Question 1 (2 points)

Most advertisers do not design their messages with the intention to mislead or deceive consumers or run sweepstakes with no intention of awarding prizes.

Question 1 options:

True

False

Question 2 (2 points)

Which of the following statements is true of the international use of the Internet?

Question 2 options:

The Internet cannot be efficiently used with an IMC program in the global marketplace.

Many companies hope word-of-mouth advertising will encourage greater use of the Internet.

The Internet is an important IMC tool for both large and small companies around the world.

Though English is the native language for only 8 percent of the world's population, English is the language used in close to 20 percent of all e-commerce websites.

During its formative years, the Internet was largely an Asian phenomenon.

Question 3 (2 points)

Which of the following is the best example of the use of puffery in advertising?

Question 3 options:

A bank advertises free checking with a minimum balance of $1,000.

A tire manufacturer advertises a 50,000-mile guarantee for its tires.

A manufacturer of premium chocolates claims that it makes the finest chocolates in the world.

A popular shampoo brand advertises that it has been proven to be effective in preventing dandruff.

A provider of courier services advertises guaranteed overnight delivery service.

Question 4 (2 points)

In 1996, President Clinton signed an executive order declaring that nicotine was an addictive drug and gave the _____ board jurisdiction to regulate the advertising of cigarettes and smokeless tobacco.

Question 4 options:

U.S. Commission for Food and Drugs

Federal Trade Commission

Bureau of Alcohol, Tobacco, and Firearms

Food and Drug Administration

Tobacco Institute

Question 5 (2 points)

Which of the following is a condition that exists in the Children's Advertising Review Unit (CARU) guidelines for advertising?

Question 5 options:

Manufacturers of baby-care products should not advertise their products through fictional characters.

Children's toys should be advertised only in print media.

Advertisers should be cautious not to run baby-care advertisements during prime time.

Advertisements targeting children should be withdrawn from mainstream channels.

Care should be taken to incorporate minority and other groups in advertisements.

Question 6 (2 points)

Which of the following is the right classification for advertisements that project sexually appealing images that don't have much relevance to the products that they advertise?

Question 6 options:

Deceptive advertising

Misleading advertising

Offensive advertising

Untruthful advertising

Ethical advertising

Question 7 (2 points)

Which of the following is a component most likely to be present in a persuasive advertisement?

Question 7 options:

Price

Performance

Social status

Availability

Specifications

Question 8 (2 points)

When a newspaper editor talks about "The Wall" with respect to in-house operations, he or she is referring to:

Question 8 options:

the difference between veteran and cub reporters.

the formal separation of the newspaper's editorial staff and sales force.

how difficult it is to access certain information from internal sources.

the separation of classified advertising from other types of advertising.

the lowest ad-placement rate accepted in the newspaper.

Question 9 (2 points)

Which of the following is best suited to worldwide appeals?

Question 9 options:

Products that are steeped in the cultural heritage of a country

High-tech products with a strong local touch

Products that appeal to a market segment with widely differing tastes, interests, needs, and values

Brands or messages that require translation into different languages

Products with a nationalistic flavor if the country has a reputation in the field

Question 10 (2 points)

Which of the following components is most likely to be reflected in an informational advertisement?

Question 10 options:

Elevation of social status from using the product

Celebrities who use the product

Performance and availability of the product

Attractive appearance of the product

Emotional fulfillment from using the product

Question 11 (2 points)

A number of self-regulatory mechanisms have been established by the business community in an effort to control advertising practices, and among them, the largest and best known is the _____.

Question 11 options:

Federal Trade Commission

Federal Communications Commission

Better Business Bureau

World Trade Organization

Chamber of Deputies

Question 12 (2 points)

One of the main advantages of global marketing and advertising is economies of scale in production and distribution.

Question 12 options:

True

False

Question 13 (2 points)

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

Question 13 options:

Lower-end cars

Diamond jewelry

Wind turbines

Specialty foods

Furniture

Question 14 (2 points)

Which of the following are critics of advertising likely to state as a reason for marketers to engage in deceptive advertising?

Question 14 options:

Most products in the market are not of good quality.

Advertisers usually present only information that is favorable to their position.

The National Advertising Review Council does not regulate deceptive advertisements.

Studies have found that deceptive advertisements increase sales drastically.

Unlike other unethical practices, deceptive advertising has no legal implications.

