Chapters 1-4

Test 1 Chapters 1 - 4

Question 1

2 out of 2 points

Which of the following is the primary objective of demarketing?
Selected
Answer:
Correct
Answer:

To dampen demand for products, especially those that create unwanted costs for society
To dampen demand for products, especially those that create unwanted costs for society

Response Demarketing is used to dampen demand for products, especially those that
Feedback: create unwanted costs for society. This public service message uses the

metaphor of a fish hook to convey the dangerous addictive qualities of alcohol. Question 2

2 out of 2 points

Which of the following is a basic function of branding?
Selected Answer:

To identify products and differentiate them from others

Correct Answer:

To identify products and differentiate them from others

Response
Feedback:

Question 3

The most basic function of branding as well as advertising is to identify products and their source and to differentiate them from others.

2 out of 2 points

Which of the following significantly contributed and eventually led to the declines in

music sales in the recording industry in the postindustrial age?
Selected Answer:

File-sharing technologies

Correct Answer:

File-sharing technologies

Response Digital technology has had a huge impact.The recording industry
Feedback: experienced declines in music sales as a result of file-sharing technologies.

Question 4

2 out of 2 points

Recently, an automobile company manufacturing racing cars and a reputed fashion house teamed up to design and market sports blazers. Ten dollars from the sale of each blazer was donated to a cancer foundation. By contributing to the foundation, the automobile company is:
Selected Answer:

behaving in a socially responsible fashion.

Correct Answer:

behaving in a socially responsible fashion.

Response Together, ethics and social responsibility can be seen as the obligation of
Feedback: advertisers, to society, even when there is no legal obligation. Most

advertisers today strive to maintain ethical standards and practice socially responsible advertising.

Question 5

0 out of 2 points

The _____ protects all copyrighted material, including advertising, in the United States.
Selected Answer:

U.S. Patent Office

Correct Answer:

Library of Congress

Response The Library of Congress protects all copyrighted material, including
Feedback: advertising, in the United States. A copyright is a form of protection

provided to the authors of “original works of authorship,” including literary, dramatic, musical, artistic, and certain other “intellectual works.”

Question 6

2 out of 2 points

_____ refers to doing what society views as best for the welfare of people in general or for a specific community of people.
Selected Answer:

Social responsibility

Correct Answer:

Social responsibility

Response
Feedback:

Question 7

Social responsibility means doing what society views as best for the welfare of people in general or for a specific community of people.

2 out of 2 points

An ad for a beer company that asks consumers to enjoy beer in moderation and not drink irresponsibly is most likely using _____.
Selected Answer:

demarketing

Correct Answer:

demarketing

Response
Feedback:

Demarketing is a type of marketing used to slow the demand for products, especially those that create unwanted costs for society.

Question 8

2 out of 2 points

A firm’s marketing activities are always aimed at a particular segment of the population called the _____.
Selected Answer:

target market

Correct Answer:

target market

Response
Feedback:

A firm’s marketing activities are always aimed at a particular segment of the population—its target market.

Question 9

2 out of 2 points

Some advertisers ask for or imply that they want to see what the ad agency will do before they sign on. In such cases, the ad agencies must create a:
Selected Answer:

speculative presentation.

Correct Answer:

speculative presentation.

Response Some advertisers ask for or imply that they want a speculative presentation,
Feedback: meaning they want to see what the agency will do before they sign on.

Question 10

2 out of 2 points

_____ is the structured and composed nonpersonal communication of information, usually paid for and usually persuasive in nature, about products by identified sponsors through various media.
Selected Answer:

Advertising

Correct Answer:

Advertising

Response Advertising is the structured and composed nonpersonal communication of
Feedback: information, usually paid for and usually persuasive in nature, about

products (goods, services, and ideas) by identified sponsors through various media.

Question 11

2 out of 2 points

Which of the following is an example of product differentiation?
Selected
Answer: A manufacturer of cosmetics trying to portray that its brands are not only

different from its competitors but also superior in terms of quality and variety Correct
Answer:

A manufacturer of cosmetics trying to portray that its brands are not only different from its competitors but also superior in terms of quality and variety Response By following the strategy of product differentiation, manufacturers seek to
Feedback: portray their brands as different from and better than the competition by

offering consumers quality, variety, and convenience.

