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Integrated Advertising Promotion and

Marketing Communications 7th Edition


Clow Test Bank

Full download at link:

Test bank: https://testbankpack.com/p/test-bank-for-integrated-


advertising-promotion-and-marketing-communications-7th-edition-
clow-0133866335-9780133866339/

Solution Manual: https://testbankpack.com/p/solution-manual-for-


integrated-advertising-promotion-and-marketing-communications-
7th-edition-clow-0133866335-9780133866339/

Integrated Advertising, Promotion, and Marketing Communications, 7e (Clow)


Chapter 5 Advertising Management

1) Automobile manufacturer ads comprise about 15 percent of all magazine advertising revenue.
One reason auto manufacturers spend so much on advertising is that consumers do not purchase
vehicles on a regular basis. When consumers do make the decision to purchase a new car, auto
companies want to make sure consumers remember the right brand. This illustrates ________
effects.
A) decay
B) wear out
C) carryover
D) threshold
Answer: C
Difficulty: Difficult
Question Tag: Application
1
Copyright © 2016 Pearson Education, Inc.
AACSB Category: Application of knowledge
Objective: 4-6

2) The process of preparing and integrating a company's advertising efforts with the overall IMC
message is the:
A) message theme.
B) advertising management program.
C) executional framework.
D) communication analysis.
Answer: B
Difficulty: Easy
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-1

3) The first step in a purchase decision in the hierarchy of effects model is:
A) awareness.
B) liking.
C) preference.
D) conviction.
Answer: A
Difficulty: Easy
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-1

2
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4) Which step immediately follows awareness in the hierarchy of effects model?
A) Recognition
B) Liking
C) Preference
D) Knowledge
Answer: D
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-1

5) Which step immediately follows awareness and knowledge in the hierarchy of effects model?
A) The purchase
B) Liking
C) Preference
D) Conviction
Answer: B
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-1

6) In the hierarchy of effects model, after preference comes:


A) the actual purchase.
B) recognition.
C) knowledge.
D) conviction.
Answer: D
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-1

7) The final step of the hierarchy of effects model is:


A) the actual purchase.
B) liking.
C) preference.
D) conviction.
Answer: A
Difficulty: Easy
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-1

3
Copyright © 2016 Pearson Education, Inc.
8) In the hierarchy of effects model, preference for a particular product only occurs after each of
the following occurs except:
A) awareness.
B) liking.
C) knowledge.
D) conviction.
Answer: D
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-1

9) According to the hierarchy of effects model, before Sandra will develop a preference for K-
Swiss shoes, she must first:
A) know about K-Swiss shoes and like the K-Swiss brand.
B) have conviction that the K-Swiss brand is superior to other brands.
C) know about K-Swiss shoes and believe they are the best.
D) become aware of the K-Swiss brand and develop a conviction about the brand.
Answer: A
Difficulty: Moderate
Question Tag: Application
AACSB Category: Application of knowledge
Objective: 5-1

10) In terms of the hierarchy of effects model, to obtain brand loyalty:


A) all six steps must be present.
B) knowledge and preference is essential, the other steps are not.
C) liking, preference, and conviction are essential, the other steps are not.
D) awareness, knowledge, and conviction are essential, the other steps are not.
Answer: A
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-1

11) The hierarchy of effects model:


A) only works in the correct sequence of the model.
B) is designed to build recall more than an actual purchase decision.
C) clarifies the advertising approach to use by showing what to emphasize during each stage of
the model.
D) leads to impulse buying decisions if applied correctly.
Answer: C
Difficulty: Difficult
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 5-1

4
Copyright © 2016 Pearson Education, Inc.
12) The attitude formation sequence which matches the typical steps in the hierarchy of effects
model is:
A) cognitive-affective-conative.
B) affective-conative-cognitive.
C) liking-decision-discovery.
D) discovery-liking-decision.
Answer: A
Difficulty: Moderate
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 5-1

13) The cognitive component of attitude matches the hierarchy of effects model's components of:
A) awareness and knowledge.
B) liking, preference, and conviction.
C) conviction and action.
D) the actual purchase.
Answer: A
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-1

14) The affective component of attitude matches which components of the hierarchy of effects
model?
A) Awareness and knowledge
B) Liking, preference, and conviction
C) Conviction and action
D) The actual purchase
Answer: B
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-1

15) The conative component of an attitude matches the hierarchy of effects model's element of:
A) knowledge.
B) preference.
C) conviction.
D) the actual purchase.
Answer: D
Difficulty: Moderate
Question Tag: Definition (Concept)
Objective: 5-1

5
Copyright © 2016 Pearson Education, Inc.
16) In an advertisement for Curves for Women, consumers are encouraged to "join now" by
offering them the remainder of the summer free. This portion of the ad corresponds to which step
in the hierarchy of effects model?
A) Awareness
B) Knowledge
C) Conviction
D) The actual purchase
Answer: D
Difficulty: Difficult
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 5-1

17) The means-end chain approach suggests that an advertisement should contain a message or
means that:
A) leads the consumer to a desired end state.
B) changes a consumer's attitude.
C) modifies a consumer's beliefs.
D) stimulates some type of behavior.
Answer: A
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-1

18) In a means-end chain, end states include:


A) the components of attitude.
B) personal values.
C) the purchase of a product.
D) either a change in beliefs or a change in attitude.
Answer: B
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-1

19) A means-end chain is the basis for the:


A) hierarchy of effects model.
B) MECCAS model.
C) visual and verbal cue consistency approach.
D) components of attitudes.
Answer: B
Difficulty: Easy
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-1

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20) In a means-end chain for milk, the calcium content of milk leads to healthier bones, which
leads to a display of wisdom and a comfortable life free of osteoporosis. The fact that milk has
calcium represents which component of the means-end chain?
A) Product attribute
B) Consumer benefit
C) Leverage point
D) Personal value
Answer: A
Difficulty: Difficult
Question Tag: Application
AACSB Category: Reflective thinking
Objective: 5-1

21) In a means-end chain for milk, the calcium content of milk leads to healthier bones, which
leads to a display of wisdom and a comfortable life free of osteoporosis. The display of wisdom
and a comfortable life component of the means-end chain is the:
A) product attribute.
B) consumer benefit.
C) attitude formation.
D) personal value.
Answer: D
Difficulty: Difficult
Question Tag: Application
AACSB Category: Reflective thinking
Objective: 5-1

22) Visual elements of an advertisement are stored in the brain as:


A) forms of verbal cues.
B) images or pictures.
C) abstractions.
D) both pictures and words.
Answer: D
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-1

