Chapter 21 – Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion
72. (p. 751) Which of the following alternatives to an advertiser-supported media system would
run counter to most Americans’ desire for freedom of the press?
73. (p. 751) Most print media are very concerned over maintaining the concept of ‘The Wall’ in
order to ensure independence and credibility. However, it is difficult to maintain ‘The Wall’ in
modern organizations. Which of the following is the reason for this?
Chapter 21 – Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion
74. (p. 752) Advertising plays an important role in a free-market system like the USA by:
75. (p. 753) Which of the following is a major benefit of advertising?
Chapter 21 – Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion
76. (p. 753) Some critics say advertising hampers consumer choice. Identify the most reasonable
justification for this argument.
77. (p. 753) Larger companies often end up charging higher prices and achieve a more dominant
position in the market than smaller firms that cannot compete against them and their large
advertising budgets. When this occurs, advertising:
Chapter 21 – Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion
78. (p. 753) Advertising creates makes the products or services of large advertisers are perceived
as unique or as better than competitors’ products. This process can be referred to as:
79. (p. 754) Procter & Gamble spends over $2 billion annually on advertising for its various
consumer products and can make large media purchases at rates lower than its smaller
competitors. This is an example of how a large advertiser can achieve a competitive
advantage based on:
Chapter 21 – Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion
80. (p. 754) Large advertisers usually sell more of a product or service, which means they may
have lower production costs and can allocate more monies to advertising, so they can afford
the costly but more efficient media like network television. Which of the following
phenomena describes this effect?
81. (p. 754) Barriers to entry mainly refer to:
Chapter 21 – Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion
82. (p. 754) Some economists argue the reason Nike has such a high market share in the athletic
shoe industry is because the company spends much more on media advertising and for
endorsement contracts than other shoe manufacturers. This makes it difficult for new
companies to enter the industry and compete against Nike because it has created:
83. (p. 754) For many years Rolex watches and Colt firearms spent very little money on
advertising yet were successful brands. The success of these products can be interpreted as
evidence that:
Chapter 21 – Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion
84. (p. 754) Some critics say advertising hampers consumer choice. Which of the following
justifications could potentially silence them?
85. (p. 755) Consumer advocates argue that:
Chapter 21 – Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion
86. (p. 755) From an economic perspective, advertising might lower the cost of a product by:
87. (p. 755) _____ is a good example of a relatively homogeneous product, which through
advertising has achieved perceived brand differentiation.
Chapter 21 – Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion
88. (p. 756) Which of the following statements support the advertising equals market power
ideology?
89. (p. 756) Many argue that industry prices decrease as a result of advertising. Which of the
following concepts supports this view?
Chapter 21 – Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion
90. (p. 756) Identify the statement that supports the advertising equals information concept?
91. (p. 756) The belief that advertising equals _____ reflects traditional economic thinking that
views advertising as a way to change consumers’ tastes, lower their sensitivity to price, and
build brand loyalty among buyers of the advertised brand.
Chapter 21 – Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion
92. (p. 756) If a marketer for an established company believes potential entrants to the
marketplace must overcome established brand loyalty and spend relatively more on
advertising, then he or she must believe that advertising equals:
93. (p. 756) Marketers who believe that advertising equals _____ sees advertising as providing
consumers with useful facts of the products, increasing their price sensitivity, and increasing
competition in the market.
Chapter 21 – Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion
94. (p. 756) Which of the following is the major reason why the American Advertising
Federation created and implemented an integrated marketing communications campaign?
95. (p. 756) Which of the following statements show how advertising can increase the cost of a
product?
Chapter 21 – Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion
96. (p. 756) Which of the following beliefs takes a positive view of advertising’s economic
effects?
97. (p. 756) Which of the following statements can be used to refute the argument that
advertising reduces the number of choices available to consumers?
Chapter 21 – Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion
98. (p. 757) The _____ has been running a campaign for several years to convince consumers
around the world of the economic value of advertising.
99. (p. 757) Which of the following can be identified as the American advertising industry’s
primary trade organization?
Chapter 21 – Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion
100. (p. 757) The Great Brands campaign, developed by the American Advertising Federation,
promoted the economic power of advertising by: