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Business Administration - BUS 306 Business Law - Final Exam

Sandra Watson
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According to SS+K, which of the following is both about engaging the audience and discovering opportunities to connect with them?
Choose one answer.
a. Asymmetric idea
b. Guerrilla marketing stunt
c. Audience leverage point
d. Empathetic persuasion

General Mills has sponsored bake-offs around the country to stimulate interest in baking cakes and pies. General Mills invites its “customer bakers” to share stories and recipes on its website. The company has found that this group often creates original ads about General Mills’ products to share with their friends on the bakers’ chat room on the website. This form of advertising is known as which of the following?
Choose one answer.
a. Synergistic advertising
b. Hype
c. Consumer-generated advertising
d. Local advertising

Janet looks on the back of her grocery store receipt and is somewhat surprised to see a sweepstakes entry form. If she wins, the prizes are substantial. She fills out the entry form and turns it into the store the next time she visits. What form of promotion and advertising has the store used to interact with Janet?
Choose one answer.
a. Point-of-purchase advertising
b. Online advertising
c. Customized advertising
d. Bait-and-switch promotion

Simon has decided to support his company’s efforts to distribute information to customers via a catalog that will be shipped to their homes. Which of the following mass media forms will Simon’s company be using if they distribute information in this way?
Choose one answer.
a. Sales promotion premiums
b. Direct mail
c. Word-of-mouth (WOM)
d. Internet

The pitch process can be very costly for both client and agency alike. Assuming that you represent an ad agency that is considering submitting a pitch to a client inquiry, which of the following statements most accurately characterizes the costs that agencies face when pitching a client?
Choose one answer.
a. The client eventually reimburses all costs incurred by agencies during the pitch process.
b. In order to pitch effectively, the agency must allocate material resources and a tremendous number of team hours to meetings, research, and creating the pitch.
c. The cost of the pitch is not as high as it might be, because much of the information contained in a pitch can be used in other pitches.
d. The costs of the pitch are categorized as fixed costs in the ad agency business.

What is advertising’s primary function?
Choose one answer.
a. To inform, persuade, and remind
b. To make the client happy
c. To win coveted advertising awards
d. To cover for marketing mistakes

What type of sales promotion uses logo-emblazoned cups, calendars, pens, and logo clothing?
Choose one answer.
a. Sweepstakes
b. Specialty advertising
c. Contests
d. Bounce-back

What would be the best descriptive term for content that is explicitly created or modified to feature products or services?
Choose one answer.
a. Placement control
b. Product focus
c. Hype
d. Ad-supported content

Which of the following events in history is associated with the rise of advertising?
Choose one answer.
a. The Great Depression
b. World War I
c. World War II
d. The Industrial Revolution

Which of the following is NOT a way that advertising is different from other marketing communications?
Choose one answer.
a. Advertising is non-personal communication.
b. Advertising comes from an identified sponsor.
c. Advertising is the least costly of the promotional elements
d. Advertising persuades.

Advertising not only furnishes useful information to consumers, but it also plays a major role in the economy. Which of the following statements about why advertising plays a role in the economy is true?
Choose one answer.
a. This is because advertising causes an economic chain reaction.
b. This is because advertising costs little compared to other promotional communication.
c. This is because advertising is expected from any successful company.
d. This is because advertising is directly responsible for almost all sales made to consumers.

All of the following are common objections we hear about advertising EXCEPT:
Choose one answer.
a. Ads make us feel bad about ourselves as they constantly throw images of perfect, beautiful people in our faces.
b. Ads constantly make subliminal suggestions that we should smoke, drink alcohol, and have poor morals.
c. Ads invade our privacy.
d. Ads reinforce insulting ethnic and racial stereotypes.

