54 test bank with answers for m advertising 2nd edition by aren1

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54 Test Bank for M Advertising 2nd Edition by Arens Multiple Choice Questions - Page 1

Which of the following statements about advertising is true?

1 A It rarely involves branding.

2 B It is usually free or inexpensive.

3 C It has an identifiable sponsor.

4 D It is intended to provide information.

5 E It is restricted to a single medium.

_ has driven the growth of advertising since its earliest

beginnings and has made it one of the hallmarks of the free

enterprise system

1 A The cultural environment

2 B Tactical management strategy

3 C Economics

4 D Literacy

5 E Socialism

Which of the following ages in the evolution of advertising was

characterized by the Chinese inventing paper, Johannes

Guttenberg inventing the printing press, and the Boston Newsletter beginning to carry advertisements that appealed to American

colonists?

1 A Age of reason

2 B Industrial age

3 C Preindustrial age

4 D Industrializing age

5 E Mercantile age

According to the history of advertising, the _ made possible the first advertising formats—posters, handbills, signs, and

newspapers

1 A quill pen

2 B printing press

3 C silk screen

4 D ability to mold lead

5 E ability to copy and draw

_ is the process of creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders

1 A Management

2 B Advertising

3 C Communications

4 D Logistics

5 E Marketing

Since advertising is typically directed to groups of people rather than to individuals, advertising is defined as a:

1 A channel.

2 B subtle medium.

3 C sponsor-driven strategy.

4 D market segmentation strategy.

5 E kind of nonpersonal communication.

The period in the evolution of advertising that extended from the beginning of recorded history to roughly the start of the nineteenth century was called the:

1 A sales era.

2 B positioning age.

3 C industrial age.

4 D industrializing age.

5 E preindustrial age.

Which of the following statements is true about word-of-mouth advertising?

1 A It is not a communication medium.

2 B It is not an advertising medium.

3 C It is a paid form of advertising.

4 D It is an openly-sponsored form of advertising.

5 E It has a structured form.

Which fundamental assumption of free-market economics suggests that people are acquisitive and always want more—for less?

1 A Many buyers and sellers

2 B Absence of externalities

3 C Presence of opportunity costs

4 D Self-interest

5 E Complete information

_ is the structured and composed nonpersonal communication

of information, usually paid for and usually persuasive in nature, about products or ideas by identified sponsors through various media

1 A Marketing

2 B Sales promotion

3 C Advertising

4 D Feedback

5 E Message channeling

As a marketing tool, advertising is most likely used to:

1 A create unfair advantages among competitors.

2 B encourage buyers to compare prices.

3 C control viral commercialization.

4 D increase product use.

5 E create feedback.

Which of the following organizations is most likely to use a public service announcement (PSA)?

1 A The Humane Society

2 B Dell Computer

3 C American Stock Exchange

4 D Delta Airlines

5 E Walmart

During the _ age, manufacturers were principally concerned with production, and the primary burden of marketing fell on the wholesalers

1 A preindustrial

2 B postindustrial

3 C industrializing

4 D industrial

5 E isolation

Which of the following is the best example of a service?

1 A A seminar on how to quit smoking

2 B A gift basket of fruit

3 C Vitamins to improve one's health

4 D Gift wrapping paper sold at a school fund-raiser

5 E A donation of clothes to the Salvation Army

Which of the following is an example of a good?

1 A A medical examination

2 B An Internet provider

3 C A copier

4 D A haircut

5 E A car warranty

When Mollie buys a box of disposable diapers and June purchases

a copy of the Wall Street Journal, both are acting as:

1 A buying centers.

2 B consumers.

3 C product innovators.

4 D strategic points of service.

5 E product adopters.

During the preindustrial age, most advertisements took the form of signs with symbols such as a beer tankard indicating a tavern

because:

1 A most people were illiterate and could not read.

2 B most firms could not afford more sophisticated advertisements.

3 C local laws prohibited advertising in newspapers.

4 D most churches would not approve other forms of advertising.

5 E signs and symbols were considered lucky.

The 4 Ps of the marketing mix are:

1 A product, price, place, and promotion.

2 B product, people, process, and promotion.

3 C people, price, place, and product.

4 D product, process, people, and physical evidence.

5 E place, people, product, and process.

Which of the following would most likely involve a Public Service Announcement (PSA)?

