Promo Strategies Exam 4

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1. The first step in measuring the effectiveness of event sponsorship is to:

A) narrowly define the objectives for the event with specific details.
B) set qualitative goals.
C) build evaluation methods into the event sponsorship strategy.
D) measure the implementation and results against predetermined bench-
marks.
E) redefine the organization's objectives in terms of its marketing communi-
cations.: A
2. The four recognition scores generated by the Starch methodology are:

A) recognition, retention, comprehension, and readers per dollar.

B) noting, brand-associated, read-most, and read any.
C) noting, comprehension, seen-associated, and retention.
D) readers per dollar, cost ratios, CPMs, and brand-associated.
E) comprehension, retention, response, and brand-associated.: B
3. ________ occur after an ad or commercial has been in the field.

A) Dummy advertising vehicles

B) Portfolio tests
C) Posttests
D) Physiological measures
E) Consumer juries: C
4. Geena is testing an ad using the nine principles established by Positioning
Advertising Copy Testing (PACT). When she isolates mall intercept partici-
pants and does not disclose what the interviews are about, she is trying to
adhere to the seventh principle, which is to:

A) decide whether to use pretests or posttests.

B) create a model that uses multiple measures.
C) establish communication objectives.
D) provide controls to avoid the biasing effects of the exposure context.
E) develop a consumer response model.: D
5. Which of the following is a weakness associated with a focus group
research?

A) The results are difficult to obtain.

B) Focus groups require quantitative analysis.
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C) Consumers are hesitant to participate.
D) The results are not directly observable.
E) Consumers become instant "experts.": E
6. A way to gather consumers' opinions of concepts is ________, where
consumers in shopping centers are approached and asked to evaluate rough
ads via questionnaires, rating scales, and/or rankings.

A) laboratory testing
B) consumer juries
C) Delphi groups
D) mall intercepts
E) focus groups: D
7. ________ is a readability test that determines the average number of
syllables per 100 words.

A) Dummy testing
B) Contextual testing
C) Portfolio analysis
D) The Flesch formula
E) Burke's reflections test: D
8. The primary metric used in on-air testing method of pretesting finished
broadcast ads is:

A) reaction.
B) jury results.
C) focus group results.
D) portfolio analysis.
E) recall.: E
9. Which of the following is a posttest method used for measuring advertis-
ing effectiveness?

A) concept tests
B) physiological measures
C) readability tests
D) recall tests
E) portfolio tests: D
10. In the context of evaluating media strategies to measure advertising
effectiveness, owing to the increasing costs of media time, it is important
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to evaluate:

A) the value of customer juries.

B) the duration of association between a company and its spokesperson.
C) whether or not to conduct posttesting.
D) the readability of the print ad.
E) flighting versus pulsing or continuous schedules.: E
11. In ________ tests, people are brought to a particular location where they
are shown ads and/or commercials and testers either ask questions about
them or measure participants' responses by other methods—for example,
pupil dilation, eye tracking, or galvanic skin response.

A) laboratory
B) field
C) recognition
D) ground
E) closed: A
12. One method of testing how consumers relate to an ad and process the
information it contains is to measure ________, the degree of brain activation
that occurs when they look at the ad.

A) beta activity
B) electrodermal response
C) alpha activity
D) pupillometrics
E) cerebral response: C
13. Galvanic skin response is also known as:

A) pupillometrics.
B) alpha activity.
C) electrodermal response.
D) beta activity.
E) dermal resolution.: C
14. ________ measures the skin's resistance or conductance to a small
amount of current passed between two electrodes.

A) Dermal-electro resolution
B) Electroencephalographic
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C) Cerebral response
D) Electrodermal response
E) Pupillometrics: D
15. ________ distinguishes between alpha activity in the left and right sides
of a brain and is used to determine how an ad is affecting the mental
processes of the individual viewing it.

A) Pupillometrics
B) Hemispheric lateralization
C) Cerebral response testing
D) Beta activity
E) Gamma activity: B
16. The results of readability tests indicate that a copy is best comprehended
when:

A) impersonal references are drawn.

