M Advertising 3rd Edition by William Arens - Test Bank

M Advertising 3rd Edition By William Arens – Test
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M Advertising 3rd Edition By William Arens – Test Bank

Sample Questions
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Chapter 03
Test Bank
1. Advertisers and advertising agencies rely on suppliers to provide creative content for ads.
TRUE
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 03-01 List the various groups in the advertising business and explain their relationships.
Topic: Participants in Advertising
Feedback: Suppliers are the people and organizations that assist both advertisers and agencies in the
preparation of advertising materials, such as photography, illustration, printing, and production. Media serve as
communications vehicles to present ads.
2. Local advertising is sometimes called cooperative advertising.

FALSE
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 03-02 Discuss the differences between local, national, and transnational advertisers.
Topic: Local, National, and Transnational Advertisers
Feedback: Local advertising is sometimes called retail advertising because so much is placed by retail stores.
3. Institutional advertising is primarily used to locate and recruit new employees.

FALSE
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Feedback: Institutional advertising is used to create a favorable long-term perception of a business. Classified
ads are used to fill job positions.
4. One of the primary purposes of co-op advertising is to build the manufacturer’s brand image.
TRUE
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Feedback: Cooperative (co-op) advertising has two key purposes: to build the manufacturer’s brand image and
to help distributors, dealers, or retailers increase sales.
5. The basic principles of advertising are the same for both local and national advertising.
TRUE
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Feedback: The basic principles of advertising are the same in both local and national advertising.
6. One of the primary differences between national and local advertisers is that national advertisers plan
strategically and local advertisers think tactically.
TRUE
AACSB: Analytic
Blooms: Understand
Feedback: National advertisers plan strategically to launch, build, and sustain brands. Local advertisers think
tactically.
7. A centralized advertising strategy relies on creating separate ad departments based on divisions,

subsidiaries, regions, brands, or other categories.
FALSE
AACSB: Analytic
Blooms: Understand
Learning Objective: 03-03 Explain how advertisers organize themselves to manage their advertising both here
and abroad.
Topic: How Companies Organize for Advertising
Feedback: Centralized advertised departments may be organized in any of five ways: by product or brand, by
sub-function of advertising (copy, art, print production, media buying), by end user (consumer advertising,
trade advertising), by media (radio, TV, Web, outdoor), and by geography (western advertising, eastern
advertising, international advertising).
8. In a decentralized advertising system, the company sets up separate ad departments for different
divisions, subsidiaries, regions, brands, or other categories that suit the company’s needs.
TRUE
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
and abroad.
Feedback: In a decentralized system, the company sets up separate ad departments for different divisions,
subsidiaries, regions, brands, or other categories that suit the company’s needs.
9. Global marketers are multinational companies that create a standardized approach to marketing their
brand in many countries.
TRUE
AACSB: Analytic
Blooms: Understand
and abroad.
Feedback: Multinational companies that use a standardized approach to marketing and advertising in all
countries are considered global marketers.
10. International media that serve several countries are limited to newspapers and magazines.
FALSE
AACSB: Analytic
Blooms: Understand
and abroad.
Feedback: In addition to newspapers and magazines, television is a viable international medium. For example,
CNN and MTV are found in many parts of the world.
11. Advertising agencies work for the media.

FALSE
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 03-04 Define the main types of advertising agencies.
Topic: The Role of Advertising Agencies
Feedback: Agencies don’t work for the media or the suppliers. Their moral, ethical, financial, and legal
obligation is to their clients. Agencies are morally obligated to work for the best interest of their clients.
12. Some of the nonadvertising services performed by full-service agencies are performing research,
selecting media, designing packages, and producing sales promotions.
FALSE
AACSB: Analytic
Blooms: Understand
Feedback: Full-service advertising agencies are equipped to serve clients in all areas of communication and
promotion. The services of such agencies include planning, creating, and producing advertisements as well as
performing research and media selection services. Non-advertising functions include producing sales
promotion materials, publicity articles, annual reports, trade show exhibits, and sales training materials.
13. Creative boutiques work for advertisers and occasionally subcontract to ad agencies.
TRUE
AACSB: Analytic
Blooms: Understand
Feedback: Some talented artists—such as graphic designers and copywriters—have set up their own creative
services, or creative boutiques. They work for advertisers and occasionally subcontract to ad agencies.
14. The account planner defends the consumer’s point of view and the creative strategy in the debate
between the agency’s creative team and the client.
TRUE
AACSB: Analytic
Blooms: Understand
Learning Objective: 03-05 Describe the range of tasks people perform in an ad agency and an in-house
advertising department.
Topic: The Role of Account Planners and Specialized Marketing Communication Organizations
Feedback: The account planner bridges the gap between account management and creative. The account
planner defends the consumer’s point of view and the creative strategy in the debate between the agency’s
creative team and the client.
15. Effective advertising copy should contain all the information intended to be communicated in a few
pertinent, succinct points.
TRUE
AACSB: Communication
Blooms: Understand
Difficulty: 1 Easy
Topic: The Role of the Creative Department
Feedback: Most ads rely heavily on copy, the words that make up the headline and message. The people who
create these words, copywriters, must condense all that can be said about a product into a few pertinent,
succinct points.
16. The traffic department coordinates all phases of production and makes sure everything is completed
before deadlines.
TRUE
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Feedback: The agency traffic department coordinates all phases of production and makes sure everything is
completed and approved before client and/or media deadlines. Traffic is often the first stop for entry-level
college graduates and an excellent place to learn about agency operations.
17. Local newspapers typically charge all advertisers the same commission—no matter what the size of
the company.
FALSE
AACSB: Analytic
Blooms: Understand
Learning Objective: 03-06 Relate how agencies get new clients and how they make money.
Feedback: Some media—local newspapers, for example—allow a commission on the higher rates they charge
national advertisers but not on the lower rates they charge local advertisers.
18. The incentive system is also called the retainer method.

FALSE
AACSB: Analytic
Blooms: Understand
Topic: Compensating Advertising Agencies
Feedback: The retainer method is also called the straight-fee method. In the straight-fee or retainer method,
agencies charge for all their services, either by the hour or by the month, and return any media commissions
earned to the client.
19. Most agencies prefer giving a speculative presentation to potential clients than highlighting past
accomplishments because speculative presentations are quick and inexpensive.
FALSE
AACSB: Analytic
Blooms: Understand
Feedback: A speculative presentation allows an advertiser to see what the agency can do for it before signing
any contractual agreement, but they require significant effort. Most agencies prefer building presentations
around the work they’ve already done.
20. Dissatisfaction with agency conduct is the most commonly cited reason for agency switches.
TRUE
AACSB: Analytic
Blooms: Understand
Feedback: Dissatisfaction with agency conduct, or performance, is the most commonly cited reason for agency
switches in every country.
21. Advertising professionals argue that local advertisers have an advantage in social media over national
advertisers because they can use local events like weather changes and festivals to inform customers of
their products.
TRUE
AACSB: Technology
Blooms: Understand
and abroad.
Feedback: Joe Morsello, a communications manager at a local business trade association, argues that local
advertisers have an advantage over national advertisers in social media because they share a community with
their customers. When things happen locally (bad weather, a town festival, a breaking news story), local
advertisers can target customers about these shared events.
22. Ford, GE, and McDonald’s are global advertisers that use a standardized approach to marketing and
advertising in all countries.
TRUE
AACSB: Diversity
Blooms: Understand
and abroad.
Feedback: Multinationals that use a standardized approach to marketing and advertising in all countries are
considered global marketers, and they create global brands. Their assumption is that the way the product is
used and the needs it satisfies are universal. McDonald’s, Coca-Cola, Ford, Apple, GE, and L’Oréal are global
advertisers.
23. An advertising agency that earns more money if an ad campaign attains specific, agreed-upon goals is
most likely being compensated through an incentive system.
TRUE
AACSB: Analytic
Blooms: Understand
Feedback: With a new type of agency compensation, the incentive system (sometimes called pay-for-
performance), the agency earns more if the campaign attains specific, agreed-upon goals.
24. In-house advertising agencies typically attract the best creative people, who prefer the stability of such
settings and the lack of internal politics and managerial criticism.
FALSE
AACSB: Analytic
Blooms: Understand
Feedback: In-house agencies have difficulty attracting and keeping the best creative people, who tend to prefer
the variety and challenges offered by independent agencies.
25. Many small and lesser-known agencies solicit new business by making cold calls, writing letters, and
participating in advertising competitions.
TRUE
AACSB: Analytic
Blooms: Understand
Feedback: Lesser-known agencies may solicit new business by advertising, writing letters, making cold calls,
or following up leads from sources in the business. Many agencies submit their best ads to competitions
around the world to win awards and gain publicity and professional respect for their creative excellence.
26. Advertising is organized around four distinct groups. Which group includes the photographers, the
illustrators, video production houses, and digital service bureaus?
27. encoders
28. clients
29. agencies
30. D. suppliers
31. creators
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Feedback: Suppliers include the photographers, illustrators, printers, digital service bureaus, video production
houses, Web developers, and others who assist advertisers and agencies in preparing advertising materials.
Suppliers also include consultants, research firms, and professional services.
27. In advertising, what are television, radio, newspapers, magazines, billboards, direct mail, coffee mugs,
and digital entertainment, commonly described as?
28. clients
29. B. media
30. suppliers
31. creative boutiques
32. communication networks
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Feedback: The media sell time (on radio and TV), and space (in print, outdoor), or both (digital media) for
delivering the advertiser’s message to the target audience.
28. When Evie Poitevant, owner of a boutique shoe store, tweets about her stylish rain boots during a
rainstorm at a neighborhood jazz festival, it is an example of _____ advertising.
29. A. local
30. institutional
31. interactive
32. interregional
33. dealer
AACSB: Reflective Thinking
Blooms: Apply
Feedback: Local advertising is done by local businesses targeting customers in their geographic area. This is
exactly what Evie Poitevent did when rain threatened to spoil a jazz festival in New Orleans. The boutique
shoe store owner tweeted about her stylish rain boots and quickly sold out her inventory.
29. Which of the following statements about local advertising is most likely true?
30. Retail advertising is always local.
31. There are only two categories of local advertisers.
32. Local advertising refers to advertising done by stores like PetSmart and Target.
33. D. Local advertising is critical because most consumer sales are made or lost locally.
34. Ninety percent of the money advertisers spend each year is spent on local advertising.
AACSB: Analytic
Blooms: Understand
Difficulty: 3 Hard
Feedback: Local advertising is critically important because most consumer sales are made (or lost) locally.
Both local and national stores use local advertising. There are four main types of local advertisers.
30. Which of the following is an example of product advertising?

