Promo Strategies Exam 4

Advertisers use shock advertising primarily to: A) get consumers' attention amid the clutter. B) avoid controversy and scrutiny and deliver a direct message. C) reach conservative or older audiences. D) create an ethical model of shock advertising for others to follow. E) increase the brand association of certain products.

A

Commercial speech is most accurately defined as: A) communication that promotes a commercial transaction. B) an encoding and decoding tool for commercial communications. C) a type of comparative advertising used in TV commercials. D) speech governed by the Fifth Amendment to the U.S. Constitution. E) an advertising component of broadcast media.

A

Drum Inc., a manufacturer of musical instruments, is considering expanding into a foreign market. The company is collecting data relating to age, income distribution, and gender variations in the potential host country. In this scenario, Drum is collecting ___________ information. A) demographic B) economic C) legal D) political E) cultural

A

If advertisers use a ________, they should know that humorous advertising appeals are popular in the United Kingdom, but that German consumers do not respond well to them. A) localized advertising strategy B) global public relations strategy C) centralized marketing strategy D) global marketing strategy E) sales promotion tactic

A

In ________ tests, people are brought to a particular location where they are shown ads and/or commercials and testers either ask questions about them or measure participants' responses by other methods—for example, pupil dilation, eye tracking, or galvanic skin response. A) laboratory B) field C) recognition D) ground E) closed

A

Sometimes participants rate an ad good on all characteristics because they like a few and overlook specific weaknesses. This tendency, called the ________ effect, distorts the ratings and defeats the ability to control for specific components. A) halo B) recency C) contextual D) visual option source E) stimulus-response

A

The belief that advertising equals ________ reflects traditional economic thinking that views advertising as a way to change consumers' tastes, lower their sensitivity to price, and build brand loyalty among buyers of advertised brands. A) market power B) empowerment C) information D) ethics E) equality

A

The first step in measuring the effectiveness of event sponsorship is to: A) narrowly define the objectives for the event with specific details. B) set qualitative goals. C) build evaluation methods into the event sponsorship strategy. D) measure the implementation and results against predetermined benchmarks. E) redefine the organization's objectives in terms of its marketing communications.

A

Under its affirmative disclosure requirement, the Federal Trade Commission (FTC) may require advertisers to include certain types of information in their ads so that: A) consumers will be aware of all the consequences and limitations associated with the use of a product or service. B) consumers can substantiate the claims made for their product or service. C) consumers' choice or conduct with regard to a product or service will remain unaffected. D) consumers can distinguish exaggeration or inflated claims in advertising and also recognize puffery. E) consumers can easily understand any technical data or information provided.

A

Under the Children's Television Act: A) advertising during children's programming is limited to 12 minutes an hour on weekdays. B) the Federal Communications Commission (FCC) possesses the right to fine advertisers who exceed advertising limits as defined by the act. C) advertising aimed at children is prohibited. D) broadcasters are required to provide time for opposing viewpoints on important issues. E) advertisers do not have restrictions on the amount of advertising aimed at children.

A

When Frito-Lay decided to move to a global campaign to connect worldwide fans with a consistent storyline, look, and feel from the Doritos brand, it created: A) a consistent international brand image. B) less desirable economies in production and distribution. C) longer lead times to introduce products into world markets. D) more complex coordination of marketing and promotional programs. E) higher advertising production costs.

A

When advertisers make false or misleading claims or fail to award prizes promoted in a contest or sweepstakes, their ads are likely to be labeled as: A) deceptive. B) intrusive. C) playful. D) ineffective. E) childish.

A

When companies follow a ________, the creative team must determine what type of selling idea, ad appeal, and execution style will work in each market. A) localized advertising strategy B) centralized marketing strategy C) global marketing strategy D) global public relations strategy E) pattern marketing strategy

A

Which of the following best describes the consumer socialization process? A) It refers to consumers acquiring the skills needed to function in the marketplace. B) It explains why consumers will never completely abandon department store shopping for online shopping. C) It refers to marketers studying consumers' social skills to understand the market. D) It explains how marketers engage consumers in relationship marketing. E) It refers to how marketers influence consumers to move from need recognition to final purchase.

