Question 1

"Comparative advertising":

Accepted Answer

A)   is usually ignored by consumers.
B)   is illegal--according to the FTC.
C)   should be supported by research evidence.
D)   must focus on major consumer benefits to be legal.
E)   None of the above.F) A) and C)
G) A) and E)

Question 2

The fixed commission system of advertising agency compensation is more favored by local retailers than by producers and national intermediaries.

Accepted Answer

A) True 
 B)False

Question 3

Good media buyers know that:

Accepted Answer

A)   many consumer and trade magazines serve only special-interest groups.
B)   the most targeted medium is newspapers.
C)   media costs generally have little relation to audience size or circulation.
D)   television is superior to newspapers or radio.
E)   All of the above.F) A) and B)
G) B) and C)

Question 4

Sales promotion is generally used instead of other promotion methods.

Accepted Answer

A) True 
 B)False

Question 5

Comparative advertising makes specific brand comparisons using actual product names.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following retailers spent the LEAST amount on advertising as a percentage of sales?

Accepted Answer

A)   Amusement parks.
B)   Grocery stores.
C)   Furniture stores.
D)   Jewelry stores.
E)   Women's clothing stores.F) C) and D)
G) A) and B)

Question 7

One of the big problems with using an advertising agency is that the advertiser must stick with the agency for a long time--at least two years--even if the agency's work is not satisfactory.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is NOT an advertising decision?

Accepted Answer

A)   Who the target audience is.
B)   What kind of advertising to use.
C)   Who will do the work.
D)   Which media to use.
E)   What types of coupons will be used.F) A) and B)
G) All of the above

Question 9

All of the following publicity tools are examples of one-way communication from a company to consumers or business customers EXCEPT:

Accepted Answer

A)   videos.
B)   MySpace.
C)   podcasts.
D)   case studies.
E)   commercial white papers.F) C) and E)
G) C) and D)

Question 10

U.S. corporations spend about ________ percent of their sales on advertising.

Accepted Answer

A)   25
B)   35
C)   15
D)   2.5
E)   7.5F) A) and B)
G) C) and E)

Question 11

Advertising spending as a percent of sales dollars is largest for:

Accepted Answer

A)   toys.
B)   business services.
C)   computers.
D)   motor vehicles.
E)   malt beverages.F) D) and E)
G) A) and B)

Question 12

All of the following are examples of publicity tools for interactive communication between a company and consumers or business customers EXCEPT:

Accepted Answer

A)   Facebook.
B)   LinkedIn.
C)   microblogs.
D)   videos.
E)   FourSquare.F) A) and B)
G) D) and E)

Question 13

The largest share of total advertising expenditures in the United States goes for newspaper advertising.

Accepted Answer

A) True 
 B)False

Question 14

All of the following are product-based advertising except

Accepted Answer

A)   institutional advertising.
B)   cooperative advertising.
C)   pioneering advertising.
D)   comparative advertising.
E)   competitive advertising.F) A) and D)
G) A) and C)

Question 15

The "traditional" approach for compensating ad agencies was most favored by:

Accepted Answer

A)   large producers and national intermediaries.
B)   not-for-profit organizations.
C)   academic institutions.
D)   small local retailers.
E)   the Federal Trade Commission.F) C) and D)
G) B) and E)

Question 16

Cookies are a cost-effective way for advertisers to target ads and boost online sales.

Accepted Answer

A) True 
 B)False

Question 17

________ ads are small rectangular boxes that usually include text, graphics, and sometimes video to create interest.

Accepted Answer

A)   Pop-up
B)   Banner
C)   Pop-under
D)   Hover
E)   VirtualF) A) and E)
G) A) and C)

Question 18

The best advertising medium is television, but some advertisers must use other media because they do not have enough money for TV.

Accepted Answer

A) True 
 B)False

Question 19

More money (in the U.S.) is spent on advertising than on sales promotion.

Accepted Answer

A) True 
 B)False

Question 20

Advertising spending as a percent of sales dollars is largest for:

Accepted Answer

A)   soap and detergent.
B)   perfumes and cosmetics.
C)   sporting and athletic goods.
D)   soft drinks and water.
E)   motor vehicles.F) A) and C)
G) B) and E)

Exam 16: Advertising, Publicity, and Sales Promotion

The "traditional" approach for compensating ad agencies was most favored by:

Correct AnswerverifiedShow Answer

Cookies are a cost-effective way for advertisers to target ads and boost online sales.

Correct AnswerverifiedShow Answer

Advertising spending as a percent of sales dollars is largest for:

Correct AnswerverifiedShow Answer

The best advertising medium is television, but some advertisers must use other media because they do not have enough money for TV.

Correct AnswerverifiedShow Answer

One of the big problems with using an advertising agency is that the advertiser must stick with the agency for a long time--at least two years--even if the agency's work is not satisfactory.

Correct AnswerverifiedShow Answer

Comparative advertising makes specific brand comparisons using actual product names.

Correct AnswerverifiedShow Answer

U.S. corporations spend about ________ percent of their sales on advertising.

Correct AnswerverifiedShow Answer

"Comparative advertising":

Correct AnswerverifiedShow Answer

Sales promotion is generally used instead of other promotion methods.

Correct AnswerverifiedShow Answer

The largest share of total advertising expenditures in the United States goes for newspaper advertising.

Correct AnswerverifiedShow Answer

The fixed commission system of advertising agency compensation is more favored by local retailers than by producers and national intermediaries.

Correct AnswerverifiedShow Answer

All of the following publicity tools are examples of one-way communication from a company to consumers or business customers EXCEPT:

Correct AnswerverifiedShow Answer

Which of the following is NOT an advertising decision?

Correct AnswerverifiedShow Answer

More money (in the U.S.) is spent on advertising than on sales promotion.

Correct AnswerverifiedShow Answer

Which of the following retailers spent the LEAST amount on advertising as a percentage of sales?

Correct AnswerverifiedShow Answer

Advertising spending as a percent of sales dollars is largest for:

Correct AnswerverifiedShow Answer

All of the following are examples of publicity tools for interactive communication between a company and consumers or business customers EXCEPT:

Correct AnswerverifiedShow Answer

Good media buyers know that:

Correct AnswerverifiedShow Answer

________ ads are small rectangular boxes that usually include text, graphics, and sometimes video to create interest.

Correct AnswerverifiedShow Answer

All of the following are product-based advertising except

Correct AnswerverifiedShow Answer

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