B) the receiver is unknown.
C) sentences are long and descriptive.
D) the words used have no connotations outside their dictionary definitions.
E) words are concrete and familiar.: E
17. Sometimes participants rate an ad good on all characteristics because
they like a few and overlook specific weaknesses. This tendency, called the
________ effect, distorts the ratings and defeats the ability to control for
specific components.

A) halo
B) recency
C) contextual
D) visual option source
E) stimulus-response: A
18. Brine Inc., a manufacturer of salt, places two different ads for Brine salt in
alternative copies of the December 2016 issue of Kitchen Queen, a popular
food magazine. One ad contains ideas extending the use of salt beyond the
kitchen, and the other describes salt as "Flavor Savor." In this scenario, Brine
is conducting:

A) Flesch tests.
B) bipolar communications tests.
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C) single copy tests.
D) alpha activity tests.
E) split-run tests.: E
19. The set of principles adopted by large advertising agencies to improve
preparation and testing of ads is referred to as:

A) Pre-Advertising Commercial Testing (PACT)

B) Principles of Advertising Consumer Testing (PACT)
C) Post-Advertising Commercial Testing (PACT)
D) Positioning Advertising Copy Testing (PACT)
E) Promotional Advertising Content Testing (PACT): D
20. ________ is a rough commercial test in which a succession of drawings
and/or cartoons is shown to a receiver.

A) Photomatic rough testing

B) Animatic rough testing
C) Single-source testing
D) Finished commercial testing
E) Live-action rough testing: B
21. Which of the following is NOT one of the reasons companies are focusing
on international markets?

A) Economic, social, and political changes around the world have opened
markets with opportunities for greater growth and profits.
B) The United States has been running a balance-of-trade surplus.
C) Domestic markets offer companies limited opportunities for expansion.
D) Foreign markets offer companies from small nations economies of scale
to compete against larger companies.
E) Globalization is revolutionizing the world far more radically and rapidly
than industrial development and technological changes of previous eras.: B
22. For its international advertising, Lambert & Rios Corp., a global clothing
company, uses an organizational approach in which the president of its
global marketing division supervises the company's marketing program in
all the host countries but still provides autonomy to local and regional
marketing directors. This is an example of a:

A) combination of pattern advertising and regional advertising.

B) centralized approach.
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C) combination of the centralized and decentralized approaches.
D) matrix network.
E) decentralized approach.: C
23. ________ are beliefs and goals shared by members of a society regarding
ideal end states of life and modes of conduct.

A) Demographic ideals
B) Heuristics
C) Cultural values
D) Corporate ethics
E) Work-life balance principles: C
24. Which of the following is true of ethnocentrism?

A) It refers to the receptive and heterogeneous attitude prevalent in a host

country.
B) It refers to people's tendency to view their own group as the center of the
universe.
C) It is synonymous with cultural relativism.
D) It is synonymous with the concept of xenocentrism.
E) It is typically considered a negligible aspect of international marketing.: B
25. ________ data can provide insight into the living standards and lifestyles
in a particular country to help companies plan ad campaigns.

A) Political
B) Legal
C) Economic
D) Demographic
E) Social: E
26. If advertisers use a ________, they should know that humorous advertis-
ing appeals are popular in the United Kingdom, but that German consumers
do not respond well to them.

A) localized advertising strategy

B) global public relations strategy
C) centralized marketing strategy
D) global marketing strategy
E) sales promotion tactic: A

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27. Which of the following is a problem associated with global marketing and
advertising?

A) difficulty in obtaining economies of scale in production and distribution

B) differences in consumer needs and usage patterns
C) greater inconsistency in international branding and/or corporate imaging
D) difficulties in coordination and control of marketing and promotional
programs
E) higher advertising production costs: B
28. Developed countries have the ________ infrastructure in terms of the
communications, transportation, and distribution networks needed to con-
duct business effectively in these markets.

A) cultural
B) legal
C) economic
D) demographic
E) political: C
29. Krypton, a developing nation, has a reputation for being unsuitable for
conducting business due to its poor communication and transportation
systems. Its distribution networks are also underdeveloped. In this scenario,
Krypton has a poor:

A) advertising system.
B) demographic environment.
C) economic infrastructure.
D) balance of payments.
E) cultural system.: C
30. When companies follow a ________, the creative team must determine
what type of selling idea, ad appeal, and execution style will work in each
market.

