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199) A full-service advertising agency is
A) an advertising agency that not only provides a complete range of services, including market
research, media selection, copy development, artwork, and production, but it also has input into
actual product design.
B) an advertising agency that specializes in one aspect of the advertising process such as
developing advertising copy or providing social media services.
C) an advertising agency that provides the most complete range of services, including market
research, media selection, copy development, artwork, and production.
D) a firm that is large enough to carry its own in-house advertising staff to provide all
advertising services the company needs.
E) one that sets a firm's advertising objectives, designs the market research, recommends media
selection, suggests copy development and artwork, and then allows the firm to implement the
recommendations to save the firm money.
200) Though the most common form of compensation is a fee-based model, a(n) ________ may
also be compensated with a commission-based or an incentive-based model.
A) full-service agency
B) in-house agency
C) modified-service agency
D) promotional firm
E) limited-service agency
201) Advertising agencies that specialize in one aspect of the advertising process, such as
providing creative services to develop the advertising copy, buying previously unpurchased
media (media agencies), or providing Internet services (Internet agencies), are referred to as
A) full-service agencies.
B) in-house agencies.
C) modified-service agencies.
D) functional agencies.
E) limited-service agencies.
202) A limited-service agency is
A) an advertising agency that not only provides a complete range of services, including market
research, media selection, copy development, artwork, and production, but it also has input into
actual product design.
B) an advertising agency that specializes in one aspect of the advertising process, such as
developing advertising copy or providing Internet services.
C) an advertising agency that provides the most complete range of services, including market
research, media selection, copy development, artwork, and production.
D) a firm that is large enough to carry its own in-house advertising staff to provide all
advertising services the company needs.
E) one that sets a firm's advertising objectives, designs the market research, recommends media
selection, suggests copy development and artwork, and then allows the firm to implement the
recommendations to save the firm money.
203) An advertising agency that deals in creative work and is compensated by a contractual
agreement for the services performed is referred to as a(n)
A) full-service agency.
B) in-house agency.
C) modified-service agency.
D) limited-service agency.
E) sales promotion firm.
204) When a company uses a(n) ________, it is using its own advertising staff to provide the
promotional services needed by the company.
A) intra-firm agency
B) promotion department
C) in-house agency
D) full-service agency
E) limited-service agency
205) The company's own advertising staff, which may provide full services or a limited range of
services, is referred to as a(n)
A) intra-firm agency.
B) in-house agency.
C) full-service agency.
D) limited-service agency.
E) promotion department.
206) Tests conducted after an advertisement has been shown to the target audience to determine
whether an ad accomplished its intended purpose are referred to as
A) jury testing.
B) tracking tests.
C) exposure testing.
D) posttesting.
E) pretesting.
207) All of the following are examples of posttests except which?
A) inquiry test
B) sales test
C) attitude test
D) unaided recall test
E) jury test
208) There are five common approaches to posttests, including which of these?
A) inquiry tests
B) jury tests
C) tracking tests
D) performance tests
E) comparison tests
209) An aided recall posttest designed to determine the percentages of those who remember
seeing a specific magazine ad, who saw or read any part of the ad identifying the product or
brand, who read any part of the ad's copy, and who read at least half of the ad, is a(n)
A) attitude test.
B) prompted response test.
C) inquiry test.
D) concept test.
E) Starch test.
210) The Starch test is an example of a(n)
A) sales test.
B) unaided recall test.
C) aided recall test.
D) inquiry test.
E) concept test.
211) The Starch test uses a(n) ________ to determine the percentages of those who remember
seeing a specific magazine ad, who saw or read any part of the ad identifying the product or
brand, who read any part of the ad's copy, and who read at least half of the ad.
A) attitude test
B) prompted response test
C) aided recall test
D) inquiry test
E) concept test
212) The Starch test uses aided recall to determine the percentage of those who did which of
these?
A) felt the ad was vague or ambiguous
B) felt elements of the ad were inappropriate
C) could summarize the key ad points in their own words
D) remember seeing a specific magazine ad
E) had already tried the product
213) A researcher asked Kelly, as a subscriber to Fitness magazine, which ads she remembered
seeing in the most recent issue. Then Kelly was asked questions about the content and
appearance of the ads she remembered. The researcher was using ________ to test the
effectiveness of ads in the magazine.
A) inquiry testing
B) concept testing
C) portfolio testing
D) aided recall
E) unaided recall
214) Which of the following statements about inquiry tests is most accurate?
A) In inquiry tests, a question such as, "What ads do you remember seeing yesterday?" is asked
of respondents without any other prompting to determine whether they saw or heard advertising
messages.
B) In inquiry tests, additional product information, product samples, or premiums are offered to
an ad's readers or viewers, and ads generating the most requests are presumed to be the most
effective.
C) Inquiry tests involve studies such as controlled experiments and consumer purchase tests.
D) In an inquiry test, respondents are asked questions to measure changes in their attitudes after
an advertising campaign, such as whether they had a more favorable attitude toward the product
advertised.
E) In an inquiry test, respondents are first shown an ad and then asked whether their previous
exposure to it was through reading, viewing, or listening.
215) Which of the following statements about sales tests is most accurate?
A) In sales tests, additional product information, product samples, or premiums are offered to an
ad's readers or viewers, and ads generating the cost inquiries are presumed to be the most
effective.
B) In sales tests, a question such as, "What ads do you remember seeing yesterday?" is asked of
respondents without any other prompting to determine whether they saw or heard advertising
messages.
C) Sales tests involve studies such as controlled experiments and consumer purchase tests to
measure retail sales.
D) In a sales test, respondents are asked questions to measure changes in their attitudes after an
advertising campaign, such as whether they had a more favorable attitude toward the product
advertised.