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23) Which statement below about the visual element in ads is false?
A) Visual elements are stored only in the left side of the brain.
B) Visual elements tend to be more easily remembered than verbal copy.
C) Visual elements are stored in the brain as both pictures and words.
D) Visual images often lead to more favorable attitudes toward both the advertisement and the
brand.
Answer: A
Difficulty: Difficult
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 5-1

24) Visual elements of an advertisement are stored in:


A) the left side of the brain.
B) the right side of the brain.
C) both sides of the brain.
D) the left side of the brain if the visual is abstract and right side if the visual is concrete.
Answer: C
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-1

25) In terms of the visual element of an advertisement, an abstract image has a:


A) higher level of recall than a concrete image.
B) lower level of recall than a concrete image.
C) greater impact on the affective component of attitude than a concrete image.
D) greater impact on the cognitive component of attitude than on the affective component.
Answer: B
Difficulty: Difficult
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 5-1

26) In terms of the visual element of an advertisement, a concrete image has a:


A) higher level of recall than an abstract image.
B) lower level of recall than an abstract image.
C) lesser impact on the affective component of attitude than an abstract image.
D) lesser impact on the cognitive component of attitude than on the affective component.
Answer: A
Difficulty: Difficult
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 5-1

8
Copyright © 2016 Pearson Education, Inc.
27) Visual Esperanto is:
A) an application of the hierarchy of effects model.
B) a universal language for global advertising.
C) a technique for Spanish-speaking advertisers and consumers.
D) the application of a rational leverage point.
Answer: B
Difficulty: Easy
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-1

28) Which is an example of visual Esperanto?


A) Showing a shared family moment
B) Using a decorative model
C) Tailoring ad copy to a particular region
D) A visual portrayal of key statistics supporting a product's main benefits
Answer: A
Difficulty: Moderate
Question Tag: Application
AACSB Category: Reflective thinking
Objective: 5-1

29) An example of visual Esperanto would be a:


A) photo of a Toyota automobile.
B) child enjoying a snack.
C) description of an office machine.
D) decorative model.
Answer: B
Difficulty: Difficult
Question Tag: Application
AACSB Category: Reflective thinking
Objective: 5-1

30) The key to creating a successful visual Esperanto advertisement is creating something that
transcends cultures, through a(n):
A) effective verbal message.
B) brand name.
C) visual image.
D) leverage point.
Answer: C
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-1

9
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31) The most difficult task for a creative in developing an advertisement with visual Esperanto is
finding the:
A) right tagline to use.
B) best words.
C) best colors.
D) best image.
Answer: D
Difficulty: Moderate
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 5-1

32) In the past, creatives designing business-to-business ads relied heavily on:
A) a blend of visual and verbal elements.
B) the visual component of the ad.
C) the verbal or written component of the ad.
D) conative-oriented ads.
Answer: C
Difficulty: Difficult
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-1

33) In recent years, more business-to-business advertisements have incorporated:


A) stronger verbal elements to persuade business buyers.
B) stronger visual elements to heighten the emotional aspect of making a purchase.
C) attractive models.
D) more rational appeals to create stronger affinities for particular brands.
Answer: B
Difficulty: Difficult
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 5-1

34) The average person encounters more than 800 advertisements per day.
Answer: FALSE
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-1

10
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35) Advertising campaign management is the process of preparing and integrating a company's
advertising efforts with the overall IMC message.
Answer: TRUE
Difficulty: Easy
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-1

36) The hierarchy of effects model aids in clarifying the target audience of an advertising
campaign and the development of individual ads.
Answer: FALSE
Difficulty: Easy
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-1

37) The hierarchy of effects model helps to clarify the objectives of an advertising campaign.
Answer: TRUE
Difficulty: Easy
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-1

38) The hierarchy of effects model suggests a sequential set of steps that leads to a purchase.
Answer: TRUE
Difficulty: Easy
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-1

39) The hierarchy of effects model suggests that, before a person develops knowledge of a
product, he or she must first like the product.
Answer: FALSE
Difficulty: Easy
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-1

40) Preference occurs before knowledge or awareness in the hierarchy of effects model.
Answer: FALSE
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-1

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41) Liking follows awareness and knowledge in the hierarchy of effects model.
Answer: TRUE
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-1

42) Liking a brand follows awareness, knowledge, and preference in the hierarchy of effects
model.
Answer: FALSE
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-1

43) Conviction follows liking and preference in the hierarchy of effects model.
Answer: TRUE
Difficulty: Easy
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-1

44) The final stage in the hierarchy of effects model is liking or preference for a particular brand.
Answer: FALSE
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-1

45) A shopper who sees an item in a store, becomes intrigued, and then immediately makes a
purchase follows the sequence of the hierarchy of effects model.
Answer: FALSE
Difficulty: Moderate
Question Tag: Application
AACSB Category: Application of knowledge
Objective: 5-1

46) One criticism of the hierarchy of effects model is that when making purchases, consumers
and businesses do not always follow the six steps in a sequential order.
Answer: TRUE
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-1

12
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47) The major benefit of the hierarchy of effects model is that it is one method to identify the
typical steps consumers and businesses take when making purchases.
Answer: TRUE
Difficulty: Moderate
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 5-1

48) To achieve brand loyalty, advertisers must address all six stages of the hierarchy of effects
model.
Answer: TRUE
Difficulty: Difficult
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 5-1

49) The attitude sequence of cognitive → conative → affective is based on the hierarchy of
effects model sequence and is the most common sequence.
Answer: FALSE
Difficulty: Difficult
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-1

50) Based on the hierarchy of effects model, cognitive-oriented advertisements are superior in
developing liking, preference, and conviction for a product.
Answer: FALSE
Difficulty: Difficult
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 5-1

51) Based on the concepts present in the hierarchy of effects model, affective-oriented
advertisements are superior in developing brand awareness, brand knowledge, and brand
preference.
Answer: FALSE
Difficulty: Difficult
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 5-1

13
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52) Based on the concepts present in the hierarchy of effects model, conative-oriented
advertisements are superior in facilitating product purchases and other consumer actions.
Answer: TRUE
Difficulty: Difficult
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 5-1

53) In a means-end chain, the message should be the means that leads the consumer to a desire or
preference for a brand.
Answer: FALSE
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-1

54) MECCAS stand for Means-End Conceptualization of Components of Advertising Strategy.


