61) Which of the following statements is true about personal communication channels?
A) A magazine advertisement exemplifies the use of a personal communication channel.
B) All personal communication channels are directly controlled by a company.
C) Personal communication channels do not allow sending and receiving of feedback.
D) Word-of-mouth influence uses a personal communication channel.
E) A billboard message exemplifies the use of a personal communication channel.
62) Personal communications about a product between target buyers and neighbors, friends,
family members, associates, and other consumers, are known as ________.
A) personal selling
B) direct marketing
C) public relations
D) buzz marketing
E) word-of-mouth influence
63) ________ involves cultivating opinion leaders and getting them to spread information about
a product or a service to others in their communities.
A) Sales promotion
B) Indirect marketing
C) Buzz marketing
D) Stealth marketing
E) Public relations
64) A manufacturer of a variety of technological devices asked its marketing department to
develop inexpensive methods of building and maintaining brand awareness and excitement. The
marketing department then recruited consumers who were early adopters of technological
devices to spread the word about the company’s new products. This is an example of ________.
A) a reverse marketing activity
B) nonpersonal marketing
C) buzz marketing
D) sales promotion
E) direct marketing
65) Nonpersonal communication channels include major media, ________, and events.
A) sales calls
B) buzz marketing
C) atmospheres
D) word-of-mouth influence
E) phone calls
66) Display media includes ________.
A) newspapers
B) magazines
C) television
D) company Web sites
E) billboards
67) ________ are staged occurrences that communicate messages to target audiences.
A) Focus groups
B) Encoders
C) Atmospheres
D) Events
E) Decoders
68) To ________, a marketer would most likely ask target audience members whether they
remember the message, how many times they saw it, and what points they remember.
A) select a message source
B) collect feedback
C) select a message channel
D) plan a media purchase
E) design a marketing appeal
69) While using the “________ method” for setting an advertising budget, a company starts with
total revenues, deducts operating expenses and capital outlays, and then devotes some portion of
the remaining funds to advertising.
A) integrated
B) moving-average
C) competitive-parity
D) percentage-of-sales
E) affordable
70) Which of the following statements is true regarding the affordable method for setting a
promotion budget?
A) It is mostly used by large businesses.
B) It completely ignores the effects of promotion on sales.
C) It tends to place promotion first among spending priorities.
D) It leads to a certain annual promotion budget.
E) It almost always results in overspending.
71) Though the ________ method of setting an advertising budget is simple to use and helps
management think about the relationships among promotion spending, selling price, and profit
per unit, it wrongly views sales as the cause of promotion rather than the result.
A) percentage-of-sales
B) integrated
C) competitive-parity
D) objective-and-task
E) regression
72) Which of the following methods is used by companies to set their advertising budgets based
on the industry average?
A) percentage-of-sales method
B) affordable method
C) competitive-parity method
D) objective-and-task method
E) regression method
73) Sam, the owner of a small company, learned that a competitor was planning to spend
$150,000 on promotion in the next financial year. As soon as he learned this, Sam called his
finance manager and said, “I want to spend $150,000 on promotion next year.” In this case,
which method of promotional budgeting is used by Sam?
A) the objective-and-task method
B) the percentage-of-sales method
C) the competitive-parity method
D) the bottom-up method
E) the pull-push method
74) Which of the following statements is most likely true regarding the competitive-parity
method?
A) This method involves starting with total revenues, deducting operating expenses and capital
outlays, and then devoting some portion of the remaining funds to advertising.
B) It is based on the availability of funds rather than on opportunities.
C) It wrongly views sales as the cause of promotion rather than as the result.
D) In this method, promotion budgets are set to match competitors’ outlays.
E) This method involves setting the promotion budget at a certain percentage of current or
forecasted sales.
75) Which of the following is the most logical budget-setting method?
A) percentage-of-sales method
B) affordable method
C) competitive-parity method
D) objective-and-task method
E) exponential smoothing method
76) Which budgeting method entails defining specific promotion goals, determining the
necessary tasks, and estimating the costs to determine a promotion budget?
A) percentage-of-sales method
B) objective-and-task method
C) affordable method
D) exponential task method
E) competitive-parity method
77) Which of the following statements is most likely true regarding the objective-and-task
method of budget-setting?
A) It forces management to spell out its assumptions about the relationship between the money
spent and promotion results.
B) It is the simplest and least time consuming method to use.
C) It is the least logical budget-setting method.
D) It involves setting the promotion budget to match competitors’ outlays.
E) It wrongly views sales as the cause of promotion rather than as the result.
78) Which of the following is most likely a shortcoming of advertising?
A) It is the most expensive promotion tool.
B) It cannot reach masses of geographically dispersed buyers.
C) It is impersonal and lacks the direct persuasiveness of company salespeople.
D) It cannot trigger quick sales.
E) It cannot be used to build up a long-term image for a product.
79) In most cases, what is the most expensive promotion tool?
A) advertising
B) personal selling
C) mass media
D) public relations
E) publicity
80) Which of the following promotional tools is the most effective in building up buyers’
preferences, convictions, and actions?
A) mass-market advertising
B) personal selling
C) segmented advertising
D) sales promotion
E) public relations
81) ________ consists of strong short-term incentives that invite and reward quick responses
from customers.
A) Public relations
B) Personal selling
C) Advertising
D) Sales promotion
E) Direct marketing
82) Which of the following is a sales promotion tool?