A) localized advertising strategy

B) centralized marketing strategy
C) global marketing strategy
D) global public relations strategy
E) pattern marketing strategy: A

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31. Which of the following elements are important parts of the marketing
program of firms competing in the global marketplace?

A) direct marketing and personal selling

B) publicity and public relations
C) advertising and promotion
D) servicescape and visual merchandising
E) direct selling and personal selling: C
32. Public relations activities are:

A) a popular form of advertising.

B) not effective for dealing with local or regional governments.
C) not applicable on a global scale.
D) usually expensive.
E) used to communicate with the general community.: E
33. Which of the following is true of the "think globally, act locally" approach
to international advertising?

A) It enables the head office to retain control of aspects such as slogans,

themes, and copies.
B) It is synonymous with the "one company, one advertising campaign"
approach.
C) It offers limited autonomy to regional offices.
D) It is essentially a form of xenocentric advertising.
E) It it also referred to as glocal advertising strategy.: E
34. Which of the following is an advantage of using local agencies for each
national market?

A) It provides the local subsidiary with limited freedom.

B) It improves morale in the host office.
C) It reduces diseconomies of scale.
D) It is a highly cost-efficient method.
E) It enables marketers to hire the best talent in each market.: B
35. The communications, transportation, financial, and distribution networks
of a country are part of its:

A) political/legal environment.
B) cultural environment.
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C) demographic environment.
D) international interface.
E) economic infrastructure.: E
36. The Federal Trade Commission (FTC) defines ________ as an express or
implied statement contrary to fact.

A) selective retention
B) comparative disclosure
C) affirmative disclosure
D) misrepresentation
E) selective exposure: D
37. In 2009, ________ ordered Bayer to run a six-month, $20 million correc-
tive advertising campaign for Yaz birth control because its marketing and
advertising made false claims.

A) the FCC
B) the Supreme Court
C) the FTC
D) the US Post Office
E) the FDA: E
38. Advertisers are often supportive of voluntary self-regulation because:

A) it is simple and less time consuming.

B) self-regulation does not require interaction between an agency and a
client.
C) self-regulation is viewed as a way of limiting government interference in
advertising.
D) self-regulation results in even more stringent regulations than what state
and federal agencies want.
E) all clients and agencies are affected by voluntary self-regulation.: C
39. Which of the following statements is true of online behavioral advertising
(OBA)?

A) OBA is regulated by the Electronic Retailing Self-Regulation Program

(ERSP).
B) OBA is based on the seven Self-Regulatory Principles for Electronic
Retailing.
C) OBA uses information collected across multiple unaffiliated websites to
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predict a user's preferences.
D) OBA permits only those advertisements that provide detailed information
about an advertiser's products and services.
E) Companies engaged in OBA are monitored by the Federal Trade Commis-
sion (FTC).: C
40. Which of the following factors does the Federal Trade Commission (FTC)
consider in evaluating an ad for deception?

A) significant omissions of important information

B) presence of superlative words in the advertisement
C) violation of trade regulation rule
D) lack of selective disclosure
E) presence of puffery in the advertisement: A
41. Under its affirmative disclosure requirement, the Federal Trade Commis-
sion (FTC) may require advertisers to include certain types of information in
their ads so that:

A) consumers will be aware of all the consequences and limitations associ-

ated with the use of a product or service.
B) consumers can substantiate the claims made for their product or service.
C) consumers' choice or conduct with regard to a product or service will
remain unaffected.
D) consumers can distinguish exaggeration or inflated claims in advertising
and also recognize puffery.
E) consumers can easily understand any technical data or information pro-
vided.: A
42. Under the ________, the Federal Communications Commission (FCC)
required stations to run commercials about the harmful effects of smoking.

A) Substantial Omission Doctrine

B) Fairness Doctrine
C) Affirmative Disclosure Doctrine
D) Misinterpretation Doctrine
E) Substantiation Doctrine: B
43. Which of the following divisions of the Federal Trade Commission (FTC)
protects consumers from deceptive and unsubstantiated advertising and
enforces the provisions of the FTC Act that forbid misrepresentation, unfair-
ness, and deception in general advertising at the national and regional level?
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A) the Division of Advertising Practices

B) the Division of Advertising Broadcasts
C) the Division of Marketing Practices
D) the Division of Consumer Advertising & Protection
E) the Division of Economic Practices: A
44. Which of the following media has the most stringent review and approval
process for advertising?