Choose one answer.
a. deny
b. substantiate
c. counter
d. renounce
e. reinforce

Fill in the blank. The “economics of information” perspective means that the information provided by advertising helps reduce _________________.
Choose one answer.
a. Utility
b. Involvement
c. Emotional benefits
d. Disutility

Fill in the blank. When a company communicates misleading information about a product’s environmental benefits, they are said to be guilty of _________________.
Choose one answer.
a. Brainwashing
b. Cultural disinformation
c. Self-praise and false adulation
d. Greenwashing

New products and new businesses are stimulated by advertising’s ability to help suppliers communicate with customers and its ability to also do which of the following?
Choose one answer.
a. Guarantee new product and business success
b. Carry client credit
c. Champion social causes
d. Stimulate demand

Proponents of advertising’s positive role in our culture would most likely see advertising as which of the following?
Choose one answer.
a. A mechanism to establish social order
b. Simply a “mirror” of culture
c. A means to enforce the regulations found within social classes
d. A “distorted mirror” of culture

The Word-of-Mouth Marketing Association (WOMMA) is said to promote Honesty ROI. WOMMA uses the acronym to describe how the industry must be honest. All of the following are components of WOMMA’s ROI EXCEPT:
Choose one answer.
a. Honesty of relationship.
b. Honesty of opinion.
c. Honesty of information.
d. Honesty of identity.

You are part of a group that is trying to reduce what it sees as rampant commercialism in all of our mass media. By sending out counter-messages, your group hopes to disrupt efforts by the corporate world to dominate our cultural landscape. Which of the following terms is most applicable to what your group does?
Choose one answer.
a. deny
b. substantiate
c. counter
d. renounce
e. reinforce
f. Cultural jamming
g. Greenwashing
h. Cultural cleansing
i. Corporate defragging

You work for a nonprofit organization that has important social information for expectant mothers. Though your organization has raised some money for advertising, there will be a serious shortfall in the budget. Which of the following organizations would be the best for providing advertising assistance as long as your group can demonstrate that it has a message that will improve society as a whole?
Choose one answer.
a. American Association of Advertising Agencies
b. Ad Council
c. American Marketing Association
d. Small Business Administration

All of the following are methods of segmenting the business market EXCEPT ________.
Choose one answer.
a. psychographic
b. demographic
c. geographic
d. end-use

Businesses use which of the following methods to communicate with their customers?
Choose one answer.
a. personal selling
b. sales promotion
c. advertising
d. public relations
e. all of the above

Cognitive dissonance ________.
Choose one answer.
a. is defined as pre-purchase anxiety and doubt
b. is more likely to occur as the cost and complexity of the purchase increases
c. is more likely to occur when there is a balance between attitudes, beliefs, and knowledge
d. decreases if the product does not have the desired features

Compared to the purchasing process for consumer products, ________.
Choose one answer.
a. distribution channels for business products are significantly longer
b. customer relationships for business products tend to be short-term and transactions-based
c. personal selling plays a much larger role in business products markets
d. customer service plays a smaller role in the distribution of business products

Consumer behavior refers to ________.
Choose one answer.
a. organizational and consumer purchase decision-making behavior
b. customer spending patterns
c. post-purchase decision-making behavior
d. the consumer decision-making process

Nabisco’s ________ website provides detailed information regarding brands and promotions, but online visitors are not able to purchase products such as Ritz crackers or Oreo cookies.
Choose one answer.
a. marketing
b. intranet
c. extranet
d. corporate

Purchases that have a potentially high level of social or economic consequences are ________.
Choose one answer.
a. usually undertaken with relatively little investment of time and effort
b. known as low-involvement decisions
c. generally made alone without the involvement of others
d. known as high-involvement purchase decisions

San Diego Hospital is offering classes free of charge to the public in the areas of weight control, stress management, and nutrition. The classes indicate that the hospital has adopted a concept of ________.
Choose one answer.
a. production
b. sales
c. seller’s market
d. added value

The current marketing period is referred to as the ________ era.
Choose one answer.
a. production
b. relationship
c. marketing
d. sales

The personal determinants of consumer behavior include the ________.
Choose one answer.
a. culture in which a person is raised
b. individual’s needs and motives
c. family to which one belongs
d. society from which one comes

A marketer that needs qualitative data, should gather which of the following types of information?
Choose one answer.
a. Numerical
b. Verbal
c. Same-source
d. Metric

After Kraft researched a series of its advertisements, it was determined that consumers preferred brighter and lighter colors to depict something that was “more heavenly” in Philadelphia Light Cream Cheese ads. Kraft made improvements in their promotions and enjoyed strong sales results. In scenarios like this one, advertisers solicit feedback on an advertisement or specific new product idea by conducting which of the following?
Choose one answer.
a. Concept design
b. Concept testing
c. Shape analysis
d. Graphic profiling

