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Indicate whether the statement is true or false.
1. Advertising can change consumers’ deeply rooted values and attitudes.
a.
True
b.
False
2. Experiential marketing is the coordinated effort to handle the effects of unfavorable publicity, ensuring fast and
accurate communication in times of emergency.
a.
True
b.
False
3. Advocacy advertising is a form of product advertising that is typically used to safeguard against negative consumer
attitudes and to promote the benefits of a specific good or service.
a.
True
b.
False
4. In a free-press environment, publicity is easily controlled, especially in a crisis.
a.
True
b.
False
5. Serious or emotional advertisements are largely used to change consumers’ deeply rooted values and attitudes.
a.
True
b.
False
6. Flighted schedules are more effective than are continuous ones at driving sales through television advertisements.
a.
True
b.
False
7. Both gamification and the unique selling proposition refer to the process of using game mechanics and a gaming mind-
set to engage an audience.
a.
True
b.
False
8. Consumer sales promotion is directed toward members of the marketing channel, such as wholesalers and retailers.
a.
True
b.
False
9. Newspapers and magazines have a high noise level.
a.
True
b.
False
10. Push money is the money that manufacturers offer to channel intermediaries to encourage them to “push” products—
that is, to encourage other members of the channel to sell their products.
a.
True
b.
False
11. A brand with a distinct personality is more likely to have a larger base of loyal customers and market share.
a.
True
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b.
False
12. Online advertising includes search engine marketing, display advertising, social media advertising, email marketing,
and mobile marketing.
a.
True
b.
False
13. People who buy a competitor’s product most or all of the time are price buyers.
a.
True
b.
False
14. Unlike radio, a magazine has a relatively long life span, which is further increased by a high pass-along rate.
a.
True
b.
False
15. Although the number of event marketing and experiential events has decreased in recent years, the most growth comes
from the world’s smallest and newest brands.
a.
True
b.
False
16. People who buy the same product most or all of the time are known as brand switchers.
a.
True
b.
False
17. Pioneering advertising is heavily used during the later stages of the product life cycle and emphasizes the product’s
exclusivity more than offering in-depth information about the product.
a.
True
b.
False
18. A trade allowance is a price reduction offered by retailers to customers who are buying homogeneous shopping goods.
a.
True
b.
False
19. Corporations often use advocacy advertising to express their views on controversial issues.
a.
True
b.
False
20. In advergaming, companies advertise or promote a product, service, organization, or issue by putting ad messages in
video games played in stand-alone systems.
a.
True
b.
False
21. Evaluating an advertising campaign is the simplest part of the advertising process because the factors that determine
the effectiveness of an ad are limited and clear.
a.
True
b.
False
22. The Federal Trade Commission currently does not allow the identification of competing brands in comparative
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advertising.
a.
True
b.
False
23. A rebate is a certificate that entitles consumers to an immediate price reduction when the product is purchased.
a.
True
b.
False
24. Advertising can affect the way consumers rank a brand’s attributes.
a.
True
b.
False
25. A point-of-purchase (POP) display includes any promotional display set up at the retailer’s location to build traffic,
advertise the product, or induce impulse buying.
a.
True
b.
False
26. A product’s benefit is simply a feature of the product such as its easy-open package, special formulation, or new lower
price.
a.
True
b.
False
27. If an advertiser wants to enhance the sales of a specific good or service, institutional advertising should be used.
a.
True
b.
False
28. When evaluating an advertising campaign, ad effectiveness can be measured only after the advertising campaign is
over.
a.
True
b.
False
29. In cooperative advertising, the manufacturer and the supplier bear the entire cost of advertising the brand.
a.
True
b.
False
30. Intermediaries receive push money as a bonus for pushing the manufacturer’s brand through the distribution channel.
a.
True
b.
False
31. A well-known rule of thumb in the advertising industry is that the goal in advertising is to sell the attributes of the
product, not its benefits.
a.
True
b.
False
Indicate the answer choice that best completes the statement or answers the question.
32. A_____ media schedule is a strategy in which ads are run heavily every other month or every two weeks to achieve a
greater impact with an increased frequency and reach at those times.
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a.
circular
b.
flighted
c.
continuous
d.
seasonal
33. Which of the following is correct about advertising appeals?
a.
