diff: 2 Page Ref: 302 Skill: Concept AACSB: Communication abilities Objective: 10-2 7 .

28) A plan that imposes order and at the same time creates an arrangement that is aesthetically pleasing in a print ad is called a(n) ________.

A) action plan B) creative plan C) layout D) storyboard E) thumbnail sketch Answer: C Diff: 1 Page Ref: 303 Skill: Concept Objective: 10-2 29) Which of the following layouts uses a single dominant visual that occupies about 60 to 70 percent of the ad's space?

A) picture window B) all art C) dominant type D) panel E) grid Answer: A Diff: 2 Page Ref: 303 Skill: Concept Objective: 10-2 30) Which of the following is NOT a common type of ad layout?

A) picture window B) circus C) dominant type D) nonlinear E) jumbled Answer: E Diff: 2 Page Ref: 303 Skill: Concept Objective: 10-2 31) A layout that uses a number of visuals of matched or proportional sizes is known as ________.

A) picture window B) nonlinear C) dominant type D) panel or grid E) symmetrical Answer: D Diff: 2 Page Ref: 303 Skill: Concept Objective: 10-2 8 .

32) A contemporary style of layout that can be read starting at any point in the image is known as ________.

A) circus B) panel or grid C) jumbled D) picture window E) nonlinear Answer: E Diff: 2 Page Ref: 303 Skill: Concept Objective: 10-2 33) A ________ layout type may have art, but it is either embedded in the copy or placed in a subordinate position.

A) copy dominant B) circus C) panel D) nonlinear E) picture window Answer: A Diff: 2 Page Ref: 303 Skill: Concept Objective: 10-2 34) A ________ layout combines lots of elements to deliberately create a busy image.

A) dominant B) circus C) panel D) nonlinear E) circular Answer: B Diff: 2 Page Ref: 303 Skill: Concept Objective: 10-2 35) A(n) ________ layout type emphasizes the type rather than the art.

A) all copy B) circus C) panel D) nonlinear E) picture window Answer: A Diff: 2 Page Ref: 303 Skill: Concept Objective: 10-2

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36) Which of the following is NOT a stage in the normal development of a print ad?

A) storyboard B) thumbnail sketches C) rough layouts D) semicomps E) All of the above are stages in the normal development of a print ad.

Answer: A Diff: 3 Page Ref: 304 Skill: Concept Objective: 10-2 37) Quick, miniature, preliminary sketches are known as ________.

A) rough layouts B) semicomps C) storyboards D) thumbnail sketches E) mechanicals Answer: D Diff: 1 Page Ref: 304 Skill: Concept Objective: 10-2 38) In which layout stage of a print ad are the elements assembled in their final position for reproduction?

A) thumbnail sketches B) comprehensives C) mechanicals D) rough layouts E) semicomps Answer: C Diff: 1 Page Ref: 304 Skill: Concept Objective: 10-2 39) Which of the following refers to the way elements in a picture are arranged or framed through a camera lens?

A) balance B) direction C) composition D) function E) movement Answer: C Diff: 1 Page Ref: 304-305 Skill: Concept Objective: 10-2

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40) Inexpensive, rough-surfaced, spongy paper that quickly absorbs ink on contact is known as ________.

A) quick paper B) newsprint C) die cut paper D) halftoned paper E) registered paper Answer: B Diff: 1 Page Ref: 305 Skill: Concept AACSB: Communication abilities Objective: 10-3 41) Color that aligns exactly with the image in a print ad is said to be ________.

A) registered B) justified C) halftoned D) screened E) centered Answer: A Diff: 1 Page Ref: 305 Skill: Concept AACSB: Communication abilities Objective: 10-3 42) For impact, colors on a billboard should have maximum ________.

A) variety B) unity C) contrast D) shadowing E) separation Answer: C Diff: 2 Page Ref: 305 Skill: Concept AACSB: Communication abilities Objective: 10-2

11 .

43) In an outdoor board, typography should be ________.

A) contrasted with the background B) contrasted with the foreground C) complex D) all-capital letters E) uncluttered Answer: E Diff: 2 Page Ref: 306 Skill: Concept AACSB: Communication abilities Objective: 10-2 44) What are the two general types of printed images?

A) formal and informal B) digitizations and illustrations C) color and sepia D) line art and halftone E) tint blocks and halftone Answer: D Diff: 2 Page Ref: 306 Skill: Concept Objective: 10-3 45) Photographs are considered which type of printed image?

A) formal B) halftone C) tint block D) line art E) informal Answer: B Diff: 2 Page Ref: 306 Skill: Concept Objective: 10-3 46) Printers create the illusion of shades of color by using dots of color surrounded by ________.

A) tint blocks B) tint screens C) color separations D) offset prints E) white space Answer: E Diff: 2 Page Ref: 307 Skill: Concept Objective: 10-3

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47) Full-color images are reproduced using four distinctive shades of ink called ________.

A) process colors B) primary colors C) basic colors D) halftones E) tint blocks Answer: A Diff: 1 Page Ref: 307 Skill: Concept Objective: 10-3 48) Full-color images are reproduced using four distinctive shades of ink in a process called ________.

A) full-color printing B) four-color printing C) tint blocking D) color surprinting E) color transferring Answer: B Diff: 1 Page Ref: 307 Skill: Concept Objective: 10-3 49) The process printers use to reduce the original color image to four halftone negatives is called ________.

A) tint reduction B) color separation C) offsetting D) tint blocking E) tipping in Answer: B Diff: 1 Page Ref: 307 Skill: Concept Objective: 10-3 50) Which of the following is NOT considered a process color?

A) black B) magenta C) cyan D) yellow E) brown Answer: E Diff: 2 Page Ref: 307 Skill: Concept Objective: 10-3

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51) ________ creates a raised surface on paper, and ________ creates a depressed image in paper.

A) Formal printing; informal printing B) Tipping out; tipping in C) Embossing; debossing D) On-stamping; in-stamping E) Overlaying; inlaying Answer: C Diff: 2 Page Ref: 308 Skill: Concept Objective: 10-3 52) The application of a thin metallic coating molded to the surface of the image with heat and pressure is called ________.

A) foil stamping B) embossing C) debossing D) digitizing E) overlaying Answer: A Diff: 2 Page Ref: 308 Skill: Concept Objective: 10-3 53) Separate preprinted ads provided by the advertiser to be glued into a publication as the publication is being assembled are known as ________.

A) embosses B) die-cuts C) foil stamps D) overlays E) tip-ins Answer: E Diff: 2 Page Ref: 308 Skill: Concept Objective: 10-3 54) Previously recorded images, either video, still slides, or moving film are known as ________.

A) morphs B) stock footage C) tip-ins D) photostats E) clip art Answer: B Diff: 1 Page Ref: 309 Skill: Concept Objective: 10-4 14 .

55) A set of computer-generated letters that appear to be moving across the bottom of the television screen is known as a(n) ________.

A) crawl B) morph C) tip-in D) register E) overwrite Answer: A Diff: 1 Page Ref: 310 Skill: Concept Objective: 10-4 56) A video technique in which one object gradually changes into another is called ________.

A) crawling B) image transfer C) morphing D) interlocking E) dubbing Answer: C Diff: 1 Page Ref: 310 Skill: Concept Objective: 10-4 57) A(n) ________ writes the script for a broadcast production.

A) copywriter B) arranger C) producer D) director E) editor Answer: A Diff: 1 Page Ref: 311 Skill: Concept Objective: 10-4 58) The ________ develops the storyboard and establishes the look of the commercial.

A) copywriter B) art director C) producer D) director E) arranger Answer: B Diff: 2 Page Ref: 311 Skill: Concept Objective: 10-4

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59) The ________ takes charge of the production arrangements and makes sure the expenses and bids come in under budget.

A) copywriter B) art director C) producer D) director E) arranger Answer: C Diff: 2 Page Ref: 311 Skill: Concept Objective: 10-4 60) The ________ has responsibility for the actual filming of the TV commercial.

A) editor B) art director C) producer D) director E) arranger Answer: D Diff: 2 Page Ref: 311 Skill: Concept Objective: 10-4 61) Moving an inanimate object a bit at a time and filming it frame by frame is known as ________.

A) stop motion B) stop action C) micro filming D) slow motion E) step motion Answer: A Diff: 1 Page Ref: 312 Skill: Concept Objective: 10-4 62) Which of the following is NOT a step of the television production process?

A) preproduction B) postproduction C) shorts D) the shoot E) message design Answer: C Diff: 2 Page Ref: 313 Skill: Concept Objective: 10-4

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63) Finding the right director, locating or building a set, and casting the talent are elements of which step in the production of a television commercial?

A) message design B) preproduction C) production D) postproduction E) shorts Answer: B Diff: 2 Page Ref: 313 Skill: Concept Objective: 10-4 64) During a television commercial shoot, which technician moves props and sets and lays tracks for the dolly on which the camera is mounted?

A) grip B) gaffer C) camera crew D) shoot clerk E) mixer Answer: A Diff: 2 Page Ref: 314 Skill: Concept Objective: 10-4 65) Rough versions of the commercial assembled from cuts of the raw film footage are known as ________.

A) dailies B) rushes C) rough cuts D) interlocks E) answer prints Answer: B Diff: 2 Page Ref: 313-314 Skill: Concept Objective: 10-4 66) What term refers to the postproduction process of assembling the various pieces of the film into the same sequence as the storyboard?

A) dubbing B) release printing C) refocus D) video editing E) transition Answer: D Diff: 2 Page Ref: 314 Skill: Concept Objective: 10-4 17 .

67) Which of the following represents the correct order of the television postproduction output?

A) dailies, rushes, rough cut, interlock, release print B) interlock, rough cut, answer print, release print C) rough cut, interlock, release print, duplicate print D) rough cut, interlock, answer print, release print E) interlock, dubbed print, answer print Answer: D Diff: 3 Page Ref: 314-316 Skill: Concept Objective: 10-4 68) The final version of a television commercial with the sound and film mixed together is called a(n) ________.

A) interlock B) answer print C) release print D) dubbed print E) rush print Answer: B Diff: 1 Page Ref: 314 Skill: Concept Objective: 10-4 69) Because users can create their own paths through a website, designers have to make sure that their sites have clear ________.

A) URLs B) networks C) sequencing D) navigation E) pop-ups Answer: D Diff: 2 Page Ref: 318 Skill: Concept AACSB: Use of information technology Objective: 10-5

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70) If a website's ________ is cluttered or unclear, website visitors will likely give up and move on to some other site.

A) banner ad B) URL C) navigation D) pop-up E) clickthrough rate Answer: C Diff: 2 Page Ref: 318 Skill: Concept AACSB: Use of information technology Objective: 10-5 71) In effective advertising, the visuals work together with the words to present the creative concept.

Answer: TRUE Diff: 2 Page Ref: 291 Skill: Concept AACSB: Communication abilities Objective: 10-1 72) Words are generally better than visuals at getting and keeping attention.

Answer: FALSE Diff: 2 Page Ref: 291 Skill: Concept AACSB: Communication abilities Objective: 10-1 73) Undifferentiated products with low inherent interest can be distinguished by linking the product with a visual representing lifestyles and types of users.

Answer: TRUE Diff: 2 Page Ref: 291 Skill: Concept AACSB: Communication abilities Objective: 10-1 74) The visual's only function in an advertisement is to get attention.

Answer: FALSE Diff: 2 Page Ref: 292 Skill: Concept AACSB: Communication abilities Objective: 10-1

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75) The person most responsible for creating visual impact is the creative director.

Answer: FALSE Diff: 2 Page Ref: 292 Skill: Concept AACSB: Communication abilities Objective: 10-1 76) The art director's toolkit for print advertising includes the photos, illustrations, typeface, color, and layout of the proposed ad.

Answer: TRUE Diff: 2 Page Ref: 296 Skill: Concept Objective: 10-2 77) When art directors use the word art, they mean only illustrations.

Answer: FALSE Diff: 2 Page Ref: 296 Skill: Concept Objective: 10-2 78) Print ads with color tend to get more attention than ads without color.

Answer: TRUE Diff: 2 Page Ref: 298 Skill: Concept AACSB: Communication abilities Objective: 10-2 79) Cool colors, such as blue and green, convey happiness.

Answer: FALSE Diff: 2 Page Ref: 300 Skill: Concept AACSB: Communication abilities Objective: 10-2 80) The appearance of the ad's printed matter in terms of the style and size of typefaces is known as typography.

Answer: TRUE Diff: 1 Page Ref: 300 Skill: Concept AACSB: Communication abilities Objective: 10-2

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81) Through balance, all the elements in an ad fuse into one coherent image and the pieces become a whole.

Answer: FALSE Diff: 2 Page Ref: 302 Skill: Concept Objective: 10-2 82) A basic design principle is "Less is more."

Answer: TRUE Diff: 2 Page Ref: 302 Skill: Concept Objective: 10-2 83) A circus layout combines lots of elements art, type, color to deliberately create a busy, jumbled image.

Answer: TRUE Diff: 2 Page Ref: 303 Skill: Concept Objective: 10-2 84) The layout stage in which the elements are assembled in their final position for reproduction is known as a comprehensive.

Answer: FALSE Diff: 2 Page Ref: 304 Skill: Concept Objective: 10-2 85) One problem with using color in newspaper advertising is that because of the limitations of the printing process, the color may not be perfectly in register.

Answer: TRUE Diff: 2 Page Ref: 305 Skill: Concept AACSB: Communication abilities Objective: 10-3 86) A key to an effective outdoor board is eye-stopping graphics.

Answer: TRUE Diff: 1 Page Ref: 305 Skill: Concept AACSB: Communication abilities Objective: 10-3

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87) On an outdoor board, the product or brand label may be hundreds of times larger than in real life.

Answer: TRUE Diff: 2 Page Ref: 305 Skill: Concept Objective: 10-3 88) Designers of outdoor advertising should make the relationship between foreground and background as obvious as possible.

Answer: TRUE Diff: 2 Page Ref: 306 Skill: Concept Objective: 10-3 89) The two general types of printed images are photographs and illustrations.

Answer: FALSE Diff: 2 Page Ref: 306 Skill: Concept Objective: 10-3 90) Color is reproduced by setting up a printing press with a separate ink roller for every hue and value in a color photo.

Answer: FALSE Diff: 2 Page Ref: 307 Skill: Concept Objective: 10-3 91) The process printers use to reduce the original color image to four halftone negatives is called color separation.

Answer: TRUE Diff: 2 Page Ref: 307 Skill: Concept Objective: 10-3 92) Tip-ins are separate preprinted ads provided by the advertiser to be glued into a publication as the publication is being assembled.

Answer: TRUE Diff: 2 Page Ref: 308 Skill: Concept Objective: 10-3 93) Morphing is a video technique in which one object gradually changes into another.

Answer: TRUE Diff: 1 Page Ref: 310 Skill: Concept Objective: 10-4 22 .

94) The producer is the person responsible for the actual filming of a television commercial.

Answer: FALSE Diff: 2 Page Ref: 311 Skill: Concept Objective: 10-4 95) The director has responsibility for the actual filming of a TV commercial, including how long the scene runs.

Answer: TRUE Diff: 2 Page Ref: 311 Skill: Concept Objective: 10-4 96) Stop motion and claymation are two types of animation.

Answer: TRUE Diff: 3 Page Ref: 312 Skill: Concept Objective: 10-4 97) The four major steps in the production of a television commercial are message design, preproduction, the shoot, and postproduction.

Answer: TRUE Diff: 2 Page Ref: 313 Skill: Concept AACSB: Communication abilities Objective: 10-4 98) Dailies are rough versions of the commercial assembled from cuts of the raw film footage.

Answer: FALSE Diff: 2 Page Ref: 313-314 Skill: Concept Objective: 10-4 99) The result of the editor's initial work is called an interlock, which is a preliminary edited version of the story that is created when the editor chooses the best shots and assembles them to create a scene.

Answer: FALSE Diff: 2 Page Ref: 314 Skill: Concept Objective: 10-4

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100) Web designers are able to use different tools than those that are available to other types of art directors.

Answer: TRUE Diff: 2 Page Ref: 316 Skill: Concept AACSB: Use of information technology Objective: 10-5 101) Adreena wants to make consumers think of antiques with her photograph for a print advertisement for handcrafted furniture. Adreena should use a sepia tone for the photograph.

Answer: TRUE Diff: 3 Page Ref: 300 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 10-2 102) Type in print ads has an aesthetic as well as a functional role.

Answer: TRUE Diff: 2 Page Ref: 300 Skill: Synthesis AACSB: Reflective thinking skills Objective: 10-2 103) An advertiser that wants to soften its brand image would likely switch from using light typeface to boldface in its print advertisements.

Answer: FALSE Diff: 2 Page Ref: 302 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 10-2 104) The video equivalent of a rough layout for a print ad is a storyboard.

Answer: TRUE Diff: 3 Page Ref: 305 Skill: Synthesis AACSB: Reflective thinking skills Objective: 10-2 105) A perfume maker wants to create an advertisement that gives consumers the chance to experience a new perfume. The perfume maker should choose to advertise in a magazine rather than in a newspaper.

Answer: TRUE Diff: 3 Page Ref: 305 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 10-3 24 .

106) Discuss how the use of visuals can be related to the Facets Model of Effects.

Answer: Designers focus on six key reasons for the effective use of visuals in advertising: (1) Grab Attention –Generally visuals are better than words at getting and keeping attention.

(2) Stick in Memory –Visuals stick in the mind because people generally remember messages as visual fragments or key images that are filed easily in their minds.

(3) Cement Belief –Seeing is believing, so visuals that demonstrate add credibility to a message.

(4) Tell Interesting Stories –Visual storytelling is engaging and maintains interest.

(5) Communicate Quickly –Pictures tell stories faster than words because a picture communicates instantly. Consumers have to decipher verbal/written communication word-byword, sentence-by-sentence, line-by-line.

(6) Anchor Associations –To distinguish undifferentiated products with low inherent interest, advertisers often link the product with visual associations representing lifestyles and types of users.

Diff: 3 Page Ref: 291 Skill: Synthesis AACSB: Reflective thinking skills Objective: 10-1 107) Name and describe primary elements of the art director's toolkit for print advertising.

Answer: The art director's toolkit for print advertising includes the photos, illustrations, typefaces, color, and layout of the proposed ad.

Illustrations and Photos When art directors use the word art, they usually mean photographs and illustrations. Photography has an authenticity that makes it powerful whereas illustrations are more fanciful. Illustrations eliminate many of the details you see in a photograph, often making it easier to understand.

Color is used to attract attention, provide realism, establish moods, and build brand identity. Print ads with color get more attention than do ads without color. However, black-and-white also lends a dignity and sophistication to the visual. Ads can also use spot color, a color in addition to black and white to highlight important elements.

Typography is the appearance of the ad's printed matter in terms of the style and size of typefaces. Art directors' concerns include fonts, justification, type measurement, and legibility.

Finally, a layout is a plan that imposes order and at the same time creates an arrangement that is aesthetically pleasing. Some common types of ad layouts the art director might use are picture window, all art, panel or grid, dominant type or all copy, circus, and nonlinear. Finally, several design principles guide designers as they lay out an ad, such as direction, dominance, unity, white space, contrast, balance, proportion, and simplicity.

Diff: 3 Page Ref: 296-303 Skill: Synthesis AACSB: Reflective thinking skills Objective: 10-2

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108) Explain what layout means, and compare the common ad layouts the art director might use.

Answer: A layout is a plan that imposes order and at the same time creates an arrangement that is aesthetically pleasing. Some common types of ad layouts the art director might use are: (1) Picture Window –One of the most common formats; it uses a single, dominant visual that occupies about 60 to 70 percent of the ad's space.

(2) All Art –Art fills the frame of the ad and the copy is embedded in the picture.

(3) Panel or Grid –Can use a number of visuals of matched or proportional sizes. If there are multiple panels all of the same size, the layout can look like a window pane or comic strip panel.

(4) Dominant Type or All Copy –Layout that emphasizes the type rather than the art, or even an all-copy ad in which the headline is treated as type art. A copy-dominant ad may have art, but it is either embedded in the copy or placed in a subordinate position, such as at the bottom of the layout.

(5) Circus –Combines lots of elements –art, type, color –to deliberately create a busy, jumbled image. This is typical of some discount store ads or ads for local retailers, such as tire companies.

(6) Nonlinear –A contemporary style of layout that can be read starting at any point in the image, meaning the direction of viewing is not ordered. This style of ad layout works for young people, but it is not as effective for older generations.

Diff: 3 Page Ref: 303 Skill: Synthesis AACSB: Reflective thinking skills Objective: 10-2 109) A printer really needs only four colors to reproduce full-color images. Explain how this can be and describe the process used in four-color printing.

Answer: Full-color images are reproduced using four distinctive shades of ink called process colors, in a process called four-color printing. These colors are magenta (a shade of pinkish purple), cyan (a shade of bright blue), yellow, and black. Printing inks are transparent, so when one ink overlaps another, a third color is created and that's how the full range of colors is created.

The black is used for type and, in four-color printing, adds depth to the shadows and dark tones in an image. The process printers use to reduce the original color image to four halftone negatives is called color separation.

Diff: 3 Page Ref: 307 Skill: Synthesis AACSB: Reflective thinking skills Objective: 10-3

26 .

110) Name the four steps in the production of a television commercial, and discuss some of the activities associated with each.

Answer: In general, there are four steps in the production of a television commercial: (1) Message Design –Includes getting client approval on the advertising strategy, choosing the message format, creating a key frame, writing the script, storyboarding the action and scenes, and getting client approval of script and storyboard.

(2) Preproduction –Develop a set of production notes describing in detail every aspect of the production. Activities at this stage include find the right director; find the production house or animation house; work out details in preproduction meetings; locate or build the set; cast the talent; locate props, costumers, and photographic stills; and get bids for all the production operations.

(3) Production (the Shoot) –The director manages the shoot, and activities include: record the action on film; record music, voices, and sound effects; create the onscreen graphics; and create computer graphics.

(4) Postproduction –When the commercial begins to emerge from the hands and mind of the editor. Activities include: edit the film, mix the audio track, synchronize the video and the audio, give a presentation tape to client for approval, and duplicate videotapes for distribution.

Diff: 3 Page Ref: 313-314 Skill: Synthesis AACSB: Reflective thinking skills Objective: 10-4 111) What was the challenge facing the advertising agency that developed the campaign for Altoids described in the chapter's opening vignette?

A) to increase awareness of a new line of mints B) to increase awareness of the brand among children younger than 12 years old C) to depict visually the impact of the flavor D) to communicate to consumers the superior quality of the Altoids brand E) to communicate to consumers the price/value relationship of Altoids Answer: C Diff: 2 Page Ref: 290-291 Skill: Application AACSB: Analytic skills Objective: 10-1

27 .

112) The Michelin Man is an illustration that appears in many advertisements for Michelin tires.

The Michelin Man, who is made of tires, represents the brand. The Michelin Man is an example of a ________.

A) logo B) position C) brand icon D) brand image E) thumbnail Answer: C Diff: 2 Page Ref: 295 Skill: Application AACSB: Analytic skills Objective: 10-1 113) Arthur works at an advertising agency and is in charge of the visual look of the message, both in print and TV, and how it communicates mood, product qualities, and psychological appeals. He makes decisions about whether to use art or photography in print, film or animation in television, and what type of artistic style to use. He was trained in graphic design and designs ads, but he rarely creates the finished art. What is Arthur's job title?

A) producer B) art director C) advertising director D) creative director E) creative strategist Answer: B Diff: 2 Page Ref: 296 Skill: Application AACSB: Analytic skills Objective: 10-2 114) Stan is a copywriter and Bob is an art director working on a client's account. They are brainstorming ideas and trying to imagine what the finished ad might look like. What technique should they use?

A) creative aerobics B) thought listing C) "drawing on the right side of the brain" D) visualization E) image transfer Answer: D Diff: 2 Page Ref: 296 Skill: Application AACSB: Reflective thinking skills Objective: 10-2

28 .

115) Quiana is an art director working on a print ad for a new client. The client wants the ad to stress the credibility of the product. Which of the following types of art should Quiana choose?

A) illustration B) photograph C) spot color D) embossing E) line art Answer: B Diff: 2 Page Ref: 296 Skill: Application AACSB: Reflective thinking skills Objective: 10-2 116) Rahim is an art director developing an advertising campaign for a new online multiplayer game. The game allows players to create characters who interact in an imaginative environment with characters created by other players. Which of the following types of art should Rahim choose for the campaign?

A) illustration B) photograph C) spot color D) embossing E) halftone Answer: A Diff: 2 Page Ref: 297 Skill: Application AACSB: Reflective thinking skills Objective: 10-2 117) As you're flipping through the newspaper, your eye catches a bright blue graphic in an ad for a new restaurant. This ad uses ________ to attract attention.

A) off-set printing B) tip-ins C) color separation D) four-color printing E) spot color Answer: E Diff: 2 Page Ref: 300 Skill: Application AACSB: Analytic skills Objective: 10-2

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118) Kindrella is trying to convey happiness in a print ad. Which of the following color(s) should she use in the ad?

A) yellow B) orange C) red D) A and B E) A, B, and C Answer: E Diff: 2 Page Ref: 300 Skill: Application AACSB: Analytic skills Objective: 10-2 119) Typeface that looks like this ABCDEFGHIJK... is known as ________.

A) serif B) sans serif C) block printing D) ornamental E) surprinted Answer: B Diff: 2 Page Ref: 301 Skill: Application AACSB: Analytic skills Objective: 10-2 120) In finalizing a newspaper ad, Mandeep is considering changing the spot color from blue to red. In terms of design, Mandeep is considering a(n) ________ change.

A) functional B) aesthetic C) balance D) movement E) complexity Answer: B Diff: 3 Page Ref: 302 Skill: Application AACSB: Analytic skills Objective: 10-2

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121) A print advertisement for Hyatt is dominated by the image of a woman sitting on a pristine beach, gazing out at a calm ocean. Text below the image reads "Hyatt. You're more than welcome." The ad also includes a Hyatt website address. Which type of layout does this ad use?

A) picture window B) circus C) panel D) nonlinear E) dominant type Answer: A Diff: 2 Page Ref: 303 Skill: Application AACSB: Analytic skills Objective: 10-2 122) A print advertisement for Bloomingdale's features seven separate photographs of products for a trip to the beach, including sunglasses and a beach bag. The largest image in the ad is a photograph of a famous surfer. The headline for the ad appears above the photographs, and smaller text providing details on the products and the sale appear below the photographs. Which type of layout does this ad use?

A) picture window B) circus C) panel D) nonlinear E) dominant type Answer: C Diff: 2 Page Ref: 303 Skill: Application AACSB: Analytic skills Objective: 10-2 123) A print advertisement for a movie features boldfaced, all caps quotes from respected movie critics praising the film, the title of the movie, and the names of the actors appearing in the movie. The ad uses only black, white, and red ink. Which type of layout does this ad use?

A) picture window B) circus C) panel D) nonlinear E) dominant type Answer: E Diff: 2 Page Ref: 303 Skill: Application AACSB: Analytic skills Objective: 10-2

31 .

124) Saul is taking a sample layout of a new print advertisement to a meeting with the client for approval. This layout is most likely in the ________ stage.

A) thumbnail B) panel C) semicomp D) high-resolution film E) rough Answer: C Diff: 2 Page Ref: 304 Skill: Application AACSB: Analytic skills Objective: 10-2 125) Mmmints, the maker of a line of breath mints, is launching a new flavor. The company's agency has created an advertisement that includes a flavor strip, which will allow consumers to experience the taste of the new product. This advertisement is an example of a(n) ________.

A) tip-in B) embossing C) stamping D) debossing E) die-cut Answer: A Diff: 2 Page Ref: 308 Skill: Application AACSB: Analytic skills Objective: 10-2 126) Lisa writes original music and sometimes writes the lyrics along with the music for radio and television commercials. What is Lisa's role in TV and radio production?

A) producer B) director C) arranger D) composer E) talent Answer: D Diff: 2 Page Ref: 311 Skill: Application AACSB: Analytic skills Objective: 10-4

32 .

127) A four-color, full-page advertisement for a sale at a local retailer appeared in the Sunday newspaper. The ad featured several images of products that would be on sale. The color images, however, were somewhat blurry. Which of the following best explains why the images were blurry?

A) The glossy paper used by newspapers is not the best surface for reproducing fine details.

B) The color was not perfectly registered.

C) The advertisement used continuous tones rather than half tones.

D) The advertisement used half tones rather than continuous tones.

E) The advertisement did not use enough white space.

Answer: B Diff: 3 Page Ref: 305 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 10-3 Refer to the following passage to answer the questions below.

A television ad for Meridia, a prescription medication for the management of obesity, begins by showing a close-up of a cute, pudgy baby's face while the copy says something to the effect that doctors have been concerned about your weight all your life. The baby's face gradually turns into that of a woman who is attractive yet overweight, and the copy indicates that Meridia can help – just ask your doctor. Then the scene shifts, rather abruptly, to the name of the prescription medication.

128) The art director wants to purchase a previously recorded image of a baby's face rather than going through the process of casting and abiding by all the regulations for working with minors.

What could the art director use?

A) pre-shot footage B) open footage C) stock footage D) proprietary footage E) dubbed footage Answer: C Diff: 2 Page Ref: 309 Skill: Application AACSB: Analytic skills Objective: 10-4

33 .

129) The art director wants to purchase a previously recorded image of a baby's face rather than going through the process of casting and abiding by all the regulations for working with minors.

This decision was most likely made during the ________ stage of the production process.

A) message design B) editing C) preproduction D) production E) postproduction Answer: C Diff: 3 Page Ref: 313 Skill: Application AACSB: Analytic skills Objective: 10-4 130) The technique in which the baby's face gradually changes into a woman's face is known as ________.

A) die-cutting B) debossing C) morphing D) interlocking E) dubbing Answer: C Diff: 2 Page Ref: 310 Skill: Application AACSB: Analytic skills Objective: 10-4 131) Describe the challenge that was facing the creative team for the Altoids campaign described in the chapter's opening vignette.

Answer: The challenge was to create advertising that would bring to life the intense flavor of this extreme mint. The challenge was to depict visually the impact of this flavor what it's like to suck on this miniature atom bomb and dramatize the brand slogan, "Curiously Strong Mints."

Diff: 2 Page Ref: 289-290 Skill: Synthesis AACSB: Reflective thinking skills Objective: 10-1 132) Explain why pictures are important in print ads.

Answer: Visuals capture more attention with words, and bigger illustrations tend to capture more attention. The right visual can pull readers into the body copy of an ad.

Diff: 2 Page Ref: 291-292 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 10-1

34 .

133) Explain why there is a tension in advertising between creativity and responsibility to a brand image.

Answer: A brand image is established over years and many market communication campaigns; new marketing communications should be creative but should not interfere with the established brand image without strategic cause.

Diff: 3 Page Ref: 295 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 10-1 134) Explain why an illustration might be easier than a photograph to understand.

Answer: An illustration can leave out many details that appear in a photograph, making it easier for the viewer to focus on the main idea of the image.

Diff: 3 Page Ref: 296 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 10-1 135) Compare and contrast functional and aesthetic needs in design.

Answer: Functional needs involve making the visual message easy to perceive; aesthetic needs involve making the visual attractive and pleasing to the eye.

Diff: 3 Page Ref: 302 Skill: Synthesis AACSB: Reflective thinking skills Objective: 10-2 136) Explain the two ways videographers and photographers handle composition.

Answer: Videographers and photographers handle composition by placing or arranging the elements in front of their cameras or by manipulating their own point of view if the elements can't be moved.

Diff: 2 Page Ref: 305 Skill: Synthesis AACSB: Reflective thinking skills Objective: 10-2

35 .

137) The Institute for Outdoor Advertising (IOA) recommends several tips for designers.

Discuss three of them.

Answer: Students can discuss any three of the following: (1) Graphics –Make the illustration an eye-stopper.

(2) Size –Images in billboards are huge. The product or the brand label can be hundreds of times larger than life.

(3) Colors –Use bold, bright colors. The greatest impact is created by maximum contrast between two colors such as dark colors against white or yellow.

(4) Figure/Ground –Make the relationship between foreground and background as obvious as possible. The background should never compete with the subject.

(5) Typography –Use a simple, clean, uncluttered type that is easy to read at a distance by an audience in motion.

(6) Product Identification –Focus attention on the product by reproducing the label or package in a huge size.

(7) Extensions –Extend the frame of the billboard to expand the scale and break away from the limits of the long rectangle.

(8) Shape –For visual impact, create the illusion of three-dimensional effects by playing with horizons, vanishing lines, and dimensional boxes.

(9) Motion –Add motors to boards to make pieces and parts move. Disklike wheels and glittery things that flicker in the wind create the appearance of motion, color change, and images that squeeze, wave, or pour. Use revolving panels, called kinetic boards, for messages that change.

Diff: 2 Page Ref: 305-306 Skill: Synthesis AACSB: Reflective thinking skills Objective: 10-3 138) Compare and contrast the two general types of printed images.

Answer: There are two general types of printed images: line art and halftone. A drawing or illustration is called line art because the image is solid lines on a white page. Photographs, referred to as continuous tone or halftone, are much more complicated to reproduce. They have a range of gray tones between black and white.

Diff: 3 Page Ref: 306 Skill: Synthesis AACSB: Reflective thinking skills Objective: 10-3 139) Explain how printers use screens to create the illusion of shades of colors.

Answer: Printers create the illusion of shades by converting continuous-tone art and photos to halftones by shooting the original photograph through a fine screen. The screened image is converted to a pattern of dots that gives the illusion of shades dark areas are large dots that fill the screen and light areas are tiny dots surrounded by white space. The quality of the image depends on how fine the screen is.

Diff: 3 Page Ref: 307 Skill: Synthesis AACSB: Reflective thinking skills Objective: 10-3 36 .

140) Compare and contrast the responsibilities of a producer and a director in a broadcast production.

Answer: The producer takes charge of the production, handles the bidding and all production arrangements, finds the specialists, arranges for casting talent, and makes sure the expenses and bids come in under budget. The director has responsibility for the actual filming or taping, including scene length, who does what, how lines are spoken and the characters played, and how the camera records the flow of action.

Diff: 2 Page Ref: 311 Skill: Synthesis AACSB: Reflective thinking skills Objective: 10-4 141) Compare and contrast the responsibilities of a composer and an arranger working on a broadcast production.

Answer: The composer writes original music and sometimes writes the lyrics along with the music. The arranger takes the original music and orchestrates the various instruments and voices to make the music fit a scene or copy line.

Diff: 2 Page Ref: 311 Skill: Synthesis AACSB: Reflective thinking skills Objective: 10-4 142) A major television commercial production company is seeking summer interns. The jobs students would fill are called grip and script clerk. In which stage of the television production process will these roles be found, and what can you expect to do if you take either of these positions?

Answer: These roles are part of the production (the shoot) stage of the TV production process.

The grip is a person who moves props and sets and lays tracks for the dolly on which the camera is mounted. The script clerk checks the dialogue and other script details and times the scenes.

Diff: 3 Page Ref: 313-314 Skill: Synthesis AACSB: Reflective thinking skills Objective: 10-4 143) Describe a web designer's toolkit.

Answer: Web designers work with animation effects, sophisticated navigation paths, and streaming video.

Diff: 2 Page Ref: 316 Skill: Synthesis AACSB: Use of information technology Objective: 10-5

37 .

144) How do banner ads compare to outdoor boards?

Answer: Banner ads are designed more like outdoor boards than conventional print ads because their small space puts intense requirements on the designer to make the ad communicate quickly and succinctly, and yet attract attention and curiosity to elicit a click-through response.

Diff: 3 Page Ref: 316 Skill: Synthesis AACSB: Use of information technology Objective: 10-5 145) John is designing a website for a client. What does he need to know about designing the navigation of the website to make it easy to use?

Answer: The navigation must be clear, making it easy for customers to move through the site, find the information they want, and respond. Problems to avoid are navigation that is cluttered or unclear. Regular users should be able to customize the site to fit their own interests and navigation patterns.

Diff: 3 Page Ref: 318 Skill: Synthesis AACSB: Use of information technology Objective: 10-5 Refer to the following passage to answer the questions below.

Kimberly is an art director at an advertising agency, and she is developing the print campaign for one of the agency's clients. The clients don't have a large budget, so they would like to keep the costs of production as low as possible; this means that the creation of original art in their ads is not feasible. The desired look of the ads is formal, and the mood Kimberly wants to convey is calm, serene, reflective, and intellectual. She also wants the layouts to be formal because the product is financial services targeted to consumers 50+ years old.

146) Considering that the client does not want to pay for original visuals to be included in their ads, how will Kimberly get the visuals she needs to get attention and to set the tone for the ads?

Answer: She can use clip art, which are image collections of copyright-free art that anyone who buys the clip-art service can use.

Diff: 2 Page Ref: 296 Skill: Application AACSB: Reflective thinking skills Objective: 10-2 147) What color or colors should Kimberly use to convey the mood she desires?

Answer: Cool colors, such as blue and green, are aloof, calm, serene, reflective, and intellectual.

Diff: 2 Page Ref: 300 Skill: Application AACSB: Reflective thinking skills Objective: 10-2

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148) Kimberly is considering using mostly copy in her ad since financial services is a complex topic and the market is interested in knowing detailed information. Describe the layout you would suggest.

Answer: The dominant type or all copy layout would serve Kimberly well. This layout emphasizes type and copy, and any art is embedded in the copy or placed in a subordinate position, such as at the bottom of the layout.

Diff: 2 Page Ref: 303 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 10-2 149) Kimberly is considering using visuals of matched or proportional sizes. Name and describe the appropriate layout she should use.

Answer: The panel or grid layout can use a number of visuals of matched or proportional sizes.

If there are multiple panels all of the same size, the layout can look like a window pane.

Diff: 2 Page Ref: 303 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 10-2 150) Which design principles are most appropriate for what Kimberly wants to do?

Answer: The design principles of balance and simplicity seem most applicable here.

Diff: 2 Page Ref: 302 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 10-2

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Advertising & IMC: Principles and Practice, 9e (Moriarty) Chapter 11 Media Basics 1) Broadcast media include all of the following EXCEPT which one?

A) network television B) local television C) cable television D) radio E) the Internet Answer: E Diff: 2 Page Ref: 327 Skill: Concept Objective: 11-1 2) The forms that media buys take are ________ and ________.

A) share; impressions B) space; time C) circulation; impressions D) ratings; share E) reach; frequency Answer: B Diff: 2 Page Ref: 327 Skill: Concept Objective: 11-1 3) The term ________ refers to the ability of media planners to analyze the cost of a media buy relative to the size of the medium's audience.

A) audited media B) mass media C) niche media D) targeted media E) measured media Answer: E Diff: 1 Page Ref: 327 Skill: Concept Objective: 11-1 4) A company is using ________ when it airs a television commercial to millions.

A) interactive media B) viral media C) mass media D) personal media E) niche media Answer: C Diff: 2 Page Ref: 327 Skill: Concept Objective: 11-1 1 .

5) Which of the following refers to communication channels through which messages can be sent to identifiable groups of people with a distinct common interest?

A) interactive media B) viral media C) mass media D) personal media E) niche media Answer: E Diff: 2 Page Ref: 327 Skill: Concept Objective: 11-1 6) Media that offer opportunities for dialogue and two-way conversation are most accurately described as ________.

A) engaging B) niche C) addressable D) interactive E) converging Answer: D Diff: 2 Page Ref: 328 Skill: Concept AACSB: Communication abilities Objective: 11-1 7) Media experts describe ________ as the closeness of fit between the interests of viewers and the relevance of the media content.

A) convergence B) interactivity C) engagement D) cadence E) commoditization Answer: C Diff: 2 Page Ref: 328 Skill: Concept AACSB: Communication abilities Objective: 11-1

2 .

8) Which of the following is the result when many types of products are similar?

A) impersonalization B) interactivity C) engagement D) cadence E) commoditization Answer: E Diff: 2 Page Ref: 328 Skill: Concept Objective: 11-1 9) Media buyers must be aware of how mass media is changing. Which of the following is NOT one of the media environment trends discussed in your text?

A) convergence B) interactivity C) engagement D) social responsibility E) personalization Answer: D Diff: 2 Page Ref: 328 Skill: Concept Objective: 11-1 10) What word or phrase involves the digitization of the media, in which all of the mass media save and transmit information through the same digital forms?

A) convergence B) interactivity C) cadence D) commoditization E) engagement Answer: A Diff: 2 Page Ref: 328 Skill: Concept AACSB: Use of information technology Objective: 11-1 11) Which of the following is a media buzzword that refers to the captivating quality of media that an audience finds engrossing?

A) convergence B) interactivity C) cadence D) commoditization E) engagement Answer: E Diff: 2 Page Ref: 328 Skill: Concept Objective: 11-1 3 .

12) The ________ is the most important media change that has occurred over the last twenty years.

A) Internet B) newspaper C) television D) magazine E) radio Answer: A Diff: 1 Page Ref: 329 Skill: Concept AACSB: Use of information technology Objective: 11-1 13) Which of the following most accurately identifies the strength of newspapers and magazines?

A) delivering information in depth B) tailoring programs to audience tastes C) bringing entertainment into the home D) delivering personalized information E) creating two-way communication Answer: A Diff: 2 Page Ref: 329 Skill: Concept Objective: 11-1 14) Which of the following most accurately identifies the strength of radio?

A) delivering information in depth B) tailoring programs to audience tastes C) bringing entertainment into the home D) delivering personalized information E) creating two-way communication Answer: B Diff: 2 Page Ref: 329 Skill: Concept Objective: 11-1 15) ________ sites like MySpace and Facebook build on the interactivity of the Internet.

A) Social networking B) Product placement C) Video game D) Branded entertainment E) Advertainment Answer: A Diff: 2 Page Ref: 329 Skill: Concept AACSB: Use of information technology Objective: 11-1 4 .

16) Media salespeople compile profile information about the people who watch, listen, or read the medium in packets of information known as ________.

A) rate cards B) take-aways C) give-aways D) media kits E) sales kits Answer: E Diff: 1 Page Ref: 331-332 Skill: Concept Objective: 11-1 17) ________ are people or companies that sell space and time for a variety of media.

A) Media salespeople B) Media reps C) Media buyers D) Media researchers E) Media distributors Answer: B Diff: 1 Page Ref: 332 Skill: Concept Objective: 11-1 18) Who makes the strategic decisions outlined in the media plan?

A) media buyers B) media researchers C) media planners D) media reps E) media brokers Answer: C Diff: 1 Page Ref: 332 Skill: Concept Objective: 11-1 19) Media brokers are also known as media ________.

A) buyers B) researchers C) planners D) reps E) salespeople Answer: D Diff: 1 Page Ref: 332 Skill: Concept Objective: 11-1

5 .

20) Who implements the media plan?

A) media buyers B) media researchers C) media planners D) media reps E) media brokers Answer: A Diff: 1 Page Ref: 332 Skill: Concept Objective: 11-1 21) Who compiles audience measurement data, as well as media costs and availability data, for the various media options being considered?

A) media buyers B) media planners C) media reps D) media researchers E) media brokers Answer: D Diff: 1 Page Ref: 332 Skill: Concept Objective: 11-1 22) ________ are independent companies that specialize in doing media research, planning, and buying.

A) Media platforms B) Account planners C) Media agencies D) Media buying companies E) Media brokers Answer: D Diff: 1 Page Ref: 332 Skill: Concept Objective: 11-1 23) A ________ identifies the best media to use to deliver an advertising message to a targeted audience and is a subsection within an advertising plan.

A) media impression B) media vehicle C) gross impression plan D) media plan E) message plan Answer: D Diff: 1 Page Ref: 332 Skill: Concept Objective: 11-2 6 .

24) Members of which of the following generational groups grew up with tape recorders, video games, VCRs, and cable TV, but not cell phones, computers, or Internet?

A) Traditionalists B) Boomers C) Gen Xers D) Gen Yers E) Millennials Answer: C Diff: 2 Page Ref: 334 Skill: Concept AACSB: Multicultural and diversity understanding Objective: 11-2 25) Members of which of the following generational groups grew up with DVDs, TiVo, satellite radio, iPods, smart phones, Facebook, and Twitter?

A) Traditionalists B) Boomers C) Gen Xers D) Gen Yers E) Millennials Answer: E Diff: 2 Page Ref: 334 Skill: Concept AACSB: Multicultural and diversity understanding Objective: 11-2 26) Members of which of the following generational groups grew up with newspapers, magazines, and radio, but not television, cell phones, computers, or the Internet?

A) Traditionalists B) Boomers C) Gen Xers D) Gen Yers E) Millennials Answer: A Diff: 2 Page Ref: 334 Skill: Concept AACSB: Multicultural and diversity understanding Objective: 11-2

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27) The way various types of media are strategically combined in a media plan is known as a ________.

A) media mix B) message mix C) media vehicle D) message frequency E) media reach Answer: A Diff: 1 Page Ref: 334 Skill: Concept Objective: 11-2 28) Media effects all begin with ________.

A) impressions B) circulation C) exposure D) reach E) frequency Answer: C Diff: 2 Page Ref: 335 Skill: Concept AACSB: Communication abilities Objective: 11-2 29) The percentage of the media audience exposed at least once to the advertiser's message during a specific time frame is known as ________.

A) an impression B) circulation C) exposure D) reach E) frequency Answer: D Diff: 1 Page Ref: 335 Skill: Concept Objective: 11-2 30) The number of times a person is exposed to an advertisement is known as ________.

A) gross impression B) circulation C) exposure D) reach E) frequency Answer: E Diff: 1 Page Ref: 335 Skill: Concept Objective: 11-2 8 .

31) One person's opportunity to be exposed one time to an ad in a broadcast program, newspaper, magazine, or outdoor location is known as ________.

A) an impression B) circulation C) exposure D) reach E) frequency Answer: A Diff: 1 Page Ref: 335 Skill: Concept Objective: 11-2 32) For print media, ________ refers to copies sold, and ________ estimate(s) the actual readership.

A) circulation; frequency B) circulation; impressions C) frequency; circulation D) impressions; circulation E) exposure; gross impressions Answer: B Diff: 2 Page Ref: 335 Skill: Concept Objective: 11-2 33) Which of the following statements is true regarding print media?

A) Circulation measures the actual readership.

B) Impressions estimate the actual readership.

C) Impressions refer to copies sold.

D) Reach is more important than frequency.

E) Frequency is more important than reach.

Answer: B Diff: 2 Page Ref: 335 Skill: Concept Objective: 11-2 34) Which term refers to the percentage of viewers based on the number of television sets turned on?

A) rating B) share C) gross rating points D) gross impressions E) impressions Answer: B Diff: 1 Page Ref: 335 Skill: Concept Objective: 11-2 9 .

35) The sum of the total exposure potential expressed as a percentage of the audience population is called ________.

A) circulation B) share C) rating points D) gross share points E) impressions Answer: C Diff: 2 Page Ref: 335 Skill: Concept Objective: 11-2 36) The most intrusive medium is ________.

A) radio B) newspaper C) television D) personal selling E) Internet Answer: D Diff: 2 Page Ref: 336 Skill: Concept Objective: 11-2 37) In the new media world, ________ will replace ________.

A) intrusiveness; engagement B) intrusiveness; interruption C) interruption; engagement D) engagement; interruption E) interruption; intrusiveness Answer: D Diff: 3 Page Ref: 336 Skill: Concept AACSB: Communication abilities Objective: 11-2 38) Giving customers opt-in or opt-out options for receiving brand information digitally is an effective way to minimize ________.

A) intrusiveness B) engagement C) share D) frequency E) viral communication Answer: A Diff: 2 Page Ref: 336 Skill: Concept AACSB: Use of information technology Objective: 11-2 10 .

39) Relationship marketing is a concept that originated with ________.

A) mass media B) personal sales C) direct marketing D) public relations E) viral marketing Answer: D Diff: 2 Page Ref: 337 Skill: Concept Objective: 11-3 40) Relationship marketing shifts the focus from the objective of getting a one-time purchase by a target to the ________.

A) integration of all brand communications B) maintenance of long-term involvement from the firm's critical stakeholders C) use of experiential marketing to make brand connections D) generation of positive word of mouth through buzz marketing E) the use of interactive media to personalize all contact points Answer: B Diff: 2 Page Ref: 337 Skill: Concept Objective: 11-3 41) Which of the following would NOT be considered one of a firm's critical stakeholders?

A) an employee B) a competitor C) a community member D) a customer E) a distributor Answer: B Diff: 2 Page Ref: 337 Skill: Concept Objective: 11-3 42) Which of the following is NOT considered a traditional advertising media?

A) customer service B) outdoor boards C) newspapers D) magazines E) radio Answer: A Diff: 2 Page Ref: 338 Skill: Concept Objective: 11-3

11 .

43) Every brand experience that a consumer has is called a(n) ________.

A) touch point B) channel C) promotion D) integration E) feedback Answer: A Diff: 1 Page Ref: 338 Skill: Concept AACSB: Communication abilities Objective: 11-3 44) A(n) ________ connects the brand and the customer on an emotional level and leads to a yes or no decision about a brand relationship.

A) experiential contact B) engaged contact C) critical touchpoint D) addressed touchpoint E) interactive touchpoint Answer: C Diff: 1 Page Ref: 338 Skill: Concept AACSB: Communication abilities Objective: 11-3 45) The goal of ________ is to intensify customers' active involvement with a brand.

A) advertainment B) opt-in marketing C) product placement D) guerilla marketing E) experiential marketing Answer: E Diff: 2 Page Ref: 338 Skill: Concept AACSB: Communication abilities Objective: 11-3 46) A ________ is both a container and a communication vehicle.

A) promotion B) touchpoint C) product placement D) package E) branded app Answer: D Diff: 2 Page Ref: 338 Skill: Concept Objective: 11-3 12 .

47) Which marketing communication tool has the goal of creating impact on the store shelf?

A) press release B) packaging C) word of mouth D) coupons E) customer service Answer: B Diff: 2 Page Ref: 338 Skill: Concept Objective: 11-3 48) What does the term viral marketing mean?

A) It is another term for online privacy.

B) It is another term for online security.

C) It refers to problems associated with computer viruses.

D) It refers to buzz marketing that occurs online.

E) It refers to negative publicity associated with company blogs.

Answer: D Diff: 1 Page Ref: 340 Skill: Concept AACSB: Use of information technology Objective: 11-3 49) Which of the following is a primary disadvantage of viral marketing?

A) The costs of viral marketing are too high for most companies.

B) The brand associated with the viral message is usually forgotten.

C) Marketers have little control over who receives the viral message.

D) Viral messages are offensive to many potential customers.

E) Viral messages are blocked by most search engines.

Answer: C Diff: 3 Page Ref: 340 Skill: Concept AACSB: Use of information technology Objective: 11-3 50) Viral marketing primarily uses which of the following communication channels?

A) billboards B) print media C) radio D) broadcast media E) the Internet Answer: E Diff: 2 Page Ref: 340 Skill: Concept AACSB: Use of information technology Objective: 11-3 13 .

51) ________ represents a company's attitude and behavior during interactions with customers.

A) Customer engagement B) Partner management C) Customer service D) Relationship marketing E) Experiential marketing Answer: C Diff: 1 Page Ref: 340 Skill: Concept Objective: 11-3 52) All of the following are trends in the modern media landscape EXCEPT which one?

A) Media consumers are in control of their media.

B) Media consumers are passive rather than active.

C) Lives are media focused.

D) Personal life has become public.

E) Global has become local.

Answer: B Diff: 2 Page Ref: 340 Skill: Concept Objective: 11-3 53) Facebook and Twitter are both examples of ________.

A) broadcast media B) branded entertainment C) guerilla marketing D) social media E) traditional media Answer: D Diff: 2 Page Ref: 341 Skill: Concept AACSB: Use of information technology Objective: 11-3 54) ________ is the use of unconventional marketing communication activities that are intended to get buzz on a limited budget.

A) Guerilla marketing B) Instant messaging C) Experiential marketing D) Advertainment E) Branded entertainment Answer: A Diff: 2 Page Ref: 342 Skill: Concept AACSB: Communication abilities Objective: 11-3 14 .

55) Which of the following is a disadvantage of guerilla marketing?

A) limited reach B) unethical C) low impact D) not effective E) high cost Answer: A Diff: 2 Page Ref: 342 Skill: Concept Objective: 11-3 56) A local business that hires a sign holder to stand on the sidewalk, trying to catch the attention of passersby by promoting a special marketing event, is using ________.

A) guerrilla marketing B) viral marketing C) product placement D) advertainment E) mobile marketing Answer: A Diff: 2 Page Ref: 342 Skill: Concept Objective: 11-3 57) Which of the following refers to a brand appearing in a television program or movie as a prop?

A) product placement B) advertainment C) guerilla marketing D) viral marketing E) branded entertainment Answer: A Diff: 1 Page Ref: 342 Skill: Concept Objective: 11-3 58) Which of the following is NOT an advantage of product placement?

A) demonstrates product use in a natural setting by people who are celebrities B) unexpected and catches the audience when resistance to advertising messages may be dialed down C) effective even if there is not a match between the product and the movie or its audience D) good for engaging the affections of other stakeholders, such as employees and dealers, particularly if the placement is supported with its own campaign E) All of the above are advantages of product placement.

Answer: C Diff: 3 Page Ref: 343 Skill: Concept Objective: 11-3 15 .

59) Which of the following has been referred to as "stealth advertising" by the Writers Guild of America?

A) branded advertainment B) branded apps C) mobile marketing D) product placement E) consumer-generated content Answer: D Diff: 2 Page Ref: 343 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 11-3 60) The use of the media of entertainment to engage consumers with brands is referred to as ________.

A) advertainment B) viral marketing C) alternative media D) subliminal advertising E) guerilla marketing Answer: A Diff: 1 Page Ref: 344 Skill: Concept Objective: 11-3 61) Another name for branded entertainment is ________.

A) advertainment B) viral marketing C) branded apps D) product placement E) guerilla marketing Answer: A Diff: 1 Page Ref: 344 Skill: Concept Objective: 11-3

16 .

62) On the Internet, ________ have created a new form of Web advertising similar to television programs with recurring episodes in a developing story.

A) blogs B) webisodes C) superstitials D) e-serials E) e-soaps Answer: B Diff: 1 Page Ref: 344 Skill: Concept AACSB: Use of information technology Objective: 11-3 63) Which of the following refers to two people chatting via typed messages composed on their computers?

A) skyping B) text messaging C) vodcasting D) podcasting E) instant messaging Answer: E Diff: 1 Page Ref: 346 Skill: Concept AACSB: Use of information technology Objective: 11-3 64) Which of the following refers to two people chatting via typed messages composed on their cell phones?

A) skyping B) text messaging C) vodcasting D) podcasting E) instant messaging Answer: B Diff: 1 Page Ref: 346 Skill: Concept AACSB: Use of information technology Objective: 11-3

17 .

65) ________ is the strategy based on reaching people on the run via their cell phones.

A) Viral marketing B) Experiential marketing C) Mobile marketing D) Digital marketing E) Guerilla marketing Answer: C Diff: 1 Page Ref: 346 Skill: Concept AACSB: Use of information technology Objective: 11-3 66) Video messages and downloads, mobile games, and instant messaging are all examples of ________ marketing.

A) advertainment B) branded entertainment C) guerilla D) webisode E) mobile Answer: E Diff: 2 Page Ref: 346 Skill: Concept AACSB: Use of information technology Objective: 11-3 67) Marketers view mobile phones as the next big marketing medium for all of the following reasons EXCEPT which one?

A) More consumers are using their cell phones for text messaging, surfing the Web, and watching videos.

B) Unlike telemarketing, mobile phone marketing is initially appealing to most cell phone users.

C) Cell phones are very popular with the highly desirable 18-to-34-year-old demographic.

D) Cell phone users can respond instantly to time-sensitive offers.

E) Most consumers always have their cell phones with them.

Answer: B Diff: 3 Page Ref: 346 Skill: Concept AACSB: Use of information technology Objective: 11-3

18 .

68) A branded application is least likely to run on which of the following?

A) smart phone B) iPad C) laptop computer D) television E) social networking site Answer: D Diff: 2 Page Ref: 346 Skill: Concept AACSB: Use of information technology Objective: 11-3 69) Which of the following forms of nontraditional media goes everywhere the target audience goes?

A) product placement B) branded entertainment C) advertainment D) mobile marketing E) guerrilla marketing Answer: D Diff: 2 Page Ref: 348 Skill: Concept AACSB: Use of information technology Objective: 11-3 70) Which of the following forms of nontraditional media is most limited by a small reach?

A) product placement B) branded entertainment C) advertainment D) mobile marketing E) guerrilla marketing Answer: E Diff: 2 Page Ref: 348 Skill: Concept Objective: 11-3 71) The media are used primarily for advertising.

Answer: FALSE Diff: 2 Page Ref: 326 Skill: Concept Objective: 11-1

19 .

72) The distinction between mass media and niche media is based almost entirely on size.

Answer: FALSE Diff: 2 Page Ref: 327 Skill: Concept Objective: 11-1 73) The Internet, mail, and telephone are all considered addressable media.

Answer: TRUE Diff: 2 Page Ref: 327 Skill: Concept AACSB: Use of information technology Objective: 11-1 74) All marketing communication messages are carried by some form of media.

Answer: FALSE Diff: 2 Page Ref: 327 Skill: Concept Objective: 11-1 75) In traditional mass media, communication is a one-way process.

Answer: TRUE Diff: 2 Page Ref: 327 Skill: Concept AACSB: Communication abilities Objective: 11-1 76) Television first became popular in the United States in the 1960s.

Answer: FALSE Diff: 2 Page Ref: 329 Skill: Concept Objective: 11-1 77) The Internet is the most multidimensional medium available to advertisers.

Answer: FALSE Diff: 2 Page Ref: 329 Skill: Concept AACSB: Use of information technology Objective: 11-1 78) Of the traditional forms of media, newspapers lost the most in the wake of online media growth and the Great Recession.

Answer: TRUE Diff: 2 Page Ref: 331 Skill: Concept AACSB: Use of information technology Objective: 11-1 20 .

79) Despite the Great Recession of the late 2000s, traditional media see continued growth in ad revenues.

Answer: FALSE Diff: 2 Page Ref: 331 Skill: Concept Objective: 11-1 80) Media brokers work for a specific medium, such as a magazine or local television station, and their objective is to build the best possible argument to convince media planners to use the medium they represent.

Answer: FALSE Diff: 2 Page Ref: 332 Skill: Concept Objective: 11-1 81) Media reps are independent companies that specialize in doing media research, planning, and buying.

Answer: FALSE Diff: 2 Page Ref: 332 Skill: Concept Objective: 11-1 82) Media placement is often the largest single cost item in a marketing communication budget, particularly for consumer goods and services.

Answer: TRUE Diff: 2 Page Ref: 332 Skill: Concept Objective: 11-2 83) Media planning should begin after message planning is complete.

Answer: FALSE Diff: 2 Page Ref: 332 Skill: Concept Objective: 11-2 84) A media mix is the way various types of media are strategically combined in a media plan.

Answer: TRUE Diff: 1 Page Ref: 334 Skill: Concept Objective: 11-2 85) The term multiplatform describes multichannel and multimarketing communication areas.

Answer: TRUE Diff: 1 Page Ref: 334 Skill: Concept Objective: 11-2 21 .

86) Gross impression refers to the number of times a person is exposed to an advertisement.

Answer: FALSE Diff: 2 Page Ref: 335 Skill: Concept Objective: 11-2 87) The television and radio industries use ratings rather than gross impression figures.

Answer: TRUE Diff: 2 Page Ref: 335 Skill: Concept Objective: 11-2 88) The share figure is always larger than the rating for television because the base is smaller.

Answer: TRUE Diff: 2 Page Ref: 335 Skill: Concept Objective: 11-2 89) Most media plans focus on reach objectives rather than frequency objectives.

Answer: FALSE Diff: 2 Page Ref: 336 Skill: Concept Objective: 11-2 90) Most media use intrusiveness to some degree as a way to grab the attention of media consumers.

Answer: TRUE Diff: 2 Page Ref: 336 Skill: Concept AACSB: Communication abilities Objective: 11-2 91) Through relationship marketing, all stakeholders are seen as communicators who can send either positive or negative messages about the brand.

Answer: TRUE Diff: 2 Page Ref: 337 Skill: Concept AACSB: Communication abilities Objective: 11-3 92) Relationship marketing is also referred to as experiential marketing.

Answer: FALSE Diff: 2 Page Ref: 338 Skill: Concept Objective: 11-3

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93) A package is the last ad a customer sees before making a decision on which brand to buy.

Answer: TRUE Diff: 2 Page Ref: 338 Skill: Concept Objective: 11-3 94) Packages can serve as brand reminders and deliver customer benefits.

Answer: TRUE Diff: 2 Page Ref: 338-339 Skill: Concept Objective: 11-3 95) A brand can initiate and control viral marketing.

Answer: FALSE Diff: 2 Page Ref: 340 Skill: Concept AACSB: Communication abilities Objective: 11-3 96) Marketing communication planners manage customer service interactions in most companies.

Answer: FALSE Diff: 2 Page Ref: 340 Skill: Concept Objective: 11-3 97) Homemade videos and commercials posted on YouTube are examples of consumergenerated content.

Answer: TRUE Diff: 2 Page Ref: 341 Skill: Concept AACSB: Use of information technology Objective: 11-3 98) Compared to Gen Yers, Baby Boomers spend more time with media of all kinds and are more likely to media multitask.

Answer: FALSE Diff: 2 Page Ref: 341 Skill: Concept AACSB: Use of information technology Objective: 11-3 99) The biggest problem with product placement is that the placement may not be noticed.

Answer: TRUE Diff: 2 Page Ref: 343 Skill: Concept Objective: 11-3 23 .

100) Instant messaging tends to be used more for business purposes than text messaging is.

