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Global Marketing, 10e (Green/Keegan)

Chapter 13 Global Marketing Communications Decisions I: Advertising and Public Relations

1) Volkswagen's portfolio of brands does not include:

A) Audi.
B) Bentley.
C) Lamborghini.
D) Porsche.
E) no correct answer
Answer: B
Difficulty: 2: Moderate
Chapter LO: 13.1: Define global advertising and identify the top-ranked companies in terms of
worldwide ad spending.
AACSB: Application of knowledge

2) As companies recognize and embrace new concepts such as the globalization of "the coffee
culture," the potential for effective global advertising:
A) decreases.
B) increases.
C) remains the same.
D) becomes evident.
E) is ignored.
Answer: B
Difficulty: 2: Moderate
Chapter LO: 13.1: Define global advertising and identify the top-ranked companies in terms of
worldwide ad spending.
AACSB: Application of knowledge

3) Advertising, public relations, and other forms of communication are critical tools in the
marketing program and reflect the ________ (P) of the marketing mix.
A) Product
B) Promotion
C) Price
D) Place
E) Process
Answer: B
Difficulty: 1: Easy
Chapter LO: 13.1: Define global advertising and identify the top-ranked companies in terms of
worldwide ad spending.
AACSB: Application of knowledge

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4) A ________ company possesses a critical marketing advantage with respect to marketing

communications.
A) domestic
B) local
C) global
D) glocal
E) multinational
Answer: C
Difficulty: 2: Moderate
Chapter LO: 13.1: Define global advertising and identify the top-ranked companies in terms of
worldwide ad spending.
AACSB: Application of knowledge

5) Which of the following product category/company pairings best illustrates the concept of
"product cultures"?
A) earth-moving equipment/Caterpillar
B) personal hygiene/Procter & Gamble
C) coffee bars/Starbucks
D) batteries/Duracell
E) automobiles/Ford
Answer: C
Difficulty: 2: Moderate
Chapter LO: 13.1: Define global advertising and identify the top-ranked companies in terms of
worldwide ad spending.
AACSB: Application of knowledge

6) Because advertising is often designed to add ________ value to a product or brand, it plays a
more important communications role in marketing consumer products than it does for marketing
industrial products.
A) social
B) monetary
C) cultural
D) psychological
E) emotional
Answer: D
Difficulty: 2: Moderate
Chapter LO: 13.1: Define global advertising and identify the top-ranked companies in terms of
worldwide ad spending.
AACSB: Application of knowledge

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7) Landor Associates, a company specializing in brand identity and design, recently determined
that ________ has the number one brand-awareness and esteem position in the United States,
number two in Japan, and number six in Europe.
A) McDonald's
B) Toyota
C) Sony
D) Pepsi
E) Coke
Answer: E
Difficulty: 2: Moderate
Chapter LO: 13.1: Define global advertising and identify the top-ranked companies in terms of
worldwide ad spending.
AACSB: Application of knowledge

8) Which company ranks number one in terms of worldwide ad spending for 2016?
A) General Motors
B) Philip Morris
C) Unilever
D) Procter & Gamble
E) Coca-Cola
Answer: D
Difficulty: 1: Easy
Chapter LO: 13.1: Define global advertising and identify the top-ranked companies in terms of
worldwide ad spending.
AACSB: Application of knowledge

9) Which company ranked number one in terms of ad spending in Europe in 2016?

A) General Motors
B) Philip Morris
C) Nestlé
D) Procter & Gamble
E) Coca-Cola
Answer: C
Difficulty: 1: Easy
Chapter LO: 13.1: Define global advertising and identify the top-ranked companies in terms of
worldwide ad spending.
AACSB: Application of knowledge

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10) What do Unilever and Procter & Gamble have in common?

