Exam 1 Review

Most mass media advertising is directed at ____________. a. household consumers b. professionals c. members of business organizations d. members of a trade channel

a. household consumers

What is geodemographic segmentation? a. Identifying neighborhoods by zip code around the country that share common demographic characteristics. b. Positioning a new service in a new region. c. Expanding a brand into a new country in a region where it already operates. d. Creating multiple media markets to reach many global consumers.

a. Identifying neighborhoods by zip code around the country that share common demographic characteristics.

A major criterion to consider during segment selection is the ____, or the companies that are vying for that segment's business. a. competitive field b. business market c. ad clutter d. niche market

a. competitive field

_______ became the biggest word of the 1970s, a word that was integrated into the promotional themes of the decade. a. "Me" b. "Society" c. "We" d. "Modern"

a. "me"

The __________ outlines the responsibilities and social impact of advertising and promotes high ethical standards of honesty and decency. a. American Association of Advertising Agencies' Creative Code b. Advertising Substantiation Program c. Code Authority of the NAB d. Federal Communications Commission

a. American Association of Advertising Agencies' Creative Code

IBP is especially important in modern times because: a. traditional media networks are fragmenting with digital. b. marketing communication tools are becoming more distinct. c. traditional media networks are consolidating. d. marketing communication tools' lines are blurring.

a. Traditional media networks are fragmenting with digital.

The difference between integrated marketing communications and integrated brand promotions is that IMC emphasizes on communications while IBP focuses on the brand. a. True b. False

a. True

Scenario 4-3 The Lightning Rod is a fishing rod being introduced by Castaway Sports. At a preliminary meeting with its agency, the president of Castaway Sports mentions that the rod can improve casting distance for an average individual by more than 20 percent. The account executive asks if the president has data to support this, and the president says "Yes." The agency proceeds to produce a series of television spots featuring a well-known sports celebrity using the rod and rating it as excellent. The spots run on network television and trumpet the improved casting distance that the rod provides. The slogan of the spots is "Lightning Rod—The Finest Rod Ever Cast." After about a week, a competitor questions whether the rods really offer the improved performance Castaway Sports claims, and decides to file a complaint with the FTC. (Scenari o 4-3) In the commercial, a sports star is shown in a sailboat on a beautiful lake, sending a long cast into the water, then listing the excellent features of the Lightning Rod. It closes with this well-known celebrity happily reeling in a fish. To meet FTC standards for this type of endorsement, the celebrity must: a. actuall y use the Lightning Rod when fishing on his own. b. shar e 2 per cent of the expenses involved in the advertisement. c. b e considered an expert in the field of sport fishing. d. writ e the statements that he makes in the ad.

a. actually use the Lightning Rod when fishing on his own.

A social networking site could sell information regarding its users' online behavior to a soft drink manufacturing and advertising firm. This relates most to ___________. a. behavioral targeting b. phishing c. appropriation d. nonprofit marketing

a. behavioral targeting

Ben was preparing to host a graduation party for his friends and relatives when he suddenly realized that he did not have a grill for the barbeque his friends wanted. Having never purchased a grill before, he felt that he needed to shop carefully and take his friends' suggestions on which brand to buy. After visiting several stores and examining numerous models and brands, he settled on a Grillmate model that cost $240. (Scenari o 5-5) Ben mentions to another shopper at the store that low-quality grills are made with more cheap looking p arts and high-quality grills h ave better looking parts. This comment represents Ben's: a. beliefs. b. bran d attitude. c. habits. d. bran d loyalty.

a. beliefs

National firms started putting names on their products because: a. brands commanded a higher price than commodities. b. strict government regulations required them to do so. c. it would increase the economies of scale of their product. d. their incomes were protected by the principle of unlimited liability.

a. brands commanded a higher price than commodities.

Many ads are designed to create brand awareness, reinforce the benefits of using a brand, and create an image for a brand rather than asking consumers to purchase the brand immediately. This is known as: a. delayed response advertising. b. direct response advertising. c. selective demand stimulation. d. primary demand stimulation.

a. delayed response advertising.

