MKT 3305 Test 3 (CH 16-22)

Alex works as a journalist at a news agency. Alex states that the organization's structure involves what media people refer to as "The Wall." Which of the following statements supports his claim? a. Alex has no choice over the topics to be covered and has to adhere to what is assigned to him. b. Alex is allowed to contact only those external sources that have been predetermined by the senior editor. c. Alex has no contact with the members of the advertising and circulation departments. d. Alex is allowed to report only those articles that are approved by the senior editor. e. Alex has the power to write articles based on his interaction with the sponsors of the newspaper.

c. Alex has no contact with the members of the advertising and circulation departments.

Which of the following statements is true of the Children's Advertising Review Unit (CARU)? a. CARU's Self-Regulatory Guidelines for Children's Advertising are restricted to truthfulness and accuracy to address children's developing cognitive abilities. b. CARU discourages advertising and marketing in the electronic retailing industry that contains unsubstantiated claims. c. CARU recognizes that the special nature and needs of a youthful audience require particular care and diligence on the part of advertisers. d. CARU's activities include the review and evaluation of child-directed advertising in broadcast media exclusively. e. The majority of claims reviewed under the CARU program are for direct-response TV ads including long- and short-form infomercials aimed at children.

c. CARU recognizes that the special nature and needs of a youthful audience require particular care and diligence on the part of advertisers.

Which of the following statements is true of the essentials of effective testing? a. posttests are more cost effective than pretests b. marketing objectives established for a promotional program are good measures of communication effectiveness c. attainment of communications objectives leads to the accomplishment of marketing objectives d. effective testing occurs only when either pretests or posttests are used e. for a true assessment of advertising effectiveness, only one measure is required—perhaps sales, recall, or recognition

c. attainment of communications objectives leads to the accomplishment of marketing objectives

Which of the following attributes would be reported in persuasive advertising rather than information advertising? a. warranty period offered b. details of price c. attractiveness of the brand d. product specifications e. performance parameters

c. attractiveness of the brand

U.S. corporations defend against foreign inroads into the domestic market as well as learn how to market their products and services to other countries in order to a. build a strong social infrastructure. b. build a strong, self-sufficient national economy. c. be part of an interdependent global economy. d. enable mergers and acquisitions within the United States. e. be recognized as a world power.

c. be part of an interdependent global economy.

Beauty Care's 2-oz. bottle of sunscreen lotion is priced at $3. However, while at the supermarket, Emma found that Beauty Care was offering a 5-oz. bottle at the same price, so she bought two. Which type of promotional method was Beauty Care using? a. free premium b. bounce-back coupon c. bonus pack d. price-off deal e. sweepstakes

c. bonus pack

The marketing team of Ben & Jen, a leading global fashion brand, has just started working on its new ad. It is in the stage of preparing a positioning statement for its new winter collection. However, it wants to ascertain the opinion of certain experts about the layout and other basic elements of the ad. In other words, it wants to undertake a. posttests b. market targeting c. concept testing d. test marketing e. laboratory tests

c. concept testing

Which of the following is classified as a pretest laboratory method for conducting research to measure advertising effectiveness? a. single-source systems b. on-air tests c. consumer juries d. dummy advertising vehicles e. tracking studies

c. consumer juries

Lin, a student, is of the opinion that German beer is superior to American beer. He believes that Germans' knowledge of beer and the quality of the ingredients used by German alcohol manufacturers are better than that of their American counterparts. This scenario is an example of the ________ effect. a. halo b. vehicle option source c. country-of-origin d. primacy e. recency

c. country-of-origin

Income levels and employment rates of a country's population are determinants of its ________ environment. a. legal b. social c. demographic d. cultural e. psychographic

c. demographic

Which of the following is a reason for the increase in the importance of sales promotion? a. decrease in emphasis on accountability b. long-term focus of marketers c. fragmentation of consumer market d. reduction in the number of brands e. increase in consumer brand loyalty

c. fragmentation of consumer market

Cheery Inc. offers a free toy inside every $1 pack of Cheery Creamy Chips. Which promotional method is the company using in this scenario? a. sweepstakes b. self-liquidating premium c. free premium d. cross-ruff coupon e. in-package sampling