Answer: TRUE
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-1

55) A means-end chain stresses the linkage between a product's attributes and its price.
Answer: FALSE
Difficulty: Easy
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-1

56) Means-end theory provides the basis of the MECCAS approach to advertising.
Answer: TRUE
Difficulty: Difficult
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-1

57) Personal values are not part of a MECCAS model but are part of a means-end chain.
Answer: FALSE
Difficulty: Difficult
Question Tag: Critical Thinking
AACSB Category: Application of knowledge
Objective: 5-1

14
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58) Visual images tend to be more difficult to remember than verbal copy.
Answer: FALSE
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-1

59) Visual elements in an advertisement can be stored in the brain as both pictures and words.
Answer: TRUE
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-1

60) A message is more likely to be effective when it has both visual and verbal or written
elements, because these components will be dual-coded into the person's memory.
Answer: TRUE
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-1

61) Verbal or written content of an ad is usually stored in both the left and right sides of the
brain, while visual elements tend to be stored in the left side of the brain only.
Answer: FALSE
Difficulty: Difficult
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-1

62) Abstract pictures instill higher levels of recall than concrete pictures because of the dual-
coding process that occurs with abstract pictures whereby the image is stored in the brain as both
a visual and a verbal representation.
Answer: FALSE
Difficulty: Difficult
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 5-1

63) Ads with concrete images tend to lead to more favorable attitudes than ads with no pictures
or abstract pictures.
Answer: TRUE
Difficulty: Difficult
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-1

15
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64) If a radio advertisement conjures images that consumers can see clearly in their minds, the
effect may be greater than seeing an actual visual portrayal.
Answer: TRUE
Difficulty: Difficult
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 5-1

65) Visual Esperanto is the development of an image that readily translates across cultures, but
only with certain languages, such as Spanish.
Answer: FALSE
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-1

66) Visual Esperanto advertising recognizes that visual images are more powerful than verbal
descriptions.
Answer: TRUE
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-1

67) In the past, creatives designing business-to-business advertisements relied heavily on the
verbal or written element rather than on visuals. In recent years, there has been a shift to using
stronger visual elements in business-to-business advertisements.
Answer: TRUE
Difficulty: Difficult
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 5-1

16
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68) Name the components of the hierarchy of effects model and explain why it is an important
theory in advertising.
Answer:
• Awareness
• Knowledge
• Liking
• Preference
• Conviction
• The actual purchase
The hierarchy of effects model is important because it explains the steps individuals go through
from becoming aware of a product or brand to its purchase. It also is important in ad design
because creatives can target different stages of the hierarchy.
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Reflective thinking
Objective: 5-1

69) Explain the concept of the means-end chain.


Answer: The means-end chain suggests a 3-step approach to ad creation: product attribute leads
to a product benefit which leads to a personal value. People buy products to satisfy personal
needs or wants. They purchase benefits, not attributes. Therefore, ads need to show how benefits
can meet or satisfy personal values.
Difficulty: Moderate
Question Tag: Synthesis
AACSB Category: Reflective thinking
Objective: 5-1

70) Explain the relationship between verbal and visual elements of an ad and how these elements
are encoded in the brain.
Answer: Visual elements are encoded as both pictures and words and therefore often embedded
in both sides of the brain. Written or verbal communication is stored in the left-side of the brain
only. Therefore, visuals often have a stronger impact and are remembered easier. Ads with
concrete images tend to be remembered longer than ads with abstract images.
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-1

17
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71) In terms of the relationship between expenditures on advertising communications and
subsequent sales revenues, too many marketing managers assume that there is a(n):
A) direct relationship.
B) indirect relationship.
C) inverted U-shaped relationship.
D) inverse relationship.
Answer: A
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-2

72) As consumers see advertisements over time they become more likely to recall a message and
purchase a product. This demonstrates:
A) diminishing returns.
B) decay effects.
C) threshold effects.
D) purchase simulation.
Answer: C
Difficulty: Difficult
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-2

73) The early effects of an advertising campaign may be minimal, but over time gain
momentum. This phenomenon is:
A) diminishing returns.
B) threshold effects.
C) the sales-response curve.
D) carryover effect.
Answer: B
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-2

18
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74) When BMW motorcycle advertisements began targeting females, the initial impact was
minimal, but after some time passed the ads began to have an impact on inquiries by females and
later on sales revenues. This illustrates:
A) the impact of communication goals on sales revenues.
B) threshold effects.
C) sales-response function curve.
D) carryover effects.
Answer: B
Difficulty: Difficult
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 5-2

75) The sales-response function curve models the ________ of advertising.


A) diminishing returns
B) threshold effects
C) carryover effects
D) decay effects
Answer: A
Difficulty: Moderate
Question Tag: Definition (Concept)
Objective: 5-2

76) Pepsi and Coke both have reached the point that investing more dollars in advertising yields
smaller increases in sales. Which is present?
A) Decay effects
B) Threshold effects
C) Concave downward function
D) Carryover effect
Answer: C
Difficulty: Difficult
Question Tag: Definition (Concept)
AACSB Category: Reflective thinking
Objective: 5-2

77) When a concave downward function is present, increasing advertising expenditures result in:
A) greater sales.
B) diminishing returns.
C) average returns.
D) further advertising expenditures.
Answer: B
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-2

19
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78) Which suggests that further advertising and promotion expenditures may result in adverse
effects on profits?
A) A sales-response function
B) A marginal analysis
C) Average return on investment curve
D) Promotions opportunity curve
Answer: B
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-2

79) Which concept explains that consumers may recall an ad from the past and make a purchase
because they have seen the ad several times?
A) A sales-response curve
B) A marginal analysis
C) Decay effects
D) Carryover effects
Answer: D
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-2

80) Sandra recalls seeing an advertisement for Philadelphia Cream Cheese highlighting that the
brand produces a chocolate version, which illustrates the:
A) carryover effects of previous ads.
B) wear out effects of ads of competitors.
C) threshold effects of former ads.
D) decay effects of former ads.
Answer: A
Difficulty: Difficult
Question Tag: Application
Objective: 5-2

81) Manufacturers of appliances, such as GE and Whirlpool, advertise on a continuous basis


because appliances are purchased infrequently and only when they are needed. To ensure the
brand name is more likely remembered when the need arises, these manufacturers rely on:
A) threshold effects.
B) sales-response function curve.
C) wear out effects.
D) carryover effects.
Answer: D
Difficulty: Moderate
Question Tag: Application
AACSB Category: Reflective thinking
Objective: 5-2
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82) Which is present when consumers begin to think of an advertisement as old or stale?
A) A sales-response curve
B) Wear out effects
C) Decay effects
D) Carryover effects
Answer: B
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-2