It is a series of related advertisements focusing on a common theme or slogan.
b.
It identifies the specific communication task that should be accomplished for a specified target audience
during a specified period.
c.
It is a form of advertising designed to influence demand for a specific brand.
d.
Its development is typically the responsibility of the creative team.
34. Which of the following refers to a series of related advertisements focusing on a common theme, slogan, and set of
advertising appeals?
a.
Advertising campaign
b.
Advertising objective
c.
Competitive advertising
d.
Pioneering advertising
35. Which of the following is NOT correct about the effects of advertising?
a.
Advertising affects peoples’ daily lives and ultimately, their purchases.
b.
Advertising can affect the way consumers rank a brand’s attributes.
c.
Because of proliferation of new technology options, consumers don’t spend much time consuming traditional
media.
d.
Advertising reinforces positive attitudes toward brands.
36. Understanding the advertising response function helps marketers:
a.
invest a large amount of money on advertising and promotion.
b.
use their advertising budgets wisely to reach their target market.
c.
multiply returns by constantly increasing the money spent on advertising.
d.
achieve consumer loyalty regardless of the quality of the product or service.
37. Which of the following refers to the cost of reaching one member of the target market?
a.
Cost per click
b.
Cost per contact
c.
Media mix
d.
Reach
38. A form of advertising designed to enhance a company’s image rather than promote a particular product is called
__________.
a.
institutional advertising
b.
product advertising
c.
pioneering advertising
d.
competitive advertising
39. Which of the following refers to public relations strategy in which a company spends money to support an issue,cause,
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or event that is consistent with corporate objectives, such as improving brand awareness or enhancing corporate image?
a.
Sponsorship
b.
Product placement
c.
New product publicity
d.
Sales promotion
40. Which of the following indicates an element in the promotional mix that evaluates public attitudes, identifies issues
that may elicit public concern, and executes programs to gain public understanding and acceptance?
a.
Advertising
b.
Public Relations
c.
Sales Promotion
d.
Media Scheduling
41. Unlike magazine advertising, radio advertising:
a.
provides maximum flexibility.
b.
has longer lead time.
c.
poses difficulty in communicating humor.
d.
has long-term advertiser commitments.
42. Which of the following is NOT an advantage of newspaper as an advertising media?
a.
High individual market coverage
b.
Geographic selectivity and flexibility
c.
Short-term advertiser commitments
d.
Wide color capabilities
43. Which executional style for advertising depicts people in normal settings, such as at the dinner table or in a car?
a.
Slice-of–life
b.
Lifestyle
c.
Mood or image
d.
Fantasy
44. Which of the following is true of advertising?
a.
It is of less value for new entrants in the market.
b.
It ensures constant sales and market share improvements.
c.
It influences attitudes, beliefs, and ultimately, consumers’ purchases.
d.
It can change consumers’ deeply rooted values and attitudes.
45. Media mix decisions are based on many factors, which include(s)______.
a.
cost per contact, but not cost per click
b.
reach, but not cost per click or cost per contact
c.
cost per contact and cost per click, but not reach
d.
cost per contact, cost per click, and reach
46. Decathlon Corp., a sports shoe manufacturer, launches a new line of sports shoes. To promote the product, Fournotts
Corp. invites its customers to try on the shoes for a period of one week and get a feel of its features. This is an example of
_____.
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a.
corporate communication
b.
sponsorship
c.
product placement
d.
experiential marketing
47. Pioneering advertising is heavily used during the _____ of the product life cycle.
a.
introductory stage
b.
growth stage
c.
formative stage
d.
conception stage
48. Sanicare, a manufacturer of hygiene and personal care products, launches a new toothpaste, “Tidy,” that claims to be
more effective in maintaining oral hygiene than other brands. The advertisements for Tidy provide valid research
information. Which executional style of advertising is Sanicare using?
a.
Scientific
b.
Slice-of–life
c.
Spokesperson
d.
Mood or image
49. Run, a sports shoe manufacturing company, began its campaign by spending $1 million on advertising. Currently, Run
spends $200 million on advertising. Initially, the advertisements contributed to the gradual increase in returns, but the
company now confronts diminishing returns. In this scenario, which of the following phenomena explains Run’s
diminishing returns?
a.
