MCQs

1 CORRECT
If value is defined as the customers perception of all of the benefits of a

product or service weighed against all the costs of acquiring and consuming
it, the mileage of a car would be considered as a(n):
functional benefit.
A)
experiential benefit.
B)
social benefit.
C)
psychological benefit.
D)
internal benefit.
E)
Feedback:
Difficulty: Hard
LO: 01-01
Topic: The Role of Marketing
Blooms: Apply
AACSB: Reflective Thinking
Value is the customers perception of all of the benefits of a product or
service weighed against all the costs of acquiring and consuming it. The
mileage of a car would be considered a functional benefit. Benefits can be
functional (the performance of the product), experiential (what it feels
like to use the product), and/or psychological (feelings such as self-
esteem or status that result from owning a particular brand).
2
INCORRECT Which of the following is true of the consequences of a company coordinating
its marketing communication efforts?
It restricts the usage of Internet as an advertising medium.

A)
It enables large companies to easily coordinate between remote and

field offices.
B)
It assists the company in avoiding duplication of promotional efforts.

C)
It creates a lessening need for advertising agencies to be accountable

for their actions.
D)
It minimizes the companys return on investment in marketing and

promotion.
E)
Feedback:
Difficulty: Medium
LO: 01-03
Topic: Integrated Marketing Communications
Blooms: Understand
AACSB: Analytic
By coordinating their marketing communications efforts, companies can
avoid duplication, take advantage of synergy among promotional tools,
and develop more efficient and effective marketing communications
programs.
3
INCORRECT Which of the following is true of brand identity?
It is only done with the help of mass media advertising.

A)
It is recognized as an important asset by most companies.

B)
It is generally regarded as a subsidiary marketing effort.

C)
It is also known as the trademark or service mark of the organization.

D)
It is built and maintained only by spending large sums of money.

E)
Feedback:
Difficulty: Medium
LO: 01-03
Topic: Integrated Marketing Communications
Blooms: Understand
AACSB: Analytic
Companies recognize that brand equity is as important an asset as
factories, patents, and cash because strong brands have the power to
command a premium price from consumers as well as investors.
4 CORRECT
MilkBone, a brand of dog biscuits owned by Venus Inc., wants to advertise its
brand to owners of smaller breeds of dogs. Which of the following types of
advertising must Venus use to create demand for MilkBone?
Selective-demand advertising
A)
Professional advertising
B)
Trade advertising
C)
Primary-demand advertising
D)
Direct-response advertising
E)
Feedback:
Difficulty: Hard
LO: 01-04
Topic: The Promotional Mix: The Tools for IMC
Blooms: Apply
Selective-demand advertising focuses on creating demand for a specific
companys brands, whereas primary-demand advertising is designed to
stimulate demand for the general product class or entire industry.
5
INCORRECT An advertisement for Gills onions in Fresh Cut, a publication for retailers in
the grocery business, encouraged store managers to stock up on Gills brand
onions. The ads goal was to make managers promote and resell Gills
onions. The advertisement is an example of _____ advertising.
professional
A)
trade
B)
local
C)
retail
D)
primary demand
E)
Feedback:
Difficulty: Hard
LO: 01-04
Blooms: Apply
Trade advertising is advertising targeted to marketing channel members
such as wholesalers, distributors, and retailers. The goal is to encourage
channel members to stock, promote, and resell the manufacturers
branded products to their customers.
6
INCORRECT CL Corp., which owns a chain of retail stores, gives 20 percent discount
coupons to customers who purchase more than $200 worth of goods at any
of its outlets. Which element of integrated marketing communications is
illustrated in this scenario?
Sponsorship
A)
Interactive marketing
B)
Direct-order advertising
C)
Sales promotion
D)
Personal selling
E)
Feedback:
Difficulty: Hard
LO: 01-04
Blooms: Apply
Sales promotion is generally defined as those marketing activities that
provide extra value or incentives to the sales force, the distributors, or
the ultimate consumer and can stimulate immediate sales.
7
INCORRECT SoBe beverages was a sponsor of the Gravity Games, which had contestants
performing 360-degree turns in mid-air while on motorcycles, competitive
skateboarding, and other extreme sports. By co-sponsoring this event, SoBe
indulged in:
trade advertising.
A)
direct marketing.
B)
personal selling.
C)
primary-demand advertising.
D)
public relations.
E)
Feedback:
Difficulty: Hard
LO: 01-04
Blooms: Apply
Public relations uses publicity and a variety of other toolsincluding
special publications, participation in community activities, fund-raising,
sponsorship of special events, and various public affairs activitiesto
enhance an organizations image.
8
INCORRECT According to Tom Duncans four basic categories of audience contact or touch
points, advertisements, websites, press releases, brochures, and point-of-
purchase displays are all examples of:
intrinsic touch points.

A)
company created touch points.

B)
customer-initiated touch points.
C)
unexpected touch points.

D)
extrinsic touch points.

E)
Feedback:
Difficulty: Easy
LO: 01-05
Topic: IMC Involves Audience Contacts
Blooms: Remember
AACSB: Analytic
Tom Duncan notes that there are four basic categories of contact or touch
points. Company created touch points are planned marketing
communication messages created by the company such as
advertisements, websites, news/press releases, packaging, brochures
and collateral material, sale promotions, and point-of-purchase displays
along with other types of in-store dcor.
9 CORRECT
Waves Corp. is assessing the competency of its marketing department. It
discovers that the department is incapable of developing and implementing a
successful promotional program within the company. It also finds that its
marketing division is understaffed and underfunded. In this scenario, the
firm is using a(n) _____.
internal analysis
A)
macro analysis
B)
differentiated analysis
C)
external analysis
D)
communication analysis
E)
Feedback:
Difficulty: Hard
LO: 01-06
Topic: The IMC Planning Process
Blooms: Apply
Waves Corp. is using an internal analysis. The internal analysis assesses
relevant areas involving the product/service offering and the firm itself.
The capabilities of the firm and its ability to develop and implement a
successful promotional program, the organization of the promotional
department, and the successes and failures of past programs should be
reviewed.
10
INCORRECT Which of the following is true of external analysis conducted by firms?
It focuses on product/service offering.

A)
It focuses on aspects such as competitors and consumers.

B)
It examines a firms ability to conduct successful staffing programs.

C)
It studies the systemic failures of marketing departments.

D)
It examines the individual failures of the various departments.

E)
Feedback:
Difficulty: Medium
LO: 01-06
Topic: The IMC Planning Process
Blooms: Understand
AACSB: Analytic
The external analysis focuses on factors such as characteristics of the
firms customers, market segments, positioning strategies, and
competitors. An important part of the external analysis is a detailed
consideration of customers characteristics and buying patterns, their
decision processes, and factors influencing their purchase decisions.
1 CORRECT
In Krypton smoking is increasingly becoming common and few government
restrictions have been imposed as yet. For tobacco companies, Krypton
represents a:
market opportunity.
A)
market aggregation.
B)
spot market.
C)
black market.
D)
market threat.
E)
Feedback:
Difficulty: Hard
LO: 02-01
Topic: Marketing Strategy and Analysis
Bloom's: Apply
Feedback: In the above scenario, Kyrpton represents a market
opportunity for tobacco companies. Market opportunities are areas where
there are favorable demand trends, where the company believes
customer needs and opportunities are not being satisfied, and where it
can compete effectively.
2
INCORRECT Which of the following is a way to achieve competitive advantage?
Having low production costs and high prices

A)
Practicing bait marketing

B)
Providing inferior customer service

C)
Dominating channels of distribution

D)
Copying competitor pricing

E)
Feedback:
Difficulty: Medium
LO: 02-01
Topic: Marketing Strategy and Analysis
Bloom's: Understand
AACSB: Analytic
Feedback: Ways to achieve a competitive advantage include having
quality products that command a premium price, providing superior
customer service, having the lowest production costs and lower prices, or
dominating channels of distribution. Competitive advantage can also be
achieved through advertising that creates and maintains product
differentiation and brand equity.
3
INCORRECT The first step in the target marketing process for a manufacturer of exercise
videos is:
developing a positioning strategy.

A)
identifying markets with unfulfilled needs.

B)
conducting a SWOT analysis of all of its potential competitors.

C)
hiring an advertising agency.

D)
delineating market segments to be targeted.
E)
Feedback:
Difficulty: Easy
LO: 02-02
Topic: The Target Marketing Process
Bloom's: Understand
AACSB: Analytic
Feedback: The target marketing process involves four basic steps:
identifying markets with unfulfilled needs, segmenting the market,
targeting specific segments, and positioning one's product or service
through marketing strategies. When employing a target marketing
strategy, the marketer identifies the specific needs of groups of people
(or segments), selects one or more of these segments as a target, and
develops marketing programs directed to each.
4
INCORRECT Seeds Inc. is a manufacturer of organic rice, grain dishes, salsa dips, and
salad dressings. The company decides to target those who are conscious
about their health and nutrition. In this scenario, Seeds have created a
_____.
market share
A)
market environment
B)
marketing channel
C)
marketing mix
D)
market segment
E)
Feedback:
Difficulty: Hard
LO: 02-03
Bloom's: Apply
AACSB: Reflective thinking
Feedback: The above scenario is an illustration of market segmentation.
Market segmentation is dividing a market into distinct groups that (1)
have common needs and (2) will respond similarly to a marketing action.
5
INCORRECT In the _____ segmentation approach, markets can be divided according to
different counties, regions, and states.
behavioristic
A)
lifestyle
B)
geographic
C)
benefit
D)
demographic
E)
Feedback:
Difficulty: Easy
LO: 02-03
Bloom's: Remember
AACSB: Analytic
Feedback: In the geographic segmentation approach, markets are divided
into different geographic units. These units may include nations, states,
counties, or even neighborhoods. Consumers often have different buying
habits depending on where they reside. Regional differences may exist in
regard to food, drinks, attitudes toward foreign products, and the like.
6
INCORRECT Television network managers know that the audience for golf tournaments is
relatively small in number. However, majority of the viewers are from high-
income group. The networks sell advertising for golf tournaments based on
_____ segmentation.
behavioristic
A)
psychographic
B)
geographic
C)
attribute
D)
demographic
E)
Feedback:
Difficulty: Hard
LO: 02-03
Bloom's: Apply
Feedback: The above scenario is an illustration of demographic
segmentation. Dividing the market on the basis of demographic variables
such as age, sex, family size, education, income, and social class is called
demographic segmentation.
7
INCORRECT Which of the following is a primary variable considered in psychographic
segmentation?
Residential tenure
A)
Lifecycles
B)
Life stage
C)
Metropolitan area
D)
Household size
E)
Feedback:
Difficulty: Easy
LO: 02-03
Bloom's: Remember
AACSB: Analytic
Feedback: Dividing the market on the basis of personality, lifecycles,
and/or lifestyles is referred to as psychographic segmentation.
8
INCORRECT Nuvo Tactical Inc., a watch manufacturer, specializes in manufacturing
tactical watches that are used by deep-sea divers. The company placed an
ad in a national magazine, and it states that their watches are extremely
durable, water proof, and excellent for tactical use. In this scenario, Nuvo is
using _____ segmentation
demographic
A)
geographic
B)
benefit
C)
undifferentiated
D)
psychographic
E)
Feedback:
Difficulty: Hard
LO: 02-03
Bloom's: Apply
Feedback: In the above scenario, Nuvo Tactical Inc. is using benefit
segmentation. In purchasing products, consumers are generally trying to
satisfy specific needs and/or wants. They are looking for products that
provide specific benefits to satisfy these needs. The grouping of
consumers on the basis of attributes sought in a product is known as
benefit segmentation and is widely used.
9
INCORRECT _____ involves ignoring segment differences and offering just one product or
service to the entire market.
Buzz marketing
A)
Concentrated marketing
B)
Mass marketing
C)
Differentiated marketing
D)
Undifferentiated marketing
E)
Feedback:
Difficulty: Easy
LO: 02-03
Bloom's: Remember
AACSB: Analytic
Feedback: Undifferentiated marketing involves ignoring segment
differences and offering just one product or service to the entire market.
10
CORRECT Which of the following is true of market positioning strategies?
They generally focus on either the customer or the competition.

A)
They are considered to be an insignificant factor in branding.

B)
The first step in selecting a target market is selecting an appropriate

market positioning strategy.
C)
They fail to associate product benefits with customer needs.

D)
They are inapplicable to service-based products.

E)
Feedback:
Difficulty: Medium
LO: 02-04
Bloom's: Understand
AACSB: Analytic
Feedback: Positioning strategies generally focus on either the consumer
or the competition. While both approaches involve the association of
product benefits with consumer needs, the former does so by linking the
product with the benefits the consumer will derive or creating a favorable
brand image. The latter approach positions the product by comparing it
and the benefit it offers versus the competition.
11
CORRECT Link Juices, a manufacturer of bottled juices, launches an ad campaign with
a slogan that states "Drink our juices for a nutritious life." The ad also claims
that one juice box has the equivalent nutritional value of three fresh fruits.
In this scenario, Link Juices is making use of _____ segmentation.
product class
A)
product user
B)
price/quality
C)
competitor
D)
cultural symbol
E)
Feedback:
Difficulty: Hard
LO: 02-04
Topic: Developing a Positioning Strategy
Bloom's: Apply
Feedback: In the above scenario, Link Juices is making use of product
class segmentation. Often the competition for a product comes from
outside the product class. For example, airlines know that while they
compete with other airlines, trains and buses are also viable alternatives.
12
INCORRECT Yin Air, a Chinese airline, constantly associates itself with the giant panda.
The company's logo contains a panda chewing on a leaf. Considering that
pandas are revered in China, the company is using segmentation by:
product class.
A)
product attributes.
B)
price/quality.
C)
competitor.
D)
cultural symbol.
E)
Feedback:
Difficulty: Hard
LO: 02-04
Bloom's: Apply
Feedback: The above scenario is an illustration of segmentation by
cultural symbol. Aaker and Myers include an additional positioning
strategy in which cultural symbols are used to differentiate brands. By
associating the brand with a meaningful symbol, the brand is easily
identifiable and differentiated from others.
13
INCORRECT CL Drinks Inc., a sports drink manufacturer, decides to enter into new
markets due to a sales slump in the home market. The company changed its
logo and rebranded its product as a sports drink "ideal for top-level
athletes." In this scenario, CL Drinks is using:
a repositioning strategy.
A)
a benefit positioning strategy.

B)
positioning by cultural symbols.

C)
positioning by product class.

D)
a lifestyle segmentation strategy.

E)
Feedback:
Difficulty: Hard
LO: 02-04
Bloom's: Apply
Feedback: In the above scenario, CL Drinks Inc. is using a repositioning
strategy. Repositioning involves altering or changing a product's or
brand's position. Repositioning a product usually occurs because of
declining or stagnant sales or because of anticipated opportunities in
other market positions.
14
INCORRECT Which of the following is true of brand equity?
It is the packaging element of the marketing and advertising mix.

A)
It is the place element of the marketing mix.

B)
It fails to provide a competitive advantage.
C)
It results from a favorable image of a consumer to a company name.

D)
It is a tangible asset of value.

E)
Feedback:
Difficulty: Medium
LO: 02-05
Topic: Developing the Marketing Planning Program
Bloom's: Understand
AACSB: Analytic
Feedback: Brand equity can be thought of as an intangible asset of added
value or goodwill that results from the favorable image, impressions of
differentiation, and/or the strength of consumer attachment to a
company name, brand name, or trademark. Brand equity allows a brand
to earn greater sales volume and/or higher margins than it could without
the name, providing the company with a competitive advantage.
15
CORRECT Pharmaceutical ads on television using the theme "Ask your doctor about
Victor's Cough Syrup" are examples of:
promotional pull strategies.

A)
promotional push strategies.

B)
bait-and-switching advertising strategies.

C)
market harvesting strategies.

D)
non-intermediary marketing.
E)
Feedback:
Difficulty: Hard
LO: 02-05
Topic: Developing the Marketing Planning Program
Bloom's: Apply
Feedback: The above scenario is an illustration of promotional pull
strategies. Promotional pull strategy deals with spending money on
advertising and sales promotion efforts directed toward the ultimate
consumer. The goal of a pull strategy is to create demand among
consumers and encourage them to request the product from the retailer.
Stimulating demand at the end-user level pulls the product through the
channels of distribution.
1
INCORRECT Nolan works at PrimeAd, an advertising agency that has a centralized
system. He controls the entire promotions operation, including budgeting,
coordinating creation and production of ads, planning media schedules, and
monitoring and administering the sales promotions programs for all the
company's products or services. Identify Nolan's position in the organization.
Associate creative director

A)
Art director
B)
Marketing research executive

C)
Copywriter
D)
Advertising manager
E)
Feedback:
Difficulty: Hard
LO: 03-02
Topic: Organizing for Advertising and Promotion in the Firm: The Client's
Role
Bloom's: Apply
In the above scenario, Nolan is an advertising manager. In a centralized
system, the advertising manager controls the entire promotions
operation, including budgeting, coordinating creation and production of
ads, planning media schedules, and monitoring and administering the
sales promotions programs for all the company's products or services.
2 CORRECT
Which of the following is true of the role of a brand manager?
It includes sales and profit performance.

A)
It does not require extensive short-term planning capabilities.

B)
It primarily includes the creative aspects.

C)
It is synonymous with the role of an advertising manager.

D)
It does not include budgeting in its scope.

E)
Feedback:
Difficulty: Medium
LO: 03-02
Topic: Organizing for Advertising and Promotion in the Firm: The Client's
Role
Bloom's: Understand
AACSB: Analytic
A brand manager is responsible for the total management of the brand,
including planning, budgeting, sales, and profit performance.
3
INCORRECT Companies use external advertising agencies primarily because:
they allow for more top management involvement in advertising

decisions.
A)
the Federal Trade Commission recommends outside firms in order to

avoid accusations of insider trading.
B)
they provide the client with the services of highly skilled individuals who
are specialists in their fields.
C)
they gain knowledge about competitors activities.