83) When consumers begin to forget a brand name because advertising messages have stopped, it
is a sign of:
A) a sales-response curve.
B) wear out effects.
C) decay effects.
D) carryover effects.
Answer: C
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-2

84) It is an unrealistic assumption to believe that a direct relationship exists between


expenditures on advertising communications and subsequent sales revenues.
Answer: TRUE
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Reflective thinking
Objective: 5-2

85) Recent studies have revealed that a 10 percent increase in advertising leads to about a 5
percent increase in sales, although results vary widely.
Answer: FALSE
Difficulty: Difficult
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-2

86) A threshold effect occurs when repeated exposures to a message cause consumers to lose
interest in the company.
Answer: FALSE
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-2

21
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87) When a company introduces a new product under a strongly established brand name, the
length of time to reach the threshold point where advertising becomes effective is normally
longer.
Answer: FALSE
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Reflective thinking
Objective: 5-2

88) A sales-response function curve shows when diminishing returns on advertising expenditures
are present.
Answer: TRUE
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-2

89) A marginal analysis is used to portray how returns on additional advertising expenditures are
related to incremental increases in sales.
Answer: TRUE
Difficulty: Difficult
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-2

90) A threshold effect means that an ad has been shown often enough so that the consumer will
remember the company or brand when it is time to buy the product.
Answer: FALSE
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-2

91) Decay effects occur when a company's advertisements have become old or boring.
Answer: FALSE
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-2

22
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92) Advantages of an in-house advertising department include all of the following except:
A) greater expertise and talent on creating ads.
B) lower costs.
C) the message can be aligned with the brand and other company communications.
D) the CEO and upper management can work closely with the marketing team.
Answer: A
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-3

93) All of the following are advantages of using an in-house advertising department except:
A) a better understanding of the product and mission of the company.
B) produce ads faster.
C) a better understanding of consumers and consumer trends.
D) greater consistency in ads because of lower turnover among the creative team.
Answer: C
Difficulty: Difficult
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 5-3

94) Advertising agencies offer all of the following advantages except:


A) potentially lower costs due to efficiency.
B) better understanding of the product and how it is used by consumers.
C) greater expertise and access to top creative talent.
D) perspective of an outsider.
Answer: B
Difficulty: Moderate
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 5-3

95) A boutique-type advertising agency:


A) offers a wide array of services.
B) is designed to handle smaller accounts.
C) serves in-house clients.
D) offers one or a few specialized service or works with one type of client.
Answer: D
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-3

23
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96) A media service company:
A) negotiates contract rates between the agency and the client.
B) negotiates pay rates for creatives and advertising performers.
C) negotiates and purchases media packages.
D) handles direct marketing efforts.
Answer: C
Difficulty: Easy
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-3

97) Media buys are normally made by the:


A) creative.
B) account executive.
C) traffic manager.
D) media service company.
Answer: D
Difficulty: Easy
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-3

98) If a company's managers want to use a boutique agency for developing a special contest or
sweepstakes event, who should be contacted?
A) Media service agency
B) Consumer promotion agency
C) Direct marketing agency
D) Trade promotion agency
Answer: B
Difficulty: Difficult
Question Tag: Critical Thinking
AACSB Category: Application of knowledge
Objective: 5-3

99) If a company received negative press, the marketing department may hire a:
A) boutique specialty agency.
B) media service company.
C) public relations firm.
D) direct-marketing agency.
Answer: C
Difficulty: Easy
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-3

24
Copyright © 2016 Pearson Education, Inc.
100) If company leaders wanted to make sure an integrated approach is used in marketing
communications, the best approach would be to:
A) hire a full-service agency.
B) use a boutique agency.
C) use a media service company to buy media time, but do the creative with freelancers.
D) utilize different companies for each aspect of the advertising campaign.
Answer: A
Difficulty: Difficult
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 5-3

101) With regard to the account size in determining whether to use an external agency or
perform the work in-house, all of the following statements are true except:
A) a small account is not usually attractive to a large agency.
B) if 75 percent of the advertising budget cannot be used to buy media time and space, it is better
to perform the work in-house.
C) if the agency charges more than 25 percent of the money to design and create the ads, then the
account is too small to use an external agency.
D) a small agency is not a viable choice, even for a small account, because the agency will lack
the necessary resources to do the work.
Answer: D
Difficulty: Difficult
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 5-3

102) In terms of the 75-15-10 rule, the 75 percent represents the:


A) money spent on media time or space.
B) money spent on ad production.
C) money spent for the creative work.
D) percentage of the work that must be completed before the client can be billed.
Answer: A
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-3

25
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103) In terms of the 75-15-10 rule, the 15 percent represents the:
A) money spent on media time or space.
B) money spent on ad production.
C) money spent for the creative work.
D) fee for the media planner.
Answer: C
Difficulty: Difficult
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-3

104) In terms of the 75-15-10 rule, the 10 percent represents the:


A) money spent on media time or space.
B) money spent on ad production.
C) money spent for the creative work.
D) fee for the media buyer.
Answer: B
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-3

105) If a company's media budget numbers are 85-10-5 and uses an external ad agency, this
means the company:
A) is spending too much money on creative work.
B) should continue using an external advertising agency.
C) should discontinue using an external agency and perform the work in-house.
D) is spending too much money on media buys.
Answer: B
Difficulty: Difficult
Question Tag: Critical Thinking
AACSB Category: Analytical thinking
Objective: 5-3

106) In terms of money spent on developing an advertising campaign, a company should spend
at least what percent of the money on buying media time or space?
A) 25
B) 40
C) 50
D) 75
Answer: D
Difficulty: Difficult
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-3

26
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107) Crowdsourcing is the process of:
A) outsourcing the creative aspect of an advertisement to the public.
B) outsourcing the production aspect of an advertisement to the public.
C) outsourcing both the creative and production aspect of an advertisement to the public.
D) selecting creatives from the public domain rather than from an advertising agency.
Answer: A
Difficulty: Difficult
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-3

108) Using crowdsourcing to develop advertisements includes all of the following advantages
except:
A) creating buzz surrounding a contest or the consumer-generated ad.
B) getting consumers involved.
C) lower costs.
D) getting ideas from individuals who purchase and use the product.
Answer: C
Difficulty: Moderate
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 5-3

109) One important decision in advertising management is the choice between an in-house
advertising group and an external advertising agency.
Answer: TRUE
Difficulty: Easy
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-3

110) Part of the reasoning for using an in-house advertising department is that internal
organizational members have a better sense of the company's mission and message.
Answer: TRUE
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-3

111) One of the advantages of an external advertising agency over an in-house marketing group
is that the external agency offers greater expertise and has access to top creative talent.
Answer: TRUE
Difficulty: Easy
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-3

27
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112) An in-house advertising department is likely to be more objective than an external
advertising agency and also have a better understanding of consumers and trends.
Answer: FALSE
Difficulty: Easy
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-3

113) An external advertising agency may actually cost less than doing advertising work in-house.
Answer: TRUE
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-3

114) A media service company negotiates and purchases media packages, which are also known
as media buys.
Answer: TRUE
Difficulty: Easy
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-3

115) A boutique agency provides a full range of advertising services.


