4) Which of the following statements is true of public relations?
A.This medium of promotion lacks credibility.
B.The relative cost of public relations is very low.
C.The absolute cost of public relations is very high.
D.Public relations messages are subject to a lot of clutter.
E.Public relations is ineffective in generating sales leads.
5) The _____ is a government regulation that is increasingly being used by companies
for filing lawsuits against competitors they believe are making false claims.
A.Federal Trade Commission Act
B.Wheeler-Lea Amendment
C.Lanham Act
D.Robinson-Patman Act
E.Clayton Antitrust Act
6) A fatal accident at the production facility of GA Inc., a mobile manufacturer, has
killed 58 factory workers. The company is now perceived negatively among customers.
In an attempt to revive its reputation, the company has hired Adam Murphy, a popular
golfer, as its spokesperson. Murphy is a distinguished personality and is well-known for
his philanthropic activities. Murphy, being a credible source, can help GA restore its
tainted reputation by:
A.acting as a positive source derogation.
B.inhibiting counterarguments about the company and its products.
C.eliminating advertising clutter.
D.attempting to change consumer buying patterns.
E.stimulating consumers to purchase the company’s products.