Question 15 (2 points)

Spamming is the sending of unsolicited multiple commercial electronic messages.

Question 15 options:

True

False

Question 16 (2 points)

PlayNet Inc., a toy manufacturer, believes that it is important to communicate directly with children rather than their parents. Which of the following considerations should PlayNet keep in mind while advertising to avoid ethical issues?

Question 16 options:

Ads should be such that children's cognitive defenses are required to screen messages.

Fantasy characters must be used to sell products that children may not desire as much.

The same tools used to reach adults must be used for children for an effective reach.

The advertisement must be sensitive to the naivet of children as consumers.

Communication that creates a strong need for the product must be designed.

Question 17 (2 points)

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

Question 17 options:

All media can obtain advertisements from a variety of sources and hence cannot be influenced.

Advertisers have very little influence in determining the earnings of most media companies.

Most advertisers have a diverse array of media to choose from and hence do not have to influence a particular medium.

To retain public confidence, media must report the news fairly and accurately without showing bias.

News and business departments work together as a unit to minimize the effects of biased influences.

Question 18 (2 points)

_____ is a strategy of advertising in which certain banned products are indirectly advertised by labeling a non-banned product with a familiar logo so as to develop brand image and easy recall.

Question 18 options:

Aerial advertising

Transit advertising

Surrogate advertising

Cross-selling

Ethnocentric advertising

Question 19 (2 points)

Which of the following factors is responsible for driving U.S. companies to focus on international markets?

Question 19 options:

Rapid population growth

Saturation in domestic markets for many products and services

Low competition from domestic companies

Low competition from foreign companies

Favorable marketing environment within the country

Question 20 (2 points)

Advertising practices considered unfair include claims that might exploit such vulnerable groups as children and older adults.

Question 20 options:

True

False

Question 21 (2 points)

Advertising not only informs customers of available goods and services but also facilitates entry into markets for a firm or a new product or brand.

Question 21 options:

True

False

Question 22 (2 points)

Which of the following is a component of the political/legal environment of a country?

Question 22 options:

Attitudes toward multinational companies

Ethics and moral standards

Stage of economic development

Norms, customs, and taboos

Employment rate and occupation distribution

Question 23 (2 points)

Which of the following beliefs takes a positive view of advertising's economic effects?

Question 23 options:

Advertising equals materialism.

Advertising equals market power.

Advertising equals differentiation.

Advertising equals brand loyalty.

Advertising equals information.

Question 24 (2 points)

Product standardization is becoming increasingly important as a result of longer product life cycles.

Question 24 options:

True

False

Question 25 (2 points)

The U.S. Supreme Court established the _____, a four-part test, to determine restrictions on commercial speech.

Question 25 options:

Virginia Consumer Council Test

Free Speech Matrix

First Amendment Analysis

California Test of Affirmation

Central Hudson Test

Question 26 (2 points)

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?

Question 26 options:

Economies of scale

Economic censorship

Diversification

Protestant ethic

Differentiation

Question 27 (2 points)

There is a general agreement that advertising questions existing stereotypes and creates greater social awareness.

Question 27 options:

True

False

Question 28 (2 points)

From an advertising perspective, which of the following best explains why critics might be opposed to the use of commercial characters or brand mascots as stars of TV shows?

Question 28 options:

Preschool children cannot differentiate between commercials and programs.

Such shows come with requirements for parental guidance and control.

Such shows contain violence that is unsuitable for preschool children.

There are too many commercial slots in these shows.

Children needn't understand advertising to use their cognitive defenses against them.

Question 29 (2 points)

Puffery is as an illegal, deceptive practice.

Question 29 options:

True

False

Question 30 (2 points)

U.S. brands have become popular in many European and Asian countries. Marketers attribute the rising popularity of these U.S.-made products to:

Question 30 options:

the worldwide distribution of American music, films, and TV shows.

the superior quality of their products.

the low prices of the products.

the centralized organizational approach adopted by most U.S. companies.

the increasingly ethnocentric attitudes of consumers around the world.

Question 31 (2 points)

_____ is a marketing approach that assumes that the needs satisfied by a product or service and the ways it is used are the same everywhere in the world, and therefore utilizes a common approach in all countries.

