Advertising and Promotion Canadian 6th Edition Guolla

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MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the
question.

1) The primary objective of is to develop a framework that will deliver the message to the
target audience in the most efficient, cost-effective manner possible.
A) organizational planning B) media planning
C) market segmentation D) target marketing
Answer: B

2) The media plan:

A) requires the development of specific media objectives
B) has five formalized stages that cannot be omitted from the process
C) includes product development
D) includes sales and marketing forecasts and potentials
Answer: A

3) According to Media Digest's research on Canadian media expenditures, the media type which earns
the highest revenues is:
A) online B) magazines
C) daily newspapers D) television
Answer: A

4) Category need, brand awareness, brand attitude and brand trial are all examples of:
A) communication strategies B) media objectives
C) creative execution D) media strategies
Answer: B

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5) If the advertiser selects media to allow immediate purchase of the brand, the media objective is most
likely:
A) category need B) brand attitude
C) brand trial D) media optimization
Answer: C

6) Media selected to ensure that a certain percentage of the target audience has favourable beliefs about
the brand's benefits are most likely satisfying a media objective.
A) brand attitude B) brand awareness
C) category need D) profit maximization
Answer: A

7) Campbell Soup is the market share leader in Canada, but many new competitors have entered the
market. In order to protect their leadership position and minimize consumers' switching to one of the
new brand entries, Campbell should set a media objective.
A) brand trial B) head-to-head
C) brand repeat purchase D) brand leadership
Answer: C

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8) is the measure of the number of different audience members exposed at least once to a
media vehicle.
A) Exposure B) Viewer number C) Reach D) Frequency
Answer: C

9) Each of the following satisfies a brand awareness media objective EXCEPT:

A) Provide sufficient number of exposures to ensure that 60 percent of the target audience
recognizes the need for the product category.
B) Select media to provide coverage of 80 percent of the target audience this quarter.
C) Concentrate advertising during the target audience's peak purchasing time.
D) Provide sufficient number of exposures to ensure that 60 percent of the target audience
recognizes the brand name when it's suggested to them.
Answer: A

10) refers to the potential audience that might receive the message through a vehicle.
A) Reach B) Frequency C) Exposure D) Coverage
Answer: D

11) is the number of times a receiver is exposed to a message in a given time period.
A) Potency B) Frequency C) Coverage D) Reach
Answer: B

12) Which of the following is NOT a part of the media plan?

A) Determination of media coverage B) Marketing strategies
C) Media objectives D) Frequency estimates
Answer: B

13) The is the specific carrier within a media class.

A) media type B) medium
C) media vehicle D) television message
Answer: C

14) The Globe & Mail, Maclean's, and The National Post are all examples of:
A) communications decoders B) media strategies
C) media vehicles D) distribution channels
Answer: C

15) Media planning is not an easy task. Each of the following explains one of the difficulties inherent in
the process EXCEPT:
A) indifference of creative directors to the type of media chosen
B) difficulty in measuring the effectiveness of a medium
C) insufficient information on audience figures
D) inconsistent terminology
Answer: A

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16) Which of the following explains why media planners have difficulty measuring the effectiveness of
advertising and promotions?
A) The media planner must usually balance quantitative data with subjective judgements based on
experience.
B) An opportunity to advertise within a new media vehicle might arise, requiring movement of
advertising dollars from one vehicle to another.
C) There is a debate as to whether media planning buying should be part of an advertising agency
or an independent agency.
D) Procurement specialists often put pressure on the media decisions in an effort to save money.
Answer: A

17) The wide variety ofmedia available to advertisers is called:

A) the media mix B) the media profile
C) the media strategy D) multi-media
Answer: A

18) Which of the following is NOT a factor affecting the choice of media used?
A) The size of the budget
B) Insufficient information on audience figures
C) The characteristics of the product or service
D) The behavioural objectives
Answer: B

19) Which of the following is NOT true about media planning?

