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1. Newspapers and magazines have a high noise level.
a.
True
b.
False
ANSWER:
True
2. A trade allowance is a price reduction offered by retailers to customers who are buying homogeneous shopping goods.
a.
True
b.
False
ANSWER:
False
3. Online advertising includes search engine marketing, display advertising, social media advertising, e-mail marketing,
and mobile marketing.
a.
True
b.
False
ANSWER:
True
4. 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
ANSWER:
False
5. The selection of media is not dependent on promotional objectives, the appeal, or executional style of advertising.
a.
True
b.
False
ANSWER:
False
6. People who buy a competitor’s product most or all of the time are price buyers.
a.
True
b.
False
ANSWER:
False
7. Serious or emotional advertisements are largely used to change consumers’ deeply rooted values and attitudes.
a.
True
b.
False
ANSWER:
False
8. In infomercials, companies put ad messages in web-based, mobile, console, or handheld video games to advertise or
promote a product, service, organization, or issue.
a.
True
b.
False
ANSWER:
False
9. Experiential marketing is the coordinated effort to handle the effects of unfavorable publicity, ensuring fast and
accurate communication in times of emergency.
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a.
True
b.
False
ANSWER:
False
10. The Federal Trade Commission does not allow the identification of competing brands in comparative advertising.
a.
True
b.
False
ANSWER:
False
11. People who buy the same product most or all of the time are brand switchers.
a.
True
b.
False
ANSWER:
False
12. In a free-press environment, publicity is easily controlled in a crisis.
a.
True
b.
False
ANSWER:
False
13. Corporations often use advocacy advertising to express their views on controversial issues.
a.
True
b.
False
ANSWER:
True
14. Advertising can affect the way consumers rank a brand’s attributes.
a.
True
b.
False
ANSWER:
True
15. Intermediaries receive push money as a bonus for pushing the manufacturer’s brand through the distribution channel.
a.
True
b.
False
ANSWER:
True
16. In the context of campaign evaluation, testing ad effectiveness can be done only after the advertising campaign is
over.
a.
True
b.
False
ANSWER:
False
17. If an advertiser wants to enhance the sales of a specific good or service, institutional advertising should be used.
a.
True
b.
False
ANSWER:
False
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18. Unlike radio, a magazine has a relatively long life span, which is further increased by a high pass-along rate.
a.
True
b.
False
ANSWER:
True
19. Unique selling proposition refers to the process of using game mechanics and a gaming mindset to engage an
audience; it is increasingly important for marketers to know about and utilize.
a.
True
b.
False
ANSWER:
False
20. 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
ANSWER:
False
21. Experiential marketing involves minimal engagement with a brand’s consumers.
a.
True
b.
False
ANSWER:
False
22. Advertisements of Brita LED (Light Emitting Diode) Lightings are in the form of comparative advertising to
emphasize the benefits of using LEDs over CFLs (Cathode Filament Lamps). The advertisements 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.
Fun and pleasure
ANSWER:
b
23. Which of the following statements is true of executional styles for advertising?
a.
It often dictates 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.
Advertisers seldom use humor as an executional style for routine purchases.
d.
It remains constant for marketing campaigns in the political realm.
ANSWER:
a
24. 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.
ANSWER:
b
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25. Understanding the advertising response function helps marketers:
a.
invest a large amount of money on advertising and promotion.
b.
use their advertising budgets wisely to suit the target market.
c.
multiply returns by constantly increasing the money spent on advertising.
d.
achieve consumer loyalty regardless of the quality of the product or service.
ANSWER:
b
26. Magnira Corp., a manufacturer of hygiene and personal care products, launches a new toothpaste “Tidy” that claims to
be more effective in maintaining oral hygiene than other brands. The advertisements of Tidy provide valid research
information. Which executional style of advertising does Magnira use?
a.
Scientific
b.
Slice-of-life
c.
Spokesperson
d.