Answer: FALSE
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-3

116) When the majority of a company's advertising budget is spent on media buys, rather than
producing the advertisement, the marketing team should be inclined to complete the work in-
house.
Answer: FALSE
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-3

117) In terms of the 75-15-10 rule, 75 percent of the money spent on advertising should be spent
for media buys.
Answer: TRUE
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-3

28
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118) In terms of the 75-15-10 rule, the 15 represents the amount of money that is spent on
producing the actual advertisement or campaign.
Answer: FALSE
Difficulty: Difficult
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-3

119) In terms of the 75-15-10 rule, the 10 represents the amount of money that is spent on
creating or designing the ads.
Answer: FALSE
Difficulty: Difficult
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-3

120) To be effective in terms of using an external agency, at least 75 percent of the advertising
budget should be spent on media buys.
Answer: TRUE
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-3

121) Crowdsourcing is the process of outsourcing the production aspect of an advertisement to


the public.
Answer: FALSE
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-3

122) Consumer-generated advertising works best for customers with a low level of brand loyalty.
Answer: FALSE
Difficulty: Difficult
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 5-3

29
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123) Contrast the advantages of using an in-house advertising or marketing department to hiring
an external advertising agency.
Answer: An in-house department has the advantages of lower costs, consistent brand message,
better understanding of the product and company mission, faster ad production, closer working
relations with the CEO, and lower turnover with the creative team. An external agency has the
advantages of potentially lower costs, greater expertise, an outsider's perspective, and access to
top talent.
Difficulty: Difficult
Question Tag: Synthesis
AACSB Category: Reflective thinking
Objective: 5-3

124) Name and describe other types of agencies that serve client firms, besides advertising
agencies.
Answer: Media service companies negotiate and purchase media packages or media buys.
Direct marketing agencies handle direct marketing campaigns.
Sales or trade promotions companies provide assistance in creating attention-getting
mechanisms.
Public relations firms help companies develop positive images and deal with negative publicity.
Social media services reaches customers through an array of social media.
Online and digital services provide an array of online services.
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-3

125) The first step in selecting an advertising agency is to:


A) set goals.
B) screen an initial list of applicants.
C) request client references.
D) select the process to be used and the criteria for selection.
Answer: A
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-4

30
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126) In selecting an advertising agency, after corporate goals are set, the next step in the process
is to:
A) request a creative pitch.
B) screen an initial list of applicants.
C) request client references.
D) select the process to be used and the criteria for selection.
Answer: D
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-4

127) In terms of selecting an advertising agency, company leaders at Atco Electronics do not
have a clear idea of what they want to accomplish and therefore disagree as to what type of
agency should be hired. This situation occurred because the company failed to:
A) develop selection criteria to be used in the ad selection process.
B) set goals before starting their search for an agency.
C) solicit client references before discussing what type of agency they want.
D) ask for a creative pitch.
Answer: B
Difficulty: Difficult
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 5-4

128) All of the following are important evaluation criteria that should be considered in selecting
an advertising agency except:
A) size of the agency.
B) relevant experience of the agency.
C) governmental regulations.
D) conflicts of interest.
Answer: C
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-4

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129) All of the following are evaluation criteria that should be considered in selecting an
advertising agency except:
A) creative reputation and capabilities.
B) industry regulations.
C) production capabilities.
D) media purchasing capabilities.
Answer: B
Difficulty: Difficult
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-4

130) An agency representing convenience stores that has previously created ads for grocery
stores would have:
A) relevant experience.
B) a conflict of interest.
C) interpersonal chemistry.
D) company complexity.
Answer: A
Difficulty: Difficult
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 5-4

131) Which of the following situations would be considered as a conflict of interest in the
selection of an advertising agency?
A) The advertising agency is owned by a larger company.
B) The advertising agency already represents a similar product or company.
C) The advertising agency outsources creative work.
D) The creative works for more than one client.
Answer: B
Difficulty: Easy
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 5-4

132) A conflict of interest would be present if the:


A) client company's leaders cannot decide which ad agency to select.
B) ad agency already represents a similar product.
C) client company employs several former members of the ad agency.
D) ad agency employs several former members of the client company.
Answer: B
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-4

32
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133) One simple method used to judge an advertising agency's creative reputation is to:
A) contact the company's competition.
B) ask for a list of awards the company has won.
C) conduct a shootout.
D) review the most recent media buys the agency has made.
Answer: B
Difficulty: Moderate
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 5-4

134) In selecting an advertising agency, the request for a creative pitch should occur after the:
A) goals have been set.
B) initial list of applicants have been screened.
C) list has been reduced to only two or three viable candidates.
D) selection process to be used and the criteria for selection have been decided.
Answer: C
Difficulty: Difficult
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-4

135) Asking two or more advertising companies to make a creative pitch is sometimes called:
A) studying past media purchases.
B) conducting a shootout.
C) studying the firm's client retention rate.
D) switching the contract.
Answer: B
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-4

136) In terms of an advertising agency selection process, a shootout includes:


A) goal setting processes.
B) developing selection criteria.
C) obtaining references.
D) evaluating creative pitches.
Answer: D
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-4

33
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137) A creative pitch by an advertising agency seeking a new client should:
A) reveal how the agency would deal with specific issues in preparing a campaign.
B) nearly always be presented by top ad executives.
C) be refused because the client company has not clarified its selection criteria.
D) be the first step in the selection process.
Answer: A
Difficulty: Difficult
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 5-4

138) In choosing an advertising agency, Lycra's marketing managers asked three different
agencies to make a presentation about how each would enhance the unique position of the Lycra
brand. What d is this process called?
A) Unique selling proposition presentation
B) A shootout
C) Creative exposure
D) Creative presentation
Answer: B
Difficulty: Moderate
Question Tag: Application
AACSB Category: Reflective thinking
Objective: 5-4