A) Revenues at both companies have been hurt by regulations concerning tobacco advertising
and promotion.
B) Both companies utilize extension approaches to advertising.
C) Both companies rank high in terms of non-U.S. ad spending.
D) Both companies use a great deal of corporate advertising.
E) Both companies use the same advertising agency.
Answer: C
Difficulty: 2: Moderate
Chapter LO: 13.1: Define global advertising and identify the top-ranked companies in terms of
worldwide ad spending.
AACSB: Application of knowledge

11) ________ is the top advertiser in China with 25 percent of the company's measured media
spending budgeted for the Asia-Pacific region.
A) Samsung
B) Nestle
C) Unilever
D) L'Oreal
E) Proctor & Gamble
Answer: E
Difficulty: 2: Moderate
Chapter LO: 13.1: Define global advertising and identify the top-ranked companies in terms of
worldwide ad spending.
AACSB: Application of knowledge

12) A company's efforts to effectively communicate with customers is very important. All of the
following are major difficulties which can compromise an organization's attempt to communicate
with customers except:
A) the message does not reach the intended recipient.
B) the message reaches the intended recipient but is misunderstood.
C) the message reaches the intended recipient and is understood, but the recipient may fail to
take action.
D) the message is distorted by noise.
E) the message is only in one language.
Answer: E
Difficulty: 2: Moderate
Chapter LO: 13.1: Define global advertising and identify the top-ranked companies in terms of
worldwide ad spending.
AACSB: Application of knowledge

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13) Competitive advertising may impair the effectiveness of the message due to the fact that it
may:
A) not reach the intended recipient.
B) reach the intended recipient but is misunderstood.
C) reach the intended recipient and is understood, but the recipient may fail to take action.
D) get distorted by noise.
E) only be in one language.
Answer: D
Difficulty: 2: Moderate
Chapter LO: 13.1: Define global advertising and identify the top-ranked companies in terms of
worldwide ad spending.
AACSB: Application of knowledge

14) A technique, which is analogous to the concept of global product platforms is:
A) "pattern advertising."
B) "template advertising."
C) "cookie-cutter advertising."
D) "model advertising."
E) "stereotype advertising."
Answer: A
Difficulty: 2: Moderate
Chapter LO: 13.1: Define global advertising and identify the top-ranked companies in terms of
worldwide ad spending.
AACSB: Application of knowledge

15) ________ is the technique global marketers use to describe ads with common design
elements into which localized elements are inserted for individual country markets.
A) "Pattern advertising"
B) "Template advertising"
C) "Cookie-cutter advertising"
D) "Model advertising"
E) "Stereotype advertising"
Answer: A
Difficulty: 2: Moderate
Chapter LO: 13.1: Define global advertising and identify the top-ranked companies in terms of
worldwide ad spending.
AACSB: Application of knowledge

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16) In the language of global marketing, ________ is the phrase used to describe advertising that
represents a middle ground between 100% standardization and 100% localization.
A) "stereotype advertising"
B) "template advertising"
C) "cookie-cutter advertising"
D) "compromise advertising"
E) "pattern advertising"
Answer: E
Difficulty: 2: Moderate
Chapter LO: 13.1: Define global advertising and identify the top-ranked companies in terms of
worldwide ad spending.
AACSB: Application of knowledge

17) When the subheads and body copy of an advertisement are localized, not simply translated, it
is an example of:
A) local advertising.
B) global advertising.
C) pattern advertising.
D) advocacy advertising.
E) stereotype advertising.
Answer: C
Difficulty: 2: Moderate
Chapter LO: 13.1: Define global advertising and identify the top-ranked companies in terms of
worldwide ad spending.
AACSB: Application of knowledge

18) Standardized print campaigns can be used for all of the following except:
A) visual appeal.
B) industrial products.
C) high-tech consumer products.
D) voiceovers TV commercials.
E) stereotype advertising.
Answer: E
Difficulty: 2: Moderate
Chapter LO: 13.1: Define global advertising and identify the top-ranked companies in terms of
worldwide ad spending.
AACSB: Application of knowledge

19) The elements of the promotion mix are advertising, public relations, personal selling,
process, and sales promotion.
Answer: FALSE
Difficulty: 1: Easy
Chapter LO: 13.1: Define global advertising and identify the top-ranked companies in terms of
worldwide ad spending.
AACSB: Application of knowledge

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20) According to data published by Advertising Age in 2016, Proctor & Gamble ranks #2 in
worldwide advertisement spending.
Answer: FALSE
Difficulty: 1: Easy
Chapter LO: 13.1: Define global advertising and identify the top-ranked companies in terms of
worldwide ad spending.
AACSB: Application of knowledge