Mood or image
ANSWER:
a
27. Pioneering advertising is heavily used during the _____ of the product life cycle.
a.
introductory stage
b.
growth stage
c.
formative stage
d.
conception stage
ANSWER:
a
28. _____ is the element in the promotional mix that evaluates the public’s attitudes, identifies issues that may elicit their
concern, and executes programs to gain their understanding and acceptance.
a.
Personal selling
b.
Cooperative advertising
c.
Sales promotion
d.
Public relations
ANSWER:
d
29. _____ 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
ANSWER:
a
30. _____ 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
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ANSWER:
c
31. 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
ANSWER:
a
32. _____ is the series of decisions advertisers make regarding the selection and use of media, enabling the marketer to
optimally and cost-effectively communicate the message to the target audience.
a.
Media planning
b.
Cost per click
c.
Media fragmentation
d.
Cross-media advertising
ANSWER:
a
33. Kriyoto Inc. is a manufacturer of printers, scanners, and other office equipment. It announces a cash refund for
corporate purchases in large quantities. Rick purchases 20 color printers for his office from Kriyoto during this sale. To
avail the cash refund, he needs to fill out a form provided by Kriyoto and email proof of purchase along with the form. In
this case, which of the following types of sales promotions does Kriyoto offer?
a.
Premium
b.
Bonus
c.
Coupon
d.
Rebate
ANSWER:
d
34. 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 are directed to members of the marketing channel, such as wholesalers and retailers.
c.
Both aim to increase sales by using point-of-purchase display.
d.
Both aim to segment a market based on its characteristics.
ANSWER:
a
35. Unlike trade sales promotion methods, consumer sales promotion methods are:
a.
targeted at the ultimate consumer market.
b.
directed to members of the marketing channel.
c.
focused on persuading consumers to make slow purchases.
d.
concerned with offering free merchandise and store demonstrations.
ANSWER:
a
36. 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 is used to enhance a company’s image rather than promote a particular product.
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d.
It is used mainly to compare brands on one or more specific attributes.
ANSWER:
a
37. Fournotts Corp., a sports shoe manufacturer, launches a new line of sports shoes. As a part of its promotion, Fournotts
Corp invites its customers to try on the shoes for a period of one week and get a feel of its features. This is an example of
_____.
a.
corporate communication
b.
sponsorship
c.
product placement
d.
experiential marketing
ANSWER:
d
38. _____ is a form of institutional advertising.
a.
Advocacy advertising
b.
Pioneering advertising
c.
Competitive advertising
d.
Comparative advertising
ANSWER:
a
39. New brands with small market shares tend to spend higher on advertising and sales promotions than those with large
market shares because:
a.
a certain minimum level of exposure is needed to measurably affect purchase habits.
b.
spending more will inhibit the advertising response function.
c.
returns multiply beyond a certain level of spending.
d.
the value of market shares is directly proportionate to the amount of money spent on advertising.
ANSWER:
a
40. Which of the following is a difference between pioneering advertising and competitive advertising?
a.
Pioneering advertising is used to promote a company’s image, whereas competitive advertising is used to
manage customer criticisms.
b.
Pioneering advertising is a form of institutional advertising, whereas competitive advertising is a form of
advocacy advertising.
c.
Pioneering advertising is used during a product’s introductory stage, whereas competitive advertising is used
during a product’s growth stage.
d.
Pioneering advertising compares competing brands, whereas competitive advertising is intended to stimulate
primary demand for a new product.
ANSWER:
c
41. Eatalia is a popular chain of restaurants for authentic Italian food. Recently, a customer found a dead insect in the
pasta he was served. The customer’s negative review about the restaurant went viral. Eatalia’s Chief Executive Officer
(CEO) publicly apologized for the mishap and posted pictures of the restaurant’s kitchen, after being fumigated, on several
social networking websites. In this scenario, which of the following does Eatalia’s CEO demonstrate?
a.
Audience selectivity
b.
Crisis management
c.
Brand switching
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d.
Media scheduling
ANSWER:
b
42. Which of the following is true of advertising?
a.
It is of less value for new entrants in the market.
b.
It ensures constant sales and market share improvements.
c.
