1) Negotiated commission rates for advertising agencies:
A.average between 8 to 10 percent.
B.are usually set between 15 to 25 percent.
C.are typically not based on a sliding scale.
D.are rarely used by consumer-products advertisers.
E.are designed primarily to benefit agencies.
2) Which of the following is true of a Q-score?
A.It explains the popularity of a prime time television show.
B.It describes the size of television viewing audiences that prefer to buy a product
based solely on the celebrity who endorsed it.
C.It answers the question, “How appealing is a celebrity endorser among people who do
know him or her?”
D.It answers the question, “What percentage of people see celebrities as trendsetters?”
E.It identifies the emotional impact that advertisements have on the target audience.
3) An advantage of coupons is that they:
A.elicit faster consumer responses than samples, unlike sweepstakes and rebates.
B.generally elicit immediate response from consumers.
C.are very effective even without brand name awareness.
D.allow a marketer to offer a price reduction only to consumers who are price sensitive.
E. build brand loyalty.
4) Which of the following best defines perception?
A.It is an associative learning process which helps in associating a product or service
with a favorable emotional state.
B.It is the process of presenting a new production process or product into the market
and promoting the same to prospective customers.
C.It is the process by which an individual receives, selects, organizes, and interprets
information to create a meaningful picture of the world.
D.It is an intense emotional response of a consumer when he realizes that a repressed
conflict is about to emerge into consciousness.
E.It is a situation that arises when a consumer’s prior product knowledge and buying
behavior gets distorted and leads to illegal buying situations.
5) The selection of an agency to handle a company’s international advertising depends
on:
A.the type of marketing segmentation that the company is opting for.
B.the company’s usage of advertising material that is prepared in the home country.
C.the media that are permitted to be employed in foreign markets.
D.the type of assistance it needs to meet its goals and objectives in foreign markets.
E.the specific taxes that will be levied against advertising.
6) Frosty Inc., a beverage manufacturer, only had one product in its line and was
targeting all types of customers. With respect to the market coverage alternatives, which
of the following would best suit the company?
A.Concentrated marketing
B.Undifferentiated marketing
C.Bait-and-switch marketing
D.Niche marketing
E.Psychographic marketing
7) The customer response to direct marketing can take the form of:
A.inquiries.
B.product diversification.
C.product segmentation.
D.sales promotions.
E.push promotions.
8) Which of the following differentiates an ethnographic study from a focus group
study?
A.Ethnographic research is a quantitative research technique, whereas focus group
studies are qualitative.
B.Ethnographic research is difficult to administer, whereas focus group studies are easy
to administer.
C.Ethnographic research studies are inexpensive, whereas conducting focus group
studies requires a huge investment.
D.Focus group studies involve observing consumers in their natural environment,
whereas ethnographic research involves observing consumers in controlled settings.
E.Focus group studies are quantitative research techniques, whereas ethnographic
research is qualitative.
9) Which of the following best defines fluency?
A.The ability to detect problems associated with the creative strategies.
B.The extent to which an ad contains elements that are novel and different.
C.The ability to generate a large number of ideas around a creative idea.
D.The degree to which various elements of the ad are valuable to the customer.
E.The ability to select the appropriate target market for a particular product or service.
10) According to the persuasion matrix, which of the following is a dependable variable
of the communications model?
A.Source
B.Message
C.Comprehension
D.Channel
E.Type of message appeal
11) When publications fix advertising rates based on a set average circulation figure
that is nearly always below the actual circulation delivered by a given issue but carries
no guarantee, they are using:
A.ancillary circulation rates.
B.a circulation verification system.
C.pass-along circulation rate scale.
D.a circulation rate base system.
E.a rebate system.
12) Marketers’ use of trade allowances is controlled by the _____, which prohibits price
discrimination.
A.Federal Trade Commission Act
B.Lanham Act
C.Robinson-Patman Act
D.FDA Act
E.Wheeler-Lea Amendment
13) Which of the following is a disadvantage associated with branded entertainment?
A.High absolute cost
B.Low exposure number
C.Poor recall
D.Ineffective reach
E.Weakened brand image
14) Good tests of advertising effectiveness must address the nine principles established
by Positioning Advertising Copy Testing (PACT). One of the easiest ways to
accomplish this is by following a decision sequence model. The first step in the model
is to:
A.understand the appropriate research.
B.create a model that uses multiple measures.
C.establish communication objectives.
D.decide whether to use pretests or posttests.
E.develop a consumer response model.