1 A Dell recalling laptops to correct manufacturing defects

2 B Verizon promoting a new data plan with unlimited texting

3 C Walmart advertising year-end discounts and clearance items

4 D American Red Cross promoting blood donation opportunities

5 E A local Chevrolet dealer providing the address of its new showroom

What did the first ad in English advertise?

1 A A plow

2 B A farm

3 C A prayer book

4 D A religious service

5 E A pub

Advertising reaches us through various channels of communication referred to as:

1 A feedback mechanisms.

2 B media.

3 C encoding tools.

4 D distribution methods.

5 E information processes.

In the context of free-market economics, the use of taxation and/or regulation to compensate for or eliminate the social cost when the sale or consumption of products may benefit or harm other people who are not involved in the transaction and didn't pay for the

product, falls under the assumption of:

1 A many buyers and sellers.

2 B absence of externalities.

3 C presence of opportunity costs.

4 D self-interest.

5 E complete information.

Benjamin Franklin:

1 A was the first American known to use illustrations in ads.

2 B was the first to print color ads.

3 C was the first American to use copy in ads.

4 D printed ads with no clutter.

5 E minimized white space in ads.

Of all the business functions, _ is the only function whose primary role is to bring in revenue

1 A finance

2 B operations management

3 C human resource management

4 D marketing

5 E accounting

54 Free Test Bank for M Advertising 2nd Edition by Arens Multiple Choice Questions - Page 2

The term _ best explains why most automobile manufacturers produce similar products yet consumers have preferences for

specific brands

1 A market segmentation

2 B market formatting

3 C product differentiation

4 D strategic marketing

5 E product segmentation

A decade after World War I ended, a significant event occurred that caused consumer sales resistance, corporate budget cutting, and advertising expenditures to plummet This event was:

1 A the imposition of a personal income tax by the federal government.

2 B the defeat of Germany and its default on loans granted by the Allies.

3 C the stock market crash and the beginning of the Great Depression.

4 D the creation of the World Bank, which made loans available to state and federal banks.

5 E strong challenges to the consumer credit system as established by the federal government.

The Cold War ended when the Berlin Wall came down and Western companies and financiers began to invest heavily in what were once called the Warsaw Pact countries Big multinational

companies and their advertising agencies went on a binge, buying other big companies and adding a new term to the financial lexicon This term was:

1 A partnering.

2 B capitalism.

3 C oligopoly.

4 D mega merger.

5 E service economy.

_ is a type of marketing used to slow down the demand for certain products, such as energy-consuming goods

1 A Co-marketing

2 B Demarketing

3 C Environmental advertising

4 D Eco-marketing

5 E Systems marketing

Due to mobile phones, PCs, the Internet, e-mail, and cable TV, advertising is evolving into a(n):

1 A two-way medium.

2 B broadcast medium.

3 C analog medium.

4 D narrowcasting medium.

5 E reiterative advertising medium.

Which term best refers to items such as detergent, nail polish, soda, and pretzels?

1 A Customized packaged goods

2 B Consumer packaged goods

3 C In-house products

4 D Branded products

5 E Serviceable goods

Which of the following occurred near the end of the nineteenth

century and accelerated the usage of print ads by manufacturers?

1 A World War I finally ended.

2 B Global advertising agencies formed.

3 C Newspaper advertisements decreased in cost.

4 D The United States reached a 90 percent literacy rate.

5 E English was established as the official language of the United States.

By publicizing the material, social, and cultural opportunities of a free enterprise society, advertising has encouraged:

1 A increased productivity by both management and labor.

2 B interactive consumption on a global level.

3 C relationship marketing.

4 D a service economy.

5 E nonprofit organizations.

What role did the firm N W Ayer & Son play in the history of U.S advertising?

1 A It was the first printer to use illustrations in its ads.

2 B It was the first manufacturer to use national advertising.

3 C It was the first ad agency to charge a commission based on the "net cost of space."

4 D Its advertising claims were the first examined by the Food & Drug

Administration.

5 E It published the first colonial newspaper with advertisements for local businesses.

With respect to the evolution of advertising in the United States, the _ age started around the turn of the twentieth century and lasted well into the 1970s

1 A service marketing

2 B relationship marketing

3 C industrial

4 D production

5 E mercantile

Two related economic factors characterized the marketing world of the late 1980s and early 1990s in the United States One of those factors was:

1 A an aging upper management that led to a lack of innovation.

2 B the growing burden of financial debt, which forced governments to return to high tax policies directed toward business.