Assuming that you are a marketing researcher, what form of data would you be acquiring if it had the advantages of being inexpensive, quickly accessible, reliable, and often including large sample sizes?
Choose one answer.
a. Primary data
b. Physiological data
c. Face-to-face interview data
d. Secondary data

Collecting new information about the market directly from consumers through interviews or surveys is known as which of the following?
Choose one answer.
a. Basic research
b. Secondary data
c. Marketing intelligence
d. Primary data

Gallup provides in-depth industry reports based on its proprietary probability-based techniques. Researchers will study a Gallup panel via telephone research, completing 10,000 interviews daily using many different survey forms. Gallup, and others like it, represents what type of information sources?
Choose one answer.
a. Syndicated sources
b. Government sources
c. Pure demographic sources
d. Tri-variable sources

Government is a huge supplier of information to the public. Through such organizations as the Census Bureau, the Bureau of Labor Statistics, and the National Center for Health Statistics, the U.S. Government supplies interested parties with which type of data?
Choose one answer.
a. Secondary
b. Primary
c. Syndicated
d. Virtual

Movie studios often conduct test screenings of their films to do which of the following?
Choose one answer.
a. Generate ideas for marketing campaigns
b. Measure concession sales
c. Determine the award categories that might be appropriate for the film
d. Assist members of the entertainment press

What is the most common method for conducting quantitative research?
Choose one answer.
a. Focus groups
b. Ethnographic studies
c. Surveys
d. Physiological data

Which of the following highly flexible survey methods suffers from high cost, low participation by respondents, and the perception that it is a pseudo sales solicitation?
Choose one answer.
a. Face-to-face interviews
b. Online surveys
c. Telephone surveys
d. Ethnographic surveys

Your company paid a marketing research firm to do an in-depth study of target customers. The information your company learned from this project resulted in a competitive advantage. Which of the following best describes a chief advantage of using the primary data that your firm is enjoying?
Choose one answer.
a. It is time-consuming.
b. It is proprietary.
c. It is less costly.
d. It does subconscious analysis.

A marketing researcher who wants to segment the market by the population’s involvement in an activity should choose which of the following?
Choose one answer.
a. Demographic segmentation
b. Geographic segmentation
c. Behavioral segmentation
d. Physiological segmentation

All of the following are qualities of a good target EXCEPT:
Choose one answer.
a. Measurability.
b. Maturity.
c. Accessibility.
d. Profitability.

All of the following are widely used measures of demographics EXCEPT:
Choose one answer.
a. Gender.
b. Age.
c. Life stage.
d. Attitudes.

Fill in the blank. Identifying the qualities of consumers who are likely to buy your product and then customizing your activity to meet their unique needs is called _______________.
Choose one answer.
a. Target marketing
b. Positioning
c. Segmenting
d. Differentiation

If a researcher were looking for such facts as the total number of firms and the total dollar amount of sales in Canada, the United States, and Mexico, she should begin with which of the following?
Choose one answer.
a. North American Industry Classification System (NACIS) reports
b. International Census Data Index (ICDI)
c. United Nations databank
d. U.S. Chamber of Commerce databank

Mattel introduced a new brand it called Barbie Girls to attract the increasing number of girls who spend a lot of time online in virtual worlds instead of playing with real dolls in the physical world. Which of the following forms of segmentation is Mattel basing its strategy on to reach this target market?
Choose one answer.
a. Behavioral segmentation
b. Geographic segmentation
c. Demographic segmentation
d. Psychographic segmentation

Sources that can identify frequent users of a product category include all of the following EXCEPT:
Choose one answer.
a. Industry group reports.
b. Hypnosis therapy.
c. Surveys of consumer behavior.
d. Product sales.

To get a solid vision of the firm’s potential customers, you would do which of the following?
Choose one answer.
a. Brand the product
b. Target a niche market
c. Position the product
d. Segment the population

Which of the following psychographic segment acronyms would be the best target for products like expensive roadsters and exotic vacations?
Choose one answer.

