Chapter 15 Advertising, Sales Promotions, and Personal Selling

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Easy Learning Objective: 15-03 Explain how sales promotions supplement a firm's IMC strategy.. Accessibility: Keyboard N

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Chapter 15 Advertising, Sales Promotions, and Personal Selling

Multiple Choice Questions

1 Which of the following statements is true about the AIDA model?

communication campaign

D It is a series of mental stages through which consumers move.

The AIDA model is a common model of the series of mental stages through which consumers move as a result of marketing communications: Attention leads to Interest, which leads to Desire, which leads to Action

Accessibility: Keyboard Navigation

Blooms: Understand

Difficulty: Easy

Learning Objective: 15-01 Describe advertising and three objectives of advertising.

Topic: 15-02 The AIDA Model

2 Which of the following occurs when consumers recognize the brand when its name is presented to them?

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Blooms: Remember

Difficulty: Easy

3 Which of the following refers to a situation when a brand has a prominent place in people's memories that triggers a response without them having to put any thought into it?

"Harley" when asked about motorcycles

Blooms: Remember

Difficulty: Easy

4 A customer refers to Windows, a product from Microsoft, when asked about an operating system This sort of customer association primarily relates to the:

E attention stage of the AIDA model.

The given customer association is found in the attention stage of the AIDA model Brand awareness refers to a potential customer's ability to recognize or recall that the brand name is

a particular type of retailer or product/service As such, brand awareness is the strength of the link between the brand name and the type of merchandise or service in the minds of

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Difficulty: Moderate

5 Once consumers are aware that a company or product exists, communication must work to:

D increase their interest level.

Once a consumer is aware that a company or product exists, communication must work to increase his or her interest level It is not enough to let people know that the product exists; consumers must be persuaded that it is a product worth investigating

6 The ultimate goal of any marketing communication is to:

B drive the receiver to action.

The ultimate goal of any marketing communication is to drive the receiver to action If the message has caught consumers' attention and made them interested enough to consider the product as a means to satisfy a specific desire of theirs, they likely will act on that interest by making a purchase

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Difficulty: Easy

7 Whenever Sam thinks about smartphone, Samsung comes to his mind What level of awareness is it an example of?

Top of mind awareness is the highest level of awareness It occurs when a brand has a

prominent place in people's memories

Blooms: Apply

8 Lagged effect refers to:

B a delayed response to a marketing communication campaign.

Sometimes consumers do not act immediately after receiving a marketing communication because of the lagged effect—a delayed response to a marketing communication campaign It generally takes several exposures to an ad before a consumer fully processes its message

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Blooms: Remember

Difficulty: Easy

9 What is the ultimate goal of any marketing communication?

10 Identify from the following the type of advertising that primarily communicates to create and build brand awareness, with the ultimate goal of moving the consumer through the buyingcycle to a purchase

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Blooms: Remember

Difficulty: Easy

Topic: 15-03 Advertising Objectives

11 Finkrola Appliances Corp manufactures and markets home appliances The firm decides

to market vacuum cleaners in a region where the product category for such products is absent.Before the product launch, Finkrola uses advertisements that are mainly intended to create awareness about the product and the company Identify the type of advertising that was most likely used by Finkrola Appliances Corp in this scenario

The advertisement type used by Finkrola Appliances Corp was that of informative

advertising Informative advertising communicates to create and build brand awareness, with the ultimate goal of moving the consumer through the buying cycle to a purchase

Blooms: Apply

Difficulty: Difficult

12 Which of the following types of advertising do firms use to motivate consumers to take action when a product has gained a certain level of brand awareness?

When a product has gained a certain level of brand awareness, firms use persuasive

advertising to motivate consumers to take action Firms often use persuasive advertising to

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Blooms: Remember

Difficulty: Easy

13 Charles Associates Inc uses mass media advertising to communicate its festival products and to urge customers to buy the products during the festival season It advertises after generating enough awareness about its products and the various schemes associated with them Which of the following types of advertising does Charles Associates Inc use?

