MKTG 403: Chapter 19

Identify reasons an advertiser may refuse to impose unjustified influence over the media. (Check all that apply.)

It may be the best way to reach the target audience. It may be the most cost-effective media option available to the advertiser.

What is the impact of a barrier to entry on the market?

Less competition and higher prices

______ advertising faces criticism for breeding discontent among consumers.

Persuasive

Which of the following are true as a result of economies of scale in advertising? (Check all that apply.)

Small advertisers are at a disadvantage. Large advertisers are better able to pay for advertising on network television. New competitors are deterred from entering the market.

Identify a strategy that is used by large firms to create a barrier to entry in the market for smaller firms.

Spending huge sums of money on advertising

One of the strategies that large firms use to achieve differentiation is to ______.

advertise their products' superiority over others

True or false: In advertising, what one individual considers to be in bad taste or unethical may be acceptable to another individual.

True

Economists contend that when large firms with huge advertising budgets have a lot of power, it creates a(n) for new companies.

barrier to entry

Large advertisers can have larger advertising budgets because they ______.

have lower production costs

If media, such as newspapers, are not supported by advertising, media cost will ______.

increase by a high margin

Most print media are very concerned over ensuring that decisions on the writing, editing, and publishing of stories are made on ______.

journalistic merit

Critics of advertising view it as a detrimental force because it ______.

leads to industrial concentration and higher prices for consumers

A focus on material things rather than intellectual or spiritual concerns is known as .

materialism

Most of the criticism for ads being poor in taste has been reserved for ads using ______.

sexual appeals

Advertisers withdraw commercials from programs that hurt the sentiments of consumers because of ______.

the threat of these consumers boycotting their products

The belief that advertising equals market power reflects ______.

traditional economic thinking

A common characteristic of people who believe in the Protestant ethic is that they ______.

view accumulation of material possessions as evidence of success

Which of the following ads encourages materialism?

A car ad showing the protagonist's status in society increasing after buying a new car.

Identify a type of ad that is a cause for concern in children's advertising.

Ads featuring violent content

Identify an example of advertising used for promoting social causes.

Ads promoting a blood donation campaign

Increases in which of the following factors have been responsible for a larger number of independent female purchasers? (Check all that apply.)

Adult female workers Single-female households

Identify a principle that is part of the advertising ethics and principles of the American Advertising Federation.

Advertisers should distinguish advertising from news and editorial content.

Identify a critique about the effects of advertising on product costs and prices.

Advertising enables brands to command a premium price without an increase in the quality of their products.

According to the viewpoint "advertising equals market power," identify the economic effects of advertising on market conduct.

Advertising leads to higher prices and less competition.

Identify a practice that is part of the American Advertising Federation principles and practices for advertising ethics.

An ad creation team should be permitted to express internally its ethical concerns.

Identify an ad that can be termed ethical.

An ad featuring a brand ambassador describing price and product specifications

Identify an example of shock advertising.

An ad featuring a provocative image to gain attention

Identify an example of an ad that is untruthful or deceptive.

An ad for alcoholic beverages making unsupported claims of health benefits

Identify a type of advertisement typically perceived as distasteful.

An ad for personal hygiene products

Identify the ad that is racially integrative and not stereotypical of ethnic minorities.

An ad suggesting interracial attraction

Which of the following would be the least stereotypical depiction of women in advertisements?

As working professionals

Which of the following statements is true concerning how advertising affects consumer choice?

Heavily advertised brands dominate the market in many product categories.

Identify a true statement about the effect of advertising on competition.

High amounts of advertising are not always found in industries where firms have a large market share.

Which features of the new economics of the publishing industry are making it difficult for print media to maintain the separation of the advertising and editorial departments?

Increasing competition from the Internet

Identify a reason why advertisers have begun to recognize the importance of portraying women realistically.

There is a rise in the number of women who are working.

Why are companies giving more attention to multicultural marketing?

There is an increase in the purchasing power of ethnic minorities.

What reason do advertising experts use to explain the increase in the use of shock advertising?

There is more pressure on marketers to do whatever it takes to get their ads noticed.

The belief that advertising equals market power considers advertising as a method to ______.

build brand loyalty

helps present the products or services of large advertisers as being distinctive or better in comparison to competitors' products or services.

differentiation

Through advertising, large advertisers can command higher prices for their products by ______.

increasing product differentiation

People who support children's involvement in the consumer socialization process contend that ______.

marketplace knowledge provides teens a foundation for evaluating ads

Promoting ______, according to critics, has an adverse effect on consumer values.

materialism

One of the common criticisms of advertising is that the information delivered to consumers ______.

may not be enough to make an informed choice

A large firm spends large amounts of money on advertising and promotion, which allows it to make large media buys at cheaper prices for its various products. This enables the firm to enjoy a competitive advantage that is referred to as ______.

economies of scale

Many magazine and newspaper publishers separate their ______ departments to help maintain independence and credibility.

editorial and advertising

Ads for products such as deodorants, mouthwash, and dandruff shampoos are often criticized for ______.

exploiting consumer anxieties

The role of advertising in ______ the media has led to concerns that advertisers may influence or even control the media.

financing

Identify a point that Shelby Hunt observed in examining information-persuasion dichotomy.