D)
they are able to respond more quickly to environmental changes than

any other organizational system.
E)
Feedback:
Difficulty: Easy
LO: 03-03
Topic: Advertising Agencies
Bloom's: Remember
AACSB: Analytic
Probably the main reason outside agencies are used is that they provide
the client with the services of highly skilled individuals who are
specialists in their chosen fields.
4
INCORRECT In full-service advertising agencies, copywriters would be a part of:
multimedia department.
A)
creative services department.

B)
research department.
C)
management and finance department.

D)
marketing services department.
E)
Feedback:
Difficulty: Easy
LO: 03-03
Bloom's: Remember
AACSB: Analytic
The creative services department is responsible for the creation and
execution of advertisements. The individuals who conceive the ideas for
the ads and write the headlines, subheads, and body copy (the words
constituting the message) are known as copywriters. In full-service
agencies, copywriters may also be involved in determining the basic
appeal or theme of the ad campaign and often prepare a rough initial
visual layout of the print ad or television commercial.
5
INCORRECT Creative boutiques:
are departments in most full-service advertising agencies.

A)
are used when an advertiser wants to reach a market that is not

responsive to ads in traditional media.
B)
are types of full-service agencies that limit their activities to guerrilla

marketing campaigns.
C)
lack media, research, or account planning capabilities.

D)
coordinate integrated marketing campaigns in order to ensure delivery

of consistent campaign messages.
E)
Feedback:
Difficulty: Easy
LO: 03-03
Bloom's: Remember
AACSB: Analytic
Creative boutiques are small ad agencies that provide only creative
services and have long been an important part of the advertising
industry. These specialized agencies have creative personnel such as
writers and artists on staff but do not have media, research, or account
planning capabilities.
6
INCORRECT Which of the following statements is the traditional method of agency
compensation?
Fee-commission combination system

A)
Cost-plus system
B)
Fixed-fee system
C)
Incentive-based system
D)
Commission system
E)
Feedback:
Difficulty: Easy
LO: 03-04
Topic: Agency Compensation
Bloom's: Remember
AACSB: Analytic
The traditional method of compensating agencies is through a
commission system, where the agency receives a specified commission
(usually 15 percent) from the media on any advertising time or space it
purchases for its client. (For outdoor advertising, the commission is 16
2/3 percent.)
7 CORRECT
The advertising agency's evaluation process involves two types of
assessments. They are the financial audit and:
qualitative audit.
A)
social audit.
B)
investigative audit.
C)
income audit.
D)
cost efficiency audit.

E)
Feedback:
Difficulty: Easy
LO: 03-04
Topic: Evaluating Agencies
Bloom's: Remember
AACSB: Analytic
The agency evaluation process usually involves two types of
assessments, one financial and operational and the other more
qualitative.
8
INCORRECT Which of the following is true of speculative presentations?
They are another name given to storyboards.

A)
They are the name given to lavish, electronic billboards.
B)
They are a technique used by ad agencies for gaining new clients.

C)
They are a source of a great deal of conflict between agencies and their
clients.
D)
They are typical presentations given in the stock market.

E)
Feedback:
Difficulty: Medium
LO: 03-04
Topic: Evaluating Agencies
Bloom's: Understand
AACSB: Analytic
A basic goal of the new business development group is to receive an
invitation from a company to make a presentation. This gives the agency
the opportunity to sell itselfto describe its experience, personnel,
capabilities, and operating procedures, as well as to demonstrate its
previous work. The agency may be asked to make a speculative
presentation, in which it examines the client's marketing situation and
proposes a tentative communications campaign.
9
INCORRECT A typical direct-response agency is divided into three main departments.
They are:
research, account relations, and creative.

A)
account management, creative, and media.

B)
research, list management, and creative.

C)
account management, legal, and list management.

D)
research, legal, and account management.

E)
Feedback:
Difficulty: Easy
LO: 03-05
Topic: Specialized Services
Bloom's: Remember
AACSB: Analytic
A typical direct-response agency is divided into three main departments:
account management, creative, and media. Some agencies also have a
department whose function is to develop and manage databases for their
clients.
10
INCORRECT Which of the following is a disadvantage of integrated marketing
communication services?
They make it more difficult to coordinate the activities of various

individual departments.
A)
They do not enable a company to create a single image for the product.
B)
They do not result in greater synergy in the organization.

C)
They usually result in political wrangling among providers.

D)
They do not enable companies to maintain control of the entire

promotional process.
E)
Feedback:
Difficulty: Medium
LO: 03-06
Topic: Integrated Marketing Communications Services
Bloom's: Understand
AACSB: Analytic
1
INCORRECT Which of the following best describes consumer behavior?
It is defined as a group of evoked sets that companies are likely to

encounter while marketing a product or a service.
A)
It is a process that assumes that learning is an associative process with

an already existing relationship between a stimulus and a response.
B)
It is defined as the conditioned response to stimuli that generally
enables consumers to make purchase decisions if they encounter
C) cognitive dissonance.
It refers to the ability to perceive a stimulus that is below the level of

conscious awareness.
D)
It is the process and activities people engage in when searching for,
selecting, purchasing, using, evaluating, and disposing of products and
E) services.
Feedback:
Difficulty: Medium
LO: 04-01
Topic: An Overview of Consumer Behavior
Blooms: Understand
AACSB: Analytic
Consumer behavior can be defined as the process and activities people
engage in when searching for, selecting, purchasing, using, evaluating,
and disposing of products and services so as to satisfy their needs and
desires.
2
INCORRECT A discrepancy between a persons ideal state and an actual state is likely to
lead to which of the following stages of the consumer decision-making
process?
Alternative evaluation
A)
Postpurchase evaluation
B)
Evaluation assimilation
C)
Information search
D)
Problem recognition
E)
Feedback:
Difficulty: Medium
LO: 04-02
Topic: The Consumer Decision-Making Process
Blooms: Understand
AACSB: Analytic
Problem recognition is caused by a difference between the consumers
ideal state and actual state.
3
INCORRECT A marketer who uses symbols or catchy rhymes in its advertisements is
making use of:
consideration threats.
A)
evoked sets.
B)
mnemonics.
C)
trigger points.
D)
heuristics.
E)
Feedback:
Difficulty: Medium
LO: 04-03
Blooms: Understand
AACSB: Analytic
Mnemonics such as symbols, rhymes, associations, and images that assist
in the learning and memory process are helpful. Many advertisers use
telephone numbers that spell out the company name and are easy to
remember (for example, 1-800-GOFEDEX).
4
INCORRECT In order to be part of consumers evoked sets, popular brands with large
advertising budgets frequently use:
subliminal advertising.
A)
reminder advertising.
B)
bait advertising.
C)
switch techniques.
D)
carrot-and-stick advertising.
E)
Feedback:
Difficulty: Medium
LO: 04-03
Blooms: Understand
AACSB: Analytic
The goal of most advertising and promotional strategies is to increase the
likelihood that a brand will be included in the consumers evoked set and
considered during alternative evaluation. Popular brands with large
advertising budgets use reminder advertising to maintain high awareness
levels and increase the likelihood they will be considered by consumers in
the market for the product.
5 CORRECT
With respect to the evaluative criteria of a product, which of the following is
true of functional consequences?
They can be either objective or subjective.

A)
They are always abstract outcomes.

B)
They primarily involve considerations such as image and styling.

C)
They are more personal than psychosocial consequences.

D)
They deal only with product experiences.

E)
Feedback:
Difficulty: Medium
LO: 04-03
Topic: Consumer Decision-Making Process
Blooms: Understand
AACSB: Analytic
Functional consequences are concrete outcomes of product or service
usage that are tangible and directly experienced by consumers. The taste
of a soft drink or a potato chip, the acceleration of a car, and the speed of
the Internet service provider are examples of functional consequences.
6 CORRECT
Tess wants to pursue an MBA. As she looks at possible universities, she will
use _____ such as location, costs, and scholarship availability to compare
possible institutions.
evaluative criteria
A)
schedules of reinforcement
B)
dissonance motives
C)
mnemonics
D)
reinforcement criteria
E)
Feedback:
Difficulty: Hard
LO: 04-03
Blooms: Apply
Evaluative criteria are the dimensions or attributes of a product or service
that are used to compare different alternatives.
7
INCORRECT _____ are defined as the way product knowledge, meanings, and beliefs are
combined to evaluate two or more alternatives.
Heuristic processes
A)
Dissimilation processes
B)
Differentiation processes
C)
Integration processes
D)
Mnemonic processes
E)
Feedback:
Difficulty: Easy
LO: 04-03
Blooms: Remember
AACSB: Analytic
Integration processes are the way product knowledge, meanings, and
beliefs are combined to evaluate two or more alternatives.
8 CORRECT
Which of the following is true of the consumer decision-making process?
The consumer decision process does not end with the purchase.
A)
The consumer decision process starts with the information search.

B)
The process is not linked to consumers internal psychological processes.

C)
The process ends with the problem recognition phase.

D)
The process always leads to cognitive dissonance among consumers.

E)
Feedback:
Difficulty: Medium
LO: 04-03
Topic: Consumer Decision-Making Process
Blooms: Understand
AACSB: Analytic
The consumer decision process does not end with the purchase. After
using the product or service, the consumer compares the level of
performance with expectations and is either satisfied or dissatisfied. The
postpurchase evaluation process is important because the feedback
acquired from actual use of a product will influence the likelihood of
future purchases.
9
INCORRECT Classical conditioning assumes that learning is a(n):
rare process.
A)
series of heuristics.
B)
cognitive orientation.
C)
deceptive process.
D)
associative process.
E)
Feedback:
Difficulty: Easy
LO: 04-04
Topic: The Consumer Learning Process
Blooms: Remember
AACSB: Analytic
Classical conditioning assumes that learning is an associative process
with an already existing relationship between a stimulus and a response.
10
INCORRECT With respect to the various generational groups in terms of shopping
behaviors, the generation born after 1994 are called:
Gen X.
A)
Gen Z.
B)
Gen Y.
C)
baby boomers.
D)
millennials.
E)
Feedback:
Difficulty: Easy
LO: 04-05
Topic: Environmental Influences on Consumer Behavior
Blooms: Remember
AACSB: Analytic
With respect to the various generational groups in terms of shopping
behaviors, the generation born after 1994 are called Gen Z. Gen Z is the
most connected generation. They love electronics, have videogames and
TVs in their rooms. They tend to stay indoors more than other
generations.
11
INCORRECT With respect to the various generational groups in regard to shopping
behaviors, which of the following generations is also called Millennials?
Gen X
A)
Gen Y
B)
Baby boomers
C)
Gen Z
D)
Greatest generation
E)
Feedback:
Difficulty: Easy
LO: 04-05
Blooms: Remember
AACSB: Analytic
Millennials is another name given to the Gen Y group. Generation Y group
is more likely to make impulse purchases, prefer mass merchandisers and
supercenters, and use online coupons and shop online.
12
INCORRECT Ryans father wishes to buy a new laptop. He entrusts the task of gathering
details of the various options to Ryan. Subsequently, Ryan uses the Internet
and tech-magazines to gather the required details. With respect to family
decision-making, Ryan is the:
decision maker.
A)
consumer.
B)
purchasing agent.
C)
information provider.
D)
initiator.
E)
Feedback:
Difficulty: Hard
LO: 04-05
Blooms: Apply
The information provider is the individual responsible for gathering
information to be used in making the decisionfor example, the teenage
car buff who knows where to find product information in specific
magazines or collects it from dealers.
1
INCORRECT Which of the following is true of communication?
It is a process that ends when the source relays information.

A)
It cannot be initiated by an organization or a nonpersonal entity.
B)
It starts with the channel messenger.

C)
It can be defined as the exchange of ideas.

D)
It does not involve establishing a commonness of thought.

E)
Feedback:
Difficulty: Medium
LO: 05-01
Topic: The Nature of Communication
Blooms: Understand
AACSB: Analytic
The communication process is often very complex. Success depends on
such factors as the nature of a message, the audiences interpretation of
it, and the environment in which it is received. Communication has been
variously defined as the passing of information, the exchange of ideas, or
the process of establishing a commonness or oneness of thought between
a sender and a receiver.
2
INCORRECT An ad for BV Inc. did not contain a specific spokesperson or a celebrity.
However, it contained a background voice which illustrated the benefits of
using its products. The ad also featured some children playing in a garden/
front yard. According to the basic model of communication, the company is
the _____.
channel
A)
source
B)
messenger
C)
decoder
D)
receiver
E)
Feedback:
Difficulty: Hard
LO: 05-02
Topic: A Basic Model of Communication
Blooms: Apply
According to the basic model of communication, BV Inc. is the source. The
sender, or source, of a communication is a person or organization that
has information to share with another person or group of people.
3 CORRECT
Companies that utilize viral marketing must develop a seeding strategy,
which involves:
determining how many initial consumers are needed and selecting the
right consumers to start spreading the message.
A)
acting as a powerful source of information for its products and services.

B)
eliminating the maturity stage of the product life cycle.

C)
creating an effective switch marketing loop.

D)
marketing low-involvement products more vigorously than high-

involvement products.
E)
Feedback:
Difficulty: Medium
LO: 05-03
Blooms: Understand
AACSB: Analytic
Companies that utilize viral marketing must develop a seeding strategy
which involves determining how many initial consumers or seeds are
needed and selecting the right consumers to start the viral process.
4
INCORRECT Ciara saw a television ad for Sip&Snap soda that claimed to help consumers
lose weight upon its consumption over a course of time. She could not
comprehend how a sweetened carbonated beverage could help a consumer
improve his or her physical fitness. Ciaras inability to understand the
advertising message indicates a problem with:
encoding of the message.

A)
sourcing of the message.

B)
referencing of the message.

C)
channeling the message.

D)
decoding of the message.

E)
Feedback:
Difficulty: Hard
LO: 05-03
Blooms: Apply
In this scenario, Ciara is indicating an inability to decode information.
Decoding is the process of transforming a senders message back into
thought. For effective communication to occur, the message decoding
process of a receiver must match the encoding of a sender. Simply put,
this means the receiver understands and correctly interprets what the
source is trying to communicate.
5
INCORRECT Which of the following models of communication depicts a buyer as passing
through the attention, interest, desire, and action stages sequentially?
The adoption model

A)
The information processing model

B)
The AIDA model

C)
The effects model

D)
The innovation model

E)
Feedback:
Difficulty: Easy
LO: 05-04
Topic: The Response Process
Blooms: Remember
AACSB: Analytic
The AIDA model was developed to represent the stages a salesperson
must take a customer through in the personal-selling process. This model
depicts a buyer as passing successively through attention, interest,
desire, and action.
6
INCORRECT In which of the following situations would consumers most likely pass
through a low-involvement hierarchy?
Selecting bridesmaids' dresses

A)
Refilling the car with gas

B)
Buying a funeral monument

C)
Renting an apartment
D)
Choosing a birthday gift

E)
Feedback:
Difficulty: Hard
LO: 05-04
Blooms: Apply
In the low-involvement hierarchy, a receiver is viewed as passing from
cognition to behavior to attitude change. The learn do feel sequence
is thought to characterize situations of low consumer involvement in the
purchase process. Ray suggests this hierarchy tends to occur when
involvement in a purchase decision is low, there are minimal differences
among brand alternatives, and mass-media (especially broadcast)
advertising is important.
7
INCORRECT According to the McKinsey group, _____ is a unique component of the
consumer decision journey and is the only form of marketing that can touch
consumers at each and every stage.
seeding
A)
ambient advertising
B)
print media
C)
social media
D)
broadcast media
E)
Feedback:
Difficulty: Easy
LO: 05-05
Blooms: Remember
AACSB: Analytic
Page: 167 The McKinsey group note that social media is a unique
component of the consumer decision journey: its the only form of
marketing that can touch consumers at each and every stage, from when
theyre pondering brands and products right through the period after a
purchase, as their experience influences the brands they prefer and their
potential advocacy influences others.
8
INCORRECT Jake expresses disbelief after viewing a television ad that claimed Ultra-
white cleanser will remove grease stains within five minutes. He states that
such tall claims are unlikely to make him try the product. In this scenario,
Jake is expressing a(n):
inference rejection.
A)
counter-refutation.
B)
support argument.
C)
conditioned argument.
D)
counterargument.
E)
Feedback:
Difficulty: Hard
LO: 05-06
Topic: Cognitive Processing of Communications
Blooms: Apply
In this scenario, Jake is expressing a counterargument.
Counterarguments are thoughts a recipient has that are opposed to the
position taken in an advertising message. Support arguments are
thoughts of a recipient that affirm the claims made in the message.
9
INCORRECT Sienna Inc., a cosmetics company, employed Kate Gosling, a popular pop
artist, as its spokesperson. Kate endorsed the companys products and
subsequently Siennas popularity increased as a result of the endorsements.
In this scenario, the company is attempting to generate _____.
source derogation
A)
counterarguments
B)
response cues
C)
source bolster
D)
channel augmentation
E)
Feedback:
Difficulty: Hard
LO: 05-06
Blooms: Apply
In this scenario, Sienna is attempting to generate source bolsters.
Receivers who react favorably to a source generate favorable thoughts,
or source bolsters. Most advertisers attempt to hire spokespeople their
target audience likes so as to carry this effect over to the message.
10
INCORRECT According to the elaboration likelihood model (ELM) of persuasion, low
elaboration occurs when a receiver:
possesses the motivation and ability to process information but is not
likely to engage in detailed cognitive processing.
A)
pays close attention to the message content and scrutinizes the

message arguments.
B)
makes inferences about the position being advocated in a message on

the basis of simple positive or negative cues.
C)
engages in active information processing or thinking.

D)
engages in careful evaluation of the information contained in a message.