31. A. an ad on Facebook advertising a two-for-one sale on fish tacos at Ralph Rubio’s Mexican
restaurant
32. a video on Youtube explaining British Petroleum’s efforts to help habitat in the Gulf of Mexico
33. an ad sponsored by Avon promoting breast cancer prevention
34. a classified ad to recruit new employees
35. a television ad about the Ronald McDonald House’s efforts to help the families of sick children
Blooms: Apply
Feedback: Product advertising promotes a specific product or service and stimulates short-term action while
building awareness of the business. To stimulate sales of merchandise or increase store traffic, local merchants
frequently use sale advertising, placing items on sale and offering two-for-one specials or other deals.
31. A(n) _____ performs all the administrative, planning, budgeting, and coordinating functions at a
small, local business.
32. account executive
33. copywriter
34. traffic manager
35. D. advertising manager
36. creative director
Blooms: Understand
Feedback: A small, local business—say, a hardware, clothing, or electronics store—may have just one person
in charge of advertising. That person, the advertising manager, performs all the administrative, planning,
budgeting, and coordinating functions. He or she may design ads, write copy, and engage customers in social
media.
32. _____ advertising attempts to create a favorable long-term perception of the business as a whole, not
just of a particular good or service.
33. A. Institutional
34. Interactive
35. Organizational
36. Product
37. Relationship
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Feedback: Institutional advertising attempts to create a favorable long-term perception of the business as a
whole, not just of a particular product or service. Many businesses use institutional advertising to promote an
idea about the company and build long-term goodwill.
33. Which of the following is an example of integrated marketing communications?

34. a coupon in a local newspaper offering two-for-one printer cartridges at Office Depot
35. an ad for American Express offering bonus air miles for purchases at restaurants, hotels, and car rental
agencies
36. a television ad for Toyota describing the company’s work to improve safety standards after a recent
recall for brake failures
37. an ad announcing GE appliances on sale for the holidays with free lifetime warranties available only
at Best Buy for a limited time
38. E. a series of ads on Facebook, in mailings, and on television from Ralph Rubio’s Mexican Restaurant
describing the excellent service
Blooms: Apply
Topic: Key Concepts of Integrated Marketing Communications
Feedback: When Ralph Rubio built his restaurant business, his promotional activities involved a lot more than
just running ads. In fact, he did everything he could to build relationships with his customers and to promote
word of mouth. That meant using publicity, sales promotion, and direct response as well as media advertising
—all integrated with consistently good food, reasonable prices, and excellent service. This combination
constitutes integrated marketing communications (IMC)—joining together in a consistent manner every
element that communicates with customers including the actual delivery of the product or service.
34. Advertisers use _____ advertising in the newspaper to locate and recruit new employees, to offer
services, or to sell or lease new and used merchandise.
35. A. classified
36. product
37. generic
38. relationship
39. media
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Feedback: Advertisers use classified advertising for a variety of reasons including to locate and recruit new
employees, offer services (such as those of an employment agency or business opportunity broker), or sell or
lease new and used merchandise (such as cars, real estate, and office equipment).
35. Which of the following is a function of cooperative advertising?

36. utilizing social media marketing
37. ensuring that franchisees advertise
38. C. building the manufacturer’s brand image
39. lowering the manufacturer’s variable costs
40. reducing dependence on institutional advertising
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Feedback: Cooperative (co-op) advertising has two key purposes: to build the manufacturer’s brand image and
to help distributors, dealers, or retailers increase sales.
36. Hudson Pool and Spa, owned by Jill and Joel Hudson, sells and installs above-ground swimming
pools and Beachcomber brand hot tubs. The manufacturer of the Beachcomber hot tub has sent the
Hudsons a letter in which it offers to pay 50 percent of the advertising cost if the Hudsons will run a
newspaper ad featuring the Beachcomber hot tubs. What type of advertising is the Beachcomber
manufacturer suggesting they use?
37. A. cooperative advertising
38. horizontal advertising
39. vertical advertising
40. a franchise promotion
41. a strategic promotion
Blooms: Apply
Feedback: The costs are shared in cooperative advertising by the manufacturer and the retailer.
37. Southern California Honda Dealers is a franchise group that coordinates more than 50 Honda Dealers
in Southern California. It advertises only in those areas where it has stores. The form of advertising that
best describes Southern California Honda Dealers’ approach to advertising is
38. institutional.
39. adjacency.
40. C.
41. national.
42. local.
Blooms: Apply
Feedback: Some companies operate in one part of the country—in one or several states—and market
exclusively within that region. These are referred to as regional advertisers.
38. National companies focus on building their _____, while local advertisers focus on attracting
customers to a location.
39. autonomy
40. ad penetration
41. C. brands
42. volume
43. tactics
AACSB: Analytic
Blooms: Understand
Feedback: National companies are concerned about building their brands, so their advertising tends to focus on
the competitive features of one brand over another. Local merchants or dealers often carry hundreds of
different brands, so they focus on attracting customers to a particular location—their place of business.
39. Evie Poitevent operates a boutique store that specializes in footwear. She faces many promotional and
advertising decisions on a daily basis, such as what kind of a sale she should conduct after Christmas, for
how many days the sale should be held, and what kind of items should be placed on sale. Poitevent’s
advertising focus is on _____ because of its short-term nature.
40. strategy
41. B. tactics
42. narrowcasting
43. broadcasting
44. relationships
Blooms: Apply
Feedback: Local advertisers typically take a tactical approach to planning, while large firms focus on strategies
to launch, build, and sustain brands.
40. Toys ‘R’ Us has divided its advertising department into two sections: Toys ‘R’ Us United States and
Toys ‘R’ Us International. Toys ‘R’ Us International is further divided into individual overseas locations
including Italy, Germany, France, Hong Kong, Singapore, and Canada. Given these facts, it would appear
that the Toys ‘R’ Us ad department is organized by
41. product.
42. brand.
43. end user.
44. media.
45. E.
Blooms: Apply
Difficulty: 3 Hard
and abroad.
Feedback: The advertising department may be organized in any of five ways: by product or brand, by sub-
function of advertising (copy, art, print production, media buying), by end user (consumer advertising, trade
advertising), by media (radio, TV, Web, outdoor), by geography (western advertising, eastern advertising,
international advertising).
41. Ericsson, an international telecommunications supplier, manufactures radio communication systems,

defense systems, components, and cable and network television systems. If a media representative wants to
sell ad space to the company, he or she must meet with representatives from each of the product lines.
Ericsson’s ad department is organized by
42. A.
43. service.
44. end user.
45. media.
46. geography.
Blooms: Apply
Difficulty: 3 Hard
and abroad.
Feedback: The advertising department may be organized in any of five ways: by product or brand, by sub-
function of advertising (copy, art, print production, media buying), by end user (consumer advertising, trade
advertising), by media (radio, TV, Web, outdoor), by geography (western advertising, eastern advertising,
international advertising). This is similar to the General Mills example in text.
42. A decentralized advertising system is first broken up by

43. product or brand.
44. subfunction of advertising.
45. C. separate departments.
46. end user.
47. medium.

AACSB: Analytic
Blooms: Understand
and abroad.
Feedback: In a decentralized system, the company sets up separate ad departments for different divisions,
subsidiaries, regions, brands, or other categories that suit the company’s needs. For large companies with many
divisions, decentralized advertising is more flexible.
43. In a decentralized system, the _____ of each division or brand is responsible for that group’s
advertising.
44. brand manager
45. creative manager
46. organizer
47. D. general manager
48. marketing manager
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
and abroad.
Feedback: The general manager of each division or brand is responsible for that group’s advertising. A brand
manager, who oversees each individual brand, typically works under a marketing manager. This system gives
significant authority to the individuals responsible for each brand.
44. Organizations that use a standardized approach to marketing and advertising in all countries in which
they do business are called
45. foreign marketers.
46. homogenized corporations.
47. C. global marketers.
48. international exporters.
49. transnational corporations.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
and abroad.
Feedback: Multinationals that use a standardized approach to marketing and advertising in all countries are
considered global marketers, and they create global brands.
45. An advertiser who uses international media most likely

46. A. uses the same ad in several countries.
47. relies on an in-house advertising group.
48. has a highly decentralized advertising department.
49. develops a different ad for the local media of each country.
50. typically produces its ads in the language of each country in which it advertises.
AACSB: Analytic
Blooms: Understand
and abroad.
Feedback: International media refer to media serving several countries. An advertiser would most likely use
the same ad campaign across national borders.
46. Procter & Gamble’s brands are advertised in more than 180 countries, with different ad themes in
scores of different languages. Overseas divisions are set up like separate companies, with their own
advertising departments to coordinate advertising across brands in that division. Procter & Gamble would
be a user of
47. viral marketing.
48. B. foreign media.
49. global advertising.
50. standardized advertising.
51. international media.
Blooms: Apply
and abroad.
Feedback: Advertisers use foreign media—the local media of each country—for large campaigns targeted to
consumers or businesses within a single country. Because foreign media cater to their own national audience,
advertisers must produce their ads in the language of each country.
47. As defined by the American Association of Advertising Agencies, the _____ is an independent
organization of creative people and business people that specialize in developing and preparing advertising
plans, advertising, and other promotional tools.
48. creative boutique
49. promotional facilitator
50. facilitating intermediary
51. D. advertising agency
52. advertising supplier
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Feedback: The American Association of Advertising Agencies (AAAA) defines an advertising agency as an
independent organization of creative people and business people who specialize in developing and preparing
marketing and advertising plans, advertisements, and other promotional tools.
48. What is the most likely advantage of using an independent advertising agency instead of an in-house
agency?
49. reduced overhead
50. organizational vision
51. distribution control
52. D. greater experience
53. lower commissions
AACSB: Analytic
Blooms: Understand
Feedback: Outside agencies typically offer greater experience, versatility, and a larger talent pool. Advertisers
with in-house agencies hope to save money by cutting overhead, keeping the media commission, and avoiding
markups on outside purchases.
49. The modern _____ advertising agency supplies both advertising and nonadvertising services in all
areas of communications and promotion for its clients.
50. entrepreneurial
51. institutional
52. organizational
53. D. full-service
54. multi-tasking
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Feedback: The modern full-service advertising agency supplies both advertising and non-advertising services
in all areas of communications and promotion.
50. Non-advertising services include

51. planning ads.
52. B. creating trade-show exhibits.
53. performing research.
54. selecting media.
55. creating ads.
AACSB: Analytic
Blooms: Understand
Feedback: Advertising services include planning, creating, and producing ads; performing research; and
selecting media. Non-advertising services run the gamut from packaging to public relations to producing sales
promotion materials, annual reports, and trade-show exhibits.
51. General consumer agencies

52. provide advertising primarily for trade publications.
53. concentrate on institutional advertising accounts.
54. C. represent the widest variety of accounts.
55. are not paid on a commission basis.
56. do not operate internationally.
AACSB: Analytic
Blooms: Understand
Feedback: A general consumer agency represents the widest variety of accounts, but it concentrates on
consumer accounts—companies that make goods purchased chiefly by consumers.
52. A manufacturer of _____ would be most likely to use a business-to-business agency.