c. free premium

Most companies prepare annual reports to a. maintain goodwill with their employees b. use it as a contract between a firm and its suppliers c. generate more investments d. induce customers to try the product e. prove that they are socially conscious

c. generate more investments

Which of the following is an argument for measuring the effectiveness of a promotional program? a. cost of measurement b. isolating single variables c. increased efficiency d. time required

c. increased efficiency

In response to the criticism that advertising makes people buy things they don't need, Shelby Hunt examined the ________ and pointed out that advertising that most observers would categorize as very informative is often very persuasive. a. freedom of information dichotomy b. beauty pre-occupation hypothesis c. information-persuasion dichotomy d. materialism tenet e. Maslow's hierarchy of needs

c. information-persuasion dichotomy

Which sales promotion technique is also known as a frequency program? a. self-liquidating premium b. price-off deal c. loyalty program d. event sponsorship program e. sweepstake

c. loyalty program

An important function in an IMC program may include public relations for corporate image advertising or publicity management. Public relations is designed to promote the organization as well as products and services; it is less philanthropic and more a. brand oriented b. nonprofit oriented c. marketing oriented d. charitable oriented e. advertising oriented

c. marketing oriented

Which of the following statements is true of PR and publicity? a. public relations typically generates negative attitudes toward a company. b. publicity and public relations are synonymous. c. publicity is a short-term strategy, unlike public relations. d. publicity, unlike public relations, is always under the control of the organization. e. public relations is a subset of publicity.

c. publicity is a short-term strategy, unlike public relations.

Which of the following activities are involved in consumer-oriented sales promotions? a. sales training programs b. point-of-purchase displays c. refunds and rebates d. cooperative advertising e. trade allowances

c. refunds and rebates

The Network Advertising Initiative (NAI) is a(n) a. industry-wide code that prohibits telemarketing calls after midnight and before 6 a.m. b. tobacco-industry group that wants to modify regulations against advertising of its products. c. self-regulatory code developed by companies that collect Internet usage data. d. advisory board for the National Advertising Division. e. industry-developed code to monitor advertising to children.

c. self-regulatory code developed by companies that collect Internet usage data.

One school of thought, "advertising equals information," suggests advertising has which of the following effects on industry structure and market power? a. Advertising creates needs for customers. b. Advertising affects consumer preferences and tastes. c. Advertisements help firms establish strong brand loyalty. d. Consumers can compare competitive offerings easily and competitive rivalry increases. e. Firms are insulated from market competition due to advertising.

d. Consumers can compare competitive offerings easily and competitive rivalry increases.

After finishing lunch at a local cafe, Clara used her smartphone to get a discount on the bill. She is most likely using a. a free premium b. a self-liquidating premium c. an instant coupon d. a mobile coupon e. a freestanding insert.

d. a mobile coupon

A decentralized organizational structure must be used for international advertising when a. market and media conditions are similar in most countries. b. a company desires a consistent image worldwide. c. a company's international business is large. d. advertising must be tailored to the local market. e. a company wants to protect its foreign investments and keep control of the marketing effort.

d. advertising must be tailored to the local market.

When a brand enters the ___ stage of the product life cycle, most of the promotional support will probably be removed and expenditures on sales promotion are unlikely. a. introduction b. growth c. development d. decline e. maturity

d. decline

Which of the following is a major factor in the globalization of markets? a. decreased competition in domestic markets b. decrease in governmental decentralization c. increase in the world's literacy rates d. development of faster communication e. rapid population growth

d. development of faster communication

Which of the following is an advantage of couponing? a. low costs b. high redemption rates c. fraud-free and easy to manage d. induces repeat purchases e. immediate response

d. induces repeat purchases

Whiz Soda tasked its marketing manager Ted with obtaining information about the popularity of Whiz Soda's new ad among teenagers in the United States. Ted used market surveys and interviews to obtain the relevant information. In this scenario, Ted was involved in a. market segmentation b. target marketing c. test marketing d. posttesting of the ad e. on-air testing

