1) There is a general agreement that advertising questions existing stereotypes and
creates greater social awareness.
2) The major advantage of day-after recall tests is realism.
3) The role of account representatives is likely to disappear as agencies and their clients
are beginning to liaise directly with each other.
4) A TV commercial viewed by a person who lives alone is an example of
communication through a personal channel.
5) Regulatory concerns never play a major role in the advertising decision-making
process.
6) According to classical conditioning theory, there is no pre-existing relationship
between an unconditioned stimulus and unconditioned response.
7) An inside-out planning process for integrated marketing communications (IMC)
starts with the customer and builds backward to the brand.
8) The cognitive learning theory has been criticized for assuming a mechanistic view of
the consumer that puts too much emphasis on external stimulus factors.
9) Corporate advertising does not promote any one specific product or service.
10) A typical direct-response agency does not include a creative department.
11) Which of the following statements is true of media departments?
A.Their brief is primarily creative.
B.They lack the ability or the authority to negotiate prices.
C.They review information on demographics and radio listenership.
D.They are in charge of creating the clients’ advertising message.
E. They are generally headed by an account planner.
12) The pass-along rate refers to the:
A.newspaper advertising rate charged to manufacturers by retailers placing ads for
them.
B.television advertising rate charged to national advertisers.
C.number of persons to whom a magazine copy has been given and who have read it.
D.magazine advertising rate for throw-away publications.
E.percentage of people who skip over an ad while reading a publication.
13) At the initial stage of an international marketing campaign, many American
companies prefer to use an international ad agency based in the U.S. with foreign
offices in other countries. This is because:
A.U.S. agencies are more creative than foreign agencies in terms of advertising
concepts.
B.U.S. agencies understand world markets better than foreign agencies do.
C.U.S.-based agencies give an advertiser better control of the advertising process.
D.U.S.-based agencies generally understand local markets better than agencies located
in these countries.
E.American culture is mostly used as a basis for understanding other cultures.
14) Which of the following statements about the interaction of pricing with advertising
and promotion is true?
A.The positive relationship between high relative advertising and price levels is
weakest for products in the introductory stage of the product life cycle.
B.The positive relationship between high relative advertising and price levels is
weakest for products that are market leaders.
C.Companies with high-quality products suffer the least, in terms of return on
investment, with inconsistent advertising and pricing strategies.
D.Brands with low relative advertising budgets are able to charge premium prices.
E.High relative ad expenditures should accompany premium prices, and low relative ad
expenditures should be tailored to low prices.
15) A(n) _____ is an agreement to stop the practice or advertising in question, is for
settlement purposes only, and does not constitute an admission of guilt by an advertiser.
A.cease-and-desist order
B.consent order
C.ad substantiation agreement
D.affirmative disclosure order
E.injunction
16) In direct marketing situations, when it is necessary to screen or qualify potential
buyers, it is advisable to use:
A.the two-step approach.
B.the one-step approach.
C.direct mail rather than telemarketing.
D.direct-response television.
E.SMRB’s data on direct marketing purchasers.
17) An oil company in the United States develops an advertisement that promotes
offshore oil-drilling in the country. The ad states the availability of oil resources and
stresses the importance of reducing dependence on foreign oil sources. The ad’s goal is
to get members of the public to support offshore drilling. This is an example of:
A.image advertising.
B.trade promotion.
C.direct-response advertising.
D.event sponsorship.
E.advocacy advertising.
18) Diva Boutique, located in Manhattan, relies on external advertising agencies for its
advertising needs, but due to its growing global presence, it is now worried that using
external agencies may lead to inconsistency in delivery of its brand image. It also wants
to maintain tighter control over its advertising and promotional activities. Which of the
following advertising agencies should it adopt?
A.Collateral service agency
B.Buzz marketing agency
C.In-house agency
D.Centralized agency
E.Creative boutique
19) Which of the following is true of the “think globally, act regionally” approach to
international advertising?
A.It is synonymous with the “one company, one advertising campaign” approach.
B.It develops a global brand by using a localized approach.
C.It enables the head office to retain control of aspects such as slogans, themes, and
copies.
D.It offers limited autonomy to regional offices.
E.It is essentially a form of xenocentric advertising.
20) With respect to the roles in the family decision-making process, the person who
exerts power as to what criteria will be used in the selection process while purchasing a
product is called the:
A.influencer.
B.consumer.
C.initiator.
D.purchasing agent.
E.decision maker.
21) Which of the following is a drawback of the cost per thousand system?
A.It fails to standardize relative costing procedures.
B.It does not provide a comparison of media.
C.It may overestimate or underestimate the actual cost-effectiveness.
D.It does not include the TCPM system.
E.It fails to include the brand development index.
22) An advertiser whose message is placed in the middle of five consecutive
commercials during a program break faces the problem of:
A.clutter.
B.media flooding.
C.media bombardment.
D.flighting.
E.information overload.
23) According to the meaning transfer model developed by Grant McCracken, which of
the following statements is true of celebrity endorsers?
A.Credibility and attractiveness can effectively explain how and why celebrity
endorsements work.
B.Celebrity endorsers bring their meanings and images to an ad and transfer them to the
product they are endorsing.
C.The image that celebrities project to consumers is more important than their ability to
attract attention.
D.Once the first two stages of the model have been implemented, the final stage is
simple and easy to achieve.
E. Celebrities’ overexposure to advertisements help marketers achieve the desired
recognition.
24) Mettle Inc., an automaker, hires a popular boxer, Darrell Hilton, as the
spokesperson for its “Save the Globe” campaign, an initiative for preserving the
environment. If viewers of the commercial perceive Darrell as being able to mete out
punishment when citizens don’t comply to environmental policies, then Darrell, as a
message source, is said to have:
A.perceived control.
B.control persuasion.
C.perceived integration.
D.expertise.
E. perceived concern.
25) An agreement which states that Rochelle brand cosmetics would pay a fee to have
its products prominently featured in twenty episodes of the soap opera Proclivity is an
example of:
A.product placement.
B.specialty advertising.
C.promotional products marketing.
D.guerrilla marketing.
E.buzz advertising.