Charles Associates Inc uses persuasive advertising When a product has gained a certain level

of brand awareness, firms use persuasive advertising to motivate consumers to take action Firms often use persuasive advertising to convince consumers to take action: switch brands, try a new product, or even continue to buy the advertised product

Blooms: Apply

14 Which of the following types of advertising is used to prompt repurchases, especially for products that have gained market acceptance and are mostly in the maturity stage of their life cycle?

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Blooms: Remember

Difficulty: Easy

15 Riders Corp is an electric scooter brand in the country of Cambria The brand has been growing at a high rate for many years However, the brand's sales growth has declined in the current financial year Riders Corp decides to use mass advertising to attract customers to its brand again In this scenario, which of the following types of advertising would best serve Riders Corp.'s purpose?

16 Which of the following types of advertisements is used to inform, persuade, or remind consumers about a specific good or service?

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Blooms: Remember

Difficulty: Easy

17 WellnessCare Inc is a large manufacturer of consumer products The company owns morethan 120 brands, and its business is stretched over 16 countries However, most of

WellnessCare's advertisements promote specific brands rather than the company itself What are such advertisements called?

A Product-focused advertisements

These advertisements by WellnessCare Inc are called product-focused advertisements Product-focused advertisements are used to inform, persuade, or remind consumers about a specific product or service

Blooms: Apply

18 Which of the following is a reason for a company to choose product-focused

advertisements over other types of advertisements?

D Reminding consumers about a specific product

Product-focused advertisements are used to inform, persuade, or remind consumers about a specific product or service

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19 Which of the following types of advertisements is used to inform, persuade, and remind consumers about issues related to places, politics, an industry, or a particular corporation?

20 Manorek Inc is a leading media company in the country of Lucidia It is a reputed brand and is considered to be a trusted source of information by Lucidians The company plans to enter another continent and wants to build the same kind of reputation in these markets Manorek Inc advertises to familiarize these new customers with the company and its

reputation in Lucidia What type of advertising would serve this purpose?

D Institutional advertising

Institutional advertising would serve this purpose of Manorek Inc The focus of institutional advertisements is to inform, persuade, and remind consumers about issues related to places, politics, an industry, or a particular corporation

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Blooms: Apply

21 The country of Devenopolis uses mass media advertisements to promote its tourist places, educational institutions, and industrial corporations in other countries Devenopolis uses _ advertising

22 Which of the following is an example of an institutional advertisement?

C An advertisement that promotes a company's goodwill

An advertisement that promotes a company's goodwill is an example of institutional

advertising The focus of institutional advertisements is to inform, persuade, and remind consumers about issues related to places, politics, an industry, or a particular corporation

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23 The Slivereen Charity is a charitable organization working for the welfare of people in underdeveloped countries The firm uses mass media advertisements in developed countries togenerate funds for their initiatives in the underdeveloped countries These advertisements are best categorized as:

The advertisements done by The Silvereen Charity are an example of public service

announcements (PSA) A special class of demand advertising is the public service

announcement, which focuses on public welfare and generally is sponsored by nonprofit institutions, civic groups, religious organizations, trade associations, or political groups

Blooms: Apply

24 An organization decides to launch a social marketing program Which of the following is most likely to be the objective of this program?

C Applying marketing principles to social issues

Public service announcements (PSAs) represent a form of social marketing, which is the application of marketing principles to a social issue to bring about attitudinal and behavioural

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Difficulty: Easy

25 Advertisements that focus on public welfare and are generally sponsored by nonprofit institutions, civic groups, religious organizations, trade associations, or political groups can bebest categorized as:

A public service announcements.

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Blooms: Remember

Difficulty: Easy

26 Which of the following terms can be most accurately defined as the application of

marketing principles to a public issue to bring about attitudinal and behavioural change among the general public or a specific population segment?

announcement is a special class of demand advertising, which focuses on public welfare and generally is sponsored by nonprofit institutions, civic groups, religious organizations, trade associations, or political groups

Blooms: Remember

Difficulty: Easy

27 A company decides to market its products by featuring them in a reality television show The celebrities in the show sometimes use the products, which in turn promotes the products Which of the following advertisement techniques has the company used?

