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1) In 1971, the Federal Trade Commission's (FTC's) _____ program required
advertisers to have supporting documentation for their claims and to prove the claims
are truthful.
A.Central Hudson
B.Lanham
C.cease-and-desist
D.advertising substantiation
E.affirmative disclosure
2) DigiCell Inc. sells computer equipment to small- and mid-sized businesses. Its
website provides in-depth information on its products, customer service, shipping
policies, and suppliers. Like most business-to-business sites, the primary objective of
this website is to:
A.eliminate economies of scale.
B.create diseconomies of scale.
C.disseminate information.
D.replace advertising in trade journals.
E.prevent price wars.
3) Which of the following differentiates a functional consequence from a psychosocial
consequence?
A.Functional consequences are concrete outcomes of a product, whereas psychosocial
consequences are abstract outcomes.
B.Psychosocial consequences are directly experienced by a customer, whereas
functional consequences are not.
C.Functional consequences are intangible, whereas psychosocial consequences are
tangible outcomes.
D.Psychosocial consequences are bundles of product attributes, whereas functional
consequences are bundles of service attributes.
E.Functional consequences deal with how a product makes you feel, whereas
psychosocial consequences deal with tangible, concrete outcomes.
4) Most critics of advertising tolerate informative advertisements better than persuasive
advertisements. Which of the following reasons best explains why it is hard to engage
in only informational advertising?
A.Customers also want to obtain information from sources other than advertising.
B.Information presented in advertisements often lacks credibility.
C.It is difficult to separate informational advertising from persuasive advertising.
D.Customers would not buy products or services without being persuaded.
E.Advertisements should create needs for marketers to reach their profit objectives.
5) Krypton, a developing nation, has a reputation for being unsuitable for conducting
business due to its poor communication and transportation systems. Its distribution
networks are also underdeveloped. In this scenario, Krypton has a poor:
A.demographic environment.
B.economic infrastructure.
C.balance of payments.
D.cultural system.
E.advertising system.
6) Which of the following statements can proponents of advertising use against the
charge that advertising makes people buy things they do not need?
A.Customers can be benefitted by the economies of scale that occur due to persuasive
advertising.
B.Consumers have the freedom to make their own choices when confronted with
persuasive advertising.
C.Materialism is an important freedom of choice in an individualistic society.
D.Advertising provides information on basic needs to customers rather than persuading
them.
E.Most persuasive advertisements do not use emotional appeals to persuade customers.
7) Which of the following statements is true of the National Advertising Review
Council (NARC)?
A.Cases brought to NARC are subject to extensive publicity as compared to the cases
brought to court.
B.It is very expensive to get a case solved through NARC.
C.The NARC takes longer to solve a case when compared to the Federal Trade
Commission (FTC).
D.The NARC can handle cases at a lower cost as compared to a court.
E.The NARC is a government agency regulating advertising agencies.
8) _____ are sets of interdependent organizations involved in the process of making a
product or service available for consumption.
A.Marketing channels
B.Marketing segments
C.Marketing facilitators
D.Marketing sectors
E.Marketing programs
9) With respect to the basic estimates in the Arbitron report, rating refers to:
A.the percentage of total estimated listening audience.
B.the percentage of listeners in the survey area population.
C.the percentage people involved in preparing the Arbitron ratings report.
D.the percentage of listeners who watch TV commercials for more than five minutes.
E.the percentage of listeners who watch TV commercials for a minimum of five
minutes.
10) During the live television broadcast of a basketball match, an ad for Humberto's
Pizza is aired frequently during the commercial breaks. Jason, who is watching the
match on television, expresses annoyance every time he sees the pizza commercial.
Humberto's Pizza commercial is likely to be facing:
A.a qualitative degradation.
B.a fear appeal.
C.a wearout.
D.a commercial reactance.
E. a refutation.
11) _____ magazines assemble readers with similar lifestyles or interests and offer
marketers an efficient way to reach these people with little wasted coverage or
circulation.
A.Trade
B.General-interest
C.Business
D.Cultural
E.Special-interest
12) The _____ has control over advertising involving the use of the mail and ads that
involve lotteries, obscenity, or fraud.
A.U.S. Postal Service
B.Federal Communications Commission
C.National Association of Attorneys General
D.Federal Trade Commission
E.U.S. Department of Welfare
13) An appliance manufacturer offers a $50 payment to salespeople who work at J&J
Appliance Inc., a retailer, for each sale of the company's new line of refrigerators. This
payment by J&J Appliance is known as:
A.a slotting fee.
B.a mnemonic.
C.a spiff.
D.pull money.
E.a bonus pack.
14) Which of the following advertising media has potential advantages of selectivity,
reproduction quality, creative flexibility, and prestige?
A.National newspapers
B.Magazines
C.Local radio
D.Billboards
E.Local newspapers