A) The characteristics of the product or service may dictate which media type would be most
appropriate.
B) The choice of medium generally does not influence the consumer decision-making process.
C) The creative strategy being used may be the driving force behind the media strategy.
D) The media strategy being used may be the driving force behind the creative strategy.
Answer: B

20) Each of the following is a media characteristic which may affect the achievement of specific
communication objectives EXCEPT:
A) audience involvement B) audience reach
C) target audience selectivity D) geographic coverage
Answer: A

21) Each of the following is a media-usage characteristic which may affect the achievement of specific
communication objectives EXCEPT:
A) control for selective exposure B) amount of processing time
C) creativity for emotional responses D) cost efficiency
Answer: D

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22) Whichof the following is a strength of television as a media choice?
A) Target audience selectivity B) Amount of processing time
C) Audience involvement D) Creativity for cognitive responses
Answer: D

23) Which of the following is a limitation of television as a media choice?

A) Selective exposure B) Frequency
C) Scheduling flexibility D) Cost efficiency
Answer: A

24) Whichof the following is a strength of radio as a media choice?

A) Amount of processing time B) Selective exposure
C) Clutter D) Absolute cost
Answer: D

25) Whichof the following is a limitation of radio as a media choice?

A) Geographic coverage B) Audience attention
C) Media image D) Target audience selectivity
Answer: B

26) Whichof the following is a strength of magazines as a media choice?

A) Frequency B) Lack of processing time
C) Audience involvement D) Reach
Answer: C

27) Which of the following is a limitation of magazines as a media choice?

A) Creativity for cognitive responses B) Selective exposure
C) Cost efficiency D) Target audience selectivity
Answer: C

28) Whichof the following is a strength of newspapers as a media choice?

A) Lack of clutter B) Target audience selectivity
C) Creativity for emotional responses D) Creativity for cognitive responses
Answer: D

29) Which
of the following is a limitation of newspapers as a media choice?
A) Amount of processing time B) Selective exposure
C) Absolute cost D) Target audience selectivity
Answer: B

30) Whichof the following is a strength of outdoor as a media choice?

A) Amount of processing time B) Audience involvement
C) Target audience coverage D) Reach
Answer: D

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31) Which of the following is a limitation of outdoor as a media choice?
A) Cost efficiency B) Frequency
C) Media image D) Geographic coverage
Answer: C

32) Which of the following is a strength of transit as a media choice?

A) Creativity for cognitive responses B) Target audience selectivity
C) Scheduling flexibility D) Target audience coverage
Answer: A

33) Which of the following is a limitation of transit as a media choice?

A) Clutter B) Cost efficiency
C) Amount of processing time D) Absolute cost
Answer: A

34) Media buyers might choose to live with a relatively high degree of waste coverage because:
A) it allows for more specific targeting
B) the media employed are likely to be the most effective means of message delivery available
C) repetition is the most effective method for pioneering advertising
D) it best supports a flighting media schedule
Answer: B

35) Underwhat conditions are advertisers more likely to achieve full audience coverage with their
media buy?
A) When the audience is fragmented
B) When they are targeting a small number of customers or potential customers
C) In a high-involvement purchase situation
D) When media coverage reaches people who are not potential buyers or current users
Answer: B

36) The situation

in which media coverage exceeds the targeted audience is called:
A) waste coverage B) excess media expenditure
C) audience fragmentation D) underexposure
Answer: A

37) Nordstrom placed advertising for the launch of their new Toronto stores on mall posters within the
Eaton Centre, Yorkdale Plaza, and Sherway Gardens. These posters were seen by many people apart
from typical Nordstrom customers. This is an example of:
A) excess media expenditure B) media overexposure
C) media underexposure D) audience fragmentation
Answer: B

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38) Tesla's research shows that approximately 65 percent of their target audience subscribes to The
Globe & Mail newspaper. If that is their only media vehicle, they will experience:
A) excess media expenditure
B) media overexposure
C) full market coverage
D) less media coverage than desired (underexposure)
Answer: D