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28 Which of the following refers to the inclusion of a product in nontraditional situations, such as in a scene in a movie or TV program?

When marketers use product placement, they include their product in nontraditional

situations, such as in a scene in a movie or TV program

Blooms: Remember

Difficulty: Easy

29 Change Your Attitude is a reality television show in which participants from varying

cultural backgrounds share a house Marketers advertise in the show by letting the participantsuse their products and also by displaying products in the common areas of the house This promotional strategy is an example of a:

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Blooms: Apply

30 Which of the following generally enforces federal laws that ensure businesses in Canada operate in a fair and equitable manner?

D Canada's Competition Bureau

The Competition Bureau enforces the Competition Act (1986), the most comprehensive legislation affecting the marketing activities of companies in Canada This act enforces federal laws that ensure businesses in Canada operate in a fair and equitable manner

Blooms: Remember

Difficulty: Easy

Learning Objective: 15-02 Summarize the regulatory and ethical issues of concern to advertisers.

Topic: 15-04 Regulatory and Ethical Issues in Advertising

31 Canada's Competition Bureau enforces laws relating to:

A misleading advertising and deceptive marketing practices.

The Competition Bureau enforces the Competition Act (1986), the most comprehensive legislation affecting the marketing activities of companies in Canada The Competition Act maintains and encourages competition while protecting consumers from misleading and deceptive advertising practices

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Blooms: Remember

Difficulty: Easy

32 Which of the following is a legislation that establishes the standards and requirements for the safety and sanitation of products?

D Health Canada Food and Drug Act

Health Canada Food and Drug Act (1954) establishes standards and requirements for the safety and sanitation of products It also regulates the labelling of food products pertaining to nutrition labelling, nutrient content, and health claims

Blooms: Remember

Difficulty: Easy

33 Feedz Inc is a leading manufacturer of edible plants and processed items Robert, a retail shop owner, identifies that the nutrition labels of the company's products are inaccurate and incomplete Which of the following is a law that would be most helpful to Robert for suing Feedz Inc with regard to public welfare?

D Health Canada Food and Drug Act

The Health Canada Food and Drug Act would be most helpful to Robert for suing Feedz Inc for inaccurate and incomplete labelling The Health Canada Food and Drug Act (1954) establishes the standards and requirements for the safety and sanitation of products It also regulates the labelling of food products pertaining to nutrition labelling, nutrient content, and health claims

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Blooms: Apply

34 Which of the following terms can be best defined as the legal exaggeration of praise, stopping just short of deception, lavished on a product?

Blooms: Remember

Difficulty: Easy

35 Manikola Inc is a beverage company It uses humour in most of its advertisements in order to appeal its customers One of these funny advertisements showed that an elderly person lives for 250 years after consuming a health drink manufactured by Manikola Inc This

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Blooms: Apply

36 Which of the following protects messages with no promotional or selling intent?

B Charter of Rights and Freedoms

37 Which of the following statements is true about the regulatory and ethical issues in

advertising?

advertising claims

self-regulatory requirements

D The Consumer Packaging and Labelling Act requires all prepackaged products to bear the

quantity in metric and imperial for weight, volume, or measures

cancer, osteoporosis, and high blood pressure, have been used for many years in Canada

The Consumer Packaging and Labelling Act requires manufacturers, packers, and distributors

to disclose full information about their products All prepackaged products must be labelled inboth French and English and bear the quantity in metric and imperial for weight, volume, or measures

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38 Which of the following primarily requires manufacturers and distributors to disclose full information about their products?

B Consumer Packaging and Labelling Act

The Consumer Packaging and Labelling Act requires manufacturers, packers, and distributors

to disclose full information about their products

Blooms: Remember

Difficulty: Easy

39 Which of the following statements is true about puffery?

D It is considered as deception in the European Union.

