Exam 1*

Which of the following is a social benefit of advertising? A. It helps pay for newspapers and other media. B. It discourages economic competition. C. It emphasizes consumerism over other values. D. It perpetuates longstanding stereotypes. E. It exposes people to thousands of commercial messages daily.

A. It helps pay for newspapers and other media.

Which statement best describes how the growth of new media has affected traditional media? A. New media have massively disrupted traditional media, such as newspapers, by costing them revenue. B. As new media have grown more popular, they have earned far more advertising revenues than traditional media. C. New media grew sharply at first but proved to be a short-lived fad that did not affect traditional media. D. The new media have merged with traditional media like newspapers and prevented them from closing. E. New media have had no effect at all on traditional media.

A. New media have massively disrupted traditional media, such as newspapers, by costing them revenue.

Which of the following organizations is most likely to use a public service announcement (PSA)? A. The Humane Society B. Dell Computer C. American Stock Exchange D. Delta Airlines E. Walmart

A. The Humane Society

Beginning in the 1840s, _____ permitted advertising on a national scale with high-quality reproduction. A. magazines B. newspapers C. handbills D. direct mailings E. store signs

A. magazines

During the preindustrial age, most advertisements took the form of signs with symbols such as a beer tankard indicating a tavern because A. most people were illiterate and could not read. B. most firms could not afford more sophisticated advertisements. C. local laws prohibited advertising in newspapers. D. most churches would not approve other forms of advertising. E. signs and symbols were considered lucky.

A. most people were illiterate and could not read.

or years Levi-Strauss advertised its jeans to baby boomers because that is what most baby boomers wore during the 1960s, and many baby boomers are trying to buy back their youth. Unfortunately, this strategy of making Levi's a baby boomer icon has decreased the brand's appeal to today's teens, who perceive the Levi's brand as old-fashioned. In this example, the _____ did not produce a positive effect. A. positioning strategy B. unique selling proposition C. logistical strategy D. promotional mix E. universal sales promotion

A. positioning strategy

Which of the following ages in the evolution of advertising was characterized by the Chinese inventing paper, Johannes Guttenberg inventing the printing press, and the Boston Newsletter beginning to carry advertisements that appealed to American colonists? A. preindustrial age B. industrial age C. golden age D. postindustrial age E. global interactive age

A. preindustrial age

The 4Ps of the marketing mix are A. product, price, place, and promotion. B. product, people, process, and promotion. C. people, price, place, and product. D. product, process, people, and physical evidence. E. place, people, product, and process.

A. product, price, place, and promotion.

Benjamin Franklin was the first American known to A. use illustrations in ads. B. print color in a newspaper. C. use copy in ads. D. eliminate headlines from ads. E. minimize white space in ads.

A. use illustrations in ads.

Who wrote the book Scientific Advertising? A. Francis Ayer B. Claude Hopkins C. Volney B. Palmer D. Albert Lasker E. N. W. Ayer

B. Claude Hopkins

_____ is a type of marketing used to slow down the demand for certain products, such as energy-consuming goods. A. Market segmentation B. Demarketing C. Environmental advertising D. Eco-marketing E. Cause marketing

B. Demarketing

Which of the following statements best describes how Volney B. Palmer influenced advertising? A. In 1729, he became the first to use "white space" and illustration in ads. B. In 1841, he set up the first professional advertising agency in the United States. C. In 1869, his advertising agency became the first to prepare ads for manufacturers. D. In 1888, he founded the Printer's Ink magazine. E. In 1912, he became the first advertising agent to reach $2 million in sales.

B. In 1841, he set up the first professional advertising agency in the United States.

Governments often use taxation and/or regulation to compensate for or eliminate the social cost when the sale or consumption of products may benefit or harm other people who are not involved in the transaction and did pay for the product. Which fundamental assumption of a market-driven society does this practice relate to? A. many buyers and sellers B. absence of externalities C. presence of opportunity costs D. self-interest E. complete information

B. absence of externalities

Which term best refers to items such as shampoo, lipstick, juice, and breakfast cereal? A. customized packaged goods B. consumer packaged goods C. in-house products D. branded products E. serviceable goods

B. consumer packaged goods

When Kobe buys a box of donuts and Julia purchases a copy of the New York Times, both are acting as A. sponsors. B. consumers. C. producers. D. testers. E. adopters.

