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Indicate whether the statement is true or false.
1. In the context of campaign evaluation, testing ad effectiveness can be done only after the advertising campaign is over.
a. True
b. False
2. The Federal Trade Commission does not allow the identification of competing brands in comparative advertising.
a. True
b. False
3. Newspapers and magazines have a high noise level.
a. True
b. False
4. Experiential marketing involves minimal engagement with a brand’s consumers.
a. True
b. False
5. Evaluating an advertising campaign is the simplest part of the advertising process because the factors that determine the
effectiveness of an ad are limited and clear.
a. True
b. False
6. In a free-press environment, publicity is easily controlled in a crisis.
a. True
b. False
7. A trade allowance is a price reduction offered by retailers to customers who are buying homogeneous shopping goods.
a. True
b. False
8. Advertising can affect the way consumers rank a brand’s attributes.
a. True
b. False
9. A product’s benefit is simply a feature of the product such as its easy-open package, special formulation, or new lower
price.
a. True
b. False
10. Corporations often use advocacy advertising to express their views on controversial issues.
a. True
b. False
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11. The selection of media is not dependent on promotional objectives, the appeal, or executional style of advertising.
a. True
b. False
12. Unlike radio, a magazine has a relatively long life span, which is further increased by a high pass-along rate.
a. True
b. False
13. Serious or emotional advertisements are largely used to change people’s deeply rooted values and attitudes.
a. True
b. False
14. Intermediaries receive push money as a bonus for pushing the manufacturer’s brand through the distribution channel.
a. True
b. False
Indicate the answer choice that best completes the statement or answers the question.
15. A disadvantage of newspaper advertising is that:
a. it has low geographic selectivity and flexibility.
b. it may not be the best vehicle for marketers trying to reach a very narrow market.
c. it does not lend itself well to cooperative advertising.
d. it does not allow manufacturers and retailers to split the costs of advertising.
16. New brands with a small market share tend to spend proportionately more for advertising and sales promotion than
those with a large market share because:
a. a certain minimum level of exposure is needed to measurably affect purchase habits.
b. spending more will prevent advertising response function.
c. returns multiply beyond a certain level of spending.
d. product sales and market share improve drastically and keep increasing with more spending.
17. Pioneering advertising is heavily used during the _____ of the product life cycle.
a. introductory stage
b. growth stage
c. formative stage
d. conception stage
18. Which of the following ads describes a benefit of a product?
a. An ad for a bicycle mentioning eight gears
b. An ad for a restaurant mentioning weeknight discounts
c. An ad for an anti-acne cream mentioning itsactive ingredients
d. An ad for a shampoo claiming to stop hair fall
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19. Duski, a very expensive brand of clothing and accessories, promotes its products by using advertisements that feature
beautiful women clothed in its brands. Given this information, which of the following advertising appeals is used by
Duski?
a. Health
b. Environmental consciousness
c. Profit
d. Vanity and egotism
20. Magnira Corp., a manufacturer of hygiene and personal care products, launches a new toothpaste “Tidy” that is more
effective in maintaining oral hygiene than other brands. The advertisements of Tidy provide highly valid research
information. This is an example of _____.
a. scientific executional style
b. slice-of-life executional style
c. lifestyle executional style
d. demonstration executional style
21. Michael is the managing director of Centaurus Communications, a smartphone marketing company. When his media
planning team suggested placing an advertisement on a billboard on the busiest route in the city, he rejected the idea. He
felt that there were too many billboards on that route, and Centaurus’s advertisement might not get noticed. In the given
context, billboards have a high ________.
a. recency effect
b. primacy effect
c. feedback loop
d. noise level
22. _____ is a public relations strategy that involves getting a product, service, or company name to appear in a movie,
television show, radio program, magazine, newspaper, video game, video or audio clip, book, or commercial for another
product; on the Internet; or at special events.
a. Audience selectivity
b. Product placement
c. Corporate communication
d. Advergaming
23. A _____ is a media scheduling strategy in which ads are run heavily every other month or every two weeks to achieve
a greater impact with an increased frequency and reach at those times.
a. circular media schedule
b. flighted media schedule
c. continuous media schedule
d. seasonal media schedule
24. Which of the following is a similarity between trade sales promotion and consumer sales promotion?
a. Both focus on providing incentives to consumers or wholesalers to make an immediate purchase.
b. Both focus on providing push money and trade allowance to loyal consumers.
c. Both aim to increase sales by using point-of-purchase display.
d. Both aim to segment a market based on its characteristics.