21) The "extension versus adaptation" debate is essentially a debate over "standardized versus
localized" advertising.
Answer: TRUE
Difficulty: 1: Easy
Chapter LO: 13.1: Define global advertising and identify the top-ranked companies in terms of
worldwide ad spending.
AACSB: Application of knowledge

22) To counteract the negative perception and publicity about Coke, the company launched its
own print ad campaign that featured smaller-format cans and bottles.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 13.1: Define global advertising and identify the top-ranked companies in terms of
worldwide ad spending.
AACSB: Application of knowledge

23) Recently, global companies have embraced a technique known as "pattern advertising"
which is analogous to the concept of global product platforms.
Answer: TRUE
Difficulty: 1: Easy
Chapter LO: 13.1: Define global advertising and identify the top-ranked companies in terms of
worldwide ad spending.
AACSB: Application of knowledge

24) Ads in a European print campaign for Boeing shared basic design elements, but the copy and
the visual elements were localized on a country-by-country basis. This is an example of pattern
advertising.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 13.1: Define global advertising and identify the top-ranked companies in terms of
worldwide ad spending.
AACSB: Application of knowledge

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25) Standardized print campaigns can be used for industrial products or for technology-oriented
consumer products such as the Apple iPhone and the iPad.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 13.1: Define global advertising and identify the top-ranked companies in terms of
worldwide ad spending.
AACSB: Application of knowledge

26) Google and Facebook now account for more than three-fourths of new online ad spending,
and Snapchat is gaining traction as an advertising forum.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 13.1: Define global advertising and identify the top-ranked companies in terms of
worldwide ad spending.
AACSB: Application of knowledge

27) In an effort to push back against social media platforms where fake news has proliferated,
more than 100 magazines participated in an advertising campaign designed to raise awareness
for the credible and trustworthy editorial environment that print media provide.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 13.1: Define global advertising and identify the top-ranked companies in terms of
worldwide ad spending.
AACSB: Application of knowledge

28) High-end U.S. grocery chain Whole Foods Market does not stock Coke in its stores since its
mission is to bring healthy food to the world.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 13.1: Define global advertising and identify the top-ranked companies in terms of
worldwide ad spending.
AACSB: Application of knowledge

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32) According to data published by Advertising Age (2016), which of the following is the largest
global advertising organization based on worldwide revenues?
A) WPP Group
B) Interpublic Group
C) Omnicom Group
D) Dentsu Inc.
E) Havas
Answer: A
Difficulty: 1: Easy
Chapter LO: 13.2: Explain the structure of the advertising industry and describe the difference
between agency holding companies and individual agency brands.
AACSB: Application of knowledge

33) According to data published by Advertising Age (2017), which of the following is the largest
global advertising agency network based on worldwide revenues?
A) Young & Rubicam Group (WPP)
B) Accenture
C) Deloitte Digital
D) Dentsu Inc.
E) PwC Digital
Answer: B
Difficulty: 1: Easy
Chapter LO: 13.2: Explain the structure of the advertising industry and describe the difference
between agency holding companies and individual agency brands.
AACSB: Application of knowledge

34) In selecting an advertising agency, all of the following issues should be taken into
consideration except:
A) company organization.
B) national responsiveness.
C) area coverage.
D) buyer perception.
E) franchise or company owned status.
Answer: E
Difficulty: 2: Moderate
Chapter LO: 13.2: Explain the structure of the advertising industry and describe the difference
between agency holding companies and individual agency brands.
AACSB: Application of knowledge

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35) The kind of brand awareness a company wants to project is identified by:
A) area coverage.
B) buyer perception.
C) company organization.
D) national responsiveness.
E) in-house marketing.
Answer: B
Difficulty: 3: Challenging
Chapter LO: 13.2: Explain the structure of the advertising industry and describe the difference
between agency holding companies and individual agency brands.
AACSB: Analytical thinking