Ads in the 1920s showed slices of life in a way that depicted: a. how consumers should have a good time. b. less visual ads than in the past. c. ads that were purely informational in nature. d. garish designs illustrating unrealistic situations.

a. how consumers should have a good time

Apple wants consumers to understand the need or want for the tablet category in general—namely why it is different than a phone or laptop. This is without mention of the iPad tablet brand; such strategy is known as a: a. primary demand stimulation. b. market supply tactic. c. secondary demand stimulation. d. hi-tech supply tactic.

a. primary demand stimulation

Which of the following modes of consumer decision-making involves low involvement and low experience? a. Habit or variety seeking b. Limited problem solving c. Extended problem solving d. Brand loyalty

b. Limited problem solving

A fast-food restaurant is attempting to position itself as the best choice when you're in a hurry because it serves customers within 100 seconds. To maintain internal consistency, the firm might take all of the following steps below, EXCEPT for which one? a. hiring more order-takers b. adding a gourmet condiment station with more flavors and sauce choices c. adding extra drive-up windows d. hanging up digital timers behind the counter

b. adding a gourmet condiment station with more flavors and sauce choices

Scenario 6-5 Madison State University has a reputation for having a powerful intercollegiate coed bowling team. Seating in the campus bowling alley only allows for 400 fans to attend their matches. Long lines for seats have formed in the past, with many fans leaving disappointed because they could not get a ticket. As a result, the school's administrators decided to institute a "priority seating" plan in which fans would be given access to advance tickets based on the following schedule: "Lanemaster Club" - $10,000 annual donation to the bowling program - guaranteed free box seats to any match (100 seats total) "Strike Club" - $1,000 annual donation to the bowling program - guaranteed free bleacher seats to any match (100 seats total) "Kingpin Club" - participants in local recreation bowling leagues - guaranteed bleacher seats for $10.00 to any match (100 seats total) "Alleycat Club" - students who have maintained a 3.9 GPA or better - guaranteed bleacher seats for $1.00 to any match (100 seats total) (Scenario 6-5) Based on the planned schedule described here, students who have maintained a 3.9 GPA would be described as one of the bowling teams: a. nonuser groups. b. target segments. c. diverse markets. d. positioning strategies

b. target segments.

The way a consumer interprets an ad is often fully compatible with the way the company wants consumers to see the ad. a. True b. False

b. False

Scenario 4-3 The Lightning Rod is a fishing rod being introduced by Castaway Sports. At a preliminary meeting with its agency, the president of Castaway Sports mentions that the rod can improve casting distance for an average individual by more than 20 percent. The account executive asks if the president has data to support this, and the president says "Yes." The agency proceeds to produce a series of television spots featuring a well-known sports celebrity using the rod and rating it as excellent. The spots run on network television and trumpet the improved casting distance that the rod provides. The slogan of the spots is "Lightning Rod—The Finest Rod Ever Cast." After about a week, a competitor questions whether the rods really offer the improved performance Castaway Sports claims, and decides to file a complaint with the FTC. (Scenario 4-3) The competitor who filed a complaint with the FTC also had the option of working with the media self-regulatory organization that evaluates ethical issues, the __________ which has the authority to review concerns over issues of truth, fairness, or good taste and makes recommendations based on its findings. a. Family Research Council b. NAB' s Code Authority c. Better Business Bureau d. Consumer Federation of America

b. NAB' s Code Authority

Scenario 4-4 Joe Rowan walked into Pederson Toyota one day and began looking at price stickers on Toyota Camrys. He was interested in that model because he had seen a number of television and magazine ads describing the car's features and reputation for reliability, and the fact that it displayed the slogan "The best car in the world" urged him to look at the cars. After closely examining the stickers, Joe noticed a line that said "Dealer Promotion Allowance—$125.00." Joe asked a salesperson what that meant. The salesman replied that it was a charge that helped the dealership pay for local advertising to encourage consumers to shop at that particular dealer. After further discussion, Joe learned that almost 5 percent of the cost of the vehicle comes from expenses for national and local advertising. (Scenari o 4-4) Joe saw a television ad that stated the Toyota Camry was "the world's best car for reliability." The use of such absolute superlatives in advertising is: a. unethica l but legal. b. a legal and quite common use of exaggeration. c. a n illegal use of advertising language. d. unfai r advertising but not deceptive advertising.

b. a legal and quite common use of exaggeration.

By the early 1900s, the "power of advertising" was based on the reality that consumers: a. like durable, reliable products with a no-frills advertising style. b. are willing to pay more money for brands. c. see advertising suspiciously that tempt them into excessive consumption. d. believe that branding was no longer the norm.

b. are willing to pay more money for brands.