E)
Feedback:
Difficulty: Medium
LO: 05-06
Blooms: Remember
AACSB: Analytic
Low elaboration occurs when a receiver does not engage in active
information processing or thinking but rather makes inferences about the
position being advocated in a message on the basis of simple positive or
negative cues.
11
INCORRECT Which of the following statements is true about the elaboration likelihood
model (ELM) of persuasion?
The length of a message determines its effectiveness.

A)
For each message, consumers only use one cognitive shortcut.

B)
If the involvement level of the audience is high, peripheral cues should

be used.
C)
Peripheral cues can lead to rejection of a message.

D)
When involvement level of audience is low, celebrity endorsements

should be avoided.
E)
Feedback:
Difficulty: Easy
LO: 05-06
Blooms: Remember
AACSB: Analytic
Peripheral cues can lead to rejection of a message. For example, ads that
advocate extreme positions, use endorsers who are not well liked or have
credibility problems, or are not executed well (such as low-budget ads for
local retailers) may be rejected without any consideration of their
information or message arguments.
1 CORRECT
To develop an effective advertising and promotional campaign, a firm must
select the right spokesperson:
to deliver a compelling message through appropriate media.

A)
who advocates the equal opportunity advertising guidelines.

B)
who signals affluence and authority.

C)
to communicate the firms marketing strategy to its shareholders.

D)
to control the primacy effect.

E)
Feedback:
Difficulty: Medium
LO: 06-01
Topic: Promotional Planning Through the Persuasion Matrix
Blooms: Understand
AACSB: Analytic
To develop an effective advertising and promotional campaign, a firm
must select the right spokesperson to deliver a compelling message
through appropriate channels or media.
2 CORRECT
The independent variables of the persuasion matrix are:
the controllable components of the communication process.

A)
the emotional, contextual variables of communication.

B)
situation variables that determine how efficiently a message is received.

C)
the stages a receiver goes through while being persuaded.

D)
the humorous components of a message.

E)
Feedback:
Difficulty: Medium
LO: 06-01
Topic: Promotional Planning Through the Persuasion Matrix
Blooms: Understand
AACSB: Analytic
Independent variables are the controllable components of the
communication process.
3
INCORRECT Due to extensive exposure to the elements, Audrey develops a skin infection.
She sees an infomercial on rosacea, a medical condition that causes red
facial splotches, and a new drug that claims to cure the condition. After
watching the infomercial, Audrey is convinced that she suffers from rosacea
and asks her doctor for a prescription for the new drug. In this scenario,
Audrey has experienced the process of:
socialization.
A)
identification.
B)
internalization.
C)
symbiotic learning.
D)
acculturation.
E)
Feedback:
Difficulty: Hard
LO: 06-02
Topic: Source Factors
Blooms: Apply
Information from a credible source influences beliefs, opinions, attitudes,
and/or behavior through a process known as internalization, which
occurs when a receiver adopts the opinion of a credible communicator
since he or she believes information from this source is accurate. The
above scenario is an illustration of the process of internalization.
4
INCORRECT Halle McLean, a popular model and actress, appears in a cellphone
companys promotional communications. The cellphone company hopes her
appearance in its advertising will lead to _____, whereby the target audience
is motivated to adopt attitudes and preferences similar to Halles.
internalization
A)
antecedent learning
B)
commercialization
C)
the primacy effect

D)
identification
E)
Feedback:
Difficulty: Hard
LO: 06-02
Blooms: Apply
Source attractiveness leads to persuasion through a process of
identification, whereby a receiver is motivated to seek some type of
relationship with a source and thus adopts similar beliefs, attitudes,
preferences, or behavior. In the above scenario, the cellphone company is
attempting to use the process of identification.
5
INCORRECT A television commercial for a childrens health drink shows a mother serving
the health drink to her adolescent son for breakfast. This commercial tries to
establish a bond of similarity between the mother and the audience. This is
an example of a _____ advertisement.
comparative
A)
reputational
B)
slice-of-life
C)
spokesperson-oriented
D)
power-based
E)
Feedback:
Difficulty: Medium
LO: 06-02
Blooms: Apply
In a slice-of-life commercial, an advertiser usually starts by presenting a
predicament with the hope of getting a consumer to think, I can see
myself in that situation. This can help establish a bond of similarity
between the communicator and the receiver, increasing the sources level
of persuasiveness.
6
INCORRECT The perception that a source is able to administer positive or negative
sanctions to a receiver is known as:
referential concern.
A)
perceived control.
B)
perceived concern.
C)
reinforcement compliance.
D)
perceived scrutiny.
E)
Feedback:
Difficulty: Easy
LO: 06-02
Blooms: Remember
AACSB: Analytic
A source must be perceived as being able to administer positive or
negative sanctions to a receiver (perceived control).
7
INCORRECT An ad in Muliebrity, a womens magazine, begins with the line, Make heads
turn with every use of Doreen shampoo. The rest of the ad contains an
image illustrating the ingredients of the shampoo and also explains how the
shampoo nourishes the hair. The ad also provides information about
obtaining a product sample. This persuasive ad relies on:
the recency effect.

A)
the sleeper effect.

B)
graphic communications.
C)
the primacy effect.

D)
synergistic appeals.
E)
Feedback:
Difficulty: Hard
LO: 06-03
Topic: Message Factors
Blooms: Apply
Presenting the strongest arguments at the beginning of a message
assumes a primacy effect is operating, whereby information presented
first is most effective. The above scenario is an illustration of the use of
the primacy effect.
8
INCORRECT A one-sided message:
is most effective when the target audience holds an unfavorable opinion
about a product.
A)
mentions only the positive attributes or benefits of a product.

B)
refutes the opposing viewpoint of an advertising message.

C)
enhances the credibility of a message source.

D)
works better with a highly educated audience.

E)
Feedback:
Difficulty: Medium
LO: 06-03
Blooms: Understand
AACSB: Analytic
A one-sided message mentions only positive attributes or benefits.
9 CORRECT
An ad featured in Milieu, a parenting magazine, states that Igneous White
toothpaste fights tooth decay and brightens teeth more effectively than
Radon and Valence toothpastes. This ad is an example of:
comparative advertising.
A)
confrontational advertising.
B)
a source power appeal.

C)
a two-sided advertising message.

D)
a refutational appeal.
E)
Feedback:
Difficulty: Hard
LO: 06-03
Blooms: Apply
Comparative advertising is the practice of, either directly or indirectly,
naming competitors in an ad and comparing one or more specific
attributes. In the above scenario, the advertisers are using a comparative
appeal.
10
INCORRECT An anti-smoking television commercial starts with a teenager smoking a
cigarette. The next scene shows his pupils dilating, followed by magnified
images of his internal organs. The ad also depicts an increase in his heart
rate and blood pressure. Subsequently, the ad focuses on the teenager and
shows him coughing heavily, feeling breathless, and eventually collapsing on
the floor. This ad is an example of the use of a(n) _____ appeal.
irrational
A)
refutational
B)
source
C)
two-sided
D)
fear
E)
Feedback:
Difficulty: Hard
LO: 06-03
Blooms: Apply
Fear is an emotional response to a threat that expresses, or at least
implies, some sort of danger. Ads sometimes use fear appeals to evoke
this emotional response and arouse individuals to take steps to remove
the threat. In the above scenario, the television commercial is an
example of the use of a fear appeal.
11
INCORRECT A magazine ad for Maven running shoes features Ross Reynolds, a world-
famous sprinter, in the process of taking-off from the starting block. The ad
is featured in Quick Motion, a prestigious sports magazine. The ad has a
high:
quantitative media effect.

A)
recency effect.
B)
qualitative media effect.

C)
primacy effect.
D)
symbiotic research effect.

E)
Feedback:
Difficulty: Hard
LO: 06-04
Topic: Channel Factors
Blooms: Apply
The above scenario is an example of a qualitative media effect. A
qualitative media effect is the influence a medium has on a message. The
image of a media vehicle can affect reactions to a message.
12
INCORRECT Clutter is increasingly a concern to advertisers since:
it imposes on consumers to draw their own conclusions.

A)
there are many messages in various media competing for consumers

attention.
B)
the spots for commercials have been elongated to 60 seconds, replacing

the previously used 15-second spots.
C)
they have to pay a premium price to reduce the amount of clutter in the
media environment.
D)
the market is saturated with innumerable product options for

consumers.
E)
Feedback:
Difficulty: Easy
LO: 06-04
Topic: Channel Factors
Blooms: Understand
AACSB: Analytic
Clutter is of increasing concern to advertisers since there are so many
messages in various media competing for a consumers attention.
1
INCORRECT Which of the following is an example of a good marketing objective?
To have press releases run in 80 percent of all the magazines devoted to

sports during the summer quarter
A)
To develop a new advertising campaign for soy-based ice cream by the

end of April
B)
To increase share of the video game market by three percent within a

period of one year
C)
To develop a tie-in with the newest fantasy movies

D)
To hire three experienced salespeople within six months

E)
Feedback:
Difficulty: Hard
LO: 07-02
Topic: Determining Integrated Marketing Communications Objectives
Blooms: Apply
Marketing objectives are usually defined in terms of specific, measurable
outcomes such as sales volume, market share, profits, or return on
investment. Good marketing objectives are quantifiable; they delineate
the target market and note the time frame for accomplishing the goal
(often one year).
2
INCORRECT In Russell Colleys hierarchy of effects model, the stage prior to purchase is
conviction. At this stage, the marketing messages convince consumers that
they should buy the product, but the purchase may be postponed due to
situational or psychological factors. Which of the following terms is
associated with this time lag between conviction and purchase?
The spill-over effect

A)
The wasted coverage

B)
The recency effect

C)
The primacy effect

D)
The carryover effect

E)
Feedback:
Difficulty: Medium
LO: 07-04
Topic: Sales Versus Communications Objectives
Blooms: Understand
AACSB: Analytic
Many experts recognize that advertising has a lagged or carryover effect;
monies spent on advertising do not necessarily have an immediate impact
on sales. Advertising may create awareness, interest, and/or favorable
attitudes toward a brand, but these feelings will not result in an actual
purchase until the consumer enters the market for the product, which
may occur later.
3 CORRECT
In Russell Colleys hierarchical model of the communication process, the
_____ stage deals with developing a mental disposition in the consumer to
buy the product.
conviction
A)
comprehension
B)
awareness
C)
action
D)
screening
E)
Feedback:
Difficulty: Easy
LO: 07-04
Topic: DAGMAR: An Approach to Setting Objectives
Blooms: Remember
AACSB: Analytic
Colley proposed that the communications task be based on a hierarchical
model of the communication process with four stages. In Russell Colleys
hierarchical model of the communication process, the conviction stage
deals with developing a mental disposition in the consumer to buy the
product.
4
INCORRECT Which of the following is true of the DAGMAR approach to setting advertising
objectives?
It has focused promotional planners on the value of using sales-oriented

objectives rather than communications objectives.
A)
It does not rely on the hierarchy of effects model.

B)
It discourages specifying the time period while setting advertising

objectives.
C)
It is very simple to implement.

D)
It inhibits creativity by imposing too much structure on the people

responsible for developing the advertising.
E)
Feedback:
Difficulty: Medium
LO: 07-04
Topic: DAGMAR: An Approach to Setting Objectives
Blooms: Understand
AACSB: Analytic
One of the criticisms of DAGMAR is that it inhibits advertising creativity
by imposing too much structure on the people responsible for developing
the advertising. Many creative personnel think the DAGMAR approach is
too concerned with quantitative assessment of a campaigns impact on
awareness, brand-name recall, or specific persuasion measures.
5
INCORRECT Who among the following strongly argued that integrated marketing
communications (IMC) should make use of zero-based communications
planning?
Russell Colley
A)
Professor Don Schultz

B)
Professor Tom Duncan

C)
Victor Vroom
D)
Sigmund Freud
E)
Feedback:
Difficulty: Easy
LO: 07-04
Topic: Problems in Setting Objectives
Blooms: Remember
AACSB: Analytic
Professor Tom Duncan argued that IMC should use zero-based
communications planning, which involves determining what tasks need to
be done and which marketing communications functions should be used
and to what extent. This approach focuses on the task to be done and
searches for the best ideas and media to accomplish it.
6
INCORRECT Marketing managers who use marginal analysis to set advertising budgets
assume that:
promotional efforts should be shown as an asset in the balance sheet.

A)
sales are a direct result of advertising and promotional efforts.

B)
budgets do not evolve over a period of time.

C)
psychological, situational, and social factors are as responsible for sales

increases as are promotional efforts.
D)
sales response models are unreliable.

E)
Feedback:
Difficulty: Medium
LO: 07-06
Topic: Establishing and Allocating the Promotional Budget
Blooms: Understand
AACSB: Analytic
While marginal analysis seems logical intuitively, certain weaknesses
limit its usefulness. These weaknesses include the assumptions that sales
are a direct result of advertising and promotional expenditures and this
effect can be measured.
7
INCORRECT Which of the following is true of setting a communications budget for an
organization?
A company would be making a serious mistake if it tried to use more

than one budgeting method at a time.
A)
Top management has no input into the process of establishing the

budget except final approval.
B)
The two types of budgeting approaches are the trading-up and trading-
down methods.
C)
Budgeting approaches vary according to the size and sophistication of

the organization.
D)
The most important factor for a marketing manager to consider when

setting a budget is the volume share projections.
E)
Feedback:
Difficulty: Medium
LO: 07-07
Blooms: Understand
AACSB: Analytic
Two things that one must understand while setting budgets is that: (1)
Many firms employ more than one method, and (2) budgeting approaches
vary according to the size and sophistication of the firm.
8 CORRECT
Venus Inc. is a manufacturer of chocolate truffles. It sells its products
through online marketing. Last year, Tina, the owner of the company, set the
marketing objectives and the advertising budget anticipating that her
company would make $90,000 in sales the next year. She budgeted $50,000
for fixed expenses, $35,000 for variable expenses, and the rest for
promotion. Which top-down budgeting approach did Tina use?
Affordable method
A)
Percentage-of-sales method
B)
Objective and task method

C)
Competitive parity method

D)
Payout planning method

E)
Feedback:
Difficulty: Hard
LO: 07-07
Blooms: Apply
In the above scenario, Tina used the affordable method. In the affordable
method (often referred to as the all-you-can-afford method), the firm
determines the amount to be spent in various areas such as production
and operations. Then, it allocates whats left to advertising and
promotion, considering this to be the amount it can afford.
9
INCORRECT Which of the following promotional-budgeting methods is based on the
collective wisdom of the industry in which the organization operates?
Payout planning
A)
Competitive parity
B)
Arbitrary allocation
C)
Objective and task

D)
Marginal analysis
E)
Feedback:
Difficulty: Easy
LO: 07-07
Blooms: Remember
AACSB: Analytic
In the competitive parity method, managers establish budget amounts by
matching the competitions percentage-of-sales expenditures. The
argument is that setting budgets in this fashion takes advantage of the
collective wisdom of the industry. It also takes the competition into
consideration, which leads to stability in the marketplace by minimizing
marketing warfare.
10
CORRECT Which of the following promotional-budgeting methods is most appropriate
for the introduction of a new product?
Payout planning
A)
Affordable method
B)
Percentage-of-sales method
C)
Objective and task method

D)
Arbitrary method
E)
Feedback:
Difficulty: Medium
LO: 07-07
Blooms: Understand
AACSB: Analytic
Payout planning helps in determining budgets for new products. In case
of payout planning, marketers develop a payout plan that determines the
investment value of the advertising and promotion appropriation. The
basic idea is to project the revenues the product will generate, as well as
the costs it will incur, over two to three years.
1 CORRECT
Which of the following best defines divergence?
The extent to which an advertisement contains elements which are

novel, different, or unusual
A)
The degree to which the various elements of an advertisement are

meaningful, useful, or valuable to the consumer
B)
The extent to which an advertiser avoids creativity and follows a proven

formula in an advertisement.
C)
The process of using inherent drama in an advertisement.

D)
The process of reducing the number of creative personnel working on an

advertisement.
E)
Feedback:
Difficulty: Medium
LO: 08-01
Topic: Advertising Creativity
Blooms: Understand
AACSB: Analytic
Divergence refers to the extent to which an ad contains elements that are
novel, different, or unusual. Robert Smith and his colleagues have
identified five major factors that could account for the ways divergence
can be achieved in advertising.
2
INCORRECT Which of the following is one of the five major factors identified by Robert
Smith that deals with ads that combine, connect, or blend normally
unrelated objects or ideas?
Originality
A)
Elaboration
B)
Synthesis
C)
Flexibility
D)
Artistic value
E)
Feedback:
Difficulty: Easy
LO: 08-01
Blooms: Remember
AACSB: Analytic
can be achieved in advertising. Synthesis refers to ads that combine,
connect, or blend normally unrelated objects or ideas.
3 CORRECT
Which of the following is one of the five major factors identified by Robert
Smith that deals with ads that contain elements that are rare, surprising, or
that move away from the obvious and commonplace?
Originality
A)
Artistic value
B)
Flexibility
C)
Elaboration
D)
Synthesis
E)
Feedback:
Difficulty: Easy
LO: 08-01
Blooms: Remember
AACSB: Analytic
can be achieved in advertising. Originality refers to ads that contain
elements that are rare, surprising, or move away from the obvious and
commonplace.
4
INCORRECT Advertising creativity:
is the ability to avoid ad wear out.

A)
can only be done by people who work on the creative side of

advertising.
B)
is the ability to avoid the five major factors that lead to divergence as it
hampers the creativity of an ad.
C)
is the ability to generate fresh, unique, and appropriate ideas that can
be used as solutions to communications problems.
D)
does not include the selection of advertising media.

