Question 1

Which statement is most likely true about the affordable method of setting an advertising budget?
A) Spending on advertising is calculated based on the financial objectives a company wishes to accomplish.
B) Spending on advertising is calculated after operating expenses, and capital outlays are deducted from total revenues.
C) Spending on advertising is based on a predetermined percentage of current or forecasted sales for the year.
D) Spending on advertising is calculated as a percentage of the unit sales price.
E) Spending on advertising is based on a competitor's advertising outlays.

Accepted Answer

The answer of Which statement is most likely true about...

Question 2

Which of the following is an example of branded entertainment?
A) a company placing its product in a movie scene
B) a company using a celebrity to endorse a product
C) a company airing its advertisements in movie theaters
D) a company using an acclaimed movie director to film an advertisement
E) a company using a famous song in its advertisement

Accepted Answer

Branded entertainment refers to the integration of a brand's products or messages into entertainment content such as TV shows, movies, and video games. Placing a product in a movie scene is a prime example of branded entertainment.

Question 3

Which of the following best describes the term "Madison and Vine"?
A) utilizing the slice of life style of advertising
B) emphasizing reach over impact in advertising
C) using social media for advertising a brand
D) merging advertising with entertainment
E) voicing social concerns through advertising

Accepted Answer

"Madison and Vine" refers to the merging of advertising (represented by Madison Avenue) with entertainment (represented by Hollywood's famous street, Vine). This concept is often used in modern advertising to create compelling and entertaining content that incorporates product placement or brand messaging.

Question 4

Which of the following best describes the personality symbol style of advertising?
A) using ordinary people to show how a product affects them in their daily lives
B) using scientific evidence to support claims about a product in an advertisement
C) using an animated character or mascot to represent a product in an advertisement
D) using a technical expert to recommend a product in an advertisement
E) using a celebrity to endorse a product in an advertisement

Accepted Answer

Personality symbol style of advertising involves using an animated character or mascot to represent a product in an advertisement. This style aims to create a memorable and likable image for the product, as well as associate positive traits and emotions with it. Examples of this style include Tony the Tiger for Kellogg's Frosted Flakes and the Geico Gecko.

Question 5

Lazer Telecom,a cell phone manufacturer,has signed a contract with a production house to fund a new movie.The conditions of the agreement state that the movie will feature Lazer Telecom phones onscreen.What kind of advertising technique has Lazer Telecom most likely adopted in this example?
A) geofencing
B) advertainment
C) product placement
D) vertical integration
E) subliminal advertising

Accepted Answer

Lazer Telecom has adopted the technique of product placement in this example, as they are funding a movie in exchange for featuring their phones on the screen.

Question 6

According to the text,the most logical budget-setting method in advertising is the ________ method.
A) adaptive-control
B) objective-and-task
C) competitive-parity
D) affordable
E) percentage-of-sales

Accepted Answer

The most logical budget-setting method in advertising is the objective-and-task method, which involves setting specific objectives for the advertising campaign and then determining the tasks required to achieve those objectives. The cost of each task is then estimated and added to arrive at the total budget for the campaign. This method ensures that the budget is aligned with the specific goals of the campaign, and helps to justify the expenses incurred.

Question 7

Which of the following media is most suitable for advertising a product that needs to be demonstrated?
A) television
B) radio
C) newspaper
D) magazine
E) billboard

Accepted Answer

Television is the most suitable media for advertising a product that needs to be demonstrated as it allows for audio-visual presentation. This allows the product to be shown in action which can be very effective in convincing potential customers to buy it.

Question 8

What is the primary advantage of using television as an advertising medium?
A) It involves a low cost per exposure.
B) It supports a high degree of audience selectivity.
C) It involves low absolute costs.
D) It contains low ad clutter.
E) It permits prominent exposure.

Accepted Answer

The answer of What is the primary advantage of using...

Question 9

In the competitive-parity method of setting an advertising budget,the budget is set based on ________.
A) a percentage of future sales
B) the total revenues that a company makes
C) the amount spent by similar companies in the same industry
D) objectives set by the company and the cost required to accomplish them
E) a percentage of current sales

Accepted Answer

The competitive-parity method sets the advertising budget based on the amount spent by similar companies in the same industry. This approach assumes that companies within the same industry should spend similar amounts on advertising in order to compete effectively.

Question 10

Which statement is most likely true about the affordable method of setting an advertising budget?
A) It typically overlooks how promotion affects sales.
B) It always results in overspending on advertising.
C) It is especially ideal for long-range market planning.
D) It leads to an overly fixed annual promotion budget.
E) It is most often used by firms with large advertising budgets.

Accepted Answer

The affordable method of setting an advertising budget is based on allocating funds for promotion after accounting for all other expenses, rather than considering the relationship between advertising and sales. Therefore, it is likely to overlook how promotion affects sales.

Question 11

Which of the following is an example of a firm utilizing public relations as a promotion tool?
A) a firm using its personal sales force at an expo to sell its products
B) a firm sending its catalog directly to customers through e-mail
C) a firm informing customers of special discounts on its Web site
D) a firm providing interesting information about a product to the news media
E) a firm using a celebrity to endorse a product in a television commercial

Accepted Answer

Public relations involves building and maintaining positive relationships between a company and the public or media. Providing interesting information about a product to the news media is an example of utilizing public relations as a promotion tool. This can lead to positive media coverage and increased brand awareness. Choices A, B, C and E are examples of other promotion tools such as personal selling, direct marketing, sales promotion and celebrity endorsement, respectively.