A

Which of the following divisions of the Federal Trade Commission (FTC) protects consumers from deceptive and unsubstantiated advertising and enforces the provisions of the FTC Act that forbid misrepresentation, unfairness, and deception in general advertising at the national and regional level? A) the Division of Advertising Practices B) the Division of Advertising Broadcasts C) the Division of Marketing Practices D) the Division of Consumer Advertising & Protection E) the Division of Economic Practices

A

Which of the following factors demands different creative and media strategies as well as changes in other elements of the advertising and promotional program for foreign markets? A) language variations from country to country B) unlimited media options in various countries C) similar buying behaviors of consumers around the world D) increase in the overall world literacy rate E) women's empowerment throughout the world

A

Which of the following factors does the Federal Trade Commission (FTC) consider in evaluating an ad for deception? A) significant omissions of important information B) presence of superlative words in the advertisement C) violation of trade regulation rule D) lack of selective disclosure E) presence of puffery in the advertisement

A

Advertisers spend billions of dollars each year to reach children because: A) they can easily interpret the selling intent of a message. B) their direct purchases are influenced by television. C) they do not have much influence on their family's spending. D) they are not vulnerable to advertising. E) products made for children are more saleable.

B

At the initial stage of an international marketing campaign, many American companies prefer to use an international ad agency based in the United States with foreign offices in other countries. This is because: A) U.S. agencies understand world markets better than foreign agencies do. B) U.S.-based agencies give an advertiser better control of the advertising process. C) American culture is mostly used as a basis for understanding other cultures. D) U.S. agencies are more creative than foreign agencies in terms of advertising concepts. E) U.S.-based agencies generally understand local markets better than agencies located in these countries.

B

Most print media try to maintain "The Wall" within the organization in order to ensure independence and credibility. However, it is becoming increasingly difficult to maintain "The Wall." Which of the following is the primary reason for this? A) change in the attitude of advertisers B) increased competition from other media C) changes in the type of information in print media D) increased customer awareness and price sensitivity E) changes in advertising patterns

B

Nina argues that it is unfair and deceptive to advertise to children. Which of the following statements is likely to strengthen her argument? A) Children can differentiate between commercials and programs. B) Children require cognitive defenses against misleading advertisements. C) Children require their parents to make the actual purchase. D) Children can perceive the selling intent of commercials. E) Children require no guidance to distinguish between reality and fantasy.

B

One of the weaknesses associated with a focus group research is that the results are: A) inaccurate. B) not quantifiable. C) difficult to obtain. D) not directly observable. E) not immediate.

B

The four recognition scores generated by the Starch methodology are: A) recognition, retention, comprehension, and readers per dollar. B) noting, brand-associated, read-most, and read any. C) noting, comprehension, seen-associated, and retention. D) readers per dollar, cost ratios, CPMs, and brand-associated. E) comprehension, retention, response, and brand-associated.

B

Under the ________, the Federal Communications Commission (FCC) required stations to run commercials about the harmful effects of smoking. A) Substantial Omission Doctrine B) Fairness Doctrine C) Affirmative Disclosure Doctrine D) Misinterpretation Doctrine E) Substantiation Doctrine

B

Which of the following is NOT one of the eight steps to measuring event sponsorship? A) Enhance, rather than just change, other marketing variables. B) Pull Marketing 101 off the shelf. C) Narrowly define objectives with specifics. D) Set measurable and realistic goals; make sure everything you do supports them. E) Establish solid strategies against which programming will be benchmarked and measure your programming and effectiveness against the benchmark.