A unique selling proposition
b.
The advertising response function
c.
Switch and bait advertising
d.
Strategic advertising
50. Which advertising appeal centers around issues such as social embarrassment, growing old, or losing one’s health
which, because of the power of the emotion it stirs, requires advertisers to exercise care in execution?
a.
Fear
b.
Vanity and egotism
c.
Environmental consciousness
d.
Convenience
51. _____ is a public relations strategy that involves getting a product, service, or company name to appear in a movie,
television show, radio program, magazine, newspaper, video game, video or audio clip, book, or commercial for another
product; on the Internet; or at special events.
a.
Audience selectivity
b.
Product placement
c.
Corporate communication
d.
Cooperative advertising
52. Which of the following best describes a continuous media schedule?
a.
One that runs advertising heavily every other month or every two weeks to achieve a greater impact with an
increased frequency and reach at those times
b.
A media schedule that runs regular scheduling throughout the year coupled with a flighted schedule during the
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best sales periods
c.
One that runs advertising steadily throughout the advertising period and is often used for products in the later
stages of the product life cycle
d.
A media schedule that runs advertisementsintensively during times of the year when the product is most likely
to be used
53. The term that describes the phenomenon in which spending for advertising and sales promotion increases sales or
market share up to a certain level but then produces diminishing returns is _____________.
a.
the advertising response function
b.
institutional advertising
c.
product advertising
d.
new brand promotion
54. Which of the following is NOT true of competitive advertising?
a.
Firms use competitive or brand advertising when a product enters the growth phase of the product life cycle.
b.
The goal of competitive advertising is to influence demand for a specific brand.
c.
Promotion becomes more informative and appeals less to emotions during competitive advertising phase.
d.
Emphasis on branding begins during competitive advertising phase.
55. Which term describes a series of decisions that an advertiser makes regarding the selection and use of media, which
allows the marketer to optimally and cost-effectively communicate the message to the target audience?
a.
Media planning
b.
Advertising
c.
Sales Promotion
d.
Advertising campaign
56. Placing advertising messages in web-based, mobile, console, or handheld video games to advertise or promote a
product, service, organization, or issue is known as:
a.
infomercials.
b.
advergaming.
c.
podcasts.
d.
media planning.
57. CamScan is a manufacturer of printers, scanners, and other office equipment. It announces a cash refund for corporate
purchases in large quantities. Rick purchases 20 color printers for his office from CamScan during this sale. To collect the
cash refund, he needs to fill out and mail a form provided by CamScan, along with proof of purchase. In this case, which
type of sales promotions is CamScan offering?
a.
Premium
b.
Bonus
c.
Coupon
d.
Rebate
58. Which of the following statements is true of executional styles for advertising?
a.
They often dictate which type of media is to be employed to convey the message.
b.
They are used in radio and television advertising and not in print or magazine advertising.
c.
They are seldom usedin advertisements for lower-risk, low-involvement, routine purchases.
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d.
They require little or no modification for marketing campaigns for political candidates or issues.
59. Which of the following statements is true of pioneering advertising?
a.
It offers consumers in-depth information about the benefits of the product class.
b.
It is heavily used during the growth stage of the product life cycle.
c.
It is used to enhance a company’s image rather than promote a particular product.
d.
It is used mainly to compare brands on one or more specific attributes.
60. The number of target customers who are exposed to a commercial at least once during a specific period (usually four
weeks) is called ______.
a.
reach
b.
frequency
c.
cost per click
d.
cost per contact
61. _____ is the element in the promotional mix of a marketing plan that evaluates the public’s attitudes, identifies issues
that may elicit their concern, and executes programs to gain their understanding and acceptance.
a.
Personal selling
b.
Cooperative advertising
c.
Sales promotion
d.
Public relations
62. _____ is a form of institutional advertising.
a.
Advocacy advertising
b.
Pioneering advertising
c.
Competitive advertising
d.
Comparative advertising
63. Which term refers to a marketer designating the media to be used, the choice of the specific publications or programs,
and the insertion dates of the advertising?
a.
Media schedule
b.
Audience selectivity
c.
Reach
d.
Advertising plan
64. Which of the following is NOT a criterion used to evaluate an advertising appeal?
a.
Believability
b.