Answer: TRUE Diff: 2 Page Ref: 343 Skill: Concept AACSB: Use of information technology Objective: 11-3 101) The goal of a media plan should be to maximize reach.

Answer: FALSE Diff: 3 Page Ref: 332 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 11-2 102) Reach is more important than frequency.

Answer: FALSE Diff: 2 Page Ref: 335 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 11-2 103) One advantage of advertising in magazines is that they have high reach potential because they are passed along to family, friends, customers, and colleagues.

Answer: TRUE Diff: 2 Page Ref: 335 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 11-2 104) You receive a text message from Upscale Furnishings about an upcoming sale on custom furniture. Upscale Furnishings is developing a direct customer relationship with you through guerilla marketing.

Answer: FALSE Diff: 2 Page Ref: 342 Skill: Application AACSB: Analytic skills Objective: 11-3 105) There is no difference between branded entertainment and product placement.

Answer: FALSE Diff: 2 Page Ref: 342, 344 Skill: Synthesis AACSB: Reflective thinking skills Objective: 11-3

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106) Explain how media technology has changed from the print era to today.

Answer: Over several hundred years, media have evolved from print, to radio, to television, and now the Internet. During the print era, the new technology was the printing press. Ink and print images could be mass produced for newspapers, magazines, and posters. The first newspaper ad appeared in 1700. The broadcast era began with the 20th century, with the first radio station coming on the air in 1897 and television becoming popular in the 1940s. Today, the Internet has basically combined television and the computer, providing a level of interactivity that no other media have offered. Online advertising is growing faster than other kinds of advertising, as traditional media is seeing decreases in their ad revenues.

Diff: 3 Page Ref: 329-331 Skill: Synthesis AACSB: Reflective thinking skills Objective: 11-1 107) Four college roommates who were advertising majors are now in New York working in the advertising industry. John is a media planner, Carl is a media buyer, George is a media researcher, and they all work at the same advertising agency. Chuck works at a media buying company and jokes that he will be taking over all of their jobs. Describe how their jobs are different and why Chuck can make the joke he did.

Answer: John, the media planner, makes the strategic decisions outlined in the media plan, such as identifying and selecting media options based on research into the audience profiles of various media. His responsibilities also include scheduling and budgeting.

Carl, the media buyer, implements the media plan. Media buying is the task of identifying specific vehicles, such as TV programs or magazines, negotiating the costs to advertise in them, and handling the details of billing and payment.

George, the media researcher, compiles audience measurement data, as well as media costs and availability data for the media options being considered by media planners.

Chuck, who works at a media buying company, specializes in doing media research, planning, and buying. These agencies are taking over the media role that used to be the responsibility of advertising agency media staff. In many cases, they are the media department that spun off from a full-service agency, such as the one in which Chuck's college buddies are employed.

Diff: 3 Page Ref: 332 Skill: Synthesis AACSB: Reflective thinking skills Objective: 11-1

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108) Describe how Americans' media habits are changing and how this will affect future media mixes.

Answer: Americans are spending more time on the Internet, playing video games, and using smart phones. Consumption of traditional broadcast and print media has declined, and Americans are now much more able to design their own media landscapes. In fact, many consumers use multiple types of media at the same time, such as watching TV while logged onto a social networking website. Digital media give consumers more control over advertising messages than ever before. This new two-way communication, along with the expanding number of media choices consumers have, will change the media mix. In the past, the media mix was dominated by print, TV, and radio. In the future, the media mix will be dominated by digital and mobile media, with TV and print playing a substantial, but reduced, role.

Diff: 3 Page Ref: 341 Skill: Synthesis AACSB: Reflective thinking skills Objective: 11-3 109) Describe the practice of product placement, explaining its advantages and disadvantages.

Answer: Product placement is a practice in which a company pays to have verbal or visual brand exposure in a movie or television program. Advantages of product placement include demonstrating the product in use in a natural setting. Product placement is unexpected and catches consumers when their resistance to advertising messages may be dialed down, and it's good for engaging the affections of other stakeholders, such as employees and dealers. However, disadvantages include not being noticed, problems if there is not a match between the product and the audience, and the inability to predict the success or failure of a movie or television show.

Diff: 3 Page Ref: 342-343 Skill: Synthesis AACSB: Reflective thinking skills Objective: 11-3 110) What are the advantages and disadvantages of mobile marketing?

Answer: Mobile marketing is the strategy of reaching people through their cell phones or smart phones. Smart phones are the most versatile of media, providing music, movies, photography, video games, personal conversation, shopping, and access to the Internet. Advertisers can use any of these forms to connect with phone users. Advertisers can send text messages or voice mails with news about a special sale when customers are in the vicinity of a store or restaurant, creating a personalized promotion for each customer. Though mobile marketing offers convenience and immediacy for customers, it hasn't been entirely embraced in the United States.

In fact, it is seen by many as an invasion of privacy. Consumers want the ability to opt-in to IM/TM advertising rather than be blasted by unwanted messages.

Diff: 3 Page Ref: 346-347 Skill: Synthesis AACSB: Reflective thinking skills Objective: 11-3

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111) Newspaper is the ________, and the Wall Street Journal is the ________.

A) vehicle; medium B) medium; vehicle C) medium; execution D) execution; medium E) reach; impression Answer: B Diff: 2 Page Ref: 327 Skill: Application AACSB: Analytic skills Objective: 11-1 112) A new pizza restaurant is opening in town. The owners of this restaurant decide to place an advertisement in the town newspaper announcing the date of their big opening. The owners of the restaurant are using ________.

A) mass media B) interactive media C) viral marketing D) addressable media E) broadcast media Answer: A Diff: 2 Page Ref: 327 Skill: Application AACSB: Analytic skills Objective: 11-1 113) Michelle is a specialist in media planning. She tells clients about media trends in the future.

She often talks about the digitization of media, in which all mass media save and transmit information through the same digital forms. Through integration, the media work through and with each other. What media trend is Michelle discussing?

A) Interactivity B) Engagement C) Convergence D) Commoditization E) Cadence Answer: C Diff: 2 Page Ref: 330 Skill: Application AACSB: Analytic skills Objective: 11-1

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114) June's job at an advertising agency entails identifying and selecting media options based on research into the audience profiles of various media as well as scheduling and budgeting. What is June's job responsibility?

A) media planning B) media buying C) account planning D) account management E) message development Answer: A Diff: 2 Page Ref: 332 Skill: Application AACSB: Analytic skills Objective: 11-1 115) Lisa works at a major advertising agency and is an expert in the television schedule for eight major markets in the United States. Her job entails identifying specific television shows that will deliver the desired audience for her agency's client, negotiating the costs to advertise in them, and handling the details of billing and payment. What is Lisa's job title?

A) media planner B) media buyer C) account planner D) creative director E) account manager Answer: B Diff: 2 Page Ref: 332 Skill: Application AACSB: Analytic skills Objective: 11-1 116) As a young woman, Rhonda grew up with newspapers, radio, and television dominating the media. During her adult life, though, Rhonda uses a smart phone, a personal computer and an ebook reader. Rhonda is part of which generation?

A) the Traditionalists B) the Boomers C) the Gen Xers D) the Gen Yers E) the Millennials Answer: B Diff: 3 Page Ref: 334 Skill: Application AACSB: Analytic skills Objective: 11-2

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117) Ronny finished college three years ago and has been working in the advertising industry ever since. Ronny feels comfortable adopting technological innovations at work and in his personal life, perhaps because he is a member of the first generation to grow up with personal computers and the Internet. Ronny belongs to ________.

A) the Traditionalists B) the Boomers C) the Gen Xers D) the Gen Yers E) the Millennials Answer: D Diff: 2 Page Ref: 334 Skill: Application AACSB: Analytic skills Objective: 11-2 118) Honda is launching its new Ridgeline truck and wants to expose the largest possible percentage of the prime time TV viewing audience to its message at least once during the next six months. Which media concept is Honda trying to maximize?

A) frequency B) impressions C) reach D) circulation E) circulation Answer: C Diff: 2 Page Ref: 335 Skill: Application AACSB: Analytic skills Objective: 11-2 119) Tara Keegan owns Live Well, a small chain of health stores offering a variety of natural health products and related services. In order to implement integrated marketing communications, Tara has hired a marketing communications director, whose job it will be to ensure that each ________ will deliver a consistent and positive message to consumers about the company.

A) public relations message B) contact point C) advertisement D) logo E) media vehicle Answer: B Diff: 2 Page Ref: 337 Skill: Application AACSB: Reflective thinking skills Objective: 11-3

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120) Some television shows have shown actors drinking a cup of Starbucks coffee. In these instances, Starbucks has chosen ________ as a marketing tool.

A) networking B) guerrilla marketing C) broadcast advertising D) product placement E) advertainment Answer: D Diff: 2 Page Ref: 342 Skill: Application AACSB: Analytic skills Objective: 11-3 121) Uptown Cleaning Crew is a company that provides house cleaning services in major urban and suburban areas. Marketers at Uptown Cleaning Crew developed a short, humorous video promoting the company's services, and they hope that customers who see the video will be so entertained that they will pass it on to their friends and colleagues. The marketers at Uptown Cleaning Crew are using ________.

A) guerilla marketing B) viral marketing C) product placement D) mobile marketing E) branded apps Answer: B Diff: 2 Page Ref: 340 Skill: Application AACSB: Analytic skills Objective: 11-3 122) For the launch of a new camera in Korea, Nikon created a celebrity "red carpet" experience in a Seoul subway station. Commuters walked on a red carpet past a billboard filled with life-like images of photographers. When a commuter walked directly in front of the billboard, lights flashed on the board, creating the illusion that the commuter was a celebrity having his or her photo snapped by dozens of reporters. This is an example of ________.

A) guerilla marketing B) traditional marketing C) product placement D) mobile marketing E) advertainment Answer: A Diff: 2 Page Ref: 342 Skill: Application AACSB: Analytic skills Objective: 11-3

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123) Thirty years ago, ________ dominated the media landscape.

A) radio and satellite television B) network television and print C) social media and interactive media D) radio and mobile media E) social media and television Answer: B Diff: 2 Page Ref: 329 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 11-1 124) A popular comedy show, which is shown on Fox network, had a rating or 4.0 but a share of 7. Why are these two numbers different?

A) Rating includes all TV households and share considers only those households that have their TVs on at that time.

B) Share includes all TV households and rating considers only those households that have their TVs on at that time.

C) Rating is provided by Arbitron and share is provided by Nielsen, and both use different methods for estimating audience size.

D) Rating is provided by Nielson and share is provided by Arbitron, and both use different methods for estimating audience size.

E) Rating compares audience size to the entire TV universe, while share compares only audience size to other network programming.

Answer: A Diff: 3 Page Ref: 335 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 11-2 125) Fishing Gear sells a range of fishing products to outdoor enthusiasts and serious fishermen.

Fishing Gear wants to reach its target market in a way that minimizes intrusiveness. Which of the following would be the best fit for Fishing Gear?

A) personal selling B) print ads in Fishing and Hunting News C) commercials on cable television D) emails to all individuals with a fishing license E) banner ads on websites Answer: B Diff: 3 Page Ref: 336 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 11-2

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126) A producer of beverages and snack foods wants to market its products to the 18-to-34-yearold demographic by providing incentives to respond instantly to time-sensitive offers. Which of the following forms of marketing would this producer most likely choose?

A) advertainment B) guerilla marketing C) mobile marketing D) product placement E) podcasting Answer: C Diff: 3 Page Ref: 346 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 11-3 Refer to the following passage to answer the questions below.

Allison works in the media department of a major advertising agency that has several national advertisers as clients. Her responsibilities include identifying specific media vehicles, such as TV programs, newspapers, magazines, or radio programs and stations for clients' advertising; negotiating the costs to advertise in them; and handling the details of billing and payment.

Although one of the agency's major clients advertises primarily in magazines, the media plan calls for the use of newspaper advertising as well.

127) What is Allison's job function?

A) media planning B) rate negotiator C) media buyer D) account planner E) account buyer Answer: C Diff: 2 Page Ref: 332 Skill: Application AACSB: Analytic skills Objective: 11-1

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128) The media plan calls for placing ads in all the major newspapers in the southeastern United States. Because newspaper is primarily a local medium, Allison seeks the services of a professional to assist her in placing the buy with one order. Allison needs to contact a ________.

A) media salesperson B) customer service rep C) media rep D) media-buying service E) media consolidator Answer: C Diff: 2 Page Ref: 332 Skill: Application AACSB: Analytic skills Objective: 11-1 129) Allison is working with a client that is preparing a national launch of a new line of packaged snacks. The client wants to maximize the reach of its marketing communication efforts. Which of the following media vehicles should Allison recommend?

A) network television shows with low rating points B) network television shows with high rating points C) local radio shows with high share of audience D) local radio shows with low share of audience E) special interest magazines with niche audiences Answer: B Diff: 3 Page Ref: 335 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 11-2 130) Allison is working with a client that wants to maximize frequency over a one-month period.

Which of the following media should Allison NOT recommend to this client?

A) radio B) daily newspapers C) monthly magazines D) network television E) cable television Answer: C Diff: 3 Page Ref: 336 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 11-2

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131) Explain what is meant by the term media vehicle and give three examples.

Answer: A media vehicle is a specific TV program (e.g., 60 Minutes, The Apprentice), newspaper (e.g., New York Times, Wall Street Journal), or radio station or program (e.g., NPR's All Things Considered, Rush Limbaugh's talk show).

Diff: 2 Page Ref: 327 Skill: Application AACSB: Analytic skills Objective: 11-1 132) Explain the difference between mass media and niche media.

Answer: Mass media reach a broad group of people; niche media reach an identifiable group of people with a distinct common interest. Niche media have a more selective, but not necessarily smaller, audience than mass media do.

Diff: 2 Page Ref: 327 Skill: Synthesis AACSB: Reflective thinking skills Objective: 11-1 133) Explain the difference between interactivity and engagement in terms of the media environment.

Answer: Interactivity means that audience members can send messages back and forth to the media and to each other; engagement, which may involve interactivity, refers to the captivating quality of media.

Diff: 3 Page Ref: 328 Skill: Synthesis AACSB: Reflective thinking skills Objective: 11-1 134) Why is word of mouth such a powerful force in marketing communication?

Answer: Word of mouth is important because of its inherent persuasiveness people tend to believe what they hear from friends, family members, and other important influencers.

Diff: 2 Page Ref: 329-330 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 11-1 135) Give an example of media convergence.

Answer: Examples of media convergence could include newspapers with websites, online radio, and electronic books.

Diff: 3 Page Ref: 328, 330 Skill: Synthesis AACSB: Reflective thinking skills Objective: 11-1

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136) Briefly describe the modern media landscape.

Answer: The modern media landscape includes up to 200 television channels in some markets, a huge number of special-interest publications, millions of websites, and new media forms that weren't even imagined 20 years ago.

Diff: 2 Page Ref: 330 Skill: Synthesis AACSB: Reflective thinking skills Objective: 11-1 137) Explain how the explosion in online media has affected print newspapers.

Answer: Many newspapers have closed or reduced staff and coverage. They have lost revenue due to the shift to online classified advertising and the ease with which readers can get news online.

Diff: 3 Page Ref: 331 Skill: Synthesis AACSB: Reflective thinking skills Objective: 11-1 138) Explain the difference between the terms delivery and connection.

Answer: Delivery refers to taking something to a person or place, but connection refers to joining two things together. Delivery is just the first step in connecting.

Diff: 3 Page Ref: 328 Skill: Synthesis AACSB: Reflective thinking skills Objective: 11-1 139) What is a media mix?

Answer: A media mix is the way in which various types of media are strategically combined in a media plan.

Diff: 2 Page Ref: 334 Skill: Synthesis AACSB: Reflective thinking skills Objective: 11-2 140) Jane is teaching an undergraduate introductory advertising course and is trying to explain the difference between reach and frequency. How should Jane explain these terms, and what is the goal of a media plan with respect to these two terms?

Answer: The goal of most media plans is to reach as many people in the target audience as often as the budget allows. Reach is the percentage of the media audience exposed at least once to the advertiser's message during a specific time frame. Frequency refers to the number of times a person is exposed to the advertisement.

Diff: 3 Page Ref: 335 Skill: Synthesis AACSB: Reflective thinking skills Objective: 11-2

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141) Your friend is confused about the terms impression and circulation. What would you say to help him understand the difference in these concepts?

Answer: An impression is one person's opportunity to be exposed one time to an ad in any media vehicle. The idea of impressions is different from circulation, because impressions (in print) estimate the actual readership, rather than just circulation, which refers to copies sold.

Diff: 3 Page Ref: 335 Skill: Synthesis AACSB: Reflective thinking skills Objective: 11-2 142) What are two ways that an advertising message's frequency can be increased? Give an example of each.

Answer: Frequency can be increased through scheduling, such as running a TV ad multiple times during the same program, or through the characteristics of the media itself, such as a consumer passing the same billboard each day.

Diff: 3 Page Ref: 336 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 11-2 143) Explain the relationship between a medium's level of intrusiveness and its capacity for personalization.

Answer: In general, the more intrusive a medium is, the more it can be personalized.

Diff: 3 Page Ref: 336 Skill: Synthesis AACSB: Reflective thinking skills Objective: 11-2 144) Laurie was with her toddler in the hair care aisle of Wal-Mart. Her daughter saw a bottle of shampoo that had a Winnie-the-Pooh head on the top and begged for it because she wanted to "play with Pooh!" Laurie purchased it for her daughter even though it cost almost three times as much as a similar shampoo that wasn't in a cute bottle. Why do you think Laurie did this?

Answer: The package can deliver customer benefits; in this case, Laurie's daughter perceived it as a toy.

Diff: 3 Page Ref: 339 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 11-3

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145) When P&G introduced Physique shampoo, it sent e-mails to people asking for referrals.

People referring 10 friends to the shampoo's promotional website received free merchandise and were entered into a sweepstakes to win a year's supply of the shampoo. Explain what this technique is and why marketers use it.

Answer: This is an example of viral marketing, which is a practice designed to deliver a groundswell of opinion or marketplace demand for a product. It uses e-mail to circulate a message among people. Marketers use this technique because positive word of mouth is the most influential form of media.

Diff: 3 Page Ref: 340 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 11-3 146) In one promotional activity, MSN.com had actors dressed as butterflies skate around the streets of New York. What form of advertising media does this represent, why do advertisers use it, and are there any drawbacks?

Answer: This is an example of guerilla marketing, which is unconventional marketing communication activities that are intended to get buzz on a limited budget. The idea is to use creative ways to reach people where they live, work, and walk to create a personal connection and a high level of impact. If it works, the encounter gets talked about by word of mouth rather than through the media. However, this approach does have limited reach.

Diff: 3 Page Ref: 342 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 11-3 147) To get consumers to come back frequently to its website, Amazon.com is considering developing a series of movie critics and book reviewers reviewing DVDs and books that are available to the market that week. The format is to be entertaining, with two reviewers bantering with each other during their reviews. Explain what this new Internet practice is called and why advertisers are starting to use it more often.

Answer: These are called webisodes, which are similar to television programs with recurring episodes in a developing story. They have created a new form of web advertising following the "advertainment" trend in television advertising that blends advertising and entertainment in order to attract audiences turned off by traditional mainstream media.

Diff: 2 Page Ref: 344 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 11-3

37 .

Refer to the scenario below to answer the following questions.

Suzanne and Shandra, longtime friends, share a love of animals and an animal grooming business. They own a small fleet of RV motorhomes outfitted with comfortable dog and cat grooming stations. On-the-Go Groomers come to clients' homes in the metro area to provide pet services instead of requiring pet owners to come to them!

Suzanne and Shandra are pleased with their success, but both feel that they are not reaching enough potential customers. So far, they have relied on local newspaper advertisements and positive word of mouth to generate business. Suzanne said, "We have come so far and really have a great little business going. But I think we could become much bigger with the right plans in place."

148) How might Suzanne and Shandra use addressable media in a media plan for On-the-Go Groomers?

Answer: Suzanne and Shandra could use email, mail, and telephone calls to keep in touch with current customers and offer expanded services.

Diff: 2 Page Ref: 327 Skill: Synthesis AACSB: Reflective thinking skills Objective: 11-1 149) Suzanne and Shandra advertised in the metro newspaper and now want to calculate how many people saw their ad last week. What are Suzanne and Shandra trying to determine?

Answer: Suzanne and Shandra want to know the reach of the ad.

Diff: 2 Page Ref: 335 Skill: Application AACSB: Reflective thinking skills Objective: 11-2 150) How can Suzanne and Shandra use packaging as a key contact point?

Answer: Services such as On-the-Go Groomers can look at the "packages" of uniforms and delivery vehicles as key contact points. They can use these contact points to catch consumers' attention and make a favorable, lasting impression.

Diff: 3 Page Ref: 338 Skill: Synthesis AACSB: Reflective thinking skills Objective: 11-3

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Advertising & IMC: Principles and Practice, 9e (Moriarty) Chapter 12 Traditional Media 1) Newspapers, magazines, brochures, directories, and other printed surfaces are known as ________ media.

A) broadcast B) narrowcast C) print D) directional E) interactive Answer: C Diff: 1 Page Ref: 354 Skill: Concept Objective: 12-1 2) Newspapers offer advertisers ________, which allows them to target specific consumer groups.

A) market intermediation B) market zoning C) market selectivity D) market focus E) selective binding Answer: C Diff: 2 Page Ref: 355 Skill: Concept Objective: 12-1 3) A ________ is a list of the charges for newspaper advertising space and the discounts given to local advertisers and advertisers who make volume buys.

A) rate card B) take-away C) give-away D) media kit E) sales kit Answer: A Diff: 1 Page Ref: 356 Skill: Concept Objective: 12-1

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4) An arrangement between a national advertiser and a local retailer whereby the retailer buys the ad and then the manufacturer pays for half or a portion is known as ________.

A) joint advertising B) co-op advertising C) run-of-paper advertising (ROP) D) selective advertising E) subsidized advertising Answer: B Diff: 1 Page Ref: 356 Skill: Concept Objective: 12-1 5) Which of the following is NOT a type of advertising found within the local newspaper?

A) classified B) display C) gatefold D) supplements E) free-standing insert (FSI) Answer: C Diff: 2 Page Ref: 356-357 Skill: Concept Objective: 12-1 6) What form of newspaper advertising is the dominant form, can be any size, and can be placed anywhere in the newspaper except the editorial page?

A) classified B) display C) supplement D) gatefold E) free-standing insert (FSI) Answer: B Diff: 2 Page Ref: 356 Skill: Concept Objective: 12-1 7) Advertisers who don't care where their ads run in the newspaper pay which rate?

A) co-op rate B) preferred-position rate C) run-of-paper (ROP) rate D) non-preferred rate E) classified rate Answer: C Diff: 1 Page Ref: 357 Skill: Concept Objective: 12-1

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8) What form of newspaper advertising comes from individuals wanting to sell their personal goods?

A) classified B) display C) supplements D) gatefolds E) co-op Answer: A Diff: 1 Page Ref: 357 Skill: Concept Objective: 12-1 9) Which of the following is a magazine-style publication inserted into a newspaper?

A) display advertisement B) co-op advertisement C) supplement D) gatefold E) free-standing insert (FSI) Answer: C Diff: 1 Page Ref: 357 Skill: Concept Objective: 12-1 10) Which company is an independent auditing group that represents advertisers, agencies, and publishers and verifies statements about newspaper circulation statistics?

A) A.C. Nielsen B) Simmons-Scarborough C) MediaMark, Inc. D) Auditing Bureau of Circulations (ABC) E) International Circulation Service (ICS) Answer: D Diff: 2 Page Ref: 358 Skill: Concept Objective: 12-1 11) Which of the following is NOT a main type of business magazine?

A) corporate B) professional C) farm D) consumer E) industrial Answer: D Diff: 2 Page Ref: 359 Skill: Concept Objective: 12-1

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12) Which classification of business magazines presents stories and information about an entire industry?

A) trade papers B) industrial magazines C) professional magazines D) vertical publications E) horizontal publications Answer: D Diff: 1 Page Ref: 359 Skill: Concept Objective: 12-1 13) Nontraditional delivery of magazines is referred to as ________, meaning the magazine is distributed free to specific audiences.

A) uncontrolled circulation B) nonmeasured circulation C) traditional circulation D) discounted circulation E) controlled circulation Answer: A Diff: 1 Page Ref: 360 Skill: Concept Objective: 12-1 14) Normally, the largest unit of ad space that magazines sell is the ________.

A) full-page ad B) double-page spread C) gutter spread D) bleed page E) nonbleed page Answer: B Diff: 1 Page Ref: 360 Skill: Concept Objective: 12-1 15) The white space running between the inside edges of the pages of a magazine is known as the ________.

A) gutter B) byline C) cover D) gatefold E) spread Answer: A Diff: 1 Page Ref: 360 Skill: Concept Objective: 12-1 4 .

16) A magazine page without outside margins, in which the color extends to the edge of the page, is called a ________.

A) marginless page B) gatefold C) double-spread D) full page E) bleed Answer: E Diff: 1 Page Ref: 360 Skill: Concept Objective: 12-1 17) A single or double page in a magazine can be broken into a variety of units called ________.

A) gatefolds B) fractional page space C) segments D) standard advertising units E) cut-outs Answer: B Diff: 2 Page Ref: 361 Skill: Concept Objective: 12-1 18) ________ combines information on subscribers kept in a database with a computer program to produce magazines that include special sections for subscribers based on their demographic profiles.

A) Fractional page space B) Satellite transmission C) Selective binding D) Desktop publishing E) Custom publishing Answer: C Diff: 2 Page Ref: 361 Skill: Concept AACSB: Use of information technology Objective: 12-1

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19) Which technology allows a magazine to print personalized messages on ads or on inserts?

A) selective binding B) desktop publishing C) ink-jet imaging D) one-order, one-bill E) satellite transmission Answer: C Diff: 2 Page Ref: 361 Skill: Concept AACSB: Use of information technology Objective: 12-1 20) Which company verifies magazine circulation numbers by auditing subscriptions as well as newsstand sales and also checks the number of delinquent subscribers and rates of renewal?

A) A.C. Nielsen B) Simmons-Scarborough C) MediaMark, Inc. D) Auditing Bureau of Circulations (ABC) E) International Circulation Service (ICS) Answer: D Diff: 2 Page Ref: 361 Skill: Concept Objective: 12-1 21) Directory advertising is described as ________ advertising because it tells people where to go to get the product or service they want.

A) primary B) secondary C) directional D) promotional E) selective Answer: C Diff: 2 Page Ref: 362 Skill: Concept Objective: 12-1

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22) What is the key difference between directory advertising and brand-image advertising?

A) Directory advertising reaches people who already know they have a need for the product or service.

B) Directory advertising provides directions on how to use the product, but brand-image advertising does not.

C) Directory advertising provides maps with directions on how to find the retailer's location.

D) Directory advertising is used in the initial stages of consumer decision making regarding a purchase.

E) Directory advertising is not as effective as brand-image advertising.

Answer: A Diff: 2 Page Ref: 363 Skill: Concept Objective: 12-1 23) ________ includes advertising on outdoor billboards, buses, posters on walls, telephone booths and shopping kiosks, taxi signs, grocery store carts, blimps, and so forth.

A) Public advertising B) Out-of-home advertising C) Broadcast advertising D) Transit advertising E) Miscellaneous advertising Answer: B Diff: 1 Page Ref: 364 Skill: Concept Objective: 12-2 24) ________ refers to billboards along streets and highways, as well as posters in other public locations.

A) Outdoor advertising B) Public advertising C) Broadcast advertising D) Transit advertising E) Miscellaneous advertising Answer: A Diff: 1 Page Ref: 364 Skill: Concept Objective: 12-2

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25) Which type of billboard is created by designers, printed in sections, and then shipped to an outdoor advertising company which then applies the sections to the poster panel's face on location?

A) painted bulletin B) printed bulletin C) painted poster D) printed poster E) cutout Answer: D Diff: 2 Page Ref: 365 Skill: Concept Objective: 12-2 26) Which type of billboard is normally created onsite and can even be painted on the sides of buildings, roofs, and natural structures, such as the side of a mountain?

A) painted outdoor bulletin B) printed outdoor bulletin C) painted outdoor poster D) printed outdoor poster E) outdoor extension Answer: A Diff: 2 Page Ref: 365 Skill: Concept Objective: 12-2 27) The cost of outdoor advertising is typically based on a(n) ________, which is based on a traffic count of vehicles passing a particular location during a specified period of time.

A) impression B) showing C) exposure D) reach E) frequency Answer: B Diff: 2 Page Ref: 366 Skill: Concept Objective: 12-2 28) ________ is seen by people riding inside buses, subway cars, and some taxis.

A) Interior transit advertising B) Exterior transit advertising C) Kiosk advertising D) On-premise advertising E) Mobile advertising Answer: A Diff: 2 Page Ref: 367 Skill: Concept Objective: 12-2 8 .

29) Which of the following is NOT considered an advantage of advertising in newspapers?

A) market coverage B) comparison shopping C) reaches educated consumers D) flexibility E) long life span Answer: E Diff: 2 Page Ref: 368 Skill: Concept Objective: 12-2 30) Which of the following is NOT considered to be an advantage of advertising in magazines?

A) ability to reach specialized audiences B) long life span C) flexibility D) high production values E) can accommodate complex messages Answer: C Diff: 2 Page Ref: 369 Skill: Concept Objective: 12-2 31) Which of the following is NOT an advantage of directory advertising?

A) inexpensive B) long life C) trusted D) competitive clutter E) flexibility in size, colors, and formats Answer: D Diff: 2 Page Ref: 369 Skill: Concept Objective: 12-2 32) Which of the following is NOT an advantage of outdoor advertising?

A) serves as a brand reminder B) high-impact C) directional medium D) inexpensive E) ability to convey complex messages Answer: E Diff: 2 Page Ref: 369 Skill: Concept Objective: 12-2

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33) Broadcast media does NOT include which of the following?

A) radio B) television C) video D) magazines E) film Answer: D Diff: 1 Page Ref: 369 Skill: Concept Objective: 12-3 34) Which of the following is NOT part of the structure of the radio industry?

A) public radio B) satellite radio C) Web radio D) AM/FM radio E) spot radio Answer: E Diff: 1 Page Ref: 369-370 Skill: Concept Objective: 12-3 35) ________ can deliver the same radio stations, regardless of where the listener is in the continental United States.

A) Satellite radio B) Cable radio C) Low-power FM (LPFM) D) AM/FM radio E) Public radio Answer: A Diff: 1 Page Ref: 370 Skill: Concept AACSB: Communication abilities Objective: 12-3 36) Nonprofit, noncommercial radio stations that serve a small market with reach of three to five miles that are not allowed to carry advertising are known as ________.

A) cable radio B) public radio C) AM/FM radio D) low-power FM (LPFM) E) web radio Answer: D Diff: 2 Page Ref: 370 Skill: Concept AACSB: Communication abilities Objective: 12-3 10 .

37) ________ provides webcasting, which is audio streaming through a website.

A) Satellite radio B) Cable radio C) Low-power FM (LPFM) D) Web radio E) Public radio Answer: D Diff: 1 Page Ref: 370 Skill: Concept AACSB: Use of information technology Objective: 12-3 38) The typical radio programming day is divided into five segments called ________.

A) listener groups B) drive times C) coverages D) ratings E) dayparts Answer: E Diff: 1 Page Ref: 371 Skill: Concept Objective: 12-3 39) ________ refers to the number of homes in a geographic area that are able to pick up a radio station clearly, whether those homes are actually tuned in or not.

A) Circulation B) Coverage C) Rating D) Impression E) Gross impression Answer: B Diff: 2 Page Ref: 371 Skill: Concept AACSB: Communication abilities Objective: 12-3 40) ________ measure(s) the percentage of homes actually tuned in to a particular radio station.

A) Circulation B) Coverage C) Ratings D) Impressions E) Gross impressions Answer: C Diff: 2 Page Ref: 371 Skill: Concept Objective: 12-3 11 .

41) Which of the following estimates the size of radio audiences for more than 250 markets in the United States?

A) Arbitron B) RADAR C) A.C. Nielsen D) Simmons E) MediaMark Answer: A Diff: 2 Page Ref: 371 Skill: Concept Objective: 12-3 42) Commercials set to music are known as ________.

A) musicals B) lyricals C) jingles D) dual-coded E) PSAs Answer: C Diff: 1 Page Ref: 371 Skill: Concept AACSB: Communication abilities Objective: 12-3 43) Which is the largest category of radio advertising revenues?

A) network B) national spot C) local D) satellite E) web Answer: C Diff: 2 Page Ref: 372 Skill: Concept Objective: 12-3 44) A(n) ________ is a group of local affiliates connected to one or more national networks through telephone wires and satellites.

A) radio network B) national syndicate C) local network D) AM network E) FM network Answer: A Diff: 1 Page Ref: 372 Skill: Concept Objective: 12-3 12 .

45) In which type of radio advertising does an advertiser place an advertisement with an individual station?

A) network B) spot C) local D) AM E) FM Answer: B Diff: 2 Page Ref: 372 Skill: Concept Objective: 12-3 46) Aperture refers to knowing which of the following?

A) when the largest audience is listening to a program B) when the target audience is most likely to be listening and responsive C) when the largest audience is engaged in a program D) when an advertisement is most likely to break through the clutter E) when a product does not need to be visually demonstrated Answer: B Diff: 2 Page Ref: 373 Skill: Concept AACSB: Communication abilities Objective: 12-3 47) Which advertising medium has been called the "theater of the mind"?

A) magazines B) radio C) newspapers D) television E) outdoor Answer: B Diff: 2 Page Ref: 373 Skill: Concept AACSB: Communication abilities Objective: 12-3 48) Which of the following is NOT a national, over-the-air television network in the United States?

A) Entertainment and Sports Programming Network (ESPN) B) American Broadcasting Company (ABC) C) Columbia Broadcasting System (CBS) D) National Broadcasting Company (NBC) E) Fox Broadcasting Answer: A Diff: 2 Page Ref: 374 Skill: Concept Objective: 12-3 13 .

49) What is the most familiar example of subscription television?

A) satellite TV B) TiVo C) high-definition TV D) cable E) syndication Answer: D Diff: 1 Page Ref: 376 Skill: Concept Objective: 12-3 50) Satellite television is a form of ________ television.

A) syndicated B) underwritten C) public D) subscription E) addressable Answer: D Diff: 2 Page Ref: 376 Skill: Concept Objective: 12-3 51) Cable News Network (CNN), the Disney Channel, and the Entertainment and Sports Programming Network (ESPN) are known as ________.

A) cable networks B) superstations C) broadcast networks D) affiliates E) syndicated networks Answer: A Diff: 2 Page Ref: 376 Skill: Concept Objective: 12-3 52) WTBS-Atlanta, WGN-Chicago, and WWOR-New York are all independent television stations whose programs are carried by satellite to cable operators; they are known as ________.

A) cable networks B) independent superstations C) broadcast networks D) affiliates E) syndicated networks Answer: B Diff: 2 Page Ref: 376 Skill: Concept Objective: 12-3

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53) Local television stations that are not affiliated with a network are known as ________.

A) disconnects B) interconnects C) spot stations D) syndicated stations E) independent stations Answer: E Diff: 1 Page Ref: 376 Skill: Concept Objective: 12-3 54) Using ________, national advertisers buy local advertising on a city-by-city basis from local television stations.

A) independent buys B) spot buys C) specialty buys D) syndicated buys E) underwriting Answer: B Diff: 1 Page Ref: 376 Skill: Concept Objective: 12-3 55) ________ are programs that can be sold to independent firms and other cable channels to replay as reruns.

A) Syndicated programs B) Network programs C) Cable programs D) Pay-per-view programs E) On-demand programs Answer: A Diff: 2 Page Ref: 377 Skill: Concept Objective: 12-3 56) Interactive television creates the opportunity for ________.

A) addressable television B) high-definition television C) pay-per-view television D) 3-D television E) on-demand television Answer: A Diff: 2 Page Ref: 377 Skill: Concept AACSB: Use of information technology Objective: 12-3 15 .

57) What technology allows users to record television programs without the hassles of videotape?

A) interactive TV B) high-definition TV C) digital video recorders D) broadband recorders E) digital enhancers Answer: C Diff: 2 Page Ref: 378 Skill: Concept AACSB: Use of information technology Objective: 12-3 58) TiVo's capability to let users pause, do instant replays, and begin watching programs even before the recording has finished is known as ________.

A) sweeping B) high-definition TV C) time-shifting D) interactive television E) addressable television Answer: C Diff: 1 Page Ref: 378 Skill: Concept AACSB: Use of information technology Objective: 12-3 59) What does one television rating point represent?

A) 1 percent of the TV viewing audience B) 1,000 TV households C) 1,000,000 TV households D) 1,000 TV viewers E) 1 percent of the nation's TV households Answer: E Diff: 3 Page Ref: 379 Skill: Concept Objective: 12-3 60) Which of the following statements is true regarding television ratings and share?

A) Share refers to the percentage of viewers based on the number of TV households.

B) The share figure is always larger than the rating.

C) Rating refers to the percentage of viewers based on the number of sets turned on.

D) The rating figure is always larger than the share.

E) There is no difference between rating and share, for the two terms are synonymous.

Answer: B Diff: 3 Page Ref: 379 Skill: Concept Objective: 12-3 16 .

61) Which term refers to the percentage of viewers based on the number of television sets turned on?

A) rating B) share C) gross rating points D) gross impressions E) impressions Answer: B Diff: 2 Page Ref: 379 Skill: Concept Objective: 12-3 62) At what level does A.C. Nielsen measure the television audience demographics?

A) national only B) national and local C) network and spot D) local only E) in-home and out-of-home Answer: B Diff: 2 Page Ref: 379 Skill: Concept Objective: 12-3 63) An instrument that records what television shows are being watched, the number of households that are watching, and which family members are viewing is known as a(n) ________.

A) people meter B) audiometer C) tv meter D) frequency meter E) viewing meter Answer: A Diff: 1 Page Ref: 379 Skill: Concept AACSB: Use of information technology Objective: 12-3

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64) In which type of network television advertising does the advertiser assume the total financial responsibility for producing the program and providing the accompanying commercials?

A) participations B) spot announcements C) dayparts D) sponsorships E) product placement Answer: D Diff: 1 Page Ref: 380 Skill: Concept Objective: 12-3 65) In which type of network television advertising does the advertiser pay for 10, 15, 20, 30, or 60 seconds of commercial time during one or more programs?

A) participations B) spot announcements C) dayparts D) sponsorships E) product placement Answer: A Diff: 1 Page Ref: 380 Skill: Concept Objective: 12-3 66) Which type of television advertising appears in the breaks between programs, which local affiliates sell to advertisers who want to show their ads locally?

A) participations B) spot announcements C) dayparts D) sponsorships E) product placement Answer: B Diff: 1 Page Ref: 381 Skill: Concept Objective: 12-3 67) Communication directed at an audience that may not fit the advertiser's target market is called ________.

A) underwritten advertising B) wasted reach C) aperture D) spillover E) clutter Answer: B Diff: 1 Page Ref: 381 Skill: Concept Objective: 12-3 18 .

68) Movie theaters sell time at the beginning of their film showings for commercials called ________.

A) participations B) captive showings C) selective showings D) trailers E) sponsorships Answer: D Diff: 1 Page Ref: 382 Skill: Concept Objective: 12-4 69) Which of the following is NOT considered a disadvantage of radio advertising?

A) listener inattentiveness B) lack of visuals C) lack of control D) scheduling and buying difficulties E) inflexibility Answer: E Diff: 2 Page Ref: 383 Skill: Concept AACSB: Communication abilities Objective: 12-4 70) Which of the following is NOT an advantage of advertising on television?

A) pervasiveness B) cost-efficiency C) high impact D) flexibility E) high level of viewing Answer: D Diff: 3 Page Ref: 383 Skill: Concept AACSB: Communication abilities Objective: 12-4 71) Newspapers are primarily used by advertisers trying to reach a national market.

Answer: FALSE Diff: 2 Page Ref: 355 Skill: Concept AACSB: Communication abilities Objective: 12-1

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72) National advertisers are not heavy users of newspapers as an advertising medium because each paper has its own size guidelines for ads, making it impossible to prepare one ad that would fit every newspaper.

Answer: FALSE Diff: 2 Page Ref: 356 Skill: Concept Objective: 12-1 73) One alternative that allows a national advertiser to pay the local rate is co-op advertising with a local retailer.

Answer: TRUE Diff: 1 Page Ref: 356 Skill: Concept Objective: 12-1 74) Advertisers who don't care where their ads run in the newspaper pay the nonpreferredposition rate (NPR).

Answer: FALSE Diff: 3 Page Ref: 357 Skill: Concept Objective: 12-1 75) The dominant form of newspaper advertising is classified advertising.

Answer: FALSE Diff: 2 Page Ref: 357 Skill: Concept Objective: 12-1 76) Newspaper readership tends to be highest among older people and people with a higher educational level and lowest among people in their late teens and early twenties.

Answer: TRUE Diff: 2 Page Ref: 357-358 Skill: Concept Objective: 12-1 77) The two main types of audiences that magazines target are consumer and business audiences.

Answer: TRUE Diff: 2 Page Ref: 359 Skill: Concept Objective: 12-1 78) Business magazines target business readers and include trade papers, industrial magazines, and professional magazines.

Answer: TRUE Diff: 2 Page Ref: 359 Skill: Concept Objective: 12-1 20 .

79) A horizontal publication deals with a business function that cuts across industries.

Answer: TRUE Diff: 2 Page Ref: 359 Skill: Concept Objective: 12-1 80) Selective binding allows a magazine to print personalized messages directly on ads or on inserts.

Answer: FALSE Diff: 2 Page Ref: 361 Skill: Concept AACSB: Use of information technology Objective: 12-1 81) Magazine rates are based on the readership of the publication.

Answer: FALSE Diff: 2 Page Ref: 361 Skill: Concept Objective: 12-1 82) Directory advertising is described as directional advertising because it tells people where to go to get the product or service they want.

Answer: TRUE Diff: 2 Page Ref: 362 Skill: Concept Objective: 12-1 83) Outdoor advertising includes everything from billboards to hot air-balloons, including ads on buses; posters on walls, telephone booths, and shopping kiosks; painted semi-trucks; taxi signs; and skywriting.

Answer: FALSE Diff: 2 Page Ref: 364 Skill: Concept AACSB: Communication abilities Objective: 12-2 84) The outdoor industry uses a system based on impressions, which refers to a standard unit for space sales based on the opportunity a person has to see a particular outdoor board.

Answer: FALSE Diff: 2 Page Ref: 366 Skill: Concept Objective: 12-2

21 .

85) Public radio stations are considered noncommercial in that they rely on listener support for most of their funding and that no commercial support is allowed by law.

Answer: FALSE Diff: 2 Page Ref: 370 Skill: Concept Objective: 12-3 86) Radio is a highly segmented medium.

Answer: TRUE Diff: 2 Page Ref: 370-371 Skill: Concept AACSB: Communication abilities Objective: 12-3 87) A radio network is a group of local affiliates connected to one or more national networks through telephone wires or satellites.

Answer: TRUE Diff: 1 Page Ref: 372 Skill: Concept AACSB: Use of information technology Objective: 12-3 88) Syndicated radio programs offer flexibility through their willingness to run unusual ads, allow last-minute changes, and negotiate rates.

Answer: FALSE Diff: 3 Page Ref: 372 Skill: Concept Objective: 12-3 89) Although radio may not be a primary medium for most businesses, it does have excellent reminder and reinforcement capability.

Answer: TRUE Diff: 2 Page Ref: 373 Skill: Concept AACSB: Communication abilities Objective: 12-3 90) One disadvantage of advertising on radio is lack of control, which means advertisers do not have much control over when their ads will air.

Answer: FALSE Diff: 2 Page Ref: 373 Skill: Concept Objective: 12-3

22 .

91) Currently, there are six national, over-the-air television networks in the United States: ABC, CBS, NBC, Fox, WB, and UPN. Answer: FALSE Diff: 2 Page Ref: 374 Skill: Concept Objective: 12-3 92) The most powerful radio stations are called "superstations" and can deliver signals for long distances.

Answer: FALSE Diff: 3 Page Ref: 376 Skill: Concept AACSB: Use of information technology Objective: 12-3 93) Cable News Network (CNN), the Disney Channel, and the Entertainment and Sports Programming Network (ESPN) are examples of independent superstations.

Answer: FALSE Diff: 3 Page Ref: 376 Skill: Concept Objective: 12-3 94) Television stations not affiliated with a network are known as independent stations.

Answer: TRUE Diff: 1 Page Ref: 376 Skill: Concept Objective: 12-3 95) National advertisers sometimes buy local advertising on a city-by-city basis using spot buys.

Answer: TRUE Diff: 2 Page Ref: 376 Skill: Concept Objective: 12-3 96) The FCC allows Public Broadcasting System (PBS) stations to air commercial messages only during the local 2.5-minute program breaks.

Answer: TRUE Diff: 2 Page Ref: 377 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 12-3

23 .

97) TiVo is a substantial threat to marketers because it allows consumers to skip commercials completely.

Answer: TRUE Diff: 2 Page Ref: 378 Skill: Concept AACSB: Use of information technology Objective: 12-3 98) Sweeps periods for television happen four times a year.

Answer: TRUE Diff: 3 Page Ref: 379 Skill: Concept Objective: 12-3 99) In program sponsorships, the advertiser assumes the total financial responsibility for producing the program and providing the accompanying commercials.

Answer: TRUE Diff: 1 Page Ref: 380 Skill: Concept Objective: 12-3 100) Participations are commercials that appear in the breaks between programs, which local affiliates sell to advertisers who want to show their ads locally.

Answer: FALSE Diff: 2 Page Ref: 380 Skill: Concept Objective: 12-3 101) Advertisers trying to reach a wide audience often need to buy time on several radio stations, which has been made easier by the "one-order, one-bill" system.

Answer: FALSE Diff: 3 Page Ref: 356 Skill: Application AACSB: Analytic skills Objective: 12-1 102) One reason free-standing insert (FSI) advertising is growing is because it allows greater control over the reproduction quality of the advertisement.

Answer: TRUE Diff: 2 Page Ref: 357 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 12-1

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103) Consumers are more likely to see transit advertising in an urban environment than in a suburban or rural environment.

Answer: TRUE Diff: 2 Page Ref: 367 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 12-2 104) The disadvantages of advertising in magazines include limited flexibility, lack of immediacy, high cost, and limited distribution.

Answer: TRUE Diff: 2 Page Ref: 369 Skill: Synthesis AACSB: Reflective thinking skills Objective: 12-2 105) One advantage of outdoor advertising is that it is easy for potential consumers to spot.

Answer: FALSE Diff: 2 Page Ref: 369 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 12-2 106) Explain the three main types of newspaper advertising.

Answer: Types of newspaper advertising: (1) Classified Advertising –Advertising by individuals to sell their personal goods and advertising by local businesses. These ads are arranged according to their interest to readers, such as "Help Wanted," "Real Estate for Sale," and "Cars for Sale."

(2) Display Advertising –Can be any size and can be placed anywhere in the newspaper except the editorial page. Display advertising is further divided into two subcategories: local (retail) and national (general).

(3) Supplements –Syndicated, meaning an independent publisher sells its publications to newspapers throughout the country, or local full-color advertising inserts that appear throughout the week and especially in the Sunday edition of newspapers. A free-standing insert (FSI) is the set of advertisements, such as the grocery ads, that are inserted into the newspaper.

Diff: 2 Page Ref: 356-357 Skill: Synthesis AACSB: Reflective thinking skills Objective: 12-1

25 .

107) Explain three advantages and three disadvantages of advertising in magazines.

Answer: Students can discuss any three advantages of magazines: (1) Target Audiences –Ability of magazines to reach specialized audiences.

(2) Audience Receptivity –The editorial environment of a magazine lends authority and credibility to the advertising.

(3) Long Life Span –People tend to read magazines at a comparatively slow rate, typically over a couple of days, so they offer an opportunity to use detailed copy. In addition, magazines have high reach potential because they are passed along to others.

(4) Format –Allows creative advertising variety through multiple pages, inserts, and other features.

(5) Visual Quality –Excellent because they are printed on high-quality paper that provides superior photo reproduction.

(6) Messages –Good for complex messages.

Students can discuss any three disadvantages of magazines: (1) Limited Flexibility –Ads must be submitted well in advance of the publication date.

(2) Lack of Immediacy –Some readers do not look at an issue of a magazine until long after it comes to them, so the ad may take a long time to have an effect on the reader.

(3) High Cost –Rates are quite high; however, magazines with carefully segmented audiences can be cost-efficient because they reach a tightly targeted audience.

(4) Distribution –Sometimes limited. Many of the different magazines that exist typically are not distributed to a broad spectrum of potential audience members.

Diff: 2 Page Ref: 358, 369 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 12-1 108) Explain how directory advertising is different from brand-image advertising.

Answer: Directory advertising is described as directional advertising because it tells people where to go to get the product or service they want. The key difference between directional advertising and brand-image advertising is that directory advertising reaches prospects, people who already know they have a need for the product or service; brand-image advertising seeks to create a need. Directory advertising is the main medium that prospects consult once they have decided to buy something they need or want.

Diff: 2 Page Ref: 363 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 12-1

26 .

109) Name and describe the three major types of radio advertising.

Answer: (1) Network Radio Advertising –Radio advertising bought from national networks that distribute programming and advertising to their affiliates. Network radio is a group of local affiliates connected to one or more national networks through telephone wires and satellites.

(2) Spot Radio Advertising –Advertiser places an advertisement with an individual station rather than through a network. Spot radio advertising makes up nearly 80 percent of all radio advertising.

(3) Syndicated Radio Advertising –Program syndication has benefited network radio because it offers advertisers a variety of high-quality, specialized, and usually original programs. Both networks and private firms offer syndication, and advertisers value syndicated programming because of the high level of loyalty of its audience.

Diff: 2 Page Ref: 372 Skill: Synthesis AACSB: Reflective thinking skills Objective: 12-3 110) Discuss three advantages and three disadvantages of advertising on television.

Answer: The three advantages of advertising on television are: (1) Pervasiveness –Television is in almost every home; some homes have a TV in every room, and these TVs are turned on for a significant part of the day.

(2) Cost-efficiency –Many view television as the most cost-effective way to deliver a massmedia message because it has such a wide reach. Even though it is expensive on an absolute basis, it is cost-efficient because the costs are spread across so many viewers.

(3) Impact –The interaction of sight, sound, color, motion, and drama creates a strong emotional response. It is also good for delivering demonstrations and dramas.

Students can discuss any three of the disadvantages of advertising on television: (1) Production Costs –Extremely high cost of producing and running commercials. Production costs include filming the commercial and paying the talent writers, directors, and actors.

(2) Clutter –There are no restrictions on the commercial time per hour.

(3) Wasted Reach –Communication may be directed at an unresponsive (and often uninterested) audience that may not fit the advertiser's target market characteristics.

(4) Inflexibility –Most network television advertising is purchased in the spring and early summer for the next fall season, and if an advertiser is not able to make this up-front buy, only limited time slots remain available. Also, it is difficult to make last-minute adjustments in copy and visuals, and production of a TV commercial takes weeks to months.

(5) Intrusiveness –TV commercials intrude into the programs and are therefore more irritating than other forms of advertising, leading viewers to mute and zap commercials.

Diff: 3 Page Ref: 381-383 Skill: Synthesis AACSB: Reflective thinking skills Objective: 12-3

27 .

111) A national advertiser would like to advertise more in newspapers, but there is a substantial rate differential between national advertisers purchasing the same ad size as local retailers. On average, the national advertisers must pay more than 60 percent more for the same space. What can a national advertiser do to avoid this rate differential?

A) Use the "one-order, one-bill" ordering system because they've negotiated the rates down to the local rates.

B) Use the "co-op" ordering system because they've negotiated the rates down to the local rates.

C) Advertise only in larger cities because newspapers in those markets do not charge a rate differential.

D) Use co-op advertising, which is an arrangement between an advertiser and a retailer whereby the retailer buys the ad at the local rate and the advertiser reimburses some or all of the costs.

E) There's really nothing a national advertiser can do to avoid the higher rate.

Answer: D Diff: 2 Page Ref: 356 Skill: Application AACSB: Reflective thinking skills Objective: 12-1 112) P&G is a major producer of consumer coupons and prefers to deliver them to consumers through newspaper advertising. P&G is very concerned about the reproduction quality of the advertisements, wants to command more attention than just another ad in the paper, and wants to place different ads in different markets. Which type of newspaper advertising will meet P&G's needs?

A) classified B) display C) supplements D) co-op E) preferred Answer: C Diff: 2 Page Ref: 357 Skill: Application AACSB: Analytic skills Objective: 12-1

28 .

113) Dole, the fresh banana, juice, and canned fruit company, began testing a glossy magazine, Dole Fresh Choices, in the banana section of a grocery store in Houston and has plans for more widespread distribution. The magazine, targeted toward female customers, offers articles on health and nutrition. What type of magazine is this?

A) trade B) industrial C) professional D) consumer E) vertical Answer: D Diff: 2 Page Ref: 360 Skill: Application AACSB: Analytic skills Objective: 12-1 114) The outdoor board on the side of the highway with the message telling drivers that the Holiday Inn Express is at the next exit best illustrates which advantage of outdoor advertising?

A) high-impact medium offering larger-than-life visuals B) good situational medium C) flexibility D) reinforcement of a creative concept employed in other media E) least expensive of all major media Answer: B Diff: 2 Page Ref: 369 Skill: Application AACSB: Analytic skills Objective: 12-2 115) Laurie loves the car radio her husband gave her for her birthday because she spends hours on the road as a sales rep covering the entire southeast region of the United States. She is able to listen to the same station, regardless of where she is in the country, and the music stations are completely commercial-free. She has to pay a monthly fee for this programming, but to her, it's worth it. With respect to the structure of the radio industry, what kind of radio does this represent?

A) AM/FM B) cable radio C) satellite radio D) web radio E) LPFM Answer: C Diff: 2 Page Ref: 370 Skill: Application AACSB: Analytic skills Objective: 12-3

29 .

116) WLSU is the campus radio station at Louisiana State University. It is a nonprofit, noncommercial station that serves a small market (i.e., the university community), with a reach of three to five miles. WLSU provides a variety of music and informational programming, and all LSU student, faculty, and staff performances are broadcast on this station. With respect to the structure of the radio industry, WLSU is an example of ________.

A) public radio B) cable radio C) satellite radio D) low-power FM (LPFM) E) web radio Answer: D Diff: 2 Page Ref: 370 Skill: Application AACSB: Analytic skills Objective: 12-3 117) Rush Limbaugh is a conservative talk show host who is heard on hundreds of radio stations around the country. Advertisers such as Select Comfort beds advertise on his program because of the high level of loyalty of his audience. Local radio stations purchase the rights to air his program on their stations. National advertisers can purchase advertising time from the program provider or the local station, and local businesses usually purchase advertising during this show from the local station. What type of radio advertising does this represent?

A) network radio advertising B) spot radio advertising C) syndicated radio advertising D) news radio advertising E) up-front radio advertising Answer: C Diff: 2 Page Ref: 372 Skill: Application AACSB: Analytic skills Objective: 12-3

30 .

118) WDAM is a local television station in Hattiesburg, Mississippi, that airs programming provided from the National Broadcasting Company (NBC). This station has a contractual relationship with NBC in which it agrees to carry programming originating from NBC during a certain part of its schedule. WDAM is allowed to sell a small amount of time during this programming to advertisers wishing to reach the local market, but the station typically pays NBC 30 percent of the fees it charges for this local advertising. However, WDAM receives 15 percent of the advertising revenue paid to NBC by national advertisers. WDAM is known as a network ________.

A) affiliate B) subscriber C) agent D) assistant E) enabler Answer: A Diff: 2 Page Ref: 374-376 Skill: Application AACSB: Analytic skills Objective: 12-3 119) Some have predicted that, in the future, television will allow consumers to purchase products they see on a television show. For example, if you like the shirt Raymond is wearing in Everybody Loves Raymond, you will be able to click on the shirt and will be taken to a website that allows you to purchase it. When finished, you can pick up viewing the program where you left off. What type of television delivery system or program option does this represent?

A) pay-per-view B) high-definition TV (HDTV) C) interactive television D) e-commerce television E) network cable Answer: C Diff: 2 Page Ref: 377 Skill: Application AACSB: Use of information technology Objective: 12-3

31 .

120) Recently, advertisers were upset because some magazines were reporting circulation figures to be higher than they actually were. Which of the following best explains why advertisers were upset?

A) Any negative publicity for a magazine will reflect poorly on their brands because they are supporting that publication.

B) Falsifying circulation figures will hinder future distribution for a magazine.

C) Inflated circulation figures from just a few publications make the entire industry suspect.

D) Magazine advertising rates are based on circulation figures.

E) It generated negative publicity among consumers, which are the advertisers' target market.

Answer: D Diff: 3 Page Ref: 361 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 12-1 121) Starbucks is interested in radio advertising and wants to reach consumers at the best time of day to get them to drive into a Starbucks location. Research has shown that 80 percent of consumers drink the majority of coffee before going to work or on their way to work. What daypart would you recommend Starbucks use to reach these consumers?

A) 6 to 10 a.m. (morning drive time) B) 10 a.m. to 3 p.m. (daytime) C) 3 to 7 p.m. (evening drive time) D) 7 p.m. to midnight (nighttime) E) midnight to 6 a.m. (all night) Answer: A Diff: 2 Page Ref: 371 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 12-3 122) Rain Forest Car Wash wants to start advertising to increase its business. Rain Forest is looking for an advertising medium that will allow the company to advertise frequently yet still be affordable. Rain Forest also wants the capability to change messages to reflect current conditions that affect a car's appearance, such as the high level of pollen that settles on cars from one day to the next. Based on this information, which advertising medium would you recommend for this business?

A) transit B) magazines C) television D) radio E) outdoor billboards Answer: D Diff: 2 Page Ref: 372-373/383 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 12-3 32 .

123) Wendy's fast food restaurant wants to increase radio advertising in the metropolitan area of several major cities. Wendy's wants to advertise close to lunch and dinner times because it feels that consumers are already in their cars and will more likely drive into a Wendy's if they hear an ad around the time they are hungry. Wendy's is seeking to reach as wide of an audience as possible and intends to advertise on several stations within each area to do so. Considering the disadvantages of advertising on the radio, which one is most relevant in this situation?

A) listener inattentiveness B) lack of visuals C) clutter D) scheduling and buying difficulties E) lack of control Answer: D Diff: 3 Page Ref: 372-373/383 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 12-3 124) The New York Times wants to begin an advertising campaign using television to attract more subscribers. The Times wants to reach an affluent, well-educated audience. One goal of its promotion is to not appear to be asking for purchase, merely to make the publication more salient in the minds of the target audience. Based on this information, which of the following delivery systems or programming options would be best for the newspaper?

A) network television B) public television C) cable television D) program syndication E) interactive television Answer: B Diff: 2 Page Ref: 377 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 12-3

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125) A popular comedy show shown on NBC had a rating or 5.0 but a share of 9. Why are these two numbers different?

A) Rating includes all TV households and share considers only those households that have their TVs on at that time.

B) Share includes all TV households and rating considers only those households that have their TVs on at that time.

C) Rating is provided by Arbitron and share is provided by Nielsen, and both use different methods for estimating audience size.

D) Rating is provided by Nielson and share is provided by Arbitron, and both use different methods for estimating audience size.

E) Rating compares audience size to the entire TV universe, while share compares only audience size to other network programming.

Answer: A Diff: 2 Page Ref: 379 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 12-3 Refer to the following passage to answer the questions below.

Allison works in the media department of a large advertising agency. Her biggest client is P&G, a major manufacturer of consumer packaged goods that spends billions on consumer advertising every year. Allison is putting together a media plan for P&G using a variety of media vehicles.

126) Allison's media plan calls for advertising in national newspapers. If P&G doesn't care where its ads run in the newspaper, what rate will Allison request for her client?

A) run-of-paper (ROP) rate B) display ad C) supplement rate D) classified rate E) differential rate Answer: A Diff: 2 Page Ref: 357 Skill: Application AACSB: Analytic skills Objective: 12-1

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127) The media plan also calls for magazine advertising, and the creative execution will have the color extend to the edge of the page. What type of page will Allison need to purchase?

A) gatefold B) back cover C) double-page spread D) bleed E) gutterless Answer: D Diff: 2 Page Ref: 360 Skill: Application AACSB: Analytic skills Objective: 12-1 128) Allison learns that one magazine she is considering for P&G combines information on subscribers kept in a database with a computer program to produce magazines that include special sections for subscribers based on their demographic profiles. What is this known as?

A) selective binding B) relationship management C) undifferentiated distribution D) ink-jet imaging E) satellite transmission Answer: A Diff: 2 Page Ref: 361 Skill: Application AACSB: Analytic skills Objective: 12-1 129) The bulk of P&G's television advertising is 30-second commercials that air nationwide during several different programs every day of the week. What type of television advertising is this?

A) sponsorship B) participations C) spot announcements D) on-network syndication E) specialty television Answer: B Diff: 2 Page Ref: 380 Skill: Application AACSB: Analytic skills Objective: 12-3

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130) P&G is concerned that some of the controversial programming on television today hurts its brand's image if the company advertises during that type of programming. Allison suggests that P&G develops its own family-friendly programming, assuming the total financial responsibility for producing the program and providing the accompanying commercials. What form of television advertising would P&G be undertaking?

A) sponsorship B) participations C) spot announcements D) on-network syndication E) specialty television Answer: A Diff: 2 Page Ref: 380 Skill: Application AACSB: Analytic skills Objective: 12-3 131) The beginning of the chapter describes the insurance company Aflac and the success of its advertising campaign. How did the company bring brand awareness from 12 percent to more than 90 percent and increase profits?