B

Which of the following is NOT one of the reasons companies are focusing on international markets? A) Economic, social, and political changes around the world have opened markets with opportunities for greater growth and profits. B) The United States has been running a balance-of-trade surplus. C) Domestic markets offer companies limited opportunities for expansion. D) Foreign markets offer companies from small nations economies of scale to compete against larger companies. E) Globalization is revolutionizing the world far more radically and rapidly than industrial development and technological changes of previous eras.

B

Which of the following is a problem associated with global marketing and advertising? A) difficulty in obtaining economies of scale in production and distribution B) differences in consumer needs and usage patterns C) greater inconsistency in international branding and/or corporate imaging D) difficulties in coordination and control of marketing and promotional programs E) higher advertising production costs

B

Which of the following is an advantage of using local agencies for each national market? A) It provides the local subsidiary with limited freedom. B) It improves morale in the host office. C) It reduces diseconomies of scale. D) It is a highly cost-efficient method. E) It enables marketers to hire the best talent in each market.

B

Which of the following is true of a focus group? A) Focus groups require quantitative analysis. B) Group influences tend to bias participants' responses. C) This methodology is unattractive as results are typically unattainable. D) The results of focus groups are typically quantifiable. E) Focus group samples can be generalized to larger populations.

B

Which of the following is true of ethnocentrism? A) It refers to the receptive and heterogeneous attitude prevalent in a host country. B) It refers to people's tendency to view their own group as the center of the universe. C) It is synonymous with cultural relativism. D) It is synonymous with the concept of xenocentrism. E) It is typically considered a negligible aspect of international marketing.

B

Which of the following statements is indicative of the "advertising equals market power" school of thought on advertising's role in the economy? A) Consumers can compare competitive offerings easily and competitive rivalry increases. B) Advertising affects consumer preferences and tastes, changes product attributes, and differentiates the product from competitive offerings. C) Advertising makes entry possible for new brands because it can communicate product attributes to consumers. D) Advertising informs consumers about product attributes but does not change the way they value those attributes. E) Advertising causes consumers to become more price sensitive and buy best "value."

B

Yevon Inc., a manufacturer of fruit-based beverages, runs its ad on a particular news station. It packages the drinks in boxes and plastic bottles. A recent study done by a local doctor reveals that there is a direct correlation between stomach infections and drinking from juice boxes. Although the doctor does not mention any brand names, the news station decides not to air the news report in compliance with Yevon, its prime sponsor. This is an example of: A) consumer socialization. B) economic censorship. C) shock advertising. D) the Protestant ethic. E) media stereotyping.

B

________ distinguishes between alpha activity in the left and right sides of a brain and is used to determine how an ad is affecting the mental processes of the individual viewing it. A) Pupillometrics B) Hemispheric lateralization C) Cerebral response testing D) Beta activity E) Gamma activity

B

________ is a rough commercial test in which a succession of drawings and/or cartoons is shown to a receiver. A) Photomatic rough testing B) Animatic rough testing C) Single-source testing D) Finished commercial testing E) Live-action rough testing

B

Advertisers are often supportive of voluntary self-regulation because: A) it is simple and less time consuming. B) self-regulation does not require interaction between an agency and a client. C) self-regulation is viewed as a way of limiting government interference in advertising. D) self-regulation results in even more stringent regulations than what state and federal agencies want. E) all clients and agencies are affected by voluntary self-regulation.

C

Companies prefer to ________ the international advertising and promotion function so that all decisions about agency selection, research, creative strategy and campaign development, media strategy, and budgeting are made at the firm's home office. A) decentralize B) globalize C) centralize D) regionalize E) localize

C

Developed countries have the ________ infrastructure in terms of the communications, transportation, and distribution networks needed to conduct business effectively in these markets. A) cultural B) legal C) economic D) demographic E) political

C

For its international advertising, Lambert & Rios Corp., a global clothing company, uses an organizational approach in which the president of its global marketing division supervises the company's marketing program in all the host countries but still provides autonomy to local and regional marketing directors. This is an example of a: A) combination of pattern advertising and regional advertising. B) centralized approach. C) combination of the centralized and decentralized approaches. D) matrix network. E) decentralized approach.

