55 free test bank for m advertising 1st edition by arens

55 Free Test Bank for M Advertising 1st Edition by Arens
Mutiple Choice Questions - Page 1
Since advertising is typically directed to groups of people rather
than to individuals, advertising is defined as:
1.
2.
3.
4.
5.

A. a channeled form of communication.
B. a subtle medium.
C. sponsor-driven strategy.
D. a market segmentation strategy.
E. non-personal or mass communication.

Who is the father of advertising art?
1.
2.
3.
4.
5.

A. Francis Ayer
B. Benjamin Franklin
C. Volney B. Palmer
D. Johannes Gutenberg
E. N.W Ayer

The use of taxation and/or regulation to compensate for or eliminate
the social cost when the sale or consumption of products may

benefit or harm other people who are not involved in the transaction
and didn't pay for the product, falls under the assumption of:
1.
2.
3.
4.
5.

A. many buyers and sellers.
B. absence of externalities.
C. presence of opportunity costs.
D. self-interest.
E. complete information.

Which of the following is an example of a good?
1.
2.
3.
4.
5.

A. A medical examination
B. A church service where music-ministry is the primary theme
C. Paper clips
D. A haircut
E. An extended warranty for a new truck

The period in the evolution of advertising that extended from the
beginning of recorded history to roughly the start of the nineteenth
century was called the:

1.
2.
3.
4.

A. sales era.
B. positioning age.
C. industrial age.
D. industrializing age.


5.

E. preindustrial age.

The 4 Ps of the marketing mix are:
1.
2.
3.
4.
5.

A. product, price, place, and promotion.
B. product, people, process and promotion.
C. people, price, place and product.
D. product, process, people and physical evidence.
E. place, people, product, and process.

What role did the firm N.W. Ayer & Son play in the history of U.S.
advertising?

1.
2.
3.

A. It was the first printer to use illustrations in its ads.
B. It was the first manufacturer to use national advertising.
C. It was the first ad agency to charge a commission based on the "net cost of
space."
4. D. Its advertising claims were the first examined by the Food & Drug
Administration.
5. E. It published the first colonial newspaper with ads.

According to the history of advertising, the _____ made possible the
first advertising formats—posters, handbills, signs and
newspapers.
1.
2.
3.
4.
5.

A. quill pen
B. printing press
C. silk screen
D. ability to mold lead
E. ability to copy and draw

Which of the following statements is true about word-of-mouth
advertising?
1.

2.
3.
4.
5.

A. It is not a communication medium.
B. It is not an advertising medium.
C. It is a paid form of advertising.
D. It is an openly sponsored form of advertising.
E. It has a structured form.

_____ has driven the growth of advertising since its earliest
beginnings and has made it one of the hallmarks of the free
enterprise system.
1.
2.
3.
4.
5.

A. The cultural environment
B. Tactical management strategy
C. Economics
D. Literacy
E. Socialism


What did the first ad in English advertise?
1.
2.

3.
4.
5.

A. A plow
B. Farm land
C. A prayer book
D. A religious service
E. A pub

As a marketing tool, advertising is used to:
1.
2.
3.
4.
5.

A. create unfair advantages among competitors.
B. make people want things they do not need.
C. make products irresistible to the average consumer.
D. increase product use.
E. create monitored feedback.

_____ is the structured and composed non-personal
communication of information, usually paid for and usually
persuasive in nature, about products or ideas by identified sponsors
through various media.
1.
2.
3.

4.
5.

A. Marketing
B. Sales promotion
C. Advertising
D. Feedback
E. Message channeling

During the _____ age, manufacturers were principally concerned
with production. The primary burden of marketing fell on the
wholesalers. They used advertising primarily as an information
vehicle. Advertising to the consumer was the job of the retailers and
the large mail-order catalog companies.
1.
2.
3.
4.
5.

A. preindustrial
B. postindustrial
C. industrializing
D. industrial
E. isolation

_____ is the process of creating, communicating, and delivering
value to customers and for managing customer relationships in
ways that benefit the organization and its stakeholders.
1.

2.
3.
4.
5.

A. Management
B. Advertising
C. Communications
D. Logistics
E. Marketing


Which of the following statements about advertising is true?
1.
2.
3.
4.
5.

