110. _____ provide businesses with copywriters, artists, production coordinators, media experts, researchers, and other
highly skilled specialists.
a. Public relation firms
b. Media companies
c. Advertising agencies
d. Production companies
e. Promotion experts
111. Advertising agencies typically receive:
a. large fees from the companies whose ads they develop and place.
b. a 15 percent commission from the company whose product they are helping advertise.
c. a 10 percent commission from the advertising company and 10 percent from the media they use.
d. a 25 percent commission paid by the media from which it makes purchases.
e. a 15 percent commission paid by the media from which it makes purchases.
Chapter 16 – Advertising and Public Relations
112. The Bentley Agency places $2,500 in radio spots and $17,500 in television spots for Darnell Insurance in June. For
its efforts this month, the agency “traditionally” would receive _____ in compensation from the two media.
a. $2,500
b. $10,000
c. $1,000
d. $5,500
e. $3,000
113. _____ is a broad set of communication activities used to create and maintain favorable relations between the
organization and its stakeholders.
a. Advertising
b. Trade relations
c. A press strategy
d. Public relations
e. Publicity
Chapter 16 – Advertising and Public Relations
114. Monroe works for NASCAR where his responsibilities include maintaining favorable relationships between the
organization and its stakeholders. Monroe is most likely employed in _____.
a. sales
b. advertising
c. human resources
d. public relations
e. digital media marketing
115. Which of the following is not a public relations tool?
a. Feature article
b. Company magazine
c. News release
d. Annual report
e. Product sample
Chapter 16 – Advertising and Public Relations
116. Toyota’s sponsorship of a major Professional Golf Association tournament would be an example of a(n) _____
tool.
a. advertising
b. public relations
c. sales promotion
d. publicity
e. personal selling
117. A major benefit of using event sponsorship is that it:
a. enhances personal selling efforts.
b. provides excellent support for advertisements.
c. can provide large amounts of free media coverage.
d. is cost-free.
e. neutralizes the effects of unfavorable public relations.
Chapter 16 – Advertising and Public Relations
118. Which of the following is the most important consideration when choosing an event to sponsor?
a. Reasonable association between the event and the company’s product
b. The length of the event
c. When the event occurs
d. Whether or not the event is a national or an international event
e. The specific name of the event
119. Recently the local television station communicated a news story about the new specialized medical mart opened by
Cleveland Clinic. The story provided information about the various services that the new medical mart would offer
and how to get in touch with the service providers. This story is most likely an example of _____.
a. institutional advertising
b. publicity
c. public announcement
d. sales promotion
e. direct marketing
Chapter 16 – Advertising and Public Relations
120. Kohl’s, a department store featuring clothing and houseware, communicates in news story form about its
organization and its efforts to support local children’s hospitals. This information is transmitted through mass media
at no charge and is therefore called _____.
a. news reporting
b. public announcement
c. mass communications
d. free advertising
e. publicity
121. Which of the following is the most commonly used type of publicity-based public relations tool?
a. News release
b. Captioned photograph
c. Feature article
d. Press conference
e. Letter to the editor
Chapter 16 – Advertising and Public Relations
122. A single page of typewritten copy that has 300 words or less and describes a company event or product is called a
_____.
a. press story
b. feature article
c. captioned paragraph
d. news release
e. publicity bulletin
123. The public relations department at Lowe’s Home Improvement submits one page of typewritten copy to national
newspapers and news web sites to announce its one-day, nationwide clean-up-local-parks event. This is an
example of a _____.
a. feature article
b. public update
c. news release
d. media bulletin
e. publicity stunt
Chapter 16 – Advertising and Public Relations
124. If a company calls a meeting to announce a major news event, this is known as a _____.
a. media call
b. press conference
c. news release
d. press release
e. public service announcement
125. To announce its development of a solid fuel titanium rocket for the U.S. missile defense system, Unijet
management feels it needs to get wide media coverage. Under these circumstances, which of the following would
be its best alternative?
a. Captioned photograph
b. Feature article
c. Editorial letters
d. Television advertisement
e. Press conference
Chapter 16 – Advertising and Public Relations
126. If researchers at Merck Pharmaceuticals develop a cure for prostate cancer, the best way to announce this to the
public and get wide media coverage would be through a:
a. captioned paragraph.
b. press release.
c. feature article.
d. sponsorship.
e. press conference.
127. Brian is responsible for the promotions and public relations of his firm, which produces rubber tires. A recent
development in technology may change the way in which the rubber for tires is produced, allowing it to be sourced
from the roots of dandelion plants. Brian would like to have a story run on the evening news or in the local
newspaper about this development, but he knows that this story is likely to be rejected by media personnel because
the material is:
a. too long.
b. written at too high a reading level.
c. submitted by an organization that the media does not like.
d. not persuasive enough.
e. not newsworthy.
Chapter 16 – Advertising and Public Relations
128. The limitations in using publicity-based public relations tools stem primarily from the fact that:
a. marketers alter the length of publicity releases.
b. publicity is never properly managed by media personnel.
c. media personnel consider only unfavorable messages as newsworthy.
d. it is time-consuming to convince media personnel that the information is newsworthy.
e. media personnel control the content of the communication.