C

Galvanic skin response is also known as: A) pupillometrics. B) alpha activity. C) electrodermal response. D) beta activity. E) dermal resolution.

C

Krypton, a developing nation, has a reputation for being unsuitable for conducting business due to its poor communication and transportation systems. Its distribution networks are also underdeveloped. In this scenario, Krypton has a poor: A) advertising system. B) demographic environment. C) economic infrastructure. D) balance of payments. E) cultural system.

C

One method of testing how consumers relate to an ad and process the information it contains is to measure ________, the degree of brain activation that occurs when they look at the ad. A) beta activity B) electrodermal response C) alpha activity D) pupillometrics E) cerebral response

C

The ________ examines advertising claims in direct-response advertising, including infomercials and home shopping channels. A) Independent Business Alliance B) Children's Advertising Review Unit C) Electronic Retailing Self-Regulation Program D) National Association of Broadcasters E) Vision Council of America

C

Which of the following elements are important parts of the marketing program of firms competing in the global marketplace? A) direct marketing and personal selling B) publicity and public relations C) advertising and promotion D) servicescape and visual merchandising E) direct selling and personal selling

C

Which of the following is an important early development in state regulation that is used in 44 states as a basis for advertising regulation? A) the Better Business Bureau guidelines B) the Wheeler-Lea Amendment C) the Printers Ink model statutes D) Consortium of Trade Association's regulations E) Fifth Amendment rectifications

C

Which of the following statements concerning advertising by attorneys is true? A) Ads soliciting personal injury victims help in enhancing the public's perception of attorneys. B) Typically, traditional law firms are in favor of using advertising, particularly on TV, because they believe that it might boost a profession's image. C) The right for attorneys to advertise is protected under the First Amendment. D) The U.S. Supreme Court does not permit lawyers to advertise if they earn more than $100,000 per year. E) The American Bar Association recently removed all restrictions on the type of advertising attorneys can use.

C

Which of the following statements is true of cultural values? A) In today's globalized market, cultural differences are negligible, thus enabling international advertisers to market their brands easily. B) Cultural values are personal values and are only applicable on an individual level. C) Values and beliefs of a society can affect its receptivity to foreign products and services. D) A highly ethnocentric culture will be extremely receptive to foreign products and services. E) Cultural values have no effect on the market or consumer behavior.

C

Which of the following statements is true of online behavioral advertising (OBA)? A) OBA is regulated by the Electronic Retailing Self-Regulation Program (ERSP). B) OBA is based on the seven Self-Regulatory Principles for Electronic Retailing. C) OBA uses information collected across multiple unaffiliated websites to predict a user's preferences. D) OBA permits only those advertisements that provide detailed information about an advertiser's products and services. E) Companies engaged in OBA are monitored by the Federal Trade Commission (FTC).

C

Which of the following supports the view that advertising encourages materialism? A) Advertising seeks to promote intellectual rather than materialistic growth. B) Advertisements promote violence rather than showing images of the good life. C) Ads seek to create needs rather than show how a product fulfills needs. D) Most advertisements are shown during prime time. E) Many ads are broadcast through nontraditional media.

C

________ are a laboratory methodology designed to expose a group of respondents to a system consisting of both control and test ads. A) Unstructured focus groups B) Dummy tests C) Portfolio tests D) Controlled tests E) Field tests

C

________ are beliefs and goals shared by members of a society regarding ideal end states of life and modes of conduct. A) Demographic ideals B) Heuristics C) Cultural values D) Corporate ethics E) Work-life balance principles

C

________ occur after an ad or commercial has been in the field. A) Dummy advertising vehicles B) Portfolio tests C) Posttests D) Physiological measures E) Consumer juries

C

A way to gather consumers' opinions of concepts is ________, where consumers in shopping centers are approached and asked to evaluate rough ads via questionnaires, rating scales, and/or rankings. A) laboratory testing B) consumer juries C) Delphi groups D) mall intercepts E) focus groups

D

Geena is testing an ad using the nine principles established by Positioning Advertising Copy Testing (PACT). When she isolates mall intercept participants and does not disclose what the interviews are about, she is trying to adhere to the seventh principle, which is to: A) decide whether to use pretests or posttests. B) create a model that uses multiple measures. C) establish communication objectives. D) provide controls to avoid the biasing effects of the exposure context. E) develop a consumer response model.

