1) Which of the following statements is true of self-regulation of advertising?
A.Self-regulation of advertising is typically restricted to liquor and tobacco
advertisements.
B.Self-regulation was initially introduced to eliminate the problem of puffery.
C.Self-regulation of advertising has led to the development of more lenient standards
and practices than those imposed by the legislation.
D.The advertising industry views self-regulation as an effective mechanism for
controlling advertising abuses.
E.The advertising industry prefers government intervention over self-regulation.
2) Which of the following statements about publicity is true?
A.Publicity always originates within a firm and is paid for by the firm.
B.Publicity is used to generate news about a person, and not a product or service.
C.Public relations is, in reality, a subset of the publicity effort.
D.Publicity is typically a short-term strategy.
E.Publicity is designed to provide only positive information about a firm.
3) A software development company runs an advertising campaign for one of its
products emphasizing that it is the most preferred financial software brand. The ad also
states, “Thousands of customers have switched over to our software.” The company is
making use of a(n) _____ appeal.
A.emotional
B.news
C.product popularity
D.product feature
E.favorable price
4) Robert is working in the advertising department of a large consumer-product
company. He suggests that the company use the DAGMAR approach for setting
advertising goals. Which of the following statements is Robert likely to hear as an
argument against the use of the DAGMAR approach?
A.Communication should be the measure of advertising effectiveness rather than
sales-oriented goals.
B.The DAGMAR approach is too creative and leads to difficulty in understanding.
C.DAGMAR can be quite expensive due to research costs and is, therefore, not suitable
for large companies.
D.DAGMAR is too concerned with quantitative assessment of a campaign’s impact on
awareness.
E.DAGMAR is appropriate only in case of direct-response advertising.
5) Floor displays, island showcases, electronic signs, and other forms of advertising that
appear in train or subway stations and airline terminals are all forms of:
A.transit advertising.
B.aerial advertising.
C.buzz marketing.
D.branded entertainment.
E.above-the-line advertising.
6) _____ is a system whereby the commissions average from 8 to 10 percent or are
based on a sliding scale that becomes lower as the clients’ media expenditures increase.
A.Negotiated commission system
B.Fixed-fee commission system
C.Cost-plus commission system
D.Incentive commission system
E.Pro-rata commission system
7) A campaign run by the manufacturers of Glad garbage bags informs viewers that
Glad garbage bags are twice as thick as those made by Crash Bin Bags, the leading
garbage bag brand in the market. In this scenario, Glad is using a(n) _____ appeal.
A.emotional
B.competitive advantage
C.product popularity
D.favorable price
E.news
8) Which of the following is an advantage of indoor transit advertising?
A.Long length of exposure
B.Elimination of waste coverage
C.No copyright limitations
D.Accurate measurement of audience mood
E.Selectivity based on audience lifestyle
9) Which of the following is a reason for not measuring the effectiveness of
promotional campaigns?
A.It is difficult to isolate the effects of promotional elements.
B.It is not useful for evaluating alternative strategies.
C.It typically increases economies of scale.
D.It does not lead to an increase in the efficiency of advertising.
E.It is impossible to determine if objectives are achieved.
10) _____ is a system of marketing by which organizations communicate without
intermediaries to the target customers to generate a response or transaction.
A.Sales promotion
B.Word-of-mouth marketing
C.Synchro marketing
D.Direct marketing
E.Publicity