MAR3025 Chapter 9

10. Which of the following statement is NOT true about direct advertising? a) Direct advertising is about one third of all advertising, as measured by expenditure b) In simple terms, direct marketing is marketing that produces an immediate recorded response from consumers c) The Direct Marketing Association helps companies involved in direct marketing standardize their practices and have a collective voice in dealing with legislation directed at protecting consumers' privacy d) None of the above

a) Direct advertising is about one third of all advertising, as measured by expenditure

6. Which of the following statements is true about Internet advertising? a) Internet advertising can be fine-tuned and improved in a few days of testing in ways that no TV or other mass media advertising can b) The art of Internet advertising is to select the right companies c) Every company shouldn't have a Yellow Pages campaign, but should have Google advertising campaign and invest in a high quality website d) Both A and C e) All of the above

a) Internet advertising can be fine-tuned and improved in a few days of testing in ways that no TV or other mass media advertising can

2. The huge success of blog and social network sites on the Internet has become a powerful new source of publicity and WOM, particularly among which age group? a) People under 30 b) People between 31-40 c) People between 41-50 d) All age groups

a) People under 30

2. Which of the following activities comes second in the direct marketing process? a) Record is added to database b) Customer is assigned to a product, channel or profitability segment c) Most appealing direct marketing campaign is designed to promote most appealing products and services to each individual customer

a) Record is added to database

9. Direct marketing has become popular mainly because of: a) The availability of computer hardware and software to undertake data mining and list Creation, thereby enhancing contact efficiency b) Time pressures on consumers c) The increased use of 800-numbers and Internet shopping, which allow easy ordering d) An explosion in the issuance and use of credit cards, thus facilitating purchases by phone

a) The availability of computer hardware and software to undertake data mining and list Creation, thereby enhancing contact efficiency

3. As attention-grabbing advertising devices continually advance on the supply side, the sensory-system adaptation of buyers and their ability to screen out advertising continually advance on the demand side. a) True b) False

a) True

5. Answers to "How believable are ads?" scored _____ out of 9 in the 1950s and_______ out of 9 in the 1970s? a) Under 3, around 8 b) Around 8, under 3, c) Neither of the above

b) Around 8, under 3,

8. Which advertising model assumes thoughtful decision-making? a) LFB b) BFL c) FBL d) Both A and B e) All of the above

b) BFL

10. What type of advertising persuasion is the basis for the advertising message theme "Try me"? a) LFB messages b) BFL messages c) FBL messages

b) BFL messages

7. The growth potential for direct marketing is limited: a) Very much by the type of merchandise b) By the type of people who patronize direct marketers c) By the price of the product d) Both B and C e) A, B, and C

b) By the type of people who patronize direct marketers

4. Corporate advertising has been: a) Proven to work b) Controversial and unproven to work c) Well accepted by consumers d) None of the above

b) Controversial and unproven to work

3. Which of the following activities comes third in the direct marketing process? a) Customer is assigned to a product, channel or profitability segment b) Database elements are specified, including shopping behavior history c) Most appealing direct marketing campaign is designed to promote most appealing products and services to each individual customer

b) Database elements are specified, including shopping behavior history

5. Which of the following activities comes fifth in the direct marketing process? a) Database is updated, recording response to the campaign b) Database is built up through the use of billing statements, warranty cards and sweepstake information c) Customer is assigned to a product, channel or profitability segment

b) Database is built up through the use of billing statements, warranty cards and sweepstake information

6. Advertising in the new media such as the Internet is trusted ________ television, newspaper, magazine, radio and billboard advertising. a) Less than b) About the same as c) More than 7. Which of the following advertising functions is a hierarchy-of-effects model of advertising effect because consumer learning about the product leads to belief changes, which lead to changes in feelings (attitude) toward the product, which lead to buying the product? a) BFL b) LFB c) FBL

b) LFB

7. Which of the following do magazines sometimes use to try to cheat advertisers? a) Magazines sometimes try to cheat advertisers by claiming more sales and a larger circulation than they actually have b) Magazines sometimes try to cheat advertisers by claiming less sales and a smaller circulation than they actually have c) Magazines never try to cheat advertisers

b) Magazines sometimes try to cheat advertisers by claiming less sales and a smaller circulation than they actually have

8. Which of the following does television sometimes use to try to cheat advertisers? a) Television networks sometimes cheat by offering the most popular programs during ratings weeks, thus boosting audience size b) Television networks sometimes cheat by offering celebrity-loaded programs during ratings weeks, thus boosting audience size c) Television networks sometimes cheat by offering financial incentives during ratings weeks, thus boosting audience size d) None of the above

b) Television networks sometimes cheat by offering celebrity-loaded programs during ratings weeks, thus boosting audience size