D

The Federal Trade Commission (FTC) defines ________ as an express or implied statement contrary to fact. A) selective retention B) comparative disclosure C) affirmative disclosure D) misrepresentation E) selective exposure

D

The courts have extended First Amendment protection to: A) advertisers who do not want to be self-regulated. B) advertisers who want to use delusory wording in their ads. C) advertisers to enable them to sue the media for not providing them with the promised reach and frequency. D) commercial speech, a speech that promotes a commercial transaction. E) the findings of marketing research studies.

D

The major advantage of the laboratory method of testing for advertisement effectiveness is the ________ it affords a researcher. A) realism B) external validity C) lack of bias D) control E) generalization

D

The portfolio test for ads assumes that: A) there is no contextual difference between an animatic rough and a photomatic rough. B) field and laboratory tests produce the same results. C) a consumer will closely scrutinize all ads that he or she sees. D) ads that yield the highest recall are the most effective. E) reliability and validity are the most important parts of the testing process.

D

The set of principles adopted by large advertising agencies to improve preparation and testing of ads is referred to as: A) Pre-Advertising Commercial Testing (PACT) B) Principles of Advertising Consumer Testing (PACT) C) Post-Advertising Commercial Testing (PACT) D) Positioning Advertising Copy Testing (PACT) E) Promotional Advertising Content Testing (PACT)

D

Which of the following is a posttest method used for measuring advertising effectiveness? A) concept tests B) physiological measures C) readability tests D) recall tests E) portfolio tests

D

Which of the following sentences is true of readability tests? A) The communications efficiency of a copy in a print ad can only be tested with reader interviews. B) Readability tests are successful in consistently providing direct inputs from receivers. C) An advantage of the readability test is that the copies are not mechanical. D) To be effective, readability tests should be used only in conjunction with other pretesting methods. E) This method uses the Delphi group formula.

D

Which of the following statements can proponents of advertising use against the charge that advertising makes people buy things they do not need? A) Materialism is an important freedom of choice in an individualistic society. B) Customers benefit from the economies of scale that occur due to persuasive advertising. C) Most persuasive advertisements do not use emotional appeals to persuade customers. D) Consumers have the freedom to make their own choices when confronted with persuasive advertising. E) Advertising provides information on basic needs to customers rather than persuading them.

D

________ is a readability test that determines the average number of syllables per 100 words. A) Dummy testing B) Contextual testing C) Portfolio analysis D) The Flesch formula E) Burke's reflections test

D

________ measures the skin's resistance or conductance to a small amount of current passed between two electrodes. A) Dermal-electro resolution B) Electroencephalographic C) Cerebral response D) Electrodermal response E) Pupillometrics

D

Brine Inc., a manufacturer of salt, places two different ads for Brine salt in alternative copies of the December 2016 issue of Kitchen Queen, a popular food magazine. One ad contains ideas extending the use of salt beyond the kitchen, and the other describes salt as "Flavor Savor." In this scenario, Brine is conducting: A) Flesch tests. B) bipolar communications tests. C) single copy tests. D) alpha activity tests. E) split-run tests.

E

In 2009, ________ ordered Bayer to run a six-month, $20 million corrective advertising campaign for Yaz birth control because its marketing and advertising made false claims. A) the FCC B) the Supreme Court C) the FTC D) the US Post Office E) the FDA

E

In the context of evaluating media strategies to measure advertising effectiveness, owing to the increasing costs of media time, it is important to evaluate: A) the value of customer juries. B) the duration of association between a company and its spokesperson. C) whether or not to conduct posttesting. D) the readability of the print ad. E) flighting versus pulsing or continuous schedules.

