Question 1

When consumers have well-established brand preferences,as often happens during the decline stage of a product's life cycle,what is the most appropriate combination of advertising and price elasticity to apply? 
A) build image via increased advertising 
B) grow volume via price discounting 
C) decrease advertising and discount prices 
D) maintain the status quo 
E) increase advertising and/or discount prices

Accepted Answer

The answer of When consumers have well-established brand preferences,as often...

Question 2

Advertising is costly and its effects are often _____.
A) certain 
B) uncertain 
C) predetermined 
D) constant 
E) detrimental

Accepted Answer

Advertising can have uncertain effects, as it is influenced by various external factors such as competition, economy, and consumer behavior. While it can be an effective tool for promoting a product or service, there is no guarantee that it will lead to increased sales or brand awareness. Therefore, the effectiveness of advertising is often difficult to predict and can be uncertain.

Question 3

Most successful companies are aware that _____ spending is the key factor underlying successful advertising.
A) increased 
B) decreased 
C) consistent investment 
D) maximum 
E) minimum

Accepted Answer

Consistent investment in advertising spending is important for successful advertising. It is not necessarily about spending a maximum amount or a minimum amount, but rather about maintaining a steady investment over time. Decreased spending may lead to a decrease in advertising effectiveness, while increased spending may not necessarily lead to proportional increases in success.

Question 4

PepsiCo's commercials that encourage people to purchase Mountain Dew is an example of creating _____ demand.
A) elastic 
B) primary 
C) secondary 
D) derived 
E) joint

Accepted Answer

PepsiCo's commercials for Mountain Dew aim to create secondary demand, which is demand for a specific brand within a product category, rather than the product category itself.

Question 5

An advertisement that was designed to keep a company's brand fresh in the consumer's memory performs the advertising function of _____.
A) informing 
B) persuading 
C) adding value 
D) reminding 
E) assisting other company efforts

Accepted Answer

The advertisement is designed to remind the consumer of the company's brand, rather than informing, persuading, or adding value. It is also not necessarily assisting other company efforts, as its primary purpose is to keep the brand fresh in the consumer's memory.

Question 6

Advertising that teaches new uses for existing brands is known as _____.
A) elaboration advertising 
B) top-of-mind awareness advertising 
C) primary demand advertising 
D) usage expansion advertising 
E) alternative use advertising

Accepted Answer

Usage expansion advertising is designed to teach consumers new uses for existing products, encouraging them to purchase the product for new purposes. This can help to increase sales and strengthen brand loyalty.

Question 7

Critics of the advertising = information view contend that a number of factors other than advertising also account for brand loyalty and prince insensitivity.

Accepted Answer

The answer of Critics of the advertising = information view...

Question 8

Which combination of advertising and price elasticity should be applied in a situation where there are mature market goods and consumers have complete information about most brands in the category? 
A) increase advertising and/or discount prices 
B) maintain the status quo 
C) build image via increased advertising 
D) grow volume via price discounting 
E) decrease prices and advertising expenses

Accepted Answer

The answer of Which combination of advertising and price elasticity...

Question 9

To distinguish advertising,which typically is conveyed via print,TV,radio,the Internet,etc.,from person-to-person forms of communication,including personal selling and word of mouth,the term _____ communication is used.
A) mediated 
B) paid-for 
C) commercial 
D) technological 
E) focused

Accepted Answer

Mediated communication refers to communication that is conveyed through some type of medium or channel, such as print, TV, radio, or the Internet. This distinguishes it from person-to-person forms of communication, such as personal selling and word of mouth.

Question 10

An example of usage expansion advertising is _____.
A) a soft drink manufacturer who is the first to introduce a five-liter plastic bottle 
B) a manufacturer of baking soda promoting a new use for the product 
C) a retailer who doubles the promotional budget 
D) a retailer that was using only newspaper advertising expanding into radio advertising 
E) a gas station advertising that it is open 24 hours a day

Accepted Answer

Usage expansion advertising involves promoting a new use for an existing product. The example of a manufacturer of baking soda promoting a new use for the product fits this definition.

Question 11

Creating demand for an entire product category is known as _____ demand.
A) joint 
B) elastic 
C) derived 
D) primary 
E) secondary

Accepted Answer

Creating demand for an entire product category is referred to as primary demand. This involves promoting the benefits and the need for a product category rather than a specific brand.

Question 12

Ad spending in the United States has averaged approximately ______ percent of the country's gross domestic product.
A) 2.2 
B) 4.7 
C) 15 
D) 22 
E) 47

Accepted Answer

Ad spending in the United States has historically averaged about 2.2 percent of the country's gross domestic product (GDP). This figure reflects the proportion of economic activity dedicated to advertising across various media and platforms.

Question 13

Which of the following is an example of an advertisement that was designed to create primary demand? 
A) "Weekends were made for Michelob." 
B) "Orange juice isn't just for breakfast anymore." 
C) "Like a good neighbor, State Farm is there." 
D) "You're in good hands with Allstate." 
E) "Gillette: the best a man can get."

Accepted Answer

The advertisement "Orange juice isn't just for breakfast anymore" is designed to create primary demand by expanding the usage occasions for orange juice beyond just breakfast.