A) community radio
B) business magazines
C) the Internet
D) newspaper and trade publications
E) the four major television networks: E
45. Under the Children's Television Act:

A) advertising during children's programming is limited to 12 minutes an

hour on weekdays.
B) the Federal Communications Commission (FCC) possesses the right to
fine advertisers who exceed advertising limits as defined by the act.
C) advertising aimed at children is prohibited.
D) broadcasters are required to provide time for opposing viewpoints on
important issues.
E) advertisers do not have restrictions on the amount of advertising aimed
at children.: A
46. Which of the following statements concerning advertising by attorneys
is true?

A) Ads soliciting personal injury victims help in enhancing the public's

perception of attorneys.
B) Typically, traditional law firms are in favor of using advertising, particularly
on TV, because they believe that it might boost a profession's image.
C) The right for attorneys to advertise is protected under the First Amend-
ment.
D) The U.S. Supreme Court does not permit lawyers to advertise if they earn
more than $100,000 per year.
E) The American Bar Association recently removed all restrictions on the
type of advertising attorneys can use.: C
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47. Which of the following is true of the Children's Advertising Review Unit
(CARU)?

A) It bases its regulations on the protection of children's rights as defined

by the Constitution.
B) It is a division of the Federal Trade Commission.
C) It supervises the advertisements in the United States rather than issuing
self-regulatory guidelines.
D) It limits its review to print media; it does not cover special effects and
animation.
E) It has strict regulatory guidelines for product presentations directed to
children.: E
48. Advertisers use shock advertising primarily to:

A) get consumers' attention amid the clutter.

B) avoid controversy and scrutiny and deliver a direct message.
C) reach conservative or older audiences.
D) create an ethical model of shock advertising for others to follow.
E) increase the brand association of certain products.: A
49. When advertisers make false or misleading claims or fail to award prizes
promoted in a contest or sweepstakes, their ads are likely to be labeled as:

A) deceptive.
B) intrusive.
C) playful.
D) ineffective.
E) childish.: A
50. Advertisers spend billions of dollars each year to reach children because:

A) they can easily interpret the selling intent of a message.

B) their direct purchases are influenced by television.
C) they do not have much influence on their family's spending.
D) they are not vulnerable to advertising.
E) products made for children are more saleable.: B
51. Which of the following statements is indicative of the "advertising equals
market power" school of thought on advertising's role in the economy?

A) Consumers can compare competitive offerings easily and competitive

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rivalry increases.
B) Advertising affects consumer preferences and tastes, changes product
attributes, and differentiates the product from competitive offerings.
C) Advertising makes entry possible for new brands because it can commu-
nicate product attributes to consumers.
D) Advertising informs consumers about product attributes but does not
change the way they value those attributes.
E) Advertising causes consumers to become more price sensitive and buy
best "value.": B
52. Nina argues that it is unfair and deceptive to advertise to children. Which
of the following statements is likely to strengthen her argument?

A) Children can differentiate between commercials and programs.

B) Children require cognitive defenses against misleading advertisements.
C) Children require their parents to make the actual purchase.
D) Children can perceive the selling intent of commercials.
E) Children require no guidance to distinguish between reality and fantasy.-
:B
53. Which of the following supports the view that advertising encourages
materialism?

A) Advertising seeks to promote intellectual rather than materialistic growth.

B) Advertisements promote violence rather than showing images of the good
life.
C) Ads seek to create needs rather than show how a product fulfills needs.
D) Most advertisements are shown during prime time.
E) Many ads are broadcast through nontraditional media.: C
54. Which of the following best describes the consumer socialization
process?

A) It refers to consumers acquiring the skills needed to function in the

marketplace.
B) It explains why consumers will never completely abandon department
store shopping for online shopping.
C) It refers to marketers studying consumers' social skills to understand the
market.
D) It explains how marketers engage consumers in relationship marketing.