You are considering the properties of good targets for marketing efforts. You have a target group that is characterized as having sufficient size, a willingness to buy, and an ability to pay. Which of the following properties of a good target does this group display?
Choose one answer.
a. Measurable
b. Profitable
c. Accessible
d. Distinguishable

An advertising manager anticipates that sales for the upcoming year will be $10 million. This figure matches the sales amount for the current year. If the company has traditionally used a percentage-of-sales figure of 10% to set its promotional budget, how much will the promotional budget be for the upcoming year?
Choose one answer.
a. $10,000
b. $100,000
c. $1,000,000
d. More information is necessary to determine the promotional budget.

As the advertising manager for your company, you would like to have a high SOV (Share of Voice). What is the easiest way to obtain high SOV?
Choose one answer.
a. Position the company against its nearest competitor.
b. Focus advertising on the most profitable products within the product line.
c. Use image advertising with an emotional appeal.
d. Buy a lot of ad space.

As the Director of Marketing for your company, you have decided to base the firm’s advertising budget on a percentage of the amount of goods sold last year. What form of budgeting have you chosen for your company?
Choose one answer.
a. Bottom-up budgeting
b. Top-down budgeting
c. Horizontal budgeting
d. Competitive budgeting

Fill in the blank. Although many marketing experts traditionally will evaluate a campaign’s success in terms of intangibles, such as brand awareness, top management insists on more tangible results such as ____________________.
Choose one answer.
a. Return on investment (ROI)
b. Positioning objectives
c. Consumer preferences
d. Winning industry promotion awards

Fill in the blank. Budget decisions are affected by conditions that are ________________ to the client.
Choose one answer.
a. Internal
b. External
c. Both internal and external
d. Irrelevant

Fill in the blank. In ______________ budgeting, company leaders determine the overall amount the firm will spend on promotional activities for the year.
Choose one answer.
a. Top-down
b. Bottom-up
c. Horizontal
d. Synergistic

Fill in the blank. Research indicates that less than ___________ of companies evaluate their communication campaigns on the basis of the campaign’s effect on profits.
Choose one answer.
a. 10%
b. 20%
c. 30%
d. 40%

Sony has a reputation as being a company with a high degree of brand loyalty. Which of the following advertising objective-and-tasks would most likely be something that would be of interest to Sony’s advertising team?
Choose one answer.
a. Overcoming customer complaints
b. Repairing brand reputation
c. Retaining existing customers
d. Product differentiation and initial brand identification

Which method of budgeting is typically used by high-tech start-ups who are generally driven by product innovation?
Choose one answer.
a. percentage-of-sales method
b. competitive budgets
c. all-you-can-afford approach
d. objective-task method

Which of the following is the most frequently used bottom-up budgeting approach?
Choose one answer.
a. Percentage-of-sales
b. Inventory averages
c. Stage-based spending
d. Objective-and-task

According to the company’s website, Whole Foods Market matches its products and service offerings to a particular lifestyle. Which of the following branding strategies is best illustrated by Whole Foods Market’s approach?
Choose one answer.
a. Accountability
b. Consistency
c. Personality
d. Competitive positioning

All of the following are good illustrations of personality traits often found in brands and branding communication strategies EXCEPT:
Choose one answer.
a. Self-confident.
b. Low cost.
c. Wholesome.
d. Romantic.

Fill in the blank. Branding experts agree that a brand’s _____________ is the total benefit that a brand provides to its customers relative to the competition.
Choose one answer.
a. Position
b. Personality
c. Value proposition
d. Image

FUBU clothing manufacturer has decided to refocus marketing efforts from urban, African American males 13-19 years of age to suburban, Caucasian males 17-25 years of age. Which of the following steps in a situation analysis most likely revealed trends that dictated the company’s change in strategy?
Choose one answer.
a. Know who you are
b. Competitive situation
c. Customer situation
d. Economics and cost

What is differentiating your product or service from others using a trademarked name or logo called?
Choose one answer.
a. Branding
b. Segmentation
c. Positioning
d. Differentiation

What is the first step an advertising manager needs to undertake in order to create an advertising strategy?
Choose one answer.
a. Set objectives.
b. Lay plans.
c. Identify the situation.
d. Create a preliminary strategy and test it.

Which of the following is considered to be a primary benefit of branding for the manufacturer?
Choose one answer.
a. Offers legal protection
b. Simplifies decision-making
c. Guarantees profitability
d. Simplifies global entry possibilities

Which of the following is NOT one of the four phases associated with the achievement of an advertising objective through the DAGMAR Process?
Choose one answer.
a. Awareness
b. Comprehension
c. Action
d. Closure

Which of the following is the best example of a solid branding strategy?
Choose one answer.
a. Hire an attractive spokesperson.
b. Design your product’s package to look like the leading competitor.
c. Price your product so it is in line with other competitive products.
d. Create a barrier to market entry.