d. posttesting of the ad

Which type of promotion has grown substantially within IMC, although ways to measure its effectiveness are not always agreed upon by experts in the field? a. radio advertisements b. contests c. coupons d. sponsorships e. parking lot ads

d. sponsorships

No commercial can run without approval from a network's ________ department. a. Better Business Bureau b. Food and Drug Administration c. Children's Advertising Review Unit d. National Review Board e. Standards and Practices

e. Standards and Practices

Mars Inc. includes the disclaimer "Warning! This product has not been pasteurized and must be used with caution" on all its juice products. This inclusion is an example of a. consent orders b. advertising substantiation c. deceptive advertising d. puffery e. affirmative disclosures

e. affirmative disclosures

Gareth's Grill, a global fast-food chain, does not offer beef burgers in India, while it offers only kosher foods in Israel. The company has considered religious differences and attitudes while making these decisions. In this scenario, the company is taking into account each market's ________ variables. a. technological b. demographic c. economic d. legal e. cultural

e. cultural

A large, well-known company influences a newspaper to publish articles that favor the use of its sugar-free products. This behavior is an example of ________. a. stereotyping b. shock advertising c. consumer socialization d. Protestant ethic e. economic censorship

e. economic censorship

Which of the following statements is true of publicity? a. it is a less powerful tool of public relations b. its information cannot be perceived as endorsed by the medium in which it appears c. it is always perceived as being sponsored by the company d. it is a less credible form of sales promotion e. it can make or break a product or even a company

e. it can make or break a product or even a company

Which of the following statements is true of posttesting? a. it is used to determine the initial objectives of a particular marketing campaign. b. it is typically not common among advertisers. c. it is usually conducted during the idea generations stage. d. it does not include consumer juries and portfolio tests. e. it is used to determine if the campaign is accomplishing the objectives sought.

e. it is used to determine if the campaign is accomplishing the objectives sought.

Mary was asked to go through the press releases and other PR activities related to the launch of Pluto Corporation's new phone. She was then asked to determine the trends and perceptions relating to the product. Which of the following methods of measuring the effectiveness of marketing public relations is being employed here? a. interviews b. survey research c. focus groups d. Delphi technique e. media content analysis

e. media content analysis

Which of the following integrated marketing communications tools helps a firm operating in a foreign market present itself as a good corporate citizen concerned about the future of the country? a. direct marketing b. publicity c. sales promotions d. advertising e. public relations

e. public relations

The ________ method of measuring the effectiveness of ads uses optical scanning equipment that identifies the households of consumers who agree to participate and gives the research company their demographics, then records their purchases. a. split-run b. day-after recall c. electrodermal response d. hemispheric lateralization e. single-source tracking

e. single-source tracking

A particular advertisement for a men's cologne was found to be more effective as a magazine ad than as a TV commercial when it was exposed to a group of 10 people. This phenomenon is explained by a. the evaluative effect b. the hierarchy of needs theory c. the carry-over effect d. cause-related advertising e. the vehicle option source effect

e. the vehicle option source effect

A balance-of-trade deficit occurs when the monetary value of a country's exports exceeds that of its imports. True/False

FALSE

A disadvantage associated with a global marketing strategy is that it incurs high marketing costs for a company as a result of increases in planning and control. True/False

FALSE

All ads that use sexual appeals in the form of suggestiveness and/or nudity are considered deceptive advertising. True/False

FALSE

Complete decentralization of the international advertising and promotion functions is suitable when a company desires a consistent image worldwide. True/False

FALSE

Data on a country's economic environment can help companies plan ad campaigns by providing insight into the living standards and lifestyles of its people. True/False

FALSE

Economic censorship occurs when advertisers have a limited budget to spend on media. True/False

FALSE

Focus groups are a quantitative method of testing ads. True/False

FALSE

Once an ad campaign has been implemented, there is no need for any further testing. True/False

FALSE

Overuse of sales promotion is always profitable to a brand. True/False

FALSE

Publicity ensures accuracy of information because the company controls the message. True/False

FALSE

Regulatory concerns do not play a major role in the advertising decision-making process. True/False