One difference between advertising regulations in Canada and the European Union pertains topuffery, the legal exaggeration of praise, stopping just short of deception, lavished on a product In the European Union, puffery is considered deception

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40 Which of the following is a disadvantage of deals as a sales promotion tool?

C It may reduce perception of value.

Deals encourage trial because they lower the risk for consumers by reducing the cost of a good But deals can also alter perceptions of value—a short-term price reduction may signal adifferent price/quality relationship than would be ideal from the manufacturer's perspective

Difficulty: Easy

Learning Objective: 15-03 Explain how sales promotions supplement a firm's IMC strategy.

Topic: 15-05 Sales Promotion

41 Which of the following consumer sales promotion tools offers a discount on the price of specific items when they are purchased?

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Blooms: Remember

Difficulty: Easy

Topic: 15-06 Consumer Sales Promotion

42 A retailer decides to use POP (point-of-purchase) displays to promote one of its products Which of the following is most likely to be the objective of this initiative?

C Increasing brand trial

Increasing brand trial is a key objective of point-of-purchase (POP) displays A POP display is

a merchandise display located at the point of purchase, such as at the checkout counter in a grocery store

43 All of the following is correct about POP displays EXCEPT:

D Increase perception of value

POP displays objective is to increase brand trial Advantages: provide high visibility and store support Disadvantages: the difficulty to get a good location in the store and costs (see Exhibit 15.3)

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in-Accessibility: Keyboard Navigation

44 A type of short-term price reduction, such as a featured price, can be best categorized as a:

or a percentage "more free" offer contained in larger packaging

Blooms: Remember

Difficulty: Easy

45 Which of the following terms can be best defined as an item offered for free or at a

bargain price to reward some type of behaviour, such as buying, sampling, or testing?

A premium offers an item for free or at a bargain price to reward some type of behaviour, such

as buying, sampling, or testing These rewards build goodwill among consumers, who often perceive high value in them

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Blooms: Remember

Difficulty: Easy

46 Bakes is a leading biscuit brand The brand is marketed by Feast Foods The company's major target market is children younger than 15 years of age To have consumers associate more value with its products, the company includes small plastic toys in the biscuit packages This promotional technique is an example of a:

Blooms: Apply

47 Which of the following refers to a brand-sponsored competition that requires some form

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Blooms: Remember

Difficulty: Easy

48 Rhomus Inc is a Canadian entertainment company that produces and markets television programs To generate customer interest for a new program that it is planning to launch, Rhomus invites entries from its target customers through mass media to send in creative names for the TV program The firm announces that it will provide a monetary reward for the name that gets selected This is an example of a:

Blooms: Apply

49 Sweepstakes can be most accurately defined as a form of sales promotion that offers:

D prizes based on a chance drawing of entrants' names.

A form of sales promotion that offers prizes based on a chance drawing of entrants' names, sweepstakes do not require the entrant to complete a task other than buy a ticket or fill out a form Often the key benefit of sweepstakes is that they encourage current consumers to consume more if the sweepstakes form appears inside the packaging or with the product

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Blooms: Remember

Difficulty: Easy

50 Which of the following is a key difference between sweepstakes and contests?

E Sweepstakes winners are determined by a random draw.

A form of sales promotion that offers prizes based on a chance drawing of entrants' names, sweepstakes do not require the entrant to complete a task other than buy a ticket or fill out a form Unlike contests, sweepstakes winners are determined by a random draw

51 Which of the following offers potential customers the opportunity to try a product or service before they make a buying decision?

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Blooms: Remember

Difficulty: Easy

52 Beautify Inc is a firm that offers cosmetics and beauty products The company introduces

a new type of wet facial tissue paper To familiarize target consumers with the product,

Beautify Inc offers the product for free with the company's other offerings Such an offering

Blooms: Apply

53 Which of the following are specifically designed to retain customers by offering premiums

or other incentives to customers that make multiple purchases over time?