39) helps marketers factor the rate of product usage by geographic area into the decision
process.
A) The ratio of product usage to availability
B) Statistics Canada's population growth analysis
C) The Brand Development Index
D) The Category Development Index
Answer: C

40) Which of the following is true about the Brand Development Index (BDI)?
A) BDI and CDI measure the same consumer behaviours.
B) BDI compares the brand's total sales in a given market area with the percentage of the total
population in that market.
C) BDI measures the ratio of product usage to availability in a particular market.
D) BDI indicates where a brand should maximize promotional spending, given their success in a
particular geographic area.
Answer: B

41) In calculating both the Brand Development Index (BDI) and the Category Development Index
(CDI), a media planner obtains the following results: High BDI and Low CDI. What do these results
imply?
A) Low market share and good market potential
B) Low market share and poor market potential
C) High market share and good market potential
D) High market share and monitor for sales decline
Answer: D

42) In calculating both the Brand Development Index (BDI) and the Category Development Index
(CDI), a media planner obtains the following results: Low BDI and Low CDI. What do these results
imply?
A) High market share and monitor for sales decline
B) High market share and good market potential
C) Low market share and good market potential
D) Low market share and poor market potential
Answer: D

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43) In calculating both the Brand Development Index (BDI) and the Category Development Index
(CDI), a media planner obtains the following results: Low BDI and High CDI. What do these results
imply?
A) High market share; monitor for sales decline
B) Low market share; poor market potential
C) High market share; good market potential
D) Low market share; good market potential
Answer: D

44) Which of the following situations offers the advertiser the least attractive marketing opportunity?
A) Low BDI; high CDI B) High BDI; low CDI
C) High BDI; high CDI D) Low BDI; low CDI
Answer: D

45) Which of the following indices reflects a company with low market share in a given market?
A) Low category development index (CDI) B) High brand development index (BDI)
C) High category development index (CDI) D) Low brand development index (BDI)
Answer: D

46) Which of the following scenarios indicates that the brand is not doing well and it would be
worthwhile to determine the reasons and make some changes?
A) iPhone's share of the growing mobile phone market is at an all-time high.
B) Even though the popularity of Asian fast-food restaurants is on the rise, the Flying Wok has
seen a fifteen percent decline in sales over the past three months.
C) Nestle's Quik has a high market share in a declining powdered flavour market.
D) Just when Stephanie entered the specialty textile flooring market people don't seem to want
shag carpeting anymore.
Answer: B

47) In terms of advertising, scheduling constant advertising without variation is referred to as:
A) geographical weighting B) continuity
C) circulation D) flighting
Answer: B

48) Seasonal products such as Hallowe'en decorations and Valentine flowers would best make use of
which scheduling alternative?
A) Weighted ratings B) Flighting C) Pulsing D) Continuous
Answer: B

49) My product is silk ties, which are purchased at any time of the year, but more often at Christmas and
on Father's day. Given a limited budget, which strategy would likely be the most effective if I
wanted to try to stimulate trial and/or sales?
A) Share B) Continuous C) Pulsing D) Flighting
Answer: C

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50) A product that may be consumed throughout the year, but has seasonal periods where consumption
is higher might best employ a(n) scheduling method.
A) oscillating B) continuous C) pulsing D) flighting
Answer: C

51) Which strategy would be most likely to be used by a marketer of dishwashing detergent?
A) Share growth B) Flighting C) Continuous D) Pulsing
Answer: C

52) Which scheduling method would be inappropriate for the product named?
A) Spring-blooming bulbs continuous B) Accounting services pulsing
C) Soft drinks pulsing D) Snow blower flighting
Answer: A

53) Chrysler would probably wish to pursue a scheduling strategy, while Rossignol Skis
would use a schedule.
A) pulsing; flighting B) continuous; pulsing
C) continuous; continuous D) flighting; pulsing
Answer: A

54) For which of the following products is an advertiser most likely to use continuity scheduling?
A) Swimming pool chemicals B) Wood burning stoves
C) Tickets to a hockey game D) Laundry detergent
Answer: D

55) It is generally felt that consumers should get exposure to the message as close as possible to when
they are going to make the purchase. On the basis of this idea, which would be the most effective
scheduling method for winter boots?
A) Flighting B) Pulsing C) Behavioural D) Continuous
Answer: A

56) is the employment of periods of advertising along with periods of non-advertising.