Exclusiveness
c.
Extravagant claims
d.
Desirability
65. Which executional style is being used when a laundry detergent advertisement shows the product will clean clothes
whiter and brighter?
a.
Slice-of–life
b.
Real product symbol
c.
Scientific
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d.
Demonstration
66. Which of the following describes a difference between an attribute and a benefit of a product?
a.
An attribute includes pleasure or improved health, whereas a benefit includes an easy-open package or a
special formulation.
b.
An attribute cannot be experienced by consumers, whereas a benefit is tangible and can be experienced.
c.
An attribute is the goal to sell a product, whereas a benefit is an apparent part of a product.
d.
An attribute is simply a feature of a product, whereas a benefit is what consumers receive by using a product.
67. La Wear, a very expensive brand of clothing and accessories, promotes its products by appointing famous
personalities as its brand ambassadors. Given this information, which of the following types of advertising appeals is used
by La Wear?
a.
Health
b.
Fear
c.
Convenience
d.
Admiration
68. Which of the following is NOT true of publicity?
a.
Publicity is the effort to capture media attention.
b.
Corporations usually prefer not to generate publicity through press releases.
c.
Corporate donations and sponsorshipscreate favorable publicity for companies.
d.
Both profit and not-for-profit organizations seek publicity.
69. Laelle Corp., a furniture manufacturing company, uses marketing efforts like paid television commercials and
magazine inserts to publicize its products. These are examples of activities associated with:
a.
advertising.
b.
franchising.
c.
personal selling.
d.
nonstore retailing.
70. A form of advertising that firms use when a product enters the growth phase of the product life cycle and other
companies begin to enter the marketplace is called ______________.
a.
advocacy advertising
b.
pioneering advertising
c.
competitive advertising
d.
comparative advertising
71. Which statement is true of cooperative advertising?
a.
It does not allow retailers to promote manufacturer’s product lines.
b.
It resolves the impracticality of listing all one’s dealers in national advertising.
c.
It requires retailers to bear the entire cost of advertising.
d.
It cannot be used for advertising on the radio.
72. Ryan’s Hunting Emporium sells hunting equipment. The store advertises its equipment in a popular magazine that is
distributed every Monday. A television commercial promoting Ryan’s airs every Thursday at 5:00 p.m. for a three-month
period. When new or updated equipment is introduced, the products are steadily advertised during a planned time period.
Ryan’s exemplifies a _____ media schedule.
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a.
circular
b.
flighted
c.
continuous
d.
seasonal
73. Which of the following is a difference between pioneering advertising and competitive advertising?
a.
Pioneering advertising is used to promote a company’s image, whereas competitive advertising is used to
manage customer criticisms.
b.
Pioneering advertising is a form of institutional advertising, whereas competitive advertising is a form of
advocacy advertising.
c.
Pioneering advertising is used during a product’s introductory stage, whereas competitive advertising is used
during a product’s growth stage.
d.
Pioneering advertising compares competing brands, whereas competitive advertising is intended to stimulate
primary demand for a new product.
74. Which of the following best defines audience selectivity?
a.
The number of target consumers exposed to a commercial at least once during a specific period
b.
The number of times an individual is exposed to a given message during a specific period
c.
The ability of an advertising medium to reach a precisely defined market
d.
The cost associated with a consumer clicking on a display or banner ad
75. Which of the following advertising appeals is often used for fast-food restaurants and microwave foods?
a.
Convenience
b.
Fun and pleasure
c.
Profit
d.
Admiration
76. Which of the following is an advantage of using cost per contact to determine the media mix for a product?
a.
It allows advertisers to increase an ad’s effectiveness by reaching potential customers.
b.
It enables an advertiser to compare the relative expenses of specific media vehicles.
c.
It requires advertisers to pay only for the customers who view their ad.
d.
It allows marketers to minimize the cost of advertising by reaching a large number of people.
77. Burger King, a popular chain of fast-food restaurants, offers an official Burger King Kids’ Meal backpack free with
every purchase of its newly introduced luxury meal pack. In this case, which of the following types of sales promotions
does Burger King offer?
a.
Trade allowance
b.
Push money
c.
Rebate
d.
