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Answer Key
1. B
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45. D
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91. plain-folks
1. More than half of each hour of network television includes some form of paid
sponsorship.
A) True
B) False
2. In an effort to attract more viewers, the four major TV networks have reduced the
number of commercials aired during prime time.
A) True
B) False
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3. According to historians, advertising has existed since 3000 B.C.E., when wooden or
stone signs were placed outside shops in ancient Babylon.
A) True
B) False
4. About 80 percent of early newspaper and magazine advertisements covered three
subjects: land sales, transportation announcements, and runaway slaves.
A) True
B) False
5. Before the 1830s, there was little need for advertising in America because there were
few goods available for sale and virtually no consumer market.
A) True
B) False
6. Some of the first American advertising agencies were space brokers, who bought space
in newspapers and sold it to their clients.
A) True
B) False
7. Patent medicines marketed in the late 1800s were generally harmless, since they
consisted mostly of flavored water.
A) True
B) False
8. One twentieth-century trend associated with advertising was the transition from a
producer to a consumer society.
A) True
B) False
9. The Ad Council produces public service announcements (PSAs) at no cost to the client.
A) True
B) False
10. In an attempt to minimize government oversight of advertising practices, the advertising
industry established the Better Business Bureau in 1913.
A) True
B) False
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11. In the advertising industry, there are about fourteen thousand mega-agencies in the
United States.
A) True
B) False
12. Mega-agencies are not seen as a threat to the independence of smaller advertising firms.
A) True
B) False
13. WPP is one of the four global mega-agencies that control over half the world’s
advertising revenues.
A) True
B) False
14. Even though boutique agencies give creative people the freedom to do good work, they
haven’t been able to attract any major clients.
A) True
B) False
15. It costs large-volume advertisers much more money to use an ad agency than to use their
own staff to create an ad.
A) True
B) False
16. By 2020, Emarketer.com predicts that radio and television ad spending will overtake
mobile ad spending.
A) True
B) False
17. In 2006, Google unveiled Analytic 360 as a way of reading consumers Gmail accounts.
A) True
B) False
18. Google earns the most online advertising revenue.
A) True
B) False
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19. One of the benefits of online advertising is that it tends to protect the privacy of
consumers who use the Internet.
A) True
B) False
20. Because of the backlash against social networking Web sites, advertisers are moving
their advertising dollars back to traditional media outlets like television and radio.
A) True
B) False
21. Most advertisements provide little information about how a product was made or how it
compares with similar brands.
A) True
B) False
22. The bandwagon effect is an advertising strategy that plays on consumers’ sense of
insecurity.
A) True
B) False
23. Ad agencies rarely use irritation advertising to sell products because people hate it and it
doesn’t work.
A) True
B) False
24. Ads that portray women as sex objects exemplify the association principle.
A) True
B) False
25. Ads featuring the Marlboro cowboy use a persuasive strategy based on the association
principle.
A) True
B) False
26. The Marlboro cigarette brand was originally designed for and targeted at female
consumers.
A) True
B) False
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27. The disassociation corollary in advertising plays off the public’s skepticism regarding
large, impersonal corporations.
A) True
B) False
28. According to myth analysis, most ads are composed of mini-stories involving conflict
between people or values.
A) True
B) False
29. Product placement is an advertising strategy that puts products into movies, television
shows, and video games.
A) True
B) False
30. Commercial speech is a right guaranteed by the First Amendment.
A) True
B) False
31. Television networks have been known to refuse to air issue-based advertising that might
upset their traditional advertisers.
A) True
B) False
32. Most people are easily persuaded by advertising.
A) True
B) False
33. The Children’s Television Act of 1990 severely limits program-length commercials and
ads promoting sugar-coated cereal.
A) True
B) False
34. Advertising has been increasingly targeted at children and teenagers because they
influence roughly $500 billion in family spending every year.
A) True
B) False
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35. Tobacco ads disappeared from American television in 1962.
A) True
B) False
36. Under the 1998 tobacco settlement, all of the major cigarette companies agreed to pull
their advertising from general audience magazines that had young readers.
A) True
B) False
37. After agreeing to a costly settlement with several states in 1998, the tobacco industry
reduced its advertising spending to almost zero that year.
A) True
B) False
38. Cigarette companies have had difficulty advertising and selling their product in foreign
countries.
A) True
B) False
39. Unlike tobacco ads, alcohol ads have yet to target minority populations.
A) True
B) False
40. The Federal Trade Commission can require advertisers to run spots correcting their
deceptive ads.
A) True
B) False
41. Only wealthy political candidates can afford to have a significant advertising presence
on television.
A) True
B) False
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42. About 80 percent of ads in colonial newspapers concerned land sales, transportation
announcements, and ______.
A) restaurants and pubs
B) runaway slaves
C) job notices
D) pistols and other firearms
E) patent medicines
43. Which of the following was an early brand name in the United States?
A) Eastman Kodak
B) Levi Strauss
C) Quaker Oats
D) Campbell Soup
E) All of the options are correct.