Which of the following strategies involves formulating a clear image of a product’s values?
Choose one answer.
a. Distribution strategy
b. Branding strategy
c. Segmentation strategy
d. Global strategy

A salesman in a department store won a trip from a clothing manufacturer for selling the most items from its fall line of clothing. This is known as which of the following?
Choose one answer.
a. A rebate
b. Push money
c. A bribe
d. A merchandising allowance

Customer relationship management (CRM) uses the specific information about individual consumers to do which of the following?
Choose one answer.
a. To create more effective marketing communications specific to the consumer
b. To stimulate a bargaining environment: he who has the most information wins
c. To create prediction models for trends
d. To sell that information to other interested marketers

Fill in the blank. Entrepreneur and adventurer Richard Branson would occasionally parachute to grand openings and activities that he wished to promote. Media were notified in advance where he would land. Mr. Branson’s public relations activities would most correctly be described as being a _________________.
Choose one answer.
a. Media event
b. Consumer contact strategy
c. Virtual experience
d. Brand concept

Jones Soda asked its loyal customers to share their enthusiasm for the company’s drink products with at least ten friends via the Internet or social network forums. What is this form of marketing often called?
Choose one answer.
a. Boot-strap marketing
b. Guerilla marketing
c. Subliminal marketing
d. Customer-based marketing

The integrated marketing communications (IMC) perspective emphasizes all of the following EXCEPT:
Choose one answer.
a. Packaging and viral promotions.
b. Use and coordination of all promotional products to support communication.
c. Maximization of available resources even when they are scarce.
d. Specific communications objectives and a plan for reaching those objectives.

What is generally the primary purpose of a coupon that is used as part of an overall integrated marketing communication campaign?
Choose one answer.
a. To encourage immediate purchase
b. To give location or phone numbers to customers
c. To build brand image
d. To provide information on unknown product features

What is the most important element of sales promotion?
Choose one answer.
a. Excellent reputation
b. Lack of consistency
c. Adaptability
d. Limited-time nature

What is the primary reason for using an integrated marketing communications (IMC) approach in advertising?
Choose one answer.
a. It is less costly than other methods.
b. It creates a unified voice that provides a more powerful and memorable message.
c. It is more profitable than any other method.
d. It is the only model that is successful globally.

What is the purpose of public relations (PR)?
Choose one answer.
a. To respond to attacks from the outside public
b. To “spin” the media in important issues
c. To provide copy for public-oriented advertising
d. To build good relationships with the advertiser’s publics

Which of the following is the best example of a nontraditional (new-age) approach to the integrated marketing communications (IMC) perspective?
Choose one answer.
a. A billboard’s size is doubled to ensure sight recognition.
b. A branded billboard is inserted in a videogame to promote the advertiser’s product.
c. Local radio and newspapers coordinate their news release for a new movie.
d. Drink cups at a hamburger franchise promote a new movie.

A local restaurant announced free food for any lefties on August 13 (National Lefthanders Day). People spread the word in the community via the Internet, mobile communication, and word-of-mouth. Passing information in this way is best described as which of the following?
Choose one answer.
a. Buzz
b. Altering reality
c. A press release
d. A video news release

An advertising director is looking for a media format that will have, as one of its strengths, national reach. Which media format should she select?
Choose one answer.
a. Newspapers
b. Magazines
c. Outdoor
d. Radio

For a media buyer considering network television, disadvantages as well as advantages must be considered. All of the following are considered to be disadvantages of using network television in a media mix EXCEPT:
Choose one answer.
a. Aging viewers.
b. High cost.
c. Long lead time for placing an ad.
d. Ad-skipping (TiVo).