Answer: The company initially increased brand recognition through the comedic commercials featuring the Aflac duck. After the advertisement peaked brand identification, the company began a campaign of brand education using new and traditional media. The effort contains a variety of 45 elements in addition to the traditional print, outdoor, and TV. Diff: 2 Page Ref: 353 Skill: Synthesis AACSB: Reflective thinking skills Objective: 12-1 132) Lion's Choice restaurant is launching its first national newspaper advertising campaign. The ads will be placed in over 2,000 local, state, and national newspapers over six weeks. How can the company use the same advertisement for every newspaper?

Answer: The standard advertising unit (SAU) system, created by the American Newspaper Publishers Association and the Newspaper Advertising Bureau, allows an advertiser to select one of 56 standard ad sizes that will work in every newspaper in the country.

Diff: 2 Page Ref: 356 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 12-1

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133) What advantages do the Yellow Pages bring to consumers and sellers?

Answer: The Yellow Pages are specifically designed to reach consumers when they are thinking about a purchase. It is a medium in which consumers voluntarily seek out ads. Its monthly reach exceeds that of search engines, and it is considered a trustworthy media by consumers.

Diff: 2 Page Ref: 363 Skill: Synthesis AACSB: Reflective thinking skills Objective: 12-1 134) To announce the expansion of a Louis Vuitton flagship store in the center of Hong Kong's luxury shopping district, the marketer made a building resemble an LV hard-case canvas trunk, with brass fittings and a cherry monogram print from the summer collection. The 3D ad is 26 feet high and 151 feet by 59 feet wide. Describe the type of advertising medium this represents and the advantages of it.

Answer: Out-of-home advertising includes everything from billboards to hot-air balloons, and a building fits in this category. This probably best represents a painted bulletin with the entire building being the medium. Students could probably also discuss this as an "on-premise sign" since the entire building is really a sign.

Diff: 2 Page Ref: 364-365 Skill: Synthesis AACSB: Reflective thinking skills Objective: 12-2 135) What were some of the ways to ensure effective outdoor advertising discussed in Practical Tips?

Answer: Practical Tips discussed eight tips for outdoor advertising: (1) Frequency of exposure –Build brand image through frequent exposure over an extended period of time.

(2) Brand image touch-up –Shifting a brand's image to stay relevant.

(3) The power of the visual –Visually creative images to entice consumers.

(4) A friend in the neighborhood –Building relationships with consumers.

(5) Brand image build-up –Long-term branding leads to a positive consumer attitude.

(6) Speaking the language of consumers-Brands serve as a form of consumer communication shorthand.

(7) Clarity of focus –Normally the shorter the copy, the more effective the message.

(8) A gigantic canvas –Successful outdoor advertisers use the "giant canvas."

Diff: 3 Page Ref: 366 Skill: Synthesis AACSB: Reflective thinking skills Objective: 12-2

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136) Seasons is a new restaurant opening in town, and the owners know they should advertise to attract customers. Based on what you learned in this chapter, recommend some media options for this restaurant.

Answer: Students can answer in a variety of ways, but their answers should demonstrate knowledge of traditional media concepts covered in this chapter. For example, because this is a local restaurant, newspapers, out-of-home, local radio, and directory advertising would be most appropriate.

Diff: 2 Page Ref: 368-369, 383 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 12-2 137) Carla works in the student activities office of her university and was given the task of finding a way to better inform students of upcoming activities and events. It's a rather large university with a bi-weekly newspaper and student FM radio station. Give Carla some suggestions on how she might accomplish this.

Answer: Because Carla is trying to reach a targeted audience, students attending the university, she needs to determine the best media to reach them. Two obvious media vehicles are the student newspaper and the university radio station. Another medium that might be useful is out-of-home media, such as kiosks and posters. Also, if there is a bus route through the campus, transit advertising, both interior and exterior, would be appropriate.

Diff: 2 Page Ref: 368-369, 383 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 12-2 138) Tim is working at a summer job selling advertising space for the campus telephone directory. Some of the businesses he calls on, even those that currently advertise in the directory, are reluctant because they don't see the benefit of advertising in this media vehicle. Provide some advantages of directory advertising that might help persuade these advertisers.

Answer: Directories offer several advantages for advertisers: (1) Directional –Consumers initiate the search process when they have a need or want.

(2) Price –Inexpensive and provides a return on investment of 1:15; every dollar spent on a directory ad produces $145 in revenue.

(3) Trusted (4) Flexibility –With respect to size, colors, and formats.

(5) Long Life.

Diff: 2 Page Ref: 369 Skill: Synthesis AACSB: Reflective thinking skills Objective: 12-2

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139) The Secret Gallery is a unique gift and home accessories store that recently opened. The owners want to advertise their business and are looking for an advertising medium that will allow them to advertise frequently and at a low cost to women aged 18 to 45. They want to get the audience curious about the unique offerings and get them imagining the beauty they can expect when they visit the store. Based on this information, recommend the appropriate medium for advertising.

Answer: Radio would probably be most appropriate because it is the least expensive of all media, and advertisers can easily build frequency through repetition. Based on the nature of the medium, reminder messages, particularly jingles and other musical forms, are easier to repeat without becoming irritating. It is also a medium that allows the listener to imagine by using words, sound effects, music, and tone of voice to enable listeners to create their own pictures.

Diff: 2 Page Ref: 371-373 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 12-3 140) Ruth was watching public television and noticed that there were commercial messages. She always thought that public television was commercial-free. Is that true? Explain your answer.

Answer: Although many people still consider public television to be commercial-free, in 1984 the FCC liberalized its rules and allowed the public broadcasting system (PBS) stations some leeway in airing commercial messages, which are called program sponsorships. The FCC says these messages should not make a call to action (ask for a purchase) or make price or quality comparisons. Ads are allowed to appear only during the local 2.5-minute program breaks, and each station maintains its own acceptability guidelines.

Diff: 2 Page Ref: 377 Skill: Synthesis AACSB: Reflective thinking skills Objective: 12-3 141) Name and describe one of the three forms of network television advertising.

Answer: The forms of network television advertising are: (1) Sponsorships –Advertiser assumes the total financial responsibility for producing the program and providing the accompanying commercials.

(2) Participations –Advertiser pays for 10, 15, 20, 30, or 60 seconds of commercial time during one or more programs.

(3) Spot announcements –Commercials that appear in the breaks between programs, which local affiliates sell to advertisers who want to show their ads locally. Commercials are sold on a station-by-station basis to local, regional, and national advertisers.

Diff: 2 Page Ref: 380 Skill: Synthesis AACSB: Reflective thinking skills Objective: 12-3

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142) What are the advantages of advertising through movie trailers?

Answer: Movie trailers play to a captive audience with their attention on the screen; the attention level is higher for these ads than for almost any other form of commercials.

Diff: 2 Page Ref: 382 Skill: Synthesis AACSB: Reflective thinking skills Objective: 12-4 Refer to the following passage to answer the questions below.

Haley and Lauren, who recently graduated with MBAs, are opening a new shoe boutique called The Pampered Soul in Hattiesburg, Mississippi, which is classified as a Metropolitan Statistical Area (MSA) with more than 100,000 people. It's also home of The University of Southern Mississippi. Haley and Lauren will offer national brands of shoes that are not available in the department stores in the mall, and their primary target market will be women ages 18 to 35.

They've rented a location on the main street in front of the USM campus. The owners realize that most of their business will come from a five-mile radius and want to limit their advertising to those potential customers. They have a modest budget for advertising, so they want to get as much out of it as they can.

143) Haley and Lauren are thinking about advertising in the local newspaper, the Hattiesburg American, but they don't have a basic understanding of advertising in newspapers. Provide a brief overview of the types of advertising in newspapers, noting which would be most appropriate for them.

Answer: There are three types of advertisements found within the local newspaper: classified, display, and supplements. Classified advertising is usually done by individuals to sell their personal goods as well as by local businesses. The dominant form of newspaper advertising is display advertising, which can be placed anywhere in the paper except the editorial page. Finally, newspaper supplements can carry both national and local advertising and are usually produced by independent publishers that sell their publication to newspapers. Display advertising would be most appropriate for this business.

Diff: 2 Page Ref: 356-357 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 12-1 144) Haley and Lauren recall learning something in their marketing class about an arrangement between manufacturers of national brands and local businesses with respect to advertising. Name and describe this arrangement.

Answer: This arrangement is referred to as co-op advertising. This is an alternative that allows the national advertiser to pay the local rate. It is an arrangement between the advertiser and the retailer whereby the retailer buys the ad and then the manufacturer pays half or a portion depending on the amount of space the manufacturer's brand occupies.

Diff: 2 Page Ref: 356 Skill: Synthesis AACSB: Reflective thinking skills Objective: 12-1 40 .

145) Haley and Lauren want to hold a special event for the USM college women in an attempt to get them into their store. Would advertising in the local newspaper be a good advertising medium to make them aware of the special event? Why or why not?

Answer: No, because one of the disadvantages of newspapers is limited coverage of certain groups. Although newspapers have wide market coverage, certain market groups are not frequent readers. The under-20 age group and college students are not frequent readers of newspapers, but the campus newspaper might be a good option.

Diff: 3 Page Ref: 357-358 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 12-1 146) Haley and Lauren are trying to figure out the reach of their newspaper advertising. They saw that the Hattiesburg American had very different numbers for readership and circulation.

Why is that?

Answer: Circulation refers to how many copies of the newspaper are distributed. Readership refers to how many people actually read it. The readership number is always larger because when a paper is delivered to a home or office, it is often read by more than one person.

Diff: 2 Page Ref: 358 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 12-1 147) Haley and Lauren want to make sure that customers know how to find their business.

Which medium is most appropriate for providing consumers information on where to purchase the shoes they are looking for?

Answer: Directory advertising is best because it is directional advertising telling people where to go to get the product or service they want. Haley and Lauren could purchase an ad in the Yellow Pages, which lists all local and regional businesses that have a telephone number. They could also advertise in a specialty directory, such as the campus directory.

Diff: 2 Page Ref: 362-363 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 12-1 148) Discuss some out-of-home advertising vehicles that might be appropriate for this business.

Answer: The out-of-home vehicles appropriate for this business could include outdoor advertising, such as billboards, an on-premise sign, posters (perhaps around campus), kiosks (if available on campus, for example), and perhaps transit advertising.

Diff: 2 Page Ref: 364-367 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 12-2

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149) Haley and Lauren want to learn more about the audiences of the local broadcast media in Hattiesburg. Name the companies that provide audience data for these media and explain how they collect this information.

Answer: The major audience-rating services for radio is Arbitron. Arbitron estimates the size of the radio audience for more than 250 markets in the United States. It uses a seven-day selfadministered diary that the person returns to Arbitron at the end of the week.

Several independent rating firms periodically sample a portion of the television viewing audience, assess the size and characteristics of the audiences watching specific shows, and then make these data available to advertisers and ad agencies. Currently, A. C. Nielsen dominates this industry and provides the most commonly used measure of national and local television audiences.

Diff: 3 Page Ref: 371, 378-379 Skill: Synthesis AACSB: Reflective thinking skills Objective: 12-3 150) The local television station shared audience data with Haley and Lauren to help them determine whether they should advertise on television. It was rather confusing to them, and they weren't sure what rating and share actually meant. Explain these two concepts.

Answer: A rating compares the number of viewers of a specific television show to the total number of TV households in the market regardless of whether or not those TVs are in use. Share compares the same number of viewers of a specific television show not to the number of TV households, but, rather, to the number of TV sets turned on. So the share figure is always larger than the rating, because the base is smaller.

Diff: 2 Page Ref: 379 Skill: Synthesis AACSB: Reflective thinking skills Objective: 12-3

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Advertising & IMC: Principles and Practice, 9e (Moriarty) Chapter 13 Digital Media 1) The Internet, e-mail, and social networks are all examples of ________ media that connect people in a network of word of mouth communication.

A) traditional B) corporate C) secondary D) interactive E) primary Answer: D Diff: 1 Page Ref: 390 Skill: Concept AACSB: Use of information technology Objective: 13-1 2) New operating systems such as the iPhone, Blackberry and Google's Android, are referred to as ________.

A) platforms B) netbooks C) hardware D) browsers E) networks Answer: A Diff: 2 Page Ref: 390 Skill: Concept AACSB: Use of information technology Objective: 13-1 3) The shift in control of media from publishers to consumers due to the interactive nature of the Internet is a trend known as ________.

A) netcasting B) e-business C) Web 2.0 D) social networking E) next generation messaging Answer: C Diff: 2 Page Ref: 391 Skill: Concept AACSB: Use of information technology Objective: 13-1

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4) What word or phrase is used in traditional media industries to describe the blurring of the differences among television, print, and the Internet media?

A) convergence B) consolidation C) commoditization D) brand experience E) brand submersion Answer: A Diff: 2 Page Ref: 391 Skill: Concept AACSB: Use of information technology Objective: 13-1 5) The linked system of international computer networks is known as the ________.

A) Network B) Intranet C) Cybernet D) Interweb E) Internet Answer: E Diff: 1 Page Ref: 391 Skill: Concept AACSB: Use of information technology Objective: 13-1 6) The information interface that allows people to access the Internet through an easy-to-use graphical format is known as the ________.

A) World Wide Web B) Netscape Navigator C) Internet Explorer D) Interface E) Wired World Web Answer: A Diff: 1 Page Ref: 391 Skill: Concept AACSB: Use of information technology Objective: 13-1

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7) Which of the following is NOT among the reasons the Internet has played an important role in consumers' brand decisions?

A) exclusivity B) information C) choice D) accessibility E) speed Answer: A Diff: 2 Page Ref: 391 Skill: Concept AACSB: Use of information technology Objective: 13-1 8) Which of the following is an important benefit of the Internet to businesses?

A) higher costs for consumers B) easier to keep a business local and protected from international competition C) lower costs of opening a business online D) less competitive market E) easy transition from brick-and-mortar business to online business Answer: C Diff: 2 Page Ref: 392 Skill: Concept AACSB: Use of information technology Objective: 13-1 9) Companies may set up a(n) ________ for internal communication.

A) netcast B) intranet C) website D) extranet E) portal Answer: B Diff: 1 Page Ref: 392 Skill: Concept AACSB: Use of information technology Objective: 13-1

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10) In order to connect employees with key external stakeholders, such as marketing communication agencies, suppliers, and distributors, companies may set up a(n) ________.

A) extranet B) intranet C) bandwidth D) ethernet E) search engine Answer: A Diff: 1 Page Ref: 392 Skill: Concept AACSB: Use of information technology Objective: 13-1 11) A website has an address called a(n) ________, a global address that identifies a specific location in cyberspace on the Web where a document or website lives.

A) portal B) URL (Uniform Resource Locator) C) IP (Internet Provider) address D) keyword E) network Answer: B Diff: 1 Page Ref: 392 Skill: Concept AACSB: Use of information technology Objective: 13-1 12) A(n) ________ is a site that provides doors, or links, to other websites.

A) intranet B) network C) search engine D) podcast E) portal Answer: E Diff: 1 Page Ref: 392 Skill: Concept AACSB: Use of information technology Objective: 13-1

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13) What do most Internet users depend upon to find information and access other sites?

A) netcasts B) intranets C) search engines D) extranets E) chat rooms Answer: C Diff: 2 Page Ref: 392 Skill: Concept AACSB: Use of information technology Objective: 13-1 14) If an Internet user doesn't know a specific website address, the user can type a ________ into a search engine that will seek out all the sites that provide information on that topic.

A) keyword B) password C) link D) hashtag E) cookie Answer: A Diff: 1 Page Ref: 392 Skill: Concept AACSB: Use of information technology Objective: 13-1 15) ________ is a new technology that makes it possible to broadcast TV online.

A) Blogging B) Wikipedia C) bandwidth D) Netcasting E) Podcasting Answer: D Diff: 1 Page Ref: 392 Skill: Concept AACSB: Use of information technology Objective: 13-1

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16) Members of which demographic group spend more time online than any other age group?

A) men age 25 to 54 B) women age 25 to 54 C) teens D) men and women more than 65 years old E) men age 25 to 34 Answer: C Diff: 2 Page Ref: 393 Skill: Concept AACSB: Use of information technology Objective: 13-1 17) The term ________ is used to indicate a high-speed connection to the Internet.

A) broadband B) bandwidth C) netcast D) extranet E) intranet Answer: A Diff: 1 Page Ref: 393 Skill: Concept AACSB: Use of information technology Objective: 13-1 18) ________ refers to the carrying capacity of an individual's computer connection, or how much digital data it can handle.

A) Nano-technology B) Flow-through C) Bandwidth D) Click-through E) Search optimization Answer: C Diff: 1 Page Ref: 393 Skill: Concept AACSB: Use of information technology Objective: 13-1

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19) ________ is a growing practice on the Internet through which individuals who have goods and services to sell are linked with people interested in buying those products.

A) Person-to-person commerce B) Brick-and-mortar business C) Business-to-person marketing D) Business-to-person commerce E) Niche marketing Answer: A Diff: 2 Page Ref: 393 Skill: Concept AACSB: Use of information technology Objective: 13-1 20) ________ are magazines or newsletters only available over the Internet and generally aimed at niche audiences.

A) Podcasts B) Blogs C) Streaming videos D) Zines E) Webpages Answer: D Diff: 1 Page Ref: 395 Skill: Concept AACSB: Use of information technology Objective: 13-1 21) Which of the following is NOT a purpose served by online advertising?

A) provides a brand reminder message to people who are visiting a website B) works like an ad in traditional media and delivers an informational or persuasive message C) provides a clutter-free advertising medium D) entices people to visit the advertiser's site E) provides a way for consumers to interact with businesses Answer: C Diff: 3 Page Ref: 395 Skill: Concept AACSB: Use of information technology Objective: 13-1

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22) ________ refers to all the hardware, software, and computer know-how that provide a platform for businesses that use the Internet to sell products.

A) Digital marketing B) Interactive commerce C) Alternative media D) E-business E) Electronic media Answer: D Diff: 2 Page Ref: 395 Skill: Concept AACSB: Use of information technology Objective: 13-1 23) What is the primary use of the Internet by people of all demographic categories?

A) entertainment B) shopping C) communication D) information searching E) creative pursuits Answer: D Diff: 2 Page Ref: 395 Skill: Concept AACSB: Use of information technology Objective: 13-1 24) The Internet has created large numbers of ________ where customers who are connected by a favorite brand join together to discuss brand problems, solutions, and new uses among themselves.

A) virtual communities B) social rooms C) chat rooms D) fan pages E) mini-blogs Answer: A Diff: 2 Page Ref: 397 Skill: Concept AACSB: Use of information technology Objective: 13-1

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25) ________ sites like MySpace and Facebook build on the interactivity of the Internet.

A) Social networking B) Product C) Video game D) Spyware E) Cookie Answer: A Diff: 2 Page Ref: 397 Skill: Concept AACSB: Use of information technology Objective: 13-1 26) Which is the most important reason social networking websites are valuable to marketers?

A) high number of click-throughs B) affordable banner advertising C) access to any demographic D) effective niche marketing E) ability to engage the power of friendship-based influence Answer: E Diff: 2 Page Ref: 397-398 Skill: Concept AACSB: Use of information technology Objective: 13-1 27) ________ refer to content of a commercial nature that is created or posted on the pages of users in social media that promotes a product, service, or cause.

A) Links B) User-generated ads C) Interactive ads D) Trailers E) Posts Answer: B Diff: 2 Page Ref: 398 Skill: Concept AACSB: Use of information technology Objective: 13-1

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28) Sometimes called a home page, a company's ________ is the online face it presents to the public.

A) website B) Intranet C) Extranet D) portal E) Interface Answer: A Diff: 1 Page Ref: 399 Skill: Concept AACSB: Use of information technology Objective: 13-2 29) ________ refers to a website's ability to encourage visitors to stay and investigate the site rather than bounce to another site.

A) Navigation B) Convergence C) Stickiness D) Compatability E) Popularity Answer: C Diff: 2 Page Ref: 400 Skill: Concept AACSB: Use of information technology Objective: 13-2 30) The Internet practice of ________ is designed to deliver a groundswell of opinion, buzz, or marketplace demand for a product.

A) netcasting B) search marketing C) opinion leadership D) viral marketing E) two-stage adoption Answer: D Diff: 1 Page Ref: 401 Skill: Concept AACSB: Use of information technology Objective: 13-2

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31) Which is the most used form of online advertising, comprising 47 percent of all Internet ad sales?

A) display advertising B) search engine advertising C) e-mail advertising D) classified advertising E) referrals Answer: B Diff: 2 Page Ref: 401 Skill: Concept AACSB: Use of information technology Objective: 13-2 32) Which of the following is NOT a type of Internet advertising?

A) banner ads B) skyscrapers C) pop-ups D) superstitials E) billboards Answer: E Diff: 1 Page Ref: 402 Skill: Concept AACSB: Use of information technology Objective: 13-2 33) ________ are small ads on other Web pages that lure visitors to move to the advertised site.

A) Superstitials B) Blogs C) Minisites D) Banner ads E) Pop-ups Answer: D Diff: 1 Page Ref: 402 Skill: Concept AACSB: Use of information technology Objective: 13-2

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34) The extra-long, skinny ads running down the right or left side of a website are called ________.

A) skyscrapers B) borders C) pop-ups D) minisites E) superstitials Answer: A Diff: 1 Page Ref: 402 Skill: Concept AACSB: Use of information technology Objective: 13-2 35) Which type of Internet ads burst open on the computer screen in front of the opening page of the website?

A) skyscrapers B) pop-ups C) minisites D) superstitials E) banner ads Answer: B Diff: 1 Page Ref: 402 Skill: Concept AACSB: Use of information technology Objective: 13-2 36) Which type of Internet advertising allows advertisers to market their products on other branded websites without sending people away from the site they are visiting?

A) minisites B) off-line advertising C) blogs D) click-throughs E) widgets Answer: A Diff: 2 Page Ref: 402 Skill: Concept AACSB: Use of information technology Objective: 13-2

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37) Which type of Internet advertising is thought of as "the Internet's commercial," designed to work like TV ads?

A) minisites B) superstitials C) pop-ups D) banner ads E) skyscrapers Answer: B Diff: 1 Page Ref: 402 Skill: Concept AACSB: Use of information technology Objective: 13-2 38) ________ are tiny computer programs that allow people to create and insert professionallooking content into their personal websites and onto their TV screens.

A) Widgets B) Superstitials C) Banner ads D) Skyscrapers E) Minisites Answer: A Diff: 1 Page Ref: 402 Skill: Concept AACSB: Use of information technology Objective: 13-2 39) The most common video advertising is in ________ format, which forces viewers to watch a video ad before viewing video clips.

A) widget B) interactive C) scroll-down D) pre-roll E) interstitial Answer: D Diff: 2 Page Ref: 403 Skill: Concept AACSB: Use of information technology Objective: 13-2

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40) A recent study showed the best way to deliver ads is through a(n) ________, which is a feature that offers a group of ads and invites viewers to choose one.

A) pop-up B) pre-roll C) active video D) plug-in E) ad selector Answer: E Diff: 2 Page Ref: 403 Skill: Concept AACSB: Use of information technology Objective: 13-2 41) ________ describes an approach to marketing that uses advertising driven by keywords that consumers use to search for information.

A) Search marketing B) Search placement C) Ad selecting D) Social marketing E) Micro-blogging Answer: A Diff: 1 Page Ref: 403 Skill: Concept AACSB: Use of information technology Objective: 13-2 42) Why is search marketing so effective in reaching consumers?

A) The process minimizes competition.

B) The strategy is rarely used by large companies.

C) Ads are not perceived to be intrusive because consumers initiate the search.

D) Search marketing appeals exclusively to teens.

E) Search marketing simplifies the purchase process.

Answer: C Diff: 2 Page Ref: 403 Skill: Concept AACSB: Communication abilities Objective: 13-2

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43) The practice of maximizing the link between topics and brand-related websites is called ________.

A) database marketing B) netcasting C) search optimization D) data mining E) micro-blogging Answer: C Diff: 1 Page Ref: 404 Skill: Concept AACSB: Use of information technology Objective: 13-2 44) ________ refers to the use of blogs, linked social networks, and online communities to build relationships with customers.

A) Search marketing B) Direct marketing C) Niche marketing D) Social media marketing E) Community marketing Answer: D Diff: 1 Page Ref: 405 Skill: Concept AACSB: Communication abilities Objective: 13-2 45) Which of the following is NOT a reason marketers use new social media tools such as Facebook and Twitter?

A) to lessen competition B) to promote brands C) to engage customers D) to create brand relationships E) to have instantaneous customer connections Answer: A Diff: 2 Page Ref: 405 Skill: Concept AACSB: Communication abilities Objective: 13-2

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46) A(n) ________ is a diary-like Web page created by individuals to talk about things that interest them.

A) intranet B) chat room C) blog D) extranet E) chat net Answer: C Diff: 1 Page Ref: 405 Skill: Concept AACSB: Use of information technology Objective: 13-2 47) Corporate ________ are a way to keep employees and other stakeholders informed, but employees may also be encouraged to have their own.

A) Internets B) blogs C) Extranets D) chat rooms E) Technets Answer: B Diff: 2 Page Ref: 406 Skill: Concept AACSB: Use of information technology Objective: 13-2 48) What is the biggest problem for most bloggers?

A) required time commitment B) lack of privacy C) lack of applicability to social media D) audience composed almost entirely of members of younger generations E) impossibility of measuring blog traffic Answer: A Diff: 2 Page Ref: 406 Skill: Concept AACSB: Use of information technology Objective: 13-2

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49) A blog that plugs a product in return for cash or freebies is referred to as a ________.

A) referral B) paid post C) product placement D) micro-blog E) plug-in Answer: B Diff: 2 Page Ref: 407 Skill: Concept AACSB: Use of information technology Objective: 13-2 50) On the website Twitter, users post tweets no longer than 140 characters, otherwise known as ________.

A) social networks B) chats C) status updates D) paid posts E) micro-blogs Answer: E Diff: 1 Page Ref: 407 Skill: Concept AACSB: Use of information technology Objective: 13-2 51) Groups of people with a special interest can contact one another and exchange their opinions and experiences through ________, which are sites located online, sometimes as part of an organization's website, but sometimes completely independent of any company.

A) intranets B) extranets C) interconnects D) chat rooms E) chat nets Answer: D Diff: 1 Page Ref: 407 Skill: Concept AACSB: Use of information technology Objective: 13-2

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52) Now that MySpace no longer has the largest market share in social networking, why is it still of interest to marketers?

A) It reaches the lower income and ethnic markets.

B) It has an older audience than Facebook does.

C) The website has a clean, professional look.

D) Experts predict the number of MySpace users will surpass Facebook users.

E) It is more often used by the business community.

Answer: A Diff: 2 Page Ref: 408 Skill: Concept AACSB: Use of information technology Objective: 13-2 53) Popular TV programs and commercials can be uploaded by viewers to their YouTube pages to be shared with users as a(n) ________.

A) micro-blog B) flash mob C) viral video D) pre-roll E) ad selector Answer: C Diff: 1 Page Ref: 409 Skill: Concept AACSB: Use of information technology Objective: 13-2 54) What type of advertising appears in conventional media to drive traffic to a website?

A) offline advertising B) banner advertising C) directory advertising D) directional advertising E) on-line advertising Answer: A Diff: 1 Page Ref: 411 Skill: Concept AACSB: Use of information technology Objective: 13-3

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55) ________ are audio shows from the Web that can be downloaded to an MP3 player and that are changing the way consumers listen to the radio.

A) Viral videos B) Spots C) Cookies D) Portals E) Podcasts Answer: E Diff: 1 Page Ref: 411 Skill: Concept AACSB: Use of information technology Objective: 13-3 56) Which of the following is the practice of storing all your files online and using a device simply to access them?

A) cloud computing B) podcasting C) video streaming D) data mining E) netcasting Answer: A Diff: 2 Page Ref: 411 Skill: Concept AACSB: Use of information technology Objective: 13-3 57) Just as search marketing is driven by keywords, many social marketing formats use ________ to categorize posts.

A) SEOs B) tags C) cookies D) links E) tweets Answer: B Diff: 1 Page Ref: 411 Skill: Concept AACSB: Use of information technology Objective: 13-3

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58) ________ are visual representations of the use of keywords in searches and tags in social networking.

A) Links B) Portals C) Avatars D) Tag clouds E) Hashtags Answer: D Diff: 2 Page Ref: 412 Skill: Concept AACSB: Use of information technology Objective: 13-3 59) Which of the following is NOT a barrier facing international marketing and advertising on the Web? A) access limitations B) exchange rates C) legal variations D) language E) overexposure Answer: E Diff: 2 Page Ref: 412 Skill: Concept AACSB: Dynamics of the global economy Objective: 13-3 60) What is the major problem with respect to measuring the Internet audience?

A) illegal to measure the audience due to privacy laws B) unethical to measure the audience without their knowledge C) lack of consumer support in monitoring behavior D) lack of standards to measure Internet effectiveness E) impossibility of measuring the audience Answer: D Diff: 2 Page Ref: 413 Skill: Concept AACSB: Use of information technology Objective: 13-3

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61) The number of times a particular website is visited is known as ________, A) clicks B) hits C) viewers D) unique visitors E) page views Answer: B Diff: 1 Page Ref: 413 Skill: Concept AACSB: Use of information technology Objective: 13-3 62) The primary method currently used to measure consumer response to Internet advertising is ________.

A) hits B) viewers C) click-through D) unique visitors E) total traffic Answer: C Diff: 2 Page Ref: 413 Skill: Concept AACSB: Use of information technology Objective: 13-3 63) Which of the following is NOT a measure used to track a consumer through a website?

A) circulations B) hits C) viewers D) unique visitors E) page views Answer: A Diff: 2 Page Ref: 413 Skill: Concept AACSB: Use of information technology Objective: 13-3

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64) ________ represent the number of people who click on a banner ad.

A) Click-throughs B) Page visits C) Unique visitors D) Hits E) Viewers Answer: A Diff: 2 Page Ref: 413 Skill: Concept AACSB: Use of information technology Objective: 13-3 65) A recent problem in accurately measuring an online audience is ________, which refers to clicks made either to make money for the sponsoring site or to damage a competitor.

A) click through B) search optimization C) stealth advertising D) click fraud E) navigating Answer: D Diff: 1 Page Ref: 413 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 13-3 66) Little electronic bugs that can be placed on your computer by a Web server to track your movements online are known as ________.

A) blogs B) instant messengers C) cookies D) viruses E) micro-sites Answer: C Diff: 1 Page Ref: 413 Skill: Concept AACSB: Use of information technology Objective: 13-3

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67) What do companies post on their websites detailing how or whether the site is collecting data on its visitors and how that data are used?

A) privacy policy B) cookies C) disclaimers D) blogs E) message boards Answer: A Diff: 1 Page Ref: 414 Skill: Concept AACSB: Use of information technology Objective: 13-3 68) Which of the following is NOT an advantage of Internet advertising?

A) relatively inexpensive B) reaches out to people who don't engage in traditional media C) customization and personalization of messages D) sales leads or actual sales for B2B advertisers E) reaches all demographics equally Answer: E Diff: 2 Page Ref: 414 Skill: Concept AACSB: Use of information technology Objective: 13-3 69) Because of ________, an advertiser can input key demographic and behavioral variables, making the consumer feel like the ad is just for him or her.

A) tagging B) tag clouds C) database marketing D) viral marketing E) privacy policies Answer: C Diff: 1 Page Ref: 414 Skill: Concept AACSB: Use of information technology Objective: 13-3

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70) From the perspective of advertisers, what is the most serious drawback of Internet advertising?

A) clutter B) privacy concerns C) international restrictions D) the inability to consistently produce effective ads and to measure their effectiveness E) the bandwidth variation among the audience Answer: D Diff: 2 Page Ref: 414 Skill: Concept AACSB: Use of information technology Objective: 13-3 71) Convergent marketing is an unconventional marketing communication activity that is intended to get buzz on a limited budget by using creative ways to reach people where they live, work, and walk to create a personal connection and a high level of impact.

Answer: FALSE Diff: 2 Page Ref: 391 Skill: Concept Objective: 13-1 72) Because of easy searching, Internet users have access to a wealth of information, not only about brands and companies, but also about trends, future developments, and product reviews.

Answer: TRUE Diff: 1 Page Ref: 391 Skill: Concept AACSB: Use of information technology Objective: 13-1 73) The World Wide Web is a linked system of international computer networks.

Answer: FALSE Diff: 2 Page Ref: 391 Skill: Concept AACSB: Use of information technology Objective: 13-1 74) If an Internet user doesn't have a specific website address, the user can type in a link and a search engine will seek out all sites that provide information on the topic.

Answer: FALSE Diff: 1 Page Ref: 392 Skill: Concept AACSB: Use of information technology Objective: 13-1

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75) A URL is not part of the Internet.

Answer: FALSE Diff: 2 Page Ref: 392 Skill: Concept AACSB: Use of information technology Objective: 13-1 76) Sometimes called a home page, a company's portal is the online face it presents to the public.

Answer: FALSE Diff: 1 Page Ref: 392 Skill: Concept AACSB: Use of information technology Objective: 13-1 77) The phrase streaming video is used to describe new technology that makes it possible to broadcast TV and radio online.

Answer: FALSE Diff: 2 Page Ref: 393 Skill: Concept AACSB: Use of information technology Objective: 13-1 78) Bandwidth refers to the amount of digital information that can be sent through a phone line or fiber optic line.

Answer: TRUE Diff: 2 Page Ref: 393 Skill: Concept AACSB: Use of information technology Objective: 13-1 79) The primary use of the Internet by people of all demographic categories is for information searching.

Answer: TRUE Diff: 2 Page Ref: 395 Skill: Concept AACSB: Use of information technology Objective: 13-1 80) E-business refers to all the hardware, software, and computer know-how that provide a platform for businesses that use the Internet to sell products.

Answer: TRUE Diff: 1 Page Ref: 395 Skill: Concept AACSB: Use of information technology Objective: 13-1

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81) Because online entertainment engages users with escape or relaxation, it's a useful advertising medium for associating brand messages with positive experiences.

Answer: TRUE Diff: 2 Page Ref: 397 Skill: Concept AACSB: Use of information technology Objective: 13-1 82) User-generated ads are the extra-long, skinny ads running down the right or left side of a website.

Answer: FALSE Diff: 1 Page Ref: 398 Skill: Concept AACSB: Use of information technology Objective: 13-1 83) Whether or not a website is effective depends on its stickiness and its ease of navigation.

Answer: TRUE Diff: 2 Page Ref: 400 Skill: Concept AACSB: Use of information technology Objective: 13-2 84) One drawback to using e-mail for advertising is the cost.

Answer: FALSE Diff: 2 Page Ref: 400 Skill: Concept AACSB: Use of information technology Objective: 13-2 85) A practice designed to deliver a groundswell of opinion, buzz, or marketplace demand for a product is called viral marketing.

Answer: TRUE Diff: 2 Page Ref: 401 Skill: Concept AACSB: Use of information technology Objective: 13-2 86) Headline ads are small ads on other Web pages on which people can click to move to the advertised web site.

Answer: FALSE Diff: 1 Page Ref: 402 Skill: Concept AACSB: Use of information technology Objective: 13-2

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87) Superstitials are tiny computer programs that allow people to create and insert professionallooking content into their personal websites and also onto their TV screens.

Answer: FALSE Diff: 1 Page Ref: 402 Skill: Concept AACSB: Use of information technology Objective: 13-2 88) The most common formats of Internet advertising include banner ads, skyscrapers, pop-ups and pop-behinds, minisites, and superstitials.

Answer: TRUE Diff: 2 Page Ref: 402 Skill: Concept AACSB: Use of information technology Objective: 13-2 89) New technologies like plug-ins, Java script, Flash, Silverlight, and media streaming provide active components to online advertising.

Answer: TRUE Diff: 2 Page Ref: 403 Skill: Concept AACSB: Use of information technology Objective: 13-2 90) Search marketing refers to the use of blogs, linked social networks, and online communities to build relationships with customers.

Answer: FALSE Diff: 2 Page Ref: 403 Skill: Concept AACSB: Use of information technology Objective: 13-2 91) Search optimization is the practice of maximizing the link between topics and brand-related websites.

Answer: TRUE Diff: 2 Page Ref: 404 Skill: Concept AACSB: Use of information technology Objective: 13-2 92) A blog is a personal diary-like Web page that is created by an individual.

Answer: TRUE Diff: 1 Page Ref: 405 Skill: Concept AACSB: Use of information technology Objective: 13-2 27 .

93) Corporate blogs are a way of keeping employees and other stakeholders informed.

Answer: TRUE Diff: 2 Page Ref: 406 Skill: Concept AACSB: Use of information technology Objective: 13-2 94) Chat rooms are sites located online, sometimes as part of an organization's website, but sometimes completely independent of any company, where groups of people with a special interest can contact one another and exchange their opinions and experiences.

Answer: TRUE Diff: 1 Page Ref: 407 Skill: Concept AACSB: Use of information technology Objective: 13-2 95) Internet marketers use offline advertising in conventional media to drive traffic to their websites.

Answer: TRUE Diff: 1 Page Ref: 411 Skill: Concept AACSB: Use of information technology Objective: 13-3 96) The Internet is an international medium with virtually no barriers for international marketers and their advertising.

Answer: FALSE Diff: 2 Page Ref: 412 Skill: Concept AACSB: Dynamics of the global economy Objective: 13-3 97) The primary method currently used to measure consumer response to Internet advertising is hits, which are the number of times a particular site is visited.

Answer: FALSE Diff: 2 Page Ref: 413 Skill: Concept AACSB: Use of information technology Objective: 13-3 98) Little electronic bugs that can be placed on your computer by a Web server to track your movements online are called cookies.

Answer: TRUE Diff: 1 Page Ref: 413 Skill: Concept AACSB: Use of information technology Objective: 13-3 28 .

99) The major concern advertisers have about the Internet audience and its measurement is that not enough consumers have access to it.

Answer: FALSE Diff: 2 Page Ref: 414 Skill: Concept AACSB: Use of information technology Objective: 13-3 100) One disadvantage of Internet advertising is that it is relatively expensive, often making it prohibitive for a small company.

Answer: FALSE Diff: 2 Page Ref: 414 Skill: Concept AACSB: Use of information technology Objective: 13-3 101) The online marketer eBay is an example of a "clicks and bricks" store.

Answer: FALSE Diff: 2 Page Ref: 393 Skill: Application AACSB: Analytic skills Objective: 13-1 102) The primary purpose of online advertising is to provide a brand reminder message.

Answer: FALSE Diff: 3 Page Ref: 395 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 13-1 103) Interactivity makes it possible for consumers to move away from being marketing targets and instead initiate contact with a company or other customers and have a conversation about a brand.

Answer: FALSE Diff: 2 Page Ref: 395 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 13-1 104) The Web is an international marketing and advertising medium, but it faces access, legal, linguistic, currency, and technological barriers.

Answer: TRUE Diff: 2 Page Ref: 412 Skill: Synthesis AACSB: Dynamics of the global economy Objective: 13-3 29 .

105) Clutter is not as much of a problem on the Internet as it is in conventional advertising media.

Answer: FALSE Diff: 2 Page Ref: 414 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 13-3 106) Why has the Internet become so important to consumers, as well as the marketers who want to reach them, in such a short time?

Answer: (1) Information-Because of easy searching, Internet users have access to a wealth of information, not only about brands and companies, but also about trends, future developments, and product reviews.

(2) Choice-The Internet offers more choices and consumers can easily do comparative shopping online. That means they can learn more about brands, not only from a brand's website but also from third parties.

(3) Accessibility-The majority of the population has access to computers.

(4) Speed-The Internet has grown to be a medium with unsurpassed speed and widespread coverage.

Diff: 2 Page Ref: 391 Skill: Synthesis AACSB: Reflective thinking skills Objective: 13-1 107) What are the purposes of online marketing communication?

Answer: It provides five primary purposes. First, it serves as a brand reminder message to people who are visiting a website. It also works like an ad in traditional media by delivering an informational or persuasive message. Online marketing communication entices people to visit the advertiser's website by clicking on a banner or button that links to the website. Two additional purposes are consumer searching and consumer interactivity.

Diff: 2 Page Ref: 395 Skill: Synthesis AACSB: Reflective thinking skills Objective: 13-1

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108) Name and describe the six types of common Internet advertising.

Answer: (1) Banner ads –Small ads on other web pages on which people can click to move to the advertised web site.

(2) Skyscrapers –Extra-long, skinny ads running down the right or left side of a website.

(3) Pop-Ups and Pop-Behinds –Burst open on the computer screen either in front of or behind the opening page of the website.

(4) Minisites –Allow advertisers to market their product without sending people away from the site they're visiting.

(5) Superstitials –Thought of as "the Internet's commercial," they are designed to work like TV ads.

(6) Widgets-Tiny computer programs that allow people to create and insert professional-looking content into their personal websites and TV screens.

Diff: 3 Page Ref: 402 Skill: Synthesis AACSB: Reflective thinking skills Objective: 13-2 109) Explain how the Internet audience is measured and what advertisers' concerns are surrounding those measures.

Answer: Measures used to track a consumer through a website include hits (the number of times a particular site is visited), viewers (the number of viewers to a site), unique visitors (the number of different viewers during a particular time period), and page views (the number of times viewers view a page). However, these measures offer no insights as to motivation, nor do they tell us whether a visitor paid any attention to the surrounding ads. The primary method currently used to measure consumer response to Internet advertising is click-through (the number of people who click on a banner ad). This measure is considered insufficient by many Internet advertisers. Having the ability to quantitatively measure audiences is particularly important to media buyers, who need to show what the click-through, page view, or total traffic means to their clients.

Diff: 3 Page Ref: 413 Skill: Synthesis AACSB: Reflective thinking skills Objective: 13-3

31 .

110) Discuss the advantages and disadvantages of Internet advertising.

Answer: Advantages of Internet advertising include: - It is relatively inexpensive; a low-cost alternative to other forms of media.

- The Internet reaches people who aren't engaged in traditional media.

- Internet advertising is relatively easy to track and reach a highly targeted audience.

- Advertisers can customize and personalize their messages over the Internet. Thanks to database marketing, an advertiser can use demographic and behavioral information to make a message targeted toward the individual consumer.

- The Internet can provide excellent sales leads or actual sales.

- The Internet can level the playing field for small and medium-sized companies that compete against larger organizations.

Disadvantages of Internet advertising include: - The most serious drawback is the inability of strategic and creative experts to consistently produce effective ads and to measure their effectiveness.

- Technological limitations can also cause problems for users with low bandwidth or lack of computer expertise.

- Clutter is a problem just like in other media and may even be worse in some cases.

Diff: 3 Page Ref: 414 Skill: Synthesis AACSB: Reflective thinking skills Objective: 13-3 111) Carla knows that the Internet has existed for many years but has become viable for ebusiness in only the last 12 years or so. What information interface was developed in the early 1990s that allowed people to access the Internet through an easy-to-use graphical format?

A) Interconnects B) superstitials C) cookies D) World Wide Web E) search engines Answer: D Diff: 2 Page Ref: 391 Skill: Application AACSB: Use of information technology Objective: 13-1

32 .

112) Target sells products in its retail stores nationwide, but the company also sells a significant percentage of its products through the Target website. Target is an example of a ________ business.

A) re-commerce B) do-it-yourself C) B2B D) clicks and bricks E) person-to-person Answer: D Diff: 2 Page Ref: 393 Skill: Application AACSB: Use of information technology Objective: 13-1 113) Your friend Mitch doesn't really understand all that a business can do through e-business.

Which of the following applications would you NOT include in your explanation of e-business to your friend?

A) sell products B) manage accounting C) distribution D) advertising E) limit customer interaction Answer: E Diff: 2 Page Ref: 395 Skill: Application AACSB: Reflective thinking skills Objective: 13-1 114) You are looking at the New York Times home page, and you click on the link for an article you'd like to read. Before the page of the article appears, a twenty-second animated ad for Hyundai appears. This is an example of a ________.

A) search optimization B) pop-under C) mini-site D) pop-up E) superstitial Answer: E Diff: 2 Page Ref: 403 Skill: Application AACSB: Analytic skills Objective: 13-2

33 .

115) You are looking at an eHow.com video for cleaning stains out of a shirt when you notice a small ad for Febreze odor eliminator on the right-hand side of the page. When you click on the ad, you move from eHow to a Febreze website. You have clicked on a ________.

A) widget B) pop-under C) mini-site D) pop-up E) banner ad Answer: E Diff: 2 Page Ref: 403 Skill: Application AACSB: Analytic skills Objective: 13-2 116) You are looking up hotel rates on the Internet. Alongside your search results, a message reads, "Stay at Holiday Inn and get a 25 percent discount!" This is an example of ________.

A) search marketing B) pop-unders C) content sponsorship D) pop-ups E) superstitials Answer: A Diff: 2 Page Ref: 403 Skill: Application AACSB: Analytic skills Objective: 13-2 117) Sales staffs have found that through ________ they can give their customers more experiences with products and fast-changing technological trends.

A) URLs B) blogs C) Internet support services D) superstitials E) portals Answer: B Diff: 2 Page Ref: 406 Skill: Application AACSB: Use of information technology Objective: 13-2

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118) Politically active Democrats tend to read many of the same blogs and use many of the same social networks. This is an example of ________.

A) convergence B) homophily C) viral marketing D) database marketing E) personalization Answer: B Diff: 3 Page Ref: 406 Skill: Application AACSB: Use of information technology Objective: 13-2 119) Intel, a manufacturer of computer chips, routinely monitors websites that scientific users of computers use to contact one another and exchange opinions and experiences. By monitoring this site, Intel learned of a problem with its Pentium 4 chip that affected computations using numbers out to several places (i.e., eight or more) to the left of the decimal point when calculating computations. Although this was not a problem for most users of the chip, for scientific applications, it was a very significant problem. Intel learned of users' concerns through a ________.

A) blog B) search engine C) B2B forum D) chat room E) customer service site Answer: D Diff: 2 Page Ref: 407 Skill: Application AACSB: Analytic skills Objective: 13-2 120) Runners can compare performances, set up profiles, and meet new friends on Nike's Nike Plus Web site. Nike Plus is an example of a ________.

A) search optimization strategy B) viral marketing site C) social media strategy D) content sponsorship program E) classifieds website Answer: C Diff: 3 Page Ref: 410 Skill: Application AACSB: Analytic skills Objective: 13-2

35 .

121) The growth of the Internet caused many brick-and-mortar firms operating only offline to ________ in response to customer demands and a changing marketplace.

A) become click-only firms B) send out more catalogs C) become click-and-mortar firms D) develop more infomercials E) expand their outside sales forces Answer: C Diff: 2 Page Ref: 393 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 13-1 122) In the days before the Internet, people purchased volumes of reference books, such as atlases and encyclopedias, or visited public libraries to find general information about a broad range of topics. Which of the following websites fulfills a similar purpose today?

A) YouTube B) Facebook C) Wikipedia D) eBay E) Twitter Answer: C Diff: 2 Page Ref: 396 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 13-1 123) In the 1980s and 1990s, teenagers congregated in suburban malls to socialize. Which of the following websites fulfills a similar purpose for teenagers today?

A) YouTube B) Facebook C) Wikipedia D) eBay E) Bing Answer: B Diff: 2 Page Ref: 397 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 13-1

36 .

124) Alicia has seen news stories about all the private data companies are collecting about consumers, especially from their Web searching behavior. She has visited some health-related sites because her mother just learned that she has Type 2 diabetes, and Alicia wanted to be more informed about her mother's disease and the medication she was prescribed. One website she visited was the company that manufactures her mother's medicine. However, Alicia is planning to purchase life insurance within the next year, and she is afraid that the fact that she was researching this disease and medications might negatively affect her premium rates if insurers have access to consumers' Web searching activity. What is the primary reason companies collect consumer information?

A) It lets them compile a database that they can sell to other marketers.

B) It lets them more precisely determine the price to charge to certain consumers.

C) It helps them develop new products based on consumers' information needs.

D) It lets them better target their advertising.

E) It lets them evaluate the effectiveness of their Web sites.

Answer: D Diff: 3 Page Ref: 395 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 13-1 125) What is the benefit to companies of using blogs as marketing communication tools?

A) Blogs provide companies with additional revenue.

B) Blog content is easy to filter, monitor, and control.

C) Lifetime customer value can be evaluated through blogs.

D) Demographic information about customers can be easily tracked.

E) Blogs are an inexpensive yet credible way to reach a fragmented audience.

Answer: E Diff: 3 Page Ref: 406 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 13-2 126) Which of the following is a challenge of advertising through online social networks?

A) Users may resent an intrusive marketing communication message.

B) Existing networks are resistant to advertising.

C) Most existing networks are already controlled by major corporations.

D) Virtual worlds will most likely replace social networks in the near future.

E) Measuring the frequency and volume of social network usage is difficult.

Answer: A Diff: 3 Page Ref: 408 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 13-2

37 .

Refer to the scenario below to answer the questions that follow.

Bob and Larry have taken their fly fishing equipment and accessory business, Flies-R-Us, to the Internet because they wanted to expand their business. However, they don't have much money to use conventional media to drive traffic to their site.

127) What is one of the first things Bob and Larry should do to help build visibility for their website?

A) create a blog about fly fishing B) enter a chat room and start talking about the great assortment, prices, and service FliesRUs.com provides C) register with popular search engines so that their site shows up early on the list provided by the search engine D) develop a fly fishing game on their website so that consumers will spend more time there E) develop minisites to place on popular fly fishing Web pages Answer: C Diff: 3 Page Ref: 403 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 13-2 128) Bob and Larry wanted to develop a groundswell of marketplace demand for their store, so they used e-mail to circulate a message among all of their family, friends, and customers for whom they had e-mail addresses. What type of marketing is this?

A) advertainment B) traditional C) viral D) guerilla E) wired Answer: C Diff: 2 Page Ref: 401 Skill: Application AACSB: Analytic skills Objective: 13-2

38 .

129) Small ads for FliesRUs.com were placed on other Web pages, such as those frequented by fly fishing enthusiasts, by a Web advertising placement company. Consumers could click on the FliesRUs.com's ad, and they would be taken to the Flies-R-Us website. What type of Internet ad does this represent?

A) pop-up B) banner ad C) minisite D) superstitial E) blog Answer: B Diff: 2 Page Ref: 402 Skill: Application AACSB: Analytic skills Objective: 13-2 130) Bob and Larry are getting good at this and have decided they'd like to have an "Internet commercial" on their website, much like a TV ad but not on TV. What type of Internet advertising is this called?

A) pop-up B) move-alongs C) minisite D) banner ad E) superstitial Answer: E Diff: 2 Page Ref: 402 Skill: Application AACSB: Analytic skills Objective: 13-2 131) Explain what is meant by the term re-commerce, and give one example of re-commerce.

Answer: Re-commerce refers to people selling pre-owned items to other people. This type of person-to-person commerce is the foundation of online businesses such as eBay and Craigslist.

Diff: 2 Page Ref: 393 Skill: Synthesis AACSB: Reflective thinking skills Objective: 13-1

39 .

132) Mindy understands what is meant by the term Internet advertising, but she's not really sure how that is different from the term e-business. Explain the concept of e-business and how it is different from Internet advertising.

Answer: E-business refers to all the hardware, software, and computer know-how that provides a platform for businesses that use the Internet to sell products, as well as to manage their accounting, distribution, production, advertising, customer service, personal sales, internal communication to employees, and external communication to outside stakeholders. Internet advertising is merely one component of the concept of e-business.

Diff: 2 Page Ref: 395 Skill: Synthesis AACSB: Use of information technology Objective: 13-1 133) Give two examples of how consumers use the Internet for entertainment.

Answer: Consumers seek a variety of entertainment online, including multi-player games, single-player games, fashion sites, videos, and music.

Diff: 2 Page Ref: 396 Skill: Application AACSB: Use of information technology Objective: 13-1 134) Explain why advertising planners are so interested in media that generate buzz.

Answer: Advertising planners are interested in media that generate buzz because the most important factor in consumer decision making is often the opinions of others, such as family and friends. Positive buzz about a product, therefore, leads to positive consumer decisions for that product.

Diff: 2 Page Ref: 398 Skill: Synthesis AACSB: Reflective thinking skills Objective: 13-1 135) Explain the importance of C2C marketing online.

Answer: C2C marketing stands for consumer-to-consumer marketing; in other words, it is consumers sharing brand information with each other. This word of mouth marketing can boost an online marketing communication campaign, as individuals pass brand messages along to their online friends and acquaintances.

Diff: 3 Page Ref: 399 Skill: Synthesis AACSB: Use of information technology Objective: 13-1

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136) Explain the concept of stickiness and why it is important to the success of a website.

Answer: A website that is "sticky" encourages visitors to stay rather than moving on to another site. A successful website is sticky enough to keep the interest of visitors, pulling them into the content, which should be easy to navigate.

Diff: 2 Page Ref: 400 Skill: Synthesis AACSB: Use of information technology Objective: 13-2 137) When Scentsation introduced a new air freshener, the company sent e-mails to people asking for referrals. People referring five friends to the company's promotional website received free merchandise and were entered into a sweepstakes to win a year's supply of the product.

Explain what this technique is and why marketers use it.

Answer: This is an example of viral marketing, which is a practice designed to deliver a groundswell of opinion or marketplace demand for a product. In this case, e-mail was used to circulate a message.

Diff: 2 Page Ref: 401 Skill: Application AACSB: Use of information technology Objective: 13-2 138) Discuss the trends in spending on print advertising in comparison to spending on Internet advertising.

Answer: In 2010, total U.S. digital advertising spending came close to surpassing total print advertising spending. An increasing percentage of ad budgets is spent on Internet advertising, while a decreasing percentage is spent on print.

Diff: 3 Page Ref: 401 Skill: Synthesis AACSB: Reflective thinking skills Objective: 13-2 139) How can a company increase the click-through response to its banner ads?

Answer: The best way to increase click-through rates is to advertise on a site that is related and relevant to the advertised product. Another way to increase click-through is to make the ads entertaining.

Diff: 2 Page Ref: 402 Skill: Synthesis AACSB: Reflective thinking skills Objective: 13-2

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140) Jim was looking for information on jet skis because he was interested in buying one. He went to the Internet and "googled" the key words jet skis. Several results were returned, and he noticed that there were several "sponsored links" to businesses selling jet skis and accessory items along the top and right side of the search results page. In fact, "Honda Jet Ski Deals" was in blue along the top, and when Jim clicked on it, it took him to Honda Motorcycle's website where he could get more information on Honda jet ski products. What is Google, and how do marketers get these "sponsored links" on the results pages?

Answer: Google, Yahoo!, and Ask.com are Internet search engines that Internet users use to find information. These Internet tools use keywords, such as topics (i.e., jet skis) or company or brand names, to compile a collection of information relating to that word. One search engine role is to provide a site on which advertisers can place ads. The phrase search marketing describes an approach that relies on actions initiated by consumers. Because they are searching for a particular topic, websites and the ads on them are not perceived to be as intrusive as other forms of advertising.

Diff: 3 Page Ref: 403 Skill: Synthesis AACSB: Use of information technology Objective: 13-2 141) Briefly compare and contrast blogs and Twitter.

Answer: Twitter is essentially a miniature version of the concept of a blog with diary and essay postings; it is a micro-blog. A blog entry can be any length, but a tweet can only be 140 characters long.

Diff: 2 Page Ref: 407 Skill: Synthesis AACSB: Use of information technology Objective: 13-2 142) Amie saw the movie The Phantom of the Opera and really liked it. She searched the Internet and found one site that fans use to contact one another and exchange their opinions and experiences. She even rented the silent version of the movie, but the ending was defective. She asked other fans, through the Internet, about the ending and received feedback immediately.

From this site she can also link to several fans' personal online "diaries" about Phantom. She has also found an area on Fanfiction.com where people post their own stories about Phantom, and she uploaded one herself and received favorable reviews. Identify the types of sites Amie is using.

Answer: Groups of people with a special interest can contact one another and exchange their opinions and experiences though chat rooms, which are sites located online, sometimes as part of an organization's website, but sometimes completely independent of any company. Chat rooms are good information sources regarding customer and industry perspectives, as well as competitive information. Another communication form is the blog (short for web log), which is a personal diary-like web page that is created by an individual.

Diff: 3 Page Ref: 407 Skill: Application AACSB: Use of information technology Objective: 13-2 42 .

143) Explain why advertisers are interested in social games and virtual communities, such as FarmVille and Second Life.

Answer: Social games and virtual communities offer advertisers an opportunity to reach targeted markets. Second Life, for example, has its own currency and stores in which avatars can purchase products. FarmVille also involves virtual products.

Diff: 2 Page Ref: 409 Skill: Synthesis AACSB: Reflective thinking skills Objective: 13-2 144) Explain how the introduction of Hulu.com has affected network and cable TV. Answer: Hulu.com is the popular Internet streaming video site that provides video from movies and television programs; viewers can watch online, on gaming consoles, or on their smartphones.

Hulu is taking market share from both network and cable TV. Diff: 2 Page Ref: 411 Skill: Synthesis AACSB: Reflective thinking skills Objective: 13-3 145) Several businesses are using the Internet to expand internationally. Name and describe two barriers the Web faces as an international marketing and advertising medium.

Answer: The Web is an international marketing and advertising medium, but it faces several barriers: (1) Access –Not everyone around the globe has the access or ability to use the Internet via a computer.

(2) Legal –Advertising and sales promotion laws differ from country to country.

(3) Linguistic –Although English is the dominant language on the Internet, some advertisers who want to provide different websites for different countries have trouble ensuring consistency across all sites.

(4) Currency rates –Companies must decide whether to offer prices in their own currency or in the local currency.

(5) Technological –Marketers must also keep in mind the technological differences among the worldwide Internet audiences.

Diff: 2 Page Ref: 412 Skill: Critical Thinking AACSB: Dynamics of the global economy Objective: 13-3

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146) Kevin, the tech support specialist where Lori works, ran a Spybot software program on Lori's computer because she was afraid of viruses. The sweep revealed several cookies. Lori doesn't understand what those are and asked Kevin about them. What should Kevin tell her?

Answer: Tracking information is a common practice on the Internet. Cookies are little electronic bugs that can be placed on your computer by a web server to track your movements online. They don't do anything harmful, like a virus does, but they do report back to their owners what sites you visited and from that can build an online profile about you and your interests. On the good side, cookies let companies store information about your registration, as well as your preferences, so you don't have to retype everything every time you go to that site.

Diff: 2 Page Ref: 413 Skill: Synthesis AACSB: Use of information technology Objective: 13-3 147) Jerome wants to use the Internet to expand his business but is not sure he understands how the Internet audience is measured. Explain variables that are used to measure Internet website audiences and Internet advertising.

Answer: Hits (the number of times a particular site is visited), viewers (the number of viewers to a site), unique visitors (the number of different viewers during a particular time period), and page views (the number of times viewers view a page) are variables used to track a consumer through a web site. The primary method currently used to measure consumer response to Internet advertising is click-through, which is the number of people who click on a banner ad.

Diff: 3 Page Ref: 413 Skill: Synthesis AACSB: Use of information technology Objective: 13-3 Refer to the following passage to answer the questions that follow.

Talbots is a women's clothing store that sells only Talbots brand clothing. The style is fashionable, yet classic. It is relatively high-priced, but not priced at the level of designer clothing. Talbots has expanded its reach through the company's transactional website, and management is interested in getting more traffic to the site as well as using alternative media to reach the target market.

148) Talbots has the ability to collect preference and choice information on visitors to its website, but it is very concerned that its customers understand that the company maintains a responsible position with respect to the use of that data. How would Talbots inform visitors to their website of this fact?

Answer: Companies try to maintain a responsible position by posting their privacy policy on their websites, which details, among other things, how or whether the site is collecting data on its visitors and how that data are used.

Diff: 2 Page Ref: 414 Skill: Critical Thinking AACSB: Ethical understanding and reasoning abilities Objective: 13-3 44 .

149) Talbots wants to increase its Internet advertising. Name and describe three of the six types of Internet advertising available.

Answer: (1) Banner Ads –Small ads on other web pages on which people can click to move to the advertised web site.

(2) Skyscrapers –Extra-long, skinny ads running down the right or left side of a Web site.

(3) Pop-Ups and Pop-Behinds –Burst open on the computer screen either in front of or behind the opening page of the web site.

(4) Minisites –Allow advertisers to market their product without sending people away from the site they're visiting.

(5) Superstitials –Thought of as "the Internet's commercial," designed to work like TV ads.

(6) Widgets –Tiny computer programs that allow people to create and insert professional-looking content into their personal websites and also onto their TV screens.

Diff: 2 Page Ref: 402 Skill: Synthesis AACSB: Use of information technology Objective: 13-2 150) When customers purchase from the Talbots website, they do not have to enter all of their billing and shipping information because it automatically comes up when they enter their Talbots account number. What enables marketers to do this?

Answer: Cookies are little electronic bugs that can be placed on your computer by a web server to track your movements online. One good thing about cookies is that they let companies store information about your registration, as well as your preferences, so you don't have to retype everything every time you go to that site.

Diff: 2 Page Ref: 413 Skill: Application AACSB: Use of information technology Objective: 13-3

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Advertising & IMC: Principles and Practice, 9e (Moriarty) Chapter 14 Media Planning and Buying 1) Which of the following groups of people are NOT involved in the development of an advertiser's media plan?

A) agency's media department B) agency's account and creative teams C) marketer's brand management group D) media buying companies E) advertiser's operations staff Answer: E Diff: 2 Page Ref: 420 Skill: Concept Objective: 14-1 2) Which of the following refers to information such as demographic profiles of current customers, response to previous promotions, product sales and distribution patterns, and the budget of how much can be spent on media?