Procter & Gamble, one of the world's largest spenders in advertising and branding, teamed up with Walmart and NBC to create a number of prime-time family movies produced by P&G Productions. The films were designed to lure consumers to buy P&G products at Walmart using original family movies and exclusive ad buys. This was not the first time the two major brands teamed up to push family oriented entertainment—in the late 1990s, both companies were launch members of the Association of National Advertisers' Alliance for Family Entertainment—the organization responsible for getting the WB's Gilmore Girlson air. The two have each found great success as a result of the movies, with each seeing an increase both in sales and brand favorability scores. Both companies have expressed strong interest in continuing their working partnership down the road, and as long as they continue to encounter favorable results, the relationship will likely remain a positive one. (Scenari o 3-4) A recent advancement makes the use of various forms of advertising more desirable because it allows the amount of ad exposure and impact to be directly measured, and allows companies such as P&G and Walmart to measure the success of their experimental methods. This advancement is in: a. subliminal advertising. b. interactive media. c. print media. d. broadcast media

b. interactive media

Stephen Fox, a history and social observer, concludes that the history of American advertisement has been: a. genuine and trustworthy. b. money-mad and hedonistic. c. simple and smart. d. irrelevant and incoherent

b. money-mad and hedonistic.

A(n) arises when a consumer's desired state of affairs is different from one's actual state of affairs. a. top-of-mind awareness b. need state c. evoked set d. consideration set

b. need state

In the early and mid-1800s, soaps were made from animal fats. The perishable quality of the soap, however, meant that manufacturers could only sell a product with regional appeal. This changed when soap makers began to use vegetable fats and perfume in the soap-making process. According to Procter & Gamble, one batch of this vegetable-based soap was left to mix too long. The result was a product that floated in water due to an excess amount of air. The company turned this into a selling point and, in 1882, launched one of the first soaps with the potential for national sales—Ivory soap—with the slogans "It floats" and "99-44/100 percent pure." (Scenario 3-1) One effect of the passage of the Pure Food and Drug Act of 1906 was that: a. advertising claims for products like Ivory soap became strictly regulated. b. the manufacturer of Ivory soap had to list its ingredients on the label. c. branded products like Ivory had to trademark their brand names. d. Ivory soap had to become hundred percent pure.

b. the manufacturer of Ivory soap had to list its ingredients on the label.

Olay lotion has always been a part of what Melinda does after the bath and she does not ever want to change this. What is this describing? a. A consumer who is not exposed to massive volumes of ads b. A consumer who misinterprets messages c. A consumer who is resistant to changing rituals d. A consumer who seeks variety

c. A consumer who is resistant to changing rituals

Which of the following is a difference between brand loyalty and a habit? a. Brand loyalty is not based on emotional connections, whereas habit is based on emotional connections. b. Unlike brand loyalty, habit is based on a conscious commitment to find the brand each time the consumer purchases from the category. c. Habit involves low involvement, whereas brand loyalty involves high involvement. d. Brand loyalty can be easily disrupted with skillful advertisement, whereas habit cannot be disrupted with advertisements.

c. Habit involves low involvement, whereas brand loyalty involves high involvement.

Location is most related to segmentation. a. competitive b. geographic c. demographic d. psychographic

c. demographic

Scenario 6-2 Sunshine Meals Inc. is a company that sells breakfast foods such as cereals, pancake mixes, etc. The company conducts a study to segment its consumers. It finds that segment A consists of a small group of individuals who purchase four boxes of the brand's cereal every week. The average user consumes one box every week. It targets segment A by providing them with samples of other Sunshine products with the purchase of one box. Segment B consists of a large number of college students and individuals who have recently begun living on their own, and require readymade mixes as their breakfast solution. It targets these consumers by providing more variety with pancakes and waffle mixes. Segment C consists of consumers who are not consistent buyers; targeting these consumers could prove a loss for the company. (Scenario 6-2) The consumers of segment A can be classified as . a. variety users b. fickle users c. heavy users d. competitive users

c. heavy users

The idea of involvement in the context of consumer decision-making refers to how: a. an individual's past experience with a product makes the person more aware about it. b. the consumer first heard about a product or brand. c. much importance accompanies the choice of a product. d. a person will use a product or service.

c. much importance accompanies the choice of a product.