3 C the implementation of affirmative action policies.

4 D the aging of traditional products and a corresponding growth of

competition.

5 E the development of strong consumer trust.

The _ age, which began around 1980, has been a period of cataclysmic change due to increased environmental awareness

1 A service-market

2 B post-production

3 C market relationship

4 D postindustrial

5 E customization

During a drought in the southeastern United States, marketing

campaigns were implemented to encourage consumers to use less water by increasing rates and issuing fines to those who used more than their fair share A marketing effort such as this would best be classified as:

1 A co-marketing.

2 B eco-marketing.

3 C demarketing.

4 D relationship marketing.

5 E cause marketing.

In 2005, Comcast created AZN, a television network for Asian

Americans What type of strategy did Comcast use when it found this unique group of consumers whose specific needs were not being addressed by a cable station?

1 A Positioning

2 B Demarketing

3 C Product differentiation

4 D Market aggregation

5 E Market segmentation

Which of the following is the largest advertising medium in terms of advertising revenues?

1 A Internet

2 B Newspapers

3 C Magazines

4 D Television

5 E Radio

Many urban hotels are creating women-only floors for female

travelers Enhanced security and toiletries more likely to appeal to women such as bubble bath and curling irons are made available

To specifically target women who are traveling on their own, these hotels have implemented a _ strategy

1 A product segmentation

2 B targeted diversification

3 C demarketing

4 D market segmentation

5 E market aggregation

The industrializing age of the nineteenth century saw the shift of orientation from:

1 A production to consumption.

2 B sales to consumption.

3 C sales to customer relationship management.

4 D production to sales.

5 E consumption to production.

To differentiate its candy from that produced by other candy

manufacturers, the manufacturer of Green & Black brand

confections advertises that it is the only company to make its

chocolate organically This commitment to market only organic chocolate is an example of a(n):

1 A perceptual value.

2 B unique selling proposition.

3 C economic differential.

4 D economic advantage.

5 E differential value.

A(n) _ 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

1 A logistical strategy

2 B universal sales promotion

3 C positioning strategy

4 D market aggregation strategy

5 E promotional mix

_ is a process by which marketers search for unique groups of people whose needs can be addressed through more specialized products

1 A Product segmentation

2 B Targeted diversification

3 C Demarketing

4 D Market segmentation

5 E Market aggregation

Which of the following statements best describes how Volney B Palmer influenced advertising?

1 A In 1729, he became the first to use "white space" and illustration in ads.

2 B In 1841, he set up the first professional advertising agency in the United States.

3 C In 1869, his advertising agency becomes the first to prepare ads for

manufacturers.

4 D In 1888, he founded the Printer's Ink magazine.

5 E In 1912, he became the first advertising agent to reach $2 million in sales.

As the U.S economy slowed in the 1980s, which cost-effective method did companies use to trim their advertising budgets?

1 A Mass market advertising

2 B Viral marketing

3 C Sales promotions

4 D Internet advertising

5 E Word-of-mouth advertising

There is some of the most beautiful scenery in the world at the Banff National Park in Canada Too many tourists have led to

potential ecological disasters in the park In response, park officials

are trying to decrease the number of visitors to the park They could most likely use _ to accomplish this objective

1 A positioning

2 B eco-marketing

3 C co-marketing

4 D demarketing

5 E relationship marketing

What type of strategy is being used by a Web site like

www.CNNMoney.com when it describes itself as "a one-stop

destination covering everything a small-business owner needs to know" in order to associate itself with benefits that are important to small business owners?

1 A Market penetration

2 B Target differentiation

3 C Positioning

4 D Market segmentation

5 E Sales promotion

Which term refers to the distinctive benefits that make a product different than any other?

1 A Perceptual value

2 B Unique selling proposition

3 C Economic differential

4 D Economic advantage

5 E Differential value

Why did magazines become the ideal medium for advertising in the 1840s?

1 A Magazines offered the best quality reproduction.

2 B Magazines were less expensive than newspapers.

3 C Magazines were read more often than newspapers.

4 D Advertisers were tired of using newspapers to carry their messages.

5 E No taxes were imposed on magazine advertising unlike newspaper

advertising.