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25. Heather is the owner of a wedding boutique. She frequently places ads in bridal magazinesin order to reach her target
market. In the given scenario, the ability of the bridal magazines to reach the relevant market is referred to asits
__________.
a. audience selectivity
b. competitive advantage
c. advertising elasticity
d. holding power
26. Kriyoto Inc. is a manufacturer of printers, scanners, and other office equipment. It announced a cash refund for
corporate purchases in quantities more than ten. Rick purchased 20 color printers for his office from Kriyoto during this
sale. To avail the cash refund, he had to mail in a proof of purchase, purpose of purchase, proof of his company’s legality,
and his cash register receipt. In this case, Rick has received a:
a. premium.
b. bonus.
c. push money.
d. rebate.
27. Unlike magazine advertising, radio advertising:
a. provides maximum flexibility.
b. has longer lead time.
c. poses difficulty in communicating humor.
d. has high unit and production costs.
28. If the goal of the promotion plan is to improve the image of the company or the industry, _____ may be used.
a. institutional advertising
b. pioneering advertising
c. competitive advertising
d. comparative advertising
29. The ad campaign of Ivre, a beer company, focuses on promoting responsible drinking. The company airs short ads on
television appealing to the public to drink responsibly and always designate a driver. The ad campaign of Ivre exemplifies
_________.
a. institutional advertising
b. product advertising
c. pioneering advertising
d. competitive advertising
30. Advertisements of Brita LED Lightings are in the form of comparative advertising to emphasize the benefits of using
LEDs over CFLs. The ads emphasize that Brita’s LEDs cost less than CFLs or other brands’ LEDs, last longer, consume
lesser energy, and need to be replaced fewer times than CFLs. In this case, which of the following advertising appeals is
used in these ads?
a. Admiration
b. Profit
c. Vanity and egotism
d. Health
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31. Fournotts Corp., a sports shoe manufacturer, launched a new sports shoe. As a part of publicity, it invited its
customers to try the shoes and get a feel of its features. This is an example of _____.
a. corporate communication
b. sponsorship
c. product placement
d. experiential marketing
32. Nureno Automobiles is launching a new electric car, Gepard. The ad campaign of Gepard includes a series of
television ads that give detailed information about the car and enumerate the benefits of driving an electric car. The ad
campaign of Gepard is an example of ________.
a. competitive advertising
b. institutional advertising
c. pioneering advertising
d. comparative advertising
33. Serona Computers has launched a new range of extremely lightweight tablet computers. These computers have high
speed processors with a large RAM capacity, and they come preloaded with some of the most popular software. However,
the ad campaign for these computers revolves around their lightweight construction. Almost all the ads in the campaign
point out the ease of carrying them. In the given scenario, the lightweight construction of the tablet computers exemplifies
________.
a. a consumer stimulant
b. an advertising specialty
c. an advertising appeal
d. an in-pack premium
34. Which of the following is a difference between an attribute and a benefit of a product?
a. An attribute includes pleasure or improved health, while a benefit includes an easy-open package or a special
formulation.
b. An attribute cannot be experienced by consumers, while a benefit is tangible and can be experienced.
c. An attribute is bought by consumers, while a benefit is not bought by consumers.
d. An attribute is simply a feature of a product, while a benefit is what consumers receive by using a product.
