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Which of the following describes one of the benefits to be gained from the use of publicity?


A) lower credibility than with advertising
B) limited exposure
C) timeliness
D) higher costs than advertising or personal selling
E) loss of control over the message

F) C) and D)
G) A) and C)

Correct Answer

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_____ advertising involves firms on different levels of distribution.


A) Vertical cooperative
B) Vertically integrated
C) Horizontal cooperative
D) Horizontal comparison
E) Horizontally integrated

F) C) and D)
G) B) and C)

Correct Answer

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The two types of sales promotions are:


A) primary-demand and selective-demand.
B) product and service.
C) consumer and trade.
D) sponsor-identified and sponsor-unknown.
E) direct-action and indirect-action.

F) C) and D)
G) A) and C)

Correct Answer

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An ad for Caterpillar brand heavy equipment used in moving logs and lumber in a millyard is in a magazine targeted to lumber producers is an example of _____ advertising.


A) business-to-business
B) institutional
C) direct-action
D) business-to-consumer
E) service

F) B) and D)
G) A) and C)

Correct Answer

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An ad in Ladies' Home Journal paid for by The Potato Board encourages people to eat potatoes, America's favorite vegetable. It even includes a recipe that features potatoes as one the main ingredients. This ad is an example of _____ advertising.


A) technical
B) business-to-business
C) primary-demand
D) selective-demand
E) cooperative

F) A) and E)
G) None of the above

Correct Answer

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Typical advertising objectives include:


A) expanding the use of a product.
B) counteracting product substitution.
C) improving dealer relations.
D) supporting personal selling efforts.
E) doing all of the above.

F) A) and B)
G) C) and D)

Correct Answer

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An advertisement sponsored by the Steel Packaging Council of the American Iron and Steel Institute explains why you should buy produce that is sealed in steel cans as soon as possible after it is picked rather than produce that sits around at the supermarket. This ad is an example of _____ advertising.


A) institutional
B) customer-service
C) primary-demand
D) direct-action
E) reminder

F) A) and D)
G) None of the above

Correct Answer

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As an advertising medium, out-of-home advertising:


A) appeals to the environmentally-aware consumer.
B) is most appropriate for brief messages.
C) is a high cost-per-exposure medium.
D) is the most selective of all advertising media.
E) is a low-CPM medium because of its broad reach.

F) A) and D)
G) D) and E)

Correct Answer

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Which of the following statements about cooperative advertising is True?


A) Cooperative advertising has been encouraged by the Federal Trade Commission as a way to stimulate selective demand.
B) Most cooperative advertising is done on radio.
C) Cooperative advertising appears most frequently on TV.
D) The two types of cooperative advertising are direct-action and indirect-action.
E) Cooperative advertising is often used to extend a firm's promotion budget.

F) All of the above
G) A) and C)

Correct Answer

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In Southern Living magazine, Dillard's department store ads often feature various brands carried by the retailer, such as Estee Lauder cosmetics, Lenox china, and Emma James clothing for women. If Dillard's and the manufacturers share the cost, these ads would be classified as _____ advertising.


A) vertical cooperative
B) integrated
C) direct-action
D) horizontal cooperative
E) comparison

F) A) and E)
G) C) and D)

Correct Answer

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Heather can receive free recipes for Kikkoman soy sauces if she will just write to the address listed in the ad and request the recipes. This recipe offer is an example of:


A) personal selling.
B) medium selection.
C) publicity.
D) a sales promotion.
E) public relations.

F) A) and D)
G) A) and C)

Correct Answer

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The Cattlemen's Beef Board has developed a logo, which it hopes will tell consumers to "Look for the sign of a great meal." The logo is the word BEEF and the silhouette of a cow's head in a circle-around the exterior of the circle is written the words MARK OF QUALITY. Ads in which the board encourage consumers to eat more beef are examples of _____ advertising.


A) secondary-demand
B) institutional
C) primary-demand
D) selective-demand
E) cooperative

F) A) and E)
G) A) and B)

Correct Answer

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An institutional ad for the Atlanta Gas Company would more likely focus on how to save our ozone layer than on gas-powered appliances the company sells.

A) True
B) False

Correct Answer

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People at the beginning of the business decision-making process typically use the yellow pages.

A) True
B) False

Correct Answer

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An advertiser who wants to check how many frozen foods distributors recall seeing an ad for Roadway Transportation System in Traffic World could use a direct test.

A) True
B) False

Correct Answer

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An advertisement for a Charleston, South Carolina Hilton hotel reminding travelers of the historic hospitality, the fine food, and horse-drawn carriage rides available in Charleston is an example of _____ advertising.


A) secondary-demand
B) primary-demand
C) selective-demand
D) indirect-action
E) pioneering

F) A) and D)
G) All of the above

Correct Answer

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An advertising allowance:


A) is paid to newspapers and magazines in order to reserve page space to counter a competitive advertising blitz.
B) equals the portion of the marketing budget to be used for advertising.
C) refers to the proportion of the audience that is exposed to an ad message but does not remember it.
D) is a kind of cash discount offered by a manufacturer to a retailer to encourage the retailer to advertise or . prominently display a product.
E) equals the percentage of the product price that is spent for advertising.

F) A) and E)
G) A) and B)

Correct Answer

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Which of the following factors typically influences the choice of sales promotional device used?


A) the nature of the target audience
B) the organization's promotional objectives
C) the cost of the device
D) current economic conditions
E) all of the above

F) A) and B)
G) B) and E)

Correct Answer

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The rum producers of Puerto Rico have formed an alliance to urge consumers to drink more rum. In terms of primary-demand advertising, these ads are intended to act as _____ advertising.


A) demand-sustaining
B) demand-creating
C) pioneering
D) competitive
E) comparative

F) None of the above
G) A) and C)

Correct Answer

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All advertisers like publicity because publicity is free.

A) True
B) False

Correct Answer

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