139) Personal chemistry is a selection factor that should:


A) be examined early in the selection process.
B) never affect the choice, which should only be made rationally.
C) determine if an in-house agency should be chosen.
D) be considered in the final stages of selection.
Answer: D
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Reflective thinking
Objective: 5-4

140) The first step in selecting an advertising agency is to decide the criteria that will be used for
the selection process.
Answer: FALSE
Difficulty: Easy
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-4

34
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141) In terms of selecting an advertising agency, without clearly understood goals, it is virtually
impossible to choose an agency because company leaders may not have a clear idea of what they
want to accomplish.
Answer: TRUE
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-4

142) Matching the size of an advertising agency to the size of the client company is typically not
a key issue in agency selection.
Answer: FALSE
Difficulty: Easy
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-4

143) When an advertising agency has relevant experience in a particular product category but not
with a particular brand, it creates a conflict of interest.
Answer: FALSE
Difficulty: Easy
Question Tag: Critical Thinking
AACSB Category: Analytical thinking
Objective: 5-4

144) If an advertising agency had represented a dine-in restaurant in the past but no longer has
the account, it would be a conflict of interest for another dine-in restaurant to hire the agency.
Answer: FALSE
Difficulty: Difficult
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 5-4

145) One method to measure the creative reputation and capability of an advertising agency is to
look at a list of awards the company has received for past campaigns.
Answer: TRUE
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Reflective thinking
Objective: 5-4

35
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146) Winning a variety of advertising awards for creativity assures a company that an advertising
agency can be objective in developing a campaign.
Answer: FALSE
Difficulty: Difficult
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 5-4

147) In selecting an advertising agency, it is important to assess the agency's production


capabilities and media purchasing capabilities, even if these services will not be a part of the
contract with the agency.
Answer: FALSE
Difficulty: Moderate
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 5-4

148) The request for a creative pitch would occur when the list of candidate advertising agencies
is reduced to the one that has been selected.
Answer: FALSE
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-4

149) Knowing an advertising agency's client retention rate helps reveal how effective the agency
has been in working with various clients.
Answer: TRUE
Difficulty: Difficult
Question Tag: Critical Thinking
AACSB Category: Analytical thinking
Objective: 5-4

150) In terms of selecting an advertising agency, a creative pitch is a formal presentation


addressing a specific problem, situation, or set of questions.
Answer: TRUE
Difficulty: Easy
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-4

36
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151) When two or more companies compete for a contract with their own creative pitches, the
process is called a shootout.
Answer: TRUE
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-4

152) Normally every company that asks to be considered for an advertising campaign will
prepare a creative pitch as part of the application.
Answer: FALSE
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-4

153) Chemistry is the feeling that an advertising agency and a client company will work well
together.
Answer: TRUE
Difficulty: Easy
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-4

154) If a company's marketing manager says, "I have a good feeling about working with this
advertising agency," chemistry is probably present.
Answer: TRUE
Difficulty: Moderate
Question Tag: Application
AACSB Category: Application of knowledge
Objective: 5-4

155) Name the steps involved in selecting an advertising agency.


Answer:
1. Set goals
2. Select criteria
3. Screen initial list of applicants
4. Request client references
5. Reduce list to 2 or 3 viable agencies
6. Request creative pitch
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-4

37
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156) The key go-between for the advertising agency and a client company is usually the:
A) account executive.
B) creative.
C) account planner.
D) traffic manager.
Answer: A
Difficulty: Easy
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-5

157) The account executive normally performs all of the following functions except:
A) actively seeks new accounts.
B) serves as a liaison between the client and the agency.
C) prepares ad copy.
D) helps define the theme of the overall IMC campaign.
Answer: C
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-5

158) The ________ works closely with the account executive to schedule the various aspects of
the agency's work to ensure the work is completed by the target deadline.
A) account planner
B) traffic manager
C) media buyer
D) media planner
Answer: B
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-5

159) The ________ develops and produces the actual advertisement.


A) account executive
B) creative
C) account planner
D) media planner
Answer: B
Difficulty: Easy
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-5

38
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160) Who is in charge of maintaining project history, creating schedules, managing resources,
setting up team meetings, prioritizing projects, training new employees about agency processes,
setting up new clients, routing proofs, proofreading material, and whatever else needs to be done
to ensure deadlines are met?
A) Account executive
B) Creative
C) Traffic manager
D) Account planner
Answer: C
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-5

161) Within an advertising agency, the voice of the consumer is represented by the:
A) account executive.
B) creative.
C) account planner.
D) media planner.
Answer: C
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-5

162) An advertising account planner is the key go-between for the advertising agency and the
client company.
Answer: FALSE
Difficulty: Easy
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-5

163) An advertising account executive is the person who actually develops and produces the
advertisement.
Answer: FALSE
Difficulty: Easy
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-5

164) A traffic manager is the person who schedules media for advertising.
Answer: FALSE
Difficulty: Easy
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-5
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165) Creatives are the people who actually develop and produce advertisements.
Answer: TRUE
Difficulty: Easy
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-5

166) The account planner works closely with the account executive to schedule meetings and to
explore the various media options that can be used during the campaign.
Answer: FALSE
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-5

167) One of the tasks of the account planner is to make sure the creative team at the advertising
agency understands the consumer, or business, that is being targeted by the advertising
campaign.
Answer: TRUE
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-5

168) What roles do advertising account executives play in developing campaigns?


Answer: The advertising account executive is the key go-between for the agency and the client
company. The executive solicits the account, finalizes the details of the contract, works with the
creative department that will prepare the campaign, and helps the client company define its
major message.
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-5

169) Describe the work of the creative in creating an advertising campaign.