FALSE

The advertising industry prefers government intervention to self-regulation for controlling advertising abuses. True/False

FALSE

The sampling technique of promotion is less preferred by marketers and consumers as it entails a lot of risk. True/False

FALSE

Both the message and the means by which it is communicated are bases for evaluation. True/False

TRUE

In a split-run test, ads are printed in alternate copies of the same issue of a magazine and then the response to each is measured to see which one generates more inquiries. True/False

TRUE

Marketing public relations helps in improving the overall ROI by reducing overall marketing costs. True/False

TRUE

One of the most important uses of sales promotion techniques is to encourage consumers to try a new product or service. True/False

TRUE

PACT Principle 3, providing multiple measurements, can often be done by budgeting to make sure more than one test is conducted. True/False

TRUE

Public relations is concerned with people's attitudes toward a firm or specific issues beyond those directed at a product or service. True/False

TRUE

Sales promotion can provide inducement to marketing intermediaries such as wholesalers and retailers. True/False

TRUE

Survey research involves quantitatively assessing consumers' attitudes toward the product or brand. True/False

TRUE

The NAD, CARU, ERSP, and the Online Interest-Based Advertising Accountability Program are staffed primarily by attorneys. True/False

TRUE

The Protestant ethic views the accumulation of material possessions as evidence of success. True/False

TRUE

The U.S. Postal Service has control over advertising involving the use of the mail and ads that involve lotteries, obscenity, or fraud. True/False

TRUE

The press forms a part of the external audience for all the public relations activities of a manufacturing firm. True/False

TRUE

The spread of cable and satellite TV has led to the growth of sales promotion activities in international markets. True/False

TRUE

When properly planned and executed to work together, advertising and sales promotion can have a synergistic effect much greater than that of either promotional mix element alone. True/False

TRUE

The ________ is the division of the Federal Trade Commission (FTC) that analyzes the impact of government regulation on competition and consumers. a. Bureau of Economics b. Bureau of Reconstruction c. National Advertising Review Board d. Trade Regulation Bureau e. Bureau of Compliance

a. Bureau of Economics

Which of the following viewpoints is implicitly supported by the "advertising equals information" concept? a. Consumers become more price-sensitive due to advertising. b. Advertisements help firms establish strong brand loyalty. c. Advertising affects consumer preferences and tastes. d. Advertising creates needs for customers. e. Firms are insulated from market competition due to advertising.

a. Consumers become more price-sensitive due to advertising.

Which of the following statements is true of how adult men and women are portrayed on American television? a. Portrayals of women emphasize their passivity. b. Men are associated with lower levels of effort compared to women. c. Portrayals of women emphasize their intelligence. d. A drive for achievement is portrayed to be greater in women. e. The need for power is shown to be equal in males and females.

a. Portrayals of women emphasize their passivity.

Which of the following statements is true of the use of puffery? a. The use of puffery in ads is common. b. Firms that are found guilty of the use of puffery are banned from using that particular medium. c. Puffery is the inclusion of objective opinions in ads. d. Most state governments have banned the use of puffery in television ads. e. The act of puffery does apply to sales presentations.

a. The use of puffery in ads is common.

The ________ empowers the Federal Trade Commission (FTC) to issue a cease-and-desist order. a. Wheeler-Lea Amendment b. International Consumer Protection and Enforcement Network c. Children's Televisions Act d. Organization for Economic Co-operation and Development Consumer Policy Toolkit e. Warner-Lambert Act

a. Wheeler-Lea Amendment

A promotion is considered a lottery if a. a consideration, such as making a purchase, is present. b. winning a prize depends on a skill. c. the participant is not required to give up something of value. d. the odds of winning are not against the consumer. e. a prize is not offered.

a. a consideration, such as making a purchase, is present.