53. greeting cards
54. B. X-ray machines
55. personal laptops
56. designer apparel
57. monogrammed towels
Blooms: Apply
Feedback: A business-to-business agency represents clients that market products to other businesses. Examples
are electronic components for computer manufacturers, equipment used in oil and gas refineries, and MRI
equipment or X-ray machines for radiology.
53. Flex Co. manufactures rivets used on heavily loaded conveyor belts which carry ore in underground
and surface mining operations. Flex would most likely hire a(n) _____ agency to create the company’s
advertising.
54. general consumer
55. intermediary
56. institutional
57. noncommissioned
58. E. business-to-business
Blooms: Apply
Feedback: A business-to-business agency represents clients that market products to other businesses. Examples
are electronic components for computer manufacturers, equipment used in oil and gas refineries, and MRI
equipment for radiology.
54. A(n) _____ is an organization of talented artists who work for advertisers and occasionally
subcontract to advertising agencies. Its mission is to develop exciting creative concepts and to produce
fresh, distinctive advertising messages.
55. promotional facilitator
56. interactive agency
57. entrepreneurial agency
58. D. creative boutique
59. IMC agency
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Feedback: Some talented artists—such as graphic designers and copywriters—have set up their own creative
services, or creative boutiques. They work for advertisers and occasionally subcontract to ad agencies. Their
mission is to develop exciting creative concepts and produce fresh, distinctive advertising messages.
55. Creative boutiques usually provide

56. A. original concepts.
57. research.
58. marketing.
59. sales expertise.
60. deep customer service.
Blooms: Apply
Feedback: Advertising effectiveness depends on originality in concept, design, and writing. However, while
boutiques may be economical, they usually don’t provide the research, marketing, sales expertise, or deep
customer service that full-service agencies offer. Thus, boutiques tend to be limited to the role of creative
suppliers.
56. Western International Inc. purchases unsold television and radio media and resells the time and space
to advertisers and agencies. Western International is most likely a(n)
57. entrepreneurial agency.
58. promotional facilitator.
59. creative boutique.
60. D. media-buying service.
61. promotional broker.
Blooms: Apply
Topic: Role of the Media Buyer
Feedback: A media-buying service is an organization such as Western International that specializes in
purchasing and packaging radio and television time.
57. Interactive agencies

58. use customer relationship marketing to work with customers.
59. create ads for nontraditional media like shopping carts.
60. C. design Web pages and ads for the Internet.
61. purchase media time and space in bulk.
62. facilitate refunds and rebate offers.
AACSB: Technology
Blooms: Understand
Difficulty: 1 Easy
Feedback: An interactive agency is an advertising agency that specializes in the creation of digital interactive
media such as Web pages, mobile apps, and social media campaigns.
58. Account executives are

59. brokers of advertising services to small firms.
60. B. the liaisons between the agency and the client.
61. typically employed by nonprofit organizations.
62. agents that handle multiple, noncompeting accounts.
63. the sole media buyers at most in-house advertising agencies.
AACSB: Analytic
Blooms: Understand
Feedback: Account executives (AEs) are the liaison between the agency and the client. The account executive
is responsible both for managing all the agency’s services for the benefit of the client and for representing the
agency’s point of view to the client.
59. Which of the following statements is most likely true about account planning?
60. It is a method used to benchmark competitors’ promotions.
61. B. It bridges the gap between management and creatives.
62. It rarely involves conducting consumer research.
63. It restructures an advertiser to improve its image.
64. It is a service provided by B2B creative boutiques.
AACSB: Analytic
Blooms: Understand
Feedback: Account planning is a hybrid discipline that uses research to bridge the gap between account
management and creatives. The account planner also defends the consumer’s point of view and the creative
strategy in the debate between the agency’s creative team and the client.
60. _____ must have the skill to condense all that can be said about a product into a few salient and
pertinent points.
61. Account directors
62. Advertising supervisors
63. C. Copywriters
64. Communication specialists
65. Advertising planners
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Feedback: Copywriters are people who create the words and concepts for ads and commercials. They must
condense all that can be said about a product into a few pertinent, succinct points.
61. An ad for Benetton shows a full-size photograph of a young woman wearing business casual clothing
and looking despondent. The caption says, “Unemployee of the Year.” Who is in charge of the photograph
portion of the ad, its framing, and the location and appearance of the language in the ad?
62. ad illustrator
63. advertising planner
64. media specialist
65. D. art director
66. communication specialist
Blooms: Apply
Feedback: The job of the art directors, graphic designers, and production artists is to determine how an ad’s
verbal and visual symbols will fit together. The art director deals with all of the nonverbal parts of the ad.
62. An ad agency’s traffic department

63. makes sure there is no unplanned replication of the advertising effort.
64. maintains the agency’s position as a facilitating intermediary.
65. develops the client’s channel of distribution.
66. D. coordinates all phases of ad production.
67. negotiates long-term media deals.
AACSB: Analytic
Blooms: Understand
Feedback: The agency traffic department coordinates all phases of production and makes sure everything is
completed and approved before client and/or media deadlines.
63. A large advertising agency that is divided into a number of “little” agencies is most likely structured
according to
64. industry.
65. B. the group system.
66. media availability.
67. the departmental system.
68. geographical location.
AACSB: Analytic
Blooms: Understand
Feedback: Medium and large agencies are usually structured in a departmental or group system. In the
departmental system, agencies are organized around various functions. In the group system, the agency is
divided into a number of “little” agencies or groups.
64. When the advertising agency of Lopez and White purchased several hours of television time for its
customers’ commercials from KLOX-TV, the agency received 15 percent of the gross amount charged by
the station. The 15 percent is known as a
65. spiff.
66. retainer.
67. markup.
68. slotting allowance.
69. E. media commission.
Blooms: Apply
Feedback: Media commission is compensation paid by a medium to recognized advertising agencies, usually
15 percent for advertising placed with it.
65. If Tomlinson Inc., an ad agency, were to buy an ad in Western Horseman magazine for the
manufacturer of Reins saddles, the ad would cost $3,000. How much money would the advertising agency
bill the saddle manufacturer?
66. $2,250
67. $2,850
68. C. $3,000
69. $3,150
70. $3,750
Blooms: Apply
Difficulty: 3 Hard
Feedback: The saddle manufacturer would pay the full price ($3,000) to the agency. The agency would then
subtract the commission before paying the magazine.
66. JWT Co., an ad agency, has designed a quarter-page magazine ad for Promise vegetable-oil spray. The
job required the services of a photographer to produce photographs of various foods that will “taste better
with Promise.” The invoice for the artwork from the photographer was for $200. If JWT uses the traditional
markup, how much did the advertising agency bill Promise vegetable-oil spray company?
67. $170
68. $200
69. $230
70. D. $235
71. $250
Blooms: Apply
Difficulty: 3 Hard
Feedback: Markup is a source of agency income gained by adding some amount to a supplier’s bill, usually
17.65 percent. To get the traditional agency commission of 15 percent, JWT would markup the $200 bill by
17.65 percent which comes to $235.
67. An agency that earns a _____ charges a basic monthly fee for all of its services to the client and
retains any media commissions earned.
68. retainer
69. salary-plus-commission
70. media markup
71. D. fee-commission combination
72. negotiated fee
AACSB: Analytic
Blooms: Understand
Feedback: There are two pricing methods in the fee system. With the fee-commission combination, the agency
charges a basic monthly fee for all its services to the client and retains any media commissions earned.
68. In advertising, a retainer is

69. A. the same as a straight fee.
70. a commission that is paid on a monthly rate.
71. a form of markup paid by nonprofit organizations.
72. the cost for reserving TV and radio time.
73. a commission paid to media-buying services.
AACSB: Analytic
Blooms: Understand
Feedback: In the straight-fee or retainer method, agencies charge for all their services, either by the hour or by
the month, and return any media commissions earned to the client.
69. The primary reason that some advertisers set up a wholly owned in-house ad agency is to
70. attract the best photographers and graphic artists.
71. B. save money and tighten control over their advertising.
72. stimulate external creative efforts on the part of the marketing staff.
73. meet the challenges of mass media with respect to creative incentives.
74. utilize inexpensive social media tools in their online advertising efforts.
AACSB: Analytic
Blooms: Understand
Feedback: Some companies set up a wholly owned in-house agency (or house agency) to save money and
tighten control over their advertising.
70. What is probably the greatest disadvantage associated with in-house ad agencies?
71. loss of revenues
72. adherence to the organizational mission
73. reluctant acknowledgement by the mass media
74. D. loss of objectivity
75. staff-line relationships
AACSB: Analytic
Blooms: Understand
Feedback: The biggest risk for in-house agencies may be a loss of objectivity. In the shadow of internal
politics, linear-thinking policymakers, and criticism from management, ads may become bland and self-
serving, rather than imaginative messages relevant to customers.
71. When an advertiser asks for speculative presentation, the ad agency is expected to
72. A. give a presentation of what the agency intends to do for the advertiser.
73. infer what the market is for a particular product based on experience with other clients.
74. show a portfolio of previous campaigns.
75. improvise a storyboard based on brainstorming during a meeting.
76. present three-dimensional advertising plan.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Feedback: Some advertisers ask for or imply that they want a speculative presentation, meaning they want to
see what the agency intends to do for them before they sign on.
72. Which is not a way ad agencies typically get new clients?

73. referrals and word of mouth
74. advertising, writing letters, and making cold calls
75. presentations
76. publicity from recent campaigns
77. E. research
AACSB: Analytic
Blooms: Understand
Feedback: To succeed, advertising agencies need clients. New clients come from personal contact with top
management, referrals from satisfied clients or advertising consultants, publicity on recent successful
campaigns, trade advertising, direct-mail solicitation, or an agency’s general reputation. The three most
successful ways to develop new business are having clients who strongly champion the agency, having
superior presentation skills, and cultivating a personal relationship with a network of top executives.
73. What is the most critical factor in the agency-client relationship?

74. the competitive relationship between the in-house and the outside agencies
75. the level and type of communication between the client and the agency
76. the ethical conduct and history of the advertising agency
77. the dynamic nature of the environment in which the client operates
78. E. the personal chemistry between the client’s employees and the agency’s staff
AACSB: Analytic
Blooms: Understand
Feedback: Many forces influence the agency-client relationship. Generally, they can be grouped into the four
Cs: chemistry, communication, conduct, and changes. The most critical factor is the personal chemistry
between the client and people in the agency.
74. The most commonly cited reason for changing agencies is

75. internal environmental changes.
76. poor communication.
77. the loss of subjectivity.
78. D. dissatisfaction with agency conduct.
79. a static competitive environment in the agency.
AACSB: Analytic
Blooms: Understand
Feedback: Dissatisfaction with agency conduct, or performance, is the most commonly cited reason for agency
switches in every country.
75. Which of the following are not considered to be suppliers?

76. A. ad distributors
77. art studios
78. Web design houses
79. printers
80. film and video production houses
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Feedback: The people and organizations that provide specialized services to the advertising business are called
suppliers. Without their services it would be impossible to produce the billions of dollars’ worth of advertising
placed every year. Important suppliers include art studios and Web design houses, printers, film and video
production houses, and research companies.
76. _____ supply agencies with artwork and illustrations for advertisements.
77. Ad intermediaries
78. B. Art studios
79. Art warehouses
80. Production houses
81. Art directors
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Feedback: Art studios design and produce artwork and illustrations for advertisements.
77. Which of the following creates online ads?