35. Which of the following ads describes anattribute of a product?
a. An ad for a bakerymentioningorganicraw materials
b. An ad for a shampoo claiming to stop hair fall
c. An ad for a car claiming superior anti-theft protection
d. An ad for a travel agencymentioning the ease of booking vacations
36. _____ is the number of times an individual is exposed to a given message during a specific period.
a. Reach
b. Life span
c. Frequency
d. Contact
37. Smithy Writing Implements has launched a range of markers with gel inks that show up brightly on dark surfaces. The
pens have special writing tips and specially designed caps to prevent the ink from drying. The ad campaign for the pens,
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however, focuses only on their capability to write on dark surfaces as this feature is not offered by any of their
competitors. In the given scenario, this feature is an example of _________.
a. a unique selling proposition
b. a consumer stimulant
c. an advertising specialty
d. product parity
38. Identify a true statement about an advertising campaign.
a. It contains a wide variety of themes and slogans.
b. It extends for a defined period of time.
c. It cannot focus on more than one advertising appeal.
d. It follows the Boston Consulting Group’s matrix.
39. Kelly’s Kitchen, a popular chain of fast food restaurants, offers a kids’ meal pack free with every purchase of its newly
introduced luxury meal pack. This is an example of a:
a. trade allowance.
b. loyalty marketing program.
c. rebate.
d. premium.
40. _____ is a form of advertising designed to influence demand for a specific brand.
a. Institutional advertising
b. Advocacy advertising
c. Competitive advertising
d. Pioneering advertising
41. Which of the following statements is true of executional styles?
a. Executional styles often dictate what type of media is to be employed to convey the message.
b. Injecting humor into an advertisement is the least effective executional style.
c. A message can be easily communicated through humor in print or magazine advertising.
d. Scientific executional styles lend themselves well to billboard advertising.
42. _____ is the element in the promotional mix that evaluates people’s attitudes, identifies issues that may elicit their
concern, and executes programs to gain their understanding and acceptance.
a. Personal selling
b. Advertising
c. Sales promotion
d. Public relations
43. _____ is the ability of an advertising medium to reach a precisely defined market.
a. Audience selectivity
b. Target sensitivity
c. Projection efficiency
d. Target efficiency
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44. Lorraine is the marketing manager atSibil Furnishings. To promote the latest range of furniture, she decides to place
ads in local newspapers, on the radio, and on television. She also decides to aggressively advertise the products through
interior design bloggers.In the context of advertising, Lorraine is involved in ________.
a. perceptual mapping
b. advocacy advertising
c. media planning
d. decoding
45. In the context of media scheduling, which of the following is an example of apulsing media schedule?
a. A clothing store advertising more often during the holidays
b. A pharmacy advertising sunscreens during summer
c. A grocery store advertising different products at different times throughout the year
d. A home store advertising its garden center in spring
46. Pete is the owner of a range of homestays in Carmen Islands. He advertises heavily every other month in order to
maintain the visibility of his business. Which of the following types of media schedule does the given scenario exemplify?
a. A continuous media schedule
b. A pulsing media schedule
c. A flighted media schedule
d. A seasonal media schedule
47. Which of the following is an advantage of using cost per contact to determine the media mix for a product?
a. It allows advertisers to increase an ad’s effectiveness by reaching potential customers.
b. It enables an advertiser to compare the relative expenses of specific media vehicles.
c. It requires advertisers to pay only for the customers who view their ad.
d. It allows marketers to minimize the cost of advertising by reaching a large number of people.
48. Tread Inc. is the market leader for sports shoes in the subcontinent of Gavon. Though the brand has not introduced any
new product lines over the past decade, its signature products enjoy a high demand and have always remained popular.
According to the concept of advertising response function, which of the following should be Tread Inc.’s advertising
strategy?
a. It should have a large budget for advertising expenditures.
b. It should spend proportionately less on advertising than on a newer line.
c. It should penetrate consumers’ perceptual defenses and affect purchase intentions.
d. Its advertisements should easily affect target consumers’ deeply rooted values and attitudes.
49. At Rue’s Hunting Emporium, a retail store, equipment required for hunting is sold. When a new or revised equipment
is introduced, it advertises those products steadily throughout a planned period of time. This is an example of a _____.
a. circular media schedule
b. flighted media schedule
c. continuous media schedule
d. seasonal media schedule
50. Olivia recently opened a salon. She strategically priced her salon’s services slightly lower than that of other popular
salons in the neighborhood. Subsequently, she handed her customersa flyer that listed the prices of various services that
she offered in her salon. It also listed the prices charged by two other salons in the area for the same services. The given
scenario exemplifies _________.