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E) It refers to how marketers influence consumers to move from need recog-
nition to final purchase.: A
55. The principles of Positioning Advertising Copy Testing (PACT) state that
a good copy testing system will:

A) test alternative executions at various stages of completion.

B) evaluate responses to the advertising at a single level of the hierarchy of
effects.
C) use a single measure of a single dependent variable to ensure clarity of
interpretation.
D) measure needs satisfaction levels proposed by each advertisement under
consideration.
E) provide measurements that are relevant to the objectives of advertising.: E
56. The major advantage of the laboratory method of testing for advertise-
ment effectiveness is the ________ it affords a researcher.

A) realism
B) external validity
C) lack of bias
D) control
E) generalization: D
57. The day-after recall test would be the most appropriate measure of effec-
tiveness for:

A) a full-page ad in a trade journal aimed at the supermarket industry.

B) a direct mail containing details of products offered by a furniture manu-
facturer.
C) an aerial ad by a leading fast-food chain.
D) the back outside cover position of the May issue of a women's magazine.
E) a 30-second commercial promoting a baseball league on a cable channel.-
:E
58. ________ are a laboratory methodology designed to expose a group of
respondents to a system consisting of both control and test ads.

A) Unstructured focus groups

B) Dummy tests
C) Portfolio tests

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D) Controlled tests
E) Field tests: C
59. The portfolio test for ads assumes that:

A) there is no contextual difference between an animatic rough and a pho-

tomatic rough.
B) field and laboratory tests produce the same results.
C) a consumer will closely scrutinize all ads that he or she sees.
D) ads that yield the highest recall are the most effective.
E) reliability and validity are the most important parts of the testing process.-
:D
60. Which of the following is NOT one of the eight steps to measuring event
sponsorship?

A) Enhance, rather than just change, other marketing variables.

B) Pull Marketing 101 off the shelf.
C) Narrowly define objectives with specifics.
D) Set measurable and realistic goals; make sure everything you do supports
them.
E) Establish solid strategies against which programming will be bench-
marked and measure your programming and effectiveness against the
benchmark.: B
61. Which of the following factors demands different creative and media
strategies as well as changes in other elements of the advertising and
promotional program for foreign markets?

A) language variations from country to country

B) unlimited media options in various countries
C) similar buying behaviors of consumers around the world
D) increase in the overall world literacy rate
E) women's empowerment throughout the world: A
62. Tastes, traditions, and customs are an important part of ________ con-
siderations.

A) legal
B) demographic
C) economic

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D) political
E) cultural: E
63. Drum Inc., a manufacturer of musical instruments, is considering expand-
ing into a foreign market. The company is collecting data relating to age,
income distribution, and gender variations in the potential host country. In
this scenario, Drum is collecting ___________ information.

A) demographic
B) economic
C) legal
D) political
E) cultural: A
64. Which of the following statements is true of cultural values?

A) In today's globalized market, cultural differences are negligible, thus

enabling international advertisers to market their brands easily.
B) Cultural values are personal values and are only applicable on an individ-
ual level.
C) Values and beliefs of a society can affect its receptivity to foreign products
and services.
D) A highly ethnocentric culture will be extremely receptive to foreign prod-
ucts and services.
E) Cultural values have no effect on the market or consumer behavior.: C
65. At the initial stage of an international marketing campaign, many Ameri-
can companies prefer to use an international ad agency based in the United
States with foreign offices in other countries. This is because:

A) U.S. agencies understand world markets better than foreign agencies do.
B) U.S.-based agencies give an advertiser better control of the advertising
process.
C) American culture is mostly used as a basis for understanding other
cultures.
D) U.S. agencies are more creative than foreign agencies in terms of adver-
tising concepts.
E) U.S.-based agencies generally understand local markets better than agen-
cies located in these countries.: B
66. Commercial speech is most accurately defined as:

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A) communication that promotes a commercial transaction.
B) an encoding and decoding tool for commercial communications.
C) a type of comparative advertising used in TV commercials.
D) speech governed by the Fifth Amendment to the U.S. Constitution.
E) an advertising component of broadcast media.: A
67. Which of the following is an important early development in state regula-
tion that is used in 44 states as a basis for advertising regulation?