It influences attitudes, beliefs, and ultimately, consumers’ purchases.
d.
It can change consumers’ deeply rooted values and attitudes.
ANSWER:
c
43. Duski, a very expensive brand of clothing and accessories, promotes its products by appointing famous personalities
as its brand ambassador. Given this information, which of the following advertising appeals is used by Duski?
a.
Health
b.
Fear
c.
Convenience
d.
Admiration
ANSWER:
d
44. 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 manufacturer in national advertising.
c.
It requires retailers to bear the entire cost of advertising the manufacturer’s brand.
d.
It cannot be used for advertising through radio.
ANSWER:
b
45. 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.
ANSWER:
a
46. 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. In this case, which of the following types of sales promotions does Kelly’s Kitchen offer?
a.
Trade allowance
b.
Push money
c.
Rebate
d.
Premium
ANSWER:
d
47. Identify a true statement about an advertising campaign.
a.
It circumvents the need for post-campaign evaluation.
b.
It extends for a defined period of time.
c.
It cannot focus on more than one advertising appeal.
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d.
It does not use humor to promote a theme.
ANSWER:
b
48. 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 phase
b.
growth phase
c.
formative phase
d.
decline phase
ANSWER:
b
49. Tread Inc., a sports shoe manufacturing company, began its campaign by spending one million dollars on advertising.
Currently, Tread Inc. spends 200 million dollars on advertising. Initially, the advertisements contributed to the gradual
increase in returns, but the company now confronts diminishing returns. In this scenario, which of the following
phenomena explains Tread Inc.’s diminishing returns?
a.
A unique selling proposition
b.
The advertising response function
c.
Switch and bait advertising
d.
Strategic advertising
ANSWER:
b
50. 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
ANSWER:
b
51. 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.
d.
nonstore retailing.
ANSWER:
a
52. 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
ANSWER:
b
53. _____ is a public relations strategy that involves getting a product, service, or company name to appear in a movie,
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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.
Cooperative advertising
ANSWER:
b
54. Rue’s Hunting Emporium sells hunting equipment. The store advertises its equipment in a popular magazine every
Monday. It also plans to put out a television commercial every Thursday at 5:00 p.m. for a period of three months. When
a new or revised equipment is introduced, the products are steadily advertised 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
ANSWER:
c
55. A disadvantage of newspaper advertising is that:
a.
it has low geographic selectivity and flexibility.
b.
it encounters distractions from competing ads and news stories.
c.
it seldom lends itself well to cooperative advertising.
d.
it lacks news value, immediacy, and year-round readership.
ANSWER:
b
56. An alternative to a commercial spot is _____, a thirty-minute or longer advertisement, which is relatively inexpensive
to produce and air.
a.
a podcast
b.
a premium
c.
sweepstakes
d.
an infomercial
ANSWER:
d
57. Which of the following models does an advertising campaign often follow?
a.
BCG matrix
b.
IMC model
c.
AIDA model
d.
SWOT matrix
ANSWER:
c
58. Which of the following is a difference between an attribute and a benefit of a product?
a.
An attribute includes pleasure or improved health, whereas a benefit includes an easy-open package or a
special formulation.
b.
An attribute cannot be experienced by consumers, whereas a benefit is tangible and can be experienced.
c.
An attribute is the goal to sell a product, whereas a benefit is an apparent part of a product.
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number of contest entries received.
d.
An attribute is simply a feature of a product, whereas a benefit is what consumers receive by using a product.
ANSWER:
d
59. _____ 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
ANSWER:
c
60. In the context of the effects of advertising, humorous advertising:
a.
is not effective when used to reinforce and remind loyal customers about the benefits of a product.
b.
is effective in changing consumers’ deeply rooted values and attitudes.
c.
is not used to publicize new brands introduced in the market.
d.
is effective at shaping attitudes when consumers already have a positive image of an advertised brand.
ANSWER:
d
61. Unlike magazine advertising, radio advertising:
a.
provides maximum flexibility.
b.
has longer lead time.
c.
poses difficulty in communicating humor.
d.
has long-term advertiser commitments.