A. It does not involve branding.
B. It is usually free.
C. It has an identifiable sponsor.
D. It is just informative communication.
E. It is restricted to a single medium.

Which out of the following assumptions of free market economics,
suggest that people are acquisitive and always want more—for
less?
1.
2.

3.
4.
5.

A. Many buyers and sellers
B. Absence of externalities
C. Presence of opportunity costs
D. Self-interest
E. Complete information

Advertising reaches us through various channels of communication
referred to as:
1.
2.
3.
4.
5.

A. feedback mechanisms.
B. medium.
C. encoding mechanisms.
D. distribution channels.
E. information channels.

Of all the business functions, _____ is the only function whose
primary role is to bring in revenues.
1.
2.
3.
4.

5.

A. finance
B. operation management
C. human relations management
D. marketing
E. accounting

Which of the following organizations is most likely to benefit from a
Public Service Announcement (PSA)?
1.
2.
3.
4.
5.

A. The humane society
B. IBM
C. The American stock exchange
D. Delta airlines
E. Wal-Mart

Which of the following is the best example of a service?
1.
2.
3.

A. A seminar on how to quit smoking
B. A birthday present
C. Vitamins to improve one's health

4.
5.

D. Gift wrapping paper sold as an elementary school fund-raiser
E. A donation of clothes to the Salvation Army

Which of the following statements best describes how Volney B.
Palmer influenced advertising?
1.
2.

A. In 1729, he became the first to use "white space" and illustration in ads.
B. In 1841, he set up the first professional advertising agency in the United
States.
3. C. In 1869, his advertising agency becomes the first to prepare ads for
manufacturers.
4. D. In 1888, he founded Printer's Ink magazine.
5. E. In 1912, he became the first advertising agent to reach $2 million in sales.

During the pre-industrial age, most advertisements took the form of
signs with symbols such as a beer tankard indicating a tavern
because:
1.
2.
3.
4.
5.

A. most people were illiterate and could not read.
B. most advertisers could not afford more sophisticated advertisements.
C. there were laws prohibiting advertising in newspapers.
D. the churches would not approve other forms of advertising.
E. signs and symbols were considered lucky.

Benjamin Franklin:
1.
2.
3.
4.
5.

A. was the first American known to use illustrations in ads.
B. was the first to print color ads.
C. was the first to use copy in ads.
D. printed ads with no clutter.
E. was the first to use testimonials in advertising.

Which of the following ages in the evolution of advertising was
characterized by the Chinese inventing paper, Johannes
Guttenberg inventing the printing press and the Boston Newsletter
beginning to carry advertisements that appealed to American
colonists?
1.
2.
3.
4.
5.

A. Age of reason
B. Industrial age
C. Preindustrial age
D. Industrializing age
E. Mercantile age

Under which situation might advertising not be paid for?
1.
2.
3.

A. Dell recalling its laptops to correct the manufacturing defects.
B. Airtel advertisement promoting it's new logo.
C. Wal-Mart advertising year-end discount sells.


4.

D. CRY advertisement requesting donation for the children of famine affected
Somalia.
5. E. Inaugural advertisement of a new Chevrolet showroom in Texas.

When Mollie buys a box of disposable diapers and June purchases
a copy of the Wall Street Journal, both are acting as:
1.
2.
3.
4.
5.

A. buying centers.
B. consumers.
C. product innovators.
D. strategic points of service.
E. product adopters.

55 Free Test Bank for M Advertising 1st Edition by Arens
Mutiple Choice Questions - Page 2
The term integrated marketing communications means:
1.
2.
3.
4.

A. integrating the concept of marketing and communication.
B. communicating the marketing information to the target audience.
C. integrating sales and communication of the company.
D. integrating the sales force of the company with proper marketing skills to
achieve the desired results.
5. E. integrating all their marketing communications with what the companies
actually do.

To differentiate its candy from that produced by other candy
manufacturers, the manufacturer of Green & Black brand
confections advertises that it is the only company to make its
chocolate organically. This commitment to market only organic
chocolate is an example of a(n):
1.
2.
3.

4.
5.

A. perceptual value.
B. unique selling proposition.
C. economic differential.
D. economic advantage.
E. differential value.