The consumers termed ____ turn out to be a costly target segment; much can be spent in getting their business merely to have it disappear just as quickly as it was won. a. lead users b. heavy users c. switchers d. brand freaks

c. switchers

Which of the following is true of branded entertainment? a. It uses solely television programming to create entertainment. b. It is a subset of product placement. c. It blends advertising and integrated brand promotion with entertainment. d. It is also known as consumer-generated content

c. It blends advertising and integrated brand promotion with entertainment.

Who added to the fear and hysteria over advertising in the 1950s? a. Helen Resor and James Webb Young from the J. Walter Thompson advertising agency b. Heads of advertising agencies, Leo Burnett and David Ogilvy c. James Vicary's false claim about the effect of subliminal messages d. Bruce Barton and his book called The Man Nobody Knows

c. James Vicary's false claim about the effect of subliminal messages

Scenario 3-2 When referring to the period of advertising known as the creative revolution, advertising pundit and practioner Jerry Della Femina wrote, "Volkswagen was being handled in the United States by Fuller & Smith & Ross. Doyle Dane took over the account around 1959. One of the first ads that came out for Volkswagen was the first ad that anyone can remember when the new agency style came through with an entirely differnt look. The ad simply said, 'Lemon.' The copy for 'Lemon' said that once in a while we turn out a car that's a lemon, in which case we get rid of it. We don't sell them. And we are careful as hell with our cars, we test them before we sell them, so the chances are you'll never get one of your lemons "For the first time in history an advertiser said that he was capable, on rare occasions, of turning out an inferior product ... By today's standards, of course, this is pretty tame stuff." (Jerry Della Femina, From Those Wonderful Folks Who Gave You Pearl Harbor, [New York; Simon and Schulster, 1970], 26-27) (Scenario 3-2) Which one of the following is an accurate description of the era in which Bill Bernbach created the Volkswagen campaign? a. Radio was the only advertising medium available to advertisers. b. The ads were filled with wild and unsubstantiated claims. c. The focus was on clean and minimalist advertising. d. Advertising was motivated by the need to sell the vastly increased supply of goods.

c. The focus was on clean and minimalist advertising.

The _________ of the FTC was initiated in 1971 with the intention of ensuring that advertisers make supporting evidence for claims available to consumers. a. Wheeler-Lea Amendment b. Robinson-Patman Act c. advertising substantiation program d. Federal Communications Commission

c. advertising substantiation program

Advertising plays a key role in brand development and management. One way in which it does so is by communicating how a brand can fulfill needs and desires while also delivering a sense of personal connection for the consumer. This would best be described as: a. introducing new brands and brand extensions. b. providing information and performing persuasion. c. creating an image and meaning for the brand. d. building and maintaining brand loyalty among consumers

c. creating an image and meaning for the brand.

IBP is crucial to branding because the concept relies on: a. distinctness among the brand partners. b. synergy among the brand partners. c. synergy among the brand communications. d. distinctness among the brand communications.

c. synergy among the brand communications.

In the early and mid-1800s, soaps were made from animal fats. The perishable quality of the soap, however, meant that manufacturers could only sell a product with regional appeal. This changed when soap makers began to use vegetable fats and perfume in the soap-making process. According to Procter & Gamble, one batch of this vegetable-based soap was left to mix too long. The result was a product that floated in water due to an excess amount of air. The company turned this into a selling point and, in 1882, launched one of the first soaps with the potential for national sales—Ivory soap—with the slogans "It floats" and "99-44/100 percent pure." (Scenario 3-1) By 1900, shortly after Ivory soaps were originally branded. a. advertising was generally distrusted and looked at with suspicion b. the period was marked by the advent of dailies c. the branding of products became the norm d. the consumer culture was replaced by minimalist lifestyles

c. the branding of products became the norm.