A) the Better Business Bureau guidelines

B) the Wheeler-Lea Amendment
C) the Printers Ink model statutes
D) Consortium of Trade Association's regulations
E) Fifth Amendment rectifications: C
68. The courts have extended First Amendment protection to:

A) advertisers who do not want to be self-regulated.

B) advertisers who want to use delusory wording in their ads.
C) advertisers to enable them to sue the media for not providing them with
the promised reach and frequency.
D) commercial speech, a speech that promotes a commercial transaction.
E) the findings of marketing research studies.: D
69. PlayNet Inc., a toy manufacturer, believes that it is important to commu-
nicate directly with children rather than their parents. Which of the following
considerations should PlayNet keep in mind while advertising to avoid ethi-
cal issues?

A) The same tools used to reach adults must be used for children for an
effective reach.
B) Ads should be such that children's cognitive defenses are required to
screen messages.
C) Communication that creates a strong need for the product must be de-
signed.
D) Fantasy characters must be used to sell products that children may not
desire as much.
E) The advertisement must be sensitive to the naiveté of children as con-
sumers.: E
70. Which of the following statements can proponents of advertising use
against the charge that advertising makes people buy things they do not
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need?

A) Materialism is an important freedom of choice in an individualistic society.

B) Customers benefit from the economies of scale that occur due to persua-
sive advertising.
C) Most persuasive advertisements do not use emotional appeals to per-
suade customers.
D) Consumers have the freedom to make their own choices when confronted
with persuasive advertising.
E) Advertising provides information on basic needs to customers rather than
persuading them.: D
71. Most print media try to maintain "The Wall" within the organization in
order to ensure independence and credibility. However, it is becoming in-
creasingly difficult to maintain "The Wall." Which of the following is the
primary reason for this?

A) change in the attitude of advertisers

B) increased competition from other media
C) changes in the type of information in print media
D) increased customer awareness and price sensitivity
E) changes in advertising patterns: B
72. Which of the following is true of a focus group?

A) Focus groups require quantitative analysis.

B) Group influences tend to bias participants' responses.
C) This methodology is unattractive as results are typically unattainable.
D) The results of focus groups are typically quantifiable.
E) Focus group samples can be generalized to larger populations.: B
73. One of the weaknesses associated with a focus group research is that the
results are:

A) inaccurate.
B) not quantifiable.
C) difficult to obtain.
D) not directly observable.
E) not immediate.: B
74. Companies prefer to ________ the international advertising and promo-
tion function so that all decisions about agency selection, research, creative
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strategy and campaign development, media strategy, and budgeting are
made at the firm's home office.

A) decentralize
B) globalize
C) centralize
D) regionalize
E) localize: C
75. The ________ examines advertising claims in direct-response advertis-
ing, including infomercials and home shopping channels.

A) Independent Business Alliance

B) Children's Advertising Review Unit
C) Electronic Retailing Self-Regulation Program
D) National Association of Broadcasters
E) Vision Council of America: C
76. The belief that advertising equals ________ reflects traditional economic
thinking that views advertising as a way to change consumers' tastes, lower
their sensitivity to price, and build brand loyalty among buyers of advertised
brands.

A) market power
B) empowerment
C) information
D) ethics
E) equality: A
77. Which of the following sentences is true of readability tests?

A) The communications efficiency of a copy in a print ad can only be tested

with reader interviews.
B) Readability tests are successful in consistently providing direct inputs
from receivers.
C) An advantage of the readability test is that the copies are not mechanical.
D) To be effective, readability tests should be used only in conjunction with
other pretesting methods.
E) This method uses the Delphi group formula.: D
78. When Frito-Lay decided to move to a global campaign to connect world-
wide fans with a consistent storyline, look, and feel from the Doritos brand,
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it created:

A) a consistent international brand image.

B) less desirable economies in production and distribution.
C) longer lead times to introduce products into world markets.
D) more complex coordination of marketing and promotional programs.
E) higher advertising production costs.: A
79. The ________ is a federal agency that was founded in 1934 to regulate
broadcast communication and that has jurisdiction over the radio, television,
telephone, and telegraph industries.

A) U.S. Postal Service

B) National Association of Broadcasters
C) Federal Trade Commission
D) Fairness Doctrine
E) Federal Communications Commission: E
80. 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:

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

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