36) McDonald's global marketing chief staged a competition that included agencies from all over
the world. The "I'm lovin' it" tagline was devised by a(n) ________ agency.
A) Egyptian
B) American
C) Turkish
D) Chinese
E) German
Answer: E
Difficulty: 1: Easy
Chapter LO: 13.2: Explain the structure of the advertising industry and describe the difference
between agency holding companies and individual agency brands.
AACSB: Analytical thinking

37) The advantages of using in-house marketing and advertising staff include all of the following
except:
A) greater control.
B) superior product.
C) brand knowledge.
D) lower cost.
E) global accounts.
Answer: E
Difficulty: 1: Easy
Chapter LO: 13.2: Explain the structure of the advertising industry and describe the difference
between agency holding companies and individual agency brands.
AACSB: Analytical thinking

12
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38) The country which has a massive potential for cigarette manufacturers is:
A) Egypt.
B) Spain.
C) Turkey.
D) China.
E) Vietnam.
Answer: D
Difficulty: 1: Easy
Chapter LO: 13.2: Explain the structure of the advertising industry and describe the difference
between agency holding companies and individual agency brands.
AACSB: Analytical thinking

39) According to the worldwide revenue figures for 2016, Omnicom Group is the world's largest
advertising organization.
Answer: FALSE
Difficulty: 1: Easy
Chapter LO: 13.2: Explain the structure of the advertising industry and describe the difference
between agency holding companies and individual agency brands.
AACSB: Application of knowledge

40) Most of the agency brands identified among the network agencies are full-service agencies
involved in creating advertising as well as other services, such as market research, media buying,
and direct marketing.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 13.2: Explain the structure of the advertising industry and describe the difference
between agency holding companies and individual agency brands.
AACSB: Application of knowledge

41) Despite an unmistakable trend toward using global advertising agencies to support global
marketing efforts, companies with geocentric orientations tend to adapt to the global market
requirements and select the best agency or agencies accordingly.
Answer: TRUE
Difficulty: 3: Challenging
Chapter LO: 13.2: Explain the structure of the advertising industry and describe the difference
between agency holding companies and individual agency brands.
AACSB: Application of knowledge

42) Western advertising agencies still find markets such as China and Japan to be very complex,
as Asian agencies find it just as difficult to establish local agency presence in western markets.
Answer: TRUE
Difficulty: 3: Challenging
Chapter LO: 13.2: Explain the structure of the advertising industry and describe the difference
between agency holding companies and individual agency brands.
AACSB: Application of knowledge

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43) Companies that are centralized typically allow managers at the local subsidiary to make ad
agency selection decisions.
Answer: FALSE
Difficulty: 2: Moderate
Chapter LO: 13.2: Explain the structure of the advertising industry and describe the difference
between agency holding companies and individual agency brands.
AACSB: Application of knowledge

44) In December 2012, Australia implemented some of the world's most stringent antismoking
regulations which included a ban on brand logos and prominent placement of graphic
photographic images of smoking-related illnesses and disfigurement on cigarette packs.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 13.2: Explain the structure of the advertising industry and describe the difference
between agency holding companies and individual agency brands.
AACSB: Application of knowledge

45) Pinterest began selling ads in 2015. In 2017, as part of an effort to differentiate the company
from Facebook, Google, Instagram, Snapchat, and Twitter, Silbermann's team launched its first
print brand campaign.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 13.2: Explain the structure of the advertising industry and describe the difference
between agency holding companies and individual agency brands.
AACSB: Application of knowledge

46) In 2018, Heinz was still experimenting with the global/local taste trade-off: Managers had to
decide whether to introduce a blend of mayonnaise and ketchup, to Middle Eastern consumers.
Answer: FALSE
Difficulty: 2: Moderate
Chapter LO: 13.2: Explain the structure of the advertising industry and describe the difference
between agency holding companies and individual agency brands.
AACSB: Application of knowledge