78. production houses
79. art houses
80. Internet boutiques
81. art agencies
82. E. Web design houses
AACSB: Technology
Blooms: Understand
Difficulty: 1 Easy
Feedback: Similar to art studios, Web design houses employ specialists who understand the intricacies of
Internet programming languages and can design ads and Web pages that are both effective and cost-efficient.
78. As few agencies have the capability to produce television ads in-house, most rely on independent
79. A. production houses.
80. ad intermediaries.
81. art agencies.
82. Internet boutiques.
83. art studios.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Feedback: Few agencies have in-house TV production capabilities. Small agencies often work with local TV
stations to produce commercials. But the large agencies normally work with independent production houses
that specialize in film or video production or both.
79. Research is closely allied to advertising and an important tool for marketing professionals. Most firms
do not maintain a fully staffed research department. Instead, they use independent
80. Web data agencies.
81. research production houses.
82. C. research suppliers.
83. research intermediaries.
84. data boutiques.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Feedback: Most firms do not maintain a fully staffed research department. Instead, they use independent
research suppliers or consultants.
80. Which of the following is a current trend in advertising?
81. an increased use of commissions by large advertisers
82. B. the growth of media options
83. a decline in the use of integrated marketing communications
84. an increase in the importance of traditional media
85. the decrease of audience empowerment
AACSB: Analytic
Blooms: Understand
Topic: Alternate Media Options
Feedback: Media options are exploding with technologies such as TV and video on demand, social media, the
Internet, games, smartphones, tablets, iPods, GPS systems, and so on. Even older technologies like radio and
television are experiencing rapid change (digital cable, Spotify, Pandora). These technologies present real
opportunities, but also significant challenges.
81. What are the four distinct groups that form the advertising business?
The four distinct groups in the advertising business are the advertisers (clients), advertising agencies, suppliers,
and the media.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
82. What are the two key purposes of cooperative (co-op) advertising?
Cooperative (co-op) advertising has two key purposes: to build the manufacturer’s brand image and to help
distributors, dealers, or retailers increase sales.
AACSB: Analytic
Blooms: Understand
83. What is an advertising agency?
The American Association of Advertising Agencies (AAAA) defines an advertising agency as an independent
organization of creative people and businesspeople who specialize in developing and preparing marketing and
advertising plans, advertisements, and other promotional tools. Agencies also purchase advertising space and
time in various media on behalf of different advertisers (clients) to find customers for their goods and services.
AACSB: Analytic
Blooms: Understand
84. What is the difference between international media and foreign media?
International media serve several countries, usually without change. Foreign media are the local media for each
individual country.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
and abroad.
85. On what three bases are advertising agencies normally classified?
Advertising agencies are typically classified by their geographic scope, the range of services they offer, and the
type of business they handle.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
86. How would you classify most full-service ad agencies?
Full-service agencies may specialize in certain kinds of clients. Most, though, can be classified as either
general consumer agencies or business-to-business agencies.
AACSB: Analytic
Blooms: Understand
87. What is the function of creative boutiques?
They work for advertisers and occasionally as subcontractors to advertising agencies, to develop exciting
creative concepts and to produce fresh, distinctive advertising messages.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
88. Define account planning.
Account planning is a hybrid discipline that bridges the gap between traditional research, account
management, and creative direction whereby agency people represent the view of the consumer in order to
better define and plan the client’s advertising program.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
89. What is the departmental system in an agency structure?
Medium and large agencies are usually structured in a departmental or group system. In the departmental
system, the agency organizes its various functions—account services, creative services, marketing services,
and administration—into separate departments.
AACSB: Analytic
Blooms: Understand
90. What are the two pricing methods used in a fee system?
There are two pricing methods in the fee system, the fee-commission combination and the straight-fee or
retainer method.
AACSB: Analytic
Blooms: Understand
91. Distinguish between suppliers and media.
Suppliers and media are two distinct groups of the advertising business. Suppliers are the people and
organizations that assist both advertisers and agencies in the preparation of advertising materials, such as
photography, illustration, printing, and production. The word media refers to communications vehicles paid to
present an advertisement to their target audience. It most often refers to radio and television networks, stations
that have news reporters, and publications that carry news and advertising.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
92. List with examples the four types of local advertisers targeting customers in their geographic area.
There are four main types of local advertisers:
 Dealers or local franchisees of national companies (Honda, McDonald’s, Mail Boxes Etc., H&R
Block)
 Stores that sell a variety of branded merchandise (convenience, grocery, and department stores)
 Specialty businesses and services (banks, restaurants, music stores, remodeling contractors, florists,
hair salons, attorneys, accountants)
 Governmental and nonprofit organizations (municipalities, utility companies, charities, arts
organizations, political candidates)
AACSB: Analytic
Blooms: Understand
93. Why is local advertising sometimes called retail advertising?
Local advertising is sometimes called retail advertising because so much of it is placed by retail stores, but
retail advertising is not always local. National retailers like JCPenney and Target also advertise locally. And
many businesses besides retail stores use local advertising: banks, movie theaters, auto mechanics, plumbers,
radio and TV stations, local politicians, and McDonald’s franchises, to name a few.
AACSB: Analytic
Blooms: Understand
94. Discuss the differences between local and national advertisers in terms of focus, time, and resources.
National advertisers plan strategically to launch, build, and sustain brands; they think long term. Local
advertisers think tactically and are very short-term oriented. National advertisers’ marketing executives rarely
see their customers, whereas local advertisers deal with individual customers every day. Finally, national
advertisers have more resources—both people and money, than local advertisers who have to know about
every facet of IMC.
AACSB: Analytic
Blooms: Understand
95. How can a large multidivisional company benefit from the use of a decentralized advertising
department?
Decentralization makes it easier to conform to the specific problems and needs of the division. It increases
flexibility and makes it easier to adjust to changes in ad campaigns and media schedules. It makes it easier to
introduce new, creative ideas. Decentralization allows the results of each division to be measured
independently of the others.
AACSB: Analytic
Blooms: Understand
and abroad.
96. Differentiate between a general consumer agency and a business-to-business agency.
Full-service agencies may specialize in certain kinds of clients. Most, though, can be classified as either
general consumer agencies or business-to-business agencies. General consumer agency is an agency that
represents the widest variety of accounts, but it concentrates on companies that make goods purchased chiefly
by consumers. Most of the ads are placed in consumer media that pay a commission to the agency. Business-
to-business agency represents clients that market products to other businesses. Most B2B advertising is placed
in trade magazines or other business publications.
AACSB: Analytic
Blooms: Understand
Difficulty: 3 Hard
97. Contrast the role of the account planner with those of the creative team and the account executives.
The account planner uses research to represent the consumer’s point of view in the debate between the
agency’s creative team and the client and encourages ads that are creative, interesting, relevant and on-target.
The creative team is made of copywriters, art directors, and a creative director. They produce creative content
and work with the account planner to translate their findings into imaginative, successful campaigns. Account
executives manage accounts and report to supervisors. Not attached to either account management or creative,
the account planner balances both elements to make sure the research is reflected in the ads. They study
consumers to know what they really think.
AACSB: Analytic
Blooms: Understand
Difficulty: 3 Hard
98. Why have many national advertisers moved from the commission system to fee-based systems?
Clients today expect agencies to solve problems rather than just place ads, so fees are becoming more
common. In fact, one study shows that only about one-third of national advertisers still rely on the traditional
15 percent commission system. An equal number now use some fee-based system. The rest use some modified
commission or incentive system.
AACSB: Analytic
Blooms: Understand
Difficulty: 3 Hard
99. What are the disadvantages of establishing an in-house ad agency?
While an in-house agency offers greater flexibility, it is often at the expense of creativity. Outside agencies
typically offer greater experience, versatility, and a larger talent pool. In-house agencies often find it very
difficult to attract and keep the best creative talent. There is also a loss of objectivity that an independent
agency normally brings to the client.
AACSB: Analytic
Blooms: Understand
Difficulty: 3 Hard
100. How do advertising agencies attract new clients?
New clients come from personal contact with top management, referrals from satisfied clients or advertising
consultants, publicity on recent successful campaigns, trade advertising, direct-mail solicitation, or an agency’s
general reputation. The three most successful ways to develop new business are having clients who strongly
champion the agency, having superior presentation skills, and cultivating a personal relationship with a
network of top executives.
AACSB: Analytic
Blooms: Understand
Category
# of Questions
AACSB:
Analytic
77
AACSB:
Communication
1
AACSB:
Diversity
1
AACSB: Reflective
Thinking
18
AACSB:
Technology
3
Accessibility: Keyboard
Navigation 80
Blooms:
Apply
17
Blooms:
Understand
83
Difficulty: 1
Easy
32
Difficulty: 2
Medium
59
Difficulty: 3
Hard
9
Learning Objective: 03-01 List the various groups in the advertising business and explain their
relationships. 5
Learning Objective: 03-02 Discuss the differences between local, national, and transnational
advertisers. 22
and abroad. 15
Learning Objective: 03-04 Define the main types of advertising

agencies. 18
advertising department. 12
Learning Objective: 03-06 Relate how agencies get new clients and how they make
money. 28
Topic: Alternate Media

Options 1
Topic: Compensating Advertising

Agencies 9
Topic: How Companies Organize for
Advertising 20
Topic: Key Concepts of Integrated Marketing

Communications 1
Topic: Local, National, and Transnational

Advertisers 25
Topic: Participants in
Advertising
17
Topic: Role of the Media

Buyer 1
Topic: The Role of Account Planners and Specialized Marketing Communication

