Question 1

Track Inc., a bike manufacturer, decides to launch a new model.If Track decides to use a persuasive rather than informational strategy, which of the following components is likely to be the focus of the advertisement?

Accepted Answer

A)  Price
B)  Performance
C)  Durability
D)  Specifications
E)  Attractiveness E

Question 2

According to the "advertising equals information" ideology, advertising causes consumers to

Accepted Answer

A)  value product attributes differently.
B)  become brand loyal.
C)  become more price-sensitive.
D)  perceive fewer substitutes for advertised brands.
E)  give up comparison of competitive offerings.

Question 3

The Great Brands campaign, developed by the American Advertising Federation, promoted the economic power of advertising by

Accepted Answer

A)  providing financial incentives to smaller firms in the industry.
B)  featuring companies synonymous with quality advertising.
C)  protesting against restrictions enforced by the Children's Advertising Review Unit.
D)  voting against offensive and obnoxious advertising.
E)  enforcing restrictions on unethical and immoral advertising.

Question 4

Topaz is a brand of wrist watches manufactured by Krypton Inc.Krypton spends little money on its advertising, yet Topaz is a highly successful brand owing to its attractive features, exquisite design, and performance.The success of Topaz can be interpreted as evidence that

Accepted Answer

A)  advertising increases product costs and prices.
B)  advertising is a major barrier to entry.
C)  product quality is an important determinant of a brand's success.
D)  advertising is not needed for a brand to be successful.
E)  advertising can minimize competition based on product improvement.

Question 5

Which of the following is the most important source of revenue for newspapers and magazines?

Accepted Answer

A)  sales
B)  subscriptions
C)  editorials
D)  advertising
E)  donations

Question 6

Consumer advocates argue that

Accepted Answer

A)  advertising should create brand loyalty rather than provide mere information.
B)  advertising is useful to consumers as it creates an equal and content society.
C)  advertising makes consumers aware of their needs, rather than creating needs.
D)  advertising reduces the market power of large companies.
E)  advertising costs are expenses that make the price higher for consumers.

Question 7

Advertisers spend billions of dollars each year to reach children because

Accepted Answer

A)  they are not vulnerable to advertising.
B)  their direct purchases are influenced by television.
C)  they can easily interpret the selling intent of a message.
D)  they do not have much influence on their family's spending.
E)  products made for children are more saleable.

Question 8

Research has shown that nonverbal behaviors involving _____ are associated more with boys than girls.

Accepted Answer

A)  passivity and knowledge
B)  dominance and control
C)  aggression and lack of credibility
D)  passivity and trustworthiness
E)  aggression and lack of knowledge

Question 9

Large advertisers usually sell more of a product or service, which means they may have lower production costs and can allocate more monies to advertising, so they can afford the costly but more efficient media like network television.Which of the following phenomena describes this effect?

Accepted Answer

A)  economies of scale
B)  economic censorship
C)  diversification
D)  Protestant ethic
E)  differentiation

Question 10

Which of the following statements supports the ideology that advertising equals market power?

Accepted Answer

A)  Advertising does not change the way customers value various product attributes.
B)  Industry prices of products in the market decrease as a result of advertising.
C)  Advertising encourages new brands to enter the market.
D)  Only the relationship between price and quality affects elasticity for a product.
E)  Firms are insulated from market competition and they can be more discretionary.

Question 11

Maya argues that advertising to children is unethical.If Talia disagrees with her, which of the following arguments offered by Talia is the most plausible?

Accepted Answer

A)  Young children can differentiate between advertisements and programs.
B)  Children can differentiate between reality and fantasy.
C)  Children can use their cognitive defenses against misleading ads.
D)  Existing restrictions are enough to control children's advertising.
E)  Advertising is a part of life and children must learn to deal with it.

Question 12

According to the Children's Advertising Review Unit (CARU), parents, and not advertisers, are responsible for protecting children from their own susceptibilities while viewing advertisements.