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47) What issues must be considered in selecting an advertising agency for global advertising?
Answer: Care should be taken in selecting advertising agencies, particularly when entering a
new market in a foreign country. The following issues should be considered: (a) company
organization—companies that are decentralized may want to leave the choice to the local
subsidiary; (b) national responsiveness—the global agency should be familiar with the local
culture and buying habits in a particular country. If not, a local agency might be more suitable;
(c) area coverage—does the agency cover the areas, regions, or countries targeted; and (d) buyer
perception—what kind of brand awareness does the company want to project? For example, if a
product needs a strong local identification, it would be best to select a national agency. Despite
the trend toward using global agencies to support global marketing efforts, companies with
geocentric orientations will adapt to the global market requirements and select the best agency or
agencies accordingly.
Difficulty: 2: Moderate
Chapter LO: 13.2: Explain the structure of the advertising industry and describe the difference
between agency holding companies and individual agency brands.
AACSB: Analytical thinking

48) Some of the world's most memorable advertising campaigns have achieved success because
they originate from an idea that is so big that the campaign offers opportunities for a seemingly
unlimited number of new executions. Such a campaign is said to have:
A) "life."
B) "legs."
C) "love."
D) "fun."
E) "toes."
Answer: B
Difficulty: 2: Moderate
Chapter LO: 13.3: Identify key ad agency personnel and describe their respective roles in
creating global advertising.
AACSB: Application of knowledge

49) The advertising promise that captures the reason that people buy products is known as:
A) creative strategy.
B) the advertising appeal.
C) the selling proposition.
D) the creative execution.
E) the big idea.
Answer: C
Difficulty: 2: Moderate
Chapter LO: 13.3: Identify key ad agency personnel and describe their respective roles in
creating global advertising.
AACSB: Application of knowledge

15
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50) In many parts of the world, McDonald's utilizes TV advertising that shows parents
interacting with their happy children. Such advertising utilizes:
A) rational appeals.
B) emotional appeals.
C) SRC appeals.
D) melodramatic appeals.
E) localized appeal.
Answer: B
Difficulty: 3: Challenging
Chapter LO: 13.3: Identify key ad agency personnel and describe their respective roles in
creating global advertising.
AACSB: Application of knowledge

51) Ads that tickle the funny bone of the intended audience and evoke responses that will direct
purchase behavior are based on:
A) rational appeals.
B) emotional appeals.
C) SRC appeals.
D) melodramatic appeals.
E) localized appeal.
Answer: B
Difficulty: 2: Moderate
Chapter LO: 13.3: Identify key ad agency personnel and describe their respective roles in
creating global advertising.
AACSB: Application of knowledge

52) Ads based on a(n)________ appeal depend on logic and speak to the audience's intellect.
A) rational
B) advertising
C) emotional
D) localized
E) melodramatic
Answer: A
Difficulty: 2: Moderate
Chapter LO: 13.3: Identify key ad agency personnel and describe their respective roles in
creating global advertising.
AACSB: Application of knowledge

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53) The choice between demonstration, slice of life, straight sell, and other advertising forms is a
matter of the:
A) creative strategy.
B) advertising appeal.
C) selling proposition.
D) creative execution.
E) big idea.
Answer: D
Difficulty: 3: Challenging
Chapter LO: 13.3: Identify key ad agency personnel and describe their respective roles in
creating global advertising.
AACSB: Application of knowledge

54) A recent global campaign for IKEA, the Swedish home furnishings retailer, positioned
houses as homes as a place for love, memories, and laughter. This is a classic example of:
A) emotional appeal.
B) rational appeal.
C) selling proposition.
D) advertising appeal.
E) creative appeal.
Answer: A
Difficulty: 2: Moderate
Chapter LO: 13.3: Identify key ad agency personnel and describe their respective roles in
creating global advertising.
AACSB: Application of knowledge

55) In advertising, a(n) ________ is an agent who chooses graphics, pictures, type styles, and
other visual elements and has general responsibility for the overall look of an advertisement.
A) art director
B) copywriter
C) IMC manager
D) PR practitioner
E) stylist
Answer: A
Difficulty: 2: Moderate
Chapter LO: 13.3: Identify key ad agency personnel and describe their respective roles in
creating global advertising.
AACSB: Application of knowledge

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56) The words that are the spoken or written communication elements in advertisements are
known as:
A) copy.
B) manuscript.
C) idea.
D) script.
E) writings.
Answer: A
Difficulty: 2: Moderate
Chapter LO: 13.3: Identify key ad agency personnel and describe their respective roles in
creating global advertising.
AACSB: Application of knowledge