E)
Feedback:
Difficulty: Easy
LO: 08-01
Blooms: Remember
AACSB: Analytic
Advertising creativity is the ability to generate fresh, unique, and
appropriate or relevant ideas that can be used as solutions to
communication problems. Those who study as well as work in advertising
generally agree on these two central determinants of creativity which are
often viewed in terms of divergence and relevance.
5
INCORRECT How are models of the creative process useful to those working in the
creative area of advertising?
They can be used to explain all types of creative blocks that hinder the
creation of advertising.
A)
They give the creative teams an organized way to approach an

advertising problem.
B)
They help clients initiate accountability analysis benchmarks.

C)
They force the creative teams to go through the illumination stage, once
the creative idea has been implemented.
D)
They use the Socratic method, which is a reliable way to solve problems.
E)
Feedback:
Difficulty: Medium
LO: 08-02
Topic: The Creative Process
Blooms: Understand
AACSB: Analytic
Models of the creative process are valuable to those working in the
creative area of advertising, since they offer an organized way to
approach an advertising problem.
6
INCORRECT Jenna works in the creative department of an advertising firm and has been
asked to develop a creative advertising campaign for soy milk. She is
responsible for sampling the milk, reading magazine articles on soy,
identifying why it should be a part of a healthy diet, and researching what
nutritionists say about soy products. In this scenario, Jenna is:
engaged in problem detection.

A)
involved in ethnographic research.

B)
gathering product specific preplanning input.

C)
identifying the target audience.

D)
gathering general preplanning input.

E)
Feedback:
Difficulty: Hard
LO: 08-02
Blooms: Apply
In the above scenario, Jenna is involved in gathering product specific
preplanning input. Product/service specific preplanning input generally
comes in the form of specific studies conducted on the product or service,
the target audience, or a combination of the two.
7 CORRECT
An advertising agency asked people who regularly used a metropolitan
transit system to make a list of what they liked and disliked about the
system and to rank their likes and dislikes in order of importance. In this
scenario, the advertising agency was:
engaged in problem detection.

A)
involved in ethnographic research.

B)
outlining the copy platform.

C)
identifying the target audience.

D)
gathering general preplanning input.

E)
Feedback:
Difficulty: Hard
LO: 08-02
Blooms: Apply
In the above scenario, the advertising agency is engaged in the process
of problem detection. A number of years ago, the BBDO ad agency
developed an approach called problem detection for finding ideas around
which creative strategies could be based. This research technique
involves asking consumers familiar with a product (or service) to
generate an exhaustive list of things that bother them or problems they
encounter when using it.
8
INCORRECT When Venus Inc. uses the slogan Confidently Elegant, in all of its
advertising and promotional efforts, the firm communicates its:
copy platform.
A)
storyboard.
B)
campaign theme.
C)
creative brief.
D)
work plan.
E)
Feedback:
Difficulty: Hard
LO: 08-03
Topic: Creative Strategy Development
Blooms: Apply
In the above scenario, Venus is communicating its campaign theme. A
campaign theme should be a strong idea, as it is the central message that
will be communicated in all advertising and promotional activities. The
theme for the advertising campaign is usually expressed through a slogan
or tagline that reduces the key idea into a few words or a brief statement.
9
INCORRECT Sink faucets are a utilitarian item that most people take for granted. In fact,
for most people a faucet is just a faucet. However, Creative Sanitary Inc.
would like its consumers to think differently about its faucets. Creative
Sanitarys faucets are advertised as "Confidently Enticing," and claim to be
for people who appreciate good design and aesthetics and want it in all
facets of their lifestyle. Ads for Creative Sanitary brand faucets should use:
bait-and-switch advertising.
A)
image advertising.
B)
inherent drama.
C)
primacy appeal.
D)
refutational appeal.
E)
Feedback:
Difficulty: Hard
LO: 08-04
Blooms: Apply
In the above scenario, the company should use image advertising.The
creative strategy used to sell similar and competitive products is based
on the development of a strong, memorable identity for the brand
through image advertising.
10
INCORRECT The concept of positioning as a basis for advertising strategy was introduced
by:
David Ogilvy and Jack Trout.

A)
Rosser Reeves and David Ogilvy.

B)
Leo Burnett and Al Ries.

C)
Sigmund Freud and Rosser Reeves.

D)
Jack Trout and Al Ries.

E)
Feedback:
Difficulty: Easy
LO: 08-04
Blooms: Remember
AACSB: Analytic
The concept of positioning as a basis for advertising strategy was
introduced by Jack Trout and Al Ries in the early 1970s and has become a
popular basis of creative development. The basic idea is that advertising
is used to establish or position the product or service in a particular
place in the consumers mind.
1
INCORRECT Band-Heal has just introduced a new liquid bandage which creates an
invisible seal that stays on better than conventional bandages. An ad
promoting this new product would most likely use a(n) _____ appeal.
product popularity
A)
informational
B)
transactional
C)
emotional
D)
humorous
E)
Feedback:
Difficulty: Hard
LO: 09-01
Topic: Appeals and Execution Styles
Blooms: Apply
Informational/Rational appeals focus on the consumers practical,
functional, or utilitarian need for the product or service and emphasize
features of a product or service and/or the benefits or reasons for owning
or using a particular brand.
2 CORRECT
An ad promoting tourism in South Carolina shows a family having fun on a
beach. The purpose of the ad is to make consumers believe that a trip to
South Carolina would create the same feelings of joy in their families. This is
an example of a(n) _____ ad.
transformational
A)
reminder
B)
informational
C)
comparative
D)
teaser
E)
Feedback:
Difficulty: Hard
LO: 09-01
Blooms: Apply
Transformational ads create feelings, images, meanings, and beliefs
about the product or service that may be activated when consumers use
it, transforming their interpretation of the usage experience.
3
INCORRECT A print advertisement shows two pairs of diamond earrings on a black
background. The name of the brand is printed in white at the bottom of the
ad. This ad is an example of _____ advertising.
transformational
A)
reminder
B)
curiosity
C)
informational/rational
D)
teaser
E)
Feedback:
Difficulty: Hard
LO: 09-01
Blooms: Apply
Ads for some brands can be classified as reminder advertising, which has
the objective of building brand awareness and/or keeping the brand
name in front of consumers. Well-known brands and market leaders often
use reminder advertising to maintain top-of-mind awareness among
consumers in their target markets.
4
INCORRECT A print ad for Feller Oats explains how oatmeal rids the body of excess
cholesterol. The ad also features endorsements by a leading fat-reduction
clinic. Which of the following execution methods is used in the ad for
delivering this promotional message?
Testimonial
A)
Comparison
B)
Slice-of-life
C)
Scientific evidence
D)
Demonstration
E)
Feedback:
Difficulty: Hard
LO: 09-02
Blooms: Apply
Through scientific execution advertisers often cite technical information,
results of scientific or laboratory studies, or endorsements by scientific
bodies or agencies to support their advertising claims.
5
INCORRECT A print ad promoting tourism has a(n) _____ at the top of the page that
reads, First one to take a nap is a rotten egg!
direct headline
A)
integrated body copy

B)
indirect headline
C)
subheading
D)
sidebar
E)
Feedback:
Difficulty: Hard
LO: 09-03
Topic: Creative Tactics
Blooms: Apply
The headline is the words in the leading position of the adthe words
that will be read first or are positioned to draw the most attention.
Indirect headlines are not straightforward about identifying the product
or service or getting to the point.
6
INCORRECT Subheads are:
typically printed in a typeface that is larger than that used for the
headline.
A)
used to enhance the readability of the message by highlighting key sales

points.
B)
usually included next to the headline in brackets.

C)
typically perceived as a vehicle for the companys advertising slogan.

D)
often positioned to draw the most attention or to be read first.
E)
Feedback:
Difficulty: Medium
LO: 09-03
Blooms: Understand
AACSB: Analytic
Subheads are often used to enhance the readability of the message by
breaking up large amounts of body copy and highlighting key sales
points.
7 CORRECT
One of the first decisions that should be made while planning a TV
commercial is regarding the:
type of execution and appeal to be used.

A)
use of a voice-over with the ad.

B)
type of media to be used.

C)
development of the storyboard.

D)
preparation of the script.

E)
Feedback:
Difficulty: Easy
LO: 09-03
Blooms: Remember
AACSB: Analytic
One of the first decisions that should be made while planning a TV
commercial is the type of appeal and execution style that will be used.
8
INCORRECT The storyboard of a TV commercial most closely relates to the _____ used
for the print advertising.
body copy
A)
subheadings
B)
indirect headlines
C)
layout
D)
media vehicle
E)
Feedback:
Difficulty: Medium
LO: 09-03
Blooms: Understand
AACSB: Analytic
Like layouts for print ads, storyboards provide those involved in the
production and approval of the commercial with a good approximation of
what the final commercial will look like.
9
INCORRECT What is an animatic?
It is the audio portion of an ad.

A)
It is the generic music used in an ad.

B)
It is a script that has received final approval from an advertiser.

C)
It is the written version of a commercial.

D)
It is a videotape of the storyboard along with soundtrack.

E)
Feedback:
Difficulty: Medium
LO: 09-03
Topic: Creative Tactics for Television
Blooms: Understand
AACSB: Analytic
In some cases, an animatic (a videotape of the storyboard along with the
soundtrack) may be produced if a more finished form of the commercial is
needed for client presentations or pretesting.
10
INCORRECT Which of the following statements is true of client evaluation and approval of
creative work?
It is relatively easy for a client to evaluate a storyboard or a print layout.

A)
The evaluation process must determine if the creative approach is

appropriate for the clients target audience.
B)
The top management in an organization is rarely involved in the

advertising evaluation process.
C)
The evaluation of creative work is usually one of the easiest and least
stressful parts of the advertising creation process.
D)
Clients usually do not evaluate the creative approach used in an ad

before the ad is produced.
E)
Feedback:
Difficulty: Medium
LO: 09-04
Topic: Client Evaluation and Approval of Creative Work
Blooms: Understand
AACSB: Analytic
Careful consideration should be given to whether the ad appeal or
execution recommended will appeal to, be understood by, and
communicate effectively with the target audience.
1
INCORRECT An advertisement for Maven candy bar is placed in Young Ace, a magazine
for teenagers. In this case, Young Ace is the:
media sweep.
A)
media reach.
B)
medium.
C)
media vehicle.
D)
index number.
E)
Feedback:
Difficulty: Medium
LO: 10-01
Topic: An Overview of Media Planning
Blooms: Apply
In the above scenario, Young Ace is the media vehicle. A media vehicle is
the specific carrier within a medium category.
2
INCORRECT Which of the following best defines coverage?
It is the series of decisions involved in delivering the promotional
message to the prospective purchasers and/or users of the product or
A) brand.
It refers to the potential audience that might receive the message

through a vehicle.
B)
It is the general category of available delivery systems.
C)
It refers to the number of times the receiver is exposed to the media

vehicle in a specified period.
D)
It refers to the set of media objectives included in the advertising plan.

E)
Feedback:
Difficulty: Medium
LO: 10-01
Topic: An Overview of Media Planning
Blooms: Understand
AACSB: Analytic
Coverage refers to the potential audience that might receive the message
through a vehicle.
3
INCORRECT The index number is considered a good indicator of:
effective reach.
A)
gross rating points.

B)
average frequency.
C)
effective frequency.
D)
market potential.
E)
Feedback:
Difficulty: Easy
LO: 10-02
Topic: Market Analysis and Target Market Identification
Blooms: Remember
AACSB: Analytic
The index number is considered a good indicator of the potential of the
market.
4 CORRECT
Which of the following is an example of an internal factor that can influence
a media strategy?
Managerial and administrative capabilities

A)
The rising costs of media

B)
Changes in technology
C)
Competitive factors
D)
The availability of new media

E)
Feedback:
Difficulty: Easy
LO: 10-02
Blooms: Remember
AACSB: Analytic
Media strategies are influenced by both internal and external factors
operating at any given time. Internal factors may involve the size of the
media budget, managerial and administrative capabilities, or the
organization of the agency.
5
INCORRECT Which of the following statements is true of indices that help a marketer in
determining where to promote?
The survey of buying power index is based on effective buying income in
a major metropolitan market but is independent of the total retail sales
A) in the area.
The category development index (CDI) provides information on the

potential for development of specific brands.
B)
The brand development index (BDI) helps marketers factor the rate of
product usage by geographic area into the decision process.
C)
A high brand development index (BDI) indicates a good market

potential.
D)
A low category development index (BDI) indicates a low market share.

E)
Feedback:
Difficulty: Medium
LO: 10-02
Blooms: Understand
AACSB: Analytic
The brand development index (BDI) helps marketers factor the rate of
product usage by geographic area into the decision process.
6 CORRECT
Which of the following statements is true of media objectives?
Media objectives are the goals for a media program.

A)
Media objectives should not be limited to those that can be

accomplished through media strategies.
B)
Marketing objectives are designed to lead to the attainment of media
objectives.
C)
Media objectives are an end by themselves.

D)
Media objectives and marketing objectives are typically considered

synonymous.
E)
Feedback:
Difficulty: Medium
LO: 10-03
Topic: Establishing Media Objectives
Blooms: Understand
AACSB: Analytic
Media objectives are the goals for a media program and should be limited
to those that can be accomplished through media strategies.
7
INCORRECT When an ad that specifically targets people who buy costumes for Chinese
New Year reaches people who are not interested in these items, _____ is
said to have occurred.
communication irresponsibility
A)
waste coverage
B)
transformational integration
C)
information overload
D)
psychographic overreach
E)
Feedback:
Difficulty: Hard
LO: 10-04
Topic: Developing and Implementing Media Strategies
Blooms: Apply
The above scenario is an example of waste coverage A marketer is faced
with a problem of overexposure (also called waste coverage), in which
the media coverage exceeds the targeted audience. If media coverage
reaches people who are not sought as buyers and are not potential users,
then it is wasted.
8 CORRECT
Octave Inc., advertises its products specifically during the Christmas season,
as it believes that people are more likely to purchase them as gifts. At other
times of the year, Octave engages only in minimal advertising. In this
scenario, Octave uses a _____ schedule for its advertising.
flighting
A)
continuity
B)
geographical weighting
C)
circulation
D)
pulsing
E)
Feedback:
Difficulty: Hard
LO: 10-04
Blooms: Apply
The above scenario is an example of flighting scheduling. Flighting
employs a less regular schedule, with intermittent periods of advertising
and nonadvertising. At some time periods there are heavier promotional
expenditures, and at others there may be no advertising.
9
INCORRECT A trailer promoting a movie is placed on two successive prime time television
shows. If the viewers of the first television show also watch the second
show, the total number of people who are exposed to the trailer only once
are referred to as:
duplicated frequency.
A)
duplicated reach.
B)
unduplicated reach.
C)
effective frequency.
D)
overlapping coverage.
E)
Feedback:
Difficulty: Hard
LO: 10-04
Blooms: Apply
The above scenario is an example of unduplicated reach. If an ad is
placed on two TV shows, the total number of people exposed once is
unduplicated reach.
10
INCORRECT Which of the following is an advantage associated with television
advertising?
Low production costs

A)
High selectivity
B)
Low cost per exposure

C)
Long message life

D)
Low absolute cost

E)
Feedback:
Difficulty: Medium
LO: 10-05
Topic: Characteristics of Media
Blooms: Remember
AACSB: Analytic
The advantages of television advertising include: mass coverage, high
reach, impact of sight, sound, and motion, high prestige, low cost per
exposure, attention getting, and favorable image.
1 CORRECT
Which of the following is true of television as an advertising medium?
It is an excellent medium for demonstrating a service.

A)
It is typically considered more feasible as it does not encourage zipping.

B)
It is characterized by low costs.

C)
It usually has limited clutter.

D)
It is characterized by a lack of selectivity.

E)
Feedback:
Difficulty: Medium
LO: 11-02
Topic: Television
Blooms: Remember
AACSB: Analytic
Television is also an excellent medium for demonstrating a product or
service as well as telling a story about a brand to highlight its features
and benefits or create an emotional attachment.
2
INCORRECT Charlene enjoys watching TV shows on the HY channel and the DY channel
and often has a hard time choosing which shows to watch. She often starts
with one show and moves to another as soon as commercials begin. In this
scenario, Charlene engages in:
time shifting.
A)
zooming.
B)
scattering.
C)
zipping.
D)
zapping.
E)
Feedback:
Difficulty: Hard
LO: 11-02
Topic: Television
Blooms: Apply
The above scenario is an example of zapping. Zapping refers to changing
channels to avoid commercials. Nearly all televisions come with remote
controls, which enable viewers to switch channels easily.Viewers can
switch over for a few news headlines, sports scores, or a music video and
then switch back to the program.
3
INCORRECT An advertiser that did not purchase television time before the TV season
began can purchase advertising time during the:
up-front market.
A)
continual market.
B)
scatter market.
C)
clutter market.
D)
sweeps market.
E)
Feedback:
Difficulty: Easy
LO: 11-03
Topic: Buying Television Time
Blooms: Remember
AACSB: Analytic
Traditionally most prime-time commercial spots, particularly on the
popular shows, are sold during the up-front market, a buying period that
occurs before the TV season begins. However, TV time is also purchased
during the scatter market that runs through the TV season.
4 CORRECT
_____ refers to reruns of network shows that are bought by individual
stations.
Off-network syndication
A)
Local syndication
B)
First-run syndication
C)
Barter syndication
D)
National syndication
E)
Feedback:
Difficulty: Easy
LO: 11-03
Blooms: Remember
AACSB: Analytic
Off-network syndication refers to reruns of network shows that are
bought by individual stations.
5
INCORRECT Under a(n) _____ arrangement, an advertiser assumes responsibility for the
production and usually the content of the program as well as the advertising
that appears within it.
participation
A)
syndication
B)
zipping
C)
sponsorship
D)
adjacencies
E)
Feedback:
Difficulty: Easy
LO: 11-03
Blooms: Remember
AACSB: Analytic
Under a sponsorship arrangement, an advertiser assumes responsibility
for the production and usually the content of the program as well as the
advertising that appears within it.
6 CORRECT
One of the disadvantages associated with participation is:
that the advertiser has little control over the placement of its ads.
A)
that long-term commitment is required from advertisers.