A) client information B) market research C) competitive advertising D) consumer information E) media information Answer: A Diff: 2 Page Ref: 422 Skill: Concept Objective: 14-1 3) A valuable tool for media planners, ________ is provided by companies such as MRI and is usually organized by product category and cross-tabulated by audience groups and their consumption patterns.

A) client information B) market research C) competitive advertising D) media usage profiles E) media coverage area Answer: B Diff: 2 Page Ref: 422 Skill: Concept Objective: 14-1

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4) Which of the following is a standard research display format that allows multiple variables of related data to be grouped together?

A) CrossTab B) CrossRelate C) Multivariate D) Univariate E) CrossIndex Answer: A Diff: 2 Page Ref: 423 Skill: Concept AACSB: Communication abilities Objective: 14-1 5) Which concept refers to marketers tracking how much competing brands spend on media compared to how much they are spending on their particular brand?

A) share of market B) share of voice C) share of media D) share of spending E) share of category Answer: B Diff: 1 Page Ref: 424 Skill: Concept Objective: 14-1 6) One type of media-related information about markets is the broadcast coverage area for television, which is called a(n) ________ and is referred to by the name of the largest city in the area.

A) metropolitan statistical area (MSA) B) area of influence (AOI) C) designated marketing area (DMA) D) metropolitan marketing area (MMA) E) designated commerce area (DCA) Answer: C Diff: 1 Page Ref: 424 Skill: Concept Objective: 14-1

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7) A designated marketing area (DMA) assignment is based on ________.

A) the population of the surrounding area B) the number of television stations in the area C) the number of broadcast media outlets available D) how many households have cable or satellite television E) which city provides the majority of the households' TV programming Answer: E Diff: 2 Page Ref: 424 Skill: Concept Objective: 14-1 8) Which of the following is a written document that summarizes the objectives and strategies that guide how media dollars will be spent?

A) corporate plan B) marketing plan C) advertising plan D) media plan E) message plan Answer: D Diff: 1 Page Ref: 424 Skill: Concept AACSB: Communication abilities Objective: 14-1 9) When developing a media plan, a planner considers ________, which include exposure to traditional mass media, word of mouth, place-based media, in-store brand exposures, and interactive media.

A) contact points B) gross rating points C) aperture points D) impression points E) rating points Answer: A Diff: 2 Page Ref: 424 Skill: Concept AACSB: Communication abilities Objective: 14-1

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10) ________ media are chosen based on metrics such as GRPs and CPMs, while new media depends more on factors like brand experience, involvement, and personal impact.

A) Independent B) Social C) Measured D) Analog E) Digital Answer: C Diff: 2 Page Ref: 424 Skill: Concept Objective: 14-2 11) What is the first of the four basic steps in media planning?

A) developing a media strategy B) setting media objectives C) analyzing metrics D) identifying the target audience E) purchasing media Answer: D Diff: 2 Page Ref: 425 Skill: Concept Objective: 14-2 12) ________ describe what a company wants to accomplish regarding the delivery of its brand messages and their impact on the target audience.

A) Reach objectives B) Media objectives C) Frequency objectives D) Measured media E) Average frequencies Answer: B Diff: 1 Page Ref: 427 Skill: Concept Objective: 14-2 13) Which concept describes the percent of people exposed to a brand message one or more times within a specified period of time?

A) reach B) frequency C) continuity D) impression E) target Answer: A Diff: 1 Page Ref: 427 Skill: Concept Objective: 14-2 4 .

14) If a company wants to increase the percent of people exposed to its message during its media campaign, then the company is trying to increase its ________.

A) frequency B) target C) reach D) objectives E) aperture Answer: C Diff: 2 Page Ref: 427 Skill: Concept Objective: 14-2 15) Which of the following is typically the place to start when setting objectives for a media plan?

A) frequency B) continuity C) lead time D) distribution E) reach Answer: E Diff: 2 Page Ref: 427 Skill: Concept Objective: 14-2 16) The ________ of a specific media vehicle is the percentage of that vehicle's audience that matches the brand's target market.

A) frequency distribution B) targeted reach C) effective frequency D) targeted frequency E) reach distribution Answer: B Diff: 1 Page Ref: 428 Skill: Concept Objective: 14-2

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17) The number of people in the vehicle's audience who are neither customers nor prospects is called ________.

A) reach distribution B) carryover C) wasted reach D) average frequency E) aperture Answer: C Diff: 1 Page Ref: 428 Skill: Concept AACSB: Communication abilities Objective: 14-2 18) Which concept refers to the repetition of message exposure?

A) reach B) frequency C) continuity D) impression E) carryover Answer: B Diff: 1 Page Ref: 428 Skill: Concept Objective: 14-2 19) Which two methods do media planners use to estimate the frequency of a schedule?

A) pulsing and flighting B) weighted frequency and weighted reach C) average frequency and gross frequency D) average frequency and frequency distribution E) gross frequency and frequency distribution Answer: D Diff: 2 Page Ref: 428-429 Skill: Concept Objective: 14-2

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20) Which of the following statements is false regarding average frequency and/or frequency distribution?

A) Most planners prefer to use average frequency instead of frequency distribution.

B) Average frequency can give the planner a distorted idea of the plan's performance.

C) The frequency distribution method is more revealing than the average frequency method of reporting repetition.

D) The frequency distribution shows the percentage of audience reached at each level of repetition.

E) The range of frequency is often large; some in the target audience can see a brand message once while others may see it 10 times within a given period.

Answer: A Diff: 2 Page Ref: 428-429 Skill: Concept Objective: 14-2 21) What is a general rule of thumb regarding the number of exposures needed for a message to sink in?

A) one to two B) two to three C) three to ten D) four to five E) ten to fifteen Answer: C Diff: 2 Page Ref: 429 Skill: Concept AACSB: Communication abilities Objective: 14-2 22) Which concept refers to adding frequency to reach until reaching a level where people respond?

A) aperture reach B) carryover C) average frequency D) frequency distribution E) effective frequency Answer: E Diff: 1 Page Ref: 429 Skill: Concept Objective: 14-2

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23) Media planners determine the most cost-effective media mix that will reach the target audience and satisfy the media objectives through the ________.

A) marketing strategy B) advertising strategy C) media strategy D) media tactics E) media evaluation Answer: C Diff: 1 Page Ref: 430 Skill: Concept Objective: 14-2 24) A media strategy that involves high ________ would involve creating broad exposure using many media vehicles, while a strategy involving high ________ would be narrower in focus with a more limited list of media vehicles.

A) continuity, aperture B) aperture, continuity C) frequency, reach D) reach, frequency E) distribution, reach Answer: D Diff: 3 Page Ref: 430 Skill: Concept AACSB: Communication abilities Objective: 14-2 25) Most brands use a variety of targeted media vehicles known as a ________.

A) media mix B) media strategy C) heavy-up schedule D) continuous strategy E) flighting strategy Answer: A Diff: 1 Page Ref: 430 Skill: Concept Objective: 14-2

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26) Which of the following is NOT a reason most organizations need a variety of ways to get their messages out to their customers?

A) A media plan would not be able to attain the desired level of reach and frequency if it relied on just one medium.

B) Using a number of media distributes the message more widely because different media tend to have different audience profiles.

C) Some people reject certain media.

D) Different media have different strengths in terms of reach and frequency.

E) It could add exposure in less expensive media and have attractive characteristics that enhance the creative message.

Answer: A Diff: 2 Page Ref: 430 Skill: Concept AACSB: Communication abilities Objective: 14-2 27) What type of schedule is used when proportionately more of the marketing budget is spent in special regions or DMAs? A) continuous schedule B) flighting schedule C) heavy-up schedule D) pulsing schedule E) frequency schedule Answer: C Diff: 2 Page Ref: 431 Skill: Concept Objective: 14-2 28) Which of the following is an index of the relative consumption rate of a particular product category in a particular market?

A) product development index (PDI) B) category development index (CDI) C) brand development index (BDI) D) buying power index (BPI) E) market share index (MSI) Answer: B Diff: 1 Page Ref: 431 Skill: Concept Objective: 14-2

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29) Which of the following is an index which estimates the strength of a brand in various geographical areas?

A) product development index (PDI) B) category development index (CDI) C) brand development index (BDI) D) buying power index (BPI) E) brand share index (BSI) Answer: C Diff: 1 Page Ref: 431 Skill: Concept Objective: 14-2 30) When is it advisable to use newspapers in the media plan?

A) The product has a news element, such as new features or formulation.

B) There is a need to demonstrate the product.

C) The product requires little information.

D) The quality of image is an important factor.

E) There is a need to reach a geographically diverse audience.

Answer: A Diff: 2 Page Ref: 432 Skill: Concept AACSB: Communication abilities Objective: 14-2 31) When is it NOT advisable to use magazines in the media plan?

A) The target market is defined by some special interest.

B) The product needs to be shown accurately and beautifully.

C) A high quality image is important.

D) There is a need to explain how something works.

E) There is a need to demonstrate the product.

Answer: E Diff: 2 Page Ref: 432 Skill: Concept AACSB: Communication abilities Objective: 14-2 32) When is it advisable to use out-of-home media in the media plan?

A) The product needs explanation but doesn't need demonstration.

B) It is important to reach an upscale, well-educated audience.

C) The message benefits from motion, sight, and sound.

D) There is a need for a situational, place-based message.

E) The brand can benefit from being associated with celebrities.

Answer: D Diff: 2 Page Ref: 432 Skill: Concept AACSB: Communication abilities Objective: 14-2 10 .

33) When is NOT advisable to use radio in the media plan?

A) A local business wants to reach a local market.

B) There is a need to demonstrate the product.

C) There is a want to build frequency.

D) The ad is a reminder message.

E) The target audience aligns with certain types of music.

Answer: B Diff: 2 Page Ref: 432 Skill: Concept AACSB: Communication abilities Objective: 14-2 34) When is it advisable to use the Internet in the media plan?

A) The product is not distributed nationally.

B) There is a need for a situational, place-based message.

C) The target audience is difficult to reach with traditional media.

D) The quality of image is not a factor.

E) The plan calls to "heavy up" in certain cities or regions where sales are higher.

Answer: C Diff: 2 Page Ref: 432 Skill: Concept AACSB: Communication abilities Objective: 14-2 35) Prospective customers for a product or service have one or more ideal times and places at which they can be reached with an advertising message. This ideal point is called a(n) ________.

A) aperture B) contact point C) touch point D) impression E) pulse Answer: A Diff: 1 Page Ref: 433 Skill: Concept AACSB: Communication abilities Objective: 14-2

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36) Which media scheduling decision relates to factors such as seasonality, holidays, and days of the week?

A) duration B) continuity C) timing D) carryover E) reach Answer: C Diff: 2 Page Ref: 433 Skill: Concept AACSB: Communication abilities Objective: 14-2 37) What concept refers to the amount of time allowed before the beginning of the sales period to reach people when they are just beginning to think about seasonal buying?

A) continuity B) lead time C) duration D) flow E) just-in-time Answer: B Diff: 1 Page Ref: 433 Skill: Concept Objective: 14-2 38) What concept refers to the production time needed to get the advertisement in to the medium?

A) continuity B) lead time C) duration D) flow E) just-in-time Answer: B Diff: 2 Page Ref: 434 Skill: Concept Objective: 14-2

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39) Which of the following is NOT a media scheduling strategy media planners must consider?

A) timing B) duration of exposure C) continuity of exposure D) cost per thousand E) when to advertise Answer: D Diff: 2 Page Ref: 433-434 Skill: Concept AACSB: Communication abilities Objective: 14-2 40) Other than timing, what are two other important scheduling strategies?

A) duration and continuity B) CPM and CPP C) reach and frequency D) impressions and ratings E) carryover and flighting Answer: A Diff: 2 Page Ref: 434 Skill: Concept Objective: 14-2 41) If an advertising period is too long, ads may suffer from ________, which means the audience gets tired of them and stops paying attention.

A) carryover B) pulsing C) weighting D) wearout E) aperture Answer: D Diff: 1 Page Ref: 434 Skill: Concept Objective: 14-2 42) ________ refers to the way the advertising is spread over the length of a campaign.

A) Continuity B) Lead time C) Duration D) Flow E) Just-in-time Answer: A Diff: 1 Page Ref: 434 Skill: Concept Objective: 14-2

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43) Which schedule spreads the advertising evenly over the campaign?

A) pulsing B) flighting C) continuous D) carryover E) lead-in Answer: C Diff: 1 Page Ref: 434 Skill: Concept Objective: 14-2 44) Which type of schedule is designed to intensify advertising before a buying aperture and then to reduce advertising to lower levels until the aperture opens again?

A) pulsing B) flighting C) continuous D) carryover E) lead-in Answer: A Diff: 1 Page Ref: 434 Skill: Concept Objective: 14-2 45) After the schedule has been worked out in terms of what media run when and for how long, these decisions are ________.

A) written in a report to the client B) given rating points C) plotted on a scatter plot D) plotted on a media flow chart E) plotted on a scree plot Answer: D Diff: 2 Page Ref: 434 Skill: Concept Objective: 14-2 46) Which of the following is characterized by alternating periods of intense advertising activity and periods of no advertising?

A) pulsing B) flighting C) continuous scheduling D) flow scheduling E) lead-in Answer: B Diff: 1 Page Ref: 434 Skill: Concept Objective: 14-2 14 .

47) The period of time during which there is no advertising during a flighting schedule is called a ________.

A) flight B) pulse C) down time D) carryover E) hiatus Answer: E Diff: 2 Page Ref: 434 Skill: Concept Objective: 14-2 48) If a flighting strategy works, there will be a ________, which means that consumers will remember the product across the gap until the next advertising period begins.

A) carryover effect B) hiatus C) lead time effect D) push E) pull Answer: A Diff: 1 Page Ref: 434 Skill: Concept AACSB: Communication abilities Objective: 14-2 49) What decision criterion do media planners use to help decide how much to budget in each DMA or region and for each target audience?

A) image transfer B) average frequency C) effective frequency D) weighting E) optimum frequency Answer: D Diff: 1 Page Ref: 435 Skill: Concept Objective: 14-2

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50) In the case of designated marketing areas (DMAs), weak markets may be given more than their share of media weight in the hopes of strengthening the brands in these markets, a practice known as ________.

A) investment spending B) pull spending C) push spending D) flighting E) weighting Answer: A Diff: 2 Page Ref: 435 Skill: Concept AACSB: Communication abilities Objective: 14-2 51) ________ indicate the weight, or efficiency, of a media plan by estimating the reach and frequency.

A) Targeted costs per thousand (TCPMs) B) Costs per point (CPPs) C) Targeted rating points (TRPs) D) Gross rating points (GRPs) E) Designated marketing areas (DMAs) Answer: D Diff: 1 Page Ref: 435 Skill: Concept AACSB: Communication abilities Objective: 14-2 52) The estimate of ________ adjusts the calculation of an audience to exclude waste coverage so it more accurately reflects the percentage of the target audience watching a program.

A) insertions B) gross rating points (GRPs) C) targeted rating points (TRPs) D) efficient frequency E) targeted reach Answer: C Diff: 2 Page Ref: 436-437 Skill: Concept AACSB: Communication abilities Objective: 14-2

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53) Which calculation of efficiency is an estimate of the cost of getting 1,000 impressions?

A) cost per point B) cost per thousand C) cost per impression D) brand development index E) category development index Answer: B Diff: 1 Page Ref: 438 Skill: Concept AACSB: Communication abilities Objective: 14-2 54) What does CPM stand for?

A) cost per million B) cost per impression C) cost per thousand D) cost per point E) cost per medium Answer: C Diff: 1 Page Ref: 438 Skill: Concept Objective: 14-2 55) To be more precise and determine the efficiency of a potential media buy, planners often look at the ________.

A) targeted cost per thousand (TCPM) B) cost per point (CPP) C) cost per impression (CPI) D) category development index (CDI) E) brand development index (CDI) Answer: A Diff: 1 Page Ref: 438 Skill: Concept AACSB: Communication abilities Objective: 14-2 56) What two figures are needed to calculate CPM? A) cost of an ad and program or issue rating B) cost of an ad and frequency of exposure C) average frequency and estimated target audience reached by media vehicle D) cost of an ad and estimated audience reached by media vehicle E) gross rating points and reach Answer: D Diff: 2 Page Ref: 439 Skill: Concept AACSB: Communication abilities Objective: 14-2 17 .

57) Which is a method of comparing media vehicles by estimating the cost of reaching 1 million households based on a program's rating points?

A) cost per point (CPP) B) cost per thousand (CPM) C) cost per prospect (CPP) D) brand development index (BDI) E) category development index (CDI) Answer: A Diff: 1 Page Ref: 439 Skill: Concept AACSB: Communication abilities Objective: 14-2 58) ________ techniques enable marketers to determine the relative impact of a media mix on product sales by using computer models that calculate the weight of a media schedule and optimize the schedule for the greatest impact.

A) Aperture B) Frequency C) Weighting D) Reach E) Optimization Answer: E Diff: 1 Page Ref: 440 Skill: Concept AACSB: Use of information technology Objective: 14-2 59) Media planners may strive to create ________ in a media plan, which means the various media work together to create coherent brand communication.

A) cross-media integration B) consumer interactivity C) footprints D) media complexities E) multichannel communication Answer: A Diff: 1 Page Ref: 446 Skill: Concept AACSB: Communication abilities Objective: 14-3

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60) Which of the following refers to the way radio reinforces and re-creates in a listener's mind a message that was originally delivered by other media?

A) image transfer B) aperture C) lead-in D) bleed-through E) pre-emption Answer: A Diff: 1 Page Ref: 446 Skill: Concept AACSB: Communication abilities Objective: 14-3 61) Which of the following is the most important function of media buying?

A) providing information to media planners B) matching the media vehicle to the strategic needs of the message C) negotiating cost and making the media buy D) handling all billing and payment E) monitoring the media plan performance Answer: B Diff: 2 Page Ref: 447 Skill: Concept Objective: 14-4 62) Which of the following is a function of a media buyer?

A) design and create ads B) personally create in-depth market research C) find and connect agencies to handle billing and payment D) promote certain types of media E) negotiate cost and make the media buy Answer: E Diff: 2 Page Ref: 447 Skill: Concept Objective: 14-4 63) Which of the following is NOT a function of a media buyer?

A) provide information to media planners B) evaluate media choice after campaign C) negotiate cost and make the media buy D) handle all billing and payment E) design and promote advertising campaigns Answer: E Diff: 2 Page Ref: 447 Skill: Concept AACSB: Communication abilities Objective: 14-4 19 .

64) With the current trend toward using other forms of marketing communication in addition to advertising, buyers often demand additional promotional support; these activities are sometimes called ________.

A) add-ons B) make-goods C) value-added media services D) preferred placements E) incentives Answer: C Diff: 1 Page Ref: 448 Skill: Concept Objective: 14-4 65) Media buyers must bargain for ________, the locations in magazines and other print media that offer readership advantage.

A) consolidated services B) bleed-throughs C) program preemptions D) closings E) preferred positions Answer: E Diff: 1 Page Ref: 448 Skill: Concept AACSB: Communication abilities Objective: 14-4 66) Policies of compensating advertisers for errors, such as missed positions or errors in handling the message presentation, are known as ________.

A) preemptions B) make goods C) up-fronts D) preferred positions E) remuneration Answer: B Diff: 1 Page Ref: 449 Skill: Concept Objective: 14-4

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67) Magazines and newspapers have clearly set production deadlines called ________.

A) closings B) make goods C) lead times D) preemptions E) drop-deads Answer: A Diff: 1 Page Ref: 449 Skill: Concept Objective: 14-4 68) The growth of media buying services as separate companies that specialize in media buying has shifted the way the media industry is organized. This is referred to as ________.

A) consolidating media services B) acquiring media services C) spinning media services D) unbundling media services E) detaching media services Answer: D Diff: 2 Page Ref: 451 Skill: Concept Objective: 14-4 69) Why have several advertising agencies unbundled their media buying function?

A) Agencies were required to unbundle their media buying function by the FTC. B) An agency could become more of an expert in media buying if it was removed from the overall agency structure.

C) This allows media groups to work for clients who may be competitors to some of those handled by the agency.

D) Agencies want to focus on single clients.

E) Agencies could better consolidate it with the media planning function.

Answer: C Diff: 2 Page Ref: 451 Skill: Concept Objective: 14-4 70) Media companies that have brought the planning and buying functions back together offer ________.

A) value-added services B) consolidated services C) make goods D) bundled media services E) lead-in services Answer: B Diff: 1 Page Ref: 451 Skill: Concept Objective: 14-4 21 .

71) Media planners examine client information, market research, competitive advertising expenditures, media kits, media coverage area, and consumer behavior reports before media decision-making begins.

Answer: TRUE Diff: 1 Page Ref: 422-424 Skill: Concept Objective: 14-1 72) The broadcast coverage area for television is called a designated marketing area (DMA) and is referred to by the name of the largest city in the area.

Answer: TRUE Diff: 1 Page Ref: 424 Skill: Concept Objective: 14-1 73) The four basic steps in media planning are targeting, setting media objectives, developing media strategies, and analyzing the metrics of a media plan.

Answer: TRUE Diff: 1 Page Ref: 425 Skill: Concept Objective: 14-2 74) Media objectives refer to the repetition of message exposure.

Answer: FALSE Diff: 1 Page Ref: 427 Skill: Concept Objective: 14-2 75) The two basic media objectives are reach and frequency.

Answer: TRUE Diff: 2 Page Ref: 427 Skill: Concept Objective: 14-2 76) Reach is the percentage of people exposed to a brand message one or more times within a specific period of time.

Answer: TRUE Diff: 1 Page Ref: 427 Skill: Concept Objective: 14-2 77) The number of people in the vehicle's audience who are neither customers nor prospects is called wasted reach.

Answer: TRUE Diff: 1 Page Ref: 428 Skill: Concept Objective: 14-2 22 .

78) In terms of frequency, a general rule of thumb is that it takes more than 10 exposures for a message to sink in.

Answer: FALSE Diff: 2 Page Ref: 429 Skill: Concept Objective: 14-2 79) The idea behind the concept of effective frequency is that you add frequency to reach until you get to the level where people respond.

Answer: TRUE Diff: 2 Page Ref: 429 Skill: Concept Objective: 14-2 80) Developing a media strategy is the fourth and final step in developing a media plan.

Answer: FALSE Diff: 2 Page Ref: 430 Skill: Concept Objective: 14-2 81) One reason that organizations use a variety of ways to get their messages out to consumers is the fact that some people reject certain media.

Answer: TRUE Diff: 2 Page Ref: 430 Skill: Concept Objective: 14-2 82) In most cases, the media plan will identify special regions or cities to be emphasized with a heavy-up schedule, which means proportionately more of the budget is spent in those areas.

Answer: TRUE Diff: 2 Page Ref: 431 Skill: Concept Objective: 14-2 83) It's best to use radio for advertising if you want to reach an upscale, well-educated audience and the product has a news element, such as new features or formulation.

Answer: FALSE Diff: 2 Page Ref: 432 Skill: Concept AACSB: Communication abilities Objective: 14-2

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84) National television is an effective advertising outlet to reach a wide, mass audience.

Answer: TRUE Diff: 2 Page Ref: 432 Skill: Concept AACSB: Communication abilities Objective: 14-2 85) Aperture is the point where a consumer has an opportunity to connect with a brand and respond in some way to a brand message.

Answer: FALSE Diff: 2 Page Ref: 433 Skill: Concept AACSB: Communication abilities Objective: 14-2 86) When considering scheduling strategies, the most important questions are when to advertise, how long, and how often (timing, duration, and continuity).

Answer: TRUE Diff: 2 Page Ref: 433-434 Skill: Concept Objective: 14-2 87) A pulsing strategy is the most severe type of continuity adjustment and is characterized by alternating periods of intense advertising activity and periods of no advertising.

Answer: FALSE Diff: 2 Page Ref: 434 Skill: Concept Objective: 14-2 88) Media planners often use a decision criterion called weighting to help them decide how much to budget.

Answer: TRUE Diff: 1 Page Ref: 435 Skill: Concept Objective: 14-2 89) Gross rating points (GRPs) indicate an approximate measure of the reach and frequency of a media plan, as well as the plan's efficiency.

Answer: TRUE Diff: 2 Page Ref: 435 Skill: Concept Objective: 14-2

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90) The measure of gross rating points (GRPs) doesn't include any waste coverage or audience members outside the target audience.

Answer: FALSE Diff: 2 Page Ref: 436 Skill: Concept Objective: 14-2 91) Cost per thousand (CPM) is a measure used to determine the effectiveness of a media vehicle.

Answer: FALSE Diff: 2 Page Ref: 438 Skill: Concept Objective: 14-2 92) The cost per point (CPP) is calculated by multiplying the cost of the ad by 1,000 and dividing that number by the readers in the target audience.

Answer: FALSE Diff: 2 Page Ref: 439 Skill: Concept Objective: 14-2 93) Media selection has little to do with the brand message.

Answer: FALSE Diff: 2 Page Ref: 445 Skill: Concept AACSB: Communication abilities Objective: 14-3 94) A true global medium does not currently exist.

Answer: TRUE Diff: 2 Page Ref: 446 Skill: Concept AACSB: Communication abilities Objective: 14-3 95) Media buyers should be consulted early in planning, as they are a good source of information on changes in media.

Answer: TRUE Diff: 1 Page Ref: 447 Skill: Concept Objective: 14-4

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96) Media buyers negotiate rates, preferred positions, and extra support offers on behalf of their clients.

Answer: TRUE Diff: 2 Page Ref: 448 Skill: Concept Objective: 14-4 97) Once the media purchases have been made, the media buyer is no longer involved with the advertising campaign.

Answer: FALSE Diff: 2 Page Ref: 449 Skill: Concept Objective: 14-4 98) Program preemptions, missed closings, and/or technical problems caused by the media often lead to the offer of make-goods to the advertiser.

Answer: TRUE Diff: 2 Page Ref: 449 Skill: Concept Objective: 14-4 99) Multichannel deals are a result of media convergence that allow advertisers to purchase media across all platforms with a single deal.

Answer: TRUE Diff: 1 Page Ref: 450 Skill: Concept Objective: 14-4 100) Unbundling media services has allowed media groups to work for clients who may be competitors of those handled by the agency.

Answer: TRUE Diff: 2 Page Ref: 451 Skill: Concept Objective: 14-4 101) Information provided by various media is most useful for media planners because it best reflects the true value of the medium to advertisers.

Answer: FALSE Diff: 2 Page Ref: 424 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 14-1

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102) Average frequency gives the planner the best picture of the plan's performance.

Answer: FALSE Diff: 2 Page Ref: 428 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 14-2 103) The frequency distribution method is more revealing, and thus more valuable, than the average frequency method.

Answer: TRUE Diff: 2 Page Ref: 429 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 14-2 104) The tighter the focus on a target market, the more difficult it is to find appropriate media to deliver a relevant message.

Answer: FALSE Diff: 2 Page Ref: 429 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 14-2 105) Planners typically make heavier advertising allocations in weak sales areas because these are the areas that promise the greatest growth.

Answer: FALSE Diff: 2 Page Ref: 431 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 14-2

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106) Name and describe the information sources media planners use in developing a media plan.

Answer: The major sources of information media planners use include: (1) Client Information –The client is a good source for various types of information, such as targeted markets, previous promotions and their performance, product sales and distribution patterns, brand plans, and, most importantly, the budget.

(2) Market Research –Independently gathered information about markets and product categories, such as that provided by MRI, Scarborough, and Mendelsohn. This information is usually organized by product category and cross-tabulated by audience groups and their consumption patterns.

(3) Competitive Advertising Expenditures –Few advertisers ignore competitors' advertising activity. Media planners make scheduling decisions based on the amount of competitive traffic, and the objective is to find media where the advertiser's voice is not drowned out by competitors' voices. This concept is called share of voice, which measures the percentage of total advertising spending by one brand in a product category relative to the competition, giving media planners an idea of how much their advertising will stand out.

(4) Media Kits –The various media and their respective media vehicles provide media kits, which contain information about the size and makeup of their audiences. Although mediasupplied information is useful, the information is assembled to make the best possible case for advertising in that particular medium. For that reason, outside research sources are also used.

(5) Media Coverage Area –One type of media-related information about markets is the broadcast coverage area. Called a designated marketing area, the coverage area is referred to by the name of the largest city in the area.

(6) Consumer Behavior Reports –The consumer research sources that are used in developing segmentation and targeting strategies are also useful in planning media strategies, and media planners use services such as Claritas PRIZM system, Nielsen's ClusterPlus system, and supermarket scanner data to locate the target audience within media markets.

Diff: 2 Page Ref: 422-424 Skill: Synthesis AACSB: Reflective thinking skills Objective: 14-1 107) Describe the reach objective. Include an explanation of targeted reach and wasted reach.

Answer: The reach objective refers to how many different members of the target audience can be exposed to the message in a particular time frame. A campaign's success is due to its ability to reach as many of the targeted audience as possible within a stated budget and time period. Many planners feel that reach is the most important objective and that is where to start figuring out a media plan.

Most marketers are interested in targeted reach, the percentage of a vehicle's audience that matches the brand's target market, while minimizing wasted reach, which is the number of people in the vehicle's audience who are neither customers nor prospects.

Diff: 2 Page Ref: 427-428 Skill: Synthesis AACSB: Reflective thinking skills Objective: 14-2 108) Compare and contrast continuous, pulsing, and flighting strategies.

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Answer: All three of these are continuity strategies, and continuity refers to the way the advertising is spread over the length of a campaign. More specifically: (1) Continuous Strategy –Spreads the advertising evenly over the campaign.

(2) Pulsing Strategy –Designed to intensify advertising before an open aperture and then to reduce advertising to much lower levels until the aperture opens again. The pulse pattern has peaks and valleys, also called bursts. Pulsed schedules cover most of the year, but still provide periodic intensity.

(3) Flighting Strategy –The most severe type of continuity adjustment, flighting is characterized by alternating periods of intense advertising activity and periods of no advertising (hiatus). This on-and-off schedule allows for a longer campaign without making the advertising schedule too light. The hope in using nonadvertising periods is that consumers will remember the brand and its advertising for some time after the ads have stopped. If the flight strategy works, there will be a carryover effect of past advertising that means consumers will remember the product across the gap until the next advertising period begins. The critical decision involves analyzing the decay level, the rate at which memory of the advertising is forgotten.

Diff: 3 Page Ref: 434 Skill: Synthesis AACSB: Reflective thinking skills Objective: 14-2

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109) Compare and contrast cost per thousand (CPM) and cost per point (CPP).

Answer: The process of measuring the target audience size against the cost of that audience is based on calculations of efficiency –more popularly referred to as cost per thousand (CPM), which is an estimate of the cost to expose 1,000 audience members, and cost per point (CPP), which is a method of comparing media vehicles by relating the cost of the message to the audience rating.

It is best to use CPM analysis to compare vehicles within one medium. It is also important to base it only on the portion of the audience that has the target characteristics, called targeted cost per thousand. To calculate the CPM you need only two figures: the costs of the unit (i.e., time on TV or space in a magazine) and the estimated target audience reached by the program. CPM = (cost of message unit/gross impressions) × 1,000.

Some planners prefer to compare media on the basis of rating points. Planners favor CPP because of its simplicity. The calculation is parallel to CPM with one exception: the denominator is the rating percentage (note: because CPP is not calculated on a per-thousand basis, we do not multiply by 1,000).

Both the CPM and CPP are relative values, so planners do not know whether a value is good or bad unless they have comparable figures for comparable vehicles. Although these efficiency analyses can be conducted across media, planners make such comparisons carefully because each medium has unique strengths. CPM and CPP are more valid when used to compare vehicles within a medium.

Diff: 2 Page Ref: 438-439 Skill: Synthesis AACSB: Reflective thinking skills Objective: 14-2 110) List the six functions of a media buyer.

Answer: The functions of the media buyer are: (1) Provide information to media planners.

(2) Select media vehicles.

(3) Negotiate cost/make media buy.

(4) Monitor the media plan performance.

(5) Evaluate the media choices after the campaign.

(6) Handle all billing and payment.

Diff: 2 Page Ref: 447 Skill: Application AACSB: Analytic skills Objective: 14-4

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111) Christie was gathering the information needed for the media plan for a client. She most likely found the ________ to be a good information source for demographic profiles of current customers, previous promotions, and the budget.

A) client information B) market research C) competitive advertising D) media usage profiles E) media coverage area Answer: A Diff: 2 Page Ref: 422 Skill: Application AACSB: Analytic skills Objective: 14-1 112) One study assessed consumers' regard for specific brands and related that score to the brand's advertising expenditures relative to competitors' expenditures. The study found that all of the top brands in a given product category also represented the largest percentage of total advertising spending in a product category relative to competitors. What was measured in this study?

A) targeted reach B) aperture C) share of voice D) share of market E) wasted reach Answer: C Diff: 2 Page Ref: 424 Skill: Application AACSB: Analytic skills Objective: 14-1 113) As Janice developed a media plan for a client, she gathered ________ as part of her research from Claritas PRIZM system.

A) media usage profiles B) client information C) unduplicated messages D) media coverage E) consumer behavior reports Answer: E Diff: 2 Page Ref: 424 Skill: Application AACSB: Analytic skills Objective: 14-1

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114) Sam is developing a media plan for a shoe company that just went national. What is his first step in developing the media plan?

A) identifying the target audience B) creating a media strategy C) determining the reach and frequency of the plan D) creating media objectives E) determining what media to use Answer: A Diff: 2 Page Ref: 425 Skill: Application AACSB: Analytic skills Objective: 14-2 115) Henry is employed at an advertising agency and was approached by a company that recently became national. The company wanted to advertise exclusively on television. Henry suggested that the company's media plan instead use several media vehicles, known as a(n)________.

A) measured media B) earned media C) media mix D) share of voice E) unbundled media Answer: C Diff: 2 Page Ref: 430 Skill: Application AACSB: Analytic skills Objective: 14-2 116) Jamie is a media planner for an advertising agency. The guiding principle he uses to determine a client's media plan is that advertising is most effective when it reaches the right people at the right time with the right message. What concept is this principle based on?

A) marketing concept B) maximization concept C) touch point concept D) aperture concept E) contact point concept Answer: D Diff: 2 Page Ref: 433 Skill: Application AACSB: Analytic skills Objective: 14-2

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117) The newspaper in Panama City, Florida, The News Herald, charges national advertisers $45.00 per column inch. On Sunday, which is the day most national advertisers would want to advertise, this newspaper has a circulation of 70,000 households. Calculate CPM for one column inch.

A) $0.64 B) $1.12 C) $6.40 D) $11.30 E) $1,800 Answer: A Diff: 2 Page Ref: 439 Skill: Application AACSB: Reflective thinking skills Objective: 14-2 118) The newspaper in Panama City, Florida, The News Herald, charges national advertisers $45.00 per column inch. On Sunday, which is the day most national advertisers would want to advertise, this newspaper has a circulation of 70,000 households. Of these households, 40,000 are in one advertiser's target audience. Calculate the TCPM for one column inch for this advertiser.

A) $0.64 B) $1.12 C) $6.40 D) $11.30 E) $1,800 Answer: A Diff: 3 Page Ref: 439 Skill: Application AACSB: Reflective thinking skills Objective: 14-2 119) On Wednesday nights, one TV hit commanded the highest advertising rates for the network TV season, charging advertisers $658,333 per 30 seconds. During one Wednesday in April, the hit show had almost 25 million viewers. Calculate CPM for this Wednesday in April.

A) $0.04 B) $2.63 C) $26.33 D) $37.97 E) $263.30 Answer: C Diff: 3 Page Ref: 439 Skill: Application AACSB: Reflective thinking skills Objective: 14-2

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120) On Wednesday nights, a hit TV show commanded the highest advertising rates for the network TV season, charging advertisers $658,333 per 30 seconds. This ad cost was based on an average rating of 16.3 for this program during the previous TV season. The hit show reached an audience of almost 25 million viewers during one week in April. Calculate the CPP. A) $26.33 B) $40.39 C) $26,330 D) $40,388 E) not enough information to determine Answer: D Diff: 3 Page Ref: 439 Skill: Application AACSB: Reflective thinking skills Objective: 14-2 121) A television advertisement for life insurance uses the song "Time" by Alan Parson's Project and shows a family sharing tender moments together. The company also uses the same song in its radio ads in the hope that it will reinforce and re-create the message in the listener's mind.

Which concept best describes this situation?

A) transformational advertising B) soft-sell advertising C) hard-sell advertising D) image transfer E) mental imagery Answer: D Diff: 2 Page Ref: 446 Skill: Application AACSB: Analytic skills Objective: 14-3 122) Rachel is creating an international media plan for her client. Which of the following is NOT true concerning global media planning?

A) Global media plans have to piece together worldwide coverage with a variety of tools.

B) The Internet is the only true global medium.

C) Cable TV companies are offering an increasing number of international networks.

D) Satellites are regional, not global, in coverage.

E) Technical limitations, coverage area, and government regulations prevent satellite transmission from becoming universal.

Answer: B Diff: 2 Page Ref: 446 Skill: Application AACSB: Reflective thinking skills Objective: 14-3

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123) Recently a local breaking-news story ran on a television channel instead of a scheduled advertisement. The media buyer compensated by promising the client an equally valuable spot to replace it or reimbursement. What is this policy known as?

A) make goods B) bleed-throughs C) earned media D) lead time E) value-added media service Answer: A Diff: 2 Page Ref: 449 Skill: Application AACSB: Analytic skills Objective: 14-4 124) If a local business wants to advertise extensively in a local market, wants to reach an upscale and well-educated audience, needs room for explanation, and is unconcerned with the quality of the image, what medium would best suit its advertising needs?

A) out-of-home media B) radio C) magazines D) local or spot television E) newspapers Answer: E Diff: 2 Page Ref: 432 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 14-2

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125) 28th Avenue Wine & Spirits decided to start advertising its business, but it does not have a large budget to devote to it. However, the company's sales are seasonal, with the highest sales occurring between Thanksgiving and New Year's. If 28th Avenue Wine & Spirits would like to have a media presence all year round, which continuity schedule would you recommend to make the most of the budget?

A) continuous strategy B) pulsing strategy C) flighting strategy D) heavy-up strategy E) burst strategy Answer: B Diff: 2 Page Ref: 434 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 14-2 Consider the following magazine media schedule as you answer the questions below.

Magazine Readers/Issue Rating* A 50,000 5 B 40,000 4 C 20,000 2 * Target population: 100,000 ** those who did not read either of the other two magazines

Unduplicated** 35,000 20,000 11,000

126) If there were one weekly insertion in all the magazines for a four week period, what would the total insertions be for the plan?

A) 30 B) 24 C) 9 D) 12 E) 36 Answer: D Diff: 2 Page Ref: 435 Skill: Application AACSB: Reflective thinking skills Objective: 14-2

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127) 70% of Magazine A's readers are part of the target market for a certain advertiser. This percentage represents Magazine A's ________ for this advertiser.

A) gross ratings points B) targeted reach C) average frequency D) effective frequency E) average reach Answer: B Diff: 2 Page Ref: 428 Skill: Application AACSB: Analytic skills Objective: 14-2 128) Some members of a certain advertiser's target market subscribe to all three magazines, so they would likely see each ad placed in each magazine. Other members of the audience, however, may not see the ads at all. The media planner for this advertiser has divided the total target audience into five sections and estimated how often members of each section will be exposed to the ad. This is called ________.

A) frequency quintile distribution analysis B) targeted cost per thousand analysis C) reach plus frequency analysis D) average frequency analysis E) effective reach analysis Answer: A Diff: 2 Page Ref: 429 Skill: Application AACSB: Analytic skills Objective: 14-2 129) What are the total gross rating points (GRPs) for this media plan, assuming that each magazine carries a weekly ad insertion for a total of four weeks?

A) 11 B) 22 C) 26.4 D) 44 E) 52.8 Answer: D Diff: 3 Page Ref: 435 Skill: Application AACSB: Reflective thinking skills Objective: 14-2

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130) How many unduplicated readers are there for the three magazines?

A) 22,000 B) 66,000 C) 110,000 D) 150,000 E) 176,000 Answer: B Diff: 2 Page Ref: 435 Skill: Application AACSB: Reflective thinking skills Objective: 14-2 131) Monica is an advertising major and is interning at a major advertising agency. To start out, she will be working with a media planner. What other people will be involved in planning and executing the media function for their clients?

Answer: Traditionally, the advertising agency has been responsible for developing the media plan, which is usually devised jointly by the agency's media department, the account and creative teams, and the marketer's brand management group. Media-buying companies have moved into the planning stage as well.

Diff: 2 Page Ref: 420 Skill: Synthesis AACSB: Reflective thinking skills Objective: 14-1 132) Kyle is a media planner at an advertising agency and has just been assigned to develop a media plan for a new client of the agency. What critical client information will Kyle find useful in developing the media plan?

Answer: The client is a good source for various types of information media planners use in their work, such as targeted markets, previous promotions and their performance, product sales and distribution patterns, brand plans, and, most importantly, the budget. Sales geography is a critical set of information, because even though companies may distribute goods and services in many cities and states, sales are seldom consistent across all areas. Sales differences affect the decision about which markets the advertiser should reach for the campaign and how many dollars are allocated to each geographic region.

Diff: 2 Page Ref: 422 Skill: Synthesis AACSB: Reflective thinking skills Objective: 14-2

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133) Briefly describe why the MRI CrossTab format is useful and what an index of 199 means for the 18 to 34 demographic that drinks Red Bull soft drinks.

Answer: The CrossTab format is a standard research display format that allows multiple variables of related data to be grouped together. An index of 199 means that people who are 18 to 34 are 99 percent more likely to drink Red Bull in the time period studied than the base population studied.

Diff: 3 Page Ref: 423 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 14-1 134) You've heard someone mention the "St. Louis Designated Marketing Area (DMA)."

Explain what this means and why it is useful to media planners.

Answer: One type of media-related information about markets is the broadcast coverage area for television, which is called a designated marketing area (DMA); it is referred to by the name of the largest city in the area. This is a national market analysis system, and every county in the United States has been assigned to a DMA. The assignment is based on where most of the residents receive their television signals, which generally reach a 50- to 60-mile radius. Even though this system is based on TV broadcast signals, it is universally used in local market planning.

Diff: 2 Page Ref: 424 Skill: Synthesis AACSB: Reflective thinking skills Objective: 14-1 135) What is the goal of a media plan?

Answer: The goal of a media plan is to find the most effective and efficient ways to deliver messages to a targeted audience.

Diff: 2 Page Ref: 424 Skill: Synthesis AACSB: Reflective thinking skills Objective: 14-1 136) A client at an advertising agency wants to know what reach means. Explain the concept.

Answer: An important aspect of an advertising campaign is how many different members of the target audience can be exposed to the message in a particular time frame, which is a measure of the campaign's reach. Different or unduplicated audiences are those that have at least one chance of being exposed to a message.

Diff: 2 Page Ref: 427 Skill: Synthesis AACSB: Reflective thinking skills Objective: 14-2

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137) Explain two concepts that are the basis for most media planning and are familiar to everyone who works in advertising.

Answer: Reach and frequency measures are the basis for most media planning and are terms familiar to everyone who works in advertising. Reach is the percentage of a medium's audience that is exposed at least once to the advertiser's message during a specific time frame. The media planner calculates the reach of a media schedule according to research estimates that forecast the unduplicated audience. Although the reach estimate is based on only a single exposure, frequency, the rate of exposure, estimates the number of times the exposure is expected to happen.

Diff: 3 Page Ref: 427-428 Skill: Synthesis AACSB: Reflective thinking skills Objective: 14-2 138) Explain what is meant by the term effective frequency.

Answer: The idea behind effective frequency is that you add frequency to reach until you get to the level where people respond.

Diff: 2 Page Ref: 429 Skill: Synthesis AACSB: Reflective thinking skills Objective: 14-2 139) A client has asked its agency "How much is enough and how much is too much?" when it comes to the number of exposures necessary. What should the agency tell the client?

Answer: In terms of frequency, a general rule of thumb is that it takes three to ten exposures for a message to sink in. However, that varies with the type of product and marketing situation.

Low-frequency strategies are used with well-known brands and simple messages. Highfrequency strategies might be used to build excitement about a new product or an upcoming event. More complex messages also may need more repetition.

Diff: 3 Page Ref: 429 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 11-2 140) One advertising agency's client wanted to use only television commercials, primarily because the client thought it would impress its customers and business colleagues. The advertiser's agency is having a difficult time convincing the client to use a media mix, not just television. Explain why it's better to use a media mix than to rely on just one medium.

Answer: Using a number of media offers several advantages. A media mix distributes the message more widely because different media tend to have different audiences. Some people even reject certain media, and others are more believable to some consumers. Different media also have different strengths in terms of reach and frequency. Finally, a synergistic effect can be achieved between the messages delivered in different media.

Diff: 3 Page Ref: 430 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 14-2 40 .

141) Jon is a media planner for an advertising agency, and he is considering consumption patterns for his client's product and brand. Name and describe two indices Jon will find useful when analyzing consumption patterns for products and brands and explain how they help planners.

Answer: A category development index (CDI) is calculated for various categories, which is an index of the relative consumption rate of a product in a particular market. Similarly, a brand development index (BDI) is an index of the consumption rate of a brand in a particular market.

The CDI tells you where the category is strong and weak, and the BDI tells you where a particular brand is strong and weak. Planners typically don't make heavy allocations in weak sales areas unless strong marketing signals indicate significant growth potential. Conversely, strong sales markets may not receive proportional increases in advertising unless evidence suggests that company sales can go much higher with greater investment.

Diff: 3 Page Ref: 431 Skill: Synthesis AACSB: Reflective thinking skills Objective: 14-2 142) Anthony is in the planning stages for his media campaign. He is considering how he should spread out the advertising over the length of the campaign. What strategies could he could use?

Answer: There are three continuity strategies.

(1) A continuous strategy spreads the advertising evenly over the campaign period.

(2) A pulsing strategy is used to intensify advertising before a buying aperture and then to reduce advertising to lower levels until the aperture reopens.

(3) A flighting strategy is characterized by alternating periods of intense advertising activity and periods of no advertising.

Diff: 2 Page Ref: 434 Skill: Synthesis AACSB: Reflective thinking skills Objective: 14-2 143) A client at an advertising agency is concerned about the mix of different media used in the campaign. The advertiser explains that the media plan will use many different outlets but will create a single, coherent brand message. What concept is the advertiser referring to?

Answer: The advertiser is referencing cross-media integration, which means the various media work together to create coherent brand communication. Planners seek to create a synergistic effect between the messages delivered in different media.

Diff: 2 Page Ref: 446 Skill: Application AACSB: Analytic skills Objective: 14-3

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144) Barbara is a media buyer for an advertising agency, and one of her responsibilities is to monitor her media buys on behalf of clients. She has to be alert for missed positions or errors in handling her client's message presentation and ensure that her client is compensated appropriately when errors occur. How would Barbara likely ask that her client be compensated?

Answer: A policy of compensating for errors is called "making good on the contract" known as make-goods.

Diff: 2 Page Ref: 449 Skill: Application AACSB: Reflective thinking skills Objective: 14-4 145) Several full-service advertising agencies have made their media buying functions available to advertisers who want one agency to purchase their media. What is this called and why is it becoming more common?

Answer: This shift in the way the media industry is organized is referred to as unbundling media services. Being able to aggregate the buying function across many different clients enables media companies to negotiate better rates for their clients. Because these companies control the money, they have become a powerful force in the advertising industry.

Diff: 2 Page Ref: 451 Skill: Synthesis AACSB: Reflective thinking skills Objective: 11-4 Refer to the passage and chart below to answer the questions that follow.

The Detroit Tigers' baseball season is about to kick off, and the owners want to advertise that fact in the Detroit metropolitan area. They will be using television, newspaper, and radio as part of their media mix. Below is one portion of their media plan.

Media Vehicle TV: CSI Newspaper: Detroit News Radio: WJBR

Audience Size 3,000,000 630,000 200,000

Number of messages 5 5 25

Cost $90,000/30-sec $42,000/page $100/30-sec

Rating 17 25 10

146) If the data given is for one week, for a four week period what would the total insertions be for the plan?

Answer: Insertions = CSI 5 X 4 = 20 Detroit News 5 X 4 = 20 WJBR 25 X 4 = 100 20 + 20 + 100 = 140 Diff: 2 Page Ref: 435 Skill: Application AACSB: Reflective thinking skills Objective: 14-2

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147) Calculate the total gross rating points (Total GRPs).

Answer: Total GRPs = (17 × 5) + (25 × 5) + (10 × 25) = 460 Diff: 3 Page Ref: 435 Skill: Application AACSB: Reflective thinking skills Objective: 14-2 148) Calculate the cost per thousand (CPM) for CSI, the Detroit News, and WJBR, respectively.

Answer: CSI CPM = $90,000 × 1,000/3,000,000 = $30.00 Detroit News CPM = ($42,000 × 1,000/630,000) = $66.67 WJBR CPM = ($100 × 1,000/200,000) = $0.50 Diff: 3 Page Ref: 439 Skill: Application AACSB: Reflective thinking skills Objective: 14-2 149) Calculate the cost per point (CPP) for CSI, the Detroit News, and WJBR, respectively.

Answer: CSI CPP = ($90,000/17) = $5,294.11 Detroit News CPP = ($42,000/25) = $1,680 WJBR CPP = ($100/10) = $10.00 Diff: 3 Page Ref: 439 Skill: Application AACSB: Reflective thinking skills Objective: 14-2 150) Explain the concept of the media mix and identify the Tigers' media mix in this case.

Answer: Rarely can a marketer reach the total target audience with just one medium. Most brands use a variety of targeted media vehicles, called a media mix, to reach current and potential customers. The Detroit Tigers used television, newspaper, and radio as the media mix.

The media mix includes the vehicles of CSI, Detroit News, and WJBR. Diff: 2 Page Ref: 430 Skill: Synthesis AACSB: Reflective thinking skills Objective: 14-2

43 .

Advertising & IMC: Principles and Practice, 9e (Moriarty) Chapter 15 Public Relations 1) Which IMC tool helps an organization and its publics relate to each other to the benefit of both?

A) advertising B) personal selling C) publicity D) sales promotion E) public relations Answer: E Diff: 1 Page Ref: 460 Skill: Concept AACSB: Communication abilities Objective: 15-1 2) All the groups of people with which a company or organization interacts such as employees, media, community groups, shareholders, and so forth are known as ________.

A) targets B) publics C) audiences D) shareholders E) contact points Answer: B Diff: 1 Page Ref: 460 Skill: Concept Objective: 15-1 3) Another term for publics is ________, which refers more specifically to people who have a stake, financial or not, in a company or organization.

A) targets B) stakeholders C) audience D) shareholders E) contact points Answer: B Diff: 1 Page Ref: 460 Skill: Concept Objective: 15-1

1 .

4) Which of the following types of organizations does NOT practice public relations?

A) companies B) governments C) nonprofit organizations D) media E) All of the above are types of organizations that practice public relations.

Answer: E Diff: 2 Page Ref: 460 Skill: Concept Objective: 15-1 5) Which of the following is the term that describes what a group of people think?

A) public opinion B) public relations C) publicity D) brainstorm E) reputation Answer: A Diff: 1 Page Ref: 461 Skill: Concept Objective: 15-1 6) Important people who influence the opinions of others are known as ________.

A) gatekeepers B) trend spotters C) opinion leaders D) third-party endorsers E) benchmarks Answer: C Diff: 1 Page Ref: 461 Skill: Concept Objective: 15-1 7) Of the following, what is the greatest asset an organization can have?

A) capital B) public goodwill C) corporate history D) technology E) equity Answer: B Diff: 2 Page Ref: 461 Skill: Concept Objective: 15-1

2 .

8) The trust on which goodwill is based comes from ________.

A) popular products B) offering many products C) what a company says about what it does D) corporate integrity E) what the government says about what a company does Answer: D Diff: 2 Page Ref: 461 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 15-1 9) Which of the following is NOT a core value spelled out in the Public Relations Society of America's Code of Professional Standards for the Practice of Public Relations?

A) truth B) fairness C) competition D) accuracy E) responsibility to the public Answer: C Diff: 2 Page Ref: 461 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 15-1 10) ________ is a perception based on messages delivered by advertising and other marketing communication tools, whereas ________ is based on an organization's actual behavior.

A) Goodwill; integrity B) Integrity; image C) Image; reputation D) Reputation; image E) Equity; reputation Answer: C Diff: 2 Page Ref: 462 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 15-1

3 .

11) Which of the following is an area in which public relations and advertising differ?

A) media use B) level of control over message delivery C) perceived credibility D) A and B E) A, B, and C Answer: E Diff: 4 Page Ref: 462 Skill: Concept AACSB: Communication abilities Objective: 15-1 12) Which of the following statements about public relations is false?

A) Public relations is used to generate goodwill for an organization.

B) Public relations is practiced by a wide range of organizations.

C) On one level, public relations is a tactical function.

D) Publicity and public relations are synonymous terms.

E) A corporation's publics may be external and internal.

Answer: D Diff: 4 Page Ref: 462 Skill: Concept Objective: 15-1 13) Which of the following statements regarding advertising and public relations is true?

A) Public relations and advertising differ in how they use the media, the level of control they have over message delivery, and their perceived credibility.

B) The public tends to trust advertising more than they do the public relations.

C) Public relations strategists have little trouble getting exposure through media.

D) Consumers do not perceive public relations information any differently than they do advertising information.

E) The main goal of public relations is sales.

Answer: A Diff: 2 Page Ref: 462 Skill: Concept AACSB: Communication abilities Objective: 15-1 14) Which aspect of public relations carries no direct media costs?

A) corporate advertising B) crisis management C) publicity D) cause marketing E) marketing public relations (MPR) Answer: C Diff: 2 Page Ref: 462 Skill: Concept Objective: 15-1 4 .

15) The tendency of consumers to trust the media more than they do advertisers is called the ________.

A) implied third-party endorsement factor B) halo effect C) gatekeeping effect D) indirect endorsement effect E) carryover effect Answer: A Diff: 2 Page Ref: 462 Skill: Concept AACSB: Communication abilities Objective: 15-1 16) The area of public relations that focuses on developing media contacts is called ________.

A) internal marketing B) media relations C) public affairs D) cause marketing E) lobbying Answer: B Diff: 1 Page Ref: 463 Skill: Concept Objective: 15-2 17) Programs that communicate information to employees are called ________.

A) media relations B) public affairs C) cause marketing D) employee marketing E) employee relations Answer: E Diff: 1 Page Ref: 463 Skill: Concept Objective: 15-2 18) Communication efforts aimed at informing employees about marketing programs and encouraging their support are known as ________.

A) media relations B) public affairs C) cause marketing D) employee marketing E) internal marketing Answer: E Diff: 1 Page Ref: 463 Skill: Concept Objective: 15-2 5 .

19) All the communication efforts aimed at the financial community are referred to as ________.

A) financial relations B) media relations C) external relations D) financial marketing E) finance public relations (FPR) Answer: A Diff: 1 Page Ref: 463 Skill: Concept Objective: 15-2 20) Corporate communication programs with government and with the public on issues related to government and regulation are called ________.

A) media relations B) external public relations C) cause marketing D) public affairs E) corporate relations Answer: D Diff: 1 Page Ref: 463 Skill: Concept Objective: 15-2 21) Companies that provide information to legislators in order to get their support and vote on a particular bill are using ________.

A) bribery B) lobbying C) corporate relations D) gatekeeping E) cause marketing Answer: B Diff: 1 Page Ref: 463 Skill: Concept Objective: 15-2 22) Customers, labor unions, employees, media, and suppliers are all examples of ________.

A) shareholders B) external relations C) key publics D) internal targets E) public audiences Answer: C Diff: 2 Page Ref: 464 Skill: Concept Objective: 15-2

6 .

23) Communication efforts with consumer or activist groups that seek to influence government policies are known as ________.

A) media relations B) corporate relations C) issue management D) cause marketing E) issue marketing Answer: C Diff: 2 Page Ref: 464 Skill: Concept Objective: 15-2 24) Which of the following is another term for fund-raising?

A) cause marketing B) public service marketing C) strategic philanthropy D) issue management E) social responsibility Answer: C Diff: 2 Page Ref: 464 Skill: Concept Objective: 15-2 25) The public relations areas that focus on an organization's image and reputation are called ________.

A) corporate relations B) reputation management C) image shaping D) crisis management E) media relations Answer: A Diff: 1 Page Ref: 465 Skill: Concept Objective: 15-2 26) Which corporate relations program has the overriding goal of strengthening the trust that stakeholders have in an organization?

A) image management B) crisis management C) media relations D) reputation management E) public affairs Answer: D Diff: 1 Page Ref: 465 Skill: Concept Objective: 15-2 7 .

27) Which type of public relations program anticipates the possibility of a disaster and plans how to deal with bad news and all the affected publics?

A) corporate reputation management B) crisis management C) public affairs D) cause marketing E) issue management Answer: B Diff: 1 Page Ref: 465 Skill: Concept Objective: 15-2 28) Which of the following is NOT part of a crisis management plan?

A) deciding who contacts the various stakeholders who might be affected B) deciding who speaks to the news media C) deciding who sets up an onsite disaster management center D) deciding who covers up events leading to the crisis E) conducting unannounced crisis training Answer: D Diff: 2 Page Ref: 465-466 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 15-2 29) The process of planning and delivering programs that encourage sales and contribute to customer satisfaction by providing communication that addresses the needs and wants of consumers is called ________.

A) marketing public relations (MPR) B) consumer public relations (CPR) C) efficient consumer response (ECR) D) public affairs E) issue management Answer: A Diff: 2 Page Ref: 466 Skill: Concept AACSB: Communication abilities Objective: 15-2

8 .

30) Which of the following types of programs is used to discourage socially harmful behaviors?

A) marketing public relations (MPR) B) consumer public relations (CPR) C) public communication campaigns D) public affairs E) issue management Answer: C Diff: 2 Page Ref: 466 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 15-2 31) Which of the following is NOT a skill required for public relations managers or public affairs specialists as presented in the text?

A) knowledge of how public relations and public affairs support business goals B) global perspective C) the ability to take everyone seriously D) the ability to integrate all communication functions E) an aptitude for information technology Answer: C Diff: 3 Page Ref: 466 Skill: Concept Objective: 15-2 32) What is used to assess the internal and external PR environment that affects the organization's audiences, objectives, competitors, and past results?

A) marketing audit B) SWOT analysis C) communication audit D) PR audit E) benchmarking Answer: C Diff: 2 Page Ref: 468 Skill: Concept Objective: 15-3 33) In an audit, ________ is used to identify baselines from previous audits or audits of other related companies and industries so there is a point of comparison.

A) baselining B) benchmarking C) a gap analysis D) an internal assessment E) base-pointing Answer: B Diff: 1 Page Ref: 468 Skill: Concept Objective: 15-3 9 .

34) A ________ measures the differences in perceptions and attitudes between groups or between the organization and its publics.

A) benchmark B) base point C) gap analysis D) situation analysis E) communication audit Answer: C Diff: 1 Page Ref: 468 Skill: Concept AACSB: Communication abilities Objective: 15-3 35) Which of the following groups is made up of those who are unaware of their connection to an organization regarding some particular problem?

A) active public B) inactive public C) latent public D) aware public E) strategic public Answer: C Diff: 1 Page Ref: 468 Skill: Concept Objective: 15-3 36) Which of the following groups is made up of those who know about their connection to an organization regarding some particular problem but who do not communicate about it?

A) active public B) inactive public C) latent public D) aware public E) strategic public Answer: D Diff: 1 Page Ref: 468 Skill: Concept Objective: 15-3

10 .

37) As in marketing or advertising planning, a public relations plan begins with background research leading to a(n) ________.

A) situation analysis B) objective statement C) strategy D) tactic E) evaluation Answer: A Diff: 2 Page Ref: 468 Skill: Concept Objective: 15-3 38) Which of the following could be an objective of public relations?

A) creating a corporate brand B) moving a brand to a new market or a global market C) providing product or brand information D) positioning or repositioning a company or brand E) all of the above Answer: E Diff: 2 Page Ref: 469 Skill: Concept Objective: 15-3 39) Of the following, which communication effect is most difficult to accomplish?

A) changing people's beliefs B) changing people's attitudes C) changing people's feelings D) changing people's behaviors E) changing people's knowledge Answer: D Diff: 3 Page Ref: 469 Skill: Concept Objective: 15-3 40) The objective of a change-agent program is to ________.

A) create excitement in the workplace B) provide product information C) increase personal affiliation with a brand D) change attitudes that drive behavior E) change harmful behaviors Answer: D Diff: 2 Page Ref: 469 Skill: Concept Objective: 15-3

11 .

41) Which of the following is NOT a marketing communication tool used in public relations?

A) sales promotion B) advertising C) Internet D) direct marketing E) personal sales Answer: E Diff: 2 Page Ref: 470 Skill: Concept Objective: 15-3 42) People working in public relations are often trained as ________, with little background in marketing.

A) brand specialists B) media buyers C) journalists D) psychologists E) advertisers Answer: C Diff: 2 Page Ref: 470 Skill: Concept Objective: 15-3 43) Public relations tools are divided into which two categories?

A) internal and external B) marketing and corporate C) controlled media and uncontrolled media D) controlled message and uncontrolled message E) controlled contact and uncontrolled contact Answer: C Diff: 2 Page Ref: 471 Skill: Concept AACSB: Communication abilities Objective: 15-4 44) ________ include house ads, public service announcements, corporate advertising, in-house publications, and visual presentations.

A) Internal media B) External media C) Controlled media D) Uncontrolled media E) Semicontrolled media Answer: C Diff: 1 Page Ref: 471 Skill: Concept Objective: 15-4 12 .

45) ________ include press releases, press conferences, and media tours.