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a. comparative advertising
b. pioneering advertising
c. institutional advertising
d. advocacy advertising
51. Reach is related to a medium’s ratings, generally referred to in the industry as:
a. gross ratings points.
b. cost per rating points.
c. gross review points.
d. target ratings points.
52. _____ is the channel used to convey a message to a target market.
a. A medium
b. An advertising appeal
c. Reach
d. Audience selectivity
53. If an advertiser wants to enhance the sales of a specific good or service, _____ should be used.
a. institutional advertising
b. product advertising
c. corporate advertising
d. advocacy advertising
54. Advertising campaigns follow the _____.
a. BCG matrix
b. IMC model
c. AIDA model
d. SWOT matrix
55. In the context of the effects of advertisements, humorous advertisements:
a. cannot be used to reinforce and remind loyal customers about the benefits of a product.
b. are effective in changing consumers’ deeply rooted values and attitudes.
c. cannot be used by companies that introduce new products.
d. are effective at shaping attitudes when consumers already have a positive image of an advertised brand.
56. Understanding the advertising response function helps marketers:
a. increase the sales and market share of a brand.
b. use their advertising budgets wisely to suit the target market.
c. know the real effect of an advertising campaign.
d. gain publicity for a brand.
57. Laelle Corp., a furniture manufacturing company, uses marketing efforts like paid television commercials and
magazine inserts to publicize its products. These are examples of activities associated with:
a. advertising.
b. franchising.
c. personal selling.
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d. nonstore retailing.
58. Firms use competitive or brand advertising when a product enters the _____ of the product life cycle and other
companies begin to enter the marketplace.
a. introductory stage
b. growth stage
c. formative stage
d. decline stage
59. Which of the following statements is true of pioneering advertising?
a. It offers consumers in-depth information about the benefits of the product class.
b. It is heavily used during the growth stage of the product life cycle.
c. It focuses on influencing demand for a specific brand over other brands.
d. It is used mainly to compare brands on one or more specific attributes.
60. Francis owns a winery and markets his wines through a neighborhood liquor store. Bethany, the store owner, often
advertises his wines in local newspapers and on the radio, and Francis and Bethany split the costs of advertising among
themselves. This is an example of ________.
a. advocacy advertising
b. cooperative advertising
c. institutional advertising
d. pioneer advertising
61. An alternative to a commercial spot is _____, a thirty-minute or longer advertisement, which is relatively inexpensive
to produce and air.
a. the frequent buyer program
b. a premium
c. a sweepstake
d. the infomercial
62. When Jacob opened agaming lounge in his town, it was the only one of its kind for two years. When other clubs
opened in the area, he hired an advertising agency to create a campaign to promote his lounge. The campaign focused on
reminding consumers of the good times they had had at his club. He also hired a local celebrity to endorse his club. The ad
campaign’s appeal to the emotions of the consumers is an example of __________.
a. pioneering advertising
b. comparative advertising
c. institutional advertising
d. competitive advertising
63. Which of the following statements is true of cooperative advertising?
a. It does not allow retailers to devote effort to the manufacturer’s lines.
b. It resolves the impracticality of listing all the dealers of the brand in national advertising.
c. It doubles the revenue generation for the retailer.
d. It cannot be used for advertising through radio.
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64. Nikki owns a small plant nursery. Every spring, when people start planting their gardens, she frequently advertises in
the local newspaper. In the context of media scheduling, which of the following types of media schedule does the given
scenario exemplify?
a. A continuous media schedule
b. A flighted media schedule
c. A pulsing media schedule
d. A seasonal media schedule
65. Which of the following is an example of unmeasured media ad spending?
a. Cable TV
b. Magazines
c. Catalogs
d. Newspapers
66. Explain the importance of media planning in advertising.
67. Discuss the effects of advertising on consumers.
68. Explain with an example how marketers manage unfavorable publicity during a crisis.
69. How is a sales promotion cheaper and easier to measure than advertising? Explain using an example.
70. Describe the emergence of the Internet as a tool for sales promotion.
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Answer Key
1. False
2. False
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