B. consumers.

During the _____ age, manufacturers were principally concerned with production, and the primary burden of marketing fell on the wholesalers. A. preindustrial B. industrial C. golden D. postindustrial E. global interactive

B. industrial

Advertising reaches us through various channels of communication referred to as A. feedback. B. media. C. encoding tools. D. distribution methods. E. information processes.

B. media.

In the history of advertising, the _____ made possible the first advertising formats: posters, handbills, signs, and newspapers. A. quill pen B. printing press C. silk screen D. ability to mold lead E. ability to copy and draw

B. printing press

Which term refers to the distinctive benefits that make a product different than any other? A. perceptual value B. unique selling proposition C. economic differential D. economic advantage E. comparative advantage

B. unique selling proposition

To differentiate its candy from that produced by other candy manufacturers, the manufacturer of Green & Black brand confections advertises that it is the only company to make its chocolate organically. This commitment to market only organic chocolate is an example of a(n) A. perceptual value. B. unique selling proposition. C. economic differential. D. economic advantage. E. differential value.

B. unique selling proposition.

_____ is the structured and composed nonpersonal communication of information, usually paid for and usually persuasive in nature, about products by identified sponsors through various media. A. Marketing B. Sales promotion C. Advertising D. Feedback E. Message channeling

C. Advertising

____ has driven the growth of advertising since its earliest beginnings and has made it one of the hallmarks of the free enterprise system. A. Culture B. Ethics C. Economics D. Literacy E. Socialism

C. Economics

What role did the firm N. W. Ayers & Sons play in the history of U.S. advertising? A. It was the first printer to use illustrations in its ads. B. It was the first manufacturer to use national advertising. C. It was the first ad agency to charge a commission based on the "net cost of space." D. Its advertising claims were the first criticized by the Food & Drug Administration. E. It published the first colonial newspaper with advertisements for local businesses.

C. It was the first ad agency to charge a commission based on the "net cost of space."

Which of the following is an example of a good? A. a medical examination B. an Internet provider C. a copier D. a haircut E. a car warranty

C. a copier

What did the first newsaper ad advertise? A. a new edition of the Bible B. a piece of land C. a reward for stolen horses D. a religious service E. a traveler's inn

C. a reward for stolen horses

Which of the following is the best example of a service? A. a new suit of clothes B. a splint to treat a sports injury C. a seminar on how to plan for retirement D. popcorn sold at a school fund-raiser E. canned goods donated to a food pantry

C. a seminar on how to plan for retirement

During a drought in the southeastern United States, marketing campaigns were implemented to encourage consumers to use less water by increasing rates and issuing fines to those who used more than their fair share. A marketing effort such as this would best be classified as A. market segmentation. B. eco-marketing. C. demarketing. D. ethical marketing. E. cause marketing.

C. demarketing.

Which of the following words best describes advertising? A. free B. spontaneous C. persuasive D. unsponsored E. unemotional

C. persuasive

What type of strategy is being used by a website like www.CNNMoney.com when it describes itself as "a one-stop destination covering everything a small-business owner needs to know" in order to associate itself with benefits that are important to small business owners? A. market penetration B. target differentiation C. positioning D. market segmentation E. sales promotion

C. positioning

A _____ is an effective way to separate a particular brand from its competitors by associating that brand with a particular set of customer needs that rank high on the consumer's priority list. A. logistical strategy B. universal sales promotion C. positioning strategy D. market aggregation strategy E. promotional mix

C. positioning strategy

The term _____ best explains why most automobile manufacturers produce similar products yet consumers have preferences for specific brands. A. market segmentation B. market formatting C. product differentiation D. strategic marketing E. product segmentation

C. product differentiation

A decade after World War I ended, a significant event occurred that caused consumer sales resistance, corporate budget cutting, and reduced advertising expenditures. This event was A. the imposition of a personal income tax by the federal government. B. the defeat of Germany and its default on loans granted by the Allies. C. the stock market crash and the beginning of the Great Depression. D. the creation of the World Bank, which made loans available to state and federal banks. E. strong challenges to the consumer credit system as established by the federal government.