Question 12

2 out of 2 points

A(n) _____ is formed by talented artists who work for advertisers and occasionally subcontract to advertising agencies. Their mission is to develop exciting creative concepts and to produce fresh, distinctive advertising messages.
Selected Answer:

creative boutique

Correct Answer:

creative boutique

Response Some talented artists—such as graphic designers and copywriters— set up
Feedback: their own creative services, or creative boutiques. They work for advertisers

and occasionally subcontract to ad agencies. Their mission is to develop exciting creative concepts and produce fresh, distinctive advertising messages. Question 13

2 out of 2 points

When the city of Pensacola in Florida uses the slogan, "the best seafront vacation in the
Americas" to promote tourism in the area, it is using _____.
Selected Answer:

puffery

Correct Answer:

puffery

Response
Feedback:

Puffery refers to exaggerated, subjective claims that can't be proven true or false.

Question 14

2 out of 2 points

An ad promoting a company’s mission or philosophy is called _____.
Selected Answer:

nonproduct advertising

Correct Answer:

nonproduct advertising

Response Feedback: To sell ideas, organizations use nonproduct advertising.

Question 15

0 out of 2 points

As a cost of doing business, advertising is paid for by the _____.
Selected Answer:

retailers

Correct Answer:

consumers

Response
Feedback:

As a cost of doing business, advertising is paid for by the consumer. Question 16

2 out of 2 points

Some products are publicized using _____, in which an ad claims the product is equal in quality to higher priced brands.
Selected Answer:

price advertising

Correct Answer:

price advertising

Response Some products are publicized using price advertising, in which an ad claims
Feedback: the product is equal in quality to higher priced brands. Other goods and

services, which do not attempt to compete on price, emphasize product quality. Question 17

2 out of 2 points

Of all the business functions, _____ is the only one whose primary role is to bring in revenue. Selected Answer:

marketing

Correct Answer:

marketing

Response
Feedback:

Of all the business functions, marketing is the only one whose primary role is to bring in revenue.

Question 18

2 out of 2 points

As of January 2012, a super market chain operates 142 supermarkets in the metropolitan areas of New York, New Jersey, and Philadelphia. The chain advertises only in states where it has stores. This form of advertising is known as:
Selected Answer:

regional advertising.

Correct Answer:

regional advertising.

Response
Feedback:

Regional advertisers operate in one part of the country - in one or several states - and market exclusively within that region.

Question 19

2 out of 2 points

What is the greatest disadvantage associated with in-house ad agencies?
Selected Answer:

Loss of objectivity

Correct Answer:

Loss of objectivity

Response Feedback: The biggest problem for in-house agencies is loss of objectivity.

Question 20

2 out of 2 points

In 2002, a Swedish home electrical appliance manufacturer decided to use the same advertising message wherever it advertised around the world. In other words, the company decided to use _____.
Selected Answer:

global advertising

Correct Answer:

global advertising

Response
Feedback:

Global marketers may use global advertising, in which messages are consistent in ads placed around the world.

Question 21

2 out of 2 points

In the context of advertising, market segmentation is the process of:
Selected
Answer:
Correct
Answer:

searching for unique groups of people whose needs could be addressed through more specialized products. searching for unique groups of people whose needs could be addressed through more specialized products.

Response In the context of advertising, market segmentation is the process of
Feedback: searching for unique groups of people whose needs could be addressed

through more specialized products.

Question 22

2 out of 2 points

The FTC defines _____ as any ad that contains a misrepresentation, omission, or other practice that can mislead a significant number of reasonable consumers to their detriment. Selected Answer:

deceptive advertising

Correct Answer:

deceptive advertising

Response The FTC defines deceptive advertising as any ad that contains a
Feedback: misrepresentation, omission, or other practice that can mislead a

significant number of reasonable consumers to their detriment.

Question 23

0 out of 2 points

A feature that differentiates a coffee-maker from other similar products in the market is its _____.
Selected Answer:

trademark

Correct Answer:

unique selling proposition

Response Rosser Reeves of the Ted Bates Agency introduced the idea that every ad
Feedback: must point out the product’s USP (unique selling proposition)—features

that differentiate it from competitive products. The USP was a logical extension of the Lasker and Hopkins “reason why” credo.

Question 24

2 out of 2 points

Which of the following is true of a trademark?
Selected
Answer:
Correct
Answer:

It is used by a manufacturer to identify his goods and distinguish them from those manufactured or sold by others.
It is used by a manufacturer to identify his goods and distinguish them from those manufactured or sold by others.

Response According to the Lanham Trade-Mark Act (1947), a trademark is “any word,
Feedback: name, symbol, or device or any combination thereof adopted and used by a

manufacturer or merchant to identify his goods and distinguish them from those manufactured or sold by others.