Accepted Answer

A) True 
 B)False

Question 13

Vendre Inc., a clothing company, spends over $2 billion annually on advertising for its various products.It gains market leadership even though other, smaller brands produce products of higher quality and offer better prices.This is an example of how a large advertiser can help achieve a competitive advantage based on

Accepted Answer

A)  differentiation.
B)  economies of scale.
C)  economic censorship.
D)  diversification.
E)  the Protestant ethic.

Question 14

Which of the following is a major reason for the American Advertising Federation (AAF)  to develop an integrated marketing communications (IMC)  campaign?

Accepted Answer

A)  to provide proof for the advertising industry's capabilities
B)  to redefine advertising in the eyes of corporate executives
C)  to encourage the development of new advertising agencies
D)  to help advertisers improve product differentiation
E)  to encourage purchase of more time and space in traditional media B

Question 15

Which of the following products' advertisements is least likely be criticized for encouraging materialism?

Accepted Answer

A)  expensive cars
B)  diamond jewelry
C)  wind turbines
D)  specialty foods
E)  furniture

Question 16

The International Advertising Association has been running a campaign for several years to convince consumers around the world of the economic value of advertising.

Accepted Answer

A) True 
 B)False

Question 17

Yevon Inc., a manufacturer of fruit-based beverages, runs its ad on a particular news station.It packages the drinks in boxes and plastic bottles.A recent study done by a local doctor reveals that there is a direct correlation between stomach infections and drinking from juice boxes.Although the doctor does not mention any brand names, the news station decides not to air the news report in compliance with Yevon, its prime sponsor.This is an example of

Accepted Answer

A)  media stereotyping.
B)  consumer socialization.
C)  economic censorship.
D)  shock advertising.
E)  the Protestant ethic. C

Question 18

Critics state that advertising to children is inherently unfair and deceptive and should be banned or severely restricted.Which of the following statements supports this argument?

Accepted Answer

A)  Most advertisements shown in traditional media contain nudity.
B)  Children have a limited ability to interpret the selling intent of a message.
C)  Most advertisements shown in traditional media contain violence.
D)  Children do not have spending power though they can identify products.
E)  The consumer socialization process is slower in children than in adults.

Question 19

Which of the following is a strong argument against the charge that advertisers control the media?

Accepted Answer

A)  All media can obtain advertisements from a variety of sources and hence cannot be influenced.
B)  Advertisers have very little influence in determining the earnings of most media companies.
C)  Most advertisers have a diverse array of media to choose from and hence do not have to influence a particular medium.
D)  To retain public confidence, media must report the news fairly and accurately without showing bias.
E)  News and business departments work together as a unit to minimize the effects of biased influences.

Question 20

Those who believe that materialism is a part of the Protestant ethic are likely to deny material possessions as evidence of success.

Accepted Answer

A) True 
 B)False

Exam 21: Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion

Track Inc., a bike manufacturer, decides to launch a new model.If Track decides to use a persuasive rather than informational strategy, which of the following components is likely to be the focus of the advertisement?

Correct Answer
verified
E

According to the "advertising equals information" ideology, advertising causes consumers to

Correct Answer
verified

The Great Brands campaign, developed by the American Advertising Federation, promoted the economic power of advertising by

Correct Answer
verified

Topaz is a brand of wrist watches manufactured by Krypton Inc.Krypton spends little money on its advertising, yet Topaz is a highly successful brand owing to its attractive features, exquisite design, and performance.The success of Topaz can be interpreted as evidence that

Correct Answer
verified

Which of the following is the most important source of revenue for newspapers and magazines?

Correct Answer
verified

Consumer advocates argue that

Correct Answer
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Advertisers spend billions of dollars each year to reach children because

Correct Answer
verified

Research has shown that nonverbal behaviors involving _____ are associated more with boys than girls.

