Advertising Midterm

19 July 2023
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question
Which of the following statements about advertising is true? Advertising is a form of nonpersonal communication. Marketing communications is just one type of advertising. Advertising has not changed in the last century. Advertising is simply a business process. Advertising communicates no information.
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Advertising is a kind of nonpersonal, or mass, communication.
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_____ are the traditional promotional messages that often have the least impact because they are seen as self-serving.
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Planned messages
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There is an ad for a luxury SUV in a business magazine. In terms of the human communication process, the magazine serves as a(n):
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Channel
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Which of the following statements about advertising media is true?
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An advertising medium is any nonpersonal means used to present an ad to a large audience.
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A recent ad for a diet plan has shown a celebrity explaining how she lost more than 75 pounds. Identify this ad campaign in terms of the message dimensions.
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Autobiographical message
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The _____ formulates an idea, encodes it as a message, and sends it to another party.
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source
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A recent ad for a diet plan has shown a celebrity as she lost more than 75 pounds. The target market for these ads is people who are overweight or who believe they are overweight. Identify the ads' target market in terms of the receiver dimensions.
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Actual consumer
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Which of the following organizations is most likely to benefit from a PSA?
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Susan G. Komen Breast Cancer Foundation
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_____ creates a perception of a company or a personality for a brand.
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Image Advertising
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The ultimate goal of _____ is to earn a profit for the firm by consummating the exchange of products or services with those customers who need or want them.
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Marketing
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Which of the following is an assumption that characterizes a free-market economy?
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Self-Interest
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The industrial age started during:
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the second half of the 19th century.
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The American profession of advertising began when _____ set up business in Philadelphia in 1841.
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Volney B. Palmer
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_____ refers to a process by which marketers search for unique groups of people whose needs can be addressed through more specialized products.
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Market segmentation
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When a soft drink company introduced a new peach-flavored drink in a market saturated with colas, it immediately found favor with health-conscious consumers. In this example, the soft drink company effectively uses _____ by associating its brand with the consumers' focus on healthy living.
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positioning strategy
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After the end of the Cold War, big multinational companies and their advertising agencies went on a binge, buying other big companies. Which of the following terms describes this occurrence?
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Megamerger
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Who among the following developed AdWords, an advertising program for Google?
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Page and Brin
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In keeping with its commitment to green technology, a reputed automobile company introduced a line of luxury hybrid cars in the market. By being consistent in both what it says and does, this company is engaged in _____.
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In relationship marketing, companies understand that they must be consistent in both what they say and what they do.
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Which of the following is true about the impact of advertising on the society and the economy?
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Advertising has been a major factor in improving the standard of living in the United States and around the world.
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In the 1970s, a new American consumer movement grew out of the widespread disillusionment following:
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the Vietnam War.
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In which of the following ways does advertising add value to a brand?
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By making products better known
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Advertising helps keep prices down by:
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encouraging competition.
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Which of the following functions does advertising serve in countries where consumers have more income to spend after their physical needs are satisfied?
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It stimulates innovation and new products.
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Criticisms that focus on the style of advertising, saying it's deceptive or crafty, are referred to as _____.
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short-term manipulative arguments
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_____ refers to exaggerated, subjective claims that can't be proven true or false.
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Puffery
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Which of the following statements about deceptive advertising is true?
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Puffery becomes deceptive when taken literally.
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An ad for a beauty product claimed that its skin-whitening properties could "cure the blackness of the darkest Africans." Watchdog groups are most likely to accuse such an ad of _____.
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perpetuating of a stereotype
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A socially responsible company is most likely to:
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act in the interest of the community.
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Limitation of freedom of commercial speech threatens every legal business in America primarily because any limitation on the freedom to advertise:
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automatically provides huge, monopolistic advantage to the category leaders.
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A cease-and-desist order:
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is issued to prohibit further use of deceptive or unfair advertisements.
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The advertising business has evolved into four distinct groups. Which of the following is not one of these groups?
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Customers
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Advertisers are often referred to as:
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Clients
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Advertising is organized around four distinct groups. The _____ group includes the photographers, the illustrators, video production houses, and digital service bureaus.
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Suppliers
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A petroleum company ran a series of commercials in which they asked consumers how they could improve and preserve the natural environment. After consumers responded to the ad, a spokesperson explained how the company was doing more than its share to protect the environment. These commercials are examples of _____ advertising.
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institutional
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Local advertisers and national advertisers differ in terms of:
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focus, time orientation, and resources.
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Multinationals that use a standardized approach to marketing and advertising in all countries in which they do business are called:
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global marketers.
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Business-to-business advertising agencies charge their clients service fees because:
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the standard agency commission does not cover agency costs.
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The _____ is in charge of the nonverbal communication portion of an ad.
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Art Director
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An ad agency in Atlanta, Georgia, buys a quarter-page ad in a golfing magazine for a travel agency that specializes in preparing all-inclusive, hassle-free golf travel packages, on a 15 percent commission basis. The cost of the ad is $300. How much money should the agency pay the publication?
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$255
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Which of the following statements is true about a speculative presentation?