A) sponsorships
B) billboards
C) catalogs
D) coupons
E) posters
83) Suppose Amazon.com has offered you free shipping on your next purchase of more than
$35. This offer is an example of ________.
A) sales promotion
B) personal selling
C) a public relations strategy
D) horizontal diversification
E) a pull strategy
84) ________ is very believable because news stories, features, sponsorships, and events seem
more real and believable to readers than ads do.
A) Differentiated marketing
B) Public relations
C) Direct marketing
D) Sales promotion
E) Personal selling
85) A newspaper article announced that Connect Wireless, the sixth-largest wireless carrier in a
country, was changing its name to M-Mobile and that to begin the makeover process it had
replaced spokesperson Robert Garmon with Catherine Naylor. Which of the following elements
of a promotion mix is represented in this example?
A) sales promotion
B) advertising
C) public relations
D) personal selling
E) direct marketing
86) Which promotional tool is the most immediate, customized, and interactive?
A) segmented advertising
B) sales promotion
C) direct marketing
D) horizontal diversification
E) public relations
87) Under which promotional mix strategy does the producer direct its marketing activities
(primarily advertising and consumer promotion) toward channel members to induce them to
carry the product and promote it to final consumers?
A) pull strategy
B) blitz strategy
C) push strategy
D) buzz strategy
E) pulse strategy
88) The manufacturer of Crest toothpaste provides free samples of its toothpaste to dentists and
encourages them to distribute these samples to their patients and to inform the patients about
advantages of using Crest. The manufacturer of Crest toothpaste is using ________.
A) sales promotion
B) direct marketing
C) a push strategy
D) a pull strategy
E) a vertical diversification strategy
89) Using a(n) ________ strategy, the producer directs its marketing activities toward final
consumers to induce them to buy the product.
A) pull
B) blitz
C) push
D) buzz
E) pulse
90) Glasis is a type of paint made specifically for use on cars. An ad in Motor Trend magazine
advising consumers to request their auto body shops to use Glasis paint is an example of how a
company uses ________.
A) word-of-mouth influence
B) public relations
C) buzz marketing
D) a push strategy
E) a pull strategy
91) Business-to-consumer companies are more likely to emphasize a ________ promotion
strategy, while business-to–business companies are more likely to emphasize a ________
promotion strategy.
A) pull; push
B) push; pull
C) pulse; pull
D) blitz; pull
E) push; blitz
92) John Deere does very little promoting of its lawn mowers and garden tractors to final
consumers. Instead, John Deere’s sales force works with Lowe’s, Home Depot, independent
dealers, and other channel members, who in turn sell John Deere products to final consumers.
According to this information, which of the following promotion mix strategies is being used by
John Deere?
A) public relations strategy
B) direct marketing strategy
C) push strategy
D) blitz strategy
E) pull strategy
93) A large retailer advertised a sewing machine for $179. However, when consumers tried to
buy the advertised machine, the seller downplayed its features, placed faulty machines on
showroom floors, understated the machine’s performance, and took other actions in an attempt to
convince buyers to buy a more expensive machine. In this case, which of the following types of
advertising is used by the retailer?
A) cross-selling
B) door-in-the-face
C) trojan horse
D) foot-in-the-door
E) bait-and-switch
94) Which of the following would be classified as bait-and-switch advertising?
A) advertising a cheaper brand but making only a more expensive one available to customers
B) advertising the advantages of a product by comparing it to its competitors
C) providing free samples of a product
D) providing discount coupons with a product
E) favoring certain customers over others through trade promotions
95) Under the ________ Act, sellers cannot favor certain customers through their use of trade
promotions.
A) Smith-Connally
B) Robinson-Patman
C) Walsh-Healey
D) Wagner
E) Sarbanes-Oxley
96) The FTC has adopted a three-day cooling-off rule to give special protection to ________.
A) customers who purchased because of deceptive advertising
B) customers who purchased because of bait-and-switch tactics
C) customers who were not seeking a product
D) resellers who do not receive proportionately equal treatment from manufacturers
E) resellers who are not covered by the Robinson-Patnam Act
Refer to the scenario below to answer the following questions.John Mayes opened Sparkle
Janitorial in 2005. John began his business by acquiring two contracts for office cleaning
services from two local manufacturing facilities. For two years, John and his wife, Barb,
performed the cleaning services alone. After acquiring three additional cleaning contracts in
2007, John hired two employees.
“Up to that point, we had room to grow but we really had no advertising plan,” John stated. “We
were relying mostly on word-of-mouth.”
By 2010, Barb hired another two full-time employees to begin Sparkle’s new endeavor: carpet
cleaning in homes and offices.
“Competition was getting tough for both of our services at that point,” Barb added. “We ran a
local radio spot three times each week. Then we had an advertiser print coupons on placemats.
That gave us a little more exposure.”
John and Barb Mayes admit that they did not realize the value of a sound promotional plan
earlier. “We wish we would have put together something catchy with a jingle long before now,”
they said.
97) When starting their business, John and Barb would most likely have benefitted from
understanding ________.
A) social media
B) buzz marketing
C) public relations campaigns
D) network television advertising
E) integrated marketing communications
98) In a recent radio spot, John and Barb gave a quick explanation of Sparkle’s cleaning process
and a description of the value consumers receive for their money. This is an example of a(n)
________ appeal.
A) emotional
B) standard
C) rational
D) moral
E) social