A) Internal media B) External media C) Controlled media D) Uncontrolled media E) Semicontrolled media Answer: D Diff: 1 Page Ref: 471 Skill: Analytic skills Objective: 15-4 46) New electronic media are categorized as ________ media.

A) controlled B) uncontrolled C) semicontrolled D) regulated E) unregulated Answer: C Diff: 2 Page Ref: 471 Skill: Concept AACSB: Use of information technology Objective: 15-4 47) Which of the following is a public relations tool?

A) house ads B) publicity C) publications D) speakers and photos E) all of the above Answer: E Diff: 2 Page Ref: 471 Skill: Concept Objective: 15-4 48) An ad prepared for use in a company's own publication or programming is known as a(n) ________ ad.

A) house B) corporate C) service D) company E) advocacy Answer: A Diff: 1 Page Ref: 472 Skill: Concept Objective: 15-4

13 .

49) Ads for charitable and civic organizations that run free of charge on television or radio or in print media are known as ________.

A) house ads B) public service announcements C) cause marketing D) advocacy ads E) feature ads Answer: B Diff: 1 Page Ref: 472 Skill: Concept Objective: 15-4 50) In which type of advertising does a company focus on its corporate image or viewpoint rather than selling a particular product?

A) house ads B) public service announcements C) cause marketing D) nonprofit advertising E) corporate advertising Answer: E Diff: 1 Page Ref: 473 Skill: Concept Objective: 15-4 51) A type of advertising that firms use to enhance or maintain their reputation among specific audiences or to establish a level of awareness of the company's name and the nature of its business is called ________.

A) corporate identity advertising B) advocacy advertising C) cause marketing D) house advertising E) controlled advertising Answer: A Diff: 1 Page Ref: 473 Skill: Concept Objective: 15-4 52) Point-of-view messages are called ________.

A) corporate identity advertising B) advocacy advertising C) image advertising D) house advertising E) cause marketing Answer: B Diff: 1 Page Ref: 474 Skill: Concept Objective: 15-4 14 .

53) Which of the following is NOT a way to generate publicity?

A) news releases B) press conferences C) media tours D) personal contact with members of the media E) internal marketing Answer: E Diff: 2 Page Ref: 474 Skill: Concept Objective: 15-4 54) What is the primary medium used to deliver public relations messages to the various external media?

A) house ads B) advocacy ads C) corporate identity ads D) news releases E) public service announcements Answer: D Diff: 1 Page Ref: 474 Skill: Concept Objective: 15-4 55) Which category of public relations tools includes news releases?

A) controlled B) uncontrolled C) semicontrolled D) advocacy E) image Answer: B Diff: 2 Page Ref: 474 Skill: Concept AACSB: Communication abilities Objective: 15-4 56) The decision to use any part of a news release at all is based on an editor's judgment of its news value, and this is based on the information's ________.

A) timeliness B) proximity C) impact D) human interest E) all of the above Answer: E Diff: 2 Page Ref: 474 Skill: Concept Objective: 15-4 15 .

57) ________ contain video footage for a television newscast.

A) Video news releases (VNRs) B) Video public relations (VPRs) C) Live news releases (LNRs) D) Public Service Announcements (PSAs) E) Documercials Answer: A Diff: 1 Page Ref: 476 Skill: Concept Objective: 15-4 58) What is used to sell editors on ideas for feature stories, which are human-interest stories rather than hard news?

A) personal selling B) release statement C) pitch letter D) feature summary E) media kit Answer: C Diff: 2 Page Ref: 476 Skill: Concept Objective: 15-4 59) A ________ is a single event at which a company spokesperson makes a statement to media representatives.

A) media tour B) press conference C) sponsored event D) speakers' forum E) town hall forum Answer: B Diff: 1 Page Ref: 476 Skill: Concept AACSB: Communication abilities Objective: 15-4 60) What do companies provide to the media that contains all the important background information, either before members of the press arrive or when they arrive at a press conference?

A) media kit B) collateral material C) video news release (VNR) D) pitch letter E) feature story Answer: A Diff: 1 Page Ref: 476 Skill: Concept Objective: 15-4 16 .

61) Using which type of publicity does a traveling spokesperson make announcements and speeches, hold press conferences to explain a promotional effort, and offer interviews?

A) town hall forum B) speakers' bureau C) displays and exhibits D) controlled media event E) media tour Answer: E Diff: 1 Page Ref: 476 Skill: Concept Objective: 15-4 62) Which of the following is good advice for writing an e-mail pitch letter?

A) Be sure to list all recipients in the "To:" line.

B) Include attachments whenever possible to ensure the media receives complete information.

C) Always follow up on an e-mail pitch by asking, "Did you get it?"

D) Personalize the letter.

E) Reveal the who, what, and why of the story after the first paragraph of the letter.

Answer: D Diff: 2 Page Ref: 476 Skill: Concept AACSB: Communication abilities Objective: 15-4 63) What type of publication is required by the Securities and Exchange Commission (SEC) from each publicly held company?

A) collateral material B) annual report C) media kit D) pitch letter E) controlled message Answer: B Diff: 2 Page Ref: 477 Skill: Concept Objective: 15-4 64) Material that is published to support a company's marketing public relations efforts is known as ________.

A) a feature story B) a media kit C) collateral material D) supplemental material E) an annual report Answer: C Diff: 1 Page Ref: 477 Skill: Concept Objective: 15-4 17 .

65) A cadre of articulate people in a company who will talk about topics at the public's request is known as a ________.

A) town hall forum B) public service group C) pitch group D) speakers' bureau E) collateral group Answer: D Diff: 1 Page Ref: 477 Skill: Concept Objective: 15-4 66) Which of the following is used to facilitate internal marketing and provide an opportunity for management to make a presentation on some major project, initiative, or issue and invite employees to discuss it?

A) town hall forum B) press conference C) trade show D) media tour E) pitch group Answer: A Diff: 2 Page Ref: 479 Skill: Concept Objective: 15-4 67) Which type of network connects people within an organization?

A) Internet B) intranet C) extranet D) social network E) internal Web Answer: B Diff: 1 Page Ref: 479 Skill: Concept AACSB: Use of information technology Objective: 15-4

18 .

68) Which type of network connects people in one business with its business partners?

A) Internet B) intranet C) extranet D) social network E) internal Web Answer: C Diff: 1 Page Ref: 479 Skill: Concept AACSB: Use of information technology Objective: 15-4 69) Which of the following is false regarding online communication?

A) Corporate websites have become an important part of corporate communication.

B) The Internet presents at least as many challenges to public relations professionals as it does opportunities.

C) The Internet makes it possible to present the company's image and story without going through the editing of a gatekeeper.

D) The World Wide Web does not allow managed communication directly between organizations and audiences without the gatekeeping function of other mass media.

E) Gossip and rumors can spread around the world within hours.

Answer: D Diff: 2 Page Ref: 479 Skill: Concept AACSB: Use of information technology Objective: 15-4 70) Public relations practitioners track the impact of a campaign in terms of ________.

A) reach and frequency B) process and outcome C) sales and inquiries D) impressions and sales E) input and output Answer: B Diff: 2 Page Ref: 482 Skill: Concept Objective: 15-5 71) Public relations is primarily used to generate sales.

Answer: FALSE Diff: 2 Page Ref: 460 Skill: Concept Objective: 15-1

19 .

72) Opinion leaders are important targets for public relations efforts because these people influence the opinions of others.

Answer: TRUE Diff: 1 Page Ref: 461 Skill: Concept Objective: 15-1 73) Reputation is a perception based on messages delivered by the advertising and other marketing communication tools, and image is based on an organization's actual behavior.

Answer: FALSE Diff: 2 Page Ref: 462 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 15-1 74) Reputation is earned based on what you say you do, not necessarily what you do.

Answer: FALSE Diff: 2 Page Ref: 462 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 15-1 75) The area of public relations that focuses on developing media contacts (i.e., knowing who in the media might be interested in the organization's story) is called external relations.

Answer: FALSE Diff: 2 Page Ref: 462 Skill: Concept Objective: 15-1 76) The "no-conflict-of-interest endorsement" factor reflects the tendency of the public to trust the media more than they do advertisers.

Answer: FALSE Diff: 2 Page Ref: 463 Skill: Concept Objective: 15-1 77) The key publics addressed by relationship programs in public relations are media, employees, the financial community, government, and the general public.

Answer: TRUE Diff: 2 Page Ref: 463 Skill: Concept Objective: 15-2

20 .

78) Corporate communication programs with government and with the public on issues related to government and regulation are called public affairs.

Answer: TRUE Diff: 1 Page Ref: 463 Skill: Concept AACSB: Communication abilities Objective: 15-2 79) Companies can associate themselves with a good cause, providing assistance as well as financial support, through the practice of public service marketing.

Answer: FALSE Diff: 2 Page Ref: 464 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 15-2 80) The key to crisis management is to anticipate the possibility of a disaster and plan how to deal with the bad news and all the affected publics.

Answer: TRUE Diff: 2 Page Ref: 465 Skill: Concept Objective: 15-2 81) An effective crisis plan should outline who contacts the various stakeholders who might be affected, who speaks to the media, and who sets up and runs an onsite disaster management center.

Answer: TRUE Diff: 2 Page Ref: 465-466 Skill: Concept Objective: 15-2 82) Public communication campaigns can be used to discourage behavior.

Answer: TRUE Diff: 2 Page Ref: 466 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 15-2 83) A public relations audit assesses the internal and external public relations environment that affects the organization's audiences, objectives, competitors, and past results.

Answer: TRUE Diff: 2 Page Ref: 468 Skill: Concept Objective: 15-3

21 .

84) Active publics are composed of people who are aware of their connection to an organization regarding some particular problem and who communicate and organize to do something about the issue or situation.

Answer: TRUE Diff: 2 Page Ref: 468 Skill: Concept Objective: 15-3 85) A gap analysis is used to identify baselines from previous audits or audits of other related companies and industries so there is a point of comparison.

Answer: FALSE Diff: 2 Page Ref: 468 Skill: Concept Objective: 15-3 86) A SWOT analysis reflects a general understanding of the difficulty of changing people's attitudes about issues relevant to the company.

Answer: TRUE Diff: 2 Page Ref: 468 Skill: Concept Objective: 15-3 87) Public relations objectives are designed to make changes in the public's knowledge, attitudes, and behaviors related to a company.

Answer: TRUE Diff: 2 Page Ref: 469 Skill: Concept Objective: 15-3 88) In most companies, advertising and public relations are integrated, coordinated functions.

Answer: FALSE Diff: 2 Page Ref: 470 Skill: Concept Objective: 15-3 89) The public relations practitioner has many tools, which can be divided into two categories: planned and unplanned.

Answer: FALSE Diff: 2 Page Ref: 471 Skill: Concept Objective: 15-4

22 .

90) An ad prepared for use in a company's own publication or programming is known as a corporate ad.

Answer: FALSE Diff: 1 Page Ref: 472 Skill: Concept Objective: 15-4 91) Public service announcements run free of charge on television or radio or in print media.

Answer: TRUE Diff: 2 Page Ref: 472 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 15-4 92) Advocacy advertising refers to point-of-view messages used by companies.

Answer: TRUE Diff: 1 Page Ref: 474 Skill: Concept Objective: 15-4 93) As long as a press release or a feature story is well-written and timely, public relations specialists can be confident that the media will use it.

Answer: FALSE Diff: 2 Page Ref: 474 Skill: Concept Objective: 15-4 94) News releases must be written the same for each medium to maintain consistency.

Answer: FALSE Diff: 2 Page Ref: 474 Skill: Concept AACSB: Communication abilities Objective: 15-4 95) News releases today are typically distributed electronically through satellite and Web-based networks.

Answer: TRUE Diff: 2 Page Ref: 475 Skill: Concept AACSB: Use of information technology Objective: 15-4

23 .

96) A press conference is useful because a company can control who is present as well as the questions that will be asked.

Answer: FALSE Diff: 2 Page Ref: 476 Skill: Concept AACSB: Communication abilities Objective: 15-4 97) A feature story is a human interest story rather than a hard news story.

Answer: TRUE Diff: 1 Page Ref: 476 Skill: Concept Objective: 15-4 98) The Federal Trade Commission (FTC) requires that each publicly held company publish an annual report.

Answer: FALSE Diff: 3 Page Ref: 477 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 15-4 99) To facilitate external marketing with a local community, town hall forums are sometimes used.

Answer: FALSE Diff: 2 Page Ref: 478 Skill: Concept Objective: 15-4 100) Public relations practitioners track the impact of a campaign in terms of reach and frequency.

Answer: FALSE Diff: 4 Page Ref: 482 Skill: Concept Objective: 15-5 101) Ultimately, the difference between advertising and public relations is that advertising takes a longer, broader view of the importance of image and reputation.

Answer: FALSE Diff: 2 Page Ref: 462 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 15-1

24 .

102) Relying on public relations means never having to pay for media exposure.

Answer: FALSE Diff: 2 Page Ref: 462 Skill: Application AACSB: Reflective thinking skills Objective: 15-1 103) The key to effective crisis management is to put the blame on the responsible party as soon as possible.

Answer: FALSE Diff: 2 Page Ref: 465-466 Skill: Application AACSB: Ethical understanding and reasoning abilities Objective: 15-2 104) Although public relations can enhance a company's credibility, it has no role in supporting IMC efforts that focus on a product's sales.

Answer: FALSE Diff: 2 Page Ref: 466 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 15-2 105) A communication audit must be conducted before all major public relations efforts.

Answer: FALSE Diff: 2 Page Ref: 468 Skill: Application AACSB: Reflective thinking skills Objective: 15-3

25 .

106) Compare and contrast public relations and advertising.

Answer: The goals of public relations specialists include communicating with various stakeholders, managing the organization's image and reputation, and creating positive public attitudes and goodwill toward the organization. Ultimately, the difference between advertising and public relations is that public relations takes a longer, broader view of the importance of image and reputation as a corporate competitive asset and addresses a greater number of target audiences. Public relations and advertising also differ in how they use the media, the level of control they have over message delivery, and their perceived credibility. Public relations people seek to persuade media gatekeepers to carry stories about their company. This aspect of public relations is called publicity and carries no direct media costs. The public relations strategist is at the mercy of the media gatekeeper as there is no guarantee that all or even part of a story will appear. There is also the risk that the story may be rewritten or reorganized by an editor so that it no longer means what the strategist intended. In contrast, advertising runs exactly as the client who paid for it has approved, and it will run as scheduled. The public tends to trust the media more than they do advertisers. This consumer tendency is called the implied third-party endorsement factor.

Diff: 3 Page Ref: 462 Skill: Synthesis AACSB: Reflective thinking skills Objective: 15-1 107) Explain four key publics addressed by relationship programs in public relations.

Answer: The key publics addressed by relationship programs in public relations are: (1) Media –Media relations focus on developing media contacts.

(2) Employees –Employee relations communicate information to employees. A related program is called internal marketing, which is communication efforts aimed at informing employees about marketing programs and encouraging their support.

(3) Financial publics –Financial relations are communication efforts aimed at the financial community, such as press releases sent to business publications, meetings with investors and analysts, and the annual report.

(4) General public and government –Public affairs are corporate communication programs with government and with the public on issues related to government and regulation. This area also includes lobbying, through which the company provides information to legislators in order to get their support and vote on a particular bill. It also includes issue management, which includes communication efforts with consumer or activist groups who seek to influence government policies.

Diff: 3 Page Ref: 463-464 Skill: Synthesis AACSB: Reflective thinking skills Objective: 15-2

26 .

108) Name and describe the two categories into which public relations tools can be divided. Give an example of each.

Answer: Public relations tools can be divided into two categories: controlled media and uncontrolled media. Controlled media includes house ads, public service announcements, corporate advertising, in-house publications, and visual presentations. The sponsoring organizations pay for these media. In turn, the sponsor maintains total control over how and when the message is delivered. Uncontrolled media includes press releases, press conferences, and media tours. The most recent new media are electronic, and they can be categorized as semicontrolled.

Diff: 2 Page Ref: 471 Skill: Synthesis AACSB: Reflective thinking skills Objective: 15-4 109) Discuss how advertising can be used as a public relations tool.

Answer: Public relations programs sometimes employ advertising as a way to create corporate visibility or increase goodwill with a company's various stakeholder audiences. The primary uses of advertising are house ads, public service announcements, and corporate advertising.

(1) House Ads –An ad for use in the company's own publication or programming.

(2) Public Service Announcement –An ad for a charitable or civic organization that runs free of charge on television or radio or in print media. These ads are prepared just like other ads; in most instances ad agencies donate their expertise and media donate time and space to run the ads.

(3) Corporate Advertising –A company focuses on its corporate image or viewpoint. There is less emphasis on selling a particular product unless it is tied in to a good cause. Corporate identity advertising is another type of advertising that firms use to enhance or maintain their reputation among specific audiences or to establish a level of awareness of the company's name and the nature of its business. Sometimes companies deliver point-of-view messages called advocacy advertising.

Diff: 3 Page Ref: 472-473 Skill: Synthesis AACSB: Reflective thinking skills Objective: 15-4

27 .

110) Name and describe the various forms of publicity used in public relations.

Answer: The major forms of publicity include: (1) News Releases –The primary medium used to deliver public relations messages to the various external media. Although the company distributing the news release controls its original form and content, the media decide what to present and how to present it, so this form of publicity is uncontrolled by the originating company. The decision to use any part of a news release at all is based on an editor's judgment of its news value, which is based on such things as timeliness, proximity, impact, or human interest. News releases must be written differently for each medium, accommodating space and time limitations. Video news releases (VNRs) contain video footage for a television newscast.

(2) Pitch Letters –Ideas for feature stores, which are human-interest stories rather than hard news announcement that have to be "sold" to editors, are conveyed to journalists through pitch letters.

These letters outline the subject in an engaging way to sell a story idea.

(3) Press Conference –An event at which a company spokesperson makes a statement to media representatives; it is one of the riskiest public relations activities because the media may not see the company's announcement as being real news. There's no guarantee that the press will show up or that they will ask the right questions. They might also ask questions the company cannot or does not want to answer. To anticipate some of these problems, companies may issue a media kit, usually a folder that provides all the important background information to members of the press either before or when they arrive at the press conference. The risk, however, is that by providing this information, the press conference itself becomes unnecessary.

(4) Media Tours –A press conference on wheels. The traveling spokesperson makes announcements and speeches, holds press conferences to explain a promotional effort, and offers interviews.

Diff: 3 Page Ref: 474--476 Skill: Synthesis AACSB: Reflective thinking skills Objective: 15-4 111) Marty is an employee of Chevron/Texaco oil company. In terms of public relations, what term below best describes him?

A) brand advocate B) influencer C) decision-maker D) stakeholder E) opinion leader Answer: D Diff: 2 Page Ref: 460 Skill: Application AACSB: Analytic skills Objective: 15-1

28 .

112) Ralph Nader has been an outspoken consumer activist for many years, and several organizations target him and his organizations to influence public opinion. In terms of public relations, Mr. Nader is considered a(n) ________.

A) opinion leader B) advocacy advertiser C) gatekeeper D) third-party endorser E) philanthropist Answer: A Diff: 2 Page Ref: 461 Skill: Application AACSB: Analytic skills Objective: 15-1 113) Akou works behind the scenes at Chicago's most popular radio talk show, scheduling newsworthy guests to appear on air. In this role, Akou is a(n) ________.

A) opinion leader B) advocacy advertiser C) gatekeeper D) third-party endorser E) philanthropist Answer: C Diff: 2 Page Ref: 462 Skill: Application AACSB: Analytic skills Objective: 15-1 114) The Atlanta Journal-Constitution received a press release announcing a new Apple Store opening in the area. Soon after, the newspaper ran an article on the store's grand opening, with a photo of the long lines of eager customers waiting for the store to open on its first day. In this scenario, the Atlanta Journal Constitution functioned as a(n) ________.

A) opinion leader B) advocacy advertiser C) publicist D) implied third-party endorser E) philanthropist Answer: D Diff: 2 Page Ref: 462 Skill: Application AACSB: Analytic skills Objective: 15-1

29 .

115) A manufacturer of toilet tissue sent its brand mascot to help refurbish restrooms at fairgrounds across the country. As part of this project, each restroom was to provide fairgoers with a clean oasis featuring aromatherapy, soothing music, constant maintenance, and premium toilet tissue. Newspaper articles about the company's role in making restrooms inviting are an example of ________.

A) corporate advertising B) cause marketing C) issue management D) publicity E) sponsorship Answer: D Diff: 2 Page Ref: 462 Skill: Application AACSB: Analytic skills Objective: 15-1 116) Ian works in the public relations function in his company, and whenever he wants exposure for some aspect of his company, he contacts people he knows, such as Lisa, a reporter for the local newspaper, or Anthony, Melissa, and Stephanie at the local television stations. Ian has worked hard to develop these media contacts. In public relations, this relationship management is known as ________.

A) external relations B) media relations C) public affairs D) corporate relations E) reputation management Answer: B Diff: 2 Page Ref: 463 Skill: Application AACSB: Analytic skills Objective: 15-2 117) Melanie works in the public relations department at a major university, and she is the editor of an internal newspaper, called Update, that is distributed to all faculty and staff working at the university. The newspaper covers stories about what faculty are doing, grants and awards won by employees, and important information regarding human resource issues. What type of public relations program does this illustrate?

A) employee affairs B) corporate relations C) internal relations D) employee relations E) house communications Answer: D Diff: 2 Page Ref: 463 Skill: Application AACSB: Analytic skills Objective: 15-2 30 .

118) Sandra works for the local chapter of the Humane Society, a non-profit organization dedicated to protecting animals. Sandra has worked to identify area residents who are likely to donate to the Humane Society. She will invite all of these potential donors to a fun family day event that she is organizing at the Humane Society. Sandra is involved in ________.

A) issue management B) recruitment C) fund-raising D) crisis management E) cause marketing Answer: C Diff: 2 Page Ref: 464 Skill: Application AACSB: Analytic skills Objective: 15-2 119) P&G is a major consumer packaged goods manufacturer that for years has supported the Special Olympics. P&G features the athletes in several of its advertisements and provides assistance and financial support for the event. P&G's employees assist in the Special Olympics every year. What type of relationship management program is this?

A) public affairs B) corporate relations C) media relations D) employee relations E) cause marketing Answer: E Diff: 2 Page Ref: 464 Skill: Application AACSB: Analytic skills Objective: 15-2 120) Before revising or developing a new public relations campaign for a new client, Lakshmi is conducting a formal type of background research to assess the internal and external public relations environment that affects the organization's audiences, objectives, competitors, and past results. She is doing this to ensure that the current campaign is on track and performing as intended. What does this scenario illustrate?

A) communication audit B) SWOT analysis C) gap analysis D) situation analysis E) evaluation audit Answer: A Diff: 2 Page Ref: 468 Skill: Application AACSB: Analytic skills Objective: 15-3

31 .

121) The National Pork Board developed the very successful "Pork. The Other White Meat" campaign. The campaign provided nutritional information and pork recipes in an attempt to encourage consumers to view pork as a tasty alternative to poultry and fish. Which of the following functions was the goal of this public relations campaign?

A) influence government regulations on pork B) gain financial support for pork producers C) create newsworthy information about pork D) maintain relationships with pork producers E) repositioning pork Answer: E Diff: 3 Page Ref: 469 Skill: Application AACSB: Reflective thinking skills Objective: 15-3 122) Jeep hosts an annual "Jeep Weekend" event during which current Jeep owners are invited to attend a weekend adventure with fellow Jeep owners. The purpose of this public relations tactic is to intensify Jeep owners' involvement with their vehicle and brand and is known as a(n) ________.

A) change-agent strategy B) involvement strategy C) shareholder strategy D) public communication campaign E) public service strategy Answer: B Diff: 2 Page Ref: 469 Skill: Application AACSB: Analytic skills Objective: 15-3 123) HearthSong, a catalog marketer of "toys you'll feel good about giving," has a Facebook page that encourages customer conversation about experiences with the company and its products. This is an example of the use of ________.

A) house advertising B) brand advertising C) controlled media D) uncontrolled media E) semi-controlled media Answer: E Diff: 2 Page Ref: 471 Skill: Application AACSB: Analytic skills Objective: 15-4

32 .

124) Benetton has often used ads that send a social message, such as showing AIDS victims dying or featuring death row inmates, to make people aware of these issues. What type of advertising is this?

A) advocacy advertising B) brand advertising C) identity advertising D) social advertising E) cause advertising Answer: A Diff: 2 Page Ref: 474 Skill: Application AACSB: Analytic skills Objective: 15-4 125) Which of the following best explains why public relations is often overlooked as a tool for supporting product marketing objectives?

A) Public relations departments are typically large divisions within corporations.

B) The time and costs associated with public relations can be prohibitive.

C) Public relations specialists lack the skills necessary to work with marketing experts.

D) Many public relations professionals see their jobs as communicating, not necessarily brand building.

E) The public relations department only wants to handle stockholders, employees, and government officials.

Answer: D Diff: 3 Page Ref: 470 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 15-3 126) Which of the following best explains why it is difficult to evaluate the effectiveness of public relations campaigns?

A) Public relations campaigns do not have measurable objectives.

B) The effects of many public relations activities are difficult to separate from the effects of other marketing communications activities happening at the same time.

C) Marketing experts typically do not see the value in measuring the results of public relations activities.

D) Although outcome can be easily identified, output is difficult to quantify.

E) Public relations campaigns rely upon uncontrolled media.

Answer: B Diff: 3 Page Ref: 482 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 15-5

33 .

Refer to the passage below to answer the questions that follow.

Wendy's fast food restaurant recently had a situation in which a woman found a fingertip in her bowl of chili. Of course, customers were disgusted and sales at that particular Wendy's and Wendy's outlets nationwide went down. Fortunately for Wendy's, though, it was discovered weeks later that the accuser has a history of filing lawsuits against businesses, and the owner of the lost digit turned out to be a co-worker of the woman's husband. The Wendy's location in which this incident occurred received very favorable exposure in the local media once it was learned that restaurant was victimized by this false accusation.

127) Immediately following this individual's claim of finding a fingertip in her chili, which public relations program would be most valuable to Wendy's?

A) corporate reputation management B) crisis management C) marketing public relations D) public communication campaigns E) public service announcements Answer: B Diff: 2 Page Ref: 465 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 15-2 128) Now that the culprit has been found, which public relations program is most relevant to Wendy's?

A) public affairs B) cause marketing C) reputation management D) public service advertising E) marketing public relations Answer: C Diff: 3 Page Ref: 465 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 15-2

34 .

129) The local Wendy's franchise is a good corporate citizen, and the owners of that particular franchise had fostered relationships with local media contacts. What type of relationship management program focuses on developing media contacts?

A) public affairs B) issue management C) corporate relations D) media relations E) town hall forums Answer: D Diff: 2 Page Ref: 463 Skill: Application AACSB: Analytic skills Objective: 15-2 130) To help rebuild Wendy's reputation, the corporate office encourages franchisees to support local organizations in their communities, such as charities and schools. This practice of companies associating themselves with a good cause is known as ________.

A) public affairs B) marketing public relations C) cause marketing D) fund-raising E) development Answer: C Diff: 2 Page Ref: 464 Skill: Application AACSB: Analytic skills Objective: 15-2 131) Southern Company is a power company conglomerate in the southern United States, operating several power plants throughout the region, a few of them nuclear power plants.

Needless to say, the public is concerned with emissions in the air surrounding these plants.

Explain what public opinion means and discuss what questions the public relations specialists at Southern Company must understand about public opinion before deciding on an appropriate campaign.

Answer: Public opinion, what a group of people think, is a belief that people hold about an event, person, institution, or product that is not necessarily based on fact. The public relations strategist researches the answers to two primary questions: (1) Which publics are most important to the organization, now and in the future?

(2) What do these publics think?

Particular emphasis falls on understanding the role of opinion leaders, who are important people who influence the opinions of others.

Diff: 3 Page Ref: 461 Skill: Synthesis AACSB: Reflective thinking skills Objective: 15-1

35 .

132) How does public opinion differ from mass opinion?

Answer: Public opinion examines the responses of specific subgroups rather than a more general mass audience.

Diff: 3 Page Ref: 461 Skill: Synthesis AACSB: Reflective thinking skills Objective: 15-1 133) In difficult economic times, the public relations budget is likely to suffer more severe cuts than other functions of an organization. Jill is the director of her company's public relations department, and she has to convince her superiors that her department's function produces tangible results. To them, concepts such as goodwill are just "warm fuzzies." What should Jill say to help them appreciate the importance of public goodwill?

Answer: Public goodwill is the greatest asset any organization can have. A well-informed public with a positive attitude toward an organization is critical to the organization's survival and that is why creating goodwill is the primary goal of most public relations programs. A public relations program that is tuned to creating goodwill operates as the conscience of the organization. The trust on which goodwill is based comes from corporate integrity.

Diff: 2 Page Ref: 461 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 15-1 134) Armstrong Williams is a conservative African American talk show radio host. He was very supportive of President Bush's "No Child Left Behind" legislation. Some people changed their opinion after hearing Armstrong support it even though they weren't influenced by the ads they saw regarding this issue. However, it was later revealed (after the bill became law) that Mr. Williams was paid hundreds of thousands of dollars to "talk up" the bill without his audience knowing that he had been paid for it. Why do you think supporters of this bill wanted him to support it but not let his audience know he was being paid to do so, and what are the ramifications of these actions?

Answer: The public tends to trust the media more than they do advertisers. This consumer tendency is called the implied third-party endorsement factor. However, Williams' credibility and the credibility of the supporters of this bill are likely to suffer from this action, and credibility is a major point of distinction between advertising and public relations.

Diff: 3 Page Ref: 462 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 15-1

36 .

135) Discuss how public relations professionals might be involved in recruitment.

Answer: Public relations professionals sometimes work with human resources and membership recruitment for organizations. This might include preparing ads, websites, and literature on the company or organization, as well as arranging events.

Diff: 2 Page Ref: 464 Skill: Synthesis AACSB: Reflective thinking skills Objective: 15-2 136) Do you think you have what it takes to work in public relations or public affairs? List five of the required skills for public relations managers or public affairs specialists.

Answer: Students can list any five of the following: (1) Knowledge of how public relations and public affairs support business goals (2) A knack for discerning which opponents to take seriously (3) The ability to integrate all communication functions (4) An understanding of how to control key messages (5) The ability to have influence without being too partisan (6) A talent for synthesizing, filtering, and validating information (7) An aptitude for information technology (8) A global perspective Diff: 2 Page Ref: 466 Skill: Synthesis AACSB: Reflective thinking skills Objective: 15-2 137) You've just started working at a consumer products business as the public relations director.

You learned that your company does not have a crisis management plan, so you are going to develop one. What should you include in the plan, and how will you get employees to know what to do in the event of a crisis?

Answer: An effective crisis plan outlines who contacts the various stakeholders who might be affected (employees, customers, suppliers, civic and community leaders, government agencies), who speaks to the news media, and who sets up and runs an onsite disaster-management center.

You should conduct unannounced crisis training during which staff must drop everything and deal with a simulated crisis as it unfolds.

Diff: 3 Page Ref: 465 Skill: Synthesis AACSB: Reflective thinking skills Objective: 15-2

37 .

138) You're not sure what major to decide on because you like advertising and you like public relations. However, there is an area where these two disciplines overlap. Name and describe this public relations tool.

Answer: One area where advertising and public relations overlap is marketing public relations (MPR), which is the process of planning and delivering programs that encourage sales and contribute to customer satisfaction by providing communication that addresses the needs and wants of consumers. It is different from a more general public relations approach in its consumer and sales focus. However, the need to establish a credibility platform is similar in both: that's what PR brings to marketing and is PR's greatest strength in an IMC program. In other words, MPR supports marketing's product and sales focus by increasing brand credibility and the company's credibility with consumers.

Diff: 2 Page Ref: 466 Skill: Synthesis AACSB: Reflective thinking skills Objective: 15-2 139) Angela is starting the planning phase of a public relations campaign for a client. Explain where she should start.

Answer: Planning for a public relations campaign is similar to planning an advertising campaign. The plan should complement the marketing and advertising strategies so the organization communicates with one clear voice to its various publics. The process starts with research and a SWOT analysis. The PR effort may also begin with a more formal type of background research, called a communication audit, to assess the internal and external PR environment that affects the organization's audiences, objectives, competitors, and past results.

An annual audit or a campaign-specific audit can be used to ensure that a program is on track and performing as intended. Often benchmarking is used to identify baselines from previous audits or audits of other related companies and industries so there is a point of comparison. A gap analysis, which measures the differences in perceptions and attitudes between groups or between the organization and its publics, may be part of the analysis.

Diff: 3 Page Ref: 468 Skill: Synthesis AACSB: Reflective thinking skills Objective: 15-3 140) Why might public relations efforts have a strong impact on public awareness at a substantially lower cost than advertising?

Answer: With public relations, the company is paying for a staff to develop and circulate information and plan events instead of paying for space or time in the media.

Diff: 3 Page Ref: 474 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 15-4

38 .

141) Home Depot supports its employees who have Olympic aspirations, and it looks as though a few more employees could possibly be attending the next Olympics. However, to get to that point, these athletes must train and compete in the world arena. You are tasked with writing a feature story about the dedication of these athletes and, of course, Home Depot's support of their efforts. You hope to get the editor of Readers' Digest to publish this story, but you will be targeting other publications as well. Explain how feature stories are used in public relations.

Answer: Ideas for feature stories, which are human-interest stories rather than hard news announcements, have to be "sold" to editors. This is done using a pitch letter that outlines the subject in an engaging way and sells a story idea. These letters are often sent to editors via email.

Diff: 2 Page Ref: 476 Skill: Synthesis AACSB: Reflective thinking skills Objective: 15-4 142) Give three tips for writing an e-mail pitch letter.

Answer: Students can answer any three of the following tips on how to write e-mail pitch letters: (1) Never list all recipients in the "To:" line because no one wants to see all the others who received the pitch. These story ideas are supposed to be made available to the medium on an exclusive basis.

(2) Avoid attachments as they take time to open and to read, and they can also carry viruses.

(3) Keep your pitches less than a page in length, and use the first paragraph to capture the who, what, and why of the story.

(4) Help reporters do their jobs by providing them with a great story idea, including visuals and other resources, and with contacts, so they can round out the story.

(5) Make it personal by using their first names and mentioning the publication name.

(6) Keep subject-line headers to fewer than four or five words.

(7) Never follow up on an e-mail pitch by asking, "Did you get it?" Instead, call to ask reporters if they need more information.

Diff: 2 Page Ref: 476 Skill: Synthesis AACSB: Reflective thinking skills Objective: 15-4 143) Melanie was informed that she will be participating in a media tour for her company for the next three weeks. Explain what this is and the activities that she might be performing.

Answer: A media tour is a press conference on wheels. The traveling spokesperson makes announcements and speeches, holds press conferences to explain a promotional effort, and offers interviews.

Diff: 2 Page Ref: 476 Skill: Synthesis AACSB: Reflective thinking skills Objective: 15-4

39 .

144) Advertising, publicity, and publications such as annual reports and collateral material are well-known tools of public relations. List three other, lesser-known, yet effective, public relations tools.

Answer: The other types of public relations tool include: (1) DVDs, CDs, Podcasts, Books, and Online Video (2) Speakers and Photos (3) Displays and Exhibits (4) Special Events and Tours (5) Online Communication Diff: 2 Page Ref: 477-478 Skill: Synthesis AACSB: Reflective thinking skills Objective: 15-4 145) How might a business use brand ambassadors as part of a public relations plan?

Answer: Brand ambassadors are customers who are willing to talk up a product to others. A business could encourage this type of word of mouth marketing through discounts or exclusive first looks at new products and sales.

Diff: 2 Page Ref: 481 Skill: Synthesis AACSB: Reflective thinking skills Objective: 15-5 146) Kimberly has planned and developed a public relations campaign for her client. Explain how she might assess the effectiveness of this campaign.

Answer: Public relations practitioners track the impact of a campaign in terms of output (how many news releases lead to stories or mentions in news stories) and outcome (attitude or behavior change). Impressions, which is the number of times a person in the target audience is reached by one or more of the messages, is often a measure used.

Diff: 3 Page Ref: 482 Skill: Synthesis AACSB: Reflective thinking skills Objective: 15-5

40 .

Refer to the passage below to answer the questions that follow.

Kellogg's is a well-known manufacturer of breakfast cereals and several other products, such as Pop-Tarts, Eggo waffles, and fruit snacks. Kellogg's has used Tony the Tiger on its Frosted Flakes box and promotional efforts for years. In fact, when Tony turned 50 years old, Kellogg's staged a big event in Michigan, which is where the cereal is produced, to celebrate. The company also took the party on the road for the month, traveling to 30 cities in a bus painted with an image of Tony and offering fun activities for families. Also, during that month, the price of the cereal was lowered to what the price was 50 years ago when Kellogg's first started selling it. The event received considerable media exposure (e.g., a feature story about Tony in USA Today) due to the successful public relations effort supporting the brand. Additionally, kids can go to Kellogs.com and click on "Fun-K-Town" and play games with Kellogg's breakfast cereal characters such as Tony the Tiger. During the month of his birthday celebration, there was a special game in which kids could help Tony find his birthday presents. Although anyone could play a game with Tony, game pieces were placed in specially marked boxes, giving kids the chance to participate in the game at a higher level and win prizes.

147) In general, who are potential targets for Kellogg's public relations efforts?

Answer: Public relations is focused on all the relationships that an organization has with its various publics. By publics, we mean all the groups of people with which a company or organization interacts: employees, media, community groups, shareholders, and so forth.

Another term for this is stakeholders, which refers more specifically to people who have a stake (financial or otherwise) in a company or organization.

Diff: 2 Page Ref: 460 Skill: Synthesis AACSB: Reflective thinking skills Objective: 15-1 148) Explain what type of public relations program Tony the Tiger's birthday celebration illustrates.

Answer: Tony's birthday celebration represents marketing public relations (MPR), which are programs that encourage sales and contribute to customer satisfaction by providing communication that addresses the needs and wants of consumers. MPR is different from a more general public relations approach in its consumer and sales focus.

Diff: 3 Page Ref: 466 Skill: Synthesis AACSB: Reflective thinking skills Objective: 15-2 149) Identify the public relations tool used for Tony's birthday celebration.

Answer: The celebration itself is an example of a special event and the tour, and the exposure that the tour received was a result of publicity.

Diff: 2 Page Ref: 478 Skill: Application AACSB: Analytic skills Objective: 15-4 41 .

150) What type of public relations tool does the game at Kellogs.com represent?

Answer: This is an example of online communications, specifically an external communication of a corporate website. Corporate websites have become an important part of corporate communications as these sites can present information about the company and open up avenues for stakeholders to contact the company. Though not a specific public relations tool, the game could be viewed as an involvement strategy. Involvement can create interest and a feeling of excitement, but more importantly it can drive loyalty.

Diff: 2 Page Ref: 479 Skill: Application AACSB: Use of information technology Objective: 15-4

42 .

Advertising & IMC: Principles and Practice, 9e (Moriarty) Chapter 16 Direct Response 1) ________ occurs when a seller and customers deal with each other directly rather than through an intermediary, such as a wholesaler or retailer.

A) Integrated marketing B) Simplified marketing C) Leveled marketing D) Direct-response marketing E) Tiered marketing Answer: D Diff: 1 Page Ref: 488 Skill: Concept Objective: 16-1 2) What is the focus of most direct marketing communications?

A) increasing awareness B) enhancing attitudes C) producing a sale D) gaining acceptance among several stakeholders E) encourage switching from a competitor's product or service Answer: C Diff: 2 Page Ref: 489 Skill: Concept Objective: 16-1 3) Which of the following is true about direct marketing?

A) Direct marketing relies on a consumer response that comes through an intermediary.

B) Direct marketing tends to be less interactive than other marcom tools are.

C) Direct marketing is considered one-way communication.

D) Direct marketing relies heavily on market research and database development.

E) Direct marketing messages are more cost efficient than mass media messages are.

Answer: D Diff: 2 Page Ref: 489 Skill: Concept Objective: 16-1 4) Why is direct marketing a growth area for marketing?

A) The effectiveness of direct-response marketing is easy to evaluate.

B) Consumers are more accepting of it than other forms of marketing communication.

C) Response rates have increased dramatically in the past 10 years.

D) Consumers feel more confident in marketers' concerns for their privacy.

E) all of the above Answer: A Diff: 2 Page Ref: 489 Skill: Concept Objective: 16-1 1 .

5) There are four main players in direct-response marketing communication. Which of the following is NOT one of these four main players?

A) state and federal government that regulates marketing communication B) marketers who use direct response to sell products or services C) agencies that specialize in direct response D) media that deliver messages E) consumers Answer: A Diff: 2 Page Ref: 490 Skill: Concept Objective: 16-1 6) Which of the following is NOT a type of agency involved in direct marketing?

A) advertising agencies B) direct marketing agencies C) service firms D) U.S. Postal Service E) fulfillment houses Answer: D Diff: 2 Page Ref: 490 Skill: Concept Objective: 16-1 7) Service firms in direct marketing specialize in ________.

A) printing B) mailing C) list brokering D) A and B E) A, B, and C Answer: E Diff: 2 Page Ref: 490 Skill: Concept Objective: 16-1 8) Which type of agency is responsible for making sure consumers receive whatever they request in a timely manner, be it a catalog, additional information, or the product itself?

A) advertising agency B) independent agency C) service firm D) fulfillment house E) U.S. Postal Service Answer: D Diff: 2 Page Ref: 490 Skill: Concept Objective: 16-1

2 .

9) The term or phrase that refers to the way that marketers identify prospective customers is ________.

A) mining B) prospecting C) hunting D) phishing E) converting Answer: B Diff: 1 Page Ref: 491 Skill: Concept Objective: 16-1 10) What is the first step in the direct marketing process?

A) setting objectives and making strategic decisions B) communication of the offer C) customer ordering D) fulfillment E) relationship building Answer: A Diff: 2 Page Ref: 491 Skill: Concept Objective: 16-1 11) What is the second step in the direct marketing process?

A) setting objectives and making strategic decisions B) communication of the offer C) customer ordering D) fulfillment E) relationship building Answer: B Diff: 2 Page Ref: 491 Skill: Concept Objective: 16-1 12) Which of the following is the last step in the direct marketing process?

A) setting objectives and making strategic decisions B) communication of the offer C) customer ordering D) fulfillment E) relationship building Answer: E Diff: 2 Page Ref: 491 Skill: Concept Objective: 16-1

3 .

13) Theo is implementing the direct marketing process in his business. Currently, he is conducting marketing research, segmenting and targeting markets, and setting objectives. Which step in the direct marketing process is he implementing?

A) Step 1 B) Step 2 C) Step 3 D) Step 4 E) Step 5 Answer: A Diff: 2 Page Ref: 491 Skill: Concept Objective: 16-1 14) Which basic objective of direct marketing involves providing basic information on companies or individuals who are potential customers?

A) developing leads B) driving traffic C) testing offers D) enhancing awareness E) driving responses Answer: A Diff: 2 Page Ref: 491 Skill: Concept Objective: 16-1 15) Which basic objective of direct marketing involves attempting to motivate customers to visit an event or retail outlet?

A) developing leads B) driving traffic C) testing offers D) enhancing awareness E) driving responses Answer: B Diff: 2 Page Ref: 491 Skill: Concept Objective: 16-1

4 .

16) Which of the following refers to the percentage of direct marketing contacts who actually act on a direct marketing communication?

A) frequency B) conversion rate C) recency D) fulfillment rate E) variable rate Answer: B Diff: 1 Page Ref: 491 Skill: Concept Objective: 16-1 17) The best customer prospects of direct marketers are ________.

A) profiled consumers B) current customers C) affiliated consumers D) segmented consumers E) purged customers Answer: B Diff: 2 Page Ref: 492 Skill: Concept Objective: 16-1 18) Direct marketers have identified the three criteria of RFM to predict who is most likely to repurchase. RFM stands for ________.

A) reach, frequency, and monetary B) reach, financial, and media C) recency, financial, and media D) recency, frequency, and media E) recency, frequency, and monetary Answer: E Diff: 2 Page Ref: 492 Skill: Concept Objective: 16-1

5 .

19) Which of the following statements about direct marketing customers is true?

A) The more recently customers bought from a company, the less likely they are to buy again.

B) The less money customers recently spent buying from a company, the more likely they are to buy again.

C) The less frequently customers have bought from a company, the more likely they are to buy again.

D) The more money customers recently spent buying from a company, the less likely they are to buy again.

E) The more frequently customers have bought from a company, the more likely they are to buy again.

Answer: E Diff: 2 Page Ref: 492 Skill: Concept Objective: 16-1 20) ________ is a technique of mining the information in databases to uncover prospective buyers whose characteristics match those of users.

A) Skimming B) Searching C) Profiling D) Relationship marketing E) Fulfillment Answer: C Diff: 2 Page Ref: 492 Skill: Concept AACSB: Use of information technology Objective: 16-1 21) Which of the following is NOT typically part of the offer in direct marketing?

A) description of the product B) terms of sale C) payment information D) delivery information E) rebate Answer: E Diff: 2 Page Ref: 493 Skill: Concept Objective: 16-1

6 .

22) All of the variables that are intended to satisfy the needs of the consumer are considered part of the ________ in direct marketing.

A) message B) media C) fulfillment D) offer E) response Answer: D Diff: 2 Page Ref: 493 Skill: Concept Objective: 16-1 23) Which of the following is NOT a variable that would be considered part of the offer in direct marketing?

A) media strategy B) price C) cost of shipping and handling D) guarantees and warranties E) future obligations Answer: A Diff: 2 Page Ref: 493 Skill: Concept Objective: 16-1 24) Which of the following is a general guideline that applies to message development in direct marketing?

A) The message is often longer and contains more explanation and detail than an advertising message does.

B) Message copy tends to be written in an impersonal, formal style.

C) The message should not touch on the issue of product reliability.

D) The message should be very brief and to the point.

E) The message should not include information about a return policy or warranty.

Answer: A Diff: 2 Page Ref: 493 Skill: Concept Objective: 16-1

7 .

25) Which of the following is NOT a general guideline that applies to message development in direct marketing?

A) The message should contain clear comparisons or details about purchase decision factors.

B) The message should counter consumers' reluctance to buy.

C) The message should reflect whether the offer is a one-step offer or a two-step offer.

D) The message must, by law, include information about a return policy.

E) The more individually targeted the message is, the better.

Answer: D Diff: 2 Page Ref: 493 Skill: Concept Objective: 16-1 26) Which type of offer asks for a direct sales response?

A) secondary offer B) indirect offer C) one-step offer D) two-step offer E) primary offer Answer: C Diff: 1 Page Ref: 493 Skill: Concept Objective: 16-1 27) Which type of offer is designed to gather leads, answer consumer questions, drive visits to a store, or set up appointments?

A) secondary offer B) indirect offer C) one-step offer D) two-step offer E) primary offer Answer: D Diff: 1 Page Ref: 493 Skill: Concept Objective: 16-1 28) During the ________ step of the direct-marketing process, the DMC campaign must communicate benefits to buyers by answering the enduring question: "What's in it for me?"

A) objectives/strategy B) offer C) response/order D) fulfillment E) relationship building Answer: B Diff: 2 Page Ref: 493 Skill: Concept Objective: 16-1 8 .

29) During the ________ step in the direct marketing process, the DMC message must make it as easy as possible for customers to respond.

A) objectives/strategy B) offer C) response/order D) fulfillment E) relationship building Answer: C Diff: 1 Page Ref: 493 Skill: Concept Objective: 16-1 30) In direct marketing, getting the product to the customer who ordered it is known as ________.

A) follow-up B) integration C) conversion D) fulfillment E) relationship building Answer: D Diff: 1 Page Ref: 494 Skill: Concept Objective: 16-1 31) Which of the following is NOT part of the fulfillment stage of the direct marketing process?

A) receiving payment B) delivering the product C) providing delivery tracking information to customers D) providing financing for customers E) processing the transaction Answer: D Diff: 2 Page Ref: 494 Skill: Concept Objective: 16-1 32) Which of the following is the original and most effective form of direct marketing?

A) personal sales B) sales promotion C) catalog marketing D) print direct-response advertising E) direct mail Answer: A Diff: 2 Page Ref: 495 Skill: Concept AACSB: Communication abilities Objective: 16-2 9 .

33) For organizations that use direct marketing, which of the following is the most popular method of direct marketing?

A) personal sales B) sales promotion C) telemarketing D) print direct-response advertising E) direct mail Answer: E Diff: 2 Page Ref: 495 Skill: Concept Objective: 16-2 34) Which of the following is NOT a good tip for creating effective direct mail?

A) Get the attention of the targeted prospect as the envelope comes from the mailbox.

B) Use the word free as often as possible.

C) Provide critical information about product use.

D) Use an incentive to encourage a fast response.

E) Inspire confidence, minimize risk, and establish that the company is reputable.

Answer: B Diff: 2 Page Ref: 495 Skill: Concept AACSB: Communication abilities Objective: 16-2 35) How is most direct mail sent?

A) first-class mail B) second-class mail C) second-class bulk mail D) third-class bulk mail E) certified mail Answer: D Diff: 2 Page Ref: 495 Skill: Concept Objective: 16-2 36) Which of the following is an advantage of direct mail?

A) positive perceptions B) low cost per thousand C) reaches the unreachable D) high response rates E) all of the above Answer: C Diff: 2 Page Ref: 496 Skill: Concept AACSB: Communication abilities Objective: 16-2 10 .

37) Which of the following is NOT an advantage of direct mail?

A) tells a story B) builds in feedback C) personalizes the message D) reaches the unreachable E) low cost per thousand Answer: E Diff: 2 Page Ref: 496 Skill: Concept Objective: 16-2 38) Which of the following is a disadvantage of direct mail?

A) negative consumer perceptions B) inability to reach audiences who are inaccessible by mass media C) inability to personalize the message D) lack of feedback E) difficulty engage attention of target Answer: A Diff: 2 Page Ref: 496 Skill: Concept Objective: 16-2 39) Of the following, which is the best advice for writing an effective direct-response letter?

A) Make the offer as early as possible in the body of the letter.

B) Don't confuse prospects by including information about a website.

C) Use a general salutation.

D) Use brief descriptions of the product and offer.

E) Do not guarantee the product.

Answer: A Diff: 2 Page Ref: 497 Skill: Concept AACSB: Communication abilities Objective: 16-2 40) A ________ is a multipage direct-mail publication that shows a variety of merchandise.

A) letter B) brochure C) broadsheet D) self-mailer E) catalog Answer: E Diff: 1 Page Ref: 498 Skill: Concept Objective: 16-2

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41) Which of the following is a true statement about catalogs?

A) More paper is consumed annually in the production of catalogs than in either magazines or books.

B) The most successful catalogs carry a variety of brands and products rather than products solely from the sponsoring brand.

C) The growth in catalogs in the 21st century is in general-interest catalogs.

D) Few paper catalogs are associated with online catalogs.

E) Due to increasing use of the Internet, the number of paper catalogs produced annually is decreasing.

Answer: A Diff: 2 Page Ref: 498 Skill: Concept Objective: 16-2 42) Which of the following is a disadvantage of catalogs?

A) high response rates B) low cost per thousand C) databases that must be constantly maintained D) positive perceptions E) difficult to target specific market segments Answer: C Diff: 2 Page Ref: 499 Skill: Concept Objective: 16-2 43) Rooms with large banks of phones and computers where workers send and receive calls are known as ________.

A) call centers B) telephone pits C) call lists D) call floors E) call pits Answer: A Diff: 1 Page Ref: 500 Skill: Concept Objective: 16-2 44) Which of the following are the two types of telemarketing?

A) opt-in and opt-out B) toll and toll-free C) internal and external D) business and organizational E) inbound and outbound Answer: E Diff: 2 Page Ref: 500 Skill: Concept Objective: 16-2 12 .

45) In which type of telemarketing does the call originate with the customer?

A) opt-in B) opt-out C) external D) inbound E) outbound Answer: D Diff: 2 Page Ref: 500 Skill: Concept Objective: 16-2 46) In which type of telemarketing does the call originate with the marketer?

A) opt-in B) opt-out C) external D) inbound E) outbound Answer: E Diff: 2 Page Ref: 500 Skill: Concept Objective: 16-2 47) Which of the following refers to the use of special computerized programs that use random dialing, making it possible for telemarketing companies to call anyone even those with unlisted numbers?

A) opt-in telemarketing B) opt-out telemarketing C) cold calling D) conversion calling E) predictive dialing Answer: E Diff: 1 Page Ref: 500-501 Skill: Concept AACSB: Use of information technology Objective: 16-2

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48) Which of the following is NOT a protection included in the Telemarketing Sales Rule enacted by the Federal Trade Commission in 1995?

A) a prohibition on telemarketing calls made before 8 a.m. or after 9 p.m.

B) strict informational disclosure requirements for telemarketers C) a prohibition against telemarketers using misrepresentative or misleading statements D) a provision requiring telemarketers to honor do-not-call lists E) a provision requiring specific payment collection procedures Answer: D Diff: 2 Page Ref: 501 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 16-2 49) What is the purpose of the national Do Not Call Registry?

A) to make businesses using telemarketing register all the numbers that they call B) to allow consumers to receive telemarketing calls only from marketers that they want to call them C) to stop telemarketers from calling cell phone numbers because consumers must pay for those calls D) to allow consumers to "opt-out" of telemarketing calls from for-profit businesses E) to stop telemarketers from calling people at work Answer: D Diff: 2 Page Ref: 501 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 16-2 50) A toll-free phone number, an order coupon, a website, and an e-mail address are examples of ________.

A) steps in the direct marketing process B) direct marketing C) measures of effectiveness in direct marketing D) contact elements that can be included in a direct-response advertisement E) the offer in direct marketing Answer: D Diff: 2 Page Ref: 501 Skill: Concept Objective: 16-2

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51) ________ is a type of marketing communication that has characteristics of advertising but also includes an element that allows the audience to make a direct response to the advertiser.

A) Direct-response advertising B) Direct-focus advertising C) Integrated marketing communications D) Direct-marketing advertising E) Direct-to-consumer advertising Answer: A Diff: 2 Page Ref: 501 Skill: Concept AACSB: Communication abilities Objective: 16-2 52) A direct-response ad on television that is typically 30 or 60 minutes long and tends to be played during non-prime time periods is known as a(n) ________.

A) infomercial B) commercial C) promotional program D) telemarketing program E) home shopping network Answer: A Diff: 1 Page Ref: 502 Skill: Concept Objective: 16-2 53) Fraudulently using a company's identity to send out spam is known as ________.

A) copy-cat advertising B) vampire advertising C) phishing D) spying E) spoofing Answer: E Diff: 1 Page Ref: 504 Skill: Concept AACSB: Use of information technology Objective: 16-2

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54) The ________ regulates e-mail marketing.

A) Do Not Mail List B) Mail Preference Service C) McAfee Internet Security Suite D) CAN-SPAM Act E) Do Not Call Registry Answer: D Diff: 2 Page Ref: 504 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 16-2 55) The Register of Known Spam Operations (Rokso) is a kind of "most wanted" list of spammers that is maintained by ________.

A) the Federal Trade Commission B) the Direct Marketing Association C) the U.S. Postal Service D) Internet hosts and service providers E) the CAN-SPAM Act Answer: D Diff: 3 Page Ref: 504 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 16-2 56) What do direct marketers use to keep track of customers, identify prospective customers, and segment groups of customers and prospects?

A) databases B) permission marketing C) integrated marketing communication D) opt-out strategies E) opt-in strategies Answer: A Diff: 2 Page Ref: 505 Skill: Concept AACSB: Use of information technology Objective: 16-3

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57) ________ is a practice that uses databases to predict trends and monitor consumers to more effectively implement direct-marketing strategies.

A) Integrated marketing B) Permission-based marketing C) Database marketing D) Conversion marketing E) Predictive marketing Answer: C Diff: 1 Page Ref: 506 Skill: Concept AACSB: Use of information technology Objective: 16-3 58) Which of the following is NOT an objective of a marketing database?

A) to record names of customers, expires, and prospects B) to store and analyze responses C) to store and analyze purchasing performance D) to continue direct communication with customers E) to record and analyze marketing communications Answer: E Diff: 2 Page Ref: 506 Skill: Concept AACSB: Use of information technology Objective: 16-3 59) The database marketing process begins with a(n) ________ that could include completing a warranty card, entering a contest or sweepstake, or opting in on a website.

A) behavioral target B) house list C) information collection point D) merged list E) response list Answer: C Diff: 2 Page Ref: 506 Skill: Concept Objective: 16-3

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60) In a marketing database, the term expire means ________.

A) the customer is dead B) the marketer no longer has permission to communicate with this customer C) the customer name is no longer valid D) the customer has not purchased from the marketer for more than 18 months E) the customer's name has been merged to another list Answer: C Diff: 3 Page Ref: 506 Skill: Concept AACSB: Use of information technology Objective: 16-3 61) In which stage of the database marketing process is data entered into the computer to merge it with other information already in the file or added at the same time?

A) first B) second C) fourth D) fifth E) seventh Answer: B Diff: 3 Page Ref: 506 Skill: Concept AACSB: Use of information technology Objective: 16-3 62) In which stage of the database marketing process can the direct marketer create clusters of characteristics and behaviors representing valuable consumer segments or target markets?

A) first B) third C) fourth D) fifth E) seventh Answer: C Diff: 3 Page Ref: 506 Skill: Concept AACSB: Use of information technology Objective: 16-3

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63) Combining direct-mail lists is known as ________.

A) purging B) merging C) mining D) sourcing E) converting Answer: B Diff: 1 Page Ref: 507 Skill: Concept AACSB: Use of information technology Objective: 16-3 64) Deleting the repeated names on direct-mail lists that have been combined is known as ________.

A) purging B) merging C) mining D) parsing E) converting Answer: A Diff: 1 Page Ref: 507 Skill: Concept AACSB: Use of information technology Objective: 16-3 65) Which type of direct-marketing list consists of the marketer's own customers or members?

A) data list B) house list C) converted list D) response list E) compiled list Answer: B Diff: 1 Page Ref: 507 Skill: Concept Objective: 16-3 66) Which type of direct-marketing list is the most valuable list to a marketer?

A) data list B) house list C) compiled list D) response list E) prospect list Answer: B Diff: 2 Page Ref: 507 Skill: Concept Objective: 16-3 19 .

67) Which type of list is derived from people who have responded to some type of directresponse offer?

A) data list B) house list C) compiled list D) response list E) prospect list Answer: D Diff: 1 Page Ref: 507 Skill: Concept Objective: 16-3 68) Which type of direct-marketing list is a list of some specific category, such as sports car owners, new homebuyers, graduating seniors, or subscribers to a magazine?

A) data list B) house list C) compiled list D) response list E) prospect list Answer: C Diff: 1 Page Ref: 507 Skill: Concept Objective: 16-3 69) Which type of database provided by an outside firm contains information useful in segmenting as well as contact information?

A) mined database B) relational database C) response database D) house database E) clustered database Answer: B Diff: 1 Page Ref: 508 Skill: Concept AACSB: Use of information technology Objective: 16-3

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70) The financial contribution through sales volume of an individual customer or customer segment over a length of time is known as ________.

A) return on investment B) lifetime customer value C) customer contribution D) customer loyalty E) customer relationship assessment Answer: B Diff: 1 Page Ref: 511 Skill: Concept Objective: 16-4 71) Direct marketing is often used by nonprofit organizations and by political associations.

Answer: TRUE Diff: 2 Page Ref: 488 Skill: Concept Objective: 16-1 72) The four main players in direct-response marketing are the advertisers, the agencies, the media, and the government.

Answer: FALSE Diff: 2 Page Ref: 490 Skill: Concept Objective: 16-1 73) In direct marketing, service firms are agencies that specialize in supplying printing, mailing, and list brokering.

Answer: TRUE Diff: 2 Page Ref: 490 Skill: Concept Objective: 16-1 74) Advertising agencies do not play a role in direct-response marketing.

Answer: FALSE Diff: 2 Page Ref: 490 Skill: Concept Objective: 16-1 75) In direct-response marketing, a business responsible for making sure consumers receive whatever they requested in a timely manner is known as a service firm.

Answer: FALSE Diff: 2 Page Ref: 490 Skill: Concept Objective: 16-1

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76) Three basic objectives of direct marketing are lead generation, traffic generation, and elimination of competition.

Answer: FALSE Diff: 2 Page Ref: 491 Skill: Concept AACSB: Communication abilities Objective: 16-1 77) Only the product or service is considered part of the offer in direct marketing.

Answer: FALSE Diff: 2 Page Ref: 493 Skill: Concept Objective: 16-1 78) A two-step offer is designed to sell consumers a lower-priced item before offering them a higher-priced, and thus more profitable, offer.

Answer: FALSE Diff: 2 Page Ref: 493 Skill: Concept Objective: 16-1 79) In direct marketing, optimization is the function that gets the product to the customer who ordered it.

Answer: FALSE Diff: 2 Page Ref: 494 Skill: Concept Objective: 16-1 80) Direct-marketing messages are constantly being measured, so direct marketers can learn what works and modify succeeding campaigns based on results.

Answer: TRUE Diff: 2 Page Ref: 495 Skill: Concept Objective: 16-1 81) A direct-mail piece is a print advertising message for a product or service that is delivered by mail.

Answer: TRUE Diff: 1 Page Ref: 495 Skill: Concept Objective: 16-2

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82) One of the primary advantages of direct mail is the low cost per thousand compared to mass media.

Answer: FALSE Diff: 2 Page Ref: 496 Skill: Concept Objective: 16-2 83) The average response rate for a direct mail offer is 10 percent.

Answer: FALSE Diff: 3 Page Ref: 496 Skill: Concept Objective: 16-2 84) A broadsheet is a multipage direct-mail publication that shows a variety of merchandise.