Answer: Creatives are the persons who actually develop and produce advertisements.
Difficulty: Easy
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-5

40
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170) Advertising goals are derived from:
A) communications market analysis.
B) the message theme.
C) communication objectives.
D) the mission statement of the company.
Answer: C
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-6

171) All of the following are examples of advertising goals except:


A) building brand image.
B) defending against lawsuits.
C) to inform.
D) to persuade.
Answer: B
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-6

172) From the methods listed below, the best method for building brand awareness is:
A) consumer promotions.
B) advertising.
C) trade promotions.
D) personal selling.
Answer: B
Difficulty: Difficult
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 5-6

173) A top-of-mind brand is the:


A) company's chief competitor, as identified by a competitive analysis.
B) brand that comes to mind in a product category when asked to name the first brands a person
can think of.
C) most expensive good or service in a product category.
D) purchasing alternative when the primary product is not available.
Answer: B
Difficulty: Easy
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-6

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174) A customer who reports that Lexus is the first car he thinks of in the "luxury automobile"
category is describing a ________ brand.
A) top-of-mind
B) top-choice
C) quality choice
D) top-of-industry
Answer: A
Difficulty: Moderate
Question Tag: Application
AACSB Category: Application of knowledge
Objective: 5-6

175) When a customer prefers a specific brand, that brand is called:


A) top-of-mind.
B) top-choice.
C) quality choice.
D) top-of-industry.
Answer: B
Difficulty: Easy
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-6

176) A customer who always buys Coke and Dr. Pepper, and no other brands, holds these two
products as:
A) quality brands.
B) price brands.
C) top-choice brands.
D) continuous choices.
Answer: C
Difficulty: Moderate
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 5-6

177) A brand that is both top-of-mind and top-choice reflects:


A) a high degree of brand parity.
B) a high level of brand equity.
C) brand availability.
D) distinct private branding.
Answer: B
Difficulty: Difficult
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 5-6

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178) In business-to-business situations, being top-of-mind or top-choice is most important in:
A) modified rebuy situations.
B) straight rebuy situations.
C) new task purchases.
D) contract review situations.
Answer: A
Difficulty: Difficult
Question Tag: Critical Thinking
AACSB Category: Analytical thinking
Objective: 5-6

179) A Campbell's Soup print advertisement shows a young family enjoying a bowl of soup with
the Campbell's name and logo prominently displayed in the ad. Copy talks about how Campbell's
Soup is the best. The advertising goal of this advertisement is to:
A) build brand awareness.
B) inform.
C) persuade.
D) support other marketing efforts.
Answer: C
Difficulty: Difficult
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 5-6

180) Providing a retail store's location and operating hours to the public in an advertisement is an
example of ad designed to meet the advertising goal of:
A) building brand image.
B) persuasion.
C) encouraging action.
D) informing.
Answer: D
Difficulty: Difficult
Question Tag: Application
AACSB Category: Reflective thinking
Objective: 5-6

181) An advertisement for an Applebee's restaurant that provides information about its location,
operating hours, and different types of food it offers seeks to achieve which advertising goal?
A) Build brand image
B) Inform
C) Persuade
D) Support other marketing efforts
Answer: B
Difficulty: Difficult
Question Tag: Application
AACSB Category: Application of knowledge
Objective: 5-6
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182) A Campbell's Soup advertisement is designed to support the launch of a new type of soup
and to tell consumers about a special sweepstakes that is tied into the launch. The advertising
goal of this advertisement is to:
A) encourage action.
B) inform.
C) persuade.
D) support other marketing efforts.
Answer: D
Difficulty: Difficult
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 5-6

183) When a television advertisement makes a special offer on a piece of luggage encouraging
viewers to call a toll-free number to take advantage of the special, the ad is designed to achieve
the goal of:
A) building brand image.
B) informing.
C) persuading.
D) encouraging action.
Answer: D
Difficulty: Difficult
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 5-6

184) In media selection in the business-to-business sector, it is important to know:


A) the trade journals and business publications members of the buying center read.
B) the television shows the members of the buying center watch.
C) where the buying center members go for product information.
D) which media the deciders use for product information.
Answer: A
Difficulty: Difficult
Question Tag: Application
Objective: 5-6

185) A recent trend in media selection is to:


A) put media planners on the creative team.
B) use account planners to work with advertising agencies in designing advertising campaigns.
C) involve media companies in the latter stages of advertising campaign design.
D) involve media companies in the early stages of the advertising design process.
Answer: D
Difficulty: Difficult
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-6

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186) The key phrase in an advertisement that is memorable and identifies the uniqueness of the
brand is:
A) the creative brief.
B) product positioning.
C) variability theory.
D) a tagline.
Answer: D
Difficulty: Easy
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-6

187) A consumer seeing an advertisement in different environments to enhance encoding of the


message is based on:
A) the creative brief.
B) product positioning.
C) variability theory.
D) the tagline.
Answer: C
Difficulty: Easy
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-6

188) All of the following statements about variability theory are true except:
A) ads placed in varying environments increase recall and improves encoding of the message.
B) variability can be obtained by modifying the product positioning strategy used within the
campaign.
C) placing an advertisement in two different media would be an example of variability theory.
D) variability can be obtained by changing the situational context of an ad.
Answer: B
Difficulty: Difficult
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 5-6

189) All of the following statements about campaign duration are true except:
A) changing ads within a campaign too frequently can impede message retention.
B) typical duration for most campaigns is around 1 year.
C) a campaign should last long enough for the message to be embedded in consumers' long-term
memories.
D) the criterion typically used to determine when to change a campaign is wear-out effect.
Answer: B
Difficulty: Difficult
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 5-6
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190) Building a strong global brand and corporate image is an important advertising goal.
Answer: TRUE
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-6

191) A key component of building brand image and brand equity is developing brand awareness.
Answer: TRUE
Difficulty: Difficult
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 5-6

192) Successful brands exhibit two characteristics: top-choice and top-preference.


Answer: FALSE
Difficulty: Easy
Question Tag: Application
AACSB Category: Reflective thinking
Objective: 5-6

193) A top-of-mind brand creates the impression that it is the easiest to buy.
Answer: FALSE
Difficulty: Easy
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-6

194) A top-choice brand is the one that the customer ordinarily prefers in his or her evoked set
when making a purchase decision.
Answer: TRUE
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-6

195) When Chad is asked which brand of razor he is most inclined to buy, his response will be
his top-choice brand.
Answer: TRUE
Difficulty: Difficult
Question Tag: Application
AACSB Category: Application of knowledge
Objective: 5-6

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196) Providing information in an advertisement is most useful in the business-to-business buying
situation when members of the buying center are in the information search stage of the
purchasing process.
Answer: TRUE
Difficulty: Difficult
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 5-6

197) Persuasive advertising is used more in the business-to-business sector than in consumer
marketing.
Answer: FALSE
Difficulty: Difficult
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 5-6

198) Advertisements designed to meet the goal of encouraging action are often used in the
business-to-business sector.
Answer: TRUE
Difficulty: Moderate
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 5-6

199) Selecting the appropriate media requires an understanding of the media-usage habits of the
company's target market and then matching that information with the profile of each medium's
audience.
Answer: TRUE
Difficulty: Easy
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-6

200) A recent trend in advertising is to involve media companies at the last stage in the campaign
design process.
Answer: FALSE
Difficulty: Difficult
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-6

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201) The key phrase in an advertisement, such as "Just Do It" for Nike is called a tagline.
Answer: TRUE
Difficulty: Easy
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-6

202) The current trend in developing taglines is to make them longer.