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It is a presentation prepared by an agency to demonstrate its capabilities to a prospect.
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Blue Tiger decides that it needs to partner with an advertising agency. Since this is the first time the company has chosen to work with an agency, it is unsure of how to go about finding one. Which of the following is likely to provide the best outcome for finding a qualified agency?
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use an agency review consultant
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Blue Tiger narrows the list of possible agencies to three firms. In choosing a finalist, it wants to get a feel for how each firm would handle the Blue Tiger account. The best way to do this would be to ask each finalist to
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do a speculative presentation.
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Blue Tiger becomes aware that one of the agencies listed as a finalist handles a competitor of Blue Tiger. Blue Tiger should
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require that the agency resign from the competitor's account if selected.
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Blue Tiger makes a decision to hire one of the finalists, an agency called G, B, & H. Blue Tiger explains to the agency that it uses mail catalogs to attract virtually all of its customers. G, B, & H agrees that direct mail should be part of the media mix and agrees to help with catalog design. Because it is using the postal system, the compensation system that Blue Tiger should propose could logically be
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a markup arrangement in which the agency's time, materials, and costs are calculated and a surcharge is added.
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The CEO of G, B, & H proposes that she and Blue Tiger's CEO have lunch on a monthly basis. She explains that this can assist with avoiding communication problems. Blue Tiger's CEO should respond by
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accepting. This seems like a sound way to keep open lines of communication between agency and client.
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The ad features elaborate singing and dancing. The song's key lyrics, "Un poquito de lovin," has a close connection to McDonald's famous tagline, "I'm lovin it." This relates to your text's suggestion that national, as compared to local, advertisers have a more _________ focus.
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Strategic
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The team that wrote and scripted the ad works ultimately reports to Álvar Suñol, who joined the agency in February of 2014 after he was recruited from Bassat Ogilvy in Madrid. As the person responsible for the creative work that comes from the agency, you can guess that his title is:
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Creative Director
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This ad, produced in 2015, features Dominican-American performer Leslie Grace. Grace confronts writer's block while composing in a McDonald's restaurant before a restaurant worker inspires her with song and choreography. The ad was created for Univision, a Spanish language U.S. network. What type of ad agency do you think created this spot?
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A general consumer agency serving a specialized market
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_____ markets include millions of firms that buy products used to produce other goods and services.
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Industrial
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_____ suggest that learning occurs when consumers associate stimuli or behaviors with things they desire.
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Conditioning theories
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Which of the following is true of the peripheral route to persuasion?
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Consumers form few brand beliefs, attitudes, or purchase intentions.
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What is meant by habit?
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It refers to the acquired behavior pattern that becomes nearly or completely involuntary.
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An American restaurant opened a new store at a foreign location. Despite good advertising, the store suffered huge losses. The people of the foreign country refused to enter the store because beef was a part of the menu. Which of the following interpersonal influences affected the consumer behavior of the foreign country?
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Culture
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_____ that affect a consumer's final purchase decision include time, place, and environment.
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Nonpersonal influences
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A company prospers only if it can attract and keep customers who are willing and able to pay for its goods and services.
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True
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Before a stimulus can be perceived, it must first penetrate a set of psychological screens.
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False
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Sociologists believed that people in the same social class tended toward similar attitudes, status symbols, and spending patterns.
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True
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The theory of cognitive dissonance holds that people strive to justify their behavior by reducing the inconsistency between their beliefs and reality.
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True
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Visualize the steps involved in the typical research process
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1. Situation Analysis 2. Informal Research 3. Research Objectives 4. Formal Research 5. Report Findings
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Kraft needed to know what the best product would be to bring to the chip market. For this reason, Kraft's research efforts would be devoted to developing Ritz Toasted Chip's
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Product Concept
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Kraft examined industry research suggesting that the growth of chip sales was twice that of cracker sales. This industry data, collected by someone other than Kraft, is best described as
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Secondary data
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Focus groups are a useful way to learn from consumers. The data generated from Kraft's focus groups is best described as
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Qualitative
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The focus group suggested that the term "baked" was seen by consumers as lacking in flavor. A better term was "toasted." These observations will be used later by creatives to develop ad copy. The best term to describe research that measures target audience acceptance of creative ideas is
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Creative concept research
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Kraft did research to decide where the Ritz Chip should be placed in a store—the chip aisle with other chips, or the cracker aisle with other Kraft products. The company decided on the latter. Research to make decisions like this (how the product should be displayed, packaged, priced, etc.) is best described as
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Marketing research
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Kraft found that sales of the Ritz chip products were better than expected and that the research activities paid off handsomely. Tracking sales of a product after a campaign is also a kind of research, called
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Posttesting
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Testing for Budweiser included showing consumers the Lost Dog ad and measuring their feelings about the brand and the ad. This kind of research is closest to what your text describes as:
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An attitude test
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The opening vignette suggests that consumers loved the Lost Dog ad, but questioned whether liking an ad focused on a puppy would translate into increased beer sales. The fact that consumer liking did in fact relate positively to sales suggests that liking is a _______ measure of ad effectiveness.
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Valid