Answer: FALSE Diff: 2 Page Ref: 496 Skill: Concept Objective: 16-2 85) More direct-marketing dollars are spent on telemarketing than on any other medium.

Answer: TRUE Diff: 3 Page Ref: 499 Skill: Concept Objective: 16-2 86) Using outbound telemarketing, the call center staff calls unqualified numbers that are sometimes just randomly selected.

Answer: FALSE Diff: 2 Page Ref: 500 Skill: Concept Objective: 16-2 87) Cold call dialing techniques make it possible for telemarketing companies to call anyone even those with unlisted numbers.

Answer: FALSE Diff: 2 Page Ref: 500-501 Skill: Concept AACSB: Use of information technology Objective: 16-2 88) One limitation of infomercials is that they cannot easily be introduced into foreign markets.

Answer: FALSE Diff: 2 Page Ref: 502 Skill: Concept AACSB: Communication abilities Objective: 16-2 23 .

89) Direct marketing is the model for e-commerce.

Answer: TRUE Diff: 2 Page Ref: 503 Skill: Concept AACSB: Use of information technology Objective: 16-2 90) E-mail as a marketing tool is typically only used by e-commerce companies, such as Amazon.com.

Answer: FALSE Diff: 2 Page Ref: 503 Skill: Concept AACSB: Use of information technology Objective: 16-2 91) Unwanted e-mail is known as spam.

Answer: TRUE Diff: 1 Page Ref: 504 Skill: Concept AACSB: Use of information technology Objective: 16-2 92) Permission marketing gives customers an opportunity to opt-out of receiving further e-mails from a company.

Answer: TRUE Diff: 2 Page Ref: 505 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 16-2 93) The database marketing process begins with a sale.

Answer: FALSE Diff: 2 Page Ref: 506 Skill: Concept AACSB: Use of information technology Objective: 16-3 94) The three types of direct marketing lists are house lists, response lists, and directory lists.

Answer: FALSE Diff: 2 Page Ref: 507 Skill: Concept AACSB: Use of information technology Objective: 16-3

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95) Combining direct-mail lists is called merging, and deleting the repeat names is called purging.

Answer: TRUE Diff: 2 Page Ref: 507 Skill: Concept AACSB: Use of information technology Objective: 16-3 96) Cloning is a technique of mining the information in databases to uncover prospective buyers whose characteristics match those of current buyers.

Answer: FALSE Diff: 2 Page Ref: 509 Skill: Concept AACSB: Use of information technology Objective: 16-3 97) Lifetime customer value is an estimate of how much purchase volume companies can expect to get over time from various target markets.

Answer: TRUE Diff: 1 Page Ref: 511 Skill: Concept Objective: 16-4 98) In some foreign countries, government regulations of the postal service place limitations on the use of direct mail.

Answer: TRUE Diff: 2 Page Ref: 512 Skill: Concept AACSB: Dynamics of the global economy Objective: 16-4 99) One advantage of direct marketing is that it affords flexibility in both form and timing.

Answer: TRUE Diff: 2 Page Ref: 512 Skill: Concept AACSB: Communication abilities Objective: 16-4 100) One disadvantage of direct marketing is consumer frustration with too many catalogs and junk mail.

Answer: TRUE Diff: 2 Page Ref: 512 Skill: Concept Objective: 16-4

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101) Direct-response marketing is a growth area because it is easy to evaluate its effectiveness.

Answer: TRUE Diff: 2 Page Ref: 489 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 16-1 102) Inbound telemarketing calls generate more consumer resistance than outbound telemarketing calls do.

Answer: FALSE Diff: 2 Page Ref: 500 Skill: Synthesis AACSB: Reflective thinking skills Objective: 16-2 103) According to the Supreme Court's ruling, the free speech rights of the telemarketing industry are infringed upon by the national Do Not Call Registry.

Answer: FALSE Diff: 2 Page Ref: 501 Skill: Synthesis AACSB: Ethical understanding and reasoning abilities Objective: 16-2 104) Radio is not an appropriate medium for direct-response advertising.

Answer: FALSE Diff: 2 Page Ref: 502 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 16-2 105) The marketing manager of Charlie's Car Parts uses a customer database to e-mail promotional information to customers. The demographic information in the database provides the manager with all the data he needs regarding his customers' buying preferences.

Answer: FALSE Diff: 2 Page Ref: 507 Skill: Application AACSB: Reflective thinking skills Objective: 16-3

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106) Name and describe the four types of agencies involved in direct-response advertising.

Answer: There are four types of agencies in direct marketing: (1) Advertising Agencies –Agencies whose main business is mass-media advertising either have a department that specializes in direct response or own a separate direct-response company.

(2) Direct Marketing Agencies –Independent, full-service direct-marketing agencies specializing in direct response. These agencies create the DMC messages, arrange for their deliver to a target audience, and evaluate the results.

(3) Service Firms –Firms that specialize in supplying printing, mailing, list brokering, and data management.

(4) Fulfillment Houses –Businesses responsible for making sure consumers receive whatever they request in a timely manner, be it a catalog, additional information, or the product itself.

Diff: 3 Page Ref: 490 Skill: Synthesis AACSB: Reflective thinking skills Objective: 16-1 107) Name and describe the five basic steps in direct marketing.

Answer: The steps in direct marketing are: (1) Setting Objectives and Making Strategic Decisions –Three primary objectives are lead generation, traffic generation, and action. Direct marketers specify these objectives with factors such as timing and amount of increase.

(2) Offer –The offer typically consists of a description of the product, terms of sale, and payment and delivery information. An effective offer clearly calls on the buyer to take some action. Some other variables included are the price, the cost of shipping and handling, optional features, future obligations, availability of credit, extra incentives, time and quality limits, and guarantees or warranties.

(3) Response/Order –All direct marketing aims to generate a behavioral response, especially sales.

(4) Fulfillment and Customer Maintenance –This refers to getting the product to the customer who ordered it. Fulfillment includes all the back-end activities that the company's infrastructure is designed to make easy for the customer to respond to.

(5) Relationship Building –In this step, direct marketers evaluate the success of the campaign.

Diff: 3 Page Ref: 491-494 Skill: Synthesis AACSB: Reflective thinking skills Objective: 16-1

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108) Name and describe the seven stages of the database marketing process.

Answer: Stages in the database marketing process: (1) Collection Point –The initial information-collection point could come from completing a warranty card, entering a contest or sweepstake, opting in on a website, or filling out a card at a trade show, to name a few.

(2) Data Entry –Data is entered into the computer and merged with other information already in the file or added at the same time.

(3) Data Assessment –The next step is to assess the data and determine the relevant level of detail.

(4) Data Clustering –The direct marketer creates clusters of characteristics and behaviors representing valuable consumer segments or target markets (audiences).

(5) Data Application –The direct marketer applies the database to specific marketing problems or strategies.

(6) Data Sharing –The direct marketer makes decisions about data sharing and partnerships, such as with retail outlets.

(7) Data Refinement –This includes corrections, updates, additions, and deletions. This information is fed back into the planning process.

Diff: 3 Page Ref: 506 Skill: Synthesis AACSB: Use of information technology Objective: 16-3 109) Compare and contrast the three types of direct-marketing lists.

Answer: There are three types of lists: (1) House List –This is a list of the marketer's own customers or members. This is a company's most important target market, and probably its most valuable list.

(2) Response List –This is derived from people who respond to some type of direct-response offer, such as a direct-mail offer or solicitation. Such lists are usually available for rent from the original direct-mail marketer, and those on the list indicate a willingness to buy by direct mail.

(3) Compiled List –A compiled list is a list of some specific category, such as sports car owners, new homebuyers, graduating seniors, association members, or subscribers to a magazine, book club, or record club.

Diff: 2 Page Ref: 507 Skill: Synthesis AACSB: Reflective thinking skills Objective: 16-4

28 .

110) Discuss the advantages and disadvantages of direct marketing.

Answer: Advantages of direct marketing: (1) Direct marketing messages can be personalized, which makes them more persuasive than mass-media messages.

(2) Direct marketing results are measurable, so the return on investment (ROI) is easily known.

(3) Direct marketing technology allows for the collection of relevant information about the customer, contributing to the development of a useful database and selective reach, which reduces waste.

(4) Products have added value through the convenient purchase process and reliable, quick delivery mechanisms of direct marketing. Purchase is not restricted to a location.

(5) The marketer (rather than the wholesaler or retailer) controls the product until delivery.

(6) Advertising carrying direct-marketing components is easier to evaluate.

(7) It affords flexibility in both form and timing.

Disadvantages of direct marketing: (1) Consumers are still reluctant to purchase a product sight unseen.

(2) There are annoyances associated with direct marketing, such as too many catalogs, junk mail, and calls during dinner.

(3) There are serious problems with customer privacy, data sharing, and identity theft.

(4) Direct marketing can be more attuned to sales than creating long-term brand image.

Diff: 3 Page Ref: 512 Skill: Synthesis AACSB: Reflective thinking skills Objective: 16-4 111) Knight-Abbey Commercial Printers and Direct Mailers is a large commercial printer in the southeastern United States. The company develops, prints, and mails direct mail pieces for several businesses. One of the company's largest customers is Beau Rivage casino in Gulfport, Mississippi. Knight-Abbey personalizes and prints eight variations of a direct mail offer to customers. In terms of the types of firms in direct-response advertising, which type is KnightAbbey?

A) advertising agency B) direct marketing agency C) service firm D) fulfillment house E) print brokerage Answer: C Diff: 2 Page Ref: 490 Skill: Application AACSB: Analytic skills Objective: 16-1

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112) Serena is planning a direct marketing campaign and is examining the effectiveness of past direct marketing efforts. She notices that a higher percentage of customers responded to her company's last direct-mail communication than to its telemarketing communication. Serena was comparing the ________ of these two communication efforts.

A) recency B) frequency C) conversion rates D) fulfillment rates E) optimization Answer: C Diff: 2 Page Ref: 491 Skill: Application AACSB: Analytic skills Objective: 16-1 113) Saul is planning a direct marketing campaign that has a relatively limited budget. To make the best use of his budget, Saul wants to identify which of the company's recent customers should be sent a full-length catalog and which of the company's recent customers should be sent a less expensive mini-catalog. Saul should use a(n) ________ model.

A) recency B) frequency C) conversion rate D) fulfillment rate E) optimization Answer: E Diff: 2 Page Ref: 492 Skill: Application AACSB: Reflective thinking skills Objective: 16-1 114) Josh is a broker who sells retirement investments to individuals. He uses direct marketing, but he uses it primarily to get customers to inquire for more information and set up an appointment to discuss investment options with him. Which type of offer is this?

A) one-step B) two-step C) primary D) secondary E) indirect Answer: B Diff: 2 Page Ref: 493 Skill: Application AACSB: Analytic skills Objective: 16-1

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115) MMT, Inc., a pharmaceutical company, considered using direct marketing. An important need the company had was to respond to the customers' responses by getting the product to the customers who ordered it within 48 hours. What step in the direct marketing process was MMT concerned about?

A) objectives B) the offer C) targeting D) fulfillment E) message strategy Answer: D Diff: 2 Page Ref: 494 Skill: Application AACSB: Analytic skills Objective: 16-1 116) Direct Data is a service firm specializing in collecting and analyzing data about potential customers for a variety of direct marketers. Direct Data tracks geographic, demographic, and psychographic data, pulling together lists of target potential customers for its clients. When creating direct mail messages, Direct Data's clients likely use this information to ________.

A) build in feedback B) manage negative perceptions about direct marketing C) personalize the message D) tell a complete sales story E) reach those unreachable by other media Answer: C Diff: 2 Page Ref: 496 Skill: Application AACSB: Reflective thinking skills Objective: 16-2 117) Neal Murphy sells his company's unique gift items on television programs and entire channels dedicated to selling goods and services. Neal is using ________.

A) direct-response television advertising B) Internet-based infomercials C) online marketing D) telemarketing E) data mining Answer: A Diff: 2 Page Ref: 502 Skill: Application AACSB: Analytic skills Objective: 16-2

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118) After selecting a sweater on the Land's End website, Kelly Oldham filled out the required customer and credit card information. A box with a checkmark inside was next to the following statement: "Yes, I would like to receive promotional information via e-mail from Land's End." The statement suggests that Land's End is using which of the following marketing tools?

A) spam B) telemarketing C) spoofing D) data mining E) permission marketing Answer: E Diff: 2 Page Ref: 505 Skill: Application AACSB: Analytic skills Objective: 16-2 119) Laurie is a college professor who teaches a course in direct marketing. She is a member of the Direct Marketing Association (DMA), a trade association for businesses in the direct marketing industry, because it is a useful source of current information for her course. She receives direct mail offers, e-mails, and telemarketing calls from a variety of businesses that are also sent to other members of the DMA. What type of list is Laurie's name on?

A) house list B) response list C) compiled list D) professional list E) converted list Answer: C Diff: 2 Page Ref: 507 Skill: Application AACSB: Analytic skills Objective: 16-4 120) Anthony is working on an account interested in direct marketing to a target audience of men who own sports cars. Anthony will most likely use a ________ list.

A) converted B) house C) response D) satisfaction E) compiled Answer: E Diff: 2 Page Ref: 507 Skill: Application AACSB: Analytic skills Objective: 16-3

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121) Kinder Clothes, an online children's clothing marketer, uses data mining to identify and segment customers who have purchased infant clothing, toddler clothing, and children's clothing.

The company has also used data mining to further identify and segment these groups based on whether they purchased clothing for boys or girls. In this example, Kinder Clothes is using ________.

A) skimming B) behavioral targeting C) prospecting D) converting E) opt-in marketing Answer: B Diff: 2 Page Ref: 509 Skill: Application AACSB: Use of information technology Objective: 16-3 122) P&G has developed and purchased huge databases and has more than 30 million consumers in its current database. P&G routinely mines the information in the database to uncover potential buyers whose characteristics match those of their current customers for a given product and brand. What technique is P&G using?

A) skimming B) searching C) prospecting D) relationship marketing E) converting Answer: C Diff: 2 Page Ref: 509 Skill: Application AACSB: Use of information technology Objective: 16-3

33 .

123) Organic Designs is a small, successful chain of stores offering stylish clothes made of allorganic materials for infants, toddlers, and young children. Most of the Organic Designs stores are located in urban areas. Now Organic Designs is considering using direct marketing to reach potential customers who live outside of the company's existing markets, with the goal of engaging attention and creating long-term relationships with a new group of customers. Which of the following methods of direct marketing would most likely be effective in accomplishing this goal?

A) telemarketing B) print direct-response advertising C) catalogs D) opt-out marketing E) bulk e-mailing Answer: C Diff: 2 Page Ref: 498 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 16-2 124) Gutter Guys is a gutter installation company in Southern California that used to generate most of its sales through telemarketing but now uses direct mail to reach prospective customers.

Which of the following most likely explains the reason that Gutter Guys switched from telemarketing to direct mail?

A) the CAN-SPAM Act B) the Telemarketing Sales Rule C) the Register of Known Spam Operations D) the Mail Preference Service E) the national Do Not Call Registry Answer: E Diff: 2 Page Ref: 501 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 16-2 125) Gianna is a skeptical consumer whose motto is "I'll believe it works when I see that it works." Which of the following would be the most effective form of direct marketing for a marketer to use to reach Gianna and customers like her?

A) infomercials B) catalogs C) direct mail D) telemarketing E) data mining Answer: A Diff: 2 Page Ref: 502 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 16-2 34 .

126) The Pampered Sole is a new women's shoe store in Birmingham, Alabama. The owners want to target women between the ages of 30 and 45 with a household income greater than $50,000 with a special promotion. They have purchased two mailing lists: one with demographic information for their retail area and one with psychographic information. They want one list that combines both types of information, but they don't want to mail someone twice. What should they do?

A) purge, then merge the lists B) merge, then define the lists C) merge, then purge the lists D) purge, then define the lists E) compile, then convert the lists Answer: C Diff: 2 Page Ref: 507 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 16-3 127) Adams Cutlery has always relied upon advertising to market its products to final customers.

However, the marketing team at Adams Cutlery now wants to begin a direct marketing campaign consisting of a company Web site, e-mails to current customers, and an online catalog. Which of the following would the marketing team expect to gain as a result of implementing this direct marketing plan?

A) the ability to increase the range of products the company offers B) a wealth of information about competitors and their products C) more control over customers' interactions with the company D) the ability to learn more about their customers and tailor offerings to fit their needs E) a lower cost-per-contact that could prove to be more cost effective than advertising in mass media Answer: D Diff: 2 Page Ref: 512 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 16-4

35 .

Refer to the passage below to answer the questions that follow.

Solumbria, a company that sells medically recommended sun protective clothing, has ads in several different magazines that give consumers information about their products. The headline of the ad says "Serious Sun Protection" surprinted over a man and a woman dressed head to toe in the protective clothing. The body copy then goes on to tout the benefits of sun protection, the comfort of the company's clothing, and how dermatologists have recommended Solumbria for their patients. The last paragraph of the copy says "For a FREE catalog of Solumbria hats, shirts, pants and accessories for men, women and children, call Sun Precautions: 1-800-882-7860." The ad also provides a web address.

128) Which of the following best describes the type of advertising described in this scenario?

A) retail advertising B) indirect advertising C) directory advertising D) direct-response advertising E) direct-to-consumer advertising Answer: D Diff: 2 Page Ref: 501 Skill: Application AACSB: Analytic skills Objective: 16-2 129) Which of the direct marketing objectives does this scenario illustrate?

A) lead generation B) strengthen customer relationships C) test offers D) follow-up E) enhance attitudes Answer: A Diff: 2 Page Ref: 491 Skill: Application AACSB: Analytic skills Objective: 16-1 130) What type of offer does this ad represent?

A) one-step B) two-step C) primary D) secondary E) indirect Answer: B Diff: 2 Page Ref: 493 Skill: Application AACSB: Analytic skills Objective: 16-1 36 .

131) What marketing challenge faced the GEICO campaign as described in the chapter's opening vignette?

Answer: The marketing challenge for the GEICO campaign was to generate inquiries for rate quotes and to motivate people to call or go online to find out how they can save money.

Diff: 2 Page Ref: 487 Skill: Synthesis AACSB: Reflective thinking skills Objective: 16-1 132) After graduation, you plan on working in your family's business, and you want to implement some of the direct marketing principles that you learned in this class. Identify three of the six basic objectives of direct marketing to convince your parents that it is the right move for the business.

Answer: Students could list any three of the following: (1) Provide product information.

(2) Drive a response.

(3) Retain and strengthen customer relationships.

(4) Develop leads.

(5) Drive traffic to a store or website.

(6) Test offers.

Diff: 2 Page Ref: 455-456 Skill: Application AACSB: Analytic skills Objective: 16-1 133) You are developing the offer for a direct marketing campaign. Explain what is included in the "offer."

Answer: The offer consists of a description of the product, terms of sale, and payment and delivery information. All the variables that are intended to satisfy the needs of the consumer are considered part of the offer. These variables include the price, the cost of shipping and handling, optional features, future obligations, availability of credit, extra incentives, time and quality limits, and guarantees or warranties.

Diff: 2 Page Ref: 493 Skill: Synthesis AACSB: Reflective thinking skills Objective: 16-1 134) Explain how direct marketing professionals are able to continually evaluate and accurately measure the effectiveness of various offers in a single campaign.

Answer: By employing measurement tools such as tracking printed codes on mail-in responses that identify different offers and using different telephone numbers for each commercial (by time slot, station, or length), the DM professional can clearly identify those offers that yield the best results and modify the campaign based on those findings.

Diff: 2 Page Ref: 494 Skill: Synthesis AACSB: Reflective thinking skills Objective: 16-1 37 .

135) Some advertising students are visiting your agency on a field trip and have asked you to provide some guidance on creating effective direct-response mail. Give them three of the ideas that were given in the text.

Answer: Students can answer any three of the following: (1) Get the attention of the targeted prospect as the envelope comes from the mailbox.

(2) Create a need for the product, show what it looks like, and demonstrate how it is used.

(3) Answer questions, as a good salesperson does, and reassure the buyer.

(4) Provide critical information about product use.

(5) Inspire confidence, minimize risk, and establish that the company is reputable.

(6) Make the sale by explaining how to buy, how to order, where to call, and how to pay for the purchase.

(7) Use an incentive to encourage a fast response.

Diff: 3 Page Ref: 495 Skill: Synthesis AACSB: Reflective thinking skills Objective: 16-2 136) Identify the five primary tools of direct marketing.

Answer: The four strategic tools of direct marketing are: catalogs, direct mail, telemarketing, online e-marketing, and direct-response advertising.

Diff: 2 Page Ref: 495 Skill: Application AACSB: Analytic skills Objective: 16-2 137) Barbara is the owner of a gift shop and is considering developing a catalog to increase her sales. Although there are several advantages of using catalogs, there are also some limitations.

Discuss the limitations of catalogs that Barbara needs to be aware of.

Answer: There are several limitations of catalogs: (1) Negative perceptions Catalogs are viewed as junk mail by many recipients.

(2) Costs The cost per thousand of catalogs is higher than that for mass media.

(3) Response rate The response is relatively at low at 3 to 4 percent.

(4) Mailing list Databases must be constantly maintained.

Diff: 2 Page Ref: 499 Skill: Synthesis AACSB: Reflective thinking skills Objective: 16-2

38 .

138) Converges is a nationwide call center operator and has several call centers in college towns.

They are recruiting on campus, and your roommate is interested because the pay is pretty good and the hours are flexible. However, she doesn't know much about telemarketing, so she asked you about it because you are taking this class. Briefly describe the two types of telemarketing.

Answer: There are two types of telemarketing: inbound and outbound. An inbound or incoming telemarketing call originates with the customer. The consumer can be responding to an ad or a telemarketing message received earlier. Calls originating with the firm are outgoing; these outbound telemarketing calls are the ones that generate the most consumer resistance.

Diff: 2 Page Ref: 500 Skill: Synthesis AACSB: Reflective thinking skills Objective: 16-2 139) Infomercials have been around since the emergence of the cable industry in the 1980s and have become a multibillion-dollar industry. Explain what an infomercial is and why, today, it is viewed as a viable medium.

Answer: An infomercial is a direct-response commercial that is typically 30 or 60 minutes long and tends to be played during non-prime time periods. Today, the infomercial is viewed as a viable medium because: (1) Consumers now have confidence in infomercials and the products they sell.

(2) With the involvement of upscale advertisers, the quality of infomercial production and supportive research has improved.

(3) Consumers can be better segmented and infomercials are coordinated with respect to these audiences.

(4) Infomercials can easily be introduced into foreign markets.

Diff: 3 Page Ref: 502 Skill: Synthesis AACSB: Reflective thinking skills Objective: 16-2 140) Explain what spam is.

Answer: Spam is the term used for unwanted e-mail, or junk e-mail.

Diff: 2 Page Ref: 504 Skill: Synthesis AACSB: Reflective thinking skills Objective: 16-2 141) Discuss how legitimate direct marketers can respond to the criticisms surrounding e-mail marketing.

Answer: Many companies now use permission marketing, which gives customers an opportunity to opt-in to receive e-mails from the company. Permission marketing also gives customers an opportunity to opt-out of the service when they no longer need a company's products or services.

Diff: 3 Page Ref: 504 Skill: Synthesis AACSB: Reflective thinking skills Objective: 16-2 142) Jack, a successful businessman, is annoyed by the barrage of junk mail he receives from 39 .

credit card companies. What would you recommend that Jack do to reduce the credit card solicitations he receives?

Answer: To get off credit card solicitation lists, Jack should call 888-5-OPT-OUT. A recorded message will ask for his contact information, but that's just confirmation. This service already has his contact information; providing it by phone confirms his identity so his request can be processed.

Diff: 3 Page Ref: 505 Skill: Synthesis AACSB: Reflective thinking skills Objective: 16-2 143) Many companies have developed databases and have begun database marketing. Explain what this means.

Answer: Database marketing is a practice that uses databases to predict trends and monitor consumers to more effectively implement direct marketing strategies.

Diff: 2 Page Ref: 505 Skill: Synthesis AACSB: Reflective thinking skills Objective: 16-3 144) Identify the four primary objectives of a marketing database.

Answer: (1) To record names of customers, expires (names no longer valid), and prospects (2) To store and analyze responses (3) To store and analyze purchasing performance (4) To continue direct communication with customers Diff: 3 Page Ref: 506 Skill: Synthesis AACSB: Reflective thinking skills Objective: 16-3 145) Some companies have large databases they have examined to determine who their best customers are. Banks, in particular, have analyzed customer data and have learned that the top 5 percent of their customers are very profitable for the bank and the bottom 5 percent are very unprofitable. Name and describe the concept that many marketers are using to assess the value of customer loyalty.

Answer: Lifetime customer value (LCV) is an estimate of how much purchase volume companies can expect to get over time from various individuals or target markets. LCV is the financial contribution through sales volume of an individual customer or customer segment over a length of time. The calculation is based on known consumption habits plus future consumption expectations. The estimate of the contribution is defined as return on investment that is, revenue gains as a function of marketing costs.

Diff: 2 Page Ref: 511 Skill: Synthesis AACSB: Use of information technology Objective: 16-4 40 .

Refer to the passage below to answer the questions that follow.

Proactive Solution is a skincare system to help people with acne. Proactive was originally sold only through direct marketing. The consumer had to enroll in the Proactive Solution Clear Skin Club. However, now some large malls have kiosks selling Proactive Solution products without the club membership, but the prices are much higher. Proactive Solution has had one of the longest-running infomercials on television, and its product line is also sold through magazine ads. Through these mediums, consumers can purchase the product directly by calling, mailing, or going through the Internet to submit an order.

146) Name and describe the type of advertising that Proactive Solution uses to promote and sell its product.

Answer: This is direct-response advertising, which is a type of marketing communication that combines the characteristics of advertising (attention-getting visuals, interesting copy, and relevant timing) but also includes an element that allows the reader, viewer, or listener to make a direct response to the advertiser. The contact element can be a toll-free phone number, an order coupon, a request-for-information device, a website or an e-mail address.

Diff: 2 Page Ref: 501 Skill: Synthesis AACSB: Reflective thinking skills Objective: 16-2 147) The infomercials and print ads allow consumers to purchase directly from the ad itself.

There is a mail-in coupon order form, a toll-free phone number, and a web address given in the print ad that states, "Call Now!" Some infomercials even state that "calls received within the next 30 minutes will receive '2 Free Bonuses' when ordering." Name and describe the type of offer this is, and explain how it is different from the other type of offer.

Answer: The two types of offers are one-step and two-step. This is an example of a one-step offer because it asks for a direct sales response; it is crucial that there is a mechanism for responding to the offer. A two-step offer is designed to gather leads, answer consumer questions, get them to visit a store or set up appointments.

Diff: 3 Page Ref: 493 Skill: Synthesis AACSB: Reflective thinking skills Objective: 16-1 148) What do you think Proactive Solution uses to track consumer purchases? How can they use this to restart customers who have joined the club but later quit?

Answer: Databases can be used to keep track of customers and identify prospective customers.

Data are collected based on the customer's behavior and interaction with the company. The information gathered through customer interaction feeds back into the process and becomes an input for the next round of communication efforts. Thus, knowledge of recent customer losses would generate different messages than those sent to current customers.

Diff: 3 Page Ref: 506 Skill: Critical Thinking AACSB: Use of information technology Objective: 16-3 41 .

149) Explain which type of direct-mail list is the most important to Proactive.

Answer: A house list is the most valuable to Proactive. This is a list of the marketer's own customers or members, its most important target market.

Diff: 2 Page Ref: 507 Skill: Synthesis AACSB: Reflective thinking skills Objective: 16-3 150) Jill is a member of the Proactive Solution Clear Skin Club. She also received a telephone sales call trying to get her to purchase Proactive make-up. Jill had previously registered her phone number with the national Do Not Call Registry and is upset that she received this call. Can Proactive call her? Explain any restrictions they must be aware of.

Answer: According to the Telemarketing Sales Rule (TSR) enacted by the Federal Trade Commission in 1995, telemarketers are prohibited from calling before 8 a.m. or after 9 p.m.; it imposes strict information disclosure requirements; it prohibits misrepresentative or misleading statements; and it provides for specific payment collection procedures. More recently, FTC regulations require telemarketing firms to identify themselves on caller ID. The most serious restriction on telemarketing comes from various state and national "do-not-call" lists. However, even though a consumer may have registered his or her phone number on this list, companies can still legally phone individuals with whom they have an "existing relationship," which in practice means the consumer has bought a product or has contacted the company within the previous 18 months. Because Jill is a customer, Proactive legally can call her.

Diff: 3 Page Ref: 501 Skill: Synthesis AACSB: Ethical understanding and reasoning abilities Objective: 16-2

42 .

Advertising & IMC: Principles and Practice, 9e (Moriarty) Chapter 17 Promotions 1) The media and non-media marketing pressure applied for a predetermined, limited period of time at the level of consumer, retailer, or wholesaler in order to stimulate trial, increase consumer demand, or improve product availability is categorized as ________.

A) advertising B) public relations C) sales promotion D) personal selling E) event sponsorship Answer: C Diff: 2 Page Ref: 518 Skill: Concept AACSB: Communication abilities Objective: 17-1 2) Which of the following is NOT a typical target audience of sales promotion?

A) consumers B) distributors C) sales representatives D) media E) retailers Answer: D Diff: 2 Page Ref: 518 Skill: Concept Objective: 17-1 3) What is the ultimate goal of sales promotion?

A) action B) awareness C) identification D) intention E) liking Answer: A Diff: 2 Page Ref: 518 Skill: Concept Objective: 17-2

1 .

4) Through the process of ________, results derived from a promotion can be estimated and compared with the projected cost of the effort.

A) investment planning B) payout planning C) added value planning D) allowance analysis E) continuity analysis Answer: B Diff: 1 Page Ref: 519 Skill: Concept Objective: 17-1 5) Usually the go/no-go decision for a sales promotion is based on the ________.

A) creativity of the program B) expected ROI of the program C) quality of available premiums D) relationship with channel members E) level of product parity Answer: B Diff: 2 Page Ref: 519 Skill: Concept Objective: 17-1 6) Which of the following statements regarding sales promotion is false?

A) Shoppers today are better educated and more selective, which means they are more loyal to brands than in the past.

B) Although consumers are an important target for promotions, so are other people, such as the company's sales representatives and members of the trade.

C) Over the years advertising and sales promotion have been battling for their share of the marketing communication budget.

D) Two chief reasons for the growth of sales promotion are the pressure for short-term profits and the need for accountability of marketing communication efforts.

E) From the consumers' perspective, sales promotion reduces the risk associated with a purchase by giving them something of added value.

Answer: A Diff: 2 Page Ref: 519 Skill: Concept Objective: 17-1

2 .

7) Which of the following is NOT a reason for the growth of sales promotion?

A) consumer expectation of constant short-term price reductions B) need for accountability C) power of dominant retailers D) reduction of consumers' risk E) pressure for long-term profits Answer: E Diff: 2 Page Ref: 519 Skill: Concept Objective: 17-1 8) Sales promotion is often the most effective strategy for increasing sales of a(n) ________.

A) luxury product B) parity product C) business service D) exclusive product E) differentiated product Answer: B Diff: 2 Page Ref: 519 Skill: Concept Objective: 17-1 9) Sales manuals, training programs, and supportive materials are all examples of ________.

A) retailer promotions B) partner promotions C) sales force promotions D) trade promotions E) channel promotions Answer: C Diff: 2 Page Ref: 520 Skill: Concept Objective: 17-1 10) Which of the following is NOT a type of consumer promotion?

A) price deals B) sampling C) spiffs D) contests and sweepstakes E) premiums Answer: C Diff: 2 Page Ref: 522-523 Skill: Concept Objective: 17-2

3 .

11) Which of the following is a common consumer price deal?

A) banded packs B) refund C) rebate D) premium E) contest Answer: A Diff: 2 Page Ref: 522 Skill: Concept Objective: 17-2 12) Which of the following is NOT a common consumer price deal?

A) cents-off deal B) prize-pack deal C) bonus packs D) banded packs E) refund Answer: E Diff: 2 Page Ref: 522 Skill: Concept Objective: 17-2 13) A temporary price reduction or a sale price is known as a ________.

A) refund B) rebate C) price deal D) spiff E) price-off Answer: C Diff: 1 Page Ref: 522 Skill: Concept Objective: 17-2 14) The consumer promotion that provides a reduction in the normal price charged for a good or service announced at the point of sale or through mass or direct advertising is known as a ________.

A) prize-pack deal B) cents-off deal C) bonus pack D) banded pack E) coupon Answer: B Diff: 2 Page Ref: 522 Skill: Concept Objective: 17-2

4 .

15) Which of the following provide the consumer with something extra through the package itself?

A) prize-pack deals B) cents-off deals C) samples D) self-liquidator premiums E) coupons Answer: A Diff: 2 Page Ref: 522 Skill: Concept Objective: 17-2 16) Which of the following are the two types of coupons?

A) refund and rebate B) immediate and delayed C) percentage and cents-off D) retailer and manufacturer E) price cut and added value Answer: D Diff: 2 Page Ref: 523 Skill: Concept Objective: 17-2 17) ________ coupons can be redeemed only at the specified retail outlet, and ________ coupons can be redeemed at any outlet distributing the product.

A) Retailer-sponsored; manufacturer-sponsored B) Manufacturer-sponsored; retailer-sponsored C) Refund; rebate D) Rebate; refund E) Immediate; delayed Answer: A Diff: 2 Page Ref: 523 Skill: Concept Objective: 17-2 18) A consumer sales promotion that is a marketer's offer to return a certain amount of money to the consumer who purchases the product is known as a ________.

A) rebate B) refund C) coupon D) A or B E) A, B, or C Answer: D Diff: 2 Page Ref: 523 Skill: Concept Objective: 17-2 5 .

19) Allowing the consumer to try the product or service is called ________.

A) a warranty B) sampling C) a premium D) a specialty E) self-liquidating Answer: B Diff: 1 Page Ref: 523 Skill: Concept Objective: 17-2 20) The consumer promotion that is a tangible reward for a particular act, usually purchasing a product or visiting the point-of-purchase, is known as a ________.

A) sample B) price deal C) contest D) sweepstake E) premium Answer: E Diff: 1 Page Ref: 523 Skill: Concept Objective: 17-2 21) What are the two general types of premiums?

A) direct and mail B) free and self-liquidator C) immediate and delayed D) direct and indirect E) retailer-sponsored and manufacturer-sponsored Answer: A Diff: 2 Page Ref: 523 Skill: Concept Objective: 17-2 22) Which type of premium awards the incentive immediately, at the time of purchase?

A) direct B) self-liquidator C) retailer-sponsored D) manufacturer-sponsored E) specialty Answer: A Diff: 2 Page Ref: 523 Skill: Concept Objective: 17-2

6 .

23) Which of the following is NOT a type of direct premium?

A) co-op premiums, given to consumers at the retail site but paid for by the manufacturer B) store premiums, given to customers at the retail site C) in-pack premiums, inserted in the package at the factory D) on-pack premiums, placed on the outside of the package at the factory E) container premiums, in which the package is the premium Answer: A Diff: 2 Page Ref: 523 Skill: Concept Objective: 17-2 24) Which type of premium usually requires that a payment be mailed in along with some proof of purchase before the customer receives the premium?

A) indirect premium B) self-liquidator premium C) cost-based premium D) rebate E) refund Answer: B Diff: 1 Page Ref: 523 Skill: Concept Objective: 17-2 25) Which type of consumer sales promotion creates excitement by promising "something for nothing" and offering impressive prizes that consumers can win by chance?

A) price deals B) contests C) sweepstakes D) sampling E) premiums Answer: C Diff: 1 Page Ref: 524 Skill: Concept Objective: 17-2 26) ________ require participants to compete for a prize or prizes based on some sort of skill or ability.

A) Sweepstakes B) Games C) Contests D) Premiums E) Specialties Answer: C Diff: 1 Page Ref: 524 Skill: Concept Objective: 17-2 7 .

27) ________ require only that participants submit their names to be included in a one-shot drawing or other chance selection.

A) Sweepstakes B) Games C) Contests D) Premiums E) Specialties Answer: A Diff: 2 Page Ref: 524 Skill: Concept Objective: 17-2 28) A ________ is a type of sweepstake with a longer time frame.

A) game B) contest C) premium D) spiff E) specialty Answer: A Diff: 2 Page Ref: 524 Skill: Concept Objective: 17-2 29) ________ presents the brand's name on something that is given away as a reminder; examples include calendars, pens, T-shirts, mouse pads, and so forth.

A) A premium B) A rebate C) A bonus pack D) Specialty advertising E) Specialty sampling Answer: D Diff: 1 Page Ref: 524 Skill: Concept Objective: 17-2 30) Sampling is generally most effective when reinforced on the spot with a ________.

A) self-liquidator premium B) specialty item C) game D) rebate E) coupon Answer: E Diff: 2 Page Ref: 525 Skill: Concept Objective: 17-2

8 .

31) Which of the following is NOT an objective of consumer promotions?

A) generate awareness B) generate trial C) maintain or increase market share D) remind consumers about the brand E) increase profit margins Answer: E Diff: 2 Page Ref: 525-526 Skill: Concept Objective: 17-2 32) Which of the following promotions would a marketer be most likely to use to build relationships with customers and to remind customers about the brand?

A) coupons B) sampling C) rebates D) specialty items E) refunds Answer: D Diff: 3 Page Ref: 527 Skill: Concept Objective: 17-2 33) Brokers, distributors, wholesales, dealers, franchisees, and retailers are referred to as ________.

A) consumers B) trade C) gatekeepers D) suppliers E) merchandisers Answer: B Diff: 2 Page Ref: 528 Skill: Concept Objective: 17-3 34) In a practice that is sometimes referred to as ________, trade promotions are directed at distribution channel members.

A) value-added marketing B) payout planning C) channel marketing D) partner relationship management E) customer relationship management Answer: C Diff: 2 Page Ref: 528 Skill: Concept Objective: 17-3 9 .

35) Which of the following is a type of trade promotion?

A) refund B) premium C) point-of-purchase display D) sampling E) rebate Answer: C Diff: 2 Page Ref: 528 Skill: Concept Objective: 17-3 36) Which of the following is NOT a type of trade promotion?

A) point-of-purchase displays B) retailer kits C) contests D) trade shows and exhibits E) coupons Answer: E Diff: 2 Page Ref: 528 Skill: Concept Objective: 17-3 37) ________ contain materials that support retailers' selling efforts or that help representatives make sales calls on prospective retailing customers.

A) Promotion kits B) Point-of-purchase (PoP) kits C) Trade incentives D) Retailer kits E) Spiffs Answer: D Diff: 2 Page Ref: 528 Skill: Concept Objective: 17-3 38) A manufacturer-designed display distributed to retailers who use it to call their customers' attention to product promotions is known as a ________.

A) trade incentive B) point-of-purchase (PoP) promotion C) rack job D) spiff E) display slick Answer: B Diff: 1 Page Ref: 529 Skill: Concept Objective: 17-3

10 .

39) Print ads that are ready to be sent to the local print media as soon as the retailer or dealer adds identification, location, promotion prices, or other information are known as ________.

A) spiffs B) push incentives C) ad slicks D) ad comps E) ad incentives Answer: C Diff: 2 Page Ref: 529 Skill: Concept Objective: 17-3 40) Which type of trade promotion rewards a reseller financially for purchase of a certain level of a product or support of a promotion?

A) trade incentives and deals B) contests C) point-of-purchase displays D) price deals E) retailer kits Answer: A Diff: 2 Page Ref: 529 Skill: Concept Objective: 17-3 41) Which of the following are the most common type of trade deals?

A) point-of-purchase displays B) push money C) spiffs D) contests E) buying allowances and advertising allowances Answer: E Diff: 2 Page Ref: 529 Skill: Concept Objective: 17-3 42) What are the two primary roles for a trade promotion?

A) trade support and consumer acceptance B) consumer acceptance and excitement C) trade support and excitement D) switching behavior and excitement E) trade support and image enhancement Answer: C Diff: 2 Page Ref: 529 Skill: Concept Objective: 17-3

11 .

43) Consumer promotions are most important in which of the following types of strategies?

A) push B) pull C) channel D) wholesale E) intermediate Answer: B Diff: 2 Page Ref: 530 Skill: Concept Objective: 17-3 44) Trade promotions are most important in which of the following types of strategies?

A) push B) pull C) end-user D) direct marketing E) one-to-one Answer: A Diff: 2 Page Ref: 530 Skill: Concept Objective: 17-3 45) Monetary bonuses paid to a store's salesperson based on the units that salesperson sells over a period of time are known as ________.

A) push money B) spiffs C) slicks D) A and B only E) A, B, and C Answer: D Diff: 2 Page Ref: 530 Skill: Concept Objective: 17-3 46) ________ are premiums, such as a free trip, that a manufacturer gives to a retailer for buying a certain amount of a product.

A) Bonuses B) Loaders C) Spiffs D) Co-ops E) Pulls Answer: B Diff: 2 Page Ref: 530 Skill: Concept Objective: 17-3

12 .

47) Which of the following types of incentives reward retailers by giving them the display after the promotion period is over?

A) bonuses B) display loaders C) display allowances D) buying allowances E) trade exhibits Answer: B Diff: 2 Page Ref: 530 Skill: Concept Objective: 17-3 48) A manufacturer that offers cash or gifts to dealers for encouraging the purchase of the manufacturer's goods is using ________.

A) price-offing B) push money C) off-listing D) off-invoicing E) pull money Answer: B Diff: 2 Page Ref: 530 Skill: Concept Objective: 17-3 49) Manufacturers may offer a(n) ________ in return for the retailer's agreement to feature the manufacturer's products in its advertising.

A) PoP promotion B) advertising allowance C) incentive promotion D) buying allowance E) premium Answer: B Diff: 2 Page Ref: 530 Skill: Concept Objective: 17-3 50) Manufacturers may offer a(n) ________, which may be a set amount of money or a discount, to a reseller who purchases a certain amount of the product during a specified time period.

A) PoP promotion B) advertising allowance C) incentive promotion D) buying allowance E) premium Answer: D Diff: 2 Page Ref: 530 Skill: Concept Objective: 17-3 13 .

51) ________ is a contractual arrangement between the manufacturer and the resellers, in which the manufacturer agrees to pay a part or all of the advertising expenses incurred by the resellers.

A) Co-op advertising B) Display advertising C) A buying allowance D) An advertising allowance E) A dealer loader Answer: A Diff: 2 Page Ref: 530 Skill: Concept Objective: 17-3 52) A direct payment of cash or goods given to the retailer if the retailer agrees to set up a pointof-sale display is known as a ________.

A) buying allowance B) bonus C) dealer loader D) display allowance E) cooperative allowance Answer: D Diff: 2 Page Ref: 530 Skill: Concept Objective: 17-3 53) PoP displays are provided by ________ and used by ________.

A) retailers; manufacturers B) retailers; consumers C) retailers; direct marketers D) manufacturers; direct marketers E) manufacturers; retailers Answer: E Diff: 2 Page Ref: 530 Skill: Concept Objective: 17-3 54) ________ occurs when companies support an event either financially or by donating supplies and services.

A) Ambush marketing B) Sponsorship C) Co-marketing D) Co-branding E) Tie-in marketing Answer: B Diff: 1 Page Ref: 532 Skill: Concept Objective: 17-4 14 .

55) ________ means building a product's marketing program around a sponsored event, such as the Olympics or a golf tournament.

A) Event marketing B) Sports marketing C) Co-marketing D) Co-branding E) Tie-in marketing Answer: A Diff: 1 Page Ref: 532 Skill: Concept Objective: 17-4 56) Which of the following is NOT considered a type of sponsorship or event marketing?

A) sports sponsorships B) festivals, fairs, and other annual events C) cause marketing D) co-marketing E) supporting the arts Answer: D Diff: 2 Page Ref: 532 Skill: Concept Objective: 17-4 57) Which of the following is NOT a reason for the growth in the relationship between sports and advertising?

A) Media in general has become more and more fractured.

B) Sports leagues and sponsors have organized to make sports an effective tool for marketing.

C) The window of opportunity for this relationship is expected to close soon.

D) Sponsors have organized to leverage their association with major leagues and events.

E) Small sports events can hold tremendous value for advertisers.

Answer: C Diff: 3 Page Ref: 533 Skill: Concept Objective: 17-4 58) ________ is the term given to promotional stunts used at events, such as the Olympics, by companies that are not official sponsors.

A) Ambush marketing B) Sponsorship C) Co-marketing D) Co-branding E) Tie-in marketing Answer: A Diff: 1 Page Ref: 534 Skill: Concept Objective: 17-4 15 .

59) Which of the following is a promotion designed specifically to increase customer retention?

A) event marketing B) loyalty program C) sampling D) rebate E) sweepstake Answer: B Diff: 2 Page Ref: 535 Skill: Concept Objective: 17-4 60) Which of the following is NOT an objective of frequency programs?

A) Increase customer retention.

B) Reward customers for their patronage.

C) Increase the purchase levels of current customers.

D) Generate information for customer databases.

E) Attract new customers to replace unprofitable current customers.

Answer: E Diff: 2 Page Ref: 535 Skill: Concept Objective: 17-4 61) Frequency programs are also known as ________ programs.

A) cross-promotion B) continuity C) partnership D) premium E) specialty Answer: B Diff: 1 Page Ref: 535 Skill: Concept Objective: 17-4 62) Which of the following is NOT a type of partnership program?

A) co-branding B) licensing C) loyalty programs D) tie-ins E) All of the above are types of partnership programs.

Answer: C Diff: 2 Page Ref: 536 Skill: Concept Objective: 17-4

16 .

63) ________ involves manufacturers developing marketing communication programs with their main retail accounts, instead of for them.

A) Ambush marketing B) Sponsorship C) Cross promotion D) Co-marketing E) Licensing Answer: D Diff: 1 Page Ref: 536 Skill: Concept Objective: 17-4 64) When two companies come together to offer a product, the effort is called ________.

A) co-branding B) sponsorship C) cross promotion D) tie-in marketing E) continuity marketing Answer: A Diff: 1 Page Ref: 536 Skill: Concept Objective: 17-4 65) In which of the following does a company with an established brand "rent" that brand to other companies, allowing them to use its logo on their products and in their advertising and promotional events?

A) co-branding B) sponsorship C) tie-ins D) co-marketing E) licensing Answer: E Diff: 1 Page Ref: 536 Skill: Concept Objective: 17-4

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66) Which of the following is a type of partnership program used by manufacturers of two or more brands, such as Doritos corn chips and Pace salsa, to leverage similar strengths to achieve a bigger impact in the marketplace?

A) cross promotion B) licensing C) sponsorship D) co-marketing E) co-branding Answer: A Diff: 1 Page Ref: 536 Skill: Concept Objective: 17-4 67) Which of the following is the most reasonable criticism of sales promotion?

A) cannot account for results B) can lead to consumer brand insensitivity C) difficult to integrate with other elements of the communications mix D) ineffective in the short term E) difficult to determine specific objectives Answer: B Diff: 2 Page Ref: 538 Skill: Concept Objective: 17-5 68) Which of the following most accurately describes an objective of advertising?

A) add tangible value to the product or service B) encourage an immediate action C) create a brand image over time D) contribute to short-term profitability E) emphasize price over value Answer: C Diff: 2 Page Ref: 538 Skill: Concept AACSB: Communication abilities Objective: 17-5

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69) Which of the following is false regarding advertising and sales promotion?

A) Sales promotion strategies can be rational or emotional.

B) Advertising creates a brand image over time, and sales promotion creates immediate action.

C) Advertising contributes to short-term profitability, and sales promotion contributes to longterm profitability.

D) Advertising adds intangible value to the product or service.

E) Sales promotion adds tangible value to the product or service.

Answer: C Diff: 3 Page Ref: 539 Skill: Concept AACSB: Communication abilities Objective: 17-5 70) The goal of creating a payout plan is to produce promotions that increase ________.

A) awareness and attachment B) loyalty and attachment C) loyalty and conviction D) awareness and interest E) sales and profits Answer: E Diff: 2 Page Ref: 540 Skill: Concept Objective: 17-5 71) Sales promotion not only targets consumers, but intermediaries and sales representatives as well.

Answer: TRUE Diff: 2 Page Ref: 518 Skill: Concept Objective: 17-1 72) Sales promotion is primarily designed to motivate people to act by offering incentives.

Answer: TRUE Diff: 1 Page Ref: 518 Skill: Concept Objective: 17-1 73) About one half of marketing communication budgets is spent on consumer sales promotions.

Answer: FALSE Diff: 3 Page Ref: 519 Skill: Concept Objective: 17-1

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74) The chief reasons for the growth of sales promotion are the pressure for short-term profits and the need for accountability.

Answer: TRUE Diff: 2 Page Ref: 519 Skill: Concept Objective: 17-1 75) Shoppers today are more brand loyal, so promotion incentives have to provide substantial incentives to encourage brand switching.

Answer: FALSE Diff: 3 Page Ref: 519 Skill: Concept Objective: 17-1 76) Advertising is often more effective than sales promotion for increasing sales of a parity product when the products in the category are largely undifferentiated.

Answer: FALSE Diff: 2 Page Ref: 519 Skill: Concept Objective: 17-1 77) Sales-force promotions include two general sets of promotional activities directed at salespeople: (1) activities that better prepare salespeople to do their jobs and (2) incentives that motivate salespeople to work harder.

Answer: TRUE Diff: 2 Page Ref: 520 Skill: Concept Objective: 17-1 78) In comparison to sales promotion, advertising is usually viewed as a longer term investment.

Answer: TRUE Diff: 2 Page Ref: 520 Skill: Concept Objective: 17-1 79) A price deal is a temporary price reduction or a sale price.

Answer: TRUE Diff: 2 Page Ref: 522 Skill: Concept Objective: 17-2 80) The two general types of coupons are immediate and delayed.

Answer: FALSE Diff: 2 Page Ref: 523 Skill: Concept Objective: 17-2 20 .

81) Store premiums, in-pack premiums, and on-pack premiums are all types of self-liquidator premiums.

Answer: FALSE Diff: 2 Page Ref: 523 Skill: Concept Objective: 17-2 82) Specialty advertising presents a brand's name on something that is given away as a reminder, such as a pen, cap, or mouse pad.

Answer: TRUE Diff: 1 Page Ref: 524 Skill: Concept Objective: 17-2 83) Sweepstakes and contests are effective promotional tools for driving people to marketers' websites.

Answer: TRUE Diff: 2 Page Ref: 524 Skill: Concept AACSB: Use of information technology Objective: 17-2 84) Consumer promotions can be used to generate awareness, trial, maintain or increase market share, and remind consumers about a brand.

Answer: TRUE Diff: 2 Page Ref: 525 Skill: Concept AACSB: Communication abilities Objective: 17-2 85) A manufacturer-designed display distributed to retailers who use it to call their customers' attention to product promotions is known as a spiff.

Answer: FALSE Diff: 2 Page Ref: 529 Skill: Concept Objective: 17-3 86) Ad slicks are print ads that are ready to be sent to the local print media as soon as the retailer adds identification, location, promotion price, or other information.

Answer: TRUE Diff: 2 Page Ref: 529 Skill: Concept Objective: 17-3

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87) The most common types of trade deals are buying allowances, advertising allowances (including cooperative advertising), and display allowances.

Answer: TRUE Diff: 2 Page Ref: 529 Skill: Concept Objective: 17-3 88) A trade network is where companies within the same industry gather to present and sell their merchandise, as well as to demonstrate their products.

Answer: FALSE Diff: 1 Page Ref: 529 Skill: Concept Objective: 17-3 89) Spiffs are monetary bonuses paid to a store's salesperson based on the units that salesperson sells over a period of time.

Answer: TRUE Diff: 2 Page Ref: 530 Skill: Concept Objective: 17-3 90) Most trade promotions are designed to in some way motivate trade members to cooperate with the manufacturer's promotion.

Answer: TRUE Diff: 2 Page Ref: 530 Skill: Concept Objective: 17-3 91) Guerilla marketing is the term given to promotional stunts used at events by companies that are not official sponsors.

Answer: FALSE Diff: 2 Page Ref: 534 Skill: Concept Objective: 17-4 92) A tie-in involves manufacturers developing marketing communication programs with their main retail accounts, instead of for them.

Answer: FALSE Diff: 2 Page Ref: 536 Skill: Concept AACSB: Communication abilities Objective: 17-4

22 .

93) Marketers license their brand identity to other manufacturers because it makes them money and extends their brand visibility.

Answer: TRUE Diff: 2 Page Ref: 536 Skill: Concept Objective: 17-4 94) The reason tie-ins are successful is that brands can leverage similar strengths to achieve a bigger impact in the marketplace.

Answer: TRUE Diff: 2 Page Ref: 537 Skill: Concept AACSB: Communication abilities Objective: 17-4 95) One disadvantage of promotions is that, although they can help introduce a new product and create brand awareness, they cannot build a brand over time.

Answer: FALSE Diff: 2 Page Ref: 538 Skill: Concept AACSB: Communication abilities Objective: 17-5 96) Sales promotion often relies on rational appeals, and advertising often relies on emotional appeals.

Answer: TRUE Diff: 2 Page Ref: 539 Skill: Concept AACSB: Communication abilities Objective: 17-5 97) Promotions add tangible value to the good or service and contribute greatly to the profitability of the brand.

Answer: TRUE Diff: 2 Page Ref: 539 Skill: Concept Objective: 17-5 98) In most cases, advertising is needed to support promotions.

Answer: TRUE Diff: 2 Page Ref: 540 Skill: Concept AACSB: Communication abilities Objective: 17-5

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99) Response rates and redemption rates are used to evaluate the effectiveness of promotional programs.

Answer: TRUE Diff: 2 Page Ref: 540 Skill: Concept Objective: 17-5 100) Turnover rate is an important measure of a promotion's effectiveness.

Answer: FALSE Diff: 2 Page Ref: 540 Skill: Concept Objective: 17-5 101) One reason for the growth of sales promotion is that it reduces the consumer's risk of trying a new product by giving something of added value to motivate action.

Answer: TRUE Diff: 2 Page Ref: 520 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 17-1 102) Rebate and refund mean basically the same thing.

Answer: TRUE Diff: 2 Page Ref: 523 Skill: Synthesis AACSB: Reflective thinking skills Objective: 17-2 103) Games and sweepstakes are both types of contests, only differing by the length of time they run.

Answer: FALSE Diff: 2 Page Ref: 524 Skill: Synthesis AACSB: Reflective thinking skills Objective: 17-2 104) Companies undertake sponsorships to build brand associations and to increase the perceived value of the brand in consumers' minds.

Answer: TRUE Diff: 2 Page Ref: 532 Skill: Synthesis AACSB: Reflective thinking skills Objective: 17-4

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105) Loyalty programs that require membership are popular with marketers because they also generate information for customer databases.

Answer: TRUE Diff: 2 Page Ref: 535 Skill: Synthesis AACSB: Reflective thinking skills Objective: 17-4 106) Discuss five reasons for the growth of sales promotion.

Answer: Students can discuss any five of the following reasons: (1) There is an increased pressure for short term profits, which sales promotions deliver.

(2) Sales promotions are relatively easy to evaluate in terms of their impact on sales. This accountability makes sales promotion more attractive in a time when every marketing communication dollar needs to show its return on investment.

(3) Traditional mass media costs have escalated to the point that alternative media must be considered.

(4) It is relatively easy and quick to determine whether a sales promotion strategy has accomplished its objectives because there is usually an immediate response of some kind.

(5) Sales promotions reduce consumers' risk. From their perspective, sales promotion reduces the risk associated with a purchase by giving them something of added value.

(6) Shoppers are better educated, more selective, and less loyal to brand names than in the past, which means they are more likely to switch brands. Promotions encourage this switching.

(7) Consumers have come to expect constant short-term price reductions, such as coupons, sales, and price promotions.

(8) In most industries, the battle is for market share rather than general product growth. Sales promotion encourages people to switch products, increasing market share.

(9) Sales promotion is often the most effective strategy for increasing the sales of a parity product when the products in the category are largely undifferentiated. When the products are similar, promotions become the tie-breaker in the consumer's decision making.

(10) Dominant retailers such as Walmart demand a variety of promotional incentives before allowing products into their stores.

Diff: 3 Page Ref: 519-520 Skill: Synthesis AACSB: Reflective thinking skills Objective: 17-1

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107) Name and describe the seven common types of consumer promotions.

Answer: The most common types of consumer promotions are: (1) Price Deals –A temporary price reduction or a sale price. There are four common price deals.

A cents-off deal is a reduction in the normal price charged for a good or service announced at the point of sale or through mass or direct advertising. A price-pack deal provides the consumer with something extra through the package itself (e.g., a prize in the cereal box). Bonus packs contain additional amounts of the product free when consumers purchase the standard size at the regular price. Banded packs are more units of a product sold at a lower price than if they were bought at the regular, single-unit price.

(2) Coupons –Provide a discount on the price of a product. The two general types are retailer coupons and manufacturer coupons. Retailer-sponsored coupons can be redeemed only at the specified retail outlet. Manufacturer-sponsored coupons can be redeemed at any outlet distributing the product.

(3) Refunds and Rebates –A marketer's offer to return a certain amount of money to the consumer who purchases the product.

(4) Sampling –Allows the consumer to try the product or service for free.

(5) Contests and Sweepstakes –Create excitement by promising "something for nothing" and offering impressive prizes. Contests require participants to compete for a prize based on some sort of skill or ability. Sweepstakes require only that participants submit their names to be included in a drawing or other chance selection. A game is a type of sweepstakes, but it differs from a one-shot drawing type of sweepstakes because the time frame is longer.

(6) Premiums –Tangible rewards for a particular act, usually purchasing a product or visiting the point-of-purchase. Premiums add value to the product. The two types are direct and mail. Direct premiums award the incentive immediately, at the time of purchase. Direct premiums can be store premiums, in-pack premiums, on-pack premiums, or container premiums. Mail premiums require the customer to take some action before receiving the premium. A self-liquidator premium usually requires that a payment be mailed in along with some proof of purchase before the consumer receives the premium.

(7) Specialties (Specialty Advertising) –Presents the brand's name on something that is given away as a reminder, such as a calendar, pen, or cap.

Diff: 3 Page Ref: 522-524 Skill: Synthesis AACSB: Reflective thinking skills Objective: 17-2

26 .

108) Describe four purposes of consumer promotions.

Answer: Consumer promotions can be used for: (1) Create awareness –Sometimes awareness can be increased when advertising is combined with an appropriate promotion to call attention to the brand name in order to get people to try the product.

(2) Encourage trial –Sales promotion does this by arranging for experiences, such as special events where people can try the product or see it demonstrated. Trial is one of sales promotion's most important objectives; however, the important thing is to get the right people –the targeted audience –involved with the product. Sales promotion has other tools that lead to trial, such as sampling. Another way sales promotion can motivate people to try a new product is to offer a price deal. Coupons may encourage trial, induce brand switching, and reward repeat business.

(3) Maintain or increase market share –Sales promotion is used to convince prospective users to switch from an established competing brand. A price deal can be used to reward loyal users in order to encourage their repeat business. To maintain a brand's presence or increase its market share after it is launched, marketers use promotional tools such as coupons, premiums, special events, and contests and sweepstakes. In addition to serving as a reward for buying a product, premiums can enhance an advertising campaign or brand's image.

(4) Brand reminder –You can change advertising copy to remind customers about the positive experience they had with the product and use sales promotion to reinforce their loyalty with coupons, rebates, and other rewards. Specialty advertising serves as a reminder to reconsider the product. It also builds relationships through items given away as new-year or thank-you gifts.

Diff: 3 Page Ref: 525-526 Skill: Synthesis AACSB: Reflective thinking skills Objective: 17-2

27 .

109) Name and describe the five types of trade promotions.

Answer: The types of trade promotions are: (1) Point-of-Purchase (POP) displays –Manufacturer-designed displays distributed to retailers who use them to call their customers' attention to product promotions.

(2) Retailer (dealer) kits –Materials that support retailers' selling efforts or that help representatives make sales calls on prospective retailing customers. The kits contain supporting information, such as detailed product specifications, how-to display information, and ad slicks.

(3) Trade incentives and deals –A manufacturer may reward a reseller financially for purchase of a certain level of a product or support of a promotion. The retailer promotional efforts can take the form of special displays, extra purchases, superior store locations, or greater local promotion.

In return, retailers can receive special allowances, such as discounts, free goods, gifts, or cash from the manufacturer. The most common types are buying allowances for increasing purchases and advertising allowances, which include deals on cooperative advertising and display allowances.

(4) Contests –Used to motivate resellers. Contests are far more common than sweepstakes, mainly because resellers find it easy to tie contest prizes to the sale of the sponsor's product.

(5) Trade shows and exhibits –A trade show is where companies within the same industry gather to present and sell their merchandise, as well as to demonstrate their products. Exhibits are spaces that are designed to showcase the product.

Diff: 3 Page Ref: 528-529 Skill: Synthesis AACSB: Reflective thinking skills Objective: 17-3

28 .

110) Name and describe the four partnership programs discussed in your text.

Answer: (1) Co-marketing –Manufacturers develop marketing communication programs with their main retail accounts, instead of for them. Co-marketing can strengthen relationships between manufacturers and retailers. Programs are usually based on the lifestyle and purchasing habits of consumers who live in the area of a particular retailer. The partnership means that the advertising and sales promotion build equity for both parties.

(2) Co-branding –Two companies come together to offer a product. Both companies collaborate in the product's design and promotion.

(3) Licensing –Legally protected brand-identity items, such as logos, symbols, and brand characters must be licensed: a legal contract gives another company the right to use the brandidentity element. The company with an established brand "rents" that brand to other companies, allowing them to use its logo on their products and in their advertising and promotional events.

They do this because it makes them money and extends their brand visibility.