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Blooms: Remember

Difficulty: Easy

54 Shopper Corporation gives membership cards to customers that can be used to earn value points every time they shop at a Shopper outlet This membership card allows its customers tomake multiple purchases over time The membership card is an example of a:

customers by offering premiums or other incentives to customers that make multiple

purchases over time

Blooms: Apply

55 The famous Tim Hortons "roll up the rim" event is an example of:

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Blooms: Apply

56 Treats Corp., a company that markets packaged and processed foods, introduces a new flavour of microwave popcorn To promote customer trials of the product, Treats Corp exhibits the product near the checkout counters in many retail outlets This strategy is an example of a:

as at the checkout counter in a grocery store

Blooms: Apply

57 Which of the following is a merchandise presentation typically placed at a store's

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Blooms: Remember

Difficulty: Easy

58 A particular type of price reduction in which a portion of the purchase price is returned by the seller to the buyer is referred to as a:

Blooms: Remember

Difficulty: Easy

59 Which of the following is a disadvantage of using samples as a consumer sales promotion tool?

B They incur high cost to a firm.

One of the disadvantages of using samples as a consumer sales promotion tool is that they incur high cost to the firm Sampling offers potential customers the opportunity to try a product or service before they make a buying decision

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60 Which of the following is a feature of POP (point-of-purchase) displays?

C They provide in-store support.

One of the disadvantages of POP (point-of-purchase) displays is it is difficult to get a good location in the store A point-of-purchase (POP) display is a merchandise display located at the point of purchase, such as at the checkout counter in a grocery store Marketers spend almost as much on POP materials as they do on consumer magazine advertising, but the key

to a successful POP is to make the display "pop out" in a crowded store

61 Which of the following statements is true of coupons?

D They allow for direct tracing of sales.

Coupons allow for direct tracing of sales A coupon offers a discount on the price of specific items when they are purchased Coupons are issued by manufacturers and retailers in

newspapers, magazines, and free-standing inserts, on products, on shelves, at the cash register,over the Internet, and by mail

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62 Tuff Textiles Inc is a leading apparel manufacturer To increase the demand for its

products, the company advertises that it would reward its customers with a 5 percent discount

in exchange for purchase receipts from its company This scheme by Tuff Textiles Inc is an example of a:

This scheme by Tuff Textiles Inc is an example of a rebate Rebates refer to a particular type

of price reduction in which a portion of the purchase price is returned by the seller to the buyer

Blooms: Apply

63 Discounts and allowances are effective incentives used primarily to:

A maintain or increase inventory levels in the distribution channel.

Discounts and allowances are effective incentives used to maintain or increase inventory levels in the distribution channel Manufacturers sometimes offer a case allowance, for example, a discount or dollar amount taken off each case ordered during a specific time period

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Topic: 15-07 Trade Channel Sales Promotions

64 Which of the following is an example of a trade channel sales promotion?

B Co-operative advertising

Trade channel promotions help convince retailers and wholesalers to stock a new brand, give

it eye-level shelf space, and promote it in their flyers and other advertisements Many types ofconsumer sales promotions can be used for channel members, including discounts and

allowances, co-operative advertising, and sales force training

Blooms: Remember

Difficulty: Easy

65 To evaluate a trade promotion, retailers consider all the following EXCEPT:

B Short-term impact on sales of the promotion

Retailers should consider "long-term" impact on sales of the promotion

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66 Two local newspapers join to introduce a national arts magazine called "Across

Veniopolis." Experts from both the firms contribute to the magazine, and the firms bear the costs equally The sales promotion tool used is an example of:

Blooms: Apply

Topic: 15-08 Using Sales Promotion Tools

67 Which of the following terms can be best defined as the efforts of two or more firms joining together to reach a specific target market?

Many firms are realizing the value of cross-promoting, when two or more firms join together

to reach a specific target market To achieve a successful cross-promotion, the two products must appeal to the same target market and together create value for consumers

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