Correct Answer
verified

Large advertisers usually sell more of a product or service, which means they may have lower production costs and can allocate more monies to advertising, so they can afford the costly but more efficient media like network television.Which of the following phenomena describes this effect?

Correct Answer
verified

Which of the following statements supports the ideology that advertising equals market power?

Correct Answer
verified

Maya argues that advertising to children is unethical.If Talia disagrees with her, which of the following arguments offered by Talia is the most plausible?

Correct Answer
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According to the Children's Advertising Review Unit (CARU), parents, and not advertisers, are responsible for protecting children from their own susceptibilities while viewing advertisements.

Correct Answer
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Correct Answer
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Which of the following is a major reason for the American Advertising Federation (AAF) to develop an integrated marketing communications (IMC) campaign?

Correct Answer
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B

Which of the following products' advertisements is least likely be criticized for encouraging materialism?

Correct Answer
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The International Advertising Association has been running a campaign for several years to convince consumers around the world of the economic value of advertising.

Correct Answer
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Correct Answer
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C

Critics state that advertising to children is inherently unfair and deceptive and should be banned or severely restricted.Which of the following statements supports this argument?

Correct Answer
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Which of the following is a strong argument against the charge that advertisers control the media?

Correct Answer
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Those who believe that materialism is a part of the Protestant ethic are likely to deny material possessions as evidence of success.

Correct Answer
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Exam 21: Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion

Track Inc., a bike manufacturer, decides to launch a new model.If Track decides to use a persuasive rather than informational strategy, which of the following components is likely to be the focus of the advertisement?

Correct AnswerverifiedE

According to the "advertising equals information" ideology, advertising causes consumers to

Correct AnswerverifiedShow Answer

The Great Brands campaign, developed by the American Advertising Federation, promoted the economic power of advertising by

Correct AnswerverifiedShow Answer

Topaz is a brand of wrist watches manufactured by Krypton Inc.Krypton spends little money on its advertising, yet Topaz is a highly successful brand owing to its attractive features, exquisite design, and performance.The success of Topaz can be interpreted as evidence that

Correct AnswerverifiedShow Answer

Which of the following is the most important source of revenue for newspapers and magazines?

Correct AnswerverifiedShow Answer

Consumer advocates argue that

Correct AnswerverifiedShow Answer

Advertisers spend billions of dollars each year to reach children because

Correct AnswerverifiedShow Answer

Research has shown that nonverbal behaviors involving _____ are associated more with boys than girls.

Correct AnswerverifiedShow Answer

Large advertisers usually sell more of a product or service, which means they may have lower production costs and can allocate more monies to advertising, so they can afford the costly but more efficient media like network television.Which of the following phenomena describes this effect?

Correct AnswerverifiedShow Answer

Which of the following statements supports the ideology that advertising equals market power?

Correct AnswerverifiedShow Answer

Maya argues that advertising to children is unethical.If Talia disagrees with her, which of the following arguments offered by Talia is the most plausible?

Correct AnswerverifiedShow Answer

According to the Children's Advertising Review Unit (CARU), parents, and not advertisers, are responsible for protecting children from their own susceptibilities while viewing advertisements.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is a major reason for the American Advertising Federation (AAF) to develop an integrated marketing communications (IMC) campaign?

Correct AnswerverifiedB

Which of the following products' advertisements is least likely be criticized for encouraging materialism?

Correct AnswerverifiedShow Answer

The International Advertising Association has been running a campaign for several years to convince consumers around the world of the economic value of advertising.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedC

Critics state that advertising to children is inherently unfair and deceptive and should be banned or severely restricted.Which of the following statements supports this argument?

Correct AnswerverifiedShow Answer

Which of the following is a strong argument against the charge that advertisers control the media?

Correct AnswerverifiedShow Answer

Those who believe that materialism is a part of the Protestant ethic are likely to deny material possessions as evidence of success.

Correct AnswerverifiedShow Answer

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E

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B

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C

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