A) Weighting B) Continuity C) Flighting D) Pulsing
Answer: C

57) For which of the following products is an advertiser most likely to use a flighting schedule?
A) Cake mixes B) Snow tires
C) Shampoo D) Newspaper subscriptions
Answer: B

58) When advertising scheduling involves constant advertising with heavier efforts being made at
certain times, a(n) schedule is being employed.
A) weighting B) intermittent C) pulsing D) flighting
Answer: C

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59) Recreationvehicles (RVs) advertise throughout the year but typically advertise more heavily June
and in September. This pattern represents which scheduling method?
A) Continuity B) Pulsing C) Oscillating D) Flighting
Answer: B

60) Disney World advertises itself as a vacation spot throughout the year, but it advertises more heavily
during the summer months and during the Christmas season when most people are vacationing. This
is an example of scheduling.
A) pulsing B) flighting
C) continuity D) geographical weighting
Answer: A

61) Which of the following is NOT an advantage inherent in the flighting method of schedule
advertising?
A) Extra strength during "on" periods
B) Cost efficiency
C) Continuous target coverage
D) Ability to include more than one advertising vehicle
Answer: C

62) Which of the following media strategies is suitable for a lesser-known product with a target
audience concentrated in a small area in Canada?
A) One that balances reach and frequency
B) One that emphasizes reach rather than frequency
C) One that emphasizes frequency rather than reach
D) One that uses a high cost per thousand approach
Answer: C

63) New brands need a very high level of , since the objective is to make all potential buyers
aware of the brand.
A) reach B) CPM C) GRPs D) frequency
Answer: A

64) Given
that a message is complex as far as comprehension is concerned, the strategy should be to
maximize at the expense of .
A) Reach; frequency B) Frequency; reach
C) Reach; GRPs D) Frequency; CPM
Answer: B

65) The the brand share, the the frequency level required.
A) lower; higher B) higher; higher C) higher; lower D) lower; lower
Answer: C

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66) A company has a limited promotional budget. The target market is highly concentrated and has
already been shown to have high awareness and interest in the project. The goal of the promotional
strategy should be to:
A) increase frequency B) maximize reach
C) sacrifice frequency for reach D) maximize coverage
Answer: A

67) A company with a substantial advertising budget with little or no awareness in the target market
should:
A) sacrifice reach for continuity B) maximize reach
C) maximize coverage D) maximize frequency and sacrifice reach
Answer: B

68) is the number of target audience individuals exposed at least once to media vehicle in a
specific time period.
A) Reach B) Frequency C) Continuity D) Coverage
Answer: A

69) Unduplicated reach is:

A) total reach less duplicated reach
B) average reach multiplied by average frequency
C) total market coverage less duplicated reach
D) duplicated reach plus total reach
Answer: A

70) To calculate gross ratings points (GRPs), you will need to:
A) divide average frequency by costs B) divide reach times frequency by costs
C) multiply reach times frequency D) multiply CPM times average frequency
Answer: C

71) is a summary measure that combines reach and frequency.

