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If you ordered a TV commercial to run on a local TV program that could reach 500,000 households for a cost of $1,000,what would your CPM be?


A) $0.50
B) $2.00
C) $2.50
D) $4.50
E) $5.00

F) None of the above
G) B) and E)

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An infomercial is


A) a public service announcement used to notify local citizens of impending danger due to weather or other natural disasters.
B) a form of advertisement whose sole purpose is to entertain.
C) a program-length (30-minute) advertisement that takes an educational approach to communication with potential customers.
D) a direct response TV and radio ad that airs during the late night or weekend mornings.
E) educationally formatted programming that consumers order privately by using the "on demand" services of their cable providers.

F) A) and E)
G) B) and D)

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Advertisements that reinforce previous knowledge of a product are referred to as __________ advertisements.


A) advocacy
B) comparative
C) persuasive
D) informative
E) reminder

F) A) and D)
G) D) and E)

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Life insurance companies like Prudential hope to get you to worry about how your loved ones will provide for themselves once you have passed away.They paint a very gloomy picture of the possible consequences of not having life insurance,and they make a point of recommending that you act immediately because you never know when it is going to be too late.This is an example of a


A) fear appeal.
B) rhetorical appeal.
C) life-cycle appeal.
D) humorous appeal.
E) security appeal.

F) A) and E)
G) A) and B)

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A sales promotion in which consumers are invited to apply their skill or analytical or creative thinking to try to win a prize is referred to as a


A) contest.
B) challenge.
C) competition.
D) sweepstakes.
E) public relations campaign.

F) A) and C)
G) B) and E)

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Advertisements designed to build goodwill or an image for an organization rather than promote a specific product or service are referred to as __________ advertisements.


A) product
B) public service
C) institutional
D) reminder
E) repositioning

F) B) and C)
G) A) and E)

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All of the following statements are true about coupons except which?


A) Coupon usage grew during the last recession and has stayed at these higher levels since then.
B) Companies have decreased their use of coupons as redemption rates have fallen.
C) The number of coupons generated at Internet sites and on mobile phones has been increasing.
D) Online coupons only account for a small percentage of total coupon redemptions.
E) Most coupons are distributed as freestanding inserts in newspapers.

F) C) and D)
G) C) and E)

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Visit California is responsible for promoting tourism in the state and recently ran a successful ad called "Average Joes" to share lifestyle attributes that are popular there.This an example of which type of advertising?


A) reminder institutional
B) competitive institutional
C) pioneering institutional
D) product advocacy
E) product differentiation

F) A) and B)
G) C) and D)

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One disadvantage of using magazines as an advertising medium is


A) the need to craft a simplistic message.
B) the long lead time needed to place an ad.
C) the perishable message.
D) the unproven nature of their effectiveness.
E) the lack of full-color, quality materials.

F) None of the above
G) B) and E)

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When developing the advertising program,specifying __________ helps advertisers with other choices in the process such as selecting media and evaluating a campaign.


A) product or service features
B) time constraints
C) pricing constraints
D) segmentation methods
E) advertising objectives

F) C) and D)
G) D) and E)

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Suppose the following information: The cost of a full-page color ad in the U.S.national edition of The Wall Street Journal (newspaper) is $327,897 and its U.S.audience size is 1,566,027.The cost of a full-page color ad in the U.S.national edition of USA Today (newspaper) is $207,720 and its U.S.audience size is 1,711,696.The cost of a full-page color ad in the U.S.national edition of Bloomberg Businessweek (magazine) is $148,300 with an audience size of 900,000.The cost of a full-page color ad in the U.S.national edition of Sports Illustrated (magazine) is $396,600 and has an audience size of 3,000,000.The cost of a 30-second ad on the most recent Super Bowl telecast is $3,800,000 and has an audience size of 108,400,000.Using this information,which of the five media alternatives has the highest CPM?


A) The Wall Street Journal
B) USA Today
C) Bloomberg Businessweek
D) Sports Illustrated
E) Super Bowl

F) All of the above
G) A) and C)

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National advertising campaigns rarely include newspapers unless in conjunction with local distributors of their products.Exceptions to this would be print versions of


A) The National Enquirer and the National Review.
B) The Wall Street Journal and USA Today.
C) The Daily Beast and the National Enquirer.
D) The Chicago Tribune and the Los Angeles Times.
E) The Christian Science Monitor and the Huffington Post.

F) C) and D)
G) A) and E)

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The Starch test is an example of a(n)


A) sales test.
B) unaided recall test.
C) aided recall test.
D) inquiry test.
E) concept test.

F) A) and B)
G) None of the above

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When developing the advertising program,specifying the advertising objectives helps advertisers with other choices in the process such as selecting media and


A) identifying the target audience.
B) evaluating a campaign.
C) designing the advertising.
D) pretesting the advertising.
E) scheduling the advertising program.

F) B) and E)
G) B) and D)

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When Milk-Bone dog biscuits offered a ball toy for $8.99 and two proofs of purchase,it was using a


A) deal.
B) rebate.
C) coupon.
D) sample.
E) premium.

F) B) and E)
G) All of the above

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The key objective of competitive advertising is to


A) tell people what a product is, what it can do, and where it can be found.
B) show a brand's values and history.
C) reinforce previous knowledge of a product.
D) promote the advantages of one product class over another.
E) persuade the target market to select the firm's brand rather than that of a competitor.

F) B) and C)
G) C) and E)

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Valpak is a firm that sends consumers a package of __________ to stimulate selective demand (encourage the trial) of various products by offering them an immediately discounted price.


A) deals
B) rebates
C) samples
D) premiums
E) coupons

F) C) and D)
G) All of the above

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A pioneering advertisement should


A) tell people what the company values are, and share its successes and advancements.
B) inform the target market about what a product is, what it can do, and where it can be found.
C) show one brand's strengths relative to those of competitors.
D) reinforce previous knowledge of a product.
E) build goodwill or an image for an organization rather than promote a specific product or service.

F) C) and D)
G) A) and B)

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The three primary types of product advertisements are


A) pioneering, institutional, and informational.
B) humor, sex, and fear.
C) pioneering, competitive, and reminder.
D) competitive, subliminal, and institutional.
E) cognitive, affective, and behavioral.

F) B) and C)
G) A) and E)

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The type of appeal used to imply either directly or subtly that the product is more fun or exciting than competitors' offerings is referred to as


A) an authoritarian appeal.
B) a coercive appeal.
C) a family appeal.
D) a humorous appeal.
E) a sex appeal.

F) A) and B)
G) None of the above

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