Organizations 4
Topic: The Role of Advertising

Agencies 19
Topic: The Role of the Creative

Department 3
Chapter 05
Test Bank
1. The source for the Nissan Maxima ad in Fortune magazine is the copywriter and the art director who
created the ad.
FALSE
Blooms: Understand
Learning Objective: 05-01 Explain how advertising differs from the basic communication process.
Topic: Basic Elements of the Communication Process
Feedback: Source: Nissan is the source of the ad. The source of the marketing message is the organization, or
sponsor, that has information it wants to share.
2. When Jana uses a $10-off coupon to purchase an exercise mat, she is providing feedback.
TRUE
Blooms: Apply
Feedback: In advertising, feedback can take many forms: redeemed coupons, phone inquiries, visits to a store,
requests for more information, increased sales, responses to a survey, e-mail inquiries, or clicks on a banner ad.
3. The three nonpersonal influences that have direct impact on a consumer’s final purchase decision are
time, place, and target market.
FALSE
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Topic: Influences on Consumer Behavior
Feedback: The three nonpersonal influences that have direct impact on a consumer’s final purchase decision
are time, place, and environment.
4. There are a total of five personal processes that govern the way we discern raw data and translate them
into feelings, thoughts, beliefs, and actions.
FALSE
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 05-02 Outline the consumer perception process and explain why advertising people say
“perception is everything.”
Feedback: There are three personal processes—perception, learning and persuasion, and the motivation
processes.
5. The interpersonal influences affecting the mental processes and the behavior of the consumers are
time, place, and environment.
FALSE
AACSB: Analytic
Blooms: Understand
Learning Objective: 05-05 Discuss the various influences on consumer behavior.
Feedback: Our mental processes and behavior are affected by two sets of influences. Interpersonal influences
include our family, society, and culture. Nonpersonal influences—factors often outside the consumer’s control
—include time, place, and environment.
6. When Diego sees the red price tag on a snowboard at REI, he is responding to a stimulus.
TRUE
AACSB: Analytic
Blooms: Understand
Topic: How Consumers Process Marketing Communications
Feedback: A stimulus is any physical information we can perceive through our senses. When Diego sees the
red price tag, its color—a visual stimulus—alerts him that it might list a special price.
7. As Ross has a keen sense of smell and an extraordinary sense of taste, it can be said that his
physiological screens are superior to what most people have.
TRUE
Blooms: Apply
Feedback: Physiological screens are the perceptual screens that use the five senses—sight, hearing, touch,
taste, and smell—to detect incoming data and measure the dimension and intensity of the physical stimulus.
8. Perceptual screens refer to the images we carry in our minds of the type of person we are and who we
desire to be.
FALSE
AACSB: Analytic
Blooms: Understand
Topic: The Consumer Decision-Making Process
Feedback: Perceptual screens are the subconscious filters that messages must pass through. Before any data
can be perceived, they must first penetrate a set of perceptual screens, the subconscious filters that shield us
from unwanted messages. There are two types of screens, physiological and psychological. Self-concept refers
to the images we carry in our minds of the type of person we are and who we desire to be.
9. Information in our long-term memory is not stored randomly, but can be thought of as being kept in a
ranked system of mental files.
TRUE
AACSB: Analytic
Blooms: Understand
Topic: Approaches to Studying the Consumer Learning Process
Feedback: Information in long-term memory is not stored randomly, but rather in mental files. To cope with
the complexity of stimuli such as advertising, we rank products and other data in our files by importance, price,
quality, features, or a host of other descriptors. Memory is a limited resource, and one susceptible to some
well-known biases.
10. The cognitive theory of learning is also called the stimulus-response theory.
FALSE
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 05-03 Explain how product involvement influences the decision-making process and the
advertising approach.
Feedback: The conditioning theory of learning is also called the stimulus-response theory.
11. Conditioning theory of learning applies to the simple, basic, and low involvement purchases that
consumers make every day.
TRUE
AACSB: Analytic
Blooms: Understand
Feedback: Conditioning theory is more applicable to the simple, basic, low involvement purchases consumers
make every day, such as soap, cereal, toothpaste, paper towels.
12. A consumer engaged in peripheral route processing is more likely to make an impulse buy than a
consumer engaged in central route processing.
TRUE
AACSB: Analytic
Blooms: Understand
Difficulty: 3 Hard
Feedback: When consumers have low involvement with a product or message, they are processing ads
peripherally and are not thinking deeply about the product’s attributes. They are more likely to make impulsive
buying decisions. Central route processing is less likely to trigger impulse purchases because consumers are
focused on product information.
13. Habit is the natural extension of learning.

TRUE
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Feedback: Habit—the acquired behavior pattern that becomes nearly or completely involuntary—is the natural
extension of learning. We really are creatures of habit.
14. Brand loyalty occurs when a consumer perceives that a brand has the right features and quality at the
right price.
TRUE
AACSB: Analytic
Blooms: Understand
Feedback: Brand loyalty is the consumer’s conscious or unconscious decision, expressed through intention or
behavior, to repurchase a brand continually. It occurs because the consumer perceives that the brand offers the
right product features, image, quality, or relationship at the right price.
15. When discussing needs and wants in an advertising context, Rae needs a Kombucha Wonder Drink
because she wants to quench her thirst.
FALSE
Blooms: Apply
Learning Objective: 05-04 Describe the fundamental motives behind consumer purchases.
Feedback: Needs are the basic, often instinctive, human forces that motivate us to do something, such as thirst.
Wants are “needs” that we learn during our lifetime, such as wanting a Kombucha instead of a Pepsi.
16. The most common energizers of consumer behavior are the negatively originated motives.
TRUE
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Feedback: The most common energizers of consumer behavior are the negatively originated motives, such as
problem removal or problem avoidance.
17. Zainab wants to make an omelet for dinner, but she is out of eggs. Negative motivation is the force
that moves Zainab to go to the grocery store to buy eggs.
TRUE
Blooms: Apply
Difficulty: 3 Hard
problem removal or problem avoidance. Whenever we run out of something, for instance, we experience a
negative mental state. To relieve those feelings, we actively seek a new or replacement product. Thus, we are
temporarily motivated until the time we make the purchase. Then, if the purchase is satisfactory, the drive or
motivation is reduced.
18. Informational motives are the negatively originated motives, such as problem removal or problem
avoidance.
TRUE
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Feedback: Informational motives: The negatively originated motives, such as problem removal or problem
avoidance, which are the most common energizers of consumer behavior.
19. Personal reference groups are people outside the family we wish to emulate.
FALSE
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Feedback: Reference groups are people we try to emulate or whose approval concerns us. Reference groups
can be personal (family, friends, co-workers) or impersonal (political parties, religious denominations,
professional associations). Family members can be part of our reference group.
20. Choosing a credible spokesperson requires understanding the tastes and interests of the company’s
target market.
TRUE
AACSB: Analytic
Blooms: Understand
Feedback: When choosing an opinion leader as a spokesperson for a company or product, advertisers must
understand the company’s target market thoroughly. Even if executives in the company do not relate to the
spokesperson, they must follow market tastes and interests. A spokesperson out of sync with the market
undermines his or her credibility—and the company’s.
21. Subcultures, which are segments within a culture, tend to transfer their beliefs and values from
generation to generation.
TRUE
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Feedback: A subculture is a segment within a culture that shares a set of meanings, values, or activities that
differ in certain respects from those of the overall culture. Subcultures tend to transfer their beliefs and values
from generation to generation.
22. Tamika breaks her phone while she is out dancing one night. When looking for a new phone, she goes
to the store and considers the newer model of her old phone plus two other companies’ phones that have
similar prices but different features. These two other brand phones make up Tamika’s evoked set.
TRUE
Blooms: Apply
Feedback: An evoked set is the particular group of alternative goods or services a consumer considers when
making a buying decision.
23. The same cognitive dissonance process occurs with low-involvement purchases and high-involvement
purchases.
FALSE
AACSB: Analytic
Blooms: Understand
Feedback: The theory of cognitive dissonance holds that people strive to justify their behavior by reducing the
dissonance, or inconsistency, between their cognitions (their perceptions or beliefs) and reality. The process is
significantly simpler for low-involvement products.
24. The FCB grid is used to determine how personal and nonpersonal factors influence consumer
behavior.
FALSE
AACSB: Analytic
Blooms: Understand
Feedback: The FCB grid classifies different types of products by creating four different quadrants on based
involvement and how the consumer thinks and feels. The grid is used to decide what type of advertising would
be most effective.
25. The Kim-Lord grid portrays the degree and the kind of involvement a consumer brings to the purchase
decision.
TRUE
AACSB: Analytic
Blooms: Understand
Feedback: The Kim-Lord grid is a variation of the FCB grid, which allows for the fact that the level of
consumer involvement in a product does not have to be high “think” and low “feel” (or vice versa) but can be
high (or low) in both categories.
26. In terms of the human communication process model, what role does the sponsor of the advertisement
play?
27. feedback
28. channel
29. message
30. receiver
31. E. source

Blooms: Understand
Feedback: Applying the human communication process model to advertising, we could say that the source is
the sponsor, the message is the ad, the channel is the medium, the receiver is the consumer or prospect, and the
noise is the din of competing ads and other messages.
27. According to the human communication process, the person who read all of the copy in an ad for
Lyrica, a prescription for people who feel tingling or burning sensations in their feet, would be a(n)
28. encoder.
29. medium.
30. C.
31. source.
32. channel.


Blooms: Apply
Feedback: The receiver is usually the consumer who receives the advertiser’s message. The advertiser must
always be concerned about how the consumer will decode, or interpret, a message.
28. According to the human communication process, a person who responds to an online Starbucks survey
is most likely
29. acting as a source.
30. B. providing feedback.
31. creating Internet noise.
32. low in brand loyalty.
33. initiating a new communication channel.


Blooms: Apply
Feedback: Feedback verifies the message was received. A person who responds to an online Starbucks survey
is most likely providing feedback.
29. Wyclef is a music producer. In a magazine called Mix Magazine, Wyclef reads about new mixing
equipment that allows him to mix both analog and digital sources with full modulation. Wyclef used a(n)
_____ to learn about this new product.
30. direct message
31. feedback channel
32. C. nonpersonal channel
33. personal channel
34. inert medium


Blooms: Apply
Feedback: Nonpersonal channels of communication are those that rule out interpersonal contact between the
sender and the receiver. Mass communications, such as television, newspapers, magazines, radio, and
billboards, are sent to many individuals at one time, so they are nonpersonal communication channels.
30. Alan did not notice the ad for Goodwater riding equipment in Western Horseman because he was
much more interested in an article on Argentinian cowboys on the page opposite the equipment ad. In
terms of the communication process, the article on Argentinian cowboys served as _____ for the
Goodwater ad.
31. A. noise
32. feedback
33. reinforcement
34. a source maze
35. a reception blocker


Blooms: Apply
Feedback: Noise is the sender’s advertising message competing daily with hundreds of other commercial and
noncommercial messages. The article was noise because it prevented Alan from seeing the ad.
31. _____ is the mental and emotional processes and the physical activities of people who purchase and
use goods and services to satisfy particular needs and wants.
32. A. Consumer behavior
33. Stimulus response
34. Cognitive learning
35. Psychological response
36. Customer fulfillment

AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Topic: The Role of Consumer Behavior
Feedback: Consumer behavior refers to the mental and emotional processes and the physical activities of
people who purchase and use goods and services to satisfy particular needs and wants.
32. What is the first step in the basic consumer decision process?
33. evaluating options
34. identifying motivations
35. making comparisons
36. D. recognizing a problem
37. seeking more information

AACSB: Analytic
Blooms: Apply
Feedback: The first step in the consumer decision process is problem recognition, which is followed by
information search, evaluation and selection, store choice and purchase, and post-purchase behavior.
33. Which of the following is an example of an interpersonal influence that would affect the purchase of
an IRA (Individual Retirement Account)?
34. the individual’s tax bracket
35. B. the IRA fund that family members use
36. the current economic environment
37. the time of year the IRA is being purchased
38. the level of fees charged by the plan


Blooms: Apply
Feedback: Interpersonal influences include our family, society, and culture.
34. _____ governs the way we discern raw data (stimuli) and translate them into feelings, thoughts,
beliefs, and actions.
35. A. Personal processes
36. Interpersonal influences
37. Nonpersonal influences
38. Evaluative criteria
39. Evoked sets

AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Feedback: The three personal processes govern the way we discern raw data (stimuli) and translate them into
feelings, thoughts, beliefs, and actions. The personal processes are perception, learning and persuasion, and
motivation.
35. _____ is the personalized way we sense, interpret, and comprehend various stimuli.
36. Habit
37. Learning
38. C. Perception
39. Motivation
40. Attitude

AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Feedback: We use the term perception to refer to the personalized way we sense, interpret, and comprehend
various stimuli.
36. At a wine tasting, Joni sees a case of blue bottles of wine and, intrigued by the color, decides to try a
glass. It tastes slightly sweet to her and she decides to buy a whole case. Hermina notices the same brand of
wine, but to her it tastes more bitter than sweet, so she keeps looking around the store. Their difference in
behavior most likely occurs because of their differing
37. A.
38. cultures.
39. social classes.
40. beliefs.
41. knowledge.