Question 31 options:

Global marketing

Complementary marketing

Localized marketing

Nationalized marketing

Countertrading

Question 32 (2 points)

The Federal Trade Commission (FTC) and U.S. Postal Service have rules that govern the use of _____ plans whereby a company proposes to send merchandise to consumers and expects payment unless a consumer sends a notice of rejection or cancellation.

Question 32 options:

unsolicited order

negative option

contradictory option

false substitution

unsubstantiated order

Question 33 (2 points)

Which of the following elements are important constituents of a marketing program for firms competing in the global marketplace?

Question 33 options:

Servicescape and visual merchandising

Publicity and public relations

Advertising and promotion

Direct marketing and personal selling

Direct selling and personal selling

Question 34 (2 points)

Critics argue that advertising plays a major role in influencing and transmitting social values.

Question 34 options:

True

False

Question 35 (2 points)

_____ are industrywide guidelines used by the Federal Trade Commission (FTC) that define unfair practices before they occur.

Question 35 options:

Trade regulation rules

Affirmative disclosures

Corrective advertising disclosures

Cease-and-desist orders

Advertising guidelines

Question 36 (2 points)

According to research, which of the following products have the reputation of producing the most irritating commercials?

Question 36 options:

Soft drinks

Industrial machinery

Alcoholic beverages

Hemorrhoid treatments

Insurance services

Question 37 (2 points)

American television and print advertising have portrayed men as _____.

Question 37 options:

passive

deferent

achieving

lacking intelligence

dependent

Question 38 (2 points)

The Wheeler-Lea Act withdrew the Federal Trade Commission's (FTC's) power to regulate advertising.

Question 38 options:

True

False

Question 39 (2 points)

As a result of advertising, the products or services of large advertisers are perceived as unique or better than competitors' products. This is referred to as _____.

Question 39 options:

diversification

scalability

economies of scale

innovation

differentiation

Question 40 (2 points)

Consumer-oriented promotional tools such as sampling and high-value coupons are effective for introducing new products into the market.

Question 40 options:

True

False

Question 41 (2 points)

The _____ approach recognizes similar desires, goals, needs, and uses for products and services but tailors advertising to the local cultures and conditions in each market.

Question 41 options:

"concentrated marketing"

"think globally, act locally"

localized

domestic

decentralized marketing

Question 42 (2 points)

Global ad campaigns are appropriate:

Question 42 options:

for brands that play to domestic needs, values, and emotions.

for brands that can be adapted for a visual appeal.

for translating advertising messages into dozens of languages.

for products that appeal to market segments with differing tastes.

for products without a nationalistic flavor.

Question 43 (2 points)

_____ refers to consumers' general perceptions of the quality of products made in a given geo-political region.

Question 43 options:

Cross-selling

Country-of-origin effect

Halo effect

Global imaging

Central Hudson test

Question 44 (2 points)

The Council of Better Business Bureaus plays a major role in controlling advertising practices at the _____ level.

Question 44 options:

national

local

manufacturer

international

regional

Question 45 (2 points)

Defenders of advertising say it is unrealistic to attribute a firm's market dominance and barriers to entry solely to advertising.

Question 45 options:

True

False

Question 46 (2 points)

The _____ regulates and controls the advertising of alcoholic beverages.

Question 46 options:

Federal Commission for Substance Abuse Control

Food, Alcohol, and Drug Administration

Bureau of Alcohol, Tobacco, Firearms and Explosives

Federal Trade Commission

National Association of Attorneys General

Question 47 (2 points)

In which of the following cases would centralization of the advertising function be a disadvantage?

Question 47 options:

When an advertiser wants to maintain a consistent brand image across markets

When an advertiser wants to keep control of its brand message and image

When a product is categorized as a "high-technology product" with universal appeal

When conditions in the various markets differ widely

When a company wants to cut costs

Question 48 (2 points)

Companies prefer to _____ the international advertising and promotion function so that all decisions about agency selection, research, creative strategy and campaign development, media strategy, and budgeting are made at the firm's home office.

Question 48 options:

centralize

decentralize

localize

globalize

regionalize

Question 49 (2 points)

A centralized approach to organizing for international advertising is not suitable when market and media conditions are similar from one country to another.

Question 49 options:

True

False

Question 50 (2 points)

Saved

The _____ is a major trade association of the advertising business in the United States and has established standards of practice and its own creative code.

Question 50 options:

Vision Council of America

Independent Business Alliance

American Association of Advertising Agencies

Federal Trade Commission

National Association of Broadcasters