C. the stock market crash and the beginning of the Great Depression.

During the 1980s, many companies begin using more sales promotions because sale promotions A. took advantage of social media. B. reached a broader audience. C. were more cost effective. D. added value to brands. E. used celebrity endorsements to advantage.

C. were more cost effective.

Which of the following statements about word-of-mouth advertising is true? A. It is not a communication medium. B. It is not an advertising medium. C. It is a highly effective paid form of advertising. D. It is becoming an advertising medium because of social media. E. It has a structured form and generally predictable results.

D. It is becoming an advertising medium because of social media.

____ is a process by which marketers search for unique groups of people whose needs can be addressed through more specialized products. A. Product segmentation B. Targeted diversification C. Demarketing D. Market segmentation E. Market aggregation

D. Market segmentation

Which of the following statements demonstrates that people tend to act in their self-interest? A. The more information buyers and sellers have, the more efficient the competition. B. A wide variety of sellers encourages market-responsive products. C. A wide variety of buyers helps sellers find customers. D. People always want more—for less. E. Externalities are social costs.

D. People always want more—for less.

Which of the following occurred near the end of the nineteenth century and accelerated the usage of print ads by manufacturers? A. World War I finally ended. B. Global advertising agencies formed. C. Newspaper advertisements decreased in cost. D. The United States reached a 90 percent literacy rate. E. English was established as the official language of the United States.

D. The United States reached a 90 percent literacy rate.

National Park officials are concerned that the growing numbers of visitors to the national park system of the United States pose a threat to the very national wonders they want to see. If the park officials decided to try to decrease the number of visitors to the park, they could most likely use _____ to accomplish this objective. A. positioning B. eco-marketing C. market segmentation D. demarketing E. relationship marketing

D. demarketing

With respect to the evolution of advertising in the United States, the _____ age started at the end of World War II and lasted until about 1979. A. preindustrial B. postindustrial C. industrial D. golden E. global interactive

D. golden

As a marketing tool, advertising is primarily used to A. create unfair advantages among competitors. B. encourage buyers to compare prices. C. control viral commercialization. D. increase product use. E. create feedback.

D. increase product use.

A Quinceañera is a celebratory rite of passage for Latino girls when they turn fifteen. In the United States, some teen-oriented magazines such as Seventeen have begun including articles and publishing special guides focused on the Quinceañera. This is an example of a _____ strategy. A. product segmentation B. targeted diversification C. demarketing D. market segmentation E. market aggregation

D. market segmentation

Of all the business functions, _____ is the only function whose primary role is to bring in revenue. A. finance B. operations management C. human resource management D. marketing E. accounting

D. marketing

The Cold War ended with the collapse of the Soviet Union, and Western companies and financiers began to invest heavily in what were once called the Warsaw Pact countries. Big multinational companies and their advertising agencies went on a binge, buying other big companies and adding a new term for this process to the financial lexicon. This term was A. partnering. B. capitalism. C. oligopoly. D. megamerger. E. gigantism.

D. megamerger.

Which of the following terms is used for the availability of cable networks devoted to food, home repair, golf, history, or animals? A. mass marketing B. two-way media C. relationship marketing D. narrowcasting E. broadcasting

D. narrowcasting

When Subway uses the slogan "Eat fresh" to appeal to consumers who want healthier fast food, it is using the strategy of A. market segmentation. B. me-too product features. C. me-too images. D. positioning. E. puffery.

D. positioning.

The _____ age, which began around 1980, started a period of cataclysmic change. A. industrial B. preindustrial C. golden D. postindustrial E. global interactive

D. postindustrial

Which of the following is the largest advertising medium in terms of advertising revenues? A. Internet B. newspapers C. magazines D. television E. radio

D. television

The preindustrial age extended from the beginning of recorded history to the first decades of the twentieth century

F

Which of the following would most likely be considered a Public Service Announcement (PSA)? A. Dell recalling laptops to correct manufacturing defects B. Verizon promoting a new data plan with unlimited texting C. Walmart advertising year-end discounts and clearance items D. the American Red Cross promoting blood donation opportunities E. a local Chevrolet dealer providing the address of its new showroom

D. the American Red Cross promoting blood donation opportunities

Two related economic factors characterized the marketing world of the late 1980s and early 1990s in the United States. One of those factors was A. an aging upper management that led to a lack of innovation. B. a growing burden of debt, which forced governments to increase business taxes. C. the implementation of affirmative action policies. D. the aging of traditional products and a corresponding growth of competition. E. the development of strong consumer trust.