B)
that they offer less flexibility than sole sponsorships.

C)
that participating advertisers have financial responsibility for production

of the program.
D)
that they are unsuitable for small advertisers with limited budgets.
E)
Feedback:
Difficulty: Medium
LO: 11-03
Blooms: Understand
AACSB: Analytic
The disadvantage of participation is that the advertiser has little control
over the placement of ads. There may also be problems with availability.
7
INCORRECT A movie production company that has made a big-budget science fiction
movie wants to promote the movie on the Fiction channel because of the
very specialized market that the channel targets. In other words, the movie
production company wants to use:
zipping.
A)
narrowcasting.
B)
zapping.
C)
cluttering.
D)
multiplexing.
E)
Feedback:
Difficulty: Hard
LO: 11-03
Blooms: Apply
The above scenario mirrors the concept of narrowcasting. Many
advertisers have turned to cable because of the opportunities it offers for
narrowcasting, or reaching very specialized markets.
8
INCORRECT Probably the best known of all audience measurement figures is the _____,
the percentage of TV households in an area that are tuned to a specific show
during a specific time period.
brand development index

A)
program rating
B)
household rating
C)
cross-platform campaign rating

D)
category development index

E)
Feedback:
Difficulty: Easy
LO: 11-03
Blooms: Remember
AACSB: Analytic
Probably the best known of all audience measurement figures is the
program rating, the percentage of TV households in an area that are
tuned to a specific program during a specific time period.
9
INCORRECT In 2007, Neilsen began providing commercial ratings data known as _____,
which includes measures of the average viewership of the commercials both
live and up to three days after the ads are played back on a DVR.
A2
A)
C7
B)
C3
C)
M2
D)
C2
E)
Feedback:
Difficulty: Easy
LO: 11-04
Blooms: Remember
AACSB: Analytic
In 2007 Nielsen began providing commercial ratings data, known as C3,
which includes measures of the average viewership of the commercials
both live and up to three days after the ads are played back on a DVR.
10
INCORRECT Which of the following is true of radio as an advertising medium?
Unlike television, radio does not play an important role in the lifestyle of
consumers.
A)
Radio commercials are extremely expensive to produce.

B)
Unlike television, radio offers very low selectivity.

C)
Radio as a medium tends to provide a low receptivity for advertisers.

D)
Radio has become a medium characterized by highly specialized

programming.
E)
Feedback:
Difficulty: Medium
LO: 11-01
Topic: Radio
Blooms: Understand
AACSB: Analytic
Radio has also become a medium characterized by highly specialized
programming appealing to very narrow segments of the population.
1 CORRECT
Which of the following is true of consumer magazines?
They are bought by the general public.

A)
They are sold specifically through store distribution.

B)
They are not sold through circulation.
C)
They represent an insignificant portion of the magazine industry.

D)
They include business and trade magazines.

E)
Feedback:
Difficulty: Medium
LO: 12-01
Topic: Magazines
Blooms: Understand
AACSB: Analytic
Consumer magazines are bought by the general public for information
and/or entertainment. They can be sold through subscription or
circulation, store distribution, or both.
2 CORRECT
A full-page ad for Shine shampoo contains a picture of a woman in a red
gown with the headline that reads Get satin smooth hair today! The ad
extends to the end of the page with no white margins. This ad uses a:
bleed page.
A)
printacular.
B)
gatefold.
C)
page manipulator.
D)
premium size pop up.

E)
Feedback:
Difficulty: Hard
LO: 12-02
Topic: Magazines
Blooms: Apply
In the above scenario, the ad uses a bleed page. Bleed pages are those
where an advertisement extends all the way to the end of a page, with no
margin of white space around the ad.
3
INCORRECT Deborah subscribes to Adroit Artistry, a magazine that provides instructions
on crafts such as soap making, tatting, and cane weaving. She saves every
issue and often uses them as reference material. Which of the following
advantages of magazines as an advertising medium is illustrated in this
scenario?
Geographic selectivity
A)
Creative flexibility
B)
Prestige
C)
Permanence
D)
Services
E)
Feedback:
Difficulty: Hard
LO: 12-02
Topic: Magazines
Blooms: Apply
The above scenario is an illustration of the permanence offered by
magazines. One distinctive advantage offered by magazines is their long
life span or permanence. Magazines are generally read over several days
and are often kept for reference. They are retained in the home longer
than any other medium and are generally referred to on several
occasions.
4
INCORRECT Which of the following benefits offered by magazines is an advertiser taking
advantage of when it uses a split run?
Permanence
A)
Special services
B)
Reproduction quality
C)
Consumer receptivity
D)
Prestige
E)
Feedback:
Difficulty: Easy
LO: 12-02
Topic: Magazines
Blooms: Remember
AACSB: Analytic
An advantage of magazines is the special services some publications offer
advertisers. An important service offered by some magazines is split runs,
where two or more versions of an ad are printed in alternate copies of a
particular issue of a magazine.
5 CORRECT
_____ reproduces a message by projecting ink onto paper rather than using
mechanical plates.
Ink-jet imaging
A)
Secondary binding
B)
Cross media imaging

C)
Split running
D)
Selective binding
E)
Feedback:
Difficulty: Medium
LO: 12-02
Topic: Magazines
Blooms: Remember
AACSB: Analytic
Ink-jet imaging reproduces a message by projecting ink onto paper
rather than using mechanical plates. This process makes it possible to
personalize an advertising message.
6
INCORRECT Mars Fit, a mens health magazine, is read by at least 15 different people at
a hair salon. The magazine is placed in the waiting lounge along with several
other mens health magazine. Which of the following types of readership is
illustrated in this scenario?
Primary readership
A)
Controlled readership
B)
Pass-along readership
C)
Forced readership
D)
At-home readership
E)
Feedback:
Difficulty: Easy
LO: 12-03
Topic: Magazines
Blooms: Apply
The above scenario is an illustration of pass-along readership. Pass-along
readership can occur when the primary subscriber or purchaser gives a
magazine to another person or when the publication is read in doctors
waiting rooms or beauty salons, on airplanes, and so forth.
7
INCORRECT Which of the following is a characteristic of newspapers?
Low flexibility
A)
Reduced market penetration

B)
Long life span

C)
Poor reproduction
D)
Enhanced selectivity
E)
Feedback:
Difficulty: Easy
LO: 12-02
Topic: Newspapers
Blooms: Remember
AACSB: Analytic
One of the greatest limitations of newspapers as an advertising medium
is their poor reproduction quality.
8
INCORRECT The _____ is the market outside the city zone whose residents regularly
trade with merchants within the city zone.
established trading zone

A)
retail trading zone

B)
national trading zone

C)
demarcated trading zone

D)
circulatory trading zone

E)
Feedback:
Difficulty: Easy
LO: 12-03
Topic: Newspapers
Blooms: Remember
AACSB: Analytic
The retail trading zone is the market outside the city zone whose
residents regularly trade with merchants within the city zone.
9 CORRECT
To make newspapers more comparable to other media that sell space and
time, the newspaper industry uses _____ to determine advertising rates.
standard advertising units

A)
ROP units
B)
media label units

C)
flexi-time units
D)
open units
E)
Feedback:
Difficulty: Easy
LO: 12-04
Topic: Newspapers
Blooms: Remember
AACSB: Analytic
To make newspapers more comparable to other media that sell space and
time in standard units, the newspaper industry switched to standard
advertising units (SAUs) in 1984.
10
INCORRECT Newspapers are attempting to grow their readership by:
improving their production quality by using fine paper for printing.

A)
offering free classified ads for merchandise under certain price points.
B)
concentrating on increasing their life span.

C)
providing demographic selectivity in terms of lifestyle characteristics.

D)
reducing expenditure on marketing research and concentrating on

frequency.
E)
Feedback:
Difficulty: Medium
LO: 12-04
Topic: Newspapers
Blooms: Understand
AACSB: Analytic
Some newspapers are recognizing that it is very difficult to compete
against online sites for classified ads and are responding by offering free
classified ads for merchandise under certain price points as a way to
grow readership.
1
INCORRECT _____ are used to reach those people in the target market that primary
media may not have reached and to reinforce or support their messages.
Above-the-line media
A)
Alternative media
B)
Traditional media
C)
Modified advertising practices

D)
Second-class advertising
E)
Feedback:
Difficulty: Easy
LO: 13-01
Topic: Introduction
Blooms: Remember
AACSB: Analytic
Support media are used to reach those people in the target market the
primary media may not have effectively reached and to reinforce, or
support, their messages. Support media are referred to by several titles,
among them alternative media, below-the-line media, nonmeasured
media, and nontraditional media.
2
INCORRECT Outdoor advertising includes street furniture, billboards, and:
promotional products marketing.

A)
place-based media.
B)
product placement.
C)
transit advertising.
D)
advertising specialties.
E)
Feedback:
Difficulty: Easy
LO: 13-02
Topic: Traditional Support Media
Blooms: Remember
AACSB: Analytic
Outdoor Advertising Association of America, Inc. (OAAA) categorizes out-
of-home advertising media as outdoorincluding billboards, street
furniture, alternative media, and transitas well as specific forms of
radio.
3
INCORRECT A major reason for the continued success of outdoor advertising is:
the relaxation of federal regulations governing the location of outdoor

advertising.
A)
the ease with which complex messages can be communicated through

this medium.
B)
the fact that it produces no waste coverage.

C)
its ability to remain innovative through technology.

D)
its ability to avoid wear out.

E)
Feedback:
Difficulty: Medium
LO: 13-02
Blooms: Understand
AACSB: Analytic
A major reason for the continued success of outdoor advertising is its
ability to remain innovative through technology.
4
INCORRECT Airplanes pulling banners, skywriting, and blimps all constitute:
mobile advertising.
A)
place-based media.
B)
C)
traditional media.
D)
aerial advertising.
E)
Feedback:
Difficulty: Medium
LO: 13-02
Blooms: Remember
AACSB: Analytic
Airplanes pulling banners, skywriting (in letters as high as 1,200 feet),
and blimps all constitute another form of outdoor advertising available to
the marketer: aerial advertising.
5
INCORRECT Transit advertising includes outside posters, terminal posters, and:
mobile billboards.
A)
aerial advertising.
B)
bulletins.
C)
inside cards.
D)
blimps.
E)
Feedback:
Difficulty: Easy
LO: 13-02
Blooms: Remember
AACSB: Analytic
There are three forms of transit advertising: (1) inside cards, (2) outside
posters, and (3) station, platform, or terminal posters.
6
INCORRECT Competitive Media Reports, Experian Simmons Market Research Bureau, and
The Traffic Audit Bureau:
create outdoor advertising using new technologies.

A)
buy and sell advertising space for outdoor advertising.

B)
provide audience measurements for out-of-home media.
C)
act as creative advisors for companies using traditional media.

D)
are sellers of outdoor media.

E)
Feedback:
Difficulty: Medium
LO: 13-04
Blooms: Understand
AACSB: Analytic
A number of sources of audience measurement and information are
available. They include Competitive Media Reports, Experian Simmons
Market Research Bureau, and The Traffic Audit Bureau etc.
7
INCORRECT Prolonged and high frequency of exposure to an ad along with low relative
costs are all advantages of:
billboards.
A)
indoor transit advertising.

B)
aerial advertising.
C)
product placement.
D)
Yellow Pages advertising.

E)
Feedback:
Difficulty: Medium
LO: 13-03
Blooms: Understand
AACSB: Analytic
Long length of exposure to an ad is one major advantage of indoor transit
forms. Because peoples daily routines are standard, those who ride
buses, subways, and the like are exposed to ads repeatedly. The CPM for
transit advertising is low on a relative cost basis.
8
INCORRECT Which of the following advertising media is referred to as a directional
medium owing to the fact that it points consumers in the direction where
their purchases can be made?
Movie theater advertising
A)
Transit advertising
B)
Aerial advertising
C)
Product placement
D)
Yellow Pages advertising

E)
Feedback:
Difficulty: Easy
LO: 13-02
Topic: Promotional Products Marketing
Blooms: Remember
AACSB: Analytic
The Yellow Pages are often referred to as a directional medium because
the ads do not create awareness or demand for products or services;
rather, once consumers have decided to buy, the Yellow Pages point them
in the direction where their purchases can be made.
9 CORRECT
Lack of clutter, ability to target specific demographic segments, and high
attention levels are advantages of:
movie theater advertising.

A)
B)
aerial advertising.
C)
television advertising.
D)
Yellow Pages advertising.

E)
Feedback:
Difficulty: Easy
LO: 13-03
Topic: Other Traditional Support Media
Blooms: Remember
AACSB: Analytic
Lack of clutter is an advantage offered by advertising in movie theaters.
Movie watchers pay attention to the ads shown in theaters, as research
indicates that cinema ads reach many consumers who say they are
usually ad avoiders. A key advantage of movie advertising is the ability to
target specific demographic segments.
10
INCORRECT _____ is a form of advertising that blends marketing and amusement
through television, film, music talent, and technology.
Product placement
A)
Specialty advertising
B)
Branded entertainment
C)
Free-form marketing
D)
Transactional advertising
E)
Feedback:
Difficulty: Easy
LO: 13-01
Topic: Nontraditional Support Media
Blooms: Remember
AACSB: Analytic
Branded entertainment is a form of advertising that blends marketing and
entertainment through television, film, music talent, and technology.
1
INCORRECT Which of the following factors in American society has directly led to the
rapid growth of direct marketing?
Establishment of independent advertising agencies

A)
The growing popularity of transit advertising

B)
Rampant corporate restructuring

C)
The increased use of consumer credit cards

D)
The internationalization of markets

E)
Feedback:
Difficulty: Easy
LO: 14-01
Topic: Direct Marketing
Blooms: Remember
AACSB: Analytic
The increased use of consumer credit cards is one of the factors in
American society that has directly led to the rapid growth of direct
marketing. There are now more than 1 billion credit cardsbank, oil
company, retail, and so onin circulation in the United States. This makes
it feasible for consumers to purchase both low- and high-ticket items
through direct-response channels and assures sellers that they will be
paid.
2 CORRECT
Charlotte sees an infomercial on Mystique skin care products that claims to
cure acne and clear blemishes within a month. It also promises a flawless
complexion. The infomercial displays a toll-free number on the screen,
urging viewers to make a phone call immediately for additional product
information and to place an order. This is an example of combining:
direct marketing with advertising.

A)
advertising with personal selling.

B)
public relations with direct marketing.

C)
sales promotion with support media.

D)
direct selling with public relations.

E)
Feedback:
Difficulty: Hard
LO: 14-02
Blooms: Apply
The above scenario is an example of combining direct marketing with
advertising. Direct marketing is in itself a form of advertising. Whether
through mail, print, or TV, the direct-response offer is an ad. It usually
contains a toll-free number or a form that requests mailing information.
Sometimes the ad supports the direct-selling effort.
3
INCORRECT To successfully implement direct-marketing programs, companies must first:
determine the media to be used to deliver a direct marketing message.

A)
determine a budget.
B)
determine how the programs success is going to be evaluated.

C)
establish the programs objectives.

D)
decide a positioning strategy.
E)
Feedback:
Difficulty: Medium
LO: 14-02
Blooms: Understand
AACSB: Analytic
To successfully implement direct-marketing programs, companies must
make a number of decisions. As in other marketing programs, they must
determine (1) what the programs objectives will be, (2) which markets
to target (through the use of a list or marketing database), (3) what
direct-marketing strategies will be employed, and (4) how to evaluate the
effectiveness of the program.
4
INCORRECT Guardian, a nonprofit organization, uses telemarketing to solicit funds for the
welfare of the girl child and women empowerment. This is an example of
combining:
public relations with advertising.

A)
support media with advertising.

B)
direct marketing with personal selling.

C)
advertising with direct marketing.

D)
publicity with public relations.

E)
Feedback:
Difficulty: Easy
LO: 14-02
Blooms: Apply
The above scenario is an example of combining direct marketing with
personal selling. Telemarketing and direct selling are two methods of
personal selling used to generate sales. Nonprofit organizations like
charities often use telemarketing to solicit funds.
5
INCORRECT Hale Inc., a manufacturer of vacuum cleaners, uses telemarketing to inform
potential customers about its products. Customers who show interest in the
companys vacuum cleaners are invited to visit the nearest dealer to make a
purchase. This is an example of _____ approach to direct marketing.
one-step
A)
primacy
B)
exclusivity
C)
recency
D)
two-step
E)
Feedback:
Difficulty: Hard
LO: 14-03
Blooms: Apply
The above scenario is an example of a two-step approach to marketing.
The two-step approach may involve the use of more than one medium.
The first effort is designed to screen, or qualify, potential buyers. The
second effort generates the response (e.g., the order).
6
INCORRECT Which of the following has led to a dramatic increase in home shopping?
The widespread use of debit cards

A)
The use of buzz marketing

B)
The development of HD television sets

C)
The ease of obtaining loans from banks

D)
The development of toll-free telephone numbers

E)
Feedback:
Difficulty: Easy
LO: 14-03
Blooms: Remember
AACSB: Analytic
The development of toll-free telephone numbers, combined with the
widespread use of credit cards, has led to a dramatic increase in the
number of people who shop via their TV sets through home shopping
channels.
7
INCORRECT Which of the following is true of direct-marketing media?
Direct mail is often called "treasure mail" because it is the solicited mail
received by consumers.
A)
Telemarketing is employed by profit and charitable organizations in the

one-step and two-step approaches.
B)
The infomercial industry is adopted only by small marketers due to its

high costs on cable and satellite channels.
C)
The majority of direct-marketing broadcast advertising occurs on radio

rather than television.
D)
Direct mail on the Internet (e-mail) has higher cost and lower
effectiveness than traditional direct mail.
E)
Feedback:
Difficulty: Medium
LO: 14-03
Blooms: Understand
AACSB: Analytic
Both profit and charitable organizations have employed telemarketing
effectively in both one- and two-step approaches.
8
INCORRECT The three forms of direct selling are the party plans, repetitive person-to-
person selling, and:
telemarketing.
A)
direct-response marketing.
B)
online selling.
C)
guerilla marketing.
D)
non repetitive person-to-person selling.