A) Gross ratings points (GRPs) B) The Category Development Index (CDI)
C) The Brand Development Index (BDI) D) Target ratings points (TRPs)
Answer: A

72) The concept of is based on the assumption that one exposure to an ad may not be enough
to convey the desired message.
A) GRPs B) average reach
C) average frequency D) effective reach
Answer: D

73) No one knows the exact number of necessary for an ad to make an impact, although
advertisers have settled on as the minimum.
A) reach; two B) exposures; three C) GRPs; ten D) frequency; one
Answer: B

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74) is the number of times the target audience reached by a media vehicle is exposed to the
vehicle over a specified period of time.
A) Effective frequency B) Average reach
C) Unduplicated reach D) Average frequency
Answer: D

75) Each of the following statements about frequency is true EXCEPT:

A) The lower the brand's share of voice, the higher the frequency required.
B) New brands generally require higher frequency levels.
C) The more unique the message, the higher the frequency level required.
D) Continuous scheduling requires less frequency than does pulsing or flighting.
Answer: C

76) Which of the following is NOT relevant to the vehicle source effect?
A) If the advertising message is relevant and compelling to the target audience, the choice of
media vehicle is less important.
B) Certain media vehicles enhance the message because they create a mood that carries over to the
communication.
C) People perceive ads differently depending on their context.
D) Media planners consider the most suitable media class and media vehicle for the target
audience and the message.
Answer: A

77) To evaluate the cost of print media, is used.

A)relative; CPRP B) absolute; CPM C) absolute; CPRP D) relative; CPM
Answer: D

78) CPM is an expression of for various media vehicles.

A) compared reach B) mode C) relative cost D) absolute cost
Answer: C

79) The estimated number of people who read the magazine without buying it is called:
A) overexposure B) unduplicated reach
C) pass-along rate D) absolute cost
Answer: C

80) A major problem with the use of cost per thousand figures is:
A) determining time spent reading the magazine
B) determining pass-along rates
C) determining an efficient way to estimate the effects of sweep periods
D) calculating cost estimates efficiently
Answer: B

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81) If the circulation of the National Post is 400,000 readers, and the advertising cost per page is
$50,000, the CPM is:
A) $0.125 B) $8 C) $0.008 D) $125
Answer: D

82) Old Navy is planning a new print campaign. Which of the following media vehicles represents the
most attractive CPM?
A) The cost of a single-page ad in Metro Toronto newspaper (circulation - 205,000) is $22,500.
B) The cost of a single-page ad in Today's Parent Magazine (circulation - 116,000) is $22,000.
C) The cost of a single-page ad in Canadian Living Magazine (circulation - 425,000) is $53,000.
D) The cost of a single-page ad in The Toronto Star (circulation - 309,000) is $58,000.
Answer: A

83) The comparative cost figure used for broadcast media is:
A) the same as for print media, cost per thousand (CPM)
B) cost per ratings point (CPRP)
C) gross ratings point (GRP)
D) cost per point of contact (CPPC)
Answer: B

84) The media planning process concludes with the , which summarizes many of the media
strategy and media tactics decisions.
A) CPM B) blocking chart C) advertising plan D) marketing plan
Answer: B

85) In the marginal analysis approach to media budgeting, all of the following should be considered
EXCEPT:
A) gross margin net worth
B) advertising expenditures and other variable costs
C) fixed costs of advertising
D) sales
Answer: A

86) The S-shaped response function implies that:

A) sales effects will follow the microeconomic law of diminishing returns
B) sales will immediately increase then decrease
C) sales will immediately decrease then increase
D) initial advertising expenditures will have little impact on sales
Answer: D

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87) The two models that are commonly used to explain the relationship between advertising and sales
are the:
A) S-shaped response function and the concave-upward function
B) marginal utility function and the S-shaped demand function
C) S-shaped demand function and the convex-downward function
D) concave-downward function and the S-shaped response function
Answer: D

88) The function is based on the microeconomic law of diminishing returns.