12. Whose responsibility is it to put together a creative brief that describes the target market, product competitive positioning, quality-added claims and sales increase goals? a) An ad agency b) The company c) Both A and B

b) The company

1. Which of the following activities comes first in the direct marketing process? a) Most appealing direct marketing campaign is designed to promote most appealing products and services to each individual customer b) The database is built up through use of billing statements, warranty cards and sweepstakes information c) Record is added to database

b) The database is built up through use of billing statements, warranty cards and sweepstakes information

3. A number of researchers have argued that having ________________ exposures within a purchase cycle (time between purchases) is optimal. a) Two exposures b) Three exposures c) Four exposures d) Five exposures e) It is irrelevant

b) Three exposures

5. Regarding sponsorship advertising: a) It has decreased its share of advertising expenditure over the last 20 years, according to IEG Inc. of Chicago b) Your target segments attend the event and some of the event halo attaches to your product or service c) It has a relatively expensive reach and frequency d) The attention level of the audience is low for ads placed in or around the actual event e) None of the above Form follows function

b) Your target segments attend the event and some of the event halo attaches to your product or service

4. The disadvantage of publicity is: a) The lack of control of whether you get the coverage or not b) It is often an all-or-nothing proposition c) Both A and B d) None of the above

c) Both A and B

6. When choosing a list for direct marketing, which criteria are often considered to be critical? a) How old the list is b) The amount of money spent on direct buying by each individual on a list c) Both A and B d) None of the above

c) Both A and B

2. How are media costs generally measured? a) Costs for every media used for advertisements b) Cost-per-hundred of delivered audience c) Cost-per-thousand of delivered audience (CPM) d) None of the above

c) Cost-per-thousand of delivered audience (CPM)

4. Which of the following activities comes fourth in the direct marketing process? a) Database is updated, recording response to the campaign b) Most appealing direct marketing campaign is designed to promote most appealing products and services to each individual customer c) Customer is assigned to a product, channel, or profitability segment

c) Customer is assigned to a product, channel, or profitability segment

9. Romantic fragrance ads are an example of which advertising model? a) LFB b) BFL c) FBL d) Both A and C e) All of the above

c) FBL

1. Regarding the expression "Keep the message simple," which is true? a) It is not an advertising principle b) It is an advertising principle that is followed by most advertising campaigns c) It is an advertising principle that is violated by most advertising campaigns d) None of the above

c) It is an advertising principle that is violated by most advertising campaigns

4. Regarding POP advertising: a) It is often much less cost effective (per thousand target shopper exposures) than any other media b) The advertising exposure often occurs only moments before purchase, so it is less timely than any other advertising c) It is the first priority in advertising placement d) POP end-of-aisle displays are also very effective promotion devices and such displays are much less expensive than placing shelf-talkers on the regular product display shelves

c) It is the first priority in advertising placement

9. Which of the following statements is appropriate to describe pay-per-click advertising fraud? a) Click numbers are being inflated by unknown cheaters acting in their own interests b) Click numbers are hard to count c) It is when a Google partner pays others to click, thus creating a flood of fraudulent clicks that the advertiser must pay for d) None of the above Form follows function

c) It is when a Google partner pays others to click, thus creating a flood of fraudulent clicks that the advertiser must pay for

11. What type of advertising persuasion is the basis for the advertising message theme "Have you got this problem? I have the solution"? a) BFL messages b) FBL messages c) LFB messages

c) LFB messages

4. The effective reach of a proposed media schedule is: a) The percentage of the target audience exposed to an ad the total number of times (frequency) that is judged necessary for the ad to be effective b) The percentage of the target audience exposed to an ad the maximum number of times (frequency) that is judged necessary for the ad to be effective c) The percentage of the target audience exposed to an ad the minimum number of times (frequency) that is judged necessary for the ad to be effective d) None of the above

c) The percentage of the target audience exposed to an ad the minimum number of times (frequency) that is judged necessary for the ad to be effective

7. The problem with Facebook's business model is? a) Increasing concern of regulators over privacy issues b) Increasing concern of its users over privacy issues c) Very low click-through rates d) It does not have problems

c) Very low click-through rates

7. About publicity: a) Publicity stories are often not reproduced or mentioned in a company's advertising because they may hurt the credibility of the story b) Several sources carrying the story cannot increase credibility c) You may get no coverage if no editor or major blog site is interested d) Extraordinary reach and frequency can be obtained in a long period of time

c) You may get no coverage if no editor or major blog site is interested

3. Media suitability depends on: a) The target market b) The basic message strategy c) The creative tactics used to execute the message strategy d) All of the above

d) All of the above

3. Which of the following is an advantage of publicity over advertising? a) Its creation of public interest b) Its word-of-mouth momentum c) Excitement that few advertising campaigns can match d) All of the above

d) All of the above

8. Direct marketing is facing the following issue(s): a) As with any high-growth industry, direct marketing has grown faster than the quality of its supporting systems b) Consumer response rate to direct marketing is falling c) The issue of privacy d) All of the above