Informative advertising is often very persuasive.

Identify a true statement about the report of the American Psychological Association on advertising targeted to children.

It called for new restrictions on marketing aimed at children.

Which of the following statements about ethics in advertising are true? (Check all that apply.)

Marketers must often make decisions about responsible actions based on ethics. Moral guidelines that regulate the acts and decisions of advertisers are referred to as ethics. Certain kinds of target marketing may be considered unethical although they are legal.

The great brands campaign by the American Advertising Federation was targeted at ______.

corporate executives responsible for handling advertising budgets

A company creates an ad for a contest with a promise of providing prizes to winners although it has no intention of following up on these promises. This type of advertising can be classified as ______.

deceptive advertising

The theme of the campaign, "Advertising. The way great brands get to be great brands," cautions corporate executives ______.

not to neglect their brand development

Shock advertising is advertising that is _____.

often seen as in bad taste

Advertisers avoid many of the regulations designed to protect children by advertising ______ instead of traditional media.

on the Internet

In response to criticism of marketing aimed at children, marketing and advertising trade groups defend their right to advertise on the basis that ______.

parents of younger children make the purchase decisions themselves

Although information advertising reports objective criteria, persuasive advertising ______.

plays on consumers' emotions

Most magazine and newspaper publishers insist on separation of the editorial and advertising departments because it ______.

prevents advertiser pressure from influencing the editorial content

A common criticism of persuasive advertising is that it makes consumers buy ______.

products they do not need

The emphasizes the importance of working hard, making an effort, and taking initiative. It also views the accretion of material wealth as proof of success.

protestant ethic

In order to effectively use their cognitive defenses against advertising, children must ______.

realize how advertising works

The media can help maintain their independence from individual advertisers by ______.

retaining public confidence and building a large audience

The use of arousing images, such as those depicting nudity or sexual suggestiveness, in advertising to grab the attention of consumers is commonly referred to as advertising.

shock

Campaigns for ______ are often developed by advertising agencies for free.

social causes

The process by which children gain the skills required to operate in the marketplace is known as the consumer process.

socialization

Persuasive advertising is criticized for encouraging consumers to buy goods and services in an attempt to ______.

solve deeper problems

A major contributor to materialism is advertising that ______.

suggests that a product is a symbol of status and success

The status of advertising as a powerful institution depends heavily on whether ______.

consumers have faith in ads

According to the "advertising equals information" perspective, what is the impact of advertising on consumers?

Advertising causes consumers to become more price sensitive.

Proponents of advertising would claim which of the following? (Check all that apply.)

Advertising has much less power than critics claim. Consumers ignore ads for products and services they don't think will benefit them. Consumers have the choice whether to purchase something or not.

Identify a factor that supports the claim that advertising helps lower the overall cost of a product.

Advertising helps firms attain economies of scale in production.

Identify the view that is true of the "advertising equals information" school of thought.

Advertising informs consumers about product attributes.

Identify a true statement about the economic effects of advertising.

Advertising leads to economies of scale, causing prices to go down.

Which among the following are more susceptible to letting advertisers dictate editorial decisions? (Check all that apply.)

Chain-owned newspapers Small newspapers

Identify an argument in favor of the use of puffery in advertising messages.

Consumers cannot be persuaded against their will.

Identify a defense that proponents of advertising offer against the charge that advertising makes people buy things they do not really need.

Consumers have the ability to defend themselves against persuasive advertising.

Which of the following product categories are most criticized for portraying women as sex objects in their ads? (Check all that apply.)

Cosmetics Lingerie

True or false: Advertising by itself reduces competition, creates barriers to entry, and thus increases market concentration.

False

True or false: Advertising has the effect of restricting product innovation.

False

True or false: Media executives note that a medium with a large audience needs advertisers more than advertisers need the medium.

False

Identify a portrayal indicating gender stereotyping in advertising targeted to children.

Girls shown performing passive indoor activities

When a company introduces a successful new product, what should a competitor offering a similar product attempt to achieve through advertising? (Check all that apply.)

Inform consumers about its brand Convince consumers that its brand is superior to the original brand

What is the issue associated with government-supported media as an alternative to media supported by advertising?

The freedom of the press is not maintained in government-supported media.

Identify a point that best supports the claim by media executives that advertisers do not exert undue influence over the media.

The media do not avoid controversial issues and news in their attempt to be objective.

What is one argument critics use against the practice of shock advertising?

The more shock advertising is used, the more shocking the ads will have to become to get attention.

Identify a true statement about the ability of children to understand advertising.

The motives of persuasive advertising cannot be critically evaluated by children.

Identify an example of stereotypical gender portrayal in American television and print advertising in the past.

Women as passive and men as powerful

Flex It Inc., a firm that manufactures LED billboards and hoardings, is the first choice for most advertising agencies across the United States. The firm's penchant for innovation in delivering valuable and cost-effective products has supported its advertising that portrays the company's products as better than competitors' products. This scenario best illustrates ______.

brand loyalty

The media's avoidance of certain topics in acquiescence to advertiser demands is known as economic .

censorship