57) In southern China, McDonald's is careful not to advertise prices with multiple occurrences of
the number 4 because:
A) prices ending in odd numbers are preferred in China.
B) there is no number four in the Chinese language.
C) the "word" four is pronounced similar to the word "death" in Cantonese.
D) multiple occurrences are considered as unlucky in China.
E) prices are not included on menus in China.
Answer: C
Difficulty: 2: Moderate
Chapter LO: 13.3: Identify key ad agency personnel and describe their respective roles in
creating global advertising.
AACSB: Application of knowledge

58) Which promotional mix element is most closely associated with activities designed to foster
goodwill and understanding with various constituents both inside and outside the company?
A) personal selling
B) advertising
C) public relations
D) sales promotion
E) publicity
Answer: C
Difficulty: 2: Moderate
Chapter LO: 13.3: Identify key ad agency personnel and describe their respective roles in
creating global advertising.
AACSB: Application of knowledge

59) Lynch agency developed for Subaru. "Love—it's what makes a Subaru, a Subaru," omits any
reference to the auto brand's most salient functional attribute—namely, its dependable
Symmetrical AWD (all-wheel drive) system.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 13.3: Identify key ad agency personnel and describe their respective roles in
creating global advertising.
AACSB: Application of knowledge
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60) Some of the world's most memorable advertising campaigns originate from big ideas with an
unlimited number of new executions. Such a campaign is said to have legs.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 13.3: Identify key ad agency personnel and describe their respective roles in
creating global advertising.
AACSB: Application of knowledge

61) When creating global advertising, it is important to remember that the "advertising appeal"
should be based on the agency's understanding of the target audience's buying motives.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 13.3: Identify key ad agency personnel and describe their respective roles in
creating global advertising.
AACSB: Application of knowledge

62) The way a product's appeal or proposition is presented is called the "selling proposition."
Answer: FALSE
Difficulty: 2: Moderate
Chapter LO: 13.3: Identify key ad agency personnel and describe their respective roles in
creating global advertising.
AACSB: Application of knowledge

63) The challenge of encoding and decoding slogans and taglines in different national and
cultural contexts can lead to unintentional errors.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 13.3: Identify key ad agency personnel and describe their respective roles in
creating global advertising.
AACSB: Application of knowledge

64) In China, McDonald's is careful not to advertise prices with multiple occurrences of the
number 4 since, in Cantonese, the pronunciation of the word "four" sounds similar to that of the
word "death."
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 13.3: Identify key ad agency personnel and describe their respective roles in
creating global advertising.
AACSB: Application of knowledge

65) In Japan, intimate scenes between men and women are in bad taste, and in Saudi Arabia,
such ads are outlawed.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 13.3: Identify key ad agency personnel and describe their respective roles in
creating global advertising.
AACSB: Application of knowledge
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66) When photographing a couple entering a restaurant or theater, women should be shown
preceding the man in Germany and France.
Answer: FALSE
Difficulty: 2: Moderate
Chapter LO: 13.3: Identify key ad agency personnel and describe their respective roles in
creating global advertising.
AACSB: Application of knowledge

67) Partial nudity and same-sex couples are seldom seen in ads in Latin America and Europe.
Answer: FALSE
Difficulty: 2: Moderate
Chapter LO: 13.3: Identify key ad agency personnel and describe their respective roles in
creating global advertising.
AACSB: Application of knowledge

68) In Greece, ads show ketchup pouring over pasta, eggs, and cuts of meat. This is an example
which shows that ketchup is the product category most likely to elicit cultural sensitivity.
Answer: FALSE
Difficulty: 3: Challenging
Chapter LO: 13.3: Identify key ad agency personnel and describe their respective roles in
creating global advertising.
AACSB: Application of knowledge