d) All of the above

1. Regarding where to place your ads, which of the following statements is correct? a) By their very evident evolutionary success, the new mass communication technologies and advertising processes have increased the efficiency of markets b) Spending on television broadcast, cable and satellite advertising in the United States continues to grow from around $55 billion in 2002 to a projected $86 billion in 2009 and dominates all media advertising spending c) Spending on TV advertising can be argued to be a good allocation of shareholder's funds d) Both A and B e) A, B and C

d) Both A and B

1. An advantage of publicity over advertising is: a) Its greater credibility b) Its paid-for endorsement by media celebrities c) Its speed of coverage d) Both A and C e) A, B and C

d) Both A and C

5. The price per click is increasing as advertisers discover: a) The payoff they get from search advertising b) It is not worth it to allocate too much budget in Internet advertising any more c) It is more subjective to rapid improvement than the traditional mass media advertising process d) Both A and C

d) Both A and C

2. When consumers buy products, they are essentially saying that they trust the products to satisfy their needs. This trust can result from: a) The advertising of products b) Their past experiences with products c) The companies that make those products d) Both B and C

d) Both B and C

2. With each revolution in marketing communication, the entire media market is spurred on by the new competition to become: a) Less competitive b) More competitive c) More innovative d) Both B and C

d) Both B and C

6. How should small companies advertise? a) They should advertise in the same media channels as the large companies b) They should maintain a low level of advertising, often in a single medium c) They should use pulsed bursts of increased advertising timed around peak demand periods or special promotions d) Both B and C e) A, B and C

d) Both B and C

5. According to the article "More Weeks, Less Weight: The Shelf-Space Model of Advertising," what kind of products need to have constant advertising to maintain their share-of-voice, share-of-mind and market shares? a) High-involvement products that sell as much on their brand name as on their features and have short repurchase cycles b) High-involvement products that sell as much on their brand name as on their features and have long repurchase cycles c) Low-involvement products that sell as much on their brand name as on their features and have long repurchase cycles d) Low-involvement products that sell as much on their brand name as on their features and have short repurchase cycles

d) Low-involvement products that sell as much on their brand name as on their features and have short repurchase cycles

6. Regarding Buzz marketing, which of the following statements is true? a) Business Week has concluded that initiating and controlling publicity on the Internet is not as hard as generating publicity through traditional communication means b) Blog readers are as excited with advertising messages built into blogs as they are with advertising messages in traditional advertising c) Forrester Research estimates that about a quarter of adults read at least one blog each month, and the numbers are increasing d) None of these social sites are generating cash flows that come anywhere close to justifying the values Google, You Tube and NewsCorp are paid

d) None of these social sites are generating cash flows that come anywhere close to justifying the values Google, You Tube and NewsCorp are paid

1. Public relations is directed at: a) Employees b) Stakeholders c) Politicians d) Media commentators and the general public e) All of the above

e) All of the above

1. The productivity of advertising expenditure can be improved by one or more of the following approaches: a) Improving the way you find media that delivers the lowest cost-per thousand members of the target audience b) Achieving the most effective mix of ad reach and exposure frequency c) Improving the timing of the ad campaign d) Both A and B e) All of the above

e) All of the above

5. Which of the following statements is true about PR, as discussed in advertising module? a) PR is used to inoculate against past negative events b) In 2006, BP experienced a pipeline oil spill in Alaska and the extensive bad publicity this created totally swamped BP's previous environment-friendly c) The general public is addressed through corporate advertising d) Public relations is used to stabilize the share price of a company e) B, C and D

e) B, C and D

10. Marketers must decide whether to concentrate advertising seasonally or to give it greater continuity. A lot depends on: a) The consumer purchase cycle b) The nature of producer supply c) Whether selling seasons exist d) The price of the product e) Both A and C

e) Both A and C

3. Public relations (PR) is: a) The management function that evaluates public attitudes, identifies the policies and procedures of an organization with public disinterest, and executes a program of action and communication to earn public understanding and acceptance b) The management function that evaluates public attitudes, identifies the policies and procedures of an organization with the public interest, and executes a program of action and communication to earn public understanding and acceptance c) Is a conscious and targeted attempt to shape a company's image d) The content of PR programs should be kept consistent with the different targeted audience e) Both B and C

e) Both B and C

4. In which of the following countries is advertising much more effective? a) Canada b) Japan c) Russia d) China e) Both C and D

e) Both C and D

2. Which of the following is NOT one of the fundamental advertising principles? a) If you have something to say, advertise. If not, don't b) Keep your message simple and powerful; otherwise, it will be lost in the advertising clutter c) Communicate first with your existing customers to keep their business d) Communicate second with your hottest prospects e) None of the above

e) None of the above