Answer: FALSE
Difficulty: Easy
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-6

203) Consistency across advertising campaigns is ordinarily not a major concern in advertising
management.
Answer: FALSE
Difficulty: Easy
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-6

204) In terms of consistency, visual consistency is more important than written or verbal content.
Answer: TRUE
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-6

205) Repetition of visual elements, taglines, copy or other elements within an advertising
campaign increases ad recall, but not brand recall.
Answer: FALSE
Difficulty: Difficult
Question Tag: Definition (Concept)
AACSB Category: Reflective thinking
Objective: 5-6

206) Variability theory suggests that a consumer seeing an advertisement in different


environments will increase recall and effectiveness.
Answer: TRUE
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-6

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207) Maintaining consistent product positioning throughout a brand's life makes it more likely
that a consumer will place the brand in his or her cognitive map.
Answer: TRUE
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Reflective thinking
Objective: 5-6

208) In terms of campaign duration, changing ads within a campaign frequently will increase
brand recall and enhance the probability the message will be embedded in the consumer's long-
term memory.
Answer: FALSE
Difficulty: Difficult
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-6

209) Identify the most common advertising goals.


Answer:
• Increase brand awareness
• Increase customer traffic
• Increase retailer or wholesaler orders
• Increase inquiries from end-users and channel members
• Provide information
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-6

210) All of the following are components of a creative brief except:


A) stating which media will be used in the campaign.
B) the objective of the campaign.
C) the target market for the campaign.
D) outlining the message theme.
Answer: A
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-7

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211) A creative brief may include all of the following except:
A) an objective of building brand image.
B) specifying the target audience.
C) describing the public relations program.
D) a clear message theme.
Answer: C
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-7

212) The first step in preparing a creative brief is to identify the:


A) target audience.
B) support.
C) objective.
D) message theme.
Answer: C
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-7

213) In a creative brief, the target audience information should contain:


A) only basic demographic information, such as gender and age.
B) information about the users of a particular product.
C) not only demographic information, but also psychographic information and any other
information that will help the creative better understand the target audience.
D) past purchase behavior of every company or consumer that has purchased the product in
addition to the demographic information.
Answer: C
Difficulty: Moderate
Question Tag: Critical Thinking
AACSB Category: Application of knowledge
Objective: 5-7

214) In a creative brief, the message theme is the:


A) rationale behind a unique selling point.
B) benefit or promise the advertiser wants to convey.
C) written or verbal component of the ad.
D) information provided in the ad to support the key idea.
Answer: B
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-7

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215) In a creative brief, the message theme is:
A) a form of leverage point.
B) the media choices a company makes.
C) the key idea(s) an advertisement conveys.
D) the type of appeal that is used in an advertisement.
Answer: C
Difficulty: Easy
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-7

216) A "left-brain" advertisement is:


A) oriented towards the logical, rational side of the brain.
B) oriented towards the emotional or feeling side of the brain.
C) used primarily for consumer advertisements.
D) used with pulsating distribution schedules.
Answer: A
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-7

217) A "right-brain" advertisement is:


A) oriented towards the logical, rational side of the brain.
B) oriented towards the emotional or feeling side of the brain.
C) used primarily for business-to-business advertisements.
D) used with pulsating distribution schedules.
Answer: B
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-7

218) The advertising support component of the creative brief includes:


A) media selection and media buys.
B) the creative brief's constraint component.
C) the nature of the advertising appeal.
D) the facts which substantiate a unique selling point.
Answer: D
Difficulty: Easy
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-7

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219) In a creative brief, an endorsement by 8 out of 10 doctors recommending a product is a
form of:
A) disclaimer.
B) message theme.
C) support.
D) constraint.
Answer: C
Difficulty: Moderate
Question Tag: Application
AACSB Category: Application of knowledge
Objective: 5-7

220) Which product is most likely to include a disclaimer warranty?


A) Medicine
B) Shirt
C) Hammer
D) Scotch tape
Answer: A
Difficulty: Moderate
Question Tag: Application
AACSB Category: Application of knowledge
Objective: 5-7

221) A disclaimer warranty typically specifies each of the following except:


A) the conditions under which a warranty will be honored.
B) statements about past legal actions regarding the product.
C) potential hazards associated with products.
D) the terms of financing agreements, bonuses, and discounts.
Answer: B
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-7

222) For a creative brief, constraints include all of the following except:
A) left-brained appeals.
B) disclaimers.
C) copyright registrations.
D) trademarks.
Answer: A
Difficulty: Easy
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-7

52
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223) One key step in preparing a creative brief is to identify the target audience of the ad.
Answer: TRUE
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-7

224) In preparing a creative brief, the only information required in terms of the target audience is
demographic characteristics. The creative can research the other information as he or she designs
the ad.
Answer: FALSE
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-7

225) In a creative brief, the message theme is the benefit or promise the advertiser will use to
reach consumers or businesses.
Answer: TRUE
Difficulty: Easy
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-7

226) A "left-brain" advertisement is oriented towards emotion and feelings.


Answer: FALSE
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-7

227) A " right-brain" advertisement is logical, factual, and rational.


Answer: FALSE
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-7

228) In terms of the creative brief, the support takes the form of facts that substantiate the
message theme.
Answer: TRUE
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-7

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229) In terms of the creative brief, legal and mandatory restrictions placed on advertisements are
also called constraints.
Answer: TRUE
Difficulty: Easy
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-7

230) List the elements of a creative brief.


Answer:
• The objective
• The target audience
• The message theme
• The support
• The constraints
Difficulty: Moderate
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 5-7

231) In a means-end chain for milk, the calcium content of milk leads to healthier bones, which
leads to a display of wisdom and a comfortable life free of osteoporosis. The healthier bones
component of the means-end chain is the:
A) product attribute.
B) consumer benefit.
C) leverage point.
D) personal value.
Answer: B
Difficulty: Difficult
Question Tag: Application
AACSB Category: Reflective thinking
Objective: 6-1

232) In a radio advertisement, if a consumer can see an image in the mind, then the effect is
greater:
A) than if the consumer could see the actual visual.
B) only if the image is concrete.
C) only if the image is abstract.
D) than an ad with an abstract image, but less effective than an ad with a concrete image.
Answer: A
Difficulty: Difficult
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 6-3

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