E)
Feedback:
Difficulty: Easy
LO: 14-03
Topic: Direct Selling
Blooms: Remember
AACSB: Analytic
In non repetitive person-to-person selling, a salesperson visits a buyers
home, job site, or other location to sell infrequently purchased products
or services.
9
INCORRECT Using the cost per order (CPO), advertisers can evaluate the relative
effectiveness of an ad in only a few minutes based on the:
number of names in a database

A)
dollar value associated with a customer.

B)
number of calls generated.

C)
frequency and reach of the medium.

D)
success of split-run tests.

E)
Feedback:
Difficulty: Medium
LO: 14-04
Topic: Evaluating the Effectiveness of Direct Marketing
Blooms: Understand
AACSB: Analytic
Using the cost per order (CPO), advertisers can evaluate the relative
effectiveness of an ad in only a few minutes based on the number of calls
generated.
10
INCORRECT Which of the following is an advantage associated with direct marketing?
Higher economies of scale

A)
Greater content support

B)
High degree of personalization

C)
Greater accuracy
D)
Lower costs
E)
Feedback:
Difficulty: Medium
LO: 14-04
Topic: Evaluating the Effectiveness of Direct Marketing
Blooms: Understand
AACSB: Analytic
One of the advantages of direct marketing is its high degree of
personalization. No other advertising medium can personalize the
message as well as direct media. Parents with children at different age
levels can be approached, with their childs name included in the appeal.
Car owners are mailed letters congratulating them on their new purchase
and offering accessories.
1
INCORRECT _____ serve as a means of communicating information about a companys
products and services, philanthropic efforts, contact information, and the
company itself.
Interstitials
A)
Websites
B)
Pop-ups
C)
Pop-unders
D)
Banners
E)
Feedback:
Difficulty: Easy
LO: 15-01
Topic: The Growth of the Internet
Blooms: Remember
AACSB: Analytic
Websites serve as a means of communicating information about a
companys products and services, philanthropic efforts, contact
information, and the company itself.
2 CORRECT
Which of the following statements is true of communication objectives that
companies want to achieve using the Internet?
The Internet, as part of an integrated marketing communications

program, can be a useful tool for branding.
A)
One of the difficulties traditional marketers have experienced is that of

generating interest on the Internet.
B)
The Internet is likely to be the most effective of the IMC elements for
creating awareness for large companies.
C)
One of the few disadvantages of the Internet is the inability to create

buzz.
D)
The Internet is an ineffective medium for stimulating trial of products or

services.
E)
Feedback:
Difficulty: Medium
LO: 15-01
Topic: The Growth of the Internet
Blooms: Understand
AACSB: Analytic
The Internetas part of an integrated marketing communications
programcan be a useful tool for branding.
3 CORRECT
There are two types of Internet sponsorships. They are:
regular and content.

A)
interstitial and linking.

B)
visiting and linking.

C)
content and sidebar.

D)
regular and super-sized.

E)
Feedback:
Difficulty: Easy
LO: 15-02
Topic: The Internet and Integrated Marketing Communications
Blooms: Remember
AACSB: Analytic
A common form of advertising is sponsorships. There are two types of
sponsorshipsregular and content.
4
INCORRECT Fly High Airlines places an ad on DreamTerminals.com, a popular travel
website, containing details about its airline fares and destinations. Fly High
Airlines is using:
pay-per-click advertising.
A)
behavioral targeting.
B)
contextual advertising.
C)
repositioning.
D)
retargeting.
E)
Feedback:
Difficulty: Hard
LO: 15-02
Blooms: Apply
The above scenario is an example of contextual advertising. Advertisers
who target their ads based on the content of a webpage are using
contextual advertising. For example, an advertiser may place an airline ad
on a travel site or a golf club ad on a golf site, or even in or near a story
about golf on another site.
5
INCORRECT A Web 2.0 site:
prohibits interactive information sharing, interoperability, and user-

centered design.
A)
limits its users to passive viewing of information that is provided to

them.
B)
allows its users to interact with each other as contributors to the

websites content.
C)
consists mainly of static sites resulting in a one-way flow of

communication.
D)
allows its users to control the website using basic programming skills.
E)
Feedback:
Difficulty: Medium
LO: 15-02
Blooms: Understand
AACSB: Analytic
A Web 2.0 site allows its users to interact with each other as contributors
to the websites content, in contrast to websites where users are limited
to the passive viewing of information that is provided to them.
6
INCORRECT Which of the following statements is true of Really Simple Syndication
(RSS)?
RSS alerts are presented in reverse chronological order.

A)
RSS alerts can be customized to the preferences of viewers.

B)
RSS feeds do not send out notifications whenever new material is

created.
C)
RSS feeds are not automatically generated by the online server.

D)
RSS uses BPML to organize and format web-based content in a standard

way.
E)
Feedback:
Difficulty: Medium
LO: 15-02
Blooms: Understand
AACSB: Analytic
Because RSS alerts can be customized to viewers preferences,
advertisers have found it useful for disseminating information to those
who may be most interested.
7 CORRECT
Hera Inc., an electronics manufacturer, offers online coupons to its websites
visitors. The visitors can later redeem the coupon at the companys retail
outlet. Hera is a using a _____ strategy on the Internet.
sales promotion
A)
public relations
B)
personal selling
C)
print advertising
D)
direct marketing
E)
Feedback:
Difficulty: Hard
LO: 15-02
Blooms: Apply
The above scenario is an example of sales promotion on the Internet.
Companies have found the Internet to be a very effective medium for
disseminating sales promotions. Numerous companies tie in sales
promotions to their websites and/or through other forms of digital and
social media. Numerous companies now print online coupons.
8
INCORRECT Which of the following is true of surveys?
They are typically not used to gauge customer attitudes toward a site.
A)
They are not suitable for determining site usage.

B)
They are used only as a repositioning tool.

C)
They are not suitable for the Internet.

D)
They can be conducted using traditional methods.
E)
Feedback:
Difficulty: Medium
LO: 15-03
Topic: Mobile
Blooms: Understand
AACSB: Analytic
Survey research, conducted both online and through traditional methods,
is employed to determine everything from site usage to attitudes toward
a site.
9 CORRECT
Which of the following is a disadvantage of the Internet as an advertising
medium?
Low reliability on research numbers generated

A)
Inability to be efficiently used with an IMC program

B)
Limited usefulness as an information source

C)
Low exposure
D)
Lack of creative potential

E)
Feedback:
Difficulty: Easy
LO: 15-04
Topic: Advantages and Disadvantages of the Internet, Digital and Social
Media
Blooms: Remember
AACSB: Analytic
One of the greatest disadvantages of the Internet is the lack of reliability
of the research numbers generated. Due to difficulties involved in both
measuring and forecasting in this medium, it remains necessary to
proceed with caution when using these numbers.
10
INCORRECT A Chicago-based law firm filed a class action suit against DollarFind Inc., a
provider of financial services, for illegally sharing credit card data with
telemarketers and vendors. Which of the following problems associated with
marketing on the Internet is illustrated in this lawsuit?
Limited message tailoring

A)
Buyer liability
B)
Computer hacking
C)
Potential for deception

D)
Lack of selectivity
E)
Feedback:
Difficulty: Hard
LO: 15-04
Topic: Advantages and Disadvantages of the Internet, Digital and Social
Media
Blooms: Apply
The above scenario is an example of invasion of privacy. One of the many
issues of concern for Internet users is that of privacy. Perhaps of most
concern is the collection of personal data which are subsequently
provided to marketers, sometimes, without users knowledge.
1 CORRECT
What does it mean when sales promotions are referred to as acceleration
tools?
Sales promotions are designed to speed up the selling process and

maximize volume.
A)
The use of sales promotions results in the diffusion rate being twice as
fast as it is without them.
B)
Sales promotions quicken the distribution process.

C)
Sales promotions increase the rate at which a product moves through its
product life cycle.
D)
Sales promotions enhance an organization's ability to recover research

and development costs.
E)
Feedback:
Difficulty: Medium
LO: 16-01
Topic: The Scope and Role of Sales Promotion
Blooms: Understand
AACSB: Analytic
Sales promotion is essentially an acceleration tool, designed to speed up
the selling process and maximize sales volume.
2
INCORRECT Diva Inc., a cosmetics company that sells its products to end users, is losing
its position in the market due to the presence of strong competitors. Which
of the following sales promotion techniques can be used by the company to
retain its current customer base?
Trade allowances
A)
Bonus packs
B)
Dealer contests
C)
Dealer incentives
D)
Sales training programs

E)
Feedback:
Difficulty: Hard
LO: 16-02
Topic: Consumer-Oriented Sales Promotion
Blooms: Apply
In the given scenario, the company can make use of bonus packs to retain
its current customer base. A company can use sales promotion techniques
in several ways to retain its current customer base. One way is to load
them with the product, taking them out of the market for a certain time.
Special price promotions, coupons, or bonus packs can encourage
consumers to stock up on the brand.
3
INCORRECT Which of the following is the best example of a product that is suitable for
sampling?
Lawn furniture
A)
Leather briefcase
B)
Ceiling fan
C)
Cosmetic surgery
D)
Dry pet food

E)
Feedback:
Difficulty: Hard
LO: 16-03
Topic: Consumer-Oriented Sales Promotion Techniques
Blooms: Apply
In the given scenario, dry pet food is the best example of a product that
is suitable for sampling. Three criteria for an effective sampling program:
1) The products are of relatively low unit value, so samples do not cost
too much 2) The products are divisible 3) The purchase cycle is relatively
short.
4
INCORRECT Spirit, a beverage manufacturer, distributes cans of its new energy drink for
free at the National Skateboarding Championship. This is an example of
_____ sampling.
on-package
A)
interactive
B)
Gen X
C)
event
D)
person-to-person
E)
Feedback:
Difficulty: Hard
LO: 16-03
Blooms: Apply
The above scenario is an example of event sampling. Event sampling has
become one of the fastest-growing and most popular ways of distributing
samples. Many marketers are using sampling programs that are part of
integrated marketing programs that feature events, media tie-ins, and
other activities that provide consumers with a total sense of a brand
rather than just a few tastes of a food or beverage or a trial size of a
packaged-goods product. Event sampling can take place in stores as well
as at a variety of other venues such as concerts, sporting events, and
other places.
5
INCORRECT Crackle Cookies is a cookie manufacturer. During the packaging process, the
company includes small toys for kids in each Crackle Cookie box. The toys
found in Crackle Cookie boxes are a classic example of a:
price-off deal.
A)
sample.
B)
free premium.
C)
rebate.
D)
self-liquidating premium.
E)
Feedback:
Difficulty: Hard
LO: 16-03
Blooms: Apply
In the given scenario, the toys found in Crackle Cookie boxes are an
example of free premiums. Free premiums are usually small gifts or
merchandise included in the product package or sent to consumers who
mail in a request along with a proof of purchase. In/on-package free
premiums include toys, balls, trading cards, or other items included in
cereal packages, as well as samples of one product included with another.
6 CORRECT
Popular, a radio station in the U.S. ran a _____, a type of consumer
promotion in which it offered $20,000 to the first person to call in with the
right answer to the radio presenter's question.
contest
A)
rebate
B)
price-off deal
C)
bonus deal
D)
lucky-dip
E)
Feedback:
Difficulty: Hard
LO: 16-03
Blooms: Apply
In the given scenario, the radio station ran a contest. A contest is a
promotion where consumers compete for prizes or money on the basis of
skills or ability. The company determines winners by judging the entries
or ascertaining which entry comes closest to some predetermined
criteria.
7
INCORRECT Which of the following is also known as a spiff?
Pull money
A)
Rebate
B)
Sweepstake
C)
Push money
D)
Buy-in
E)
Feedback:
Difficulty: Easy
LO: 16-03
Topic: Trade-Oriented Sales Promotion
Blooms: Remember
AACSB: Analytic
Manufacturers often devise incentives or contests for sales personnel.
These programs may involve cash payments made directly to the
retailers or wholesalers sales staff to encourage them to promote and
sell a manufacturers product. These payments are known as push money
(pm) or spiffs.
8 CORRECT
Treat, a food manufacturer, introduced a yogurt-based drink, which did not
achieve the forecasted level of minimum sales. Some supermarkets
demanded that Treat pay ______ to cover the costs associated with
stocking, maintaining inventories, and pulling the product off the shelves.
failure fees
A)
slotting allowances
B)
push monies
C)
introductory fees
D)
street monies
E)
Feedback:
Difficulty: Hard
LO: 16-03
Topic: Trade-Oriented Sales Promotion
Blooms: Apply
Some retailers have even been demanding failure fees if a new product
does not hit a minimum sales level within a certain time. The fee is
charged to cover the costs associated with stocking, maintaining
inventories, and then pulling the product.
9
INCORRECT Which of the following statements is true of the coordination of advertising
and sales promotion efforts?
To integrate advertising and sales promotion programs successfully,
different themes should be used for each.
A)
Consumers are less likely to redeem a coupon or respond to a price-off
deal for a brand they are familiar with than one they know nothing
B) about.
Product trial created through sales promotion techniques, such as
sampling or couponing, is more likely to result in long-term use of the
C) brand if accompanied by advertising.
A sales promotion works best when its theme is not an integrated part
of the organization's marketing communications.
D)
Media support for a sales promotion program should not be coordinated

with the media program for the ad campaign.
E)
Feedback:
Difficulty: Medium
LO: 16-04
Topic: Coordinating Sales Promotion with Advertising and Other IMC
Tools
Blooms: Understand
AACSB: Analytic
By using advertising in conjunction with a sales promotion program,
marketers can make consumers aware of the brand and its benefits and
increase their responsiveness to the promotion. Product trial created
through sales promotion techniques such as sampling or high-value
couponing is more likely to result in long-term use of the brand when
accompanied by advertising.
10
CORRECT Alan Sawyer and Peter Dickson have used the concept of _____ to examine
how sales promotion may affect consumer attitude formation.
attribution theory
A)
mirror image rule

B)
social identity theory

C)
self-verification theory
D)
observational learning
E)
Feedback:
Difficulty: Easy
LO: 16-05
Topic: Sales Promotion Abuse
Blooms: Remember
AACSB: Analytic
Alan Sawyer and Peter Dickson have used the concept of attribution
theory to examine how sales promotion may affect consumer attitude
formation. According to this theory, people acquire attitudes by observing
their own behavior and considering why they acted in a certain manner.
1 CORRECT
Which of the following is a disadvantage of using marketing public relations
(MPR)?
MPR does not offer any standard effectiveness measures.

A)
MPR fails to break through the clutter.

B)
MPR fails to contribute to the ROI of an organization.

C)
MPR is not a cost-effective way to reach a target market.

D)
MPR fails to influence opinion leaders.

E)
Feedback:
Difficulty: Medium
LO: 17-01
Topic: Public Relations
Blooms: Understand
AACSB: Analytic
One disadvantage of MPRs is that there are no standard effectiveness
measures.
2
INCORRECT The employees of a multinational company, its stockholders, and some
members of the community receive a magazine published by the company
that describes its new products, ways in which the company has positively
impacted the environment, and such information. The recipients of this
magazine comprise its:
external audience.
A)
measurable audience.
B)
internal audience.
C)
public sector.
D)
media share.
E)
Feedback:
Difficulty: Hard
LO: 17-01
Topic: The Process of Public Relations
Blooms: Apply
Internal audiences may include the employees, stockholders, and
investors of the firm as well as members of the local community,
suppliers, and current customers.
3
INCORRECT Which of the following statements is true of public relations?
In both absolute and relative terms, the cost of public relations is high.
A)
Informative ads are an example of public relations efforts.

B)
Public relations is just as likely to suffer from clutter as any other form
of marketing communications.
C)
One major disadvantage of PR is the potential for not completing the

communications process.
D)
Public relations need not be coordinated with the marketing department

for effectiveness.
E)
Feedback:
Difficulty: Medium
LO: 17-01
Topic: The Process of Public Relations
Blooms: Understand
AACSB: Analytic
A major disadvantage of public relations is the potential for not
completing the communications process. While public relations messages
can break through the clutter of commercials, the receiver may not make
a connection to the source.
4
INCORRECT Publicity:
is a synonym for public relations.

A)
is usually controlled by a firm or its agents.

B)
is typically a long-term strategy.

C)
may originate from sources outside a firm.

D)
is always positive.
E)
Feedback:
Difficulty: Easy
LO: 17-04
Topic: Publicity
Blooms: Remember
AACSB: Analytic
Publicity refers to the generation of news about a person, product, or
service that appears in broadcast or print media. Both positive and
negative publicity often originates from sources other than the firm.
5
INCORRECT The major problems that arise from the use of publicity deal with the lack of:
credibility and timing.

A)
credibility and synergy with marketing functions.

B)
funds and process knowledge.

C)
obsolescence and accuracy.

D)
timing and accuracy.

E)
Feedback:
Difficulty: Easy
LO: 17-02
Topic: Publicity
Blooms: Remember
AACSB: Analytic
The major problems that arise from the use of publicity are lack of
control, timing and accuracy.
6 CORRECT
The Home Depot employed 116 athletes who participated in the Sydney
Olympics. The retailer gave them money and time off to make their dreams
a reality. Home Depot ads showing its athlete-employees preparing to leave
for the Olympics were an example of:
corporate advertising.
A)
prestige publicity.
B)
competitive publicity.
C)
event marketing.
D)
internal marketing.
E)
Feedback:
Difficulty: Hard
LO: 17-03
Topic: Corporate Advertising
Blooms: Apply
The above scenario is an example of corporate advertising. Actually an
extension of the public relations function, corporate advertising does not
promote any one specific product or service. Rather, it is designed to
promote the firm overall by enhancing its image, assuming a position on
a social issue or cause, or seeking direct involvement in something.
7
INCORRECT Which of the following is true of corporate advertising?
It generates a lot of interest among consumers.