Question 12

An ad that shows real-life examples of people whose lives have changed due to a product is an example of the ________ style of advertising.
A) scientific evidence
B) testimonial evidence
C) technical expertise
D) mood or image
E) fantasy

Accepted Answer

The ad that shows real-life examples of people whose lives have changed due to a product is an example of testimonial evidence. Testimonials are when real people talk about their experiences with a product or service, and this type of advertising is a persuasive technique to gain consumer trust and convince them of the product's effectiveness.

Question 13

Which of the following is a disadvantage of using a magazine as an advertising medium?
A) It has a poor pass-along readership.
B) It involves high costs.
C) It has low geographic selectivity.
D) It has low credibility and image.
E) It consists of low-quality reproduction.

Accepted Answer

Using a magazine as an advertising medium involves high costs, as compared to other mediums such as newspapers or online advertising.

Question 14

Which method of setting advertising budgets best helps management think about the relationship between promotion spending,selling price,and profit per unit?
A) adaptive-control method
B) objective-and-task method
C) competitive-parity method
D) affordable method
E) percentage-of-sales method

Accepted Answer

The percentage-of-sales method ties the advertising budget to a certain percentage of past or anticipated sales, helping management to consider how promotion spending relates to selling price and profit per unit. This method inherently encourages reflection on the financial impact of advertising relative to sales revenue and profitability.

Question 15

What is the primary disadvantage of outdoor advertising?
A) It provides low flexibility.
B) It permits low repeat exposure.
C) It provides poor positional selectivity.
D) It provides little audience selectivity.
E) It has high message competition.

Accepted Answer

The primary disadvantage of outdoor advertising is that it provides little audience selectivity. Unlike other forms of advertising, outdoor ads are not targeted towards a specific demographic or geographic location, and thus have a lower chance of reaching their intended audience. This can result in a lower return on investment for advertisers.

Question 16

Trainstar,a sportswear equipment manufacturer,releases a new line of energy drinks called VitaZing.The television ad for the energy drink shows people jogging,working out in a gym,and doing aerobics.The actors then take a break to drink VitaZing,which visibly re-energizes them and leads them to continue exercising.Which advertising style is most likely used in the VitaZing ad?
A) scientific evidence
B) technical expertise
C) personality symbol
D) testimonial evidence
E) lifestyle

Accepted Answer

The ad is most likely using the lifestyle advertising style, as it is portraying a specific type of lifestyle (fitness-focused) that is associated with the use of the product (VitaZing energy drink). The actors in the ad are shown performing various exercise activities, and the energy boost provided by the product is highlighted as enabling them to continue exercising. This style relies on creating an emotional connection between the product and the lifestyle it represents.

Question 17

Which of the following is a disadvantage of standardization of advertising messages?
A) It gives rise to higher advertising costs.
B) It complicates the advertising process.
C) It is less responsive to local market needs.
D) It tends to suffer from poor coordination.
E) It gives rise to inconsistent messages.

Accepted Answer

Standardization of advertising messages may not be responsive to the specific needs and preferences of a local market, which could result in less effective advertising campaigns.

Question 18

The aim of ________ is to make ads so engaging or useful that people want to watch them.
A) branded entertainment
B) advertainment
C) social advertising
D) subliminal advertising
E) infotainment advertising

Accepted Answer

Advertainment aims to make ads so engaging or useful that people want to watch them.

Question 19

The ________ style of advertising shows ordinary people clearly using a product in a normal setting.
A) personality symbol
B) slice of life
C) mood or image
D) testimonial evidence
E) technical expertise

Accepted Answer

The "slice of life" style of advertising involves showing ordinary people using a product in a realistic setting. This style attempts to create a personal connection between the audience and the advertisement.

Question 20

Which of the following is a disadvantage of using online,mobile,and social media for advertising?
A) The costs are high.
B) Audience selectivity is low.
C) The audience controls ad exposure.
D) The interactive capabilities are low.
E) There is little scope for personalization.

Accepted Answer

The audience has control over their ad exposure on online, mobile, and social media platforms. This means that they can skip, block, or ignore ads completely, reducing the effectiveness of advertising efforts.

Quiz 12: Engaging Consumers and Communicating Customer Value: Advertising and Public Relations

Which statement is most likely true about the affordable method of setting an advertising budget?

Which of the following is an example of branded entertainment?

Which of the following best describes the term "Madison and Vine"?

Which of the following best describes the personality symbol style of advertising?

Lazer Telecom,a cell phone manufacturer,has signed a contract with a production house to fund a new movie.The conditions of the agreement state that the movie will feature Lazer Telecom phones onscreen.What kind of advertising technique has Lazer Telecom most likely adopted in this example?

According to the text,the most logical budget-setting method in advertising is the ________ method.

Which of the following media is most suitable for advertising a product that needs to be demonstrated?

What is the primary advantage of using television as an advertising medium?

In the competitive-parity method of setting an advertising budget,the budget is set based on ________.

Which statement is most likely true about the affordable method of setting an advertising budget?

Which of the following is an example of a firm utilizing public relations as a promotion tool?

An ad that shows real-life examples of people whose lives have changed due to a product is an example of the ________ style of advertising.

Which of the following is a disadvantage of using a magazine as an advertising medium?

Which method of setting advertising budgets best helps management think about the relationship between promotion spending,selling price,and profit per unit?

What is the primary disadvantage of outdoor advertising?

Which of the following is a disadvantage of standardization of advertising messages?

The aim of ________ is to make ads so engaging or useful that people want to watch them.

The ________ style of advertising shows ordinary people clearly using a product in a normal setting.

Which of the following is a disadvantage of using online,mobile,and social media for advertising?