Blooms: Apply
Feedback: Perception is our personalized way of sensing and comprehending stimuli, which we perceive
through our senses, such as taste.
37. A(n) _____ is physical information we receive through our senses.

38. motivator
39. selective perception
40. attitude
41. D. stimulus
42. habit

AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Feedback: A stimulus is physical information we receive through our senses.
38. Thomas was planning on seeing a movie last weekend. After trying and failing to read the small print
which told the times the movie would be shown, he gave up and decided to go to the zoo instead. In this
case, _____ screens influenced his perception.
39. A. physiological
40. rational
41. functional
42. psychological
43. self-actualizing


Blooms: Apply
Feedback: The physiological screens comprise the five senses: sight, hearing, touch, taste, and smell. They
detect incoming data and measure the dimension and intensity of the physical stimuli.
39. In a study in the Netherlands, Belgium, and Germany, respondents were asked to rate imported meat
against locally produced meat. In all cases, locally produced meat was rated much higher even though the
meat from all three nations is virtually indistinguishable by sight, taste, or smell. _____ screens based on
learned factors most likely led to this perceived differences.
40. Physiological
41. Rational
42. Functional
43. D. Psychological
44. Self-actualizing


Blooms: Apply
Difficulty: 1 Easy
Feedback: Each consumer uses psychological screens to evaluate, filter, and personalize information according
to subjective emotional standards. These screens evaluate data based on innate factors, such as the consumer’s
personality and instinctive human needs, and learned factors, such as self-concept, interests, attitudes, beliefs,
past experiences, and lifestyle. Physiological screens rely on the senses.
40. If you receive an invitation to your 25th high school reunion, you will be much more likely to notice
ads for various weight-loss programs, diet foods, and skin rejuvenators than if you are invited to an annual
family picnic. This is an example of how _____ affects perception.
41. user-set
42. an evoked set
43. C. self-concept
44. persuasion
45. mental files


Blooms: Apply
Feedback: Self-concept is our image of ourselves and who we want to be.
41. During Carl’s first semester in college, he walks through his student union building everyday on his
way to classes. At the beginning of the semester, he easily gets distracted and stops to look at all the posters
and to talk to all the groups giving out information about various causes. He was often late for class.
However, by the middle of the semester, he would walk through the student union without even noticing
the new groups and signs. Carl has likely created _____ to shield him from all the competing messages.
42. noise
43. feedback
44. mental files
45. D. perceptual screens
46. cognitive dissonance


Blooms: Apply
Difficulty: 3 Hard
Feedback: Before any data can be perceived, they must first penetrate a set of perceptual screens, the
subconscious filters that shield us from unwanted messages. Carl screened out information to protect himself
from unwanted messages. The perceptual screens prevented him from noticing the new messages in the
environment.
42. Consumer concern about food contamination from pathogenic bacteria is generally nonexistent
because most people view food safety as a government issue. The element of perception responsible for
this interpretation is called
43. attitude.
44. learning.
45. motivation.
46. D.
47. screening.


Blooms: Apply
Difficulty: 3 Hard
Feedback: When a stimulus is perceived, we try to make sense of it by relating it to the things we already
know. That is the role of cognition, the point of awareness and comprehension of a stimulus. Cognition
determines an individual’s reality base.
43. The stored memories in our minds are called

44. cognitive files.
45. B. mental files.
46. the personal database.
47. a data mine.
48. an information warehouse.

AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Feedback: The mind is like a memory bank, and the stored memories in our minds are called the mental files
(or perceptual files).
44. The immediate images that the name Oz creates for a fan of Ozzie Osborne’s music and a fan of The
Wizard of Oz are very different. The screen-building process has created different _____ for the two
individuals.
45. blocking functions
46. stimulus/response stereotypes
47. habitual perceptions
48. attitudinal awareness
49. E. mental files


Blooms: Apply
Feedback: The stored memories in our minds are called mental files. In this case, the screen-building process
has created different mental files for the two individuals.
45. _____ is a relatively permanent change in thought process or behavior that occurs as a result of
reinforced experience.
46. Stimulation
47. Perception
48. Dissonance
49. D. Learning
50. Substantiated cognition

AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Feedback: By definition, learning is a relatively permanent change in thought process or behavior that occurs
as a result of experience.
46. What are the two broad categories of learning theories used by most advertisers?
47. A. cognitive and conditioning theories
48. central and peripheral route theories
49. interpersonal and nonpersonal theories
50. affective and cognitive route theories
51. psychological and physiological screen theories

AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Feedback: There are numerous theories of learning, but advertisers classify most into two broad categories—
cognitive theory and conditioning theory—depending on the level of consumer involvement (high or low)
required to make a purchase.
47. Destini Heavy-Runner is looking to diversify her investments. She talks to her grandmother and then
reads up on several companies she might buy stock in before discussing them with her financial advisor.
Which of the following best describes the method Destini is using to learn more about her investing
options?
A.stimulus-response theory
1. peripheral route to persuasion

2. central route to persuasion
3. conditioning theory
4. E. cognitive theory


Blooms: Apply
Difficulty: 3 Hard
Feedback: Cognitive theory views learning as a mental process of memory, thinking, and the rational
application of knowledge to practical problems. This theory may be an accurate description of how we learn
from the experience of others. In this case, cognitive theory best describes how Destini decides which
investments to make.
48. When _____ has occurred, a person experienced a change in a belief, an attitude, or a behavioral
intention due to a message such as an advertisement.
49. evaluation
50. corroboration
51. motivation
52. substantiation
53. E. persuasion

AACSB: Analytic
Blooms: Understand
Feedback: Persuasion occurs when the change in belief, attitude, or behavioral intention is caused by a
message (such as advertising or personal selling).
49. Considering the Elaboration Likelihood Model, which of the following purchases would most likely
involve the central route to persuasion?
50. A. a Mother’s Day card
51. a box of paper clips
52. a bag of Lays potato chips
53. a carton of eggs
54. a McDonald’s Happy Meal


Blooms: Apply
Difficulty: 3 Hard
Feedback: In the central route to persuasion, consumers have a higher level of involvement with the product or
message.
50. Taking into account the Elaboration Likelihood Model, which of the following purchases would most
likely involve the peripheral route to persuasion?
51. a wedding dress
52. a Mediterranean cruise
53. C. a can of soda
54. an infant car seat
55. a set of golf clubs

Blooms: Apply
Difficulty: 3 Hard
Feedback: In the peripheral route to persuasion, consumers are more likely to be dealing with products with
which they have low involvement, such as a can of soda.
51. Most mass media advertising probably receives _____ processing because very few people are
actually in the market for a particular product at any given time.
52. elaborate
53. B. peripheral
54. central
55. habitual
56. perceptual

AACSB: Analytic
Blooms: Understand
Feedback: Because very few people are actually in the market at any given time, most mass media advertising
receives peripheral processing. In the peripheral route to persuasion, consumers are more likely to be dealing
with products with which they have low involvement.
52. Sophie loves Crunch bars. On her way home from a long day of work, she stops at a gas station to get
a Crunch bar. However, when she reads Rolling Stone and finds an ad with the Snickers logo that reads
“SNKRS Fnlly! Snkrs minis,” she gives a chuckle and thinks maybe she will try a Snickers after work
tomorrow. Which of the following describes her decision to try Snickers?
53. consumer loyalty
54. brand disparity
55. C. brand interest
56. brand perception
57. criteria evaluation


Blooms: Apply
Difficulty: 3 Hard
Feedback: Brand interest is an individual’s openness or curiosity about a brand. Sophie is exhibiting curiosity
about Snickers.
53. The acquired mental position we hold regarding some idea or object is called a(n)
54. cognition.
55. perception.
56. C.
57. motivation.
58. stimulation.

AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Feedback: Attitude is the acquired mental position—positive or negative—regarding some idea or object.
54. _____ is the acquired behavior pattern that becomes nearly or completely involuntary.
55. Attitude
56. Incentive
57. Impetus
58. D. Habit
59. Motive

AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Feedback: Habit—the acquired behavior pattern that becomes nearly or completely involuntary—is the natural
extension of learning. We really are creatures of habit.
55. Which of the following is an example of habit acquisition?

56. For every ten cups of coffee you purchase at a local convenience store, you get one free.
57. A salesclerk gives out free samples of Bush’s brand home style chili at Sam’s Club.
58. Reynar, a long-time Crest toothpaste user, receives a coupon for a free trial-size of Rembrandt
toothpaste in the mail.
59. D. Verizon wireless offers customers a discount on their new phone purchase in exchange for signing
a two-year contract when they sign up for service.
60. The new Kroger supermarket is holding a grand opening with numerous buy-one-get-one-free items to
attract shoppers from other supermarkets.


Blooms: Apply
Difficulty: 3 Hard
Feedback: Acquiring habits involves teaching consumers to repurchase their brand. In an attempt to teach
consumers to stay on a contract for their cellular service, Verizon offers incentives such as discounts on phones
for members that are tied to a contract in order to commit them to continuing to purchase its cellular service
later on. A convenience store promotion is habit reinforcement. The coupon and the free samples of the new
product are habit breaking as are the sale items offered at the grand opening.
56. Which of the following promotions is intended to help the advertiser meet the goal of habit
reinforcement?
57. A. For every ten cups of coffee you purchase at a local convenience store, you get one free.
58. A salesclerk gives out free samples of Bush’s brand home style chili at Sam’s Club.
59. Sam sees a comparative ad showing the superiority of Coors beer over Anheuser-Busch beer.
60. A vacuum cleaner salesperson offers to clean the living room carpet of the Truman household.
61. A new laundry shop offers a one-time free trial for all customers.


Blooms: Apply
Difficulty: 3 Hard
Feedback: Reinforcing habits involves reminding current customers of the value of their original purchase and
encourage them to continue purchasing. Many magazines, for example, offer special renewal rates to their
regular subscribers. Hotels offer loyalty programs and airlines award frequent-flier miles for the same reason.
The convenience store promotion is trying to get present customers to be habitual customers.
57. _____ refers to the underlying forces that contribute to an individual’s purchasing actions.
58. Conditioned learning
59. Perception
60. Inducement
61. D. Motivation
62. Corroboration

AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Feedback: Motivation refers to the underlying forces (or motives) that foster actions. These motives stem from
the conscious or unconscious goal of satisfying our needs and wants.
58. _____ refer to the basic, often instinctive, human forces that motivate us to do something.
59. A. Needs
60. Wants
61. Ideals
62. Habits
63. Attitudes

AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Feedback: Needs are the basic, often instinctive, human forces that motivate us to do something.
59. _____ are needs that we learn during our lifetime.