Question 14

The Beef Council sponsored a variety of advertisements encouraging people to eat more meat.These advertisements were designed to create _____ demand.
A) secondary 
B) derived 
C) elastic 
D) joint 
E) primary

Accepted Answer

The advertisements sponsored by the Beef Council aim to increase the overall demand for meat by influencing consumer preferences and attitudes directly, which is an example of creating primary demand. Primary demand promotion focuses on increasing demand for a product category rather than a specific brand.

Question 15

_____ is a paid,mediated form of communication from an identifiable source,designed to persuade the receiver to take some action,now or in the future.
A) Public relations 
B) Advertising 
C) Communications 
D) Marketing 
E) Marcom

Accepted Answer

Advertising is a form of communication where a company pays for a message to be promoted through various media channels, such as TV, radio, print, social media, and online platforms. It is designed to influence the target audience to take action, whether it is to purchase a product, visit a website, sign up for a service, or simply create brand awareness. Unlike public relations, which focuses on building relationships and managing the reputation of a company, advertising is a more direct and controlled method of communication that seeks to drive specific outcomes.

Question 16

Which is NOT a function performed by advertising? 
A) persuading 
B) reminding 
C) adding value 
D) assisting production 
E) informing

Accepted Answer

Assisting production is not a function performed by advertising. Advertising is primarily focused on communicating with the target audience and creating a demand for the product or service. Other functions of advertising include informing customers about the product, persuading them to make a purchase, reminding them about the brand, and adding value to the product.

Question 17

Which of the following is an advertising function? 
A) informing 
B) influencing 
C) reminding 
D) adding value 
E) All of these are correct.

Accepted Answer

All of the options - informing, influencing, reminding, and adding value - are key functions of advertising. Informing helps to inform the audience about the product or service, while influencing attempts to persuade them to buy it. Reminding is useful to keep the product in the audience's mind when they are in the market for it, and adding value can create a unique selling proposition that the product offers more than its competition.

Question 18

Ad spending is growing at a much more rapid rate in which of the following than elsewhere around the globe? 
A) the United States 
B) other developed countries 
C) developing countries 
D) all of Europe 
E) all of North America

Accepted Answer

According to various reports and studies, ad spending is growing at a much faster rate in developing countries compared to other parts of the world. This is mainly due to increasing urbanization, growing middle-class population, and rising disposable incomes in these regions, which make them lucrative markets for advertisers. The United States and other developed countries have reached a saturation point in terms of ad spending, while Europe and North America as a whole have witnessed slower growth rates. Therefore, the best choice is C, i.e., developing countries.

Question 19

The National Dairy Council sponsored a series of commercials promoting milk and cheese as healthy foods.This advertising was designed to create _____.
A) secondary demand 
B) horizontal demand 
C) vicarious demand 
D) primary demand 
E) joint demand

Accepted Answer

The National Dairy Council's commercials promoting milk and cheese as healthy foods were designed to create primary demand, which is the demand for an entire product category rather than a specific brand.

Question 20

An ex-CEO at Procter & Gamble-one of the world's largest advertisers-aptly draws an analogy between advertising and exercise in that both _____.
A) provide short-term benefits 
B) are expensive 
C) need to be done regularly 
D) take place in a learning environment 
E) give life to its participants

Accepted Answer

Both advertising and exercise need to be done regularly to see long-term benefits. Just like how exercising once a year won't lead to a healthy body, advertising only once in a while won't lead to successful brand recognition or sales. Consistency is key in both activities.

Quiz 9: An Overview of Advertising Management

When consumers have well-established brand preferences,as often happens during the decline stage of a product's life cycle,what is the most appropriate combination of advertising and price elasticity to apply?

Advertising is costly and its effects are often _____.

Most successful companies are aware that _____ spending is the key factor underlying successful advertising.

PepsiCo's commercials that encourage people to purchase Mountain Dew is an example of creating _____ demand.

An advertisement that was designed to keep a company's brand fresh in the consumer's memory performs the advertising function of _____.

Advertising that teaches new uses for existing brands is known as _____.

Critics of the advertising = information view contend that a number of factors other than advertising also account for brand loyalty and prince insensitivity.

Which combination of advertising and price elasticity should be applied in a situation where there are mature market goods and consumers have complete information about most brands in the category?

To distinguish advertising,which typically is conveyed via print,TV,radio,the Internet,etc.,from person-to-person forms of communication,including personal selling and word of mouth,the term _____ communication is used.

An example of usage expansion advertising is _____.

Creating demand for an entire product category is known as _____ demand.

Ad spending in the United States has averaged approximately ______ percent of the country's gross domestic product.

Which of the following is an example of an advertisement that was designed to create primary demand?

The Beef Council sponsored a variety of advertisements encouraging people to eat more meat.These advertisements were designed to create _____ demand.

_____ is a paid,mediated form of communication from an identifiable source,designed to persuade the receiver to take some action,now or in the future.

Which is NOT a function performed by advertising?

Which of the following is an advertising function?

Ad spending is growing at a much more rapid rate in which of the following than elsewhere around the globe?

The National Dairy Council sponsored a series of commercials promoting milk and cheese as healthy foods.This advertising was designed to create _____.

An ex-CEO at Procter & Gamble-one of the world's largest advertisers-aptly draws an analogy between advertising and exercise in that both _____.