What is the term that refers to the perception by consumers that a brand provides satisfaction beyond the cost incurred to obtain that brand? a. Social meaning b. Differentiation c. Value d. Symbolic value

c. value

Which system has identified many market segments based on zip codes and the personal characteristics of their residents, creating a well-known tool for geodemographic segmentation? a. SIC Codes b. VALS c. Thorson and Moore's model d. PRIZM

d. PRIZM

Which of the following is a similarity between habit and variety seeking? a. They both involve a high degree of brand loyalty. b. They involve a high degree of emotional connection to a brand. c. They refer to the tendency of consumers to continue using a brand for many years. d. They occur in settings where a decision isn't involving

d. They occur in settings where a decision isn't involving

Scenario 5-6 Voice-It Technologies produces inexpensive personal voice recording devices that serve as a substitute for message pads in the home or office. Their recording time is limited to 120 seconds, and the devices sell for less than $20. Voice-It's products are about the size of four credit cards stacked on top of one another and have a life of about a year. The slogan the firm uses on its packaging and advertising is "Don't Write It, Voice It!" (Scenari o 5-6) The management of Voice-It Technologies believes in retaining their customer base and provide customers at their stores attractive offers which will help create brand loyalty and repeat purchases. This is an example of . a. predecisiona l distortion b. cognitiv e dissonance c. limite d problem solving d. conversion

d. conversion

6. 1.00 7. 1.00 8. 1.00 9. 1.00 10. 1.00 Right Check My Work Scenario 5-5 Ben was preparing to host a graduation party for his friends and relatives when he suddenly realized that he did not have a grill for the barbeque his friends wanted. Having never purchased a grill before, he felt that he needed to shop carefully and take his friends' suggestions on which brand to buy. After visiting several stores and examining numerous models and brands, he settled on a Grillmate model that cost $240. (Scenari o 5-5) Ben asked his friends for suggestions on which brand of grill he should purchase. This is an example of: a. nee d recognition. b. to p of mind awareness. c. postpurchas e use. d. informatio n search

d. informatio n search

A brand's is a statement of the functional, emotional, and/or self-expressive benefits delivered by the brand. a. warranty b. universal product code c. memorandum of understanding d. value proposition

d. value proposition

In their "Campaign for Real Beauty," the people creating the Dove ads attempted to be realistic, show sensitivity, and fight stereotypes by featuring: a. endorsements by famous elderly actresses with young-looking skin. b. both men and women using Dove products. c. plus-size models who do not fit the narrow norm of beauty. d. women, who were not models, displaying various ethnicities, looks, and sizes.

d. women, who were not models, displaying various ethnicities, looks, and sizes.

General Mills has decided to make a concerted effort to attract those individuals who seek variety in their breakfast cereal consumption. They are most likely engaging in segmentation based upon what? a. Psychographics and lifestyles b. Demographics c. Geodemographics d. Usage patterns and commitment levels

d. Usage patterns and commitment levels

Scenario 4-5 Olive's, a fast food restaurant chain known for its quick meals, encountered an instance where a customer had blamed its food for his weight gain. Later in the same year, they launched an advertisement comparing its burgers with a close rival's, which were very similar. This ad was asked to be corrected by the court. However, a second advertisement depicting a supermodel eating its fries and an obese person eating the fries of its competitor's food chain was deemed unethical and was ordered by the court to be removed, although Olive's continued airing the ad. (Scenario 4-5) Olive's continued airing its advertisement despite being asked to remove it by court. As a result, they w ere asked by the court to remove the ad in 30 days. This is an example of . a. accommodation b. a consent order c. appropriation d. a cease-and-desist order

d. a cease-and-desist order

When Taco Bell introduced the quesalupa, it orchestrated a vast campaign including a $5 million Super Bowl commercial seen coast-to-coast, and regional television commercials supported by print advertising, in-store promotions, and a multipronged social media campaign with hashtags like #BiggerThanEverything. The goal of this was to: a. put the brand in the national spotlight. b. build anticipation for the new product. c. encourage purchasing. d. All of these are correct

d. all of these are correct.

Scenario 4-2 Purple Inc. has recently been sued for the following reasons. The CEO has stated in a radio broadcast that Purple Inc.'s sunglasses are better than its rivals and that its main competitor's glasses are nothing but cheap plastic. It has also published an article stating that its competitor's glasses are "fake" and "aren't good enough for the customer's dog, let alone a human." (Scenario 4-2) Purple Inc. launched an advertisement displaying an image of a model of its competitor's sunglasses. However, it had not received consent from the party to utilize the picture. This is an example of _____. a. puffery b. libel c. spamming d. appropriation

d. appropriation

According to the McCracken model of meaning transfer, meaning moves from the ______________ to the goods that consumers use through various institutions like the advertising and fashion system. a. consumer goods b. individual consumers c. institutions of meaning transfer d. culturally constituted world

d. culturally constituted world