A) concave-downward B) marginal utility
C) concave-upward D) S-shaped demand
Answer: A

89) According to the S-shaped response curve:

A) initial outlays of the advertising budget have a substantial impact on sales
B) sales are not directly related to the size of the advertising budget
C) the carryover effect is especially true for low-priced, frequently purchased consumer products
D) the effects of advertising quickly begin to diminish
Answer: B

90) Amarketing firm decides to purchase media time in an attempt to sell its new product. After
purchasing approximately $1 million of time, it has noticed no impact on the sales of the product.
However, at $3 million, a substantial increase is shown. This might best be explained by:
A) an S-shaped response B) competitive parity
C) the objective and task method D) arbitrary allocation
Answer: A

91) The S-shaped response curve suggests that:

A) very low spending levels will not work
B) advertising effectiveness will not be related to spending
C) advertising effectiveness will vary according to spending levels
D) sales and spending on advertising are not directly related
Answer: C

92) Asa result of , large advertisers can maintain advertising shares that are smaller than their
market shares because they get lower advertising rates and accrue the advantages of advertising
several products jointly.
A) a concave-downward response B) differential advertising advantages
C) competitive parity D) economies of scale
Answer: D

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93) When executives determine the budget amounts to be allocated for each department's advertising
expenditures, a approach is being used.
A) bottom-up B) top-down
C) marginal contribution D) contribution forecast
Answer: B

94) All
of the following are considered top-down approaches to determining budgets EXCEPT:
A) arbitrary allocation B) the affordable method
C) the percentage of sales method D) the objective and task method
Answer: D

95) Which of the following is NOT a top-down approach to budget setting?

A) Payout planning B) Return on investment
C) Competitive parity D) The affordable method
Answer: A

96) The method of budget setting consists of three steps: (1) defining the communication
objectives, (2) determining the strategies and tasks to attain them, and (3) estimating the costs
associated with performance of these strategies and tasks.
A) return on investment B) percentage of sales
C) objective and task D) arbitrary allocation
Answer: C

97) Which top-down budgeting method is being employed when expenditures are allocated by assigning
a budget based on gut feelings?
A) Arbitrary allocation B) Percentage of sales
C) Payout planning D) Affordable method
Answer: A

98) The most commonly utilized method of budget determination by large firms is:
A) the affordable method B) objective and task
C) percentage of sales D) competitive parity
Answer: C

99) To set an advertising budget, Entree cologne first examines competitors' advertising to sales ratios
published in trade magazines, and then allocates a percentage of sales dollars to the advertising
effort. Which two budgeting methods are being employed?
A) Payout planning and percentage of sales B) Competitive parity and percentage of sales
C) Competitive parity and payout planning D) Percentage of sales and objective and task
Answer: B

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100) Which of the following budgeting procedures would be used if a firm wanted a method that is
simple to understand and financially safe?
A) Objective and task B) Marginal analysis
C) Competitive parity D) Percentage of sales
Answer: D

101) The method is difficult to employ for a new company if no sales history is available, there
is no basis of establishing the budget.
A) objective and task B) ROI
C) affordable D) percentage of sales
Answer: D

102) The major problem with the budgeting method is a reversal of the cause and effect
relationship.
A) competitive parity B) percentage of sales
C) objective and task method D) rapidly diminishing returns
Answer: B

103) The method budgetary allocation method is designed to promote stability and minimize
marketing warfare as well as taking advantage of the collective wisdom of the industry.
A) competitive parity B) objective and task
C) arbitrary allocation D) percentage of sales
Answer: A

104) According to the competitive parity budgeting method, the firm:

A) spends as much as it can
B) spends the same total amount as its major competitors spend
C) allocates some portion of planned sales for the period to advertising
D) matches the competition's percentage-of-sales expenditures
Answer: D

105) The method of budgeting is being employed when expenditures are allocated according
information gathered to determine industry averages for advertising. The budget is set to maintain a
level consistent with industry spending.
A) objective and task B) return on investment
C) percentage of sales D) competitive parity
Answer: D

106) The method of budgeting is being employed when expenditures are allocated after an
experienced marketing department manager responds to a new employee's question, "How was the
ad budget established in years past?" by saying, "The same way it's always been done. I just have an
instinct for how much should be budgeted where."
A) competitive parity B) percentage of sales
C) arbitrary allocation D) ROI
Answer: C