With respect to the evolution of advertising in the United States, the
_____ age started around the turn of the twentieth century and
lasted well into the 1970s.
1.
2.
3.
4.
5.

A. service marketing
B. relationship marketing
C. industrial
D. production
E. mercantile


In 2005, Comcast created AZN, a network for Asian Americans.
What type of strategy did Comcast use when it found this unique
group of consumers who were not being currently reached by a
cable station devoted to their specific needs?
1.

2.
3.
4.
5.

A. Positioning
B. De-marketing
C. Product differentiation
D. Market aggregation
E. Market segmentation

Why is 1896 considered to be an extremely important year for direct
mail advertising and mail-order selling?
1.
2.
3.
4.
5.

A. Advertising agencies were allowed to charge commissions for their
services
B. The U.S. Post Office was created
C. The Office of Consumer Affairs guaranteed that consumers could return
products that did not meet their needs
D. The Federal Communications Commission took over control of all mail
order and direct mail advertising
E. The Federal Government inaugurated rural free mail delivery

A product's _____ is a feature or features that differentiate it from
competitive products.

1.
2.
3.
4.
5.

A. perceptual value
B. unique selling proposition
C. economic differential
D. economic advantage
E. differential value

New brands of consumer luxury and convenience goods developed
by fresh mass markets can be referred to as:
1.
2.
3.
4.
5.

A. product differentiation.
B. consumer packaged goods.
C. market segmentation.
D. positioning.
E. customized packaged goods.

Many urban hotels are creating women-only floors for female
travelers. Enhanced security and toiletries more likely to appeal to
women such as bubble bath and curling irons are made available.
To specifically target women who are traveling on their own, these

hotels have implemented a _____ strategy.
1.

A. product segmentation


2.
3.
4.
5.

B. targeted diversification
C. demarketing
D. market segmentation
E. market aggregation

An end to the Cold War came as the Berlin Wall came down and
Western companies and financiers began to invest heavily in what
were once called Warsaw Pact countries. Big multinational
companies and their advertising agencies went on a binge, buying
other big companies and adding a new term to the financial lexicon.
This term was referred to as:
1.
2.
3.
4.
5.

A. partnering.
B. free market.

C. oligopoly.
D. mega merger.
E. service economy.

Which of the following is the largest advertising medium in terms of
advertising revenues?
1.
2.
3.
4.
5.

A. Internet
B. News papers
C. Magazines
D. Television
E. Radio

By publicizing the material, social, and cultural opportunities of a
free enterprise society, advertising has encouraged:
1.
2.
3.
4.
5.

A. increased productivity by both management and labor.
B. interactive consumption.
C. relationship marketing.
D. a service economy.

E. public sector organizations.

As the U.S. economy slowed over the last decade, companies have
used which cost-effective method to trim their advertising budgets?
1.
2.
3.
4.
5.

A. Operational strategy
B. Tactical implementation of advertising strategy
C. Sales promotions
D. Internet advertising
E. Word-of-mouth advertising

The availability of cable networks devoted to food, home repair,
golf, history and animals is explained by the term:
1.

A. tivo.


2.
3.
4.
5.

B. two-way media.
C. relationship marketing.

D. narrowcasting.
E. segmentation broadcasting.

A decade after World War I ended, a significant event occurred that
caused consumer sales resistance, corporate budget cutting and
advertising expenditures to plummet. This event was:
1.
2.

A. the imposition of a personal income tax by the federal government.
B. the defeat of Germany and its default on loans that had been granted to
them by the victors of the conflict.
3. C. the crashing of the stock market in October 29, 1929.
4. D. the creation of the World Bank, which made additional revenues available
to state and federal banks.
5. E. strong challenges to the idea of a system of consumer credit that had been
advocated by the federal government.

_____ is a type of marketing used to slow down the demand for
certain products, such as energy-consuming goods.
1.
2.
3.
4.
5.

A. Co-marketing
B. De-marketing
C. Environmental advertising
D. Eco-marketing

E. Systems marketing

A(n) _____ is an effective way to separate a particular brand from
its competitors by associating that brand with a particular set of
customer needs that ranked high on the consumer's priority list.
1.
2.
3.
4.
5.