A publicity piece designed to be aired as a news story is known as a. a video news release b. digital advertising c. a video on demand d. a new mnemonic e. corporate news advertising

a. a video news release

Which of the following is the most suitable classification for advertisements that are offensive, irritating, and boring? a. advertising in bad taste b. advertising as misleading c. advertising to improper audience d. advertising as deceptive e. advertising as untruthful

a. advertising in bad taste

Auto Inc. has come up with a new series of ads to promote the use of seat belts. It has also invested in various billboards across New York City and Chicago for the same purpose. This campaign is an example of a. advocacy advertising. b. an event sponsorship. c. a video news release. d. digital advertising. e. transit advertising.

a. advocacy advertising.

Before shipping its new tablet, Samsung created a great deal of anticipation through public relations. Upon the release of the Samsung tablet, consumers stood waiting in lines for hours to own the next Samsung innovation. In which of the following ways did marketing public relations (MPR) add value to the integrated marketing program? a. by building marketplace excitement before media advertising breaks b. by improving ROI c. by influencing young influentials d. by creating advertising news where there is no product news e. by providing a value-added customer service

a. by building marketplace excitement before media advertising breaks

Advertising practices considered unfair include a. claims that might exploit children and older adults. b. claims made with prior substantiation. c. trade practices that could reasonably be avoided by customers. d. statements that are misunderstood by the public due to their lack of knowledge. e. inclusion of irrelevant information in ads.

a. claims that might exploit children and older adults.

A global consumer culture is one in which many consumers share ________, regardless of the countries in which they reside. a. consumption values b. publicity values c. public relations values d. advertising values e. marketing values

a. consumption values

International marketers consolidate their advertising with one agency in order to a. develop a consistent global image for their company and/or its brands. b. target global consumers who have universal likes, dislikes, and mindsets. c. target various local markets with customized campaigns. d. project different brand images according to each country's cultural values. e. reap the benefits of decentralization.

a. develop a consistent global image for their company and/or its brands.

Jim is asked to view an ad and rate it according to its creativity, effectiveness, and information dissemination capability. Jim rates the ad as good based on its creativity alone, while ignoring the effectiveness and information dissemination components. However, the ad is considered to be ineffective due to its poor information dissemination capability. This scenario is an illustration of the a. halo effect b. vehicle option source effect c. reaction effect d. carryover effect e. simulation effect

a. halo effect

Successful public relations efforts may indirectly lead to a. increased friendliness b. reduction in consumer loyalty c. lower economies of scale that result in greater profit margins d. greater antagonism e. increased animosity between firms and suppliers

a. increased friendliness

Which of the following statements about the focus-group method of concept testing is true? a. it does not require quantitative analysis b. this method is unattractive as results are not easily obtainable c. it is a less preferred method of concept testing d. fifty or more groups are needed to test a concept sufficiently e. no immediate responses are received in case of focus groups

a. it does not require quantitative analysis

Which of the following correctly states a disadvantage associated with marketing public relations (MPRs)? a. it is difficult to tie in slogans and other advertising devices b. it does not help in generating ROI c. it results in media clutter d. it does help in achieving credibility e. it is a costly method of reaching the target audience

a. it is difficult to tie in slogans and other advertising devices

Which of the following is cited as a reason for measuring the effectiveness of ads and other promotional activities? a. it leads to evaluation of alternative strategies under consideration b. it is an easy procedure in terms of both time and money c. it is easy to measure the contribution of each marketing element independently d. it provides a true assessment of creativity and effectiveness of ads e. it leads to a consensus on what to test and what measure to be used

a. it leads to evaluation of alternative strategies under consideration

Isabella Cosmetics, a global cosmetics brand, uses the same ad copy and tagline for its ads across various countries but changes the models used for different countries to appeal to the women in those countries. This is an example of ________ advertising. a. pattern b. aerial c. concentrated d. transit e. localized

a. pattern

Speed Inc. is a sports car manufacturer. Ron, a salesperson in a car dealership, makes $3,000 for every Speed Inc. car he sells. He receives this bonus from Speed Inc. along with his regular salary from the dealership at the end of each month. Which type of promotion is Speed Inc. using? a. spiff b. trade allowance c. price-off deal d. sweepstake e. planogram

a. spiff

The Advertising Self-Regulatory Council's mission is to a. sustain high standards of truth and accuracy in national advertising. b. ensure that no surrogate advertising is used for the advertising of tobacco products. c. ensure that all kinds of promotional media are used equally for advertising purposes. d. increase television advertising in remote areas of the United States. e. promote Internet and interactive advertising.

a. sustain high standards of truth and accuracy in national advertising.