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107) The method of budgeting is being employed when expenditures are allocated by looking
at the revenue generated from sales of the product during one year. The information gathered from
this examination is used to determine the next year's dollar amounts.
A) arbitrary allocation B) payout planning
C) return on investment D) percentage of sales
Answer: D

108) In which of the following methods of budget determination is advertising considered an investment,
similar to plant and equipment?
A) Objective and task B) Percentage of sales
C) Payout planning D) ROI
Answer: D

109) Defining the communications objectives to be accomplished and estimating the costs associated
with the performance of determined strategies and tasks are steps in the method of
budgeting.
A) objective and task B) competitive parity
C) payout planning D) return on investment
Answer: A

110) The major advantage of the method is that the budget is derived by the objectives to be
attained.
A) percentage of sales B) objective and task
C) ROI D) competitive parity
Answer: B

111) All of the following are components of the objective and task method EXCEPT:
A) a re-evaluation of objectives B) monitoring
C) estimation of required expenditures D) determination of competitor's expenditures
Answer: D

112) is a method for allocating budgets designed to determine the investment value of the
advertising appropriation.
A) Payout planning B) Objective and task
C) Percent of sales method D) Arbitrary allocation
Answer: A

113) Which of the following statements provides a good rule of thumb for setting the advertising budget
for a new product?
A) Its advertising budget should be 10 percent greater than the average budget planned for the
entire payout period.
B) Its advertising budget should be double that needed to maintain the desired market share.
C) Its advertising budget should be equal to that of the largest shareholder in the market.
D) Its advertising budget should be as much as the firm can afford.
Answer: B

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114) The objective and task method is most difficult to utilize when:
A) the product to be promoted is new to the market
B) the product to be promoted is a cash cow
C) the product to be promoted is intangible and in the maturity stage of its product life cycle
D) a service is being promoted
Answer: A

115) Which of the following statements about the effects of the size of the market on advertising
spending is NOT true?
A) Excessive advertising expenditures in a small market will lead to wasted coverage.
B) Audience fragmentation is evident in large markets, therefore advertisers must spend more to
reach their target.
C) It is less expensive to reach the target audience in a large market, due to economies of scale.
D) High growth potential is more important than the actual size of the market.
Answer: C

116) In a review of the literature on how allocation decisions are made between advertising and sales
promotion, it was concluded that factors play an important role in determining how
communication dollars are spent.
A) organizational B) political C) psychological D) economic
Answer: A

117) As a result of economies of scale, smaller advertisers:

A) can maintain advertising shares that are smaller than their market shares
B) are likely to enjoy more favourable advertising time and space than large advertisers
C) get higher advertising rates than large advertisers
D) have declining average costs of product
Answer: C

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Answer Key
Testname: UNTITLED10

1) B
2) A
3) A
4) B
5) C
6) A
7) C
8) C
9) A
10) D
11) B
12) B
13) C
14) C
15) A
16) A
17) A
18) B
19) B
20) A
21) D
22) D
23) A
24) D
25) B
26) C
27) C
28) D
29) B
30) D
31) C
32) A
33) A
34) B
35) B
36) A
37) B
38) D
39) C
40) B
41) D
42) D
43) D
44) D
45) D
46) B
47) B
48) B
49) C
50) C

18
Answer Key
Testname: UNTITLED10

51) C
52) A
53) A
54) D
55) A
56) C
57) B
58) C
59) B
60) A
61) C
62) C
63) A
64) B
65) C
66) A
67) B
68) A
69) A
70) C
71) A
72) D
73) B
74) D
75) C
76) A
77) D
78) C
79) C
80) B
81) D
82) A
83) B
84) B
85) A
86) D
87) D
88) A
89) B
90) A
91) C
92) D
93) B
94) D
95) A
96) C
97) A
98) C
99) B
100) D

19
Answer Key
Testname: UNTITLED10

101) D
102) B
103) A
104) D
105) D
106) C
107) D
108) D
109) A
110) B
111) D
112) A
113) B
114) A
115) C
116) A
117) C

20