E

PlayNet Inc., a toy manufacturer, believes that it is important to communicate directly with children rather than their parents. Which of the following considerations should PlayNet keep in mind while advertising to avoid ethical issues? A) The same tools used to reach adults must be used for children for an effective reach. B) Ads should be such that children's cognitive defenses are required to screen messages. C) Communication that creates a strong need for the product must be designed. D) Fantasy characters must be used to sell products that children may not desire as much. E) The advertisement must be sensitive to the naiveté of children as consumers.

E

Public relations activities are: A) a popular form of advertising. B) not effective for dealing with local or regional governments. C) not applicable on a global scale. D) usually expensive. E) used to communicate with the general community.

E

Tastes, traditions, and customs are an important part of ________ considerations. A) legal B) demographic C) economic D) political E) cultural

E

The ________ is a federal agency that was founded in 1934 to regulate broadcast communication and that has jurisdiction over the radio, television, telephone, and telegraph industries. A) U.S. Postal Service B) National Association of Broadcasters C) Federal Trade Commission D) Fairness Doctrine E) Federal Communications Commission

E

The communications, transportation, financial, and distribution networks of a country are part of its: A) political/legal environment. B) cultural environment. C) demographic environment. D) international interface. E) economic infrastructure.

E

The day-after recall test would be the most appropriate measure of effectiveness for: A) a full-page ad in a trade journal aimed at the supermarket industry. B) a direct mail containing details of products offered by a furniture manufacturer. C) an aerial ad by a leading fast-food chain. D) the back outside cover position of the May issue of a women's magazine. E) a 30-second commercial promoting a baseball league on a cable channel.

E

The primary metric used in on-air testing method of pretesting finished broadcast ads is: A) reaction. B) jury results. C) focus group results. D) portfolio analysis. E) recall.

E

The principles of Positioning Advertising Copy Testing (PACT) state that a good copy testing system will: A) test alternative executions at various stages of completion. B) evaluate responses to the advertising at a single level of the hierarchy of effects. C) use a single measure of a single dependent variable to ensure clarity of interpretation. D) measure needs satisfaction levels proposed by each advertisement under consideration. E) provide measurements that are relevant to the objectives of advertising.

E

The results of readability tests indicate that a copy is best comprehended when: A) impersonal references are drawn. B) the receiver is unknown. C) sentences are long and descriptive. D) the words used have no connotations outside their dictionary definitions. E) words are concrete and familiar.

E

Which of the following is a weakness associated with a focus group research? A) The results are difficult to obtain. B) Focus groups require quantitative analysis. C) Consumers are hesitant to participate. D) The results are not directly observable. E) Consumers become instant "experts."

E

Which of the following is true of the "think globally, act locally" approach to international advertising? A) It enables the head office to retain control of aspects such as slogans, themes, and copies. B) It is synonymous with the "one company, one advertising campaign" approach. C) It offers limited autonomy to regional offices. D) It is essentially a form of xenocentric advertising. E) It it also referred to as glocal advertising strategy.

E

Which of the following is true of the Children's Advertising Review Unit (CARU)? A) It bases its regulations on the protection of children's rights as defined by the Constitution. B) It is a division of the Federal Trade Commission. C) It supervises the advertisements in the United States rather than issuing self-regulatory guidelines. D) It limits its review to print media; it does not cover special effects and animation. E) It has strict regulatory guidelines for product presentations directed to children.

E

Which of the following media has the most stringent review and approval process for advertising? A) community radio B) business magazines C) the Internet D) newspaper and trade publications E) the four major television networks

E

________ data can provide insight into the living standards and lifestyles in a particular country to help companies plan ad campaigns. A) Political B) Legal C) Economic D) Demographic E) Social

E