129. Which of the following is not an advantage of using publicity-based public relations tools?
a. Control by media personnel of the content and timing of messages
b. Credibility
c. Strong news value
d. Follow-up word-of-mouth communications
e. A favorable perception of being endorsed by the media
Chapter 16 – Advertising and Public Relations
130. A firm can identify changes in public opinion that affect it by conducting _____.
a. environmental monitoring
b. consumer polling
c. a consumer jury
d. a communications audit
e. a press conference
131. A content analysis of an organization’s messages, readability studies, and readership surveys are all tools used to
conduct a(n) _____.
a. consumer survey
b. public relations audit
c. environmental audit
d. communications audit
e. social audit
Chapter 16 – Advertising and Public Relations
132. Home Depot is interested in knowing how its efforts to act in a socially responsible manner through its Habitat for
Humanity and disaster relief efforts have affected stakeholders’ views of the company. Home Depot should
conduct a(n) _____.
a. social audit
b. publicity audit
c. environmental audit
d. communications audit
e. environmental impact study
133. One way for a company to measure the effectiveness of its publicity-based public relations efforts is to:
a. tabulate the equivalent in advertising dollars if the time and space were purchased.
b. ask for return of reply cards.
c. calculate market share increase.
d. count the number of exposures in the media.
e. conduct an environmental audit of media alternatives.
Chapter 16 – Advertising and Public Relations
134. In many instances the most appropriate way for a firm to cope with an event that leads to negative public relations
is to:
a. discourage news coverage of the event.
b. deny that the event occurred.
c. facilitate news coverage of the event.
d. hire a public relations firm.
e. refrain from publicity that reports the event.
Scenario 18.1
Use the following to answer the questions.
The Toyota Corporation is developing its promotional plan for the coming year and is considering several types of
advertising to communicate its messages. Toyota will likely advertise its new vehicle, the Venza, on TV, on its
website, in major national magazines, and through Facebook. It is possible that the ads could focus on the features
of the Venza and its most likely competitor, the Ford Edge. Other forms of advertising that can be considered are
ads that feature all of the Toyota brands in a single ad, while mentioning only the Toyota brand and its company’s
strengths. Finally, Toyota will probably continue to advertise updates of its cash cow brands, the Camry and the
hybrid versions of its SUVs.
135. Refer to Scenario 18.1. Toyota’s television advertisements for the new Venza are examples of _____, while its
Facebook ads are examples of _____ advertising.
a. publicity; product
b. institutional advertising; comparative
c. product advertising; social media
d. comparative advertising; social media
e. pioneer advertising; social media
Chapter 16 – Advertising and Public Relations
136. Refer to Scenario 18.1. If the ads include both the Venza and the Ford Edge, they would be examples of _____.
a. institutional advertising
b. public relations
c. product advertising
d. comparative advertising
e. reminder advertising
137. Refer to Scenario 18.1. Advertisements such as the one proposed above for the Camry and hybrid SUVs, are most
likely an example of _____.
a. product advertising
b. comparative advertising
c. competitive advertising
d. institutional advertising
e. reminder advertising
Chapter 16 – Advertising and Public Relations
138. Refer to Scenario 18.1. The advertising mentioned above in which Toyota features all brands of the company
would be an example of _____.
a. competitive advertising
b. institutional advertising
c. comparative advertising
d. pioneer advertising
e. product advertising
Chapter 16 – Advertising and Public Relations
Scenario 18.2
Use the following to answer the questions.
The State Farm Group includes several companies. Probably the most well-known company in the group is the
State Farm Insurance Company, the largest auto and home insurer in the United States. State Farm Insurance
provides protection for approximately 78 million policies on auto, fire, life, and health services. It is also a leading
insurer of homes and autos in Canada. Another company in the State Farm group is the State Farm Bank, which
was opened in 2000, beginning State Farm’s entry into the financial services field. However, the State Farm Bank is
not a traditional bank in that it has no branch offices and its services are provided through State Farm agents, a call
center, the mail, and on the Internet. It currently serves over 1.9 million bank accounts.
139. Refer to Scenario 18.2. In 2008, Cal Ripken, Jr. and State Farm teamed up to promote State Farm’s national teen
driver safety program. The marketing division at State Farm produced a one-page document that described the
partnership, which was then published in several national newspapers and on the Internet. The document from
State Farm is an example of _____, while the publication in the newspapers is an example of _____.
a. public relations; publicity
b. public relations; a news release
c. publicity; advocacy advertising
d. a news release; publicity
e. publicity; a news release
Chapter 16 – Advertising and Public Relations
140. Refer to Scenario 18.2. When deciding on its advertising allocation for the coming year, State Farm Insurance could
choose to spend the same amount as Safe Auto, another auto insurance company, or it could allocate an amount
thatis10%oflastyear’spremiums.IfStateFarmusesthesameamountasSafeAuto,thismethodofadvertising
appropriationisknownasthe_____approach;ifStateFarmusestheamountbasedonlastyear’spremiums,the
method would be _____.
a. competition-matching; percent-of-sales
b. arbitrary; competition-matching
c. competition-matching; objective-and-task
d. arbitrary; objective-and-task
e. objective-and-task; percent-of-sales
141. Refer to Scenario 18.2. If State Farm were to decide that its previous method of appropriating the advertising
budget was ineffective, it could decide to allocate 2 percent of its total annual sales to advertising. However, one
problem with this method is that:
a. it makes the bookkeeping too difficult.
b. it is tied too closely to sales forecasts.
c. a sales decline leads to an increase in the advertising appropriation.
d. a drop in sales would cause a drop in the advertising budget.
e. competitors may have different advertising objectives.
Chapter 16 – Advertising and Public Relations
142. Refer to Scenario 18.2. If State Farm Bank decided that it wanted to increase its number of bank customers by
10% in the coming year, it would most likely use the _____ approach to advertising allocation.
a. arbitrary
b. competition-matching
c. objective-and-task
d. percent-of-sales
e. percent-of-customer
143. Advertising is paid, nonpersonal communication transmitted through mass media.
a. True
b. False
144. Business organizations are the only major users of advertising.
a. True
b. False
Chapter 16 – Advertising and Public Relations