44. The high price of such consumer products as designer jeans and breakfast cereal can be
attributed primarily to ______.
A) the cost of raw materials
B) manufacturing costs
C) distribution expenses
D) advertising
E) a dramatic improvement in quality of materials and manufacturing
45. The public became increasingly cynical about advertising in the late 1890s and early
1900s because ______.
A) manufactured products always cost more than their advertised price
B) advertised products were frequently not available
C) advertisers forced newspapers to omit stories about their competitors
D) patent medicines made outrageous claims about what they could cure
E) society had become more urban and more trusting
46. Along with patent medicine companies, what was another prominent newspaper
advertiser in the 1890s?
A) Auto manufacturers
B) Travel agents
C) Department stores
D) Movie theaters
E) Labor unions
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47. In the twentieth century, advertising ______.
A) influenced the change from a producer-driven to a consumer-driven economy
B) stimulated demand for new products
C) showed how new products improved daily life
D) spread messages about new products across the country
E) All of the options are correct.
48. By the early 1900s, most advertisements were written to appeal to women, who
constituted ______ of newspaper and magazine readers.
A) 30 percent
B) 50 to 60 percent
C) 70 to 80 percent
D) 99 percent
E) None of the options are correct.
49. Hidden or disguised print or visual messages are called ______.
A) subliminal advertising
B) slogans
C) public service announcements
D) saturation advertising
E) spam
50. Which of the following is one of the WPP Group’s top competitors?
A) Omnicom
B) Ogilvy & Mather
C) J. Walter Thompson
D) Peterson Milla Hooks
E) None of the options are correct.
51. Which of the following statements about boutique advertising agencies is false?
A) Designers and artists might have formed them in order to have more creative
freedom.
B) Many have been bought up by larger agencies, but may still operate
semi-independently.
C) They cater to large clients like Gap and Kmart, just like the mega-agencies do.
D) They are too small and don’t have the staff to offer their clients personalized
service.
E) All of the options are correct.
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52. Which statement about the Super Bowl and advertising is correct?
A) Average cost for a 30-second commercial in Super Bowl 50: $4.8 million.
B) In 1973 a 30-second ad topped $100,000.
C) The biggest percent increase in the price of a commercial was in 1968 (35%).
D) The second biggest increase in the price of a commercial was in the second year of
the Super Bowl, 2000 (31%), when Pets.com and 16 other Internet upstarts shoveled
cash from venture capital and stock offerings into the game amid the dot-com bubble.
E) All the options are correct.
53. Which of the following are the three primary consumer motivations that the VALS
strategy considers when grouping consumers into types?
A) Ideals, achievement, and self-expression
B) Strivers, survivors, and thinkers
C) Achievers, strivers, and survivors
D) Ideals, achievers, experiencers
E) Achievement, self-expression, morals
54. In advertising, ______ coordinate the views and needs of clients, the creative team, and
consumers to create an effective marketing strategy.
A) writers
B) space brokers
C) account planners
D) media doctors
E) media buyers
55. The ______ is the blueprint or roughly drawn comic strip of a potential ad.
A) focus group
B) storyboard
C) VALS strategy
D) PSA
E) space broker
56. Online advertising has taken the form of ______.
A) banner ads that lead across the top or side of a Web page
B) pop-under ads
C) interstitials and flash multimedia
D) paid search engine advertising
E) All of the options are correct.
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57. Which of the following statements is true about the unsolicited commercial e-mail
known as spam?
A) Most companies have stopped using it because consumers find it annoying.
B) It accounted for more than 85 percent of e-mail messages by 2010.
C) It is the only way advertisers can use the Internet to attract customers.
D) It is the dominant format of Web advertising.
E) None of the options are correct.
58. The dominant form of Web advertising is ______.
A) interstitials
B) pop-up and pop-under ads
C) paid search advertising
D) spam
E) viral videos
59. How do advertisers direct targeted ads to specific Web site visitors?
A) They use cookies to collect information about a user’s Web activity.
B) They send surveys in the mail.
C) They ask for permission to use targeted ads.
D) They conduct psychographic surveys by phone.
E) None of the options are correct.
60. What advantage does smartphone advertising have over Internet advertising?
A) The ads are smaller so advertisers don’t have to write as much copy.
B) People will definitely see a smartphone ad because they are always checking their
phones.
C) Smartphone ads can be tailored to a specific geographic location or user
demographic.
D) Smartphone ads need to be more general.
E) None of the options are correct.
61. Which of the following is a side effect of the growth of Internet advertising?
A) More and more advertisers are moving ad spending away from traditional media to
the Internet.
B) Search engines like Google are becoming leading advertising companies.
C) E-mail inboxes are bombarded with spam.
D) Social networking sites gather user information for advertising purposes.
E) All of the options are correct.