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Which of the following is true of advertising?


A) It is of less value for new entrants in the market.
B) It ensures constant sales and market share improvements.
C) It influences attitudes, beliefs, and ultimately, consumers' purchases.
D) It can change consumers' deeply rooted values and attitudes.

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

Correct Answer

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Pioneering advertising is heavily used during the _____ of the product life cycle.


A) introductory stage
B) growth stage
C) formative stage
D) conception stage

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

Correct Answer

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If the goal of the promotion plan is to improve the image of the company or the industry, _____ may be used.


A) institutional advertising
B) pioneering advertising
C) competitive advertising
D) comparative advertising

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

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Intermediaries receive push money as a bonus for pushing the manufacturer's brand through the distribution channel.

A) True
B) False

Correct Answer

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Advertising can affect the way consumers rank a brand's attributes.

A) True
B) False

Correct Answer

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_____ is a public relations strategy that involves getting a product, service, or company name to appear in a movie, television show, radio program, magazine, newspaper, video game, video or audio clip, book, or commercial for another product; on the Internet; or at special events.


A) Audience selectivity
B) Product placement
C) Corporate communication
D) Cooperative advertising

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

Correct Answer

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Reach is related to a medium's ratings, generally referred to in the industry as:


A) gross ratings points.
B) cost per rating points.
C) gross review points.
D) target ratings points.

E) C) and D)
F) A) and B)

Correct Answer

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Experiential marketing is the coordinated effort to handle the effects of unfavorable publicity, ensuring fast and accurate communication in times of emergency.

A) True
B) False

Correct Answer

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Magnira Corp., a manufacturer of hygiene and personal care products, launches a new toothpaste "Tidy" that claims to be more effective in maintaining oral hygiene than other brands. The advertisements of Tidy provide valid research information. Which executional style of advertising does Magnira use?


A) Scientific
B) Slice-of-life
C) Spokesperson
D) Mood or image

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

Correct Answer

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Unique selling proposition refers to the process of using game mechanics and a gaming mindset to engage an audience; it is increasingly important for marketers to know about and utilize.

A) True
B) False

Correct Answer

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In the context of the effects of advertising, humorous advertising:


A) is not effective when used to reinforce and remind loyal customers about the benefits of a product.
B) is effective in changing consumers' deeply rooted values and attitudes.
C) is not used to publicize new brands introduced in the market.
D) is effective at shaping attitudes when consumers already have a positive image of an advertised brand.

E) None of the above
F) C) and D)

Correct Answer

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Unlike radio, a magazine has a relatively long life span, which is further increased by a high pass-along rate.

A) True
B) False

Correct Answer

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Unlike magazine advertising, radio advertising:


A) provides maximum flexibility.
B) has longer lead time.
C) poses difficulty in communicating humor.
D) has long-term advertiser commitments.

E) A) and B)
F) C) and D)

Correct Answer

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Eatalia is a popular chain of restaurants for authentic Italian food. Recently, a customer found a dead insect in the pasta he was served. The customer's negative review about the restaurant went viral. Eatalia's Chief Executive Officer (CEO) publicly apologized for the mishap and posted pictures of the restaurant's kitchen, after being fumigated, on several social networking websites. In this scenario, which of the following does Eatalia's CEO demonstrate?


A) Audience selectivity
B) Crisis management
C) Brand switching
D) Media scheduling

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

Correct Answer

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Unlike trade sales promotion methods, consumer sales promotion methods are:


A) targeted at the ultimate consumer market.
B) directed to members of the marketing channel.
C) focused on persuading consumers to make slow purchases.
D) concerned with offering free merchandise and store demonstrations.

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

Correct Answer

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A

Identify a true statement about an advertising campaign.


A) It circumvents the need for post-campaign evaluation.
B) It extends for a defined period of time.
C) It cannot focus on more than one advertising appeal.
D) It does not use humor to promote a theme.

E) A) and D)
F) None of the above

Correct Answer

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Newspapers and magazines have a high noise level.

A) True
B) False

Correct Answer

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Serious or emotional advertisements are largely used to change consumers' deeply rooted values and attitudes.

A) True
B) False

Correct Answer

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New brands with small market shares tend to spend higher on advertising and sales promotions than those with large market shares because:


A) a certain minimum level of exposure is needed to measurably affect purchase habits.
B) spending more will inhibit the advertising response function.
C) returns multiply beyond a certain level of spending.
D) the value of market shares is directly proportionate to the amount of money spent on advertising.

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

Correct Answer

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A

A trade allowance is a price reduction offered by retailers to customers who are buying homogeneous shopping goods.

A) True
B) False

Correct Answer

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False

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