20
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72) Much academic research has been devoted to the impact of culture on advertising.
Researcher Tamotsu Kishii identified seven characteristics that distinguish between Japanese and
American creative strategy. Briefly describe those characteristics.
Answer: The seven characteristics outlined by researcher Tamotsu Kishii show how Japanese
ads differ from the American ads which can be summarized as follows: (1) indirect forms of
expression are used in Japan where many television ads do not mention what is desirable and let
the audience judge for themselves; (2) there is often little relationship between advantages
content and the advertised product; (3) in the Japanese culture, the more one talks, the less others
will perceive him or her as trustworthy, so only a brief dialogue or narration is preferred; (4)
humor is used to create a bond of mutual feelings and not to dramatize others in a humorous
way; (5) famous celebrities appear as close acquaintances or everyday people; (6) priority is
placed on company trust rather than product quality. Japanese tend to believe that if a company
is large and has a good image, the quality of its products should also be outstanding; and (7) the
product name is impressed on the viewer with short and brief commercials.
Difficulty: 3: Challenging
Chapter LO: 13.3: Identify key ad agency personnel and describe their respective roles in
creating global advertising.
AACSB: Analytical thinking

73) Which of the following is true about advertising expenditures in Germany and Brazil?
A) Television is the leading medium in both Germany and Brazil.
B) Newspapers are the leading medium in both Germany and Brazil.
C) Television is the leading medium in Brazil; newspapers are the leading medium in Germany.
D) Television is the leading medium in Germany; newspapers are the leading medium in Brazil.
E) Magazines are the leading medium in Brazil and Germany.
Answer: C
Difficulty: 2: Moderate
Chapter LO: 13.4: Explain how media availability varies around the world.
AACSB: Application of knowledge

74) U.S. advertisements contain more ________ information, and are more likely to include
comparative appeals than Arabic ads.
A) people
B) process
C) price
D) sex
E) context
Answer: C
Difficulty: 2: Moderate
Chapter LO: 13.4: Explain how media availability varies around the world.
AACSB: Application of knowledge

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78) One task of the ________ department is to generate nonpaid forms of communication to
foster goodwill among customers and others.
A) sales promotion
B) global marketing
C) headquarters
D) public relations
E) advertising
Answer: D
Difficulty: 2: Moderate
Chapter LO: 13.5: Compare and contrast publicity and public relations and identify global
companies that have recently been impacted by negative publicity.
AACSB: Application of knowledge

79) Generally speaking, a company has little control over media. To compensate for this lack of
control, many companies utilize:
A) image advertising.
B) advocacy advertising.
C) corporate advertising.
D) TV advertising.
E) radio advertising.
Answer: C
Difficulty: 2: Moderate
Chapter LO: 13.5: Compare and contrast publicity and public relations and identify global
companies that have recently been impacted by negative publicity.
AACSB: Application of knowledge

80) What do Ford Motor Company, Coca-Cola, Nike, and McDonald's all have in common?
A) They are all consumer packaged-goods companies.
B) They all have foreign CEOs.
C) They have all received a great deal of negative publicity in recent years.
D) They all rely exclusively on TV advertising.
E) They spend more in advertising in foreign markets than home markets.
Answer: C
Difficulty: 2: Moderate
Chapter LO: 13.5: Compare and contrast publicity and public relations and identify global
companies that have recently been impacted by negative publicity.
AACSB: Application of knowledge

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81) Officials at Brazil's state-owned oil company and top politicians were accused of
collaborating with contractors to receive billions in kickbacks. This resulted in ________
problems for Petrobras.
A) pricing
B) distribution
C) sales promotion
D) public relations
E) advertising
Answer: D
Difficulty: 2: Moderate
Chapter LO: 13.5: Compare and contrast publicity and public relations and identify global
companies that have recently been impacted by negative publicity.
AACSB: Application of knowledge

82) Japan's Fuji Photo Film asked its advertising agency to develop an advocacy campaign for
the United States targeted to appeal both to Walmart and to its customers. This is an example of:
A) local advertising.
B) pattern advertising.
C) global advertising.
D) advocacy advertising.
E) image advertising.
Answer: D
Difficulty: 2: Moderate
Chapter LO: 13.5: Compare and contrast publicity and public relations and identify global
companies that have recently been impacted by negative publicity.
AACSB: Application of knowledge

83) Even in the face of such tough and growing competition, Adidas still enjoys high brand
loyalty among older Europeans. The company recruits young people and pays them to wear
Adidas shoes in public. This is an example of:
A) local advertising.
B) pattern advertising.
C) global advertising.
D) advocacy advertising.
E) image advertising.
Answer: E
Difficulty: 2: Moderate
Chapter LO: 13.5: Compare and contrast publicity and public relations and identify global
companies that have recently been impacted by negative publicity.
AACSB: Application of knowledge

