1) A disadvantage of transit advertising is its inability to provide exposure to a large
number of people.
2) In network advertising, the advertiser has to deal with only one party or media
representative to air a commercial nationwide.
3) The Wheeler-Lea Act withdrew the Federal Trade Commission’s (FTC’s) power to
regulate advertising.
4) Marketers often go after the entire market with one product, brand, or service
offering to create the maximum impact.
6) While positioning by product class, marketers only position against brands, and not
against other product categories.
7) Defenders of advertising say it is unrealistic to attribute a firm’s market dominance
and barriers to entry solely to advertising.
8) Premium brands positioned at the high end of the market usually use the
price/quality approach to positioning.
9) A model/celebrity, when used as an indirect source, delivers the main message of an
advertisement.
10) Creating an image or culture around the CEO protects the corporate brand image
from being affected by controversy.
11) During the persuader stage, the firm’s selling involves defining the buyer’s problems
and their solutions through active buyer-seller collaboration.
12) Radio often provides advertisers with a very receptive environment for their
advertising messages.
13) The two-step approach to direct marketing essentially relies on only one medium to
generate a sales response.
14) When immediate impact is not the objective and repeated exposure will give the
audience members opportunities to draw their own conclusions, a closed-ended
message is ideal.
15) Which of the following response hierarchy models depicts consumers going
through the successive stages of awareness, interest, evaluation, trial, and adoption?
A.The AIDA model
B.The hierarchy of effects model
C.The innovation adoption model
D.The information processing model
E.The adoption differentiation model
16) The _____ step of Young’s creative process model deals with taking the
information, working it over, and wrestling with it in the mind.
A.reality
B.incubation
C.digestion
D.verification
E.immersion
17) Which of the following is an inherent disadvantage of television advertising?
A.Fleeting nature of messages
B.Lack of cost efficiency
C.Lack of flexibility
D.Limited captivity
E.Limited coverage
18) Since imports take a larger share of the domestic market for many products, it has
become increasingly important for U.S. companies to:
A.take collective measures to be sustainable in the domestic market.
B.allocate additional funds for publicity.
C.adopt an international marketing orientation.
D.invest heavily in import-oriented businesses.
E.seek government aid to restrict further imports.
19) Which of the following is a plausible reason to argue that advertisers do not exert
undue influence over the media?
A.Media does not often show advertisements with sexual content.
B.Advertisements help the media reduce its costs of operation.
C.Only a few large companies are influenced by the effect of biased advertising.
D.An advertiser needs the media more than the media needs any individual advertiser.
E.Only minor media companies are subject to economic censorship by influential
brands.
20) Offering quality products that command a premium price, providing superior
customer service, having the lowest production costs and lower prices, or dominating
channels of distribution are ways of:
A.achieving competitive advantage.
B.practicing cross-merchandising strategy.
C.creating market space.
D.practicing bait-and-switch marketing.
E.establishing a marketing-stub.
21) According to the concave-downward model:
A.the effects of advertising quickly begin to diminish.
B.the carryover effect is especially true for low-priced, frequently purchased consumer
products.
C.sales decrease rapidly if the price is too high.
D.initial outlays of the advertising budget have little impact on sales.
E.sales are not directly related to the size of the advertising budget.
22) Studies conducted to examine the combination of advertising and personal-selling
efforts have shown that it is likely to:
A.reduce effectiveness.
B.weaken the image of sales reps.
C.reduce reach.
D.increase costs.
E.increase probability of sale.
23) Sales promotion is growing in international markets due to:
A.the deregulation and/or privatization of media.
B.the reduction in the number of global brands.
C.increased global literacy.
D.the way news media responds to press releases.
E.greater risks taken by marketers.
24) Which of the following is used to execute an ad wherein excitement and suspense
are used to tell a short story with a product as the star of the ad?
A.Slice-of-life
B.Animation
C.Dramatization
D.Testimonial
E.Imagery
25) Which of the following is an example of a direct marketing effort by a company?
A.Selling through salespeople
B.Selling through resellers
C.Missionary selling
D.Territory distribution
E.Advertising
26) Marketers should draw definite conclusions in their advertising messages when:
A.the audience is highly educated.
B.the product requires emotional involvement.
C.immediate action is an objective.
D.high audience involvement is required.
E.the message is simple and likely to be easily understood by the audience.
27) Which of the following statements is true about source credibility?
A.The influence of a knowledgeable source will be increased if audience members
think he or she has underlying personal motives for advocating a position.
B.Enhanced counterarguing should result in greater message acceptance and
persuasion.
C.The persuasiveness of a low-credibility source may decline over time due to the
sleeper effect phenomenon.
D.A very credible source is more effective when message recipients are not in favor of
the position advocated in a message.
E. Advertisers can increase the perception that their sources are trustworthy by using
hidden cameras to show that a consumer is a paid spokesperson.
28) A study conducted by Roobina Ohanian about consumers’ perceptions of celebrity
endorsers found that the characteristic which influenced consumers’ intentions to
purchase a product endorsed by a celebrity is his or her perceived:
A.expertise.
B.attractiveness.
C.trustworthiness.
D.similarity.
E.likability.
29) According to Standard Rate and Data Service’s (SDRS’s) classification of
magazines, _____ magazines are bought by the general public for information and/or
entertainment.
A.niche
B.consumer
C.business
D.national
E.industrial
30) The _____ method of budgeting is being employed when expenditures are allocated
based on the industry averages of advertising expenditures. The budget is set to
maintain a level consistent with industry spending.
A.arbitrary allocation
B.percentage-of-sales
C.objective and task
D.return on investment
E.competitive parity
31) According to McCann-Erickson’s concept of emotional bonding, the strongest
relationship that develops between a brand and a consumer is based on:
A.the product’s benefits.
B.the brand’s personality.
C.an emotional attachment to the brand.
D.rational motives.
E.the product’s competitive advantage over similar products in the market.
32) Which of the following is an advantage of publicity?
A.High control over the information being conveyed
B.Control over the timing of information release
C.Accuracy of the information being publicized
D.Control over any inappropriate word-of-mouth marketing
E.Perception of being endorsed by the media
33) Which of the following is true of decoding?
A.It is heavily influenced by the receiver’s frame of reference.
B.It is an interpretation process that requires expert knowledge.
C.In most cases, decoding occurs smoothly when a common ground does not exist.
D.In order for the process to be effective, the decoder must contradict the encoder.
E.It is not influenced by the receiver’s field of experience.
34) Every time Beth buys a book at The Venus Bookstore, she presents her Venus card,
and the sales associate enters her purchase in a database. When she has purchased five
books at regular price, she is sent a coupon for a free book to be picked out on her next
visit to the store. This is an example of a:
A.sweepstakes program.
B.frequency program.
C.customer rewards contest.
D.premium promotion.
E.rebate program.