Question 25

0 out of 2 points

In order to convey the benefits of sponsorship to a potential sponsor, a rodeo show would most likely use _____. This enables the marketer to answer the prospect's questions on the spot.
Selected Answer:

cold calling

Correct Answer:

personal selling

Response In personal selling, salespeople deal directly with customers either face-toFeedback: face or via telemarketing. This offers the flexibility possible only through

human interaction. Personal selling is ideal for conveying information, giving demonstrations, and consummating the sale.

Question 26

2 out of 2 points

Which of the following can be copyrighted?
Selected Answer:

A dramatic work of original authorship

Correct Answer:

A dramatic work of original authorship

Response A copyright is a form of protection provided to the authors of “original
Feedback: works of authorship,” including literary, dramatic, musical, artistic, and

certain other “intellectual works.” Ideas, slogans, and familiar symbols and designs cannot be copyrighted.

Question 27

2 out of 2 points

A(n) _____ refers to a document the advertiser signs agreeing to stop the objectionable advertising without admitting any wrongdoing.
Selected Answer:

consent decree

Correct Answer:

consent decree

Response
Feedback:

A consent decree is a document the advertiser signs agreeing to stop the objectionable advertising without admitting any wrongdoing.

Question 28

2 out of 2 points

Typically, advertising expenditures are higher in countries with higher _____.
Selected Answer:

personal incomes

Correct Answer:

personal incomes

Response
Feedback:

Typically, advertising expenditures are higher in countries with higher personal incomes.

Question 29

0 out of 2 points

Ensuring the various marketing mix elements such as advertising direct-response, sales promotions, and the like, work together is referred to as _____.
Selected Answer:

advertising

Correct Answer:

coordinated marketing communications

Response Ensuring the various marketing mix elements such as advertising directFeedback: response, sales promotions, and the like, work together is coordinated

marketing communications.

Question 30

2 out of 2 points

_____ created a social media company called Facebook.
Selected Answer:

Mark Zuckerberg

Correct Answer:

Mark Zuckerberg

Response

Mark Zuckerberg dropped out of Harvard, headed west, and named his

Feedback:

new social media company Facebook.

Question 31

2 out of 2 points

A golf company has developed a golf club that has a wider shaft and is 40 grams lighter than other clubs currently available in the market. It has hired an agency to develop an advertising campaign for this new club. The golf company has offered to pay the agency
3 percent of its profits if it sells more than 30,000 clubs during its first full year of production. This bonus is an example of a(n):
Selected Answer:

incentive system.

Correct Answer:

incentive system.

Response Accountability is a major issue in the client/agency relationships. With a
Feedback: new type of agency compensation, the incentive system, the agency earns

more if the campaign attains specific, agreed upon goals.

Question 32

2 out of 2 points

The hundreds of other commercial and noncommercial messages a sponsor’s advertising message must compete with every day is known as _____.
Selected Answer:

noise

Correct Answer:

noise

Response A sponsor’s advertising message must compete with hundreds of other
Feedback: commercial and noncommercial messages every day. This is referred to as

noise.

Question 33

2 out of 2 points

In which of the following ways does advertising add value to a brand?
Selected Answer:

By making products better known

Correct Answer:

By making products better known

Response While an ad may not address a product’s quality directly, the positive image
Feedback: conveyed by advertising implies quality. By simply making the product

better known, advertising can make the product more desirable. In this way, advertising adds value to the brand.

Question 34

2 out of 2 points

During the Great Depression in America, each brand sought to convince the public of its own special qualities. What is this marketing strategy known as?
Selected Answer:

Product differentiation

Correct Answer:

Product differentiation

Response During the Great Depression in America, each brand sought to convince the
Feedback: public of its own special qualities. Manufacturers followed this strategy of

product differentiation vigorously, seeking to portray their brands as different from and better than the competition by offering consumers quality, variety, and convenience.

Question 35

2 out of 2 points

The drawback to personal selling is _____.
Selected Answer:

its high cost

Correct Answer:

its high cost

Response The drawback to personal selling is its high cost, so companies that
Feedback: emphasize personal selling in their marketing mix often spend a lower

percentage of sales on advertising than other firms.

Question 36

2 out of 2 points

The type of advertising published in psychiatry journals aimed at practicing psychiatrists is referred to as _____.
Selected Answer:

professional advertising

Correct Answer:

professional advertising

Response Advertising aimed at teachers, accountants, doctors, dentists, architects,
Feedback: engineers, lawyers, and the like is called professional advertising and

typically appears in official publications of professional societies.

