Deck 7: Decision Making and the Influence of Advertising

Question 1

An average child views about how many TV commercials every day?

A)100
B)50
C)200
D)10

Answer 1

C

Question 2

Ads like ʺKeep America Beautifulʺ and ʺFriends donʹt let friends drive drunkʺ are examples of

A)jingles.
B)FCCʹs.
C)PSAʹs.
D)subliminal advertising.

Answer 2

C

Question 3

Effective advertising will have all of the following characteristics EXCEPT

A)attention grabbing power.
B)memory.
C)the ability to trade.
D)exposure.

Answer 3

C

Question 4

There comes a point when comparison shopping is not efficient.

Question 5

Short phrases in advertising are called

A)jingles.
B)slogans
C)brands.
D)taglines.

Question 6

End messages in advertising are called

A)slogans
B)brands.
C)jingles.
D)taglines.

Question 7

A negative result from searching and making a poor choice is called a consumer payoff.

Question 8

Technological obsolescence means that a product loses value even though it is not worn out yet because it can be replaced with a more technologically advanced product.

Question 9

Music in advertising is referred to as

A)slogans
B)brands.
C)taglines.
D)jingles.

Question 10

When a person buys a candy bar at the check out counter without thinking of the cost, benefits, values, or needs, he has demonstrated

A)style.
B)Parkinsonʹs Law.
C)impulse buying.
D)a secondary search.

Question 11

The Pareto principle is also known as the

A)60-40 rule.
B)70-30 rule.
C)90-10 rule.
D)80-20 rule.

Question 12

The BEST example of a product that experiences technological obsolescence is

A)a computer.
B)groceries.
C)clothing.
D)a textbook.

Question 13

Program long advertisements on TV are called

A)consumer payoff.
B)game shows.
C)infomercials.
D)subliminal advertising.

Question 14

Good consumer decisions are hard to make because

A)consumers have become farther removed from the origin of products
B)the number and complexity of products has increased
C)time is limited
D)all of the above

Question 15

When advertising is transmitted unconsciously to consumers it is called

A)locking power.
B)bait and switch.
C)consumer payoff.
D)subliminal advertising.

Question 16

If a face cream company claims that its product will improve a consumerʹs social life, this is an example of

A)branding.
B)association.
C)puffery.
D)bait and switch.

Question 17

Counter-advertising is also known as

A)advantage advertising.
B)aversive advertising.
C)opposite advertising.
D)corrective advertising.

Question 18

According to the FTC, if an ad contains misrepresentations or omissions, it is

A)defiant.
B)unusual.
C)cruel.
D)deceptive.

Question 19

When the FTC notifies an advertiser that its ads are deceptive and asks the adviser to stop running the ads, this first level of enforcement is called

A)a consent decree.
B)consumer payoff.
C)infomercials.
D)a cease-and-desist order.

Question 20

Parkinsonʹs Law shows

A)elasticity of demand and consumption behavior.
B)elasticity of quantity and consumption behavior.
C)elasticity of time and consumption behavior.
D)elasticity of price and consumption behavior.

Question 21

Taste influences advertising.

Question 22

Consumers use rules of thumb concerning price, time, and style to help them make decisions.

Question 23

Advertising that exaggerates the characteristics of a product is called
.

Question 24

The Magnuson-Moss Warranty-FTC Improvement Act of 1975 empowers the FCC to obtain consumer redress.

Question 25

Corrective advertising corrects previously false claims about a product.

Question 26

Direct mass mailings are highly effective.

Question 27

PSAʹs are messages to correct previously false claims about a product.

Question 28

For advertising to be effective, it needs to keep up with trends in ethnic and racial preferences.

Question 29

A demand constraint is the relationship between what one can spend and what one will spend.

Question 30

Cease-and-desist orders are some of the FTCʹs strongest actions against deceptive advertising.

Question 31

The ability to trade means trading one good for another.

Question 32

Public service announcements are messages on behalf of a good cause.

Question 33

The 80-20 rule is also known as the .

Question 34

Advertising is any paid form of non-personal communication about an organization, product, service, or idea by an identified sponsor.

Question 35

Memorability is also called .

Question 36

The relationship of between what one can spend and what one will spend is called
.

Question 37

Memorability or locking power calls on recognition and recall memory.

Question 38

Puffery is illegal.

Question 39

Defined as any paid form of non-personal communication about an organization, product, service, or idea by an identified sponsor, , is an important aspect of the consumer buying process.

Question 40

Price variation refers to when a single seller may charge different consumers different prices at different times for the same item.

Question 41

Explain why consumers might use Rules of Thumb rather than conducting an extensive information search.

Question 42

List the four qualities effective advertising has.

Question 43

What are the FTCʹs three classifications for types of advertisements. Define each. Where (what kind of medium)are you likely to find each advertised?

Question 44

Describe the difficulties associated with making good decisions.

Question 45

proposes that individuals vary in the extent to which they wish to be different.

Question 46

Define technological obsolescence and one example.