60. Values
61. B. Wants
62. Ethics
63. Desires
64. Ideals

AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Feedback: Wants are “needs” that we learn during our lifetime.
60. Maslow’s hierarchy of needs helps researchers

61. create habit-breaking attitudes.
62. learn how to control selective perception.
63. understand how culture influences consumer behavior.
64. control the amount and type of feedback.
65. E. better understand what motivates consumers.

AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Feedback: To better understand what motivates people, Abraham Maslow developed the classic model called
the hierarchy of needs. It helps classify how people are motivated.
61. When an ad for a master’s program encourages potential students to “Realize your full potential,”
which level of Maslow’s hierarchy of needs is being appealed to?
62. safety
63. B. self-actualization
64. love
65. physiological
66. social


Blooms: Apply
Feedback: The highest need in Maslow’s hierarchy, self-actualization is the culmination of fulfilling all the
lower needs and realizing one’s true potential. The graduate school ad asks potential students to do just that:
realize their full potential.
62. Someone who is a vegetarian often becomes so due to the belief that killing animals is cruel and that
processed meat contains harmful chemicals. Both of these reasons are examples of _____ motives.
63. transformational
64. stimulus
65. C. negatively originated
66. transactional
67. need-based


Blooms: Apply
problem removal or problem avoidance. Whenever we run out of something, for instance, we experience a
negative mental state. To relieve those feelings, we actively seek a new or replacement product. The reasons
created a negative mental state.
63. Kate is looking forward to spending two weeks in Hawaii having fun. However, one week before the
trip, Kate’s car breaks down, and she has to spend her vacation money on repairs. Kate’s desire for a
luxurious vacation is produced by a(n) _____ motive, while the necessity of paying for car repairs is an
example of a _____ motive.
64. A. positively originated; negatively originated
65. transformational; transactional
66. informational; transformational
67. negatively originated; positively originated
68. informational; transactional


Blooms: Apply
Difficulty: 3 Hard
Feedback: The vacation can be viewed as a reward and is, therefore, a positively originated motive. The car
repair removes a problem and is, therefore, a negatively originated motive.
64. People who enjoy a thick Porterhouse steak often appreciate the taste and consider the meal a well-
deserved reward at the end of a hard day. These reasons for enjoying steak are all examples of _____
motives.
65. A. transformational
66. informational
67. negatively originated
68. transactional
69. need-based


Blooms: Apply
Feedback: The three positively originated motives—sensory gratification, intellectual stimulation, and social
approval—are also called transformational motives because the consumer expects to be transformed in a
sensory, intellectual, or social sense. They could also be called “reward” motives because the transformation is
a rewarding state.
65. _____ are groups of people we try to emulate or whose approval concerns us.
66. Approval centers
67. Emulation groups
68. Norm standard bearers
69. Cultural norms
70. E. Reference groups

AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Feedback: Reference groups are people we try to emulate or whose approval concerns us.
66. Tina is a new student at a private academy. She values the opinions of her new classmates and tries to
dress just like them. She watches the same television shows they watch and tries to copy their hairstyles
and the way they stand. For Tina, her new classmates are a(n)
67. approval center.
68. focus group.
69. standard bearer.
70. cultural norm.
71. E. reference group.


Blooms: Apply
Feedback: Reference groups are people we try to emulate or whose approval concerns us. Tina desires her new
classmates’ approval.
67. In the special bride edition of Martha Stewart Living magazine, its editors describe the latest trends in
weddings and give advice on how to create the perfect wedding. In this situation, the editors of the
magazine could be considered
68. A. opinion leaders.
69. reinforcers.
70. a reference point.
71. selective communicators.
72. negative motivators.


Blooms: Apply
Difficulty: 3 Hard
Feedback: An opinion leader is some person or organization whose beliefs or attitudes are respected by people
who share an interest in some specific activity. All fields (sports, religion, fashion, politics) have opinion
leaders. An opinion leader may be some expert we find credible. The editors of the magazine are acting in the
role of knowledgeable friends.
68. _____ refers to the whole set of meanings, beliefs, attitudes, and ways of doing things that are shared
by some homogeneous social group and typically handed down from generation to generation.
69. A. Culture
70. Psychographics
71. Civilization
72. Social evolution
73. Social class

AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Feedback: Culture refers to the whole set of meanings, beliefs, attitudes, and ways of doing things that are
shared by some homogeneous social group and typically handed down from generation to generation.
69. The number of Hispanics in the United States is growing rapidly. In Mexico, a prescription is not
needed to get medication, so the idea of bringing prescriptions to the pharmacist in order to get the needed
medicine is foreign to Mexican immigrants. Developing a method of explaining prescriptions to recent
immigrants is a response to _____ differences.
70. social class
71. economic
72. C. cultural
73. ethical
74. psychographic


Blooms: Apply
Feedback: Culture refers to the whole set of meanings, beliefs, attitudes, and ways of doing things that are
shared by some homogeneous social group and typically handed down from generation to generation. Culture
includes the ways things are done—such as treating an illness. Hence, developing a method of explaining
prescriptions to recent immigrants is a response to cultural differences.
70. Zoroastrianism was the dominant world religion during the Persian empires (559 BC to AD 651) and
was thus the most powerful world religion at the time of Jesus. It is still practiced worldwide, especially in
Iran and India. Within these two countries, the religion’s members share a set of beliefs that set them apart
from others who reside in the country. Believers in this religion would be classified as a(n)
71. classless society.
72. B.
73. national reference group.
74. transformational group.
75. opinion group.


Blooms: Apply
Feedback: A subculture is a segment within a culture that shares a set of meanings, values, or activities that
differ from those of the overall culture.
71. Consumers’ evoked sets are

72. those members of the buyer’s family who must be considered when a product is selected for purchase.
73. the combination of products that consumers finally select for their use.
74. C. the alternative goods and services that consumers evaluate before making decisions.
75. the environments that affect the decision-making process.
76. the relevant reference group(s) for a particular purchase.

AACSB: Analytic
Blooms: Understand
Feedback: An evoked set is the particular group of alternative goods or services a consumer considers when
making a buying decision.
72. Caylin is an avid video game player. Her favorite series is Fallout, though she also likes Halo and
World of Warcraft for their depth of narrative. When she buys new video games, Caylin chooses releases
only from these three brands, which are her
73. evaluated set.
74. B. evoked set.
75. standardized set.
76. selected criteria.
77. alternative list.


Blooms: Apply
Feedback: An evoked set is the alternatives that consumers evaluate before making decisions. In this case,
Caylin considers only these three options, so they are an evoked set for her.
73. To establish an evoked set, consumers must

74. have brand loyalty.
75. B. establish evaluative criteria.
76. recognize personal influences.
77. avoid post-purchase evaluation.
78. experience cognitive dissonance.

AACSB: Analytic
Blooms: Understand
Feedback: Evaluative criteria are standards that consumers use to judge the features and benefits of their
evoked sets.
74. Once a month, Morgan buys a case of wine. She will buy either the Charles Shaw brand, the
Livingston brand, or the Sutter Home brand because she knows that these three brands are inexpensive and
tasty. Inexpensive and tasty would be classified as her
75. peripheral responses.
76. selective tools.
77. C. evaluative criteria.
78. evoked set.
79. acquired attitude.


Blooms: Apply
Feedback: Evaluative criteria are the standards that consumers use to judge the features and benefits of their
evoked sets. In this case, inexpensive and tasty would be classified as Morgan’s evaluative criteria.
75. According to the _____, people strive to justify their behavior by reducing the degree to which their
beliefs or impressions are inconsistent with reality.
76. cognitive theory of satisfaction
77. stimulus-response theory
78. equity theory
79. D. theory of cognitive dissonance
80. expectancy theory

AACSB: Analytic
Blooms: Understand
Feedback: A key feature of the post purchase evaluation is cognitive dissonance. The theory of cognitive
dissonance holds that people strive to justify their behavior by reducing the dissonance, or inconsistency,
between their cognitions (their perceptions or beliefs) and reality.
76. Gopal bought a Schwinn road bike in good condition from a used bike shop for $160, thinking he got
a steal. When he got home and searched for his bike on the Internet, he found the same model for sale from
Walmart for $149 new. Rather than getting upset at the price difference, Gopal justifies the purchase to
himself by deciding it was better to support a local bike shop than a chain. Gopal’s rationalization is an
example of someone trying to
77. use selective perception.
78. B. reduce cognitive dissonance.
79. increase perceptual dissonance.
80. reduce negative motivation.
81. explain attitudinal dissatisfaction.


Blooms: Apply
Feedback: Cognitive dissonance occurs when there is inconsistency between what the consumer perceived to
be true and reality. In this case, Gopal is trying to reduce his sense of cognitive dissonance that he paid the
wrong price for his used bike by rationalizing the decision another way.
77. In which of these scenarios is the consumer most likely to experience cognitive dissonance?
78. A mother purchased snacks for her teenage son.
79. A secretary rented a car for her boss’s business trip.
80. A jogger purchased a bottle of water for himself.
81. A student purchased a pizza for supper.
82. E. An engaged couple bought a new house.
Blooms: Apply
Feedback: When the level of involvement for a purchase is high, the potential for cognitive dissonance is
greater. People buying a house are more involved in the purchase than a person buying snacks, water, or pizza
and so are more likely to experience cognitive dissonance.
78. Which of the following statements is true about the FCB grid?
79. A. It helps advertising agencies determine which type of advertising to use for a specific product.
80. It demonstrates how consumers can avoid cognitive dissonance through the use of more specific
evaluative criteria.
81. It illustrates how negatively originated motives differ from positively originated motives.
82. It helps create integrated marketing communications that present a unified message to the targeted
audience.
83. It helps advertising agencies determine which approach to use based on the consumer’s stage on the
brand loyalty continuum.

AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Feedback: FCB grid is a two-dimensional model that categorizes consumer products into four quadrants based
on “high involvement” or “low involvement,” and “think” or “feel.” By positioning brands in the grid, an
agency can determine the type of advertising that would be most appropriate.
79. The four quadrants of the FCB grid are high involvement or low involvement and
80. need or want.
81. B. think or feel.
82. culture or society.
83. peripheral or route persuasion.
84. cognitive or conditioned thinking.

AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Feedback: The FCB grid is a two-dimensional model that categorizes consumer products into four quadrants
based on “high involvement” or “low involvement,” and “think” or “feel.” By positioning brands in the grid,
an agency can determine the type of advertising that would be most appropriate.
80. The _____ depicts the degrees and kinds of involvement a consumer brings to the purchase decision
for different products.
81. basic consumer decision model
82. FCB grid
83. traditional model of consumer involvement
84. D. Kim-Lord grid
85. continuum of purchase expectations

AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Feedback: The Kim-Lord grid also depicts the degree and the kind of involvement a consumer brings to the
purchase decision for different products. Some purchases, like cars, require a high degree of personal
involvement on both the cognitive and affective levels.
81. Define consumer behavior.