A)
It is generally considered a useful investment.

B)
It is a costly form of self-indulgence.

C)
It is used to attract various forms of external investment.

D)
It leads to a reduction in employee morale.

E)
Feedback:
Difficulty: Medium
LO: 17-03
Blooms: Understand
AACSB: Analytic
Corporate advertising is considered a costly form of self-indulgence.
Firms have been accused of engaging in corporate image advertising only
to satisfy the egos of top management.
8
INCORRECT A computer retailer who sets up a recycling program in which it accepts used
computers from customers, sells the reusable parts, and recycles other
components, runs an ad encouraging other computer resellers to recycle and
preserve the environment. This is an example of:
direct response advertising.

A)
a news release.
B)
prestige advertising.
C)
competitive advertising.
D)
advocacy advertising.
E)
Feedback:
Difficulty: Hard
LO: 17-03
Blooms: Apply
One form of corporate advertising addresses social, business, or
environmental issues. Such advocacy advertising is concerned with
propagating ideas and elucidating controversial social issues of public
importance in a manner that supports the interests of the sponsor.
9 CORRECT
AngloGold, a South African gold mining company, sponsored a charity
organization that works to prevent AIDS and to treat those who are already
stricken with the disease. The company made a large donation to the AIDS
organization and has promised continued support. An ad describing these
activities and asking others for additional support would be an example of:
cause-related advertising.
A)
event sponsorship.
B)
specialty advertising.
C)
D)
advocacy advertising.
E)
Feedback:
Difficulty: Hard
LO: 17-03
Blooms: Apply
The above scenario is an example of cause-related advertising. An
increasingly popular method of image building is cause-related
marketing, in which companies link with charities or nonprofit
organizations as contributing sponsors. The company benefits from
favorable publicity, while the charity receives much-needed funds.
10
INCORRECT Goldsmith Inc., a South African gold mining company, sponsors a charity
organization that works for the prevention of AIDS as part of the companys
corporate advertising strategy. How can AngloGold measure the effectiveness
of its corporate advertising?
Recognition tests
A)
Focus group research

B)
People meters
C)
Observational research
D)
Correlation analysis
E)
Feedback:
Difficulty: Hard
LO: 17-03
Blooms: Apply
Goldsmith Inc. can use focus groups to measure the effectiveness of its
corporate advertising. Focus groups have been used to find out what
investors want to see in ads and how they react after the ads are
developed.
1
INCORRECT Measuring the effectiveness of the promotional program:
is typically considered dispensable.

A)
is a critical element of the promotional planning process.

B)
is usually inexpensive and easy to administer.

C)
is usually required to identify costly mistakes.

D)
is not in the scope of the IMC process.

E)
Feedback:
Difficulty: Medium
LO: 18-01
Topic: Introduction
Blooms: Understand
AACSB: Analytic
Measuring the effectiveness of the promotional program is a critical
element in the promotional planning process. Research allows the
marketing manager to evaluate the performance of specific program
elements and provides input into the next periods situation analysis.
2 CORRECT
A set of principles aimed at improving the research used in preparing and
testing ads, providing a better creative product for clients, and controlling
the cost of TV commercials, is known as:
Positioning Advertising Copy Testing (PACT).

A)
Post-Advertising Commercial Testing (PACT).

B)
Promotional Advertising Content Testing (PACT).

C)
Pre-Advertising Commercial Testing (PACT).

D)
Principles of Advertising Consumer Testing (PACT).

E)
Feedback:
Difficulty: Easy
LO: 18-02
Topic: Conducting Research to Measure Advertising Effectiveness
Blooms: Remember
AACSB: Analytic
Twenty-one of the largest U.S. ad agencies have endorsed a set of
principles aimed at improving the research used in preparing and testing
ads, providing a better creative product for clients, and controlling the
cost of TV commercials. This set of nine principles is called Positioning
Advertising Copy Testing (PACT).
3
INCORRECT Which of the following is classified as a posttest field method for conducting
research to measure advertising effectiveness?
Theater tests
A)
Rough tests
B)
Concept tests
C)
Inquiry tests
D)
On-air tests
E)
Feedback:
Difficulty: Remember
LO: 18-02
Topic: Conducting Research to Measure Advertising Effectiveness
Blooms: Easy
AACSB: Analytic
Inquiry tests are classified as a posttest field method for conducting
research to measure advertising effectiveness.
4
INCORRECT Which of the following is true of comprehension and reaction tests?
They employ a specific and standardized procedure.

A)
They are generally considered ineffective for measuring print ads.

B)
They are designed to check whether the ad conveys the meaning

intended.
C)
They employ consumer juries to evaluate the probable success of an ad.

D)
They are also known as halo tests.

E)
Feedback:
Difficulty: Medium
LO: 18-02
Topic: The Testing Process
Blooms: Understand
AACSB: Analytic
One key concern for an advertiser is whether an ad or commercial
conveys the meaning intended. The second concern is the reaction the ad
generates. Obviously, an advertiser does not want an ad that evokes a
negative reaction or offends someone. Comprehension and reaction tests
are designed to assess these responses.
5
INCORRECT A consumer jury has been asked to rate a series of automobile commercials.
Many members of the jury grew up during the 1990s and are fans of reggae
bands. Only one of the commercials uses a reggae soundtrack. They rank
this commercial as their favorite even though they admit that the visuals are
not engaging enough and that the copy is boring. Which of the following
perception errors is reflected in this scenario?
recency effect
A)
halo effect
B)
iceberg principle
C)
theory of commonality
D)
perceptual horizon
E)
Feedback:
Difficulty: Hard
LO: 18-02
Blooms: Apply
The above scenario is an example of the halo effect. Sometimes
participants rate an ad good on all characteristics because they like a few
and overlook specific weaknesses. This tendency, called the halo effect,
distorts the ratings and defeats the ability to control for specific
components.
6 CORRECT
In mall intercepts, consumers:
assess ads via questionnaires and rating scales.

A)
participate in group discussions.

B)
participate in brainstorming and lateral thinking sessions.

C)
participate in the new product development process.

D)
are given free samples of products for trial.

E)
Feedback:
Difficulty: Medium
LO: 18-02
Blooms: Understand
AACSB: Analytic
A way to gather consumers opinions of concepts is mall intercepts,
where consumers in shopping malls are approached and asked to
evaluate rough ads and/or copy. Rather than participating in a group
discussion, individuals assess the ads via questionnaires, rating scales,
and/or rankings.
7
INCORRECT Which of the following is an advantage offered by the consumer jury method
for evaluating the probable success of an ad?
Easy ranking procedure
A)
Lack of halo effect

B)
Evaluation of unlimited ads

C)
Cost effectiveness
D)
Subjectivity
E)
Feedback:
Difficulty: Easy
LO: 18-02
Blooms: Remember
AACSB: Analytic
While the consumer jury method offers the advantages of control and
cost effectiveness, serious flaws in the methodology limit its usefulness.
8 CORRECT
The advantage of test marketing ads is:
realism.
A)
synergy.
B)
low costs.
C)
the absence of problems associated with competitive intelligence.

D)
longitudinal data.
E)
Feedback:
Difficulty: Easy
LO: 18-02
Blooms: Remember
AACSB: Analytic
The advantage of test marketing of ads is realism. Regular viewing
environments are used and the testing effects are minimized. A high
degree of control can be attained if the test is designed successfully.
9
INCORRECT Which of the following measures of advertising effectiveness through
inquiries examines the cumulative effects of a campaign?
Running variations of an ad in different copies of the same medium
A)
Running the same ad in different media

B)
Running an ad in successive issues of the same medium

C)
Running different ads in the same medium

D)
Running variations of an ad in the same medium

E)
Feedback:
Difficulty: Medium
LO: 18-02
Blooms: Understand
AACSB: Analytic
Complex methods of measuring effectiveness through inquiries may
involve running an ad in successive issues of the same medium to
measure the cumulative effects of the campaign.
10
INCORRECT Positioning Advertising Copy Testing:
must create an independent IMC process.

A)
must measure objectives outside the scope of advertising.

B)
be based on a human response to communications.

C)
remove controls to avoid biasing effects of exposure.

D)
must not include basic considerations of sample definition.

E)
Feedback:
Difficulty: Medium
LO: 18-03
Topic: Establishing a Program for Measuring Advertising Effects
Blooms: Understand
AACSB: Analytic
The best starting point is principle 4 of Positioning Advertising Copy
Testing (PACT), which states a research should be guided by a model of
human response to communications that encompasses reception,
comprehension, and behavioral response. It is the best starting point
because it is the principle least addressed by practicing researchers.
11
INCORRECT The two basic methods for measuring the effectiveness of sponsorship are:
pre-event measures and post-event measures.

A)
trade-oriented methods and consumer-oriented methods.

B)
tracking measures and inquiry methods.

C)
exposure-based methods and tracking measures.

D)
physiological measures during the event and tracking measures after the
event.
E)
Feedback:
Difficulty: Medium
LO: 18-04
Topic: Measuring the Effectiveness of Other Program Elements
Blooms: Understand
AACSB: Analytic
Essentially, measures of sponsorship effectiveness can be categorized as
exposure-based methods or tracking measures.
1
INCORRECT Companies are pursuing international markets because of the:
increase in diseconomies of scale.

A)
rapid growth of population in home country markets.

B)
decrease in oil prices around the world.

C)
easy possibility of penetration into culturally diverse markets.

D)
opportunities they offer for growth and profits.

E)
Feedback:
Difficulty: Medium
LO: 19-01
Topic: The Importance of International Markets
Bloom's: Understand
AACSB: Analytic
Companies are pursuing international markets because of the
opportunities they offer for growth and profits.
2 CORRECT
Which of the following is a cultural variable that firms must consider before
entering a foreign market?
Moral standards
A)
Education levels
B)
Household size
C)
Standards of living
D)
Age distribution
E)
Feedback:
Difficulty: Easy
LO: 19-02
Topic: The International Environment
Bloom's: Remember
AACSB: Analytic
Cultural variables marketers must consider include language, customs,
tastes, attitudes, lifestyles, values, and ethical/moral standards. Nearly
every country exhibits cultural traits that influence not just the needs and
wants of consumers but how they go about satisfying them.
3
INCORRECT According to the policies of the Malaysian government, "Advertisements
must not project or promote an excessively aspirational lifestyle." These
policies are considered a component of the local _____ environment.
geographic
A)
economic
B)
demographic
C)
cultural
D)
political
E)
Feedback:
Difficulty: Hard
LO: 19-02
Topic: The International Environment
Bloom's: Apply
The above scenario is an example of political/legal factors that
advertisers must consider when advertising in foreign markets. The
political and legal environment in a country is one of the most important
factors influencing the advertising and promotional programs of
international marketers. Regulations differ owing to economic and
national sovereignty considerations, nationalistic and cultural factors,
and the goal of protecting consumers not only from false or misleading
advertising but, in some cases, from advertising in general.
4
INCORRECT One advantage of a global marketing strategy and advertising program is
the:
ability to maintain a diverse image across different countries.

A)
ability to attain economies of scale in production and distribution.

B)
ability to deal with legal restrictions across international borders.

C)
ease of translating advertising messages into different languages.

D)
availability of concentrated media vehicles in different countries.

E)
Feedback:
Difficulty: Medium
LO: 19-03
Topic: Global Versus Localized Advertising
Bloom's: Understand
AACSB: Analytic
One advantage of a global marketing strategy and advertising program is
economies of scale in production and distribution.
5 CORRECT
Switzerland is admired worldwide for its methodical precision and integrity in
business. Throughout the world people have the perception that watches
made in Switzerland are of the highest quality. This perception among
consumers is referred to as the:
country-of-origin effect.
A)
localization effect.
B)
culturalization effect.
C)
ethnocentrism effect.
D)
halo effect.
E)
Feedback:
Difficulty: Hard
LO: 19-03
Bloom's: Apply
The above scenario is an example of the country-of-origin effect. Products
that come from countries with national reputations for quality and/or a
distinctive image can be used as the basis for global advertising. These
products capitalize on the country-of-origin effect, which refers to
consumers' general perceptions of quality for products made in a given
country.
6
INCORRECT _____ is a marketing strategy in which ads follow a basic approach, but
themes, copy, and visual elements are adapted to differences in local
markets.
Nationalistic advertising
A)
Localized formatting
B)
Pattern advertising
C)
Format advertising
D)
Switch advertising
E)
Feedback:
Difficulty: Easy
LO: 19-03
Bloom's: Remember
AACSB: Analytic
Many global marketers use a strategy called pattern advertising; their ads
follow a basic approach, but themes, copy, and sometimes even visual
elements are adapted to differences in local markets.
7
INCORRECT Under a _____ organizational structure, marketing and advertising managers
in each market have the authority to make their own advertising and
promotional decisions.
centralized
A)
decentralized
B)
pattern
C)
globalized
D)
matrix
E)
Feedback:
Difficulty: Easy
LO: 19-04
Topic: Decision Areas in International Advertising
Bloom's: Remember
AACSB: Analytic
Decentralization works well in small or unique markets where
headquarters' involvement is not worthwhile or advertising must be
tailored to the local market. Under a decentralized organizational
structure, marketing and advertising managers in each market have the
authority to make their own advertising and promotional decisions.
8
INCORRECT According to advertising executives, the major reason for the consolidation
of all advertising activities with one agency instead of the use of several
small localized agencies is:
the disappearance of cultural values.

A)
the disappearance of nationalism.

B)
the growing popularity of pattern advertising.

C)
the agency's ability to communicate and manage globally.

D)
the agency's potential for increased diseconomies of scale.

E)
Feedback:
Difficulty: Medium
LO: 19-04
Bloom's: Understand
AACSB: Analytic
Advertising executives noted that a major reason for all of the account
consolidation is that agencies now have the ability to communicate and
manage globally. The Internet, e-mail, and airline connections make it
much easier to manage accounts around the globe.
9
INCORRECT Which of the following is true of German advertising appeals?
They are typically based on emotional appeals.

A)
They are image-heavy.
B)
They contain limited text.

C)
They contain arguments for a product's superiority.

D)
They are typically considered effusive and time-consuming.

E)
Feedback:
Difficulty: Medium
LO: 19-04
Bloom's: Understand
AACSB: Analytic
When companies follow a localized advertising strategy, the creative
team must determine what type of selling idea, ad appeal, and execution
style will work in each market. A product may have to be positioned
differently in each market depending on consumers' usage patterns and
habits. German advertising appeals typically contain arguments for a
product's superiority.
10
INCORRECT When developing an international sales promotion program, marketers need
to specifically consider:
their organizational structure.

A)
modifications in their mission statement.

B)
consumer perceptions of promotional tools.

C)
the impact of dyadic media.

D)
their articles of incorporation.

E)
Feedback:
Difficulty: Medium
LO: 19-05
Topic: The Roles of Other Promotional-Mix Elements in International
Marketing
Bloom's: Understand
AACSB: Analytic
Kamran Kashani and John Quelch noted several important differences
among countries that marketers must consider in developing a sales
promotion program. They include the stage of economic development,
market maturity, consumer perceptions of promotional tools, trade
structure, and legal restrictions and regulations.
1
INCORRECT Which of the following is an internal self-regulation agency that controls
advertising?
Food, Advertising, and Drug Administration

A)
U.S. Postal Service

B)
National Advertising Review Board

C)
Bureau of Alcohol, Tobacco, Firearms and Explosives

D)
National Association of Attorneys General

E)
Feedback:
Difficulty: Easy
LO: 20-01
Topic: Introduction
Bloom's: Remember
AACSB: Analytic
Internal regulation from such groups as the media and the National
Advertising Review Board probably has more influence on advertisers'
day-to-day operations and decision making than government rules and
regulations.
2
INCORRECT Which of the following statements is true of the American Advertising
Federation (AAF)?
The AAF issues guidelines for specific types of advertising such as

comparative messages.
A)
The AAF monitors advertising practices primarily in professional

associations like AMA and ABA.
B)
The AAF is involved in implementing advertising legislation.

C)
The AAF is involved in legislations related to trade and commerce.

D)
The AAF only consists of advertisers and advertising agencies.

E)
Feedback:
Difficulty: Medium
LO: 20-02
Topic: Self-regulation
Bloom's: Understand
AACSB: Analytic
The AAF has standards for truthful and responsible advertising, is
involved in advertising legislation, and actively influences agencies to
abide by its code and principles.
3
INCORRECT The Central Hudson Test:
was used to define unfair advertising prior to the passage of the

Wheeler-Lea Amendment.
A)
is used to test if a sales promotion can be characterized as a contest or

if it must be called a lottery.
B)
is used to justify restocking fees.

C)
is a four-part test used to determine restrictions on commercial speech.

D)
can be used to identify the need for corrective advertising.

E)
Feedback:
Difficulty: Medium
LO: 20-03
Topic: Federal Regulation of Advertising
Bloom's: Understand
AACSB: Analytic
The Court established a four-part test, known as the Central Hudson Test,
for determining restrictions on commercial speech.
4
INCORRECT The Wheeler-Lea Amendment was passed by the U.S. Congress to close a
loophole in the:
Sherman Act.
A)
NAD/NARB Act.
B)
Robinson-Patman Act.
C)
Food and Drug Administration Act.

D)
Federal Trade Commission Act.