Premium
78. Research shows that using humorous advertising is most effective when it is used to:
a.
reinforce and remind loyal customers about the benefits of a product.
b.
change consumers’ deeply rooted values and attitudes.
c.
publicize new brands introduced in the market.
d.
shape attitudes when consumers already have a positive image of an advertised brand.
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79. A form of institutional advertising that is typically used to safeguard against negative consumer attitudes and to
enhance the company’s credibility among consumers who already favor the company’s position is called ___________.
a.
advocacy advertising
b.
product advertising
c.
pioneering advertising
d.
competitive advertising
80. Which method of setting advertising objectives specifies that all objectives should precisely define the target audience,
the desired percentage change (in some specified measure of effectiveness), and the time frame in which that change is to
occur?
a.
The DAGMAR approach
b.
The AIDA model
c.
BCG matrix
d.
SWOT analysis
81. Reach is related to a medium’s ratings, generally referred to in the industry as ______ points.
a.
gross ratings
b.
cost per rating
c.
gross review
d.
target ratings
82. Which form of advertising promotes the benefits of a specific good or service?
a.
Institutional advertising
b.
Product advertising
c.
Competitive advertising
d.
Comparative advertising
83. A form of advertising that compares two or more specifically named or shown competing brands on one or more
specific attributes is called:
a.
institutional advertising.
b.
product advertising.
c.
corporate advertising.
d.
comparative advertising.
84. An arrangement in which the manufacturer and the retailer split the costs of advertising the manufacturer’s brand is
called ______________advertising.
a.
cooperative
b.
pioneer
c.
competitive
d.
institutional
85. A desirable, exclusive, and believable advertising appeal selected as the theme for a campaign is called:
a.
the unique selling proposition.
b.
the advertising objective.
c.
an advertising plan
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d.
competitive advertising.
86. Impersonal, one–way mass communication about a product or organization that is paid for by a marketer is called
___________.
a.
advertising
b.
public relations
c.
sales promotion
d.
product promotion
87. Firms use competitive or brand advertising when a product enters the _____ of the product life cycle and other
companies begin to enter the marketplace.
a.
introductory phase
b.
growth phase
c.
formative phase
d.
decline phase
88. _____ is a form of advertising designed to influence demand for a specific brand.
a.
Institutional advertising
b.
Advocacy advertising
c.
Competitive advertising
d.
Pioneering advertising
89. Eatalia is a popular chain of restaurants for authentic Italian food. Recently, a customer found a dead insect in the
pasta he was served. The customer’s negative review about the restaurant went viral. Eatalia’s chief executive officer
(CEO) publicly apologized for the mishap and posted pictures of the restaurant’s kitchen, after being fumigated, on
several social networking websites. In this scenario, which of the following does Eatalia’s CEO demonstrate?
a.
Audience control
b.
Crisis management
c.
Lethargy
d.
Experiential selling
90. A public relations strategy that involves getting a product, service,or company name to appear in a movie, television
show, radio program, magazine, newspaper,video game, video or audio clip,book, or commercial for another product; on
the Internet; or at special events is called ____________.
a.
product placement
b.
new product publicity
c.
consumer education
d.
experiential marketing
91. Identify a true statement about an advertising campaign.
a.
It circumvents the need for post-campaign evaluation.
b.
It extends for a defined period of time.
c.
It cannot focus on more than one advertising appeal.
d.
It does not use humor to promote a theme.
92. Why do new brands with a small market share tend to spend proportionately more for advertising and sales promotion
than those with a large market share?
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a.
Beyond a certain level of spending for advertising and sales promotion, diminishing returns set in.
b.
A certain minimum level of exposure is needed to measurably affect purchase habits.
c.
Both are correct.
d.
Neither is correct.
93. Which of the following refers to a media-scheduling strategy in which ads are run heavily every other month or every
two weeks to achieve a greater impact with an increased frequency and reach at those times?
a.
Flighted media schedule
b.
Pulsing media schedule
c.
Continuous media schedule
d.
Seasonal media schedule
94. Which theory is based on the premise that advertising works by influencing the brand choice of people who are ready
to buy?
a.
Recency planning
b.
Pulsing media schedule
c.
Flighted media schedule
d.