ANSWER:
a
62. Discuss the effects of advertising on consumers.
ANSWER:
Answers will vary. Advertising affects peoples’ daily lives, informing them about products and services and
influencing their attitudes, beliefs, and ultimately, their purchases. Advertising affects the television
programs people watch, the content of the newspapers they read, the politicians they elect, the medicines
they take, and the toys their children play with. Consequently, the influence of advertising on the U.S.
socioeconomic system has been the subject of extensive debate in nearly all corners of society.Though
advertising cannot change consumers’ deeply rooted values and attitudes, advertising may succeed in
transforming a person’s negative attitude toward a product into a positive one.Advertising also reinforces
positive attitudes toward brands. A brand with a distinct personality is more likely to have a larger base of
loyal customers and market share. The more consistent a brand’s personality, the more likely a customer will
build a relationship with that brand over his or her lifetime.Advertising can also affect the way consumers
rank a brand’s attributes. In years past, car ads emphasized such brand attributes as roominess, speed, and low
maintenance. Today, however, car marketers have added technology, safety, versatility, customization, and
fuel efficiency to the list.
63. How is sales promotion cheaper and easier to measure than advertising? Explain using an example.
ANSWER:
Answers will vary. Sales promotion is usually cheaper than advertising and easier to measure. A major
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64. Explain with an example how marketers manage unfavorable publicity during a crisis.
ANSWER:
Answers will vary. Although marketers try to avoid unpleasant situations, crises do happen. In our free-press
environment, publicity is not easily controlled, especially in a crisis. Crisis management is the coordinated
effort to handle the effects of unfavorable publicity, ensuring fast and accurate communication in times of
emergency.When the Villa Fresh Italian Kitchen ran “Dub the Dew,” an online contest to name a green
apple-flavored variety of Mountain Dew exclusive to the restaurant, it was not long before Internet trolls
descended. These digital pranksters submitted absurd and offensive names, then voted their submissions to
the top of the contest leaderboard en masse. The contest’s website was quickly taken offline, and Mountain
Dew tweeted that the contest “lost to the internet.” In an attempt to manage the crisis, the Villa Fresh Italian
Kitchen issued an apologetic statement.
65. Explain how online games are used for advertising.
ANSWER:
Answers will vary. A popular Internet advertising format is advergaming, whereby companies put ad
messages in web-based, mobile, console, or handheld video games to advertise or promote a product, service,
organization, or issue. Gamification, the process of using game mechanics and a gaming mindset to engage
an audience, is increasingly important for marketers to know about and utilize. Challenges, rewards,
incentives, and competition are all important aspects in social media games likeCandy Crush SagaandClash
of Clans. Some games amount to virtual commercials; others encourage players to buy in-game items and
power-ups to advance; and still others allow advertisers to sponsor games or buy ad space for product
placements. Many of these are social games, played on Facebook or mobile networks, where players can
interact with one another. Social gaming has a huge audience—according to Facebook CEO Mark
Zuckerberg, 235 million people play social games on Facebook every month. The Facebook gaming market
is projected to more than double in the next three years, attracting 554 million people and generating $5.6
billion.
66. Explain the importance of media planning in advertising.
ANSWER:
Answers will vary. A major decision for advertisers is the choice of medium—the channel used to convey a
message to a target market. Media planning, therefore, is the series of decisions advertisers make regarding
the selection and use of media, enabling the marketer to optimally and cost-effectively communicate the
message to the target audience. Specifically, advertisers must determine which types of media will best
communicate the benefits of their product or service to the target audience and when and for how long the
advertisement will run.Promotional objectives and the appeal and executional style of the advertising
strongly affect the selection of media. Both creative and media decisions are made at the same time: creative
work cannot be completed without knowing which medium will be used to convey the message to the target
market. In many cases, the advertising objectives dictate the medium and the creative approach to be used.
For example, if the objective is to demonstrate how fast a product operates, a television commercial that
shows this action may be the best choice.