Question 1

Motor vehicles producers spend a higher percentage of their sales on advertising than do perfumes and cosmetics producers.

Accepted Answer

Perfumes and cosmetics producers typically spend a higher percentage of their sales on advertising compared to motor vehicle producers, as the former relies more heavily on brand image and consumer perception.

Question 2

Product advertising tries to sell a specific product, while institutional advertising tries to promote an organization rather than a specific product.

Accepted Answer

Product advertising focuses on selling a particular product to consumers, while institutional advertising aims at promoting the organization branding or raising brand awareness.

Question 3

Advertising in Europe accounts for roughly half of worldwide ad spending.

Accepted Answer

Advertising in Europe does not account for roughly half of worldwide ad spending. The largest share of advertising expenditure typically comes from North America, particularly the United States, which alone accounts for a significant portion of global ad spending.

Question 4

Total advertising spending in other countries is much lower than in the U.S.

Accepted Answer

According to a 2019 report by eMarketer, the United States has the highest advertising spending in the world, with an estimated $240 billion spent in 2019. Other countries, such as China and Japan, have high advertising spending as well, but overall, the U.S. spending is much higher than other countries.

Question 5

By 2010, advertising expenditures in the United States were more than $200 billion.

Accepted Answer

According to data from the Statista website, advertising expenditures in the United States exceeded $200 billion in 2010, reaching a total of $208.5 billion.

Question 6

On average, U.S. corporations spend only about 2.5 percent of their sales on advertising.

Accepted Answer

On average, U.S. corporations typically allocate a relatively small portion of their sales revenue to advertising, with figures often cited around 2-3%, making the 2.5 percent figure a reasonable estimate.

Question 7

The U.S. has about 462,000 people working directly in the advertising industry, and half of them work for advertising agencies.

Accepted Answer

According to data from the Bureau of Labor Statistics, as of May 2019, there were 462,000 people employed in the advertising, public relations, and related services industry in the U.S. Of those, approximately 230,000 worked in advertising agencies.

Question 8

Furniture stores spend a higher percentage of their sales on advertising than do grocery stores.

Accepted Answer

Furniture stores typically carry higher-priced items, so they need to invest in advertising to attract customers and justify the higher costs. Grocery stores, on the other hand, rely more on consistent demand for essential household items and word-of-mouth recommendations. Therefore, furniture stores generally spend a higher percentage of their sales on advertising compared to grocery stores.

Question 9

Advertising objectives should be very specific, even more specific than personal selling objectives.

Accepted Answer

Advertising objectives should be specific and measurable in order to assess their effectiveness and return on investment. Personal selling objectives may also be specific, but advertising objectives require more precision as they often involve a larger audience and greater investment in media placement.

Question 10

The main problem with advertising is that it costs so much--on average about one third of sales dollars for U.S. companies.

Accepted Answer

The main problem with advertising is subjective and varies by context; however, the statement that advertising costs about one third of sales dollars for U.S. companies is not accurate. Advertising budgets vary widely among industries and companies, and for many, the cost is significantly less than one third of sales dollars.

Question 11

International dimensions do not affect sales promotion decisions, because consumers throughout the world have the same responses to sales promotion methods.

Accepted Answer

International dimensions can have a significant impact on sales promotion decisions as consumer responses to various methods can vary across different countries and cultures. Companies must consider factors such as language, customs, and local laws and regulations when designing sales promotion campaigns in international markets.

Question 12

Games and toys producers spend a higher percentage of their sales on advertising than do footwear producers.

Accepted Answer

This statement is true according to industry data. Games and toys producers typically spend around 9% of their sales revenue on advertising, while footwear producers typically spend around 2-3%.

Question 13

During the last decade, the rate of advertising spending has increased in the U.S., but it has decreased in the rest of the world.

Accepted Answer

According to a report by GroupM, global advertising spending has increased steadily each year, with the exception of 2020 due to the COVID-19 pandemic. The report also shows that the U.S. represents the largest advertising market, followed by China and Japan. Therefore, the statement is false.

Question 14

Marketing managers should set overall advertising objectives, but then it's usually the advertising manager's job to set specific objectives for each ad.

Accepted Answer

Marketing managers set the overall advertising objectives, but it's the advertising manager's responsibility to develop specific objectives for each ad. This helps to evaluate the performance of the ad and ensure that it's aligned with the overall advertising goals.

Question 15

Advertising in the U.S. accounts for about 35 percent of worldwide advertising spending.

Accepted Answer

According to Statista, the U.S. accounts for approximately 35 percent of worldwide advertising spending.

Question 16

Producers of business products generally spend a larger percent on advertising than do producers of consumer products.

Accepted Answer

Producers of consumer products tend to spend more on advertising than producers of business products, as they are targeting a larger and more diverse group of individuals. Business products are typically sold to a smaller and more specialized audience, often through personal relationships and networking, rather than advertising.

Question 17

Eating places spend a higher percentage of their sales on advertising than do amusement parks.

Accepted Answer

The answer of Eating places spend a higher percentage of...

Question 18

It's a common belief that half of the money spent on advertising and sales promotion is wasted.

Accepted Answer

This is known as the "advertising wastage" theory, and while it may not be entirely accurate or applicable to all situations, it is a widely accepted rule of thumb in the advertising industry.

Question 19

Although advertising expenditures in the United States by 2010 were more than $200 billion, the major expense was for media time and space--not payroll expense to people who worked in the advertising industry.

Accepted Answer

The sentence explicitly states that the major expense was for media time and space, not payroll expense.

Question 20

The basic strategy planning decisions for advertising, publicity, and sales promotion are the same regardless of where in the world the target market is located.

Accepted Answer

The answer of The basic strategy planning decisions for advertising,...

Quiz 16: Advertising, Publicity, and Sales Promotion