E)
Feedback:
Difficulty: Medium
LO: 20-03
Bloom's: Understand
AACSB: Analytic
In 1938, Congress passed the Wheeler-Lea Amendment. The amendment
empowered the FTC to act if there was evidence of injury to the public;
proof of injury to a competitor was not necessary.
5
INCORRECT Maple Leaf, a restaurant chain, uses the slogan "Undeniably the best place to
dine" in all its advertisements. It also claims to serve the best seasoned-
lamb fillet steak in the world. Maple Leaf's ad slogan and superiority claim
are examples of:
deceptive advertising.
A)
WOM marketing.
B)
puffery advertising.
C)
D)
noncompetitive advertising.
E)
Feedback:
Difficulty: Hard
LO: 20-03
Bloom's: Apply
The above scenario is an example of puffery. Puffery has been legally
defined as "advertising or other sales presentations which praise the item
to be sold with subjective opinions, superlatives, or exaggerations,
vaguely and generally, stating no specific facts."
6
INCORRECT One of the key elements in the Federal Trade Commission's (FTC's) definition
of deception is that the act or practice must be considered from the
perspective of the:
professional associations.
A)
U.S. Supreme Court.

B)
reasonable consumer.
C)
federal agency.
D)
competing firms.
E)
Feedback:
Difficulty: Easy
LO: 20-03
Bloom's: Remember
AACSB: Analytic
The second element in the Federal Trade Commission's definition of
deception is that the act or practice must be considered from the
perspective of the reasonable consumer.
7
INCORRECT Sky Inc., a tobacco manufacturer, ran a series of ads for its new brand,
SkyMenthol. At the end of each print and television ad, the company
featured a statutory warning that stated "Cigarette smoking is injurious to
health." In this scenario, the company is using _____ disclosure.
heuristic
A)
mnemonic
B)
deceptive
C)
affirmative
D)
creative
E)
Feedback:
Difficulty: Hard
LO: 20-03
Bloom's: Apply
The above scenario is an example of affirmative disclosures. Under its
affirmative disclosure requirement, the FTC may require advertisers to
include certain types of information in their ads so that consumers will be
aware of all the consequences, conditions, and limitations associated with
the use of a product or service.
8 CORRECT
Which of the following statements best describes how the Federal Trade
Commission's (FTC's) substantiation program has affected the advertising
industry?
It shifted the burden of proof for ad claims from the commission to the
advertiser.
A)
It created an environment in which comparative advertising is legal and

ethical.
B)
It created a simple four-way test that can be used by agencies,
advertisers, and media to determine if an ad is deceptive.
C)
It encouraged professionals to engage in advertising.

D)
It required the media to provide specific time and space allocations to

public service announcements.
E)
Feedback:
Difficulty: Medium
LO: 20-03
Bloom's: Understand
AACSB: Analytic
The FTC's substantiation program has had a major effect on the
advertising industry, because it shifted the burden of proof from the
commission to the advertiser.
9 CORRECT
Which of the following is true of the Bureau of Alcohol, Tobacco, Firearms,
and Explosives (ATF)?
It operates within the Treasury Department.

A)
It has control over advertising involving the use of mail.

B)
It was amended to encompass false advertising.

C)
It was formerly known as the National Advertising Review Board.

D)
It is a subsidiary of the U.S. Postal Service.

E)
Feedback:
Difficulty: Medium
LO: 20-03
Bloom's: Understand
AACSB: Analytic
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) is an
agency within the Treasury Department that enforces laws, develops
regulations, and is responsible for tax collection for the liquor industry.
10
INCORRECT The Children's Online Privacy Protection Act (COPPA) of 1998:
is enforced by the Network Advertising Initiative.

A)
monitors the type of e-mail sent to teenagers and children.
B)
places tight restrictions on collecting information from children via the

Internet.
C)
requires all schools to use software to control students' access to certain

websites.
D)
was passed but never implemented.

E)
Feedback:
Difficulty: Easy
LO: 20-04
Topic: Regulation of Other Promotional Areas
Bloom's: Remember
AACSB: Analytic
The Children's Online Privacy Protection Act (COPPA) of 1998 places tight
restrictions on collecting information from children via the Internet and
requires that websites directed at children and young teens have a
privacy policy posted on their home page and areas of the site where
information is collected.
1
INCORRECT Which of the following is true of advertising?
It is the most expensive of all marketing tools.

A)
It is not as prevalent as other media of communication.

B)
It typically discourages materialism.

C)
It is one of the least visible of business activities.

D)
It is prone to scrutiny by those who are skeptical of advertising.

E)
Feedback:
Difficulty: Easy
LO: 21-01
Topic: Introduction
Bloom's: Remember
AACSB: Ethical Understanding
Advertising and promotion are the most visible of all business activities
and are prone to scrutiny by those who are concerned about the methods
marketers use to sell their products and services.
2
INCORRECT A pharmaceutical company develops a drug and claims that it enables weight
loss. However, it is later found that the drug not only fails to assist in weight
loss, but also leads to heart ailments. The company spends millions to
advertise the drug, but fails to mention the potential harmful side effects of
the drug. This can be classified as _____ advertising.
distasteful
A)
offensive
B)
deceptive
C)
informative
D)
ethical
E)
Feedback:
Difficulty: Medium
LO: 21-01
Topic: Advertising and Promotion Ethics
Bloom's: Apply
In the above scenario, the ad is untruthful and misleading and can be
called a deceptive advertisement. One of the major complaints against
advertising is that many ads are misleading or untruthful and deceive
consumers.
3 CORRECT
Critics argue that children are especially vulnerable to advertising because:
they lack the experience to evaluate the purpose of persuasive

advertising appeals.
A)
their direct purchases are not influenced by advertisements on television

and the Internet.
B)
they possess the cognitive defenses required to protect them from

misleading advertisements.
C)
they help increase sales by urging their family members to make

purchases.
D)
they are capable of differentiating between persuasive and informational

ads.
E)
Feedback:
Difficulty: Easy
LO: 21-01
Topic: Social and Ethical Criticisms of Advertising
Bloom's: Remember
Critics argue that children, particularly young ones, are especially
vulnerable to advertising because they lack the experience and
knowledge to understand and critically evaluate the purpose of
persuasive advertising appeals.
4 CORRECT
Which of the following is a criticism of persuasive advertising?
It controls the media.

A)
It discourages materialism.
B)
It encourages price sensitivity.

C)
It does not create needs.

D)
It admonishes stereotypes.
E)
Feedback:
Difficulty: Easy
LO: 21-02
Bloom's: Remember
Advertising is criticized for encouraging materialism, manipulating
consumers to buy things they do not really need, perpetuating
stereotypes, and controlling the media.
5
INCORRECT Many critics argue that advertising seeks to create needs rather than merely
showing how a product or service fulfills them. These critics claim that
advertising:
increases the consumer socialization process.

A)
devalues shock advertising.

B)
encourages materialism in society.

C)
makes consumers price-sensitive.

D)
equates success to intellectual growth.

E)
Feedback:
Difficulty: Medium
LO: 21-03
Bloom's: Understand
Critics argue that a major contributor to materialism is advertising that
seeks to create needs rather than merely showing how a product or
service fulfills them.
6
INCORRECT Which of the following statements, if true, would support the argument that
advertising encourages materialism?
Most advertisements bombard consumers with images of poverty and

suffering.
A)
Economies of scales are insignificant in the advertising industry.

B)
Informational advertising creates a competitive market that makes

consumers price-sensitive.
C)
Most advertisements seek to fulfill needs rather than create them.

D)
Advertising equates accumulation of wealth to success and popularity.

E)
Feedback:
Difficulty: Medium
LO: 21-03
Bloom's: Understand
Critics argue that a major contributor to materialism is advertising that
suggests that material possessions are symbols of success, status, and
accomplishment and/or lead to social acceptance, popularity, and sex
appeal.
7
INCORRECT Many criticize that advertising makes people buy things they do not really
need. Which of the following statements weakens this argument?
Materialism is an important value in an individualistic society.

A)
High advertisement costs lead to consumers paying a higher price for

the product.
B)
Most advertisements use emotional appeals to persuade customers.

C)
Advertising gives rise to discontent in individuals and makes them want

for more.
D)
It is difficult to make consumers purchase a product for which they do

not see a personal benefit.
E)
Feedback:
Difficulty: Medium
LO: 21-03
Bloom's: Understand
Proponents of advertising state that this argument ignores the fact that
consumers have the freedom to make their own choices when confronted
with persuasive advertising. It is extremely difficult to make consumers
purchase a product they do not want or for which they do not see a
personal benefit.
8
INCORRECT Smaller media companies often avoid certain topics or even present biased
news coverage, according to advertiser demands. Which of the following
terms best represents this practice?
Consumer socialization
A)
Economic censorship
B)
Shock advertising
C)
Stereotyping
D)
Media socialization
E)
Feedback:
Difficulty: Easy
LO: 21-03
Bloom's: Remember
It is well documented that economic censorship occurs due to
advertising, whereby the media avoid certain topics or even present
biased news coverage, in acquiescence to advertiser demands.
9 CORRECT
Advertising becomes a substitute for competition when:
large companies spend more on advertising to obtain dominance.

A)
there are many players in the market who have an equal budget for
advertising.
B)
the industry has an informal upper cap on advertisement spending.

C)
smaller brands have the opportunity to reach the audience with their
products.
D)
brands have to make product improvements to sustain their growth in

the market.
E)
Feedback:
Difficulty: Easy
LO: 21-04
Topic: Economic Effects of Advertising
Bloom's: Remember
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 becomes a substitute for competition based on price or
product improvements.
10
INCORRECT Which of the following conditions will be considered a barrier to entry for a
new product?
The product category is highly undifferentiated.

A)
The product category is characterized by a few substitutes.

B)
The product is a commodity for which consumers have no brand loyalty.

C)
Existing competitors for the new product have huge advertising budgets.
D)
The new product is characterized as a specialty good.

E)
Feedback:
Difficulty: Easy
LO: 21-04
Topic: Economic Effects of Advertising
Bloom's: Remember
Smaller firms already in the market find it difficult to compete against the
large advertising budgets of the industry leaders and are often driven out
of business. This acts as a barrier to entry.
1
INCORRECT In an integrated marketing communications program, personal selling is:
the most important element in the sales promotion mix.

A)
a substitute for the advertising element in the promotional mix.

B)
a promotional surrogate activity used to increase efficiency.

C)
a partner with the other elements of the promotional mix.
D)
not as effective as other marketing tools.

E)
Feedback:
Difficulty: Easy
LO: 22-01
Topic: The Scope of Personal Selling
Bloom's: Remember
AACSB: Analytic
In an integrated marketing communications program, personal selling is
a partner with, not a substitute for, the other promotional mix elements.
2
INCORRECT Personal selling uses _____ while other forms of promotional
communications do not.
one-way interaction
A)
mass communication
B)
dyadic communication
C)
indirect interaction
D)
feedback-less workflow
E)
Feedback:
Difficulty: Easy
LO: 22-01
Topic: The Role of Personal Selling in the IMC Program
Bloom's: Remember
AACSB: Analytic
Personal selling differs from the other forms of communication in that
messages flow from a sender to a receiver directly, and the sender can
immediately receive and evaluate feedback from the receiver. This
communications process is known as dyadic communication.
3 CORRECT
The sales force is a major party of the integrated marketing communications
(IMC) mix when:
advertising media do not provide effective links with target markets.

A)
the final price of a product is set prior to the sales presentation.

B)
the channel system is relatively long and indirectly linked to the end
user.
C)
the product being sold is a consumer packaged goods.

D)
no major purchase decisions are involved.

E)
Feedback:
Difficulty: Easy
LO: 22-01
Bloom's: Understand
AACSB: Analytic
The sales force is a major party of the integrated marketing
communications (IMC) mix when advertising media do not provide
effective links with target markets.
4
INCORRECT Which of the following markets exists when the salesperson is in the
procreator stage of personal-selling evolution?
Segmented
A)
Participative
B)
Dyadic
C)
Coactive
D)
Sellers
E)
Feedback:
Difficulty: Medium
LO: 22-01
Bloom's: Understand
AACSB: Analytic
A coactive market exists when the salesperson is in the procreator stage
of personal-selling evolution.
5
INCORRECT In which of the following industries are missionary sales reps most common?
Retail services industries such as banking

A)
Industries that produce nondurable consumer goods

B)
Industries that engage in online selling
C)
Industries that sell directly to professionals such as doctors

D)
Industries where the manufacturer uses distributors

E)
Feedback:
Difficulty: Medium
LO: 22-01
Bloom's: Understand
AACSB: Analytic
Missionary reps are most often employed in industries where the
manufacturer uses a middleperson to distribute the product.
6
INCORRECT Brooke's Inc. introduces a system that classifies leads based on their
response to an online questionnaire. These leads are then graded through
phone calls. The main function of this system introduced by Brooke's is to:
handle sales objections.

A)
determine if the prospects are qualified.

B)
follow-up and service the account.

C)
take field orders.

D)
act as a trial close.

E)
Feedback:
Difficulty: Medium
LO: 22-01
Bloom's: Understand
AACSB: Analytic
Marketers must determine whether the prospects are qualified prospects
that is, able to make the buying decision and pay for the product. A
system that gathers all leads and uses automated scripts, questionnaires
and phone calls to grade them are aiming to determine if the prospects
are qualified. In this scenario, Brooke's Inc. is qualifying the leads that it
receives through the online questionnaire by telemarketing.
7
INCORRECT Dana visits a store to buy a digital camera to take on vacation. The sales
clerk, Ricco, assists her in choosing a model that suits her needs. In the
process, Ricco also convinces Dana to buy a memory card to store pictures
until they can be transferred to a computer. Ricco convincing Dana to
purchase the memory card is an example of _____.
lead screening
A)
cross selling
B)
follow-up servicing
C)
missionary selling
D)
field order taking

E)
Feedback:
Difficulty: Medium
LO: 22-01
Topic: Personal Selling Responsibilities
Bloom's: Apply
Cross selling refers to selling additional products and services to the
same customer. In this scenario, Ricco cross sells the memory cards to
Dana, who came into the store to buy a digital camera.
8
INCORRECT Which of the following is a major advantage of using personal selling?
Consistent messages
A)
Reduced conflicts
B)
Lack of distraction
C)
Extensive reach
D)
Better compliance to ethics

E)
Feedback:
Difficulty: Easy
LO: 22-02
Topic: Advantages and Disadvantages of Personal Selling
Bloom's: Remember
AACSB: Analytic
In many personal selling situations, a one-to-one presentation is
conducted. The likelihood of distractions is minimized and the buyer is
generally paying close attention to the sales message.
9 CORRECT
In some firms, the telemarketing department is used to screen leads. Which
of the following is an advantage of such screening?
It helps the organization qualify the prospects.

A)
It helps the organization create brand loyalty.

B)
It makes sure that the marketing communication is not distorted.

C)
It assists advertising through mass media in getting a better reach.

D)
It enables the salesperson to have walk-in presentations with customers.

E)
Feedback:
Difficulty: Easy
LO: 22-03
Topic: Combining Personal Selling with Other Promotional Tools
Bloom's: Remember
AACSB: Analytic
The telemarketing department is used to screen leads and, after
qualifying potential buyers on the basis of interest, credit ratings, and the
like, pass them on to the sales force.
10
INCORRECT Which of the following is a quantitative measure used to evaluate
salespeople?
Territory management
A)
Customer knowledge
B)
Use of technical back teams

C)
Customer feedback
D)
Percentage of goods returned

E)
Feedback:
Difficulty: Easy
LO: 22-04
Topic: Evaluating the Personal-selling Effort
Bloom's: Remember
AACSB: Analytic
The number of sales calls made, selling expenses, and percentage of
goods returned are all examples of quantitative measures of a
salesperson's performance.

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1 CORRECT

If value is defined as the customers perception of all of the benefits of a

It restricts the usage of Internet as an advertising medium.

It enables large companies to easily coordinate between remote and

It assists the company in avoiding duplication of promotional efforts.

It creates a lessening need for advertising agencies to be accountable

It minimizes the companys return on investment in marketing and

It is only done with the help of mass media advertising.

It is recognized as an important asset by most companies.

It is generally regarded as a subsidiary marketing effort.

It is also known as the trademark or service mark of the organization.

It is built and maintained only by spending large sums of money.

intrinsic touch points.

company created touch points.

unexpected touch points.

extrinsic touch points.

It focuses on product/service offering.

It focuses on aspects such as competitors and consumers.

It examines a firms ability to conduct successful staffing programs.

It studies the systemic failures of marketing departments.

It examines the individual failures of the various departments.

Having low production costs and high prices

Practicing bait marketing

Providing inferior customer service

Dominating channels of distribution

Copying competitor pricing

developing a positioning strategy.

identifying markets with unfulfilled needs.

conducting a SWOT analysis of all of its potential competitors.

hiring an advertising agency.

They generally focus on either the customer or the competition.

They are considered to be an insignificant factor in branding.

The first step in selecting a target market is selecting an appropriate

They fail to associate product benefits with customer needs.

They are inapplicable to service-based products.

a benefit positioning strategy.

positioning by cultural symbols.

positioning by product class.

a lifestyle segmentation strategy.

It is the packaging element of the marketing and advertising mix.

It is the place element of the marketing mix.

It results from a favorable image of a consumer to a company name.

It is a tangible asset of value.

promotional pull strategies.

promotional push strategies.

bait-and-switching advertising strategies.

market harvesting strategies.

Associate creative director

Marketing research executive

It includes sales and profit performance.

It does not require extensive short-term planning capabilities.

It primarily includes the creative aspects.

It is synonymous with the role of an advertising manager.

It does not include budgeting in its scope.

they allow for more top management involvement in advertising

the Federal Trade Commission recommends outside firms in order to

they gain knowledge about competitors activities.

they are able to respond more quickly to environmental changes than

creative services department.

management and finance department.

are departments in most full-service advertising agencies.

are used when an advertiser wants to reach a market that is not

are types of full-service agencies that limit their activities to guerrilla

lack media, research, or account planning capabilities.