A. logistical strategy
B. universal sales promotion (USP)
C. positioning strategy
D. market aggregation strategy
E. promotional mix

Two related economic factors characterized the marketing world of
the late 1980s and early 1990s in the United States. One of those
factors was:
1.
2.

A. an aging upper management led to a lack of innovation.
B. the growing burden of financial debt, which forced governments to return to
high tax policies directed toward business.
3. C. the implementation of affirmative action policies.
4. D. the aging of traditional products and a corresponding growth of
competition.
5. E. the development of strong consumer trust.

Why did magazines become the ideal medium for advertising in the
1840s?
1.
2.
3.
4.
5.

A. Magazines offered good quality and customized capabilities
B. Magazines were less expensive than newspapers
C. Magazines were read more often than newspapers
D. Advertisers were tired of using newspapers to carry their messages
E. No taxes were imposed on magazine advertising

During the current drought in the southeastern United States,
marketing campaigns were implemented to encourage consumers
to use less water by increasing rates and issuing fines to those who
used more than their fair share. A marketing effort such as this
would be classified as:
1.
2.
3.
4.
5.

A. co-marketing.
B. eco-marketing.
C. de-marketing.

D. relationship marketing.
E. un-marketing.

The industrializing age of nineteenth century saw the shift of
orientation from:
1.
2.
3.
4.
5.

A. production to consumption.
B. sales to consumption.
C. sales to customer relationship management.
D. production to sales.
E. consumption to production.

_____ is a process by which marketers searched for unique groups
of people whose needs could be addressed through more
specialized products.
1.
2.
3.
4.
5.

A. Product segmentation
B. Targeted diversification
C. De-marketing
D. Market segmentation

E. Market aggregation

For years Levi-Strauss advertised its jeans to baby boomers
because that is what most baby boomers wore during the 1960s
and baby boomers are trying to buy back their youth. Unfortunately,
this strategy of making Levi's a baby boomer icon has decreased
the brand's appeal to today's teens who perceive the Levi brand as
old-fashioned. In this example, the _____ did not produce a positive
effect.


1.
2.
3.
4.
5.

A. positioning strategy
B. market aggregation strategy
C. logistical strategy
D. promotional mix
E. universal sales promotion (USP)

What type of strategy is being used by a Web site like
www.CNNMoney.com when it describes itself as "a one-stop
destination covering everything a small-business owner needs to
know" in order to associate itself with benefits that are important to
small business owners?
1.
2.

3.
4.
5.

A. Market penetration
B. Product differentiation
C. Positioning
D. Market segmentation
E. Sales promotion

There is some of the most beautiful scenery in the world at the
Banff National Park in Canada. Too many tourists have led to
potential ecological disasters in the park. In response, park officials
are trying to decrease the number of visitors to the park. They could
use _____ to accomplish this objective.
1.
2.
3.
4.
5.

A. positioning
B. eco-marketing
C. co-marketing
D. de-marketing
E. relationship marketing

The _____ age has been a period of cataclysmic change. For the
first time, people became truly aware of the sensitive environment
in which we live and became alarmed by our dependence on vital

natural resources.
1.
2.
3.
4.
5.

A. service-market
B. post-production
C. market relationship
D. postindustrial
E. customization

Which of the following factors occurred near the end of the
nineteenth century and was one of the most responsible reasons for
accelerating the usage of print ads by manufacturers who wished to
sell their products?
1.

A. The nation had not been in a war for over thirty years


2.
3.
4.
5.

B. The advertising agency had become a reality
C. Newspaper ads were relatively inexpensive
D. The nation had reached a 90 percent literacy rate

E. English was the established language of the United States

Due to PCs, Internet connections, DVDs and cable TV, advertising
is evolving into a(n):
1.
2.
3.
4.
5.

A. two-way medium.
B. reciprocal medium with limited prospects for the future.
C. analog medium.
D. narrowcasting medium.
E. reiterative advertising medium.

The term _____ can be used to explain why most of the automobile
manufacturers produce almost similar products and yet consumers
have developed preferences for specific brands.
1.
2.
3.
4.
5.

A. market segmentation
B. market formatting
C. product differentiation
D. strategic marketing
E. product segmentation