E) In a sales test, respondents are first shown an ad and then asked whether their previous
exposure to it was through reading, viewing, or listening.
216) Posttests that involve studies such as controlled experiments (e.g., using radio ads in one
market and newspaper ads in another and comparing the results) and consumer purchase tests
(measuring retail sales that result from a given advertising campaign) are examples of
A) aided recall tests.
B) unaided recall tests.
C) attitude tests.
D) sales tests.
E) inquiry tests.
217) Sales promotion expenditures account for ________ percent of all promotional spending.
A) 5
B) 12
C) 18
D) 24
E) 33
218) Consumer-oriented sales promotions are
A) sales tools like coupons and premiums used to support a company's advertising and personal
selling directed to ultimate consumers.
B) promotions where charitable contributions of a firm are tied directly to the customer revenues
produced through the promotion of one of its products.
C) methods used to get a nonpersonal, indirectly paid presentation of a company or its products.
D) advertisements that show actual consumers using the product.
E) sales promotions that supplement advertising and personal selling but are directed to
wholesalers, retailers, or distributors.
219) Sales tools like coupons and premiums used to support a company's advertising and
personal selling directed to ultimate consumers are referred to as
A) trade-oriented sales promotions.
B) manufacturers' promotions.
C) channel promotions.
D) consumer-oriented sales promotions.
E) reseller promotions.
220) Directed to ultimate consumers, consumer-oriented sales promotions are sales tools used to
support a company's
A) advertising and public relations.
B) advertising and personal selling.
C) personal selling and public relations.
D) personal selling and direct marketing.
E) advertising and direct marketing.
221) When preparing to go shopping after the Christmas holidays, Christy actively scans the ads
in the local newspaper for coupons and contests. While in the store, Christy also looks for free
samples of new products and products she hasn't purchased previously. The coupons, contests,
and free samples are all examples of
A) advertising.
B) publicity.
C) sales promotion.
D) personal selling.
E) direct marketing.
222) Sales promotions that usually offer an immediately discounted price to the consumer, which
encourages trial of the product, are commonly referred to as
A) deals.
B) rebates.
C) samples.
D) coupons.
E) premiums.
223) For marketers, the primary objective of coupons is to
A) increase foot traffic in supermarkets.
B) encourage repeat purchases.
C) encourage trial.
D) retaliate against competitor's actions.
E) minimize brand-switching.
224) All of the following are true about coupons except which?
A) The majority of coupons are distributed as freestanding inserts in newspapers.
B) Companies have decreased their use of coupons as redemption rates have fallen.
C) The usage rate among consumer for coupons has declined sharply since the end of the last
recession.
D) Online coupons only account for a small percentage of total coupon redemptions.
E) Most coupons are now issued without an expiration date.
225) All of the following statements are true about coupons except which?
A) Couponing can reduce gross revenues by lowering the price paid by already-loyal consumers.
B) Manufacturers that currently use coupons are particularly interested in coupon programs
directed at repeat purchasers.
C) Studies suggest that market share does increase during the period immediately after coupons
are distributed.
D) Recent growth in coupon fraud has marketers considering adding holograms and visual aids
to coupons to help cashiers identify valid coupons.
E) The redemption rate for online coupons is substantially higher than other forms of coupons.
226) All of the following add to the costs of coupons except which?
A) misredemption
B) redemption
C) customer handling
D) clearinghouse costs
E) the advertisement to deliver it
227) Valpak is a firm that sends consumers a package of ________ to stimulate selective demand
(encourage the trial) of various products by offering them an immediately discounted price.
A) deals
B) rebates
C) samples
D) premiums
E) coupons
228) A mother handed her college-aged son a clipped ________ and said, "Use this to get 25
cents off the Birds Eye lima beans I need you to pick up for dinner," which shows that Birds Eye
has been successful in its attempt to stimulate demand.
A) coupon
B) rebate
C) sample
D) deal
E) premium
229) Short-term price reductions like two-for-one commonly used to increase trial among
potential customers or to retaliate against a competitor's actions are referred to as a
A) coupon.
B) deal.
C) sample.
D) premium.
E) product placement.
230) The sign at the entrance to a men's store reads, "Buy one shirt, get a second shirt of equal or
lower value for only one dollar." Which type of sales promotion is the store using?
A) a contest
B) a premium
C) a deal
D) a rebate
E) a sample
231) During Super Bowl weekend, Pepsi introduced a new brand of soft drink. On that same
weekend, Coca-Cola offered a "BOGO" (Buy One, Get One) promotion to make the Pepsi new
product introduction more difficult. Which type of sales promotion was Coca-Cola using?
A) a contest
B) a premium
C) a deal
D) a rebate
E) a sample
232) A promotional tool often used with consumers that consists of merchandise offered free or
at a significant savings over its retail price is referred to as a
A) deal.
B) rebate.
C) sample.
D) premium.
E) coupon.
233) What promotional tool is often used with consumers that consists of merchandise offered at
a significant savings over its retail, though the cost is covered if the consumer is charged this
reduced price for it?
A) Buy One Get One (BOGO) deal
B) self-liquidating premium
C) sample
D) rebate
E) coupon
234) All of the following are the most popular premiums except which?
A) writing instruments
B) toys for dogs and cats
C) cups and mugs
D) desk accessories
E) apparel
235) McDonald's recently offered collectible Pokémon toys for free with the purchase of a
Happy Meal. These collectibles are an example of a
A) deal.
B) rebate.
C) coupon.
D) sample.
E) premium.
236) A print ad for Allegra allergy medication offers a free purple seat cushion to all who request
additional information about the drug. This seat cushion is an example of a
A) sample.
B) deal.
C) rebate.
D) premium.
E) coupon.