In a recent video game, an action hero climbed into his Ford Mustang GT. As he roared away from the curb he checked his TAG watch. Which of the following new communication models would be most closely tied to this example of product placement?
Choose one answer.
a. Viral marketing
b. Advergaming
c. Bootstrap marketing
d. Online advertising

The Sun Spot sunglasses hut is trying to sell its seasonal merchandise via a local TV campaign. Most of the seasonal merchandise is classified as being more mature products. What type of media message strategy would the Sun Spot most likely choose to accomplish their objective?
Choose one answer.
a. Awareness
b. Association
c. Reminder
d. Persuasion

Which of the basic media scheduling patterns would be most appropriate if an advertiser wanted to spread the media’s effects evenly across the duration of the campaign?
Choose one answer.
a. Continuity scheduling
b. Flight scheduling
c. Pulse scheduling
d. Asymmetric scheduling

Which of the following includes a range of text, still-image, animated graphics, streaming video, and interactive advertising?
Choose one answer.
a. Direct mail advertising
b. Guerilla advertising
c. Out-of-home advertising
d. Online advertising

Which of the following media audiences is the most difficult to measure and segment?
Choose one answer.
a. Magazine
b. Cable TV
c. Radio
d. Out-of-home

Which of the following media beats all other media in letting the advertiser present in-depth information for less cost?
Choose one answer.
a. Newspapers
b. Television
c. Radio
d. Outdoor

Which of the following statements about the state of cell phone advertising in the U.S. today is true?
Choose one answer.
a. Cell phone advertising now receives an average of 18% of all promotional budgets.
b. Cell phone advertising is now available for all cell phone plans.
c. Cell phone advertising is still in its infancy in the United States.
d. Cell phone advertising only works in major cities.

According to research on effective versus ineffective radio ads, duration has great impact. With respect to duration of the commercial, which of the following statements most closely matches those presented in the research?
Choose one answer.
a. The shorter the duration of the commercial the better.
b. Spots of 45 seconds or more are most effective.
c. Duration is not as important as good duplication of a TV soundtrack.
d. Spots that last 15 to 30 seconds are preferable to those that last longer.

Housewives in four focus groups noted that they really loved a recent ad campaign. From this focus group research, what type of evidence have you collected?
Choose one answer.
a. Quantitative evidence
b. Qualitative evidence
c. Random evidence
d. Personal evidence

If you were interested in using ROI as a metric to measure the success of your advertising campaign, which of the following questions would the ROI metric most likely be able to answer?
Choose one answer.
a. Which medium would be best for advertising efforts?
b. What did I spend, and what did I get in return?
c. What would be the best time to advertise?
d. Who in the general public would make the best target customer for the ads?

In a commercial message, what is the function of music throughout the communication?
Choose one answer.
a. To draw attention away from a high price
b. To carry the emotional tone
c. To suggest an activity
d. To help the consumer to focus

The Data Source research agency is looking for an effectiveness metric that will determine whether its online ads are working or not. Specifically, the agency is looking for a measurement model that only notes the revenue event after the consumer “clicks” to see the ad. What metric should Data Source select?
Choose one answer.
a. Cost-per-view (CPV)
b. Cost-per-thousand (CPM)
c. Cost-per-session (CPS)
d. Cost-per-click (CPC)

What is the primary reason that many managers cut advertising from their budgets when money needs to be conserved?
Choose one answer.
a. Many managers see advertising as a cost rather than as an investment.
b. Most managers do not like advertising or the people that work in the field.
c. Most managers do not trust the advice given by advertisers-they always want to spend more.
d. Many managers do not know how to really do advertising correctly and tend to drop it when communication problems occur.

Which elements are key to excellence in advertising?
Choose one answer.
a. Targeting and resources
b. Strategy and tactics
c. Resonance and relevance
d. Creation and delivery

Why is likeability so important to an ad’s success?
Choose one answer.
a. Likeable commercials are less likely to be zapped or avoided.
b. Likeability is the “gatekeeper” to further processing once the likeable ad gets our attention.
c. The positive feelings the ad evokes transfer from the advertisement to the brand.
d. All of the above

You have decided to design a commercial that displays your client’s product’s features, advantages, and price. Which of the following appeals most closely matches the design objectives that you have chosen?
Choose one answer.
a. Values appeal
b. Humor appeal
c. Sex appeal
d. Logical appeal

“John, you have created a wonderful ad that expresses just the right tone and attitude,” said the creative director. Which of the following processes is most closely related to the creative director’s compliment to John?
Choose one answer.
a. Implementation
b. Execution
c. The pitch
d. Creative positioning

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