Question 37

2 out of 2 points

Being ethical refers to:
Selected Answer:

doing what is morally right in a given situation.

Correct Answer:

doing what is morally right in a given situation.

Response
Feedback:

Being ethical means doing what is morally right in a given situation. Question 38

2 out of 2 points

In an ad, the words that make up the headline and message is known as the:
Selected Answer:

copy.

Correct Answer:

copy.

Response
Feedback:

Most ads rely heavily on copy, the words that make up the headline and message.

Question 39

2 out of 2 points

A company that manufactured ladders advertised its products as "the strongest, safest, and the most durable ladders in the world." This is an instance of _____.
Selected Answer:

puffery

Correct Answer:

puffery

Response
Feedback:

Puffery refers to exaggerated, subjective claims that can't be proven true or false.

Question 40

2 out of 2 points

The three primary types of ads placed in local media are product, classified, and:
Selected Answer:

institutional.

Correct Answer:

institutional.

Response
Feedback:

Most ads placed in local media are product, institutional, or classified advertising. Question 41

2 out of 2 points

_____ is an effective way to separate a particular brand from its competitors by associating that brand with a particular set of customer needs that rank high on the consumer's priority list.
Selected Answer:

Positioning strategy

Correct Answer:

Positioning strategy

Response Positioning strategy has proved to be an effective way to separate a
Feedback: particular brand from its competitors by associating that brand with a

particular set of customer needs that ranked high on the consumer’s priority list.

Question 42

2 out of 2 points

In a(n) _____, the company works continuously with customers (and other stakeholders) to discover ways to deliver better value.
Selected Answer:

partnership

Correct Answer:

partnership

Response

In a partnership, the company works continuously with customers (and

Feedback:

other stakeholders) to discover ways to deliver better value.

Question 43

2 out of 2 points

At some point, an irreconcilable difference may occur, and the relationship reaches the
_____ stage.
Selected Answer:

termination

Correct Answer:

termination

Response
Feedback:

At some point, an irreconcilable difference may occur, and the relationship reaches the termination stage.

Question 44

2 out of 2 points

The company that is advertising a product or idea is known as the _____.
Selected Answer:

sponsor

Correct Answer:

sponsor

Response Feedback: The company that is advertising a product or idea is the sponsor.

Question 45

2 out of 2 points

The _____ media used to be known as the broadcast media.
Selected Answer:

electronic

Correct Answer:

electronic

Response The electronic media of radio and television used to be called the broadcast
Feedback: media. But with the advent of cable TV, many programs are now

transmitted electronically through wires rather than broadcast through the air. Question 46

2 out of 2 points

The modern _____ advertising agency supplies both advertising and nonadvertising services in all areas of communications and promotion for its clients.
Selected Answer:

full-service

Correct Answer:

full-service

Response The modern full-service advertising agency supplies both advertising and
Feedback: nonadvertising services in all areas of communications and promotion.

Question 47

0 out of 2 points

Multinationals that use a standardized approach to marketing and advertising in all countries in which they do business are called:
Selected Answer:

international exporters.

Correct Answer:

global marketers.

Response Multinationals that uses a standardized approach to marketing and
Feedback: advertising in all countries are global marketers, and they create global

brands.

Question 48

0 out of 2 points

Advertising helps keep prices down by:
Selected
Answer:

offering people the opportunity to satisfy symbolic wants and needs.

Correct Answer:
Response
Feedback:

encouraging competition.
By encouraging competition, advertising has the effect of keeping prices down.

Question 49

2 out of 2 points

Some years ago, a discount store advertised that it was selling a pair of diamond earrings whose price had been reduced from the regular price of $1,199 to a discounted price of $399. Upon investigation, it was discovered that there was no evidence that the store had ever sold the earrings at the mentioned "regular" price. Which of the following types of advertising is this an example of?
Selected Answer:

Deceptive advertising

Correct Answer:

Deceptive advertising

Response The FTC defines deceptive advertising as any ad that contains a
Feedback: misrepresentation, omission, or other practice that can mislead a

significant number of reasonable consumers to their detriment.

Question 50

2 out of 2 points

Retailers use television, catalogs, the Internet, and magazines to transmit their advertising message to consumers. In terms of the four distinct groups around which advertising is organized, retailers are using:
Selected Answer:

the media.

Correct Answer:

the media.

Response The media sell time (on radio and TV) and space (in print, outdoor, or
Feedback: digital media) to carry the advertiser's message to the target audience.