Which of the following statements is true of exposure methods? a. they can estimate direct as well as indirect audiences of a sponsored event. b. they are most commonly employed with personal selling techniques. c. they evaluate consumer awareness and familiarity based on surveys. d. they provide accurate indications of consumers' perceptions. e. they monitor the quality of media coverage obtained for a sponsored event.

a. they can estimate direct as well as indirect audiences of a sponsored event.

Which of the following statements about coupons is true? a. they help to induce price-sensitive customers to purchase a product or a service b. they help in price reduction but are ineffective in inducing trial c. coupons are ineffective in encouraging repurchases d. couponing requires reliance on retailers for cooperation e. couponing increases consumers' perceived risk associated with the trial of a new product

a. they help to induce price-sensitive customers to purchase a product or a service

Which of the following is a federal agency that controls advertising? a. National Advertising Review Board b. Food and Drug Administration c. National Review Board d. Better Business Bureau e. Children's Advertising Review Unit

b. Food and Drug Administration

In which of the following markets is the retail industry highly fragmented, so there is less trade pressure for promotions? a. Northern Europe b. Southern Europe c. Japan d. United States e. Canada

b. Southern Europe

Which of the following is an objective of corporate advertising? a. making consumers aware of the services offered by the company b. creating a positive image for the firm c. creating effective sales promotions d. increasing sales of a specific product e. using social media to increase brand awareness

b. creating a positive image for the firm

A recent study found that print ads that used red backgrounds were highly rated in China but were not well received in other countries. This finding was attributed to the fact that red signifies good fortune and joy for the Chinese, but it is a symbol of misfortune in many other nations. This variation is an example of the prevalence of ________ differences among nations. a. legal b. cultural c. demographic d. economic e. political

b. cultural

An automobile company creates an ad to launch a new bike. The ad makes claims that mislead viewers about product performance and durability. Based on the fact that the ad is untruthful, critics will classify this as ________ advertising. a. distasteful b. deceptive c. ethical d. informational e. offensive

b. deceptive

A new form of public relations has evolved as the intersection between functions like social media and influencer marketing with traditional public relations activities. It is called a. evolved public relations. b. digital public relations. c. intersecting public relations. d. branded public relations. e. incorporated public relations.

b. digital public relations

The bulletin board of Tales and You, a children's publishing company, contained an article that congratulated the organization for achieving 1 million sales and appreciated everyone for their efforts. This piece of public relations targeted the a. stockholders. b. employees of the firm. c. customers. d. firm's suppliers. e. investors.

b. employees of the firm

Pree uses sales promotions and promotional dollars to stress how her brand is different from competitive brands and to keep her brand in consumers' minds. Based on her approach, at what stage of the product life cycle is Pree's brand? a. development b. growth c. decline d. maturity e. introduction

b. growth

The DISCUS ban, which effectively banned hard liquor ads on national television for five decades, is an example of a. government oversight. b. industry self-regulation. c. industry regulation. d. government regulation.

b. industry self-regulation.

Jezebel is running a consumer-oriented sales promotion that provides free access to her company's razors, as well as a coupon for a discount off of the cartridges. What is the goal of this promotion? a. targeting a specific market segment b. obtaining trial and repurchase c. enhancing advertising and marketing efforts d. increasing consumption of an established brand e. defending current customers

b. obtaining trial and repurchase

Advertising is criticized for a. not creating new needs b. perpetuating stereotypes c. breaking traditional gender roles d. discouraging materialism e. being unable to control the media

b. perpetuating stereotypes

Yummy Foods gave away 25-ounce packs from its range of oatmeal products to consumers, free of charge. The company distributed the packs to those who shopped at select grocery stores around the state of Pennsylvania. Which type of promotion did Yummy Foods employ? a. sweepstakes b. sampling c. contest d. in-store couponing e. free premium

b. sampling