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84) Which of the following most accurately describes the state of global public relations (PR)
today?
A) Expenditures on PR are dropping.
B) Expenditures on PR are increasing.
C) PR practices are standardized worldwide.
D) PR is not important in emerging markets like India.
E) Foreign investments are increasing.
Answer: B
Difficulty: 2: Moderate
Chapter LO: 13.5: Compare and contrast publicity and public relations and identify global
companies that have recently been impacted by negative publicity.
AACSB: Application of knowledge

85) A company adopting a(n) ________ approach to worldwide PR activities gives the host-
country practitioner maximum leeway to incorporate local customs and practices into the PR
effort.
A) ethnocentric
B) regiocentric
C) local
D) polycentric
E) publicity
Answer: D
Difficulty: 2: Moderate
Chapter LO: 13.5: Compare and contrast publicity and public relations and identify global
companies that have recently been impacted by negative publicity.
AACSB: Application of knowledge

86) China's ongoing trade-related friction with the United States highlights the need for:
A) a better distribution system.
B) a better PR effort.
C) sales promotion.
D) a better transportation system.
E) pattern advertising.
Answer: B
Difficulty: 2: Moderate
Chapter LO: 13.5: Compare and contrast publicity and public relations and identify global
companies that have recently been impacted by negative publicity.
AACSB: Application of knowledge

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87) A company that is ________ in its approach to public relations (PR) will extend home-
country activities into host countries.
A) regiocentric
B) polycentric
C) ethnocentric
D) domestic
E) hostile
Answer: C
Difficulty: 2: Moderate
Chapter LO: 13.5: Compare and contrast publicity and public relations and identify global
companies that have recently been impacted by negative publicity.
AACSB: Application of knowledge

88) In developing countries, such as Ghana, the best way to communicate with market segments
may be through:
A) mass media.
B) written word.
C) magazine ads.
D) TV ads.
E) dance, songs, and storytelling.
Answer: E
Difficulty: 2: Moderate
Chapter LO: 13.5: Compare and contrast publicity and public relations and identify global
companies that have recently been impacted by negative publicity.
AACSB: Application of knowledge

89) Publicity is similar to advertising in that companies pay the media for placement of stories
and news items.
Answer: FALSE
Difficulty: 2: Moderate
Chapter LO: 13.5: Compare and contrast publicity and public relations and identify global
companies that have recently been impacted by negative publicity.
AACSB: Application of knowledge

90) Image advertising is used by global companies to present themselves as famous corporate
citizens in foreign countries.
Answer: FALSE
Difficulty: 2: Moderate
Chapter LO: 13.5: Compare and contrast publicity and public relations and identify global
companies that have recently been impacted by negative publicity.
AACSB: Application of knowledge

28
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91) Advocacy advertising enhances the public's perception of a company, creates goodwill, or
announces a major change.
Answer: FALSE
Difficulty: 3: Challenging
Chapter LO: 13.5: Compare and contrast publicity and public relations and identify global
companies that have recently been impacted by negative publicity.
AACSB: Application of knowledge

92) In a massive security breach, North Korean hackers leaked data, memos, and films stolen
from Sony in retaliation for Sony Pictures Entertainment's The Interview.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 13.5: Compare and contrast publicity and public relations and identify global
companies that have recently been impacted by negative publicity.
AACSB: Analytical thinking

93) The ultimate test of an organization's understanding of the power and importance of PR
occurs during a time of environmental turbulence, especially a potential or actual crisis.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 13.5: Compare and contrast publicity and public relations and identify global
companies that have recently been impacted by negative publicity.
AACSB: Analytical thinking

94) A company that is ethnocentric in its approach to PR will not extend home-country PR
activities into host countries.
Answer: FALSE
Difficulty: 2: Moderate
Chapter LO: 13.5: Compare and contrast publicity and public relations and identify global
companies that have recently been impacted by negative publicity.
AACSB: Analytical thinking

29
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