Consumer behavior: The activities, actions, and influences of people who purchase and use goods and services
to satisfy their personal or household needs and wants.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
82. What are the three personal processes in the consumer decision process?
The three personal processes govern the way we discern raw data (stimuli) and translate them into feelings,
thoughts, beliefs, and actions. The personal processes are the perception, the learning and persuasion, and the
motivation processes.
AACSB: Analytic
Blooms: Understand
83. What are physiological screens and how do they affect the advertising process?
The physiological screens comprise the five senses: sight, hearing, touch, taste, and smell. They detect
incoming data and measure the dimension and intensity of the physical stimuli.
AACSB: Analytic
Blooms: Understand
84. Compare the two routes to persuasion described in the elaboration likelihood model.
The elaboration likelihood model describes both the central route to persuasion and the peripheral route to
persuasion. When a consumer’s level of involvement is higher, the central route to persuasion is more likely.
On the other hand, the peripheral route to persuasion predominates when consumer involvement is low.
Blooms: Understand
85. What is the difference between a habit and an attitude?
Attitude: The acquired mental position—positive or negative—regarding some idea or object. Habit: An
acquired or developed behavior pattern that has become nearly or completely involuntary. Attitude is the
mental side and habit is the behavioral side of the same coin.
AACSB: Analytic
Blooms: Understand
86. What are the three positively originated (transformational) motives?
The three positively originated motives—sensory gratification, intellectual stimulation, and social approval—
are also called transformational motives because the consumer expects to be transformed in a sensory,
intellectual, or social sense.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
87. What are three most important interpersonal influences and what do they affect?
Important interpersonal influences affect our mental processes and behavior. They include our family, society,
and culture.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
88. Why does the Organization of American Milk Processing use a variety of different celebrities in its
“Got Milk” ad campaign?
The American Milk Processing uses a variety of celebrities in its ad campaigns to make use of opinion leaders
that appeal to a wide range of target markets.
AACSB: Analytic
Blooms: Understand
Difficulty: 3 Hard
89. Briefly explain the theory of cognitive dissonance.
The theory of cognitive dissonance holds that people strive to justify their behavior by reducing the dissonance
or inconsistency between their cognitions (their perceptions and beliefs) and reality.
AACSB: Analytic
Blooms: Understand
90. What are the dimensions used on the Foote, Cone & Belding grid to determine which type of
advertising would be most appropriate?
The FCB grid categorized consumer products into four quadrants based on “high involvement” or “low
involvement,” and “think” or “feel.”
AACSB: Analytic
Blooms: Understand
91. List the elements of the human communication process model and briefly describe each.
The various parts of the human communication process model are: (a) source—formulates an idea, (b)
encoding—encodes the idea as a message, (c) message—a form of communication that can be understood, (d)
channel—the message is sent through a channel to another party, (e) receiver—this party receives the message
from the source through a channel, (f) decoding—to understand the message the receiver must decode it, (g)
feedback—a message that has been sent is now acknowledged and a response is sent back to the source, and
(h) noise—can interfere with the message transmission or understanding.
Blooms: Understand
92. Describe the basic consumer decision process model. Include any processes that precede the actual
decisions made by consumers.
Interpersonal influences (family, society, and culture) interact with nonpersonal influences (time, place, and
environment) and personal processes (perception, learning and persuasion, and motivation) to bring needs and
wants into decision making. The consumer’s experiences and acquisitions impact this decision process. The
actual decision process has five distinct steps: (a) problem recognition, (b) information search, (c) evaluation
and selection, (d) store choice and purchase, and (e) post-purchase behavior (positive or negative experience).
AACSB: Analytic
Blooms: Understand
93. Describe the model of the consumer perception process.
Physical data or stimuli (ads/commercials, promotion, news items, products/stores, price tags, conversations)
meet physiological (sensory) screens (sight, touch, hearing, taste, smell) and then meet psychological
(emotional) screens (personality, self-concept, attitudes, beliefs, and habits) that result in cognition or
awareness by the consumer. Once the consumer is aware of data or stimuli, the information goes into mental
(memory) files (information, needs, wants) for further processing.
AACSB: Analytic
Blooms: Understand
94. Why is it important for marketers to realize that consumers have limited memories?
Memory is a limited resource, and one susceptible to some well-known biases. Because of limited memory,
consumers resist opening new mental files and avoid accepting new information inconsistent with what is
already filed. Because screens are such a major challenge to advertisers, it’s important to understand what’s in
the consumer’s mental files and, if possible, modify them in favor of the advertiser’s product.
AACSB: Analytic
Blooms: Understand
95. Contrast cognitive learning with conditioned learning.
The cognitive theory views learning as a mental process of memory, thinking, and rational application of
knowledge to practical problems. This theory explains how we learn from experience. Often called stimulus-
response theory, the conditioning theory treats learning as a trial-and-error process. Some stimulus triggers a
want or need and this in turn creates the drive to respond. This theory is also associated with forming repeat
behavior.
AACSB: Analytic
Blooms: Understand
96. What is the difference between the central route and the peripheral route to persuasion?
Central route to persuasion: One of two ways communication can persuade consumers. When a consumer’s
level of involvement is high, the central route to persuasion is more likely. In the central route to persuasion,
consumers are motivated to pay attention to the central, product-related information, such as product attributes
and benefits. Because of their high involvement, they tend to learn cognitively and comprehend the ad-
delivered information at deeper, more elaborate levels.
Peripheral route to persuasion: One of two ways communication can persuade consumers. When consumers
have low involvement with a product or message, they have little reason to pay attention to or comprehend the
central message of the ad. However, these consumers might attend to some peripheral aspects of an ad for its
entertainment value. Consistent with stimulus response theory, consumers may respond to the message at a
later date, when a purchase occasion arises.
AACSB: Analytic
Blooms: Understand
97. Why would an advertiser repeat the same commercial numerous times during a sporting event on
television? How does the advertiser hope to benefit?
One key to learning and persuasion is repetition. Advertising must repeat key information to prospective and
current customers so they remember the product’s name and its benefits. Repeat messages are necessary to
penetrate customers’ perceptual screens by rekindling memories of information for previous advertising. The
repeated ads place a product’s name and benefits firmly in customers’ mental files.
AACSB: Analytic
Blooms: Understand
Difficulty: 3 Hard
98. What are transformational motives? List three examples of transformational motives.
Transformational motives are positively originated motives or reward motives because the consumer expects to
be transformed in a sensory, intellectual, or social sense. The consumer expects some benefit or reward. The
three transformational motives are sensory gratification, intellectual stimulation, and social approval.
Examples will vary but may include things like the desire for a good-tasting meal, curiosity about a particular
topic, and interest in an object that conveys high status.
AACSB: Analytic
Blooms: Understand
99. Define culture and contrast it to subculture.
Culture: A homogeneous social group’s whole set of beliefs, attitudes, and ways of doing things, typically
handed down from generation to generation. Subculture: A segment within a culture that shares a set of
meanings, values, or activities that differ in certain respects from those of the overall culture.
AACSB: Analytic
Blooms: Understand
100. Distinguish between the FCB grid and the Kim-Lord grid.
FCB grid: A two-dimensional model that categorizes consumer products into four quadrants based on “high
involvement” or “low involvement,” and “think” or “feel.” By positioning brands in the grid, an agency can
determine the type of advertising that would be most appropriate. Kim-Lord grid: A variation of the FCB grid,
which allows for the fact that the level of consumer involvement in a product does not have to be high “think”
and low “feel” (or vice versa) but can be high (or low) in both categories.
AACSB: Analytic
Blooms: Understand
Category
# of Questions
AACSB:
Analytic
61
AACSB:
Communication
4
AACSB: Reflective
Thinking
35
Accessibility: Keyboard
Navigation 80
Blooms:
Apply
36
Blooms:
Understand
64
Difficulty: 1
Easy
30
Difficulty: 2
Medium
56
Difficulty: 3
Hard
14
Learning Objective: 05-01 Explain how advertising differs from the basic communication
process. 16
“perception is everything.” 18
advertising approach. 22
Learning Objective: 05-04 Describe the fundamental motives behind consumer

purchases. 13
Learning Objective: 05-05 Discuss the various influences on consumer

behavior. 31
Topic: Approaches to Studying the Consumer Learning

Process 5
Topic: Basic Elements of the Communication

Process 8
Topic: How Consumers Process Marketing

Communications 12
Topic: Influences on Consumer

Behavior 32
Topic: The Consumer Decision-Making

Process 39
Topic: The Role of Consumer

Behavior 4

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M Advertising 3rd Edition By William Arens – Test Bank

2. Local advertising is sometimes called cooperative advertising.

3. Institutional advertising is primarily used to locate and recruit new employees.

7. A centralized advertising strategy relies on creating separate ad departments based on divisions,

11. Advertising agencies work for the media.

18. The incentive system is also called the retainer method.

30. Which of the following is an example of product advertising?

33. Which of the following is an example of integrated marketing communications?

35. Which of the following is a function of cooperative advertising?

41. Ericsson, an international telecommunications supplier, manufactures radio communication systems,

42. A decentralized advertising system is first broken up by

45. An advertiser who uses international media most likely

50. Non-advertising services include

51. General consumer agencies

52. A manufacturer of _____ would be most likely to use a business-to-business agency.

55. Creative boutiques usually provide

57. Interactive agencies

58. Account executives are

62. An ad agency’s traffic department

68. In advertising, a retainer is

72. Which is not a way ad agencies typically get new clients?

73. What is the most critical factor in the agency-client relationship?

74. The most commonly cited reason for changing agencies is

75. Which of the following are not considered to be suppliers?

77. Which of the following creates online ads?

Learning Objective: 03-04 Define the main types of advertising

Topic: Alternate Media

Topic: Compensating Advertising

Topic: Key Concepts of Integrated Marketing

Topic: Local, National, and Transnational

Topic: Role of the Media

Topic: The Role of Account Planners and Specialized Marketing Communication

Topic: The Role of Advertising

Topic: The Role of the Creative

13. Habit is the natural extension of learning.

AACSB: Reflective Thinking

AACSB: Reflective Thinking

AACSB: Reflective Thinking

AACSB: Reflective Thinking

AACSB: Reflective Thinking

AACSB: Reflective Thinking

37. A(n) _____ is physical information we receive through our senses.

AACSB: Reflective Thinking

AACSB: Reflective Thinking

AACSB: Reflective Thinking

AACSB: Reflective Thinking

AACSB: Reflective Thinking

43. The stored memories in our minds are called

AACSB: Reflective Thinking

1. peripheral route to persuasion

AACSB: Reflective Thinking

AACSB: Reflective Thinking

AACSB: Reflective Thinking

55. Which of the following is an example of habit acquisition?

AACSB: Reflective Thinking

AACSB: Reflective Thinking

59. _____ are needs that we learn during our lifetime.