(4) Tie-ins (cross promotions) –A tie-in is an effective strategy for marketers using associations between complementary brands to make one plus one equal three. The intention is to spur impulse sales. Ads are designed to tie the two products together, and the sponsoring companies share the cost of the advertising. The reason for success is that brands can leverage similar strengths to achieve a bigger impact in the marketplace.

Diff: 3 Page Ref: 536-537 Skill: Synthesis AACSB: Reflective thinking skills Objective: 17-5 111) Which of the following was the objective for Frontier Airline's Favorite Animal Contest discussed in the chapter's opening vignette?

A) build brand awareness among women who plan family vacations B) increase market share in the national market C) increase the conversion rate of new passengers for Frontier D) develop a strategic alliance with a major carrier E) drive customers to the company website Answer: E Diff: 2 Page Ref: 517 Skill: Application AACSB: Reflective thinking skills Objective: 17-1

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112) Allan has worked in the advertising creative field for many years and is moving into sales promotion creation for his agency's clients. Although he is aware that consumers and the trade are primary target audiences for sales promotion, he just learned that there is another target audience. What is it?

A) government agencies B) local media C) special interest groups D) sales force E) vendors Answer: D Diff: 2 Page Ref: 518 Skill: Application AACSB: Reflective thinking skills Objective: 17-1 113) Which of the following is an example of a sales promotion?

A) a news release encouraging voters to support a new bond issue for a local elementary school B) a staged dance routine promoting a new product in a busy public place C) a coupon for $5 off a visit to an amusement park D) a listing of all the television programs to be shown by Charter Cable the week of March 16 E) a plan to increase ice cream sales by adding two new flavors Answer: C Diff: 2 Page Ref: 518 Skill: Application AACSB: Analytic skills Objective: 17-1 114) Melissa was in the grocery store to purchase lunch food and snacks for her family. She was in the cookie aisle and noticed small neon-colored signs attached to the shelf holding a brand she is interested in. The sign read "Was $3.59, now $2.89!" What type of consumer price deal is this?

A) cents-off deal B) price-pack deal C) bonus pack D) banded pack E) coupon Answer: A Diff: 2 Page Ref: 522 Skill: Application AACSB: Analytic skills Objective: 17-2

30 .

115) Lee was in a drug store to purchase some toiletry items. He picked up his favorite brand of toothpaste and noticed that the package said "30 percent more FREE." He noticed that the price was what he normally pays for that toothpaste. Which type of consumer price deal is this?

A) cents-off deal B) price-pack deal C) bonus pack D) banded pack E) coupon Answer: C Diff: 2 Page Ref: 522 Skill: Application AACSB: Analytic skills Objective: 17-2 116) Sue found a coupon for $2.00 off of Post's Raisin Bran breakfast cereal in her favorite magazine. Which type of coupon is this?

A) manufacturer-sponsored B) retailer-sponsored C) co-op D) instant E) self-liquidator Answer: A Diff: 2 Page Ref: 523 Skill: Application AACSB: Analytic skills Objective: 17-2 117) Kodak wanted to create excitement for its line of digital cameras. The company encouraged consumers to submit pictures electronically in the "Kodak Moments" promotion. Judges selected a grand prize winner to receive a vacation for four to Disney World, with several other lowerlevel winners receiving Kodak products. What type of consumer promotion is this?

A) coupon B) sweepstake C) game D) contest E) premium Answer: D Diff: 2 Page Ref: 524 Skill: Application AACSB: Analytic skills Objective: 17-2

31 .

118) Tropicana Orange Juice had a promotion in which consumers could send in 10 UPC symbols along with $4.95 for shipping and handling and receive a nice Hawaiian shirt in return.

Which type of premium is this?

A) store premium B) in-pack premium C) on-pack premium D) container premium E) self-liquidator premium Answer: E Diff: 2 Page Ref: 523 Skill: Application AACSB: Analytic skills Objective: 17-2 119) When promoting Corn Crunchies, marketers wanted to emphasize a clear benefit of the product through arranging experiences inviting people to use the product. Corn Crunchies' marketers had a(n) ________ objective for the promotion.

A) market share B) price position C) trial D) awareness E) brand reminder Answer: C Diff: 2 Page Ref: 525 Skill: Application AACSB: Analytic skills Objective: 17-2 120) Beverly works at a specialty kitchen store. The manufacturer of a brand of gourmet mustard that is sold through her store pays her $1.00 for every jar she sells to consumers. What is this called?

A) a retailer kit B) a contest C) a spiff D) a loader E) a buying allowance Answer: C Diff: 2 Page Ref: 530 Skill: Application AACSB: Analytic skills Objective: 17-3

32 .

121) A beer manufacturer offered grocery stores an elaborate display to position near store entrances. The display included a picnic table, a gas barbeque, coolers to hold beer, and several lounge chairs. Larger stores even had a jet ski included in the display. For their efforts, the manager of each participating store could keep the items in the display. What type of incentive is this?

A) dealer loader B) bonus C) buying allowance D) retailer kit E) cooperative allowance Answer: A Diff: 2 Page Ref: 530 Skill: Application AACSB: Analytic skills Objective: 17-3 122) Monty Boyd travels frequently on West Coast Airlines for his job as an account manager.

Monty earns points for every mile he flies, and he will soon have enough points to receive a free airline ticket. West Coast Airlines is building a customer relationship with Monty using which of the following?

A) publicity B) ambush marketing C) premium reward D) sweepstakes program E) frequency program Answer: E Diff: 2 Page Ref: 535 Skill: Application AACSB: Analytic skills Objective: 17-4 123) Kerri is working out a sales promotion plan for a client who is launching a new product.

Which of the following would Kerri be LEAST likely to recommended to encourage trial of this new product?

A) sampling B) coupons C) price deals D) sweepstakes E) special events where the consumer can try the product Answer: D Diff: 2 Page Ref: 525 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 17-2

33 .

124) Manufacturers direct more sales promotion dollars toward ________ than to ________.

A) consumers; retailers B) customers; wholesalers C) retailers and wholesalers; consumers D) salespeople; retailers E) retailers; wholesalers Answer: C Diff: 3 Page Ref: 528 Skill: Synthesis AACSB: Reflective thinking skills Objective: 17-3 125) Which of the following questions would be the best one to help a marketer evaluate the return on a sales promotion investment?

A) Did the promotion run too long or too short?

B) Did customers enjoy the events associated with the promotion?

C) Did customers search the promotion's website for additional product information?

D) Did the promotion increase purchases from current customers or attract new customers?

E) Did the distribution of the promotional information match consumer expectations and needs?

Answer: D Diff: 3 Page Ref: 540 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 17-5

34 .

Refer to the passage below to answer the questions that follow.

Everyone knows McDonald's, the worldwide fast food chain. McDonald's has used consumer promotions for years. Restaurants offer a kids' Happy Meal that always includes a toy, and often times the package itself is a promotion, such as pumpkin buckets at Halloween. McDonald's has also used a promotion patterned after the popular Monopoly game, in which everyone wins something small, like a soft drink or french fries, but one participant could win $1 million dollars. The Monopoly promotion usually lasts several months. McDonald's also participates in promotions with movies, such as Star Wars and several Disney movies. Another promotion McDonald's is considering is a program that will give consumers one free Happy Meal for every 10 they purchase.

126) What type of consumer promotion is the toy in the Happy Meal?

A) direct premium B) self-liquidator premium C) sample D) price deal E) game Answer: A Diff: 2 Page Ref: 523 Skill: Application AACSB: Analytic skills Objective: 17-2 127) Maria won $1 million playing Monopoly at McDonald's. What type of consumer promotion is this?

A) direct premium B) self-liquidator premium C) contest D) price deal E) game Answer: E Diff: 2 Page Ref: 524 Skill: Application AACSB: Analytic skills Objective: 17-2

35 .

128) What type of premium is the Happy Meals pumpkin bucket?

A) in-pack premium B) on-pack premium C) container premium D) bonus pack E) self-liquidator premium Answer: C Diff: 2 Page Ref: 523 Skill: Application AACSB: Analytic skills Objective: 17-2 129) The promotion in which customers receive one Happy Meal for every 10 they purchase is best described as a ________.

A) price deal B) premium C) tie-in D) refund E) loyalty program Answer: E Diff: 2 Page Ref: 535 Skill: Application AACSB: Analytic skills Objective: 17-4 130) What type of partnership program does McDonald's enter into when its promotions are related to movies?

A) co-marketing B) co-branding C) specialty D) tie-in E) loyalty program Answer: D Diff: 2 Page Ref: 537 Skill: Application AACSB: Analytic skills Objective: 17-4

36 .

131) Compare and contrast bonus packs and banded packs.

Answer: Both bonus packs and banded packs are types of price deals. Bonus packs contain additional amounts of the product free when consumers purchase the standard size at the regular price. Banded packs are more units of a product sold at a lower price than if they were bought at the regular single-unit price; sometimes the products are physically packaged together, such as bar soap or six-packs of soft drinks.

Diff: 2 Page Ref: 522 Skill: Synthesis AACSB: Reflective thinking skills Objective: 17-2 132) Clinique and other cosmetic counters at department stores frequently have gift-withpurchase promotions in which customers receive a nice cosmetics bag filled with lotions, makeup, and other items such as brushes and mirrors. For really nice gifts, customers have to pay a certain amount, such as $29.99, but they usually get a larger bag and several full-sized products that would cost considerably more if they had purchased them separately. What type of promotion is this, and why is it used?

Answer: This is an example of a premium. A premium is a tangible reward for a particular act, usually purchasing a product or visiting a point-of-purchase. Premiums are a type of incentive that work by adding value to the product, and they are either free or low in price. The two general types of premiums are direct and mail. This is an example of a direct premium.

Diff: 2 Page Ref: 523 Skill: Synthesis AACSB: Reflective thinking skills Objective: 17-2 133) What type of sales promotion would benefit a political candidate the most?

Answer: A political candidate would likely benefit most from using specialty advertising items such as pencils or pens with the candidate's name or T-shirts with the candidate's name and/or photograph.

Diff: 3 Page Ref: 524 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 17-4 134) An advertising agency's client wants to use the Internet for sales promotion programs.

Discuss two types of sales promotions that are appropriate for this medium.

Answer: There are a number of ways advertisers can use the Internet for sales promotion programs, including sampling, sweepstakes and contests, price deals, and coupons. Sampling has been a mainstay of interactive promotions on the Internet. There are also freebie portals that have offers for free goods. Sweepstakes and contests are effective promotional tools for driving people to marketers' Internet sites. Some sites offer price promotions only to online purchasers. Finally, coupons can be delivered via the Internet.

Diff: 2 Page Ref: 524-525 Skill: Synthesis AACSB: Use of information technology Objective: 17-2 37 .

135) You are planning a presentation on why marketers use consumer promotions. What are the reasons you would include in your presentation?

Answer: Marketers use consumer promotions to generate awareness, generate trial of the brand, maintain or increase market share, and to remind consumers about the brand.

Diff: 2 Page Ref: 525-527 Skill: Synthesis AACSB: Reflective thinking skills Objective: 17-2 136) In what types of situations are price deals most likely to be effective?

Answer: Price deals are most likely to be effective when price is an important factor in the purchase decision and when consumers are not brand loyal.

Diff: 2 Page Ref: 527 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 17-2 137) Louis is a food broker who calls on independently owned grocery stores in Louisiana and Mississippi. Part of his job is to assist grocers with product displays. Manufacturers provide information for him in the form of retailer kits. Describe this type of trade promotion.

Answer: Retailer kits (or dealer kits) are materials that support retailers' selling efforts or help representatives make sales calls on prospective retailing customers. These kits are often designed as sales kits. The kits contain supporting information, such as detailed product specifications, how-to display information, and ad slicks print ads that are ready to be sent to the local print media as soon as the retailer or dealer adds identification, location, promotion, price, or other information.

Diff: 2 Page Ref: 528-529 Skill: Synthesis AACSB: Reflective thinking skills Objective: 17-3 138) There has been a shift from a pull promotion strategy to a push promotion strategy over the past few decades. Compare and contrast these two strategies.

Answer: Advertising, consumer promotion, and publicity stories can influence consumers to demand a product; these are all pull strategies because consumers will go to the retailer and ask for the product, which will "pull" the product through the channel. A push strategy pushes the product through the channel by convincing (motivating or rewarding) members of the distribution network to carry the product.

Diff: 2 Page Ref: 530 Skill: Synthesis AACSB: Reflective thinking skills Objective: 17-3

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139) Compare and contrast the trade promotions of bonuses and dealer loaders.

Answer: Both bonuses and dealer loaders are common incentives used with retailers as part of a push strategy. A monetary bonus (push money or spiffs) is paid to a store's salesperson based on the units that salesperson sells over a period of time. A dealer loaders goes to the dealer, or retailer, rather than the salesperson. The dealer receives premiums from the manufacturer for buying a certain amount of a product.

Diff: 3 Page Ref: 530 Skill: Synthesis AACSB: Reflective thinking skills Objective: 17-3 140) Bob watched the Wachovia Golf Classic last weekend on television. Name and describe the type of promotion and explain why companies use this kind of promotion.

Answer: Sponsorships occur when companies support an event, such as a sporting event, concert, or charity, either financially or by donating supplies and services. Event marketing means building a product's marketing program around a sponsored event, such as the Wachovia Golf Classic. Companies undertake sponsorships to build brand associations and to increase the perceived value of the brand among consumers. The events also give sales representatives the opportunity to interact with prospective and current customers in a social environment, which builds the image and reputation of the company as well as supporting lead generation and customer-reward programs.

Diff: 3 Page Ref: 532 Skill: Synthesis AACSB: Reflective thinking skills Objective: 17-4 141) Explain two reasons for the growth in the relationship between sports and advertising.

Answer: There are several reasons for the growth in the relationship between sports and advertising. The media has fractured into ever smaller audiences, so advertisers see sports as a way to break through the clutter of media. Sports leagues and sponsors have organized to make sports an effective tool for marketing. Sponsors have organized to leverage their associations with major leagues and events. Small sports events can hold tremendous value for advertisers.

Diff: 2 Page Ref: 533 Skill: Synthesis AACSB: Reflective thinking skills Objective: 17-4 142) Nike is not a sponsor of the Olympics, but during the last summer Olympics, Nike ran a "Bronze, Silver, and Gold" promotion while the games were occurring. Name and describe this marketing activity.

Answer: Ambush marketing is the term given to promotional stunts used at events, such as the Olympics, by companies that are not official sponsors.

Diff: 2 Page Ref: 534 Skill: Synthesis AACSB: Reflective thinking skills Objective: 17-4 39 .

143) How have loyalty programs become reward programs?

Answer: Loyalty programs, also called continuity or frequency programs, are promotions to increase customer retention. Marketers typically design loyalty programs to keep and reward customers for their continued patronage. Typically the higher the purchase level, the greater the benefits.

Diff: 3 Page Ref: 535 Skill: Synthesis AACSB: Reflective thinking skills Objective: 17-4 144) Gucci allows manufacturers of complementary products to use its brand identity on their products. What is this called, and why does Gucci do this?

Answer: This is called licensing, which is a legal contract giving another company the right to use the brand-identity element. In brand licensing, a company with an established brand (e.g., Gucci) "rents" that brand to other companies, allowing them to use its logo on their products and in their advertising and promotional events. Gucci does this because it makes them money and extends their brand visibility.

Diff: 3 Page Ref: 536 Skill: Synthesis AACSB: Reflective thinking skills Objective: 17-4 145) Stephanie has a Target Visa card. It's a regular Visa card, but when she uses it at a Target store, her child's school receives 1 percent of her purchase. When she uses the card elsewhere, the school receives 0.5 percent of her purchase. In fact, the school has helped sign up people for the cards by sending brochures home with every student, and now the school receives $500— $2,000 every quarter from Target. What types of promotion are represented in this scenario?

Answer: This is a type of partnership program called co-branding, which involves two companies (i.e., Visa and Target) coming together to offer a product. This is also a type of sponsorship, that is, support of a cause (e.g., education) and a type of loyalty program.

Diff: 3 Page Ref: 532-536 Skill: Synthesis AACSB: Reflective thinking skills Objective: 17-4

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146) Your roommate is taking this class with you because he thought it would be a fun course, but he's an engineering major and is having trouble seeing the differences between all these IMC tools. Specifically, he doesn't really see much difference between advertising and sales promotion. Discuss two differences between advertising and sales promotion to help him better understand each tool's strengths and weaknesses.

Answer: Although advertising and promotion both contribute to the effectiveness of a marketing communication plan, they have four differences: (1) Advertising creates a brand image over time; sales promotion creates immediate action.

(2) Advertising relies on emotional appeals; promotion's added value strategies rely on rational appeals, whereas impulse appeals use emotion.

(3) Advertising adds intangible value to the product or service through image; sales promotion adds tangible value to the product or service.

(4) Advertising contributes moderately to short-term profitability; sales promotion contributes greatly to short-term profitability.

Diff: 2 Page Ref: 539 Skill: Synthesis AACSB: Reflective thinking skills Objective: 17-5 Refer to the passage below to answer the questions that follow.

Kraft is known for its cheese products, but the company also manufactures several consumer packaged goods products, such as mayonnaise, salad dressing, barbeque sauce, macaroni and cheese, and other types of food products sold in grocery stores. A large portion of Kraft's marketing communication budget is spent on incentives given to wholesalers and retailers to get the company's products to the consumers.

147) What kind of audience is Kraft targeting with incentives to get its products to consumers in the stores?

Answer: In this case, Kraft is targeting the trade, such as wholesalers and retailers.

Diff: 2 Page Ref: 518 Skill: Application AACSB: Analytic skills Objective: 17-1 148) What are the two primary roles of the type of promotion used by Kraft in this example?

Answer: Kraft is targeting the trade, and the two primary roles for a trade promotion are: (1) Trade Support To stimulate in-store merchandising or other trade support, such as feature pricing, superior store location, or shelf space.

(2) Excitement To create a high level of excitement about the product among those responsible for its sale.

Diff: 3 Page Ref: 529 Skill: Synthesis AACSB: Reflective thinking skills Objective: 17-3

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149) What type of promotion could Kraft provide to retailers to call their customers' attentions to Kraft's products?

Answer: One type of promotion Kraft could provide retailers is a manufacturer-designed display to call customers' attention to product promotions. This is known as point-of-purchase (POP) display.

Diff: 2 Page Ref: 529 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 17-3 150) James was with his mother in the grocery store, and near the cheese section he saw that there was a cardboard display filled with little soccer balls. James saw them, grabbed one, and immediately started dribbling it down the aisles of the store. His mother looked closer at the display and learned that the soccer ball was free with the purchase of two Kraft cheese products that were on the shelf nearby. What type of consumer promotion is this? What kind of trade promotion is this?

Answer: The cardboard structure with the soccer balls is a PoP display. The offer for the soccer ball is an example of a direct premium, a type of consumer promotion.

Diff: 3 Page Ref: 523, 529 Skill: Synthesis AACSB: Reflective thinking skills Objective: 17-4

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Advertising & IMC: Principles and Practice, 9e (Moriarty) Chapter 18 The IMC Umbrella 1) Total communication over the life of a brand is referred to as ________.

A) lifetime customer value B) lifetime customer communication C) the marketing mix D) 360-degree communication E) the integrated marketing campaign Answer: D Diff: 2 Page Ref: 547 Skill: Concept AACSB: Communication abilities Objective: 18-1 2) Reaching wide audiences through mass media, acquiring new customers, establishing brand image and personality, and defining brand position are all objectives for the IMC tool of ________.

A) advertising B) PR C) trade sales promotion D) point of purchase E) packaging Answer: A Diff: 2 Page Ref: 548 Skill: Concept AACSB: Communication abilities Objective: 18-1 3) Increasing immediate sales, attracting attention at decision points, creating interest, stimulating urgency, and encouraging trial and impulse purchasing are all objectives for the IMC tool of ________.

A) direct marketing B) guerilla marketing C) advertising D) point of purchase E) PR Answer: D Diff: 2 Page Ref: 548 Skill: Concept AACSB: Communication abilities Objective: 18-1

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4) The only way to prevent inconsistent messages through departmental silos and to monitor and plan for a diversity of brand communication is through ________.

A) co-marketing B) 360-degree communication C) co-op advertising D) cross-functional management E) mission marketing Answer: D Diff: 1 Page Ref: 548 Skill: Concept AACSB: Communication abilities Objective: 18-1 5) One goal of integration is ________, making all of the marketing communications work together so that the whole is greater than the sum of its parts.

A) localization B) synergy C) adaptation D) development E) standardization Answer: B Diff: 1 Page Ref: 549 Skill: Concept AACSB: Communication abilities Objective: 18-1 6) Which type of advertising accounts for nearly half of all the money spent on advertising?

A) retail advertising B) direct advertising C) nonprofit advertising D) business-to-business advertising E) directory advertising Answer: A Diff: 2 Page Ref: 551 Skill: Concept Objective: 18-2

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7) Retail food and drug chains are increasingly giving more promotional support to their own ________, also called private-label brands.

A) generic brands B) high-end brands C) store brands D) local brands E) national brands Answer: C Diff: 1 Page Ref: 551 Skill: Concept Objective: 18-2 8) ________ is about selling the brand of the retail store and selling individual branded items the store carries.

A) Local advertising B) Retail marketing communication C) Direct marketing communication D) Advertising E) Sales promotion Answer: B Diff: 1 Page Ref: 551 Skill: Concept Objective: 18-2 9) Advertising targeted at consumers who live close to a retail store is known as ________.

A) end-user advertising B) limited advertising C) short-range advertising D) local advertising E) direct advertising Answer: D Diff: 2 Page Ref: 551 Skill: Concept Objective: 18-2 10) What is the primary objective of retail advertising?

A) build store traffic B) build store brand awareness C) deliver sales promotion messages D) establish a store brand that resonates with the local audience E) sell a variety of products and brands by creating consumer understanding of items or services offered Answer: A Diff: 2 Page Ref: 551 Skill: Concept Objective: 18-2 3 .

11) Which of the following is NOT an objective of retail advertising?

A) motivate the retail sales force B) build store brand awareness C) prompt shopping behavior D) cue store brand personality and image E) inform consumers about store products and services Answer: A Diff: 2 Page Ref: 552 Skill: Concept Objective: 18-2 12) The first strategic consideration in retail advertising is ________.

A) image B) behavior C) geography D) psychographics E) cost Answer: C Diff: 2 Page Ref: 552 Skill: Concept AACSB: Communication abilities Objective: 18-2 13) One way local retailers can compensate for their smaller budgets and limited expertise is to take advantage of ________, which involves the national brand reimbursing the retailer for part or all of the advertising expenses.

A) dual advertising B) co-branding C) tie-in advertising D) licensing E) cooperative advertising Answer: E Diff: 1 Page Ref: 552 Skill: Concept Objective: 18-2 14) Co-op funds are also known as ________.

A) ad allowances B) dealer loaders C) tie-ins D) co-expenses E) ad reimbursements Answer: A Diff: 1 Page Ref: 552 Skill: Concept Objective: 18-2 4 .

15) Discounters like Target and Walmart use a(n) ________ strategy that suggests they offer the best quality for that price level.

A) cross-functional B) development C) off-price D) price-value E) less-for-less Answer: D Diff: 1 Page Ref: 553 Skill: Concept Objective: 18-2 16) Of the following, who does NOT create and produce retail advertising?

A) local media B) in-house staff C) ad agencies D) freelancers E) media buyers Answer: E Diff: 2 Page Ref: 554 Skill: Concept AACSB: Communication abilities Objective: 18-2 17) Which of the following statements regarding creation of the retail ad is false?

A) The larger the retail operation, the more likely it is to have an in-house advertising staff.

B) Television spots are created by advertising agencies because most television stations will not provide this service for advertisers.

C) All local media create and produce ads for retailers.

D) Generally, outside agency work is the most costly way to produce retail ads on a regular basis.

E) Because agencies work for many different clients, they cannot always respond as quickly as an in-house agency can.

Answer: B Diff: 3 Page Ref: 554 Skill: Concept AACSB: Communication abilities Objective: 18-2

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18) Time left at the end of a radio or television spot or space left at the bottom of print materials where the local store is mentioned is known as a(n) ________.

A) promotional spot B) dealer tag C) insert D) free tag E) donut Answer: B Diff: 1 Page Ref: 554 Skill: Concept Objective: 18-2 19) Which television production format makes use of the same opening and closing sections, while changing the middle section to focus on different merchandise or local stores?

A) donut format B) split-and-bookend format C) dual-message format D) beginning-middle-end format E) storyline Answer: A Diff: 1 Page Ref: 554 Skill: Concept Objective: 18-2 20) ________ are signs attached to a shelf that let the consumer take away some piece of information or a coupon.

A) Dealer tags B) Specialties C) Banner ads D) Shelf talkers E) Free-standing inserts Answer: D Diff: 1 Page Ref: 554 Skill: Concept Objective: 18-2 21) Local retailers generally prefer ________ over ________.

A) promotional advertising; nonpromotional advertising B) nonpromotional advertising; promotional advertising C) reach; frequency D) frequency; reach E) institutional retail advertising; product retail advertising Answer: C Diff: 2 Page Ref: 554 Skill: Concept AACSB: Communication abilities Objective: 18-2 6 .

22) Which of the following is the advertising medium used most by retailers?

A) newspapers B) magazines C) radio D) outdoor E) direct mail Answer: A Diff: 1 Page Ref: 554 Skill: Concept AACSB: Communication abilities Objective: 18-2 23) Free-distribution newspapers are known as ________.

A) supplements B) co-ops C) vendor support programs D) shoppers E) weeklies Answer: D Diff: 1 Page Ref: 554 Skill: Concept AACSB: Communication abilities Objective: 18-2 24) ________ are advertising inserts furnished by retailers for distribution in newspapers.

A) Preprints B) Shoppers C) Co-ops D) Vendor support programs E) Dealer tags Answer: A Diff: 1 Page Ref: 554 Skill: Concept AACSB: Communication abilities Objective: 18-2

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25) Advertising directed at people who buy or specify products for business use is called ________.

A) retail advertising B) local advertising C) brand advertising D) business-to-business advertising E) industrial advertising Answer: D Diff: 1 Page Ref: 556 Skill: Concept AACSB: Communication abilities Objective: 18-3 26) What is the most common method of communicating with business buyers?

A) advertising B) sales promotion C) personal selling D) public relations E) direct mail Answer: C Diff: 2 Page Ref: 556 Skill: Concept AACSB: Communication abilities Objective: 18-3 27) Which of the following is LEAST likely to be a purchasing objective of business buyers?

A) service B) quality of the good or service C) price D) name recognition E) assurance of supply Answer: D Diff: 2 Page Ref: 556 Skill: Concept Objective: 18-3

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28) Which of the following is a classification system that allows a marketer to determine its customers' business category and then obtain media lists?

A) Business Classification System (BCS) B) North American Industry Classification System (NAICS) C) Business Industrial Classification System (BICS) D) Business-to-Business Identification System (B2BIS) E) Industrial Classification System (ICS) Answer: B Diff: 1 Page Ref: 556 Skill: Concept AACSB: Communication abilities Objective: 18-3 29) Which of the following is NOT a type of business-to-business advertising?

A) industrial advertising B) government advertising C) retail advertising D) agricultural advertising E) trade advertising Answer: C Diff: 2 Page Ref: 556 Skill: Concept AACSB: Communication abilities Objective: 18-3 30) Which type of business-to-business advertising is directed at original equipment manufacturers (OEMs)?

A) industrial advertising B) government advertising C) channel advertising D) agricultural advertising E) profession advertising Answer: A Diff: 2 Page Ref: 557 Skill: Concept AACSB: Communication abilities Objective: 18-3

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31) ________ is used to persuade distribution channel members, such as distributors,wholesalers, dealers, and retailers, to stock the product of the manufacturer.

A) Industrial advertising B) Trade advertising C) Retail advertising D) Profession advertising E) Relationship advertising Answer: B Diff: 1 Page Ref: 557 Skill: Concept AACSB: Communication abilities Objective: 18-3 32) Advertising directed at a group of mostly white-collar workers, such as lawyers, accountants, technology consultants, doctors, teachers, and advertising and marketing specialists, is known as ________.

A) industrial advertising B) government advertising C) trade/channel advertising D) agricultural advertising E) profession advertising Answer: E Diff: 1 Page Ref: 557 Skill: Concept AACSB: Communication abilities Objective: 18-3 33) Which type of business-to-business advertising promotes a variety of products and services that include animal health products, seeds, farm machinery and equipment, and fertilizer?

A) industrial advertising B) retail advertising C) agricultural advertising D) profession advertising E) government advertising Answer: C Diff: 1 Page Ref: 557 Skill: Concept AACSB: Communication abilities Objective: 18-3

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34) Which of the following is NOT a main objective of business-to-business advertising?

A) create awareness B) change attitudes C) create sales leads D) gain consumer acceptance E) encourage repurchase Answer: D Diff: 2 Page Ref: 557 Skill: Concept AACSB: Communication abilities Objective: 18-3 35) Which of the following is NOT a guideline to create effective business-to-business ads?

A) Use visuals sparingly because they detract from the selling message.

B) Make sure the ad selects the strongest benefit and presents it prominently and persuasively.

C) Dramatize the most important benefit, either by showing the product in action or by visualizing the problem and offering your product or service as a solution.

D) Make the offer as clear as possible.

E) Provide contact information.

Answer: A Diff: 2 Page Ref: 557-558 Skill: Concept AACSB: Communication abilities Objective: 18-3 36) Which of the following media would a business-to-business advertiser be LEAST likely to use?

A) general business and trade publications B) directory advertising C) direct marketing D) the Internet E) local television Answer: E Diff: 2 Page Ref: 558 Skill: Concept AACSB: Communication abilities Objective: 18-3

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37) The two classifications of general business and trade publications are ________.

A) profit and nonprofit B) top and bottom C) horizontal and vertical D) internal and external E) government and private sector Answer: C Diff: 2 Page Ref: 558 Skill: Concept AACSB: Communication abilities Objective: 18-3 38) With respect to general business and trade publications, ________ publications are directed to people who hold similar jobs in different companies across different industries.

A) level B) horizontal C) vertical D) internal E) external Answer: B Diff: 1 Page Ref: 558 Skill: Concept AACSB: Communication abilities Objective: 18-3 39) With respect to general business and trade publications, ________ publications are directed to people who hold different positions in a particular industry.

A) multi-level B) horizontal C) vertical D) internal E) external Answer: C Diff: 1 Page Ref: 558 Skill: Concept AACSB: Communication abilities Objective: 18-3

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40) Every state has an industrial ________, such as the New York-based Thomas Register listing industrial companies.

A) clearinghouse B) directory C) market D) media E) website Answer: B Diff: 2 Page Ref: 558 Skill: Concept AACSB: Communication abilities Objective: 18-3 41) Direct mail is a type of ________ that provides business advertisers with sales leads and lays the groundwork for subsequent sales calls.

A) retail marketing B) directory advertising C) horizontal advertising D) B2B direct marketing E) vertical advertising Answer: D Diff: 1 Page Ref: 558 Skill: Concept AACSB: Communication abilities Objective: 18-3 42) Which of the following is NOT a goal of nonprofit organizations?

A) consumer interactivity B) membership C) donations D) advocacy E) sales Answer: A Diff: 2 Page Ref: 559 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 18-4

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43) One activity that almost all nonprofits do is fund-raising, sometimes called ________.

A) exporting B) development C) importing D) mission marketing E) cause marketing Answer: B Diff: 1 Page Ref: 560 Skill: Concept Objective: 18-4 44) A professional specializing in fund-raising is known as a(n) ________.

A) advocate B) capital director C) development officer D) counselor E) public relations specialist Answer: C Diff: 2 Page Ref: 560 Skill: Concept Objective: 18-4 45) What type of campaign is designed to raise a specified amount of money in a set time frame to finance new buildings, equipment purchases, and other programs?

A) promotional campaign B) mission campaign C) social campaign D) corporate campaign E) capital campaign Answer: E Diff: 1 Page Ref: 560 Skill: Concept AACSB: Communication abilities Objective: 18-4 46) ________ refers to the use of marketing programs and marketing communications tools to create awareness of a social need.

A) Integrity marketing B) Global marketing C) External marketing D) Social marketing E) Stakeholder marketing Answer: D Diff: 1 Page Ref: 560 Skill: Concept AACSB: Communication abilities Objective: 18-4 14 .

47) ________ are undertaken by nonprofit organizations as conscious efforts to influence the thoughts or actions of the public.

A) Capital campaigns B) Development campaigns C) Cause marketing campaigns D) Public communication campaigns E) Promotional campaigns Answer: D Diff: 1 Page Ref: 560 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 18-4 48) The biggest and longest-running network of advertising agencies, media, and suppliers that donate their services to create ads and campaigns on behalf of socially important causes is the ________.

A) Advertising Partnership B) Advertising Council C) Council of Better Business Bureaus D) Partnership for America E) Advertising Industry Initiative Answer: B Diff: 2 Page Ref: 560 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 18-4 49) ________ means adopting a good cause and helping in its fund-raising and other communityoriented efforts.

A) Social marketing B) Cause marketing C) Capital marketing D) Nonprofit marketing E) Development marketing Answer: B Diff: 1 Page Ref: 561 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 18-4

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50) A ________ philosophy describes the operations of companies with corporate missions that reflect their desire to do good.

A) non-profit business B) philanthropic C) fund-raising D) cause marketing E) societal marketing Answer: E Diff: 1 Page Ref: 561 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 18-4 51) ________ links a company's mission and core values to a cause that connects with the company's and its customers' interests.

A) Social marketing B) Cause marketing C) Mission marketing D) Nonprofit marketing E) Development marketing Answer: C Diff: 1 Page Ref: 563 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 18-4 52) Which of the following is typically the first stage of international market development?

A) internationalization B) globalization C) exporting D) importing E) localization Answer: C Diff: 2 Page Ref: 564 Skill: Concept AACSB: Dynamics of the global economy Objective: 18-5

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53) A characteristic of globalized companies is that the ________ label often doesn't apply, as shown with companies like Nokia and Motorola that are not U.S. companies but are familiar brands to U.S. consumers.

A) brand B) ownership C) development D) country of origin E) retail Answer: D Diff: 1 Page Ref: 564 Skill: Concept AACSB: Dynamics of the global economy Objective: 18-5 54) Learning, honesty, and self-esteem are ________ that cross cultures.

A) universal values B) regional concepts C) morals D) customs E) standards Answer: A Diff: 2 Page Ref: 564 Skill: Concept AACSB: Multicultural and diversity understanding Objective: 18-5 55) Which of the following is NOT considered a universal value?

A) health and fitness B) learning C) rugged individualism D) freedom E) justice Answer: C Diff: 2 Page Ref: 564-565 Skill: Concept AACSB: Multicultural and diversity understanding Objective: 18-5

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56) Which of the following is NOT an approach to advertising across national borders?

A) standardization B) domestication C) localization D) combination E) adaptation Answer: B Diff: 2 Page Ref: 565 Skill: Concept AACSB: Dynamics of the global economy Objective: 18-5 57) Which school of thought on advertising across national borders contends that differences between countries are a matter of degree, so advertisers must instead focus on the similarities of consumers and a consistent brand presentation?

A) standardization B) domestication C) localization D) combination E) customization Answer: A Diff: 1 Page Ref: 565 Skill: Concept AACSB: Dynamics of the global economy Objective: 18-5 58) Which school of thought on advertising across national borders argues that advertisers must consider differences among countries?

A) standardization B) domestication C) localization D) individualization E) customization Answer: C Diff: 1 Page Ref: 565 Skill: Concept AACSB: Dynamics of the global economy Objective: 18-5

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59) Which of the following are two schools of thought on planning global advertising programs?

A) market-orientation and culture-orientation B) standardization and localization C) short-term and long-term D) high-context and low-context E) structured and unstructured Answer: B Diff: 2 Page Ref: 565 Skill: Concept AACSB: Dynamics of the global economy Objective: 18-5 60) When is it best to use a localization strategy?

A) The company wants an efficient campaign requiring the approval of fewer people.

B) The graphic or visual approaches can be used to overcome cultural differences.

C) The company wants to maintain control over the image projected by all brand communication.

D) The converging buyer wants and needs mean that buyers everywhere will increasingly want the same product.

E) There is little or no competition in many foreign markets.

Answer: A Diff: 3 Page Ref: 566 Skill: Concept AACSB: Dynamics of the global economy Objective: 18-5 61) When is it best to use a standardization strategy?

A) The company wants to decrease the chance of cultural blunders.

B) The company wants to avoid overlooking local variations that affect buyer behavior.

C) The company wants to avoid costs that come with mistargeted ads.

D) The company wants to get local managers and employees more involved and motivated.

E) There is little or no competition in many foreign markets.

Answer: E Diff: 2 Page Ref: 566 Skill: Concept AACSB: Dynamics of the global economy Objective: 18-5

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62) In which type of culture is the meaning of a message best understood when contained within contextual cues?

A) applied-context culture B) basic-context culture C) high-context culture D) low-context culture E) group-based culture Answer: C Diff: 1 Page Ref: 566 Skill: Concept AACSB: Multicultural and diversity understanding Objective: 18-5 63) In which type of culture can the message be understood as it stands, without context?

A) applied-context culture B) basic-context culture C) high-context culture D) low-context culture E) group-based culture Answer: D Diff: 1 Page Ref: 566 Skill: Concept AACSB: Multicultural and diversity understanding Objective: 18-5 64) Which of the following is considered a high-context language?

A) English B) Japanese C) German D) French E) Scandinavian Answer: B Diff: 2 Page Ref: 566 Skill: Concept AACSB: Multicultural and diversity understanding Objective: 18-5

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65) Which of the following is NOT a planning approach for creating global campaigns?

A) local initiative B) centrally conceived campaigns C) variations on central campaigns D) top-down creativity E) bottom-up creativity Answer: D Diff: 2 Page Ref: 566-567 Skill: Concept AACSB: Dynamics of the global economy Objective: 18-5 66) The office that develops the approved campaign is designated the ________ and develops all the necessary elements of the campaign and prepares a standards manual for use in other countries.

A) agency-of-record B) lead agency C) contextual agency D) planning agency E) buying agency Answer: B Diff: 1 Page Ref: 567 Skill: Concept AACSB: Dynamics of the global economy Objective: 18-5 67) Which targeting consideration refers to assessing a country's level of infrastructure, literacy levels, economic level, and level of media availability?

A) cultural cohort B) geographic region C) market development level D) positioning E) standardization Answer: C Diff: 1 Page Ref: 567 Skill: Concept AACSB: Dynamics of the global economy Objective: 18-5

21 .

68) Which of the following statements regarding planning a global advertising strategy is true?

A) The problem of managing brand consistency is largely responsible for limiting most global marketing objectives to awareness and recall.

B) The globalization/localization debate is really about budgeting.

C) It is not advantageous to conduct research in each international market that is entered.

D) Consumer buying motivations are basically the same in every country.

E) The execution of a global campaign is no more complex than executing a national plan.

Answer: A Diff: 2 Page Ref: 567-568 Skill: Concept AACSB: Dynamics of the global economy Objective: 18-5 69) Which of the following is NOT a reason that execution of a global campaign is usually more complex than a national plan?

A) The creative may need to be reshot with local models and settings, as well as language.

B) There may be favoritism toward local companies.

C) Government approval of television commercials can be difficult.

D) Agencies often are not available to assist the advertiser in executing a global campaign.

E) Language is a problem for a campaign dependent on words rather than visuals.

Answer: D Diff: 2 Page Ref: 568 Skill: Concept AACSB: Dynamics of the global economy Objective: 18-5 70) Which of the following is true about international media buying?

A) For the most part, media buying is the same in all countries.

B) There are no adjustments for seasonality.

C) Media buying in other countries are normally handled by global media buying companies rather than local media buying companies.

D) It takes just as long to buy internationally as it does locally.

E) Media is developing and evolving differently in every country.

Answer: E Diff: 2 Page Ref: 569 Skill: Concept AACSB: Dynamics of the global economy Objective: 18-5 71) According to the text, a study by the Association of National Advertisers found in 2008 that only 34 percent of ANA members said they were using IMC for most or all of their brands.

Answer: FALSE Diff: 2 Page Ref: 546 Skill: Concept AACSB: Communication abilities Objective: 18-1 22 .

72) Announcing news, affecting attitudes and opinions, maximizing credibility and believability, generating likability, creating and improving stakeholder relationships, and stimulating buzz are all objectives for the IMC tool of PR. Answer: TRUE Diff: 2 Page Ref: 548 Skill: Concept AACSB: Communication abilities Objective: 18-1 73) Everything communicates is the first principle of IMC. Answer: TRUE Diff: 2 Page Ref: 550 Skill: Concept AACSB: Communication abilities Objective: 18-1 74) The primary objective of retail advertising is to build store traffic.

Answer: TRUE Diff: 1 Page Ref: 551 Skill: Concept Objective: 18-2 75) Manufacturers use retail advertising to get retailers to stock their products.

Answer: FALSE Diff: 2 Page Ref: 552 Skill: Concept AACSB: Communication abilities Objective: 18-2 76) The first strategic consideration in retail advertising is price.

Answer: FALSE Diff: 2 Page Ref: 552 Skill: Concept Objective: 18-2 77) One way local retailers can compensate for their smaller budgets and limited expertise is to take advantage of national tie-ins, in which the national brand reimburses the retailer for part or all of the advertising expenses.

Answer: FALSE Diff: 2 Page Ref: 552 Skill: Concept Objective: 18-2

23 .

78) All local media create and produce ads for retailers free of charge.

Answer: FALSE Diff: 2 Page Ref: 554 Skill: Concept AACSB: Communication abilities Objective: 18-2 79) A dealer tag is the time left at the end of a radio or television spot or space left at the bottom of print materials provided by a manufacturer where the local store is mentioned.

Answer: TRUE Diff: 1 Page Ref: 554 Skill: Concept Objective: 18-2 80) Shoppers are advertising circulars furnished by a retailer for distribution as free-standing inserts in newspapers.

Answer: FALSE Diff: 1 Page Ref: 554 Skill: Concept AACSB: Communication abilities Objective: 18-2 81) Advertising directed at people in businesses who buy or specify products for business use is called direct advertising.

Answer: FALSE Diff: 1 Page Ref: 556 Skill: Concept AACSB: Communication abilities Objective: 18-3 82) Purchasing objectives in business-to-business center on rational, pragmatic considerations such as price, service, quality of the product or service, and assurance of supply.

Answer: TRUE Diff: 2 Page Ref: 556 Skill: Concept Objective: 18-5 83) Types of business markets targeted by business-to-business advertising include industrial, government, trade, professional, and agriculture.

Answer: TRUE Diff: 2 Page Ref: 556 Skill: Concept Objective: 18-3

24 .

84) Industrial advertising is directed at original equipment manufacturers (OEMs) that purchase industrial goods or services that either become a part of the final product or aid business operations.

Answer: TRUE Diff: 1 Page Ref: 557 Skill: Concept Objective: 18-3 85) The largest purchasers of industrial goods in the United States are federal, state, and local governments.

Answer: TRUE Diff: 2 Page Ref: 557 Skill: Concept Objective: 18-3 86) Advertising by attorneys, doctors, or other types of professionals directed to consumers is called professional advertising.

Answer: FALSE Diff: 1 Page Ref: 557 Skill: Concept Objective: 18-3 87) Business-to-business advertising media include general business and trade publications, directory advertising, consumer media, the Internet, and direct marketing.

Answer: TRUE Diff: 2 Page Ref: 558 Skill: Concept AACSB: Communication abilities Objective: 18-3 88) General business and trade publications are classified as either national or regional.

Answer: FALSE Diff: 2 Page Ref: 558 Skill: Concept Objective: 18-3 89) Horizontal trade publications are directed to people who hold similar jobs in different companies across different industries.

Answer: TRUE Diff: 1 Page Ref: 558 Skill: Concept Objective: 18-3

25 .

90) Vertical business publications are targeted toward people who hold different positions in a particular industry.

Answer: TRUE Diff: 1 Page Ref: 558 Skill: Concept Objective: 18-3 91) The Internet is a key medium for business-to-business advertisers.

Answer: TRUE Diff: 2 Page Ref: 558 Skill: Concept AACSB: Use of information technology Objective: 18-3 92) B2B direct marketing provides sales leads and lays the groundwork for subsequent sales calls.

Answer: TRUE Diff: 2 Page Ref: 558 Skill: Concept AACSB: Communication abilities Objective: 18-3 93) Responsible marketing refers to the use of marketing programs and marketing communication tools to create awareness for a social need.

Answer: FALSE Diff: 1 Page Ref: 560 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 18-4 94) Public communication campaigns are undertaken by nonprofit organizations as a conscious effort to influence the thoughts or actions of the public.

Answer: TRUE Diff: 1 Page Ref: 560 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 18-4 95) Cause marketing means adopting a good cause and helping in its fund-raising and other community-oriented efforts.

Answer: TRUE Diff: 1 Page Ref: 561 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 18-4

26 .

96) A societal marketing philosophy describes the operations of companies whose corporate missions reflect their desire to do good.

Answer: TRUE Diff: 2 Page Ref: 561 Skill: Concept AACSB: Ethical understanding and reasoning abilities Objective: 18-4 97) Virtually every product category can be divided into local, national, regional (trading bloc), and international markets and brands.

Answer: TRUE Diff: 2 Page Ref: 564 Skill: Concept AACSB: Dynamics of the global economy Objective: 18-5 98) The stages of international market development include standardization, localization, and a combination of the two.

Answer: FALSE Diff: 2 Page Ref: 565 Skill: Concept AACSB: Dynamics of the global economy Objective: 18-5 99) The localization school of thought in the global versus local debate contends that differences between countries are a matter of degree, so advertisers must instead focus on the similarities of consumers around the world.

Answer: FALSE Diff: 1 Page Ref: 565 Skill: Concept AACSB: Dynamics of the global economy Objective: 18-5 100) The execution of a global campaign is usually no more complex than a national plan.

Answer: FALSE Diff: 2 Page Ref: 568 Skill: Concept AACSB: Dynamics of the global economy Objective: 18-5 101) Like national advertisers, local retailers generally prefer frequency over reach with respect to media strategy.

Answer: FALSE Diff: 2 Page Ref: 554 Skill: Synthesis AACSB: Reflective thinking skills Objective: 18-2 27 .

102) Business-to-business advertising never uses consumer media to deliver ads.

Answer: FALSE Diff: 2 Page Ref: 558 Skill: Application AACSB: Reflective thinking skills Objective: 18-3 103) Nonprofit organizations have a number of goals, one of which is sales.

Answer: TRUE Diff: 3 Page Ref: 559 Skill: Synthesis AACSB: Reflective thinking skills Objective: 18-4 104) The globalization of marketing communication is driven by the development of international media, globalization of brands, and the spread of market-based economies in countries and regions such as China, South America, India, and Eastern Europe.

Answer: TRUE Diff: 2 Page Ref: 563 Skill: Synthesis AACSB: Dynamics of the global economy Objective: 18-5 105) Since the Japanese culture is low-context, a Japanese word can have multiple meanings.

Answer: FALSE Diff: 2 Page Ref: 566 Skill: Synthesis AACSB: Multicultural and diversity understanding Objective: 18-5 106) Name six retail advertising objectives.

Answer: (1) Cue store brand personality and image.

(2) Build store brand awareness.

(3) Create understanding of store products and services.

(4) Convince consumers the products and services meet their needs.

(5) Prompt shopping behavior.

(6) Prompt loyalty, larger purchases, more inventory, etc.

Diff: 3 Page Ref: 552 Skill: Synthesis AACSB: Reflective thinking skills Objective: 18-2

28 .

107) Name and describe the five types of business-to-business advertising.

Answer: The five types of business-to-business advertising are: (1) Industrial advertising –Directed at original equipment manufacturers (OEMs) that purchase industrial goods or services that either become a part of the final product or aid business operations.

(2) Government advertising –Refers to federal, state, and local governments. However, few advertisements are targeted directly to government agencies because these purchases are usually made by bids and contracts, and the decision is made on price.

(3) Trade/channel advertising –Used to persuade distribution channel members, such as resellers, wholesalers, and retailers, to stock the product of the manufacturer. Retailers want information on the profit margins they can expect to receive, the product's major selling points, and what the producer is doing in terms of consumer advertising and other promotional support activities.

(4) Profession advertising –Directed at mostly white-collar workers such as lawyers, accountants, technology consultants, doctors, teachers, funeral directors, and advertising and marketing specialists.

(5) Agricultural advertising –Promotes a variety of products and services, such as animal health products, seeds, farm machinery and equipment, crop dusting, and fertilizer.

Diff: 3 Page Ref: 556-557 Skill: Synthesis AACSB: Reflective thinking skills Objective: 18-3 108) Compare and contrast cause marketing and mission marketing.

Answer: Cause marketing means adopting a good cause and sponsoring its fund-raising and other community-oriented efforts. Sometimes called "sales promotion with a PR spin," cause marketing is described as "doing good things and getting credit for it." Mission marketing links a company's mission and core values to a cause that connects with the company's interests. It is more of a commitment than cause marketing and reflects the long-term brand-building perspective of IMC because the mission becomes the focal point for integrating all the company's marketing communication. It also unites the entire organization and its stakeholders, particularly its employees, through their commitment to the effort. These are two types of socially responsible marketing that are undertaken by both for-profit and nonprofit organizations.

Diff: 3 Page Ref: 561,563 Skill: Synthesis AACSB: Reflective thinking skills Objective: 18-4

29 .

109) Name and describe the three main schools of thought on advertising across national borders.

Answer: The three main schools of thought on advertising in across national borders are: (1) Standardization –Contends that differences between countries are a matter of degree, so advertisers must instead focus on the similarities of consumers around the world. Product category is important: there are enough similarities in certain categories that their advertising can be largely standardized across borders.

(2) Localization (adaptation) –Argues that advertisers must consider differences among countries, including local culture, stage of economic and industrial development, stage of life cycle, media availability, research availability, and legal restrictions.

(3) Combination –Reasons that a combination of standardization and localization may produce the most effective advertising. Some elements of brand identity and strategy, for example, may be standardized, but advertising executions may need to be adapted to the local culture.

Diff: 2 Page Ref: 565 Skill: Synthesis AACSB: Dynamics of the global economy Objective: 18-5 110) What should a business consider about global advertising objectives, targeting issues, and brand positioning?

Answer: The strategic elements for planning a global advertising strategy include: (1) International advertising objectives –The problem of managing brand consistency is largely responsible for limiting most global marketing objectives to awareness and recall two effective yet easily attainable marketing communication measures. More specific objectives may be needed in individual markets.

(2) Targeting issues –The globalization/localization debate is really about targeting. The question is whether people in the target are similar across borders or whether their national and cultural differences are great enough so that, to be effective, the message strategy has to be modified country by country.

(3) Positioning the brand –Research must be conducted to identify the problems and opportunities facing the product in each of the international markets to be entered. The situation analysis portion of the advertising plan develops the information needed for positioning the product in the foreign markets. Particularly important is a good understanding of consumer buying motives in each market, which is almost impossible to develop without locally based consumer research.

Diff: 3 Page Ref: 567-568 Skill: Synthesis AACSB: Reflective thinking skills Objective: 18-5

30 .

111) On Your Side Worldwide is an international advertising company that has several departments working on different aspects of brand communication for their clients. In order to monitor and plan for this diversity of brand communication, the company must have ________ to deliver a consistent message from all department silos.

A) cooperative advertising B) house brands C) standardization D) cross-functional management E) localization Answer: D Diff: 2 Page Ref: 548 Skill: Application AACSB: Analytic skills Objective: 18-1 112) Lolly, Lolly, Lollypop is a candy manufacturer building its brand nationally. In addition to advertising, the company is careful about what it says, how the company performs, and what the response is from consumers. All of this is to promote one consistent message through many different aspects, also known as brand message ________.

A) synergy B) adaptation C) reorganization D) promotion E) cooperation Answer: A Diff: 2 Page Ref: 549 Skill: Application AACSB: Analytic skills Objective: 18-1 113) Toyota, KFC, and Hertz are all which type of retail establishments?

A) locally owned stores B) service providers C) local branches of retail store chains D) dealerships E) franchises Answer: E Diff: 2 Page Ref: 551 Skill: Application AACSB: Analytic skills Objective: 18-2

31 .

114) Ralph worked in an advertising agency in New York City for 10 years, all of it developing brand advertising for national brands. He decided he wanted to move back to his hometown of Jackson, Mississippi and open his own advertising agency, where most of his clients will be local retailers. Which of the following is NOT a difference between national brand advertising and local retail advertising that Ralph needs to know?

A) Local retail promotional strategies focus on retail benefits, such as an unusual or varied selection of merchandise.

B) Newspapers are most often used for local retail advertising.

C) Local retail advertising has an inherent urgency.

D) Unlike national advertisers, local retailers generally prefer frequency over reach.

E) The primary objective of local retail advertising is to build store traffic.

Answer: D Diff: 2 Page Ref: 551-554 Skill: Application AACSB: Reflective thinking skills Objective: 18-2 115) Rene is considering advertising for her gift shop located in Memphis, Tennessee. What is the first concern Rene should consider in targeting consumers?

A) demographics B) geography C) economics D) psychographics E) lifestyles Answer: B Diff: 2 Page Ref: 552 Skill: Application AACSB: Reflective thinking skills Objective: 18-2 116) Dillard's is a regional department store, primarily located in the South. Every Sunday, Dillard's has large ads in the newspaper, but each ad features only one brand. For example, there might be an ad for Clinique cosmetics or one for Easy Spirit shoes. Dillard's sells other brands of these products but features only one in a given ad. The company does this because of the agreement it has with the national brand manufacturer (i.e., Clinique), under which the manufacturer will reimburse Dillard's for the cost of the ad. What is this known as?

A) cooperative advertising B) national/local advertising C) dealer loaders D) ad reimbursements E) tie-ins Answer: A Diff: 2 Page Ref: 552 Skill: Application AACSB: Analytic skills Objective: 18-2 32 .

117) Neiman-Marcus is an upscale department store located in large metropolitan areas throughout the country. The recent television campaign features various runway models wearing the store's clothes with a voiceover at the beginning and end of the ad. The middle of the ad is tailored to feature certain products depending on the city in which the ad is being shown. Which of the following describes this commercial format?

A) dealer tag B) donut C) zone edition D) customization E) standardization Answer: B Diff: 2 Page Ref: 554 Skill: Application AACSB: Analytic skills Objective: 18-3 118) Harriet owns a specialty children's clothing store in Lakeland, Florida. She wants good geographic advertising coverage of her market area, so she will most likely use ________ as an advertising medium, which is the medium that has always made up the bulk of retailers' advertising.

A) television B) magazines C) newspaper D) radio E) outdoor billboards Answer: C Diff: 2 Page Ref: 554 Skill: Application AACSB: Reflective thinking skills Objective: 18-2 119) Laurie loves Sunday mornings because that's the day the newspaper comes with all the shopping ads. She takes one to two hours to leisurely go through the paper, looking at all the ads first, such as those from Best Buy, Lowe's, and JC Penney's. These inserts furnished by the retailers are called ________.

A) shoppers B) blow-ins C) talkers D) preprints E) direct-response advertisements Answer: D Diff: 2 Page Ref: 554 Skill: Application AACSB: Analytic skills Objective: 18-2

33 .

120) Howard Computers is targeting hospitals for its new "Medicart" portable computer cart that allows for tracking of medication dispensing right at the patient's bedside. If Howard wants a list of the publications that purchasing agents in hospitals use in order to know which publications to advertise in, which of the following should Howard use?

A) NAICS codes B) census data C) trade directories D) hospital directories E) RADAR codes Answer: A Diff: 2 Page Ref: 556 Skill: Analytic skills AACSB: Reflective thinking skills Objective: 18-3 121) An ad for the new edition of this advertising textbook was placed in the Journal of Advertising, which is read by professors teaching this subject and practitioners in the advertising industry. What type of business-to-business advertising is this an example of?

A) industrial advertising B) government advertising C) trade advertising D) profession advertising E) channel advertising Answer: D Diff: 2 Page Ref: 557 Skill: Application AACSB: Analytic skills Objective: 18-3 122) A company wants to advertise its product in a trade magazine. The product would be aimed at managers who directly oversee manufacturing in different industries. What type of trade publication does the company want to advertise in?

A) professional publication B) horizontal publication C) vertical publication D) directory publication E) managerial publication Answer: B Diff: 2 Page Ref: 558 Skill: Application AACSB: Analytic skills Objective: 18-3

34 .

123) Several profit-oriented organizations participated in the Great American Bake Sale that was held to raise funds to end child hunger in the United States. Parade magazine and ABC entertainment helped get the word out about this event. For Parade and ABC, this represents what type of social marketing program?

A) mission marketing B) development marketing C) cause marketing D) business-to-business marketing E) promotional marketing Answer: C Diff: 2 Page Ref: 561 Skill: Application AACSB: Analytic skills Objective: 18-4 124) Timberland is a well-known manufacturer of rugged shoes and boots, as well as other outdoor clothing and equipment. Helping others is part of the company's core values, and Timberland allows its employees a full week paid leave of absence to assist in a cause that is important to them. The leave is in addition to the regular paid vacation time employees receive.

What type of social marketing does this commitment to community service by Timberland illustrate?

A) cause marketing B) societal marketing C) capital campaign D) public commitment campaign E) development marketing Answer: B Diff: 3 Page Ref: 561-562 Skill: Application AACSB: Analytic skills Objective: 18-4 125) Dove wanted to do more than just sell its beauty care products. The company was on a quest to discover "real beauty" and help women be happy just the way they are. As a result, the Dove Campaign for Real Beauty was successfully launched in 2004. Dove was practicing which type of marketing?

A) mission B) channel C) value D) public communication E) social Answer: A Diff: 2 Page Ref: 561 Skill: Application AACSB: Analytic skills Objective: 19-4 35 .

126) Kevin has taken over the international operations of his company. He contends that advertisers must consider differences among countries, including local culture, media availability, and legal restrictions. What school of thought does Kevin subscribe to in approaching advertising across national borders?

A) combination B) localization C) standardization D) cooperation E) synergy Answer: B Diff: 2 Page Ref: 565 Skill: Application AACSB: Analytic skills Objective: 18-5 127) The global name for Microsoft's operating system, Vista, turns out to be a disparaging term for a frumpy old woman in Lativa. Microsoft must adjust the name. This is an example of the need for ________ in international advertising campaigns.

A) adaptation B) standardization C) centralization D) decentralization E) bottom-up creativity Answer: A Diff: 3 Page Ref: 570 Skill: Application AACSB: Analytic skills Objective: 18-5

36 .

Refer to the passage below to answer the questions that follow.

Acme, Inc. is a manufacturer of industrial goods, such as ball bearings, filters, and valves.

Acme's target market is manufacturers who purchase these goods to go into the systems that they manufacture for their customers, such as power plants, heating and cooling systems, and ships.

Additionally, even though Acme is not a very large manufacturer and has never sold a product internationally, it intends to go international with a valve for which it recently received a patent and that is superior to any offered anywhere in the world.

128) What type of business-to-business advertising is appropriate for Acme?

A) government advertising B) trade advertising C) profession advertising D) industrial advertising E) agricultural advertising Answer: D Diff: 2 Page Ref: 557 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 18-3 129) What is the first stage in international market development that Acme will most likely pursue to expand into other countries?

A) exporting B) internationalization C) globalization D) regionalization E) centralization Answer: A Diff: 2 Page Ref: 564 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 18-5 130) As Acme plans for global marketing communications, which approach or model is most appropriate for its situation, given the type of products it sells?

A) local initiative B) cultural-orientation approach C) economic maximization approach D) high-context approach E) low-context approach Answer: A Diff: 3 Page Ref: 566 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 18-5 37 .

131) Who did Honda target with its advertising campaign and what did the market want from an SUV, as described in the chapter's opening vignette?

Answer: The target market for Honda was people who wanted cars with space for people and stuff and minimum off-road capabilities. They wanted the ability to drive on dirt and gravel roads and the benefit of not being stuck in town on heavy snow days.

Diff: 2 Page Ref: 545 Skill: Synthesis AACSB: Reflective thinking skills Objective: 18-1 132) What was Honda's Big Idea in its new advertising campaign, as described in the chapter's opening vignette?

Answer: The Big Idea was to challenge the target group to compare the new CR-V to their lifestyle. Their real usage was mostly for daily chores: grocery shopping, driving children to school, and so on, with a light mixture of rural activities. Honda challenged the target group to match the car to specific tasks, chores, and situations.

Diff: 2 Page Ref: 546 Skill: Synthesis AACSB: Reflective thinking skills Objective: 18-1 133) David is planning an IMC campaign and is considering using sponsorship and events. What are the objectives appropriate for these IMC tools?

Answer: The typical objectives for sponsorship and events are to build awareness; create brand experience; create opportunity for participation, interaction, and involvement; create excitement; and stimulate buzz.

Diff: 3 Page Ref: 548 Skill: Synthesis AACSB: Reflective thinking skills Objective: 18-1 134) Nancy has just opened up her own retail store called Candles 'n' Such and is beginning to advertise. What should her missions be in retail advertising?

Answer: Nancy's missions should be selling the brand of her store and selling individual branded items her store carries.

Diff: 2 Page Ref: 551 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 18-2

38 .

135) When Disney releases one of its movies on DVD, print ads and scripts for radio ads are provided to retailers. Retailers are not supposed to alter the ad in any way. Each print ad has a spot on the bottom of the ad where a retailer can add its store information, and each radio script leaves 10 to 20 seconds for retailers to identify themselves. What is this time or space called?

Answer: It's called a dealer tag, which is time left at the end of a radio or television spot or space left at the bottom of print materials, where the local store is mentioned.

Diff: 2 Page Ref: 554 Skill: Application AACSB: Analytic skills Objective: 18-2 136) What was the new direction taken for SPAR's brand in its "Life's Great" campaign, as described in "A Matter of Practice"?