Continuous media schedule
95. An alternative to a commercial spot is a(n)_____, a thirty-minute or longer advertisement, which is relatively
inexpensive to produce and air.
a.
podcast
b.
premium
c.
sweepstakes
d.
infomercial
96. Which of the following is NOT a characteristic of outdoor media?
a.
Flexibility
b.
High cost
c.
Ability to reach a broad and diverse market
d.
Promotion of convenience products and services
97. A media scheduling strategy that runs advertising only during times of the year when the product is most likely to be
used is known as a ____________.
a.
flighted media schedule
b.
pulsing media schedule
c.
continuous media schedule
d.
seasonal media schedule
98. If the goal of the promotion plan is to improve the image of the company or the industry, _____ may be used.
a.
institutional advertising
b.
pioneering advertising
c.
competitive advertising
d.
comparative advertising
99. Unlike trade sales promotion methods, consumer sales promotion methods are:
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a.
targeted at the ultimate consumer market.
b.
directed toward members of the marketing channel.
c.
focused on persuading consumers to make slow purchases.
d.
concerned with offering free merchandise and store demonstrations.
100. Brita LED (light emitting diode) lighting uses comparative advertising to emphasize the benefits of using LEDs over
CFLs (cathode filament lamps). The advertisements emphasize that Brita’s LEDs cost less than CFLs and other brands of
LEDs, last longer, consume less energy, and need to be replaced less frequently than CFLs. In this scenario, which of the
following advertising appeals is used in Brita’s ads?
a.
Admiration
b.
Profit
c.
Vanity and egotism
d.
Fun and pleasure
101. If an advertiser wants to enhance the sales of a specific good or service, _____ should be used.
a.
institutional advertising
b.
product advertising
c.
corporate advertising
d.
advocacy advertising
102. Which of the following is a similarity between trade sales promotion and consumer sales promotion?
a.
Both focus on providing incentives to consumers or wholesalers to make an immediate purchase.
b.
Both are directed toward members of the marketing channel, such as wholesalers and retailers.
c.
Both aim to increase sales by using point-of-purchase display.
d.
Both target at members of the marketing channel.
103. A disadvantage of newspaper advertising is that:
a.
it has low geographic selectivity and flexibility.
b.
it encounters distractions from competing ads and news stories.
c.
it seldom lends itself well to cooperative advertising.
d.
it lacks news value, immediacy, and year-round readership.
104. Which of the following identifies the specific communication task that a campaign should accomplish for a specified
target audience during a specified period?
a.
Advertising gimmick
b.
Advertising objective
c.
Competitive advertising
d.
Pioneering advertising
105. Which of the following executional styles creates a character (such as the Energizer Bunny or Starkist’s Charlie the
Tuna) that represents the product in advertisements?
a.
Real/animated product symbols
b.
Fantasy
c.
Mood or image
d.
Spokesperson/testimonial
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106. The form of advertising that is heavily used during the introductory stage of the product life cycle and offers
consumers in-depth information about the benefits of the product class is:
a.
institutional advertising.
b.
pioneering advertising.
c.
competitive advertising.
d.
comparative advertising.
107. Which of the following models does an advertising campaign often follow?
a.
BCG matrix
b.
The IMC model
c.
The AIDA model
d.
SWOT matrix
108. _____ is the ability of an advertising medium to reach a precisely defined market.
a.
Audience selectivity
b.
Target sensitivity
c.
Projection efficiency
d.
Target efficiency
109. New brands with small market shares tend to spend more on advertising and sales promotions than those with large
market shares because:
a.
a certain minimum level of exposure is needed to measurably affect purchase habits.
b.
spending more will inhibit the advertising response function.
c.
returns multiply exponentially after a certain level of spending.
d.
the percentage of growth in market share is directly proportionate to the amount of money spent on
advertising.
110. Explain what is meant by media planning and how the advertisers decide which medium to choose to best
communicate their advertising objective. Discuss the importance of media planning in advertising.
111. Discuss the concept of advergaming and how online games are used for advertising.
112. Discuss crisis management and provide examples to support how marketers manage unfavorable publicity during a
crisis.
113. Discuss the effects of advertising on consumers
114. Define what is meant by sales promotion and identify two types of sales promotions that target two distinctly
different markets. Discuss who offers the promotion, who benefits from it, and how sales promotion is cheaper than
advertising.
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