D. the aging of traditional products and a corresponding growth of competition.

_____ is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. A. Management B. Advertising C. Production D. Logistics E. Marketing

E. Marketing

Why is 1896 considered an extremely important year for direct mail advertising and mail-order selling? A. Advertising agencies were allowed to charge commissions for their services. B. The U.S. Post Office was created. C. The Office of Consumer Affairs guaranteed that consumers could return products that did not meet their needs. D. The Federal Communications Commission took control of all mail order and direct mail advertising. E. The federal government inaugurated rural free mail delivery.

E. The federal government inaugurated rural free mail delivery.

The term integrated marketing communications means A. developing a long-term marketing strategy. B. communicating marketing information to a target audience. C. linking the sales and communication departments in a firm. D. training a sales force to use proper marketing skills. E. coordinating a firm's brand messages from a variety of sources.

E. coordinating a firm's brand messages from a variety of sources.

73. In 2005, Comcast created AZN, a television network for Asian Americans. What type of strategy did Comcast use when it found this unique group of consumers whose specific needs were not being addressed by a cable station? A. positioning B. demarketing C. product differentiation D. market aggregation E. market segmentation

E. market segmentation

The period in the evolution of advertising that extended from the beginning of recorded history to roughly the start of the nineteenth century was called the A. sales era. B. positioning age. C. industrial age. D. industrializing age. E. preindustrial age.

E. preindustrial age.

Since advertising is typically directed to groups of people rather than to individuals, advertising is defined as a A. public service announcement. B. subtle medium. C. sponsor-driven strategy. D. market segmentation strategy. E. type of nonpersonal communication.

E. type of nonpersonal communication.

A firms advertising strategy will help determine who the targets of advertising should be, in what markets the advertising should appear, and what goals the advertising should accomplish

F

Athletic shoes, crystal goblets, and manicures are all examples of goods

F

Benjamin Franklin opposed the use of advertising

F

Demarketing which was popular in the industrial age is no longer used today

F

For Americans, the profession of advertising began when Francis Ayer formed an ad agency in Philadelphia is 1869

F

In 1914, Congress passed the Federal Trade Commission Act to protect the public health and control drug advertising

F

Only the internet provides advertisers with the ability to engage in narrowcasting

F

Our economy is based on the concept of perfect competition.

F

Product differentiation is a strategy used to identify groups of people or organizations with certain shared needs and characteristics

F

The golden age of advertising ended shortly after WW2

F

The term "mass media" includes print media only. The other media are part of general media

F

The ultimate goal of the marketing process is to build a strong brand image

F

A products USP is the feature that differentiates it from competitive products

T

Advertising is just one type of marketing communications tool

T

As a social force, advertising has been a major factor in improving the standard of living in the United States

T

During the industrial age, manufactures were primarily concerned with production rather than marketing

T

Integrated Marketing Communications involves the coordination of brand messages from multiple sources including PR activities, sponsorship commitments, personal selling, advertising, and digital media

T

One of the basic functions of advertising is to communicate information about the product, its features, and its location of sale

T

One of the functions of advertising as a marketing tool is to build value, brand preference, and loyalty

T

Popeyes Louisiana Kitchen, a fast-food restaurant chain, used a positioning strategy when it adopted the slogan "Louisiana Fast"

T

Sales promotion is more cost-effective marketing communication tool than advertising

T

The billboard that displays an advertisement for a new Internet service provider is an example of a medium.

T

Wheaties breakfast cereal is using product differentiation when it calls itself the "breakfast of champions"

T

With the establishment of public schooling, the United States reached an unparalleled 90% literacy rate

T