Answer: The brand is being built on a young, modern, and energetic platform, with marketing communication campaigns geared toward communicating this message.

Diff: 2 Page Ref: 555 Skill: Synthesis AACSB: Reflective thinking skills Objective: 18-2 137) An ad for WD-40 appeared in a magazine targeted to hardware store retailers. The ad showed end-of-aisle displays for the product. The copy explained how the use of a WD-40 display produces 40 percent higher sales for the retailer. The ad did not tout the benefits of the product, just what the display will do for the retailer's sales. Included in the ad was a chart of the months when WD-40 ads will appear in consumer magazines as well as the months when promotional allowances are available to retailers. Name and describe this type of advertising.

Answer: This is a type of business-to-business advertising known as trade/channel advertising.

Trade advertising is used to persuade distribution channel members, in this case retailers, to stock the products of the manufacturer. Resellers want information on the profit margins they can expect to receive, the product's major selling points, and what the producer is doing in terms of consumer advertising and other promotional support activities.

Diff: 2 Page Ref: 557 Skill: Synthesis AACSB: Reflective thinking skills Objective: 18-3 138) What was the objective of Yoplait yogurt's "Save Lids to Save Lives" campaign described in "A Principled Practice"? What kind of marketing is this?

Answer: The objective of the campaign was to raise money for the Susan G. Komen Fight for the Cure organization, which is dedicated to fighting against breast cancer worldwide. This was fitting because this brand's primary target market is women. For every pink lid sent in, the brand donated 10 cents, up to $1.5 million. This is a prime example of cause marketing.

Diff: 3 Page Ref: 563 Skill: Synthesis AACSB: Reflective thinking skills Objective: 18-4 39 .

139) Martin is working on a client's global advertising strategy. What are the stages Martin will most likely follow for market development in international markets?

Answer: A national company typically first expands to foreign markets by exporting its products. Then the company begins to internationalize its operations by selling to a group of markets in a region. The company then begins to move to a global perspective with brands sold throughout the world.

Diff: 3 Page Ref: 564 Skill: Synthesis AACSB: Reflective thinking skills Objective: 18-5 140) Marcus is the advertising director of a major international corporation that manufactures skateboard components to sell to skate shops around the world. His philosophy is that teenagers, who are his products' target market, are pretty much the same all over the world, especially teens that are passionate about skateboarding. Name and describe the school of thought that he espouses.

Answer: This is the standardization school of thought, which contends that differences between countries are a matter of degree, so advertisers should instead focus on the similarities of consumers around the world. Product category is important: there are enough similarities in certain categories that advertising can be largely standardized across borders.

Diff: 2 Page Ref: 565 Skill: Synthesis AACSB: Reflective thinking skills Objective: 18-5 141) Mary is the advertising director of a clothing manufacturer that distributes its brand in the United States, Europe, and some Asian markets. She observed that women's preferences in clothes differ considerably in different countries. Explain the school of thought Mary holds.

Answer: The school of thought is localization (adaptation). It argues that advertisers must consider differences among countries, including local culture, stage of economic and industrial development, stage of life cycle, media availability, research availability, and legal restrictions.

Diff: 3 Page Ref: 565 Skill: Synthesis AACSB: Reflective thinking skills Objective: 18-5

40 .

142) There were several tips regarding standardization advertising strategy in the text. List three tips for when to choose a standardized advertising strategy.

Answer: When to use a standardization advertising strategy (students can list any three): (1) Standardization will lead to savings through economies of scale (advertising production, planning, control).

(2) Standardization ensures that advertising messages of a product are complementary and reinforcing.

(3) The company maintains control over the image projected by advertising for the brand.

(4) Global media create opportunities for global marketing.

(5) Converging buyer wants and needs means that buyers everywhere will increasingly want the same products and product benefits.

(6) There is little or no competition in many foreign markets.

(7) Graphic and visual advertising approaches can be used to overcome cultural differences.

Diff: 3 Page Ref: 565-566 Skill: Synthesis AACSB: Reflective thinking skills Objective: 18-5 143) Teresa is a Midwestern girl and an undergraduate student at Michigan State University. She met a Japanese exchange student named Toshi in one of her classes. They talked to each other and a couple of times met at the library to study for exams together. A few days later, Teresa received a letter from Toshi in which he commented how nice and pretty she is and said he wanted to "make memories" with her. Teresa wasn't sure what he meant by that, so she avoided him in case he was implying something intimate, which she wasn't interested in. Explain what you think might be the problem here.

Answer: These two individuals are from different cultures, specifically, low- and high-context cultures. Teresa is from the United States, which is a low-context culture, meaning that a message can be understood as it stands. Toshi, however, is from a high-context culture, which means that the meaning of a message can be understood best when contained within context cues.

Diff: 3 Page Ref: 566 Skill: Synthesis AACSB: Multicultural and diversity understanding Objective: 18-5

41 .

144) Juan works at an advertising agency that has been designated as the lead agency for a client's global advertising effort. Explain what is meant by lead agency and describe its purpose.

Answer: This is a variation on a centrally conceived campaign in which the office that develops the approved campaign is designated the lead agency and develops all the necessary elements of the campaign and prepares a standards manual for use in other countries. This manual would include examples of layouts, examples of broadcast spots, and design standards for all elements.

Because photography, artwork, television production, and color printing are very costly, developing the items in one location and then overlaying new copy or re-recording the voice track in the local language saves money.

Diff: 2 Page Ref: 567 Skill: Synthesis AACSB: Reflective thinking skills Objective: 18-5 145) General Mills is planning on expanding its breakfast cereals to Central and South America.

What should the company consider when setting the budget?

Answer: Many companies use an objective-and-task budgeting approach that uses a separate budget for each foreign market. This technique adds some flexibility to localize campaigns as needed.

Diff: 2 Page Ref: 568-569 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 18-5 146) General Mills is planning on expanding its breakfast cereals to Central and South America.

What should the company consider when executing the international campaign?

Answer: International campaigns are usually more complex than a national plan. The creative may need to be reshot with local models and settings, as well as the local language. Language is always a problem for a campaign that is dependent on words rather than visuals as the primary carrier of meaning. Government approval could also be required for television commercials, and media buying might be more complex.

Diff: 3 Page Ref: 568-569 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 18-5

42 .

Refer to the passage below to answer the questions that follow.

Head Over Heels is a unique children's toy and shoe store. Although it is the only store in town that has a large selection of educational toys, it also features Thomas the Tank Engine and Madeline dolls, clothes, and dollhouses, and all sorts of infant toys. Head Over Heels carries the largest selection of Stride Rite shoes in town, as well. The store advertises all year, but it advertises more heavily around back-to-school time for shoes and the holidays for toys. It receives prepared print ads and radio scripts from manufacturers to use for the store's advertising with enough time or space to include the store's information. When Head Over Heels uses these ads, it gets reimbursed the full media cost by the manufacturers, which really helps in shop's advertising efforts. Another way it gets assistance from manufacturers is by offering them the opportunity to buy space in the multipage ad that the store distributes every year on Thanksgiving, which features several Christmas gift ideas at promotional prices for the famous "day after Thanksgiving" shopping day.

147) Name and describe the relationship between Stride Rite and Head Over Heels when Stride Rite assists with the store's advertising by providing print ads to the retailer and reimbursing them for the newspaper space.

Answer: This is called cooperative (co-op) advertising, in which the national brand reimburses the retailer for part or all of the advertising expenses. Co-op funds are sometimes called ad allowances.

Diff: 2 Page Ref: 552 Skill: Synthesis AACSB: Reflective thinking skills Objective: 18-2 148) Name and describe the program that Head Over Heels uses when it uses a radio spot from Stride Rite with time left at the end.

Answer: The manufacturers provide the ads and allow a dealer tag, which is time left at the end of a radio or television spot or space left at the bottom of print materials, where the store is mentioned.

Diff: 2 Page Ref: 554 Skill: Synthesis AACSB: Reflective thinking skills Objective: 18-2 149) The special holiday ad is prepared by a printer and distributed to consumers inside the local newspaper. Name and describe this type of advertising.

Answer: This type of advertising is called a preprint, which is a free-standing insert furnished by a retailer for distribution in newspapers.

Diff: 2 Page Ref: 554 Skill: Synthesis AACSB: Reflective thinking skills Objective: 18-2

43 .

150) Every year Head Over Heels donates $1 dollar to the local school district for every pair of shoes sold during the back-to-school promotion. Name and describe this activity.

Answer: Cause marketing means adopting a good cause and sponsoring its fund-raising and other community-oriented efforts. It is described as "doing good things and getting credit for it."

Diff: 2 Page Ref: 561 Skill: Synthesis AACSB: Reflective thinking skills Objective: 18-4

44 .

Advertising & IMC: Principles and Practice, 9e (Moriarty) Chapter 19 Evaluation of Effectiveness 1) Which of the following is NOT a category of work that gets evaluated in advertising and marketing communication programs?

A) message execution B) media C) campaign D) other marketing communication areas and their synergistic effect E) media buyers Answer: E Diff: 2 Page Ref: 579 Skill: Concept AACSB: Communication abilities Objective: 19-1 2) According to the text, which of the following is NOT a reason for evaluating the effectiveness of the marketing communication program or campaign?

A) The stakes in making an advertising misstep are high.

B) Evaluation helps advertisers reduce their risks.

C) Evaluation helps advertisers identify best practices.

D) Federal regulation requires campaigns to be analyzed for effectiveness.

E) Advertisers want to learn what works and what doesn't.

Answer: D Diff: 2 Page Ref: 580 Skill: Concept AACSB: Communication abilities Objective: 19-1 3) Evaluation is done through testing, monitoring, and measurement. Testing is used to ________.

A) track performance B) predict results C) evaluate results D) evaluate competitors E) identify target audiences Answer: B Diff: 2 Page Ref: 580 Skill: Concept AACSB: Communication abilities Objective: 19-1

1 .

4) Evaluation is done through testing, monitoring, and measurement. Monitoring ________.

A) tracks performance B) is used to predict results C) evaluates results D) is required by all advertisers E) is completed before the ad runs Answer: A Diff: 2 Page Ref: 580 Skill: Concept AACSB: Communication abilities Objective: 19-1 5) Evaluation is done through testing, monitoring, and measurement. Measurement ________.

A) tracks performance B) is used to predict results C) evaluates results D) is required by all advertisers E) is completed before the ad runs Answer: C Diff: 2 Page Ref: 580 Skill: Concept AACSB: Communication abilities Objective: 19-1 6) Which of the following is NOT a type of research used in evaluation?

A) developmental research B) concurrent research C) post-testing research D) consistency research E) diagnostic research Answer: D Diff: 2 Page Ref: 581 Skill: Concept Objective: 19-1 7) Which type of evaluation research uses pretesting to estimate the likelihood that an ad idea will work or that one idea is better than another?

A) developmental research B) concurrent research C) post-testing research D) consistency research E) diagnostic research Answer: A Diff: 2 Page Ref: 581 Skill: Concept AACSB: Communication abilities Objective: 19-1 2 .

8) Which type of evaluation research uses tracking studies and test marketing to monitor the way the campaign is unfolding and how the messages and media are working?

A) developmental research B) concurrent research C) post-testing research D) consistency research E) diagnostic research Answer: B Diff: 2 Page Ref: 581 Skill: Concept AACSB: Communication abilities Objective: 19-1 9) Which type of research evaluates the impact after the campaign is over or after the ad has run?

A) developmental research B) concurrent research C) post-testing research D) consistency research E) diagnostic research Answer: C Diff: 2 Page Ref: 581 Skill: Concept AACSB: Communication abilities Objective: 19-1 10) Which type of research deconstructs an ad to see what elements are working or not working?

A) developmental research B) concurrent research C) post-testing research D) consistency research E) diagnostic research Answer: E Diff: 2 Page Ref: 581 Skill: Concept AACSB: Communication abilities Objective: 19-1

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11) Which of the following statements regarding the evaluation of advertising is false?

A) Good evaluation plans, and the objectives found in them, are based on a model of return on investment for an advertisement.

B) There are factors other than the advertising that affect sales, and that makes it hard to isolate advertising in order to determine its impact.

C) Advertising effects tend to be delayed, so it's difficult to link the advertising seen at one time to a purchase made days or weeks later.

D) Evaluation objectives are based on a model of human response to an advertisement that identifies key effects.

E) Usually advertising is measured in terms of its communication effects, or the mental responses to a message.

Answer: A Diff: 3 Page Ref: 581 Skill: Concept AACSB: Communication abilities Objective: 19-1 12) ________ is a general term that describes various kinds of research used at different stages in the advertising development process - before, during, and after an ad or campaign has run.

A) Copytesting B) Ad monitoring C) Concept testing D) Tracking E) Ad evaluation Answer: A Diff: 1 Page Ref: 582 Skill: Concept Objective: 19-2 13) Which of the following could be a research question assessing an ad's effectiveness in enhancing consumers' perceptions of the brand?

A) What brand do you prefer?

B) Do you want to try or buy this product/brand?

C) Have you seen this ad/this campaign?

D) What emotions did the ad stimulate?

E) What brand is being advertised in this ad?

Answer: C Diff: 3 Page Ref: 583 Skill: Concept AACSB: Communication abilities Objective: 19-2

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14) Which of the following is NOT a research question assessing an ad's effectiveness in influencing consumers' cognition?

A) What did you like or dislike in the ad?

B) Did the ad engage your interest or curiosity?

C) Did you read/watch most of it? How much?

D) Do you have a need for this brand or can it fulfill a need for you?

E) What's the difference between Brand X and Y? Answer: A Diff: 3 Page Ref: 583 Skill: Concept AACSB: Communication abilities Objective: 19-2 15) Which of the following allows the advertiser to tell whether a particular advertisement is above or below the average score for the brand or its product category?

A) industry ratios B) averages C) norms D) confidence intervals E) industry standards Answer: C Diff: 1 Page Ref: 584 Skill: Concept AACSB: Communication abilities Objective: 19-2 16) Which of the following companies does NOT provide copytesting services?

A) Ameritest B) COMSCORE ARSgroup C) RoperASW D) Mapes & Ross E) A.C. Nielsen Answer: E Diff: 2 Page Ref: 584 Skill: Concept Objective: 19-2

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17) Which of the following compares the effectiveness of various message strategies and their creative ideas?

A) copy testing B) concept testing C) pretesting D) diagnostics E) post-testing Answer: B Diff: 1 Page Ref: 584 Skill: Concept AACSB: Communication abilities Objective: 19-2 18) An artist's drawing of the visual idea with a sentence underneath that captures the essence of the idea is called a(n) ________.

A) storyboard B) photoboard C) animatic D) key concept card E) snap shot Answer: D Diff: 2 Page Ref: 584 Skill: Concept AACSB: Communication abilities Objective: 19-2 19) ________ helps marketers to make final go/no-go decisions about finished or nearly finished ads by assessing the strength of the finished message and predicting how well it will perform.

A) Pretesting B) Tracking C) Diagnostic testing D) Moment-by-moment testing E) Wave analysis Answer: A Diff: 1 Page Ref: 584-585 Skill: Concept AACSB: Communication abilities Objective: 19-2

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20) Still photos arranged as a storyboard used in pretesting a television commercial are known as ________.

A) photoboards B) animatics C) test shots D) answer prints E) picture sorts Answer: A Diff: 1 Page Ref: 585 Skill: Concept Objective: 19-2 21) Drawings or still photos shot on videotape synchronized with a rough version of the audio track are called ________.

A) photoboards B) storyboards C) animatics D) test shots E) answer prints Answer: C Diff: 1 Page Ref: 585 Skill: Concept Objective: 19-2 22) Which type of test provides an analysis of the impact of the internal logic of a commercial?

A) moment-by-moment tests B) frame-by-frame tests C) theater testing D) coincidental tests E) tracking tests Answer: A Diff: 1 Page Ref: 585 Skill: Concept AACSB: Communication abilities Objective: 19-2 23) A group of commercials that includes the test commercial, competitors' commercials, and other ads as well is called a(n) ________.

A) animatic B) commercial sort C) picture sort D) clutter reel E) key concept reel Answer: D Diff: 1 Page Ref: 585 Skill: Concept Objective: 19-2 7 .

24) In the ________ method, viewers receive a deck of key frames from the commercial and sort them into images they remember seeing and ones they don't. They then sort the images they remembered into five categories, from strong positive to strong negative.

A) picture sort B) key concept reel C) clutter reel D) photoboard E) animatic Answer: A Diff: 1 Page Ref: 585 Skill: Concept Objective: 19-2 25) Which type of testing takes place while the advertising is actually running?

A) diagnostic B) concept testing C) moment-by-moment tests D) optimization testing E) concurrent testing Answer: E Diff: 1 Page Ref: 585 Skill: Concept Objective: 19-2 26) A technique most often used with broadcast media in which random calls are made to individuals in the target market is known as a(n) ________.

A) picture sort B) coincidental survey C) wave analysis D) pantry check E) inquiry test Answer: B Diff: 1 Page Ref: 585 Skill: Concept AACSB: Communication abilities Objective: 19-2

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27) A favorable or unfavorable disposition toward a person, thing, idea, or situation is known as a(n) ________.

A) viewpoint B) behavior C) cognition D) attitude E) intention Answer: D Diff: 2 Page Ref: 585 Skill: Concept Objective: 19-2 28) A(n) ________ involves researchers surveying individuals who were exposed to the ad, asking questions about the spokesperson, the tone of the ad, its wording, and so forth.

A) pantry check B) concept test C) diagnostic test D) attitude test E) tracking study Answer: D Diff: 2 Page Ref: 585 Skill: Concept AACSB: Communication abilities Objective: 19-2 29) Studies that periodically measure top-of-mind brand awareness are called ________.

A) diagnostic tests B) concept tests C) tracking studies D) test market studies E) inquiry tests Answer: C Diff: 1 Page Ref: 585 Skill: Concept Objective: 19-2 30) What do tracking studies show?

A) performance of a marketer's brand over time B) attitude toward the advertisement C) return on investment for the campaign D) past performance of a brand E) inquiries from an advertisement Answer: A Diff: 2 Page Ref: 587 Skill: Concept Objective: 19-2 9 .

31) ________ is the number of customers who purchase the brand relative to the total population in the market.

A) Unaided recall B) Payout C) Wave analysis D) Brand penetration E) Conversion rate Answer: D Diff: 1 Page Ref: 587 Skill: Concept Objective: 19-2 32) Which of the following is NOT a method used by account planners to collect tracking data?

A) attitude tests B) wave analysis C) recognition tests D) pantry tests E) consumer diaries Answer: C Diff: 2 Page Ref: 587 Skill: Concept AACSB: Communication abilities Objective: 19-2 33) ________ looks at a series of interviews during a campaign.

A) Attitude testing B) Wave analysis C) Consumer diary analysis D) Pantry checking E) Test marketing Answer: B Diff: 1 Page Ref: 587 Skill: Concept Objective: 19-2 34) With which method of collecting tracking data are consumers asked to record activities such as brands purchased, brands used for various activities, brand switches, media usage, exposure to competitive promotion, and the use of coupons?

A) pantry checks B) test marketing C) consumer diaries D) wave analysis E) scanner data Answer: C Diff: 2 Page Ref: 587-588 Skill: Concept Objective: 19-2 10 .

35) Using which method of collecting tracking data does a researcher go to consumers' homes in the target market and ask what brands or products they have purchased or used recently, and in some cases, count the products or brands currently stocked by the consumer?

A) wave analysis B) consumer diaries C) pantry checks D) test marketing E) coincidental surveys Answer: C Diff: 1 Page Ref: 588 Skill: Concept AACSB: Communication abilities Objective: 19-2 36) Which of the following is conducted in two or more markets, with the same number of similar markets serving as controls while the others are the test?

A) wave analysis B) test market C) moment-by-moment tests D) city-by-city tests E) field tests Answer: B Diff: 1 Page Ref: 588 Skill: Concept Objective: 19-2 37) Which type of research occurs after the ad has been used to determine if it met its objectives?

A) after-only test B) strategic research C) concept testing D) post-testing E) completion testing Answer: D Diff: 2 Page Ref: 588 Skill: Concept AACSB: Communication abilities Objective: 19-2

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38) Eye-tracking research is a mechanical technique that traces ________ eye movement, the path the eye takes in scanning an ad.

A) sporadic B) cognitive C) saccadic D) heuristic E) intentional Answer: C Diff: 1 Page Ref: 588-589 Skill: Concept AACSB: Communication abilities Objective: 19-2 39) One way to measure memory is to show an advertisement to people and ask them whether they remember having seen it before. This is known as a(n) ________ test.

A) aided recall B) recognition C) persuasion D) likability E) attitude Answer: B Diff: 1 Page Ref: 589 Skill: Concept AACSB: Communication abilities Objective: 19-2 40) A type of memory test in which respondents are asked to report what they remember from the ad about the brand is known as a(n) ________ test.

A) recall B) recognition C) persuasion D) likability E) attitude Answer: A Diff: 1 Page Ref: 589 Skill: Concept AACSB: Communication abilities Objective: 19-2

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41) A researcher asks a consumer who watched a particular television program whether she remembers any commercials for a certain type of product, without using a brand name. What type of question is this?

A) unaided recall B) aided recall C) recognition D) prompted recall E) open-ended Answer: A Diff: 2 Page Ref: 589 Skill: Concept AACSB: Communication abilities Objective: 19-2 42) A researcher asks a consumer who watched a particular television program whether she remembers any commercials for a certain brand-name product. What type of question is this?

A) unaided recall B) aided recall C) recognition D) unprompted recall E) open-ended Answer: B Diff: 2 Page Ref: 589 Skill: Concept AACSB: Communication abilities Objective: 19-2 43) Questions that try to evaluate ________ investigate factors such as personally relevant, important to me, stimulate interest or curiosity, create warm feelings, enjoyable, entertaining, and fun.

A) memory B) persuasion C) likability D) inquiry E) intention Answer: C Diff: 2 Page Ref: 590 Skill: Concept AACSB: Communication abilities Objective: 19-2

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44) A test to assess attitude change is known as a(n) ________.

A) unaided recall test B) aided recall test C) recognition test D) persuasion test E) likability test Answer: D Diff: 1 Page Ref: 590 Skill: Concept Objective: 19-2 45) Which type of evaluative test asks consumers how likely they are to buy a specific brand, then exposes them to an advertisement for that brand, usually as part of a collection of brands, and then asks them again what they intend to purchase?

A) persuasion test B) inquiry test C) single-source research D) memory test E) concept test Answer: A Diff: 2 Page Ref: 590 Skill: Concept AACSB: Communication abilities Objective: 19-2 46) ________ measure the number of responses to an advertisement.

A) Memory tests B) Persuasion tests C) Likability tests D) Inquiry tests E) Single-source tests Answer: D Diff: 1 Page Ref: 590 Skill: Concept Objective: 19-2 47) Which of the following is the primary measurement tool for assessing the effectiveness of direct-response communication?

A) memory tests B) persuasion tests C) likability tests D) inquiry tests E) single-source tests Answer: D Diff: 2 Page Ref: 590 Skill: Concept Objective: 19-2 14 .

48) In which type of evaluative research are consumers asked to join a panel and allow their actual purchases to be tracked?

A) memory tests B) persuasion tests C) likability tests D) inquiry tests E) scanner research Answer: E Diff: 2 Page Ref: 591 Skill: Concept AACSB: Communication abilities Objective: 19-2 49) Which type of evaluative research involves arranging to have test commercials delivered to a select group of households within a market, and then comparing the purchase behavior of the select group to that of a control group of households?

A) scanner research B) persuasion tests C) likability tests D) inquiry tests E) single-source research Answer: E Diff: 2 Page Ref: 591 Skill: Concept AACSB: Communication abilities Objective: 19-2 50) Which of the following is a service that measures audiences for print media?

A) RADAR B) Ameritest C) Mediamark (MRI+) D) Arbitron E) A.C. Nielsen Answer: C Diff: 2 Page Ref: 592 Skill: Concept Objective: 19-3

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51) The costs of creating and running the advertisement versus the revenue it generates is known as ________.

A) reach B) frequency C) gross rating point D) advertising ROI E) optimization Answer: D Diff: 1 Page Ref: 593 Skill: Concept Objective: 19-3 52) Another way to look at advertising ROI is the ________.

A) cost-to-sales ratio B) reach-to-frequency ratio C) GRP ratio D) CPM ratio E) RPM ratio Answer: A Diff: 2 Page Ref: 593 Skill: Concept Objective: 19-3 53) The point at which the advertising, because it has been seen multiple times, no longer stimulates much of a response is called ________.

A) burnout B) wearout C) hiatus D) decay point E) point of diminishing return Answer: B Diff: 1 Page Ref: 593 Skill: Concept AACSB: Communication abilities Objective: 19-3

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54) The point at which recall stabilizes or declines and irritation levels increase because people are tired of hearing or seeing the same ad replayed is known as ________.

A) burnout B) wearout C) hiatus D) decay point E) point of diminishing return Answer: B Diff: 2 Page Ref: 593 Skill: Concept AACSB: Communication abilities Objective: 19-3 55) The more intrusive or the less interesting the creative technique, the higher the level of ________.

A) persuasion B) recall C) likability D) irritation E) sales Answer: D Diff: 2 Page Ref: 593 Skill: Concept AACSB: Communication abilities Objective: 19-3 56) What is the biggest challenge in media planning?

A) developing impact B) timing C) efficiency D) availability E) targetability Answer: C Diff: 2 Page Ref: 593 Skill: Concept Objective: 19-3

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57) Media planners operate with computer models of ________ that are used in decisions about media selection, scheduling, and weights (amount of budget).

A) animatics B) media efficiency C) heuristics D) media optimization E) wave analysis Answer: D Diff: 2 Page Ref: 593 Skill: Concept Objective: 19-3 58) The goal of media optimization is always to ________.

A) optimize the budget B) optimize reach C) optimize frequency D) optimize GRPs E) optimize effectiveness Answer: A Diff: 2 Page Ref: 593 Skill: Concept AACSB: Communication abilities Objective: 19-3 59) A ________ will assess the campaign's performance in terms of its message and media objectives.

A) concept test B) persuasion test C) campaign evaluation D) diagnostic evaluation E) media optimization test Answer: C Diff: 2 Page Ref: 594 Skill: Concept AACSB: Communication abilities Objective: 19-4

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60) ________ drives a transaction or generates immediate behavioral response, which makes it easily measurable.

A) Interactivity B) Sales promotion C) Retail advertising D) Media optimization E) Direct-response communication Answer: E Diff: 2 Page Ref: 594-595 Skill: Concept AACSB: Communication abilities Objective: 19-4 61) The efficiency of a direct-reponse offer is measured in terms of ________.

A) return on investment (ROI) B) cost-per-lead C) responses per thousand (RPM) D) pay-per-click (PPC) E) intent-to-buy Answer: C Diff: 2 Page Ref: 595 Skill: Concept AACSB: Communication abilities Objective: 19-4 62) Which of the following is the most common measure used to evaluate the effectiveness of sales promotion?

A) sales B) response rates C) awareness D) redemption rates E) response per thousand Answer: A Diff: 2 Page Ref: 596 Skill: Concept AACSB: Communication abilities Objective: 19-4

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63) For evaluating sales promotion, ________ is the second most popular evaluation measure.

A) sales B) response rate C) redemption rate D) awareness E) conviction Answer: B Diff: 2 Page Ref: 596 Skill: Concept AACSB: Communication abilities Objective: 19-4 64) A comparison of the costs of promotion to the forecasted sales generated by the promotion is called a ________.

A) cost per thousand B) payout analysis C) response count D) response per thousand E) redemption assessment Answer: B Diff: 1 Page Ref: 596 Skill: Concept AACSB: Communication abilities Objective: 19-4 65) Which type of payout plan seeks to determine the point at which the total cost of the promotion exceeds the total revenues?

A) inflection point B) crossover point C) point of no return D) break-even analysis E) optimization point Answer: D Diff: 1 Page Ref: 596 Skill: Concept AACSB: Communication abilities Objective: 19-4

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66) Which of the following public relations outputs measures coverage?

A) number of PR products, such as news releases or brochures, generated B) number of media outlets receiving PR products C) number and size of clips, column inches, seconds, or minutes of time or space D) media placements multiplied by circulation or broadcast reach E) equivalent ad costs for time or space Answer: C Diff: 2 Page Ref: 596 Skill: Concept AACSB: Communication abilities Objective: 19-4 67) Some online advertising uses a ________ metric that records how well the click-through generates prospects.

A) pay-per-click (PPC) B) cost-per-lead C) click-through rate D) conversion rate E) page view Answer: B Diff: 1 Page Ref: 597 Skill: Concept AACSB: Use of information technology Objective: 19-4 68) The most important metric for Internet advertising is ________, which is the percentage of visitors to a site who complete a desired action.

A) click-through rates B) page views C) cost-per-lead D) pay-per-click (PPC) E) conversion rate Answer: E Diff: 1 Page Ref: 597 Skill: Concept AACSB: Use of information technology Objective: 19-4

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69) In business-to-business advertising, the number of leads that turn into customers who make a purchase is called ________.

A) conversion B) recruitment C) turnover D) attrition E) advocacy Answer: A Diff: 1 Page Ref: 597 Skill: Concept Objective: 19-4 70) The problem with evaluating campaigns, particularly IMC campaigns, is estimating the impact of ________ since it's difficult to prove that multichannel communication with messages that reinforce and build on one another has more impact than single messages from a single source.

A) efficiency B) conversion C) synergy D) advocacy E) brand penetration Answer: C Diff: 2 Page Ref: 599 Skill: Concept AACSB: Communication abilities Objective: 19-4 71) The categories of work that get evaluated in advertising and marketing communication programs are the message execution, the media, the campaign, and the other marketing communication areas and their synergistic effect as part of an IMC program.

Answer: TRUE Diff: 2 Page Ref: 579 Skill: Concept AACSB: Communication abilities Objective: 19-1 72) The four types of research used in advertising evaluation are developmental research, concurrent research, consumer research, and psychological research.

Answer: FALSE Diff: 2 Page Ref: 581 Skill: Concept Objective: 19-1

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73) Good evaluation plans are based on a model of human response to an advertisement.

Answer: TRUE Diff: 2 Page Ref: 581 Skill: Concept AACSB: Communication abilities Objective: 19-1 74) Copytesting is a general term that describes various kinds of research used at different stages in the advertising process before, during, and after an ad or campaign has run.

Answer: TRUE Diff: 2 Page Ref: 582 Skill: Concept AACSB: Communication abilities Objective: 19-2 75) Standards allow the advertiser to tell whether a particular advertisement is above or below the average score for the brand or its product category.

Answer: FALSE Diff: 2 Page Ref: 584 Skill: Concept Objective: 19-2 76) Idea testing compares the effectiveness of various creative ideas.

Answer: FALSE Diff: 2 Page Ref: 584 Skill: Concept AACSB: Communication abilities Objective: 19-2 77) Moment-by-moment tests are used to assess eye movement among respondents exposed to a print ad.

Answer: FALSE Diff: 2 Page Ref: 585 Skill: Concept AACSB: Communication abilities Objective: 19-2 78) The coincidental survey technique is most often used with broadcast media and is conducted by randomly calling respondents in the target market to gain insight on whether the target audience is getting the message and, if so, what information or meaning the audience members receive.

Answer: TRUE Diff: 1 Page Ref: 585 Skill: Concept AACSB: Communication abilities Objective: 19-2 23 .

79) Tracking studies evaluate copy and media against changes in attitudes.

Answer: FALSE Diff: 2 Page Ref: 585 Skill: Concept AACSB: Communication abilities Objective: 19-2 80) Studies that periodically measure top-of-mind brand awareness are tracking studies.

Answer: TRUE Diff: 1 Page Ref: 585 Skill: Concept AACSB: Communication abilities Objective: 19-2 81) Account managers use several methods to collect tracking data, such as attitude tests, wave analysis, consumer diaries, pantry checks, and single-source tracking.

Answer: FALSE Diff: 3 Page Ref: 587 Skill: Concept AACSB: Communication abilities Objective: 19-2 82) One method for collecting tracking data is to ask consumers to record in a diary activities such as brands purchased, brands used for various activities, brand switches, media usage, exposure to competitive promotions, and use of coupons.

Answer: TRUE Diff: 1 Page Ref: 587-588 Skill: Concept AACSB: Communication abilities Objective: 19-2 83) One method for collecting tracking data is called a recognition check, in which a researcher goes to homes in the target market and asks what brands or products the family has purchased or used recently, sometimes counting the products or brands currently stocked by the consumer.

Answer: FALSE Diff: 2 Page Ref: 588 Skill: Concept AACSB: Communication abilities Objective: 19-2 84) One way to measure memory is to show the advertisement to people and ask them whether they remember having seen it before; this is known as a recall test.

Answer: FALSE Diff: 2 Page Ref: 589 Skill: Concept AACSB: Communication abilities Objective: 19-2 24 .

85) According to a study by the Advertising Research Foundation (ARF), likability tests were better able to predict sales impact than awareness, recall, communication, or persuasion measures.

Answer: TRUE Diff: 2 Page Ref: 590 Skill: Concept AACSB: Communication abilities Objective: 19-2 86) A form of action response, inquiry tests measure the number of responses to an advertisement and are the primary measurement tool for direct-response communication.

Answer: TRUE Diff: 2 Page Ref: 590 Skill: Concept AACSB: Communication abilities Objective: 19-2 87) Single-source research is allowing researchers to come closer to showing a causal relationship between advertising and sales.

Answer: TRUE Diff: 2 Page Ref: 591 Skill: Concept AACSB: Communication abilities Objective: 19-2 88) Media-planning oversight is usually handled by the account planner, but it can also be contracted by the advertiser to independent companies who specialize in conducting media audits of the agency's media-planning and -buying operations.

Answer: FALSE Diff: 3 Page Ref: 592 Skill: Concept AACSB: Communication abilities Objective: 19-3 89) Another way to look at advertising return on investment (ROI) is to use the cost-to-sales ratio.

Answer: TRUE Diff: 2 Page Ref: 593 Skill: Concept AACSB: Communication abilities Objective: 19-3

25 .

90) The point at which the advertising gets tired and there is no response or less response than at the launch is called the hiatus point.

Answer: FALSE Diff: 2 Page Ref: 593 Skill: Concept AACSB: Communication abilities Objective: 19-3 91) The biggest challenge in media planning is timing.

Answer: FALSE Diff: 2 Page Ref: 593 Skill: Concept AACSB: Communication abilities Objective: 19-3 92) Advertising is particularly effective in accomplishing exposure, awareness, and brand image, as well as delivering brand reminders.

Answer: TRUE Diff: 2 Page Ref: 594 Skill: Concept AACSB: Communication abilities Objective: 19-4 93) Direct-response communication is meant to drive a transaction or generate some other type of immediate behavioral response, and this is easily measurable.

Answer: TRUE Diff: 2 Page Ref: 594-595 Skill: Concept AACSB: Communication abilities Objective: 19-4 94) The evaluation of public relations examines the success of the program in getting the message out to the target audience in terms of output and outcomes, as well as public opinion and relationship tracking.

Answer: TRUE Diff: 2 Page Ref: 596 Skill: Concept AACSB: Communication abilities Objective: 19-4 95) In public relations evaluation, tracking studies help us determine the favorability of the coverage, share of voice, and competitor coverage.

Answer: FALSE Diff: 2 Page Ref: 596 Skill: Concept AACSB: Communication abilities Objective: 19-4 26 .

96) Research methods and analytical techniques are available to demonstrate ROI for public relations activities.

Answer: FALSE Diff: 2 Page Ref: 596 Skill: Concept AACSB: Communication abilities Objective: 19-4 97) Direct-response communication is measured in terms of cost-per-lead.

Answer: FALSE Diff: 1 Page Ref: 597 Skill: Concept AACSB: Communication abilities Objective: 19-4 98) With respect to retail advertising, the results of traffic-building promotions and advertising are simple counts of transactions as well as the change in sales volume of brands receiving promotional support.

Answer: TRUE Diff: 2 Page Ref: 597 Skill: Concept AACSB: Communication abilities Objective: 19-4 99) A common objective of business-to-business advertising is called conversion, which refers to the number of leads that turn into customers who make a purchase.

Answer: TRUE Diff: 2 Page Ref: 597 Skill: Concept AACSB: Communication abilities Objective: 19-4 100) Currently, there are no standard and widely accepted guidelines for communication evaluation for the nonprofit sector.

Answer: FALSE Diff: 1 Page Ref: 598 Skill: IMC Evaluation AACSB: Communication abilities Objective: 19-4 101) Even though advertising is complex, most practitioners believe that advertising effects can be reduced to a single score.

Answer: FALSE Diff: 2 Page Ref: 584 Skill: Application AACSB: Reflective thinking skills Objective: 19-2 27 .

102) One problem with test marketing for collecting tracking data is that the possibilities for isolating variables in test markets are very limited.

Answer: FALSE Diff: 2 Page Ref: 588 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 19-2 103) "Do you remember seeing a commercial for wireless communication?" is an example of an aided recall question.

Answer: FALSE Diff: 2 Page Ref: 589 Skill: Application AACSB: Analytic skills Objective: 19-2 104) Although fairly inexpensive and widely used, single-source data should be used with caution because the data tend to be unreliable and weak in external validity.

Answer: FALSE Diff: 2 Page Ref: 591 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 19-2 105) Accurately measuring the mobile audience of outdoor advertising is fairly easy as one would merely have to count passing cars.

Answer: FALSE Diff: 2 Page Ref: 592 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 19-3

28 .

106) Name and describe the four types of research used in evaluating the effectiveness of advertising and other elements of an IMC campaign.

Answer: There are four types of research used in evaluation: (1) Developmental research –Pretesting estimates the likelihood that an ad idea will work or that one idea is better than another.

(2) Concurrent research –Using tracking studies and test marketing to monitor the way the campaign is unfolding and how the message and media are working.

(3) Post-testing research –Evaluates the impact after the campaign is over or after the ad has run.

To be useful, benchmark or baseline studies are needed to gauge movement. These can be research company norms or they can be based on previous campaigns by this brand.

(4) Diagnostic research –Deconstructs an ad to see what elements are working or not working.

Researchers who evaluate commercials use frame-by-frame or moment-by-moment analysis to identify strengths and weaknesses in a commercial.

Diff: 3 Page Ref: 581 Skill: Synthesis AACSB: Reflective thinking skills Objective: 19-1 107) Describe the type of copytesting that occurs during the message development research stage of IMC planning.

Answer: During this stage, several types of research can occur: (1) Concept testing –Compares the effectiveness of various creative ideas. This testing often relies on a key concept card (or cards), which is an artist's drawing of the visual idea with a sentence underneath that captures the essence of the idea.

(2) Pretesting –Helps marketers to make final go/no-go decisions about finished or nearly finished ads. It differs from concept testing or message strategy research, which reveals the strengths and weaknesses of different versions of a concept or approach as marketers develop them. Pretesting assesses the strength of the finished message and predicts how well it will perform. The ideas to be tested are often full mockups of the ad. In television, advertisers can test the commercials as storyboard ideas or photoboards, but more often commercials are in the form of animatics.

(3) Diagnostics –More focused on diagnosing strengths and weaknesses than other methods.

Moment-by-moment tests of commercials provide an analysis of the impact of the internal logic of the commercial. The procedure includes showing a clutter reel or using a picture sort.

Diff: 3 Page Ref: 584-585 Skill: Synthesis AACSB: Reflective thinking skills Objective: 19-2

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108) Explain tracking studies and the practice of brand tracking.

Answer: Studies that periodically (generally every three or six months) measure top-of-mind brand awareness (first brand mentioned) are called tracking studies. These studies can also measure unaided and aided awareness of an ad and trial and repeat purchases. They sometimes ask the same questions of competing brands. Tracking studies show how a marketer's brand is performing over time, especially after changes are made in the marketing communication. Brand tracking is an approach that tracks the performance of the brand rather than or in addition to the advertising. The assumption is that with fragmented media and an abundance of high-quality but similar products, it is more important to track the brand because it reflects the quality of the customer's brand relationship. Instead of focusing on attributes and claims about a product, this research identifies how customers are involved with the brand and whether they are more favorably disposed toward it than toward other brands. Methods used to collect tracking data include attitude tests, wave analysis, consumer diaries, and pantry checks.

Diff: 2 Page Ref: 585,587 Skill: Synthesis AACSB: Reflective thinking skills Objective: 19-2 109) Discuss the use of scanners and scanner research.

Answer: Many retail outlets use electronic scanners to tally up purchases and collect consumer buying information. The brand name, the product code, and the price is on the bar code of each product. Some stores have a frequent buyer program and have a membership card that entitles consumers to special promotional offers. The store can track an enrolled consumer's purchases.

Scanner research is also used to see what type of sales spikes are created when certain ads and promotions are used in a given market. Both the retailer and the manufacturers of the brands are interested in this data. Stores may establish a consumer panel to track sales among various consumer groups. In scanner research, customers are asked to join a panel, which might contain hundreds of other customers. They complete a fairly extensive questionnaire and are assigned an ID number. They might receive a premium or a discount on purchases for their participation.

Each time they make a purchase, they also submit their ID number. Various manufacturers who sell products to the stores can do the same kind of testing. The panel questionnaire also contains a list of media that each member reported using, so media performance can also be evaluated.

Diff: 2 Page Ref: 590-591 Skill: Synthesis AACSB: Use of information technology Objective: 19-2

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110) Public relations programs are evaluated in terms of output and outcomes. Explain what this means and discuss three measures of each.

Answer: The evaluation of public relations examines the success of the program in getting the message out to the target audience in terms of output (materials produced and distributed) and outcomes (acceptance and impact of the materials), as well as public opinion and relationship tracking.

Output measures (students can answer any three of the following): (1) Production –Number of public relations products, such as news releases or brochures, generated.

(2) Distribution –Number of media outlets receiving public relations products.

(3) Coverage –number and size of clips, column inches, and seconds or minutes of time or space.

(4) Impressions –Media placements multiplied by circulation or broadcast reach.

(5) Advertising value –Equivalent ad costs for time or space.

(6) Content analysis –Positive or valence (whether the story or mention seems to be more positive or negative), key messages (the idea in the story), sources, and prominence.

The three outcome measures are: (1) Awareness –Aided and unaided recall in the target audience.

(2) Attitudes –Perceptions, preferences, and intent to buy.

(3) Behavior –Did members of the target audience do what you wanted them to do?

Diff: 3 Page Ref: 596 Skill: Synthesis AACSB: Reflective thinking skills Objective: 19-4 111) Which of the following was an objective of the Vail Resorts campaign as described in the chapter's opening vignette?

A) attract more first-time visitors B) market toward a younger age group C) increase the resort's revenue by 20 percent D) reinvent the resort's brand E) effectively sell season passes in a competitive market Answer: E Diff: 2 Page Ref: 577 Skill: Application AACSB: Analytic skills Objective: 19-1

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112) As described in the chapter's opening vignette, what research advantage did Vail Resorts have?

A) more monetary resources than its competitors B) access to better consumer resource data C) more one-on-one consumer surveys D) a robust customer database of transactional and traditional marketing information E) a well-equipped marketing team with twice the research capability of most competitors Answer: D Diff: 2 Page Ref: 577 Skill: Application AACSB: Reflective thinking skills Objective: 19-1 113) Mars, Inc., the makers of M&M's candy, was recently running television ads featuring the colorful nature of its candy with the tagline, "Chocolate is better in color." What type of research is used to evaluate these commercials right now, that is, monitoring the way the campaign is unfolding and how the message is working?

A) development research B) concurrent research C) post-testing research D) concept testing E) inquiry test Answer: B Diff: 2 Page Ref: 581 Skill: Application AACSB: Analytic skills Objective: 19-1 114) One of AT&T's requirements of its advertising is that everything must be pretested and proven to be effective before it goes on the air or appears in print. Which of the following is NOT a company listed in the text that AT&T might hire to help test the strong and weak points of its advertising?

A) Ameritest B) COMSCORE ARSgroup C) Ogilvy D) Mapes & Ross E) RoperASW Answer: C Diff: 3 Page Ref: 584 Skill: Application AACSB: Analytic skills Objective: 19-2

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115) ________ is a company that specializes in persuasion, brand/ad recall, and communication.

A) Ameritest B) Mapes & Ross C) Ogilvy D) COMSCORE ARSgroup E) RoperASW Answer: D Diff: 3 Page Ref: 584 Skill: Application AACSB: Analytic skills Objective: 19-2 116) For the Volvo GLBT campaign described in the text, the company managers selected their top three choices from the group of proposed ad ideas. The ________ was run to assess the constructs of branding, communication, and persuasion.

A) pretesting B) diagnostic C) concept testing D) flow of attention E) alert test Answer: C Diff: 2 Page Ref: 584 Skill: Application AACSB: Analytic skills Objective: 19-2 117) Tom is conducting research with the target audience to test the relative effectiveness of various message strategies and creative ideas for his client's automobile advertising. He is testing the Big Idea. What type of message development research is he conducting?

A) concept testing B) coincidental survey C) pretesting D) diagnostics E) tracking studies Answer: A Diff: 2 Page Ref: 584 Skill: Application AACSB: Analytic skills Objective: 19-2

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118) Leslie was paid $50 to watch a commercial and then sort a deck of pictures from the commercial into images she remembered seeing and ones she didn't remember seeing. Then she was asked to sort them into five categories from strong positive to strong negative. What type of research did she participate in?

A) diagnostics B) pretesting C) tracking study D) wave analysis E) order of presentation analysis Answer: A Diff: 2 Page Ref: 585 Skill: Application AACSB: Analytic skills Objective: 19-2 119) Sam had just finished watching his favorite television show, American Idol, when he received a phone call asking him a series of questions about an ad he saw during the program.

The researcher asked him what information he got from the ad. What type of research is this an example of?

A) moment-by-moment test B) coincidental survey C) post-testing D) concept testing E) tracking study Answer: B Diff: 2 Page Ref: 585 Skill: Application AACSB: Analytic skills Objective: 19-2 120) Which of the following is a measurement dimension that reveals the hidden structure of audience attention to moving pictures?

A) eye tracking B) concept testing C) content analysis D) wave analysis E) flow of attention Answer: E Diff: 2 Page Ref: 586 Skill: Application AACSB: Reflective thinking skills Objective: 19-2

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121) You received a phone call one evening from a research company asking about your television viewing the night before. After confirming that you did watch the program, the researcher then asked you, "Do you remember seeing a commercial for any fast food restaurants?" You didn't remember any, so then she asked you, "Do you remember seeing a commercial for Wendy's?" Once she said that, you did remember seeing a Wendy's commercial.

What type of question got you to remember seeing the ad?

A) recognition B) unaided recall C) aided recall D) unprompted recall E) prompted recall Answer: C Diff: 2 Page Ref: 589 Skill: Application AACSB: Analytic skills Objective: 19-2 122) You and your family are part of a consumer panel, and each time you go to the grocery store, you give the sales clerk your ID number. The research company tracks your purchases, as well as several other households' purchases, to determine the extent to which its clients' advertising works. What type of research are you participating in?

A) inquiry test B) scanner research C) concurrent research D) optimization research E) test marketing Answer: B Diff: 2 Page Ref: 590-591 Skill: Application AACSB: Analytic skills Objective: 19-2 123) Jana is a public relations specialist, and one way she evaluates the campaigns she develops for clients is to count the number of news releases her staff generates for a client's account. What type of measure of effectiveness does this illustrate?

A) awareness B) attitude C) distribution D) production E) coverage Answer: D Diff: 2 Page Ref: 596 Skill: Application AACSB: Analytic skills Objective: 19-4

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124) Betty is the marketing communications director for a major consumer packaged goods company, and one of her responsibilities is to ensure consistency among all marketing communication elements used for a specific brand. Her staff is conducting the first step of an IMC audit for one of their brands, and they are collecting all the materials produced by the company or their agencies and coding the use of agreed-upon consistency elements, such as brand identity cues, slogans, design format, tone of voice, colors, the expression of core values, and positioning cues. This analysis also looks for materials that are coded as off-strategy and diagnoses the ways in which deviant messages are being sent. What type of analysis is Betty's staff conducting?

A) input assessment B) output assessment C) outcome analysis D) content analysis E) audience perspective analysis Answer: D Diff: 2 Page Ref: 596 Skill: Application AACSB: Analytic skills Objective: 19-4 125) As discussed in the "It's a Wrap" section at the end of the chapter, what was the key to the success of Vail Resorts increasing its revenue?

A) more out-of-state visitors B) dramatic increase in retail sales C) a campaign that attracted many more visitors under thirty D) the strength of the pass program with a nine percent increase in season passes sold E) increasing sales to first-time visitors Answer: D Diff: 2 Page Ref: 602 Skill: Application AACSB: Reflective thinking skills Objective: 19-4 126) Frank is a senior account planner and is in charge of copytesting research. At which stage of a campaign is copy testing performed?

A) before an ad or campaign runs B) while an ad or campaign runs C) after an ad or campaign has run D) before and after a campaign runs E) before, during, and after a campaign runs Answer: E Diff: 2 Page Ref: 582 Skill: Synthesis AACSB: Reflective thinking skills Objective: 19-2

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Refer to the passage below to answer the questions that follow.

You are having dinner with your former college roommate, who is a neurosurgeon. You are an account planner at an advertising agency, and you do a lot of ad testing. You're trying to get him to help you with some neurological tests to determine the effectiveness of some of your clients' ads, especially those that attempt to evoke strong emotional responses. He asks you, "If advertising is done to sell a product, why don't you just measure sales to determine the effectiveness of an ad?" You try to explain to him that it is not that simple, and you tell him about all the types of research you conduct at various stages of a campaign.

127) Which of the following is a reason that advertisers use other measures in addition to sales as a measure of advertising effectiveness?

A) Sales are never an accurate measurement of advertising effectiveness.

B) Measuring other data is far cheaper than measuring sales.

C) Manufacturers, and therefore their advertising agencies, do not have access to sales data because it is collected by retailers who don't make that available to them.

D) Creating higher levels of brand recognition is one of the major objectives of advertising and isn't necessarily reflected in sales.

E) Advertisers don't normally measure advertising effectiveness with other measures besides sales.

Answer: D Diff: 2 Page Ref: 580 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 19-1 128) Which of the following is NOT a main communication effect that is assessed in various types of advertising research?

A) persuasion B) opinion C) cognition D) perception E) emotion Answer: B Diff: 2 Page Ref: 580 Skill: Application AACSB: Reflective thinking skills Objective: 19-1

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129) You tell your friend about the research you do before an ad even appears in any medium.

This research assists in the go/no-go decision about finished or nearly finished ads. This type of testing that assesses the strengths of the finished message and predicts how well it will perform is known as ________.

A) message strategy testing B) concept testing C) tracking studies D) pretesting E) test marketing Answer: D Diff: 2 Page Ref: 584-585 Skill: Application AACSB: Analytic skills Objective: 19-2 130) You also conduct a significant amount of research after the ad has been run to determine if it met its objectives. Which of the following is NOT a post-testing technique?

A) memory tests B) persuasion tests C) tracking studies D) inquiry tests E) likability tests Answer: C Diff: 2 Page Ref: 588-590 Skill: Application AACSB: Analytic skills Objective: 19-2 131) What were the marketing objectives of Vail Resorts' Colorado Pass campaign, as described in the chapter's opening?

Answer: There were three objectives: (1) Loyal pass holders stay loyal and renew.

(2) Previous pass holders return.

(3) Individuals with competitor passes convert to Colorado Pass.

Diff: 2 Page Ref: 578 Skill: Synthesis AACSB: Reflective thinking skills Objective: 19-1

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132) Cheryl is an account planner at a major advertising agency, and one of her responsibilities is to evaluate ads and campaigns through testing, monitoring, and measurement. Explain these three terms.

Answer: Testing is used to predict results, monitoring tracks performance, and measurement evaluates results. In other words, advertisements typically are tested before they run as a way to predict their effectiveness. As a campaign unfolds, the performance is tracked to see whether any elements need to be changed. The results, the actual effects, are measured after the ad or campaign runs.

Diff: 3 Page Ref: 580-581 Skill: Synthesis AACSB: Reflective thinking skills Objective: 19-1 133) As described in the text, explain how Volvo used concept testing in developing the GLBT campaign.

Answer: For the Volvo GLBT campaign described in the text, various concepts were developed, and Ford and Volvo managers selected their top three choices from a group of proposed ideas.

The messages were tested to assess the constructs of branding, communication, and persuasion, including the concept of consumer connection.

Diff: 3 Page Ref: 584 Skill: Synthesis AACSB: Reflective thinking skills Objective: 19-2 134) Identify and briefly explain the three sorting exercises described in "A Matter of Practice" that enable the advertiser to see an ad through the eyes of its target audience.

Answer: (1) Flow of attention is like a visual spell-checker used to analyze whether an ad film or Web video is put together well according to principles of proper film syntax or good visual grammar.

(2) Flow of Emotion measures not only the volume of emotions pumping through an ad film but also which of the four archetypal dramatic structures is being used in the creative design.

(3) Flow of Meaning shows the researcher where key communication points or brand values are being cued visually. Meaning is created when thought and emotion come together.

Diff: 3 Page Ref: 586 Skill: Synthesis AACSB: Reflective thinking skills Objective: 19-3 135) What is the name of the Advertising Research Foundation's research award, which was mentioned in the Volvo GLBT campaign?

Answer: The ARF's research award is named the David Ogilvy Award.

Diff: 3 Page Ref: 584 Skill: Application AACSB: Analytic skills Objective: 19-2

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136) Gina and her family participated in a marketing study in which the researcher came to their home and asked a series of questions about the brands and products that they use. The researcher then asked if she could look at the products they have around the house and asked if Gina would keep the empty packages of products they used over the next month. What type of research is this?

Answer: This in an example of a pantry check, a type of tracking study.

Diff: 2 Page Ref: 588 Skill: Application AACSB: Analytic skills Objective: 19-2 137) You are interning at an advertising research company this summer, and you will be learning how to implement persuasion tests. Explain what these are, at what stage of copy testing they are performed, how they are implemented, and what determines the validity of the test.

Answer: Persuasion tests are a type of post-testing evaluation after an ad has been run to determine if it met its objectives. A persuasion test (a.k.a. attitude change test) asks consumers how likely they are to buy a specific brand. Next they are exposed to an advertisement for that brand, usually as part of a collection of brands. After exposure, researchers again ask them what they intend to purchase. The researcher analyzes the results to determine whether intention to buy has increased as a result of exposure to the advertisement. This test is sometimes referred to as an intend-to-buy or motivation test. The validity of a persuasion test depends in part on whether participants in the experiment represent a good sample of the prospects the advertiser is trying to reach.

Diff: 3 Page Ref: 590 Skill: Message Evaluation AACSB: Reflective thinking skills Objective: 19-2 138) Hector is a media buyer, and one of his responsibilities is to evaluate the media vehicles he will purchase for his clients. Name the companies that he most likely uses to give him information on print and broadcast media audiences.

Answer: The Audit Bureau of Circulations (ABC), Experian Simmons (formerly known as SMRB), and MediaMark (MRI+) provide audience data for print media. For broadcast, Arbitron, RADAR, and A.C. Nielsen provide audience monitoring.

Diff: 3 Page Ref: 592 Skill: Application AACSB: Analytic skills Objective: 19-3

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139) Charles is going to be a member of a discussion panel at an upcoming conference on issues facing media planners and buyers. The topic of his panel's discussion will be the biggest challenge facing media planners and what is currently being done in the industry to address this challenge. Briefly describe what will be discussed during this session.

Answer: The biggest challenge in media planning is media efficiency. Advertisers want to know their dollars are being spent in the most efficient way and for the greatest impact. Media planners use computer media optimization models of media performance in making decisions about media selection, scheduling, and weights (amount of budget). Models are always theoretical, so one result of post-evaluation is that the actual performance of a plan can be compared with the results projected by the media planner's model. The goal in testing media planning is always to optimize the budget to get the most impact possible with the least expenditure of money.

Diff: 3 Page Ref: 593 Skill: Synthesis AACSB: Reflective thinking skills Objective: 19-3 140) RoC Retinol Correxion is a skin creme product that says you can "Get 10 Years Back." The print ad doesn't really give much information regarding the product, but it does say, "For more about the science behind RoC, visit rocskincare.com." How can the effectiveness of this ad be measured?

Answer: Ads containing elements that can be returned (i.e., web address) are evaluated by using direct-response counts. Because this ad contains a direct-response element, RoC can simply count the number of readers who visit the website.

Diff: 2 Page Ref: 594-595 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 19-4 141) Maria is a public relations specialist who works primarily on writing news releases and feature stories for the clients of the agency in which she works. On the most basic level, how can her efforts be evaluated?

Answer: The evaluation of public relations examines the success of the program in getting the message out to the target audience in terms of output (materials produced and distributed) and outcomes (acceptance and impact of the materials), as well as public opinion and relationship tracking. It would seem that the most basic level of analysis for evaluating Maria's efforts would be to look at output measures.

Diff: 3 Page Ref: 596 Skill: Application AACSB: Analytic skills Objective: 19-4

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142) The Kitchen Table is a specialty kitchen store that tries to get customers to make repeat visits. To do that, the Kitchen Table holds cooking demonstrations hosted by various chefs from restaurants around town. To promote these events, the store advertises in the newspaper for two weeks leading up to each event. How can the store know if the ads are successful?

Answer: A simple way to assess the effectiveness of the ads is to count how many people show up for the cooking demonstration that was advertised.

Diff: 2 Page Ref: 597 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 19-4 143) BFDG Advertising specializes in business-to-business advertising. Discuss the primary objectives of B2B advertising and how its effectiveness is typically evaluated.

Answer: The primary objective of B2B advertising is to generate a response, particularly sales leads. Therefore, a common form of evaluation is a lead count based on calls, e-mails, and cards returned to the advertiser. Another common objective is called conversion, which refers to the number of leads that turn into customers who make a purchase. Conversion rates, which are percentages of the leads, are also calculated for most marketing communication tools used in B2B programs.

Diff: 2 Page Ref: 597 Skill: Synthesis AACSB: Reflective thinking skills Objective: 19-4 144) Coca-Cola is a global brand that advertises all over the world. Discuss the special problems managers face that make evaluation of international programs difficult.

Answer: First, many markets with distinctive characteristics must be analyzed, not just the markets in one country. Furthermore, the costs of running evaluation programs in smaller markets may not be cost effective. There may also be incompatibilities among various measurement systems and data analysis techniques that make it difficult to compare the data from one market to similar data from another market.

Diff: 3 Page Ref: 598 Skill: Synthesis AACSB: Dynamics of the global economy Objective: 19-4 145) What were the three objectives of the UPS campaign described in the chapter?

Answer: (1) Breaking through awareness.

(2) Breaking through the inertia trance.

(3) Breaking the relevance trance.

Diff: 2 Page Ref: 600-601 Skill: Synthesis AACSB: Reflective thinking skills Objective: 19-4

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Refer to the passage below to answer the questions that follow.

Dell Computers has dramatically increased its consumer advertising in the past five years, which has resulted in Dell becoming the top-selling personal computer. Consumers can purchase a Dell computer only directly from Dell, either by calling the toll-free number or visiting Dell's website.

One of Dell's popular television commercials included Steve, a young man who would usually say, "Dude, you're gettin' a Dell." Audiences really liked Steve and the ads he appeared in, and in fact, that's when Dell's sales started to skyrocket. However, Dell has stopped that campaign and has moved on to others.

146) One procedure that was used to evaluate the commercials used a clutter reel to test the ads.

Explain what a clutter reel is.

Answer: A clutter reel is a group of commercials that includes the test commercial and competitors' commercials as well as others. It is a procedure used in the moment-by-moment type of tests.

Diff: 2 Page Ref: 585 Skill: Synthesis AACSB: Reflective thinking skills Objective: 19-2 147) Dell discontinued the "Dude, you're gettin' a Dell" campaign because the company felt it had "run its course." Really, it was discontinued because it wasn't effective anymore and tests showed that consumers were getting rather irritated with Steve. Explain why this can be.

Answer: The point at which advertising gets tired and there is no response or less response than at the launch is called wearout. This is also the point where recall stabilizes or declines and irritation levels increase because people are tired of hearing or seeing the same ad replayed.

Wearout is a combination of creative impact and media buying.

Diff: 2 Page Ref: 593 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 19-3 148) Dell uses a combination of media, one of which is direct mail. How can Dell evaluate the efficiency and effectiveness of the direct-mail ads?

Answer: In this case, Dell can measure effectiveness by using direct-response counts. In some ways, direct-response mechanisms are the easiest marketing communication tool to evaluate, both in terms of the message effectiveness and in terms of ROI efficiency the sales-to-cost ratio. The efficiency of the direct-response offer is measured in terms of response per thousand (RPM). To calculate the RPM, the formula is (total responses/total mailed) × 1,000.

Diff: 2 Page Ref: 594-595 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 19-4

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149) It seems like every week Dell has a special offer for consumers. For example, one offer included a free printer and digital camera with the purchase of a desktop computer. How do marketers typically evaluate the effectiveness of sales promotion offers such as this?

Answer: One survey found that marketers use sales as the leading evaluation measure. Other measures in order of use were response rates, awareness, other mix, and redemption rates.

Diff: 2 Page Ref: 596 Skill: Application AACSB: Reflective thinking skills Objective: 19-4 150) Dell wants to use its "Dude, you're gettin' a Dell" campaign in other countries. At the very least, what type of research should Dell conduct before using this ad?

Answer: The effectiveness of an international evaluation program for advertising should focus, at least initially, on pretesting. Unfamiliarity with the culture, language, and consumer behavior can result in major miscalculations. Pretesting helps the advertiser correct major problems before miscommunication occurs.

Diff: 2 Page Ref: 599 Skill: Critical Thinking AACSB: Reflective thinking skills Objective: 19-4

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