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Unformatted text preview: QUIZ #4 http://bsuonline.bowiestate.edu/...Id=0927E933CD914E46AE495B367CB81CB9&response_Id=1F47B6BF34A04209BC58EAF6F608F309[11/23/2010 1:42:09 PM] 1. Why do many brands with a large market share spend proportionally less on advertising compared to brands with small market share? A) Certain industries have a practice of spending a low amount of dollars, relative to sales, on advertising. B) The firms with large market share do not understand the advertising-to-sales relationship. C) Advertising will not stimulate economic growth for the industry. D) Beyond a certain volume of promotion, diminishing returns set in. E) There is no minimum level of exposure for advertising to have an effect on sales. Feedback: There is a saturation point for advertising. 2. Cable TV It wasn't so long ago that cable swaggered around the television industry as the upstart threatening the broadcast networks. Now, cable is old news. The antagonist is the satellite dish with the capability of delivering hundreds of channels and offering an array of movies and sports events. The technology is known as direct broadcast satellite, or DBS. The new challenger has awakened the "sleeping giant" cable industry, which has hit the airwaves with some of the most aggressive advertisements the television industry has seen. The ads emphasize the downside of disconnecting cable and choosing to purchase a satellite dish. One commercial opened with a man on a couch joined by his wife with a large bowl of popcorn. They snuggle in front of their TV set, hooked up to DBS. She seemed excited about their new system and exclaimed, "So this is it?" She then asked how much the satellite dish cost. When her husband answered, the excitement was off. "There's no monthly fee?" she asked. "No more than cable," he responded. When she asked to watch the news, he sheepishly said, "Uh, can't get local news." At the end of the commercial, the spokesperson for the cable industry declared, "These days when everyone is promising you the future of television, isn't it nice to know you already have it." Refer to Cable TV. Keisha is watching television and sees an ad for DBS. Two ads later, she sees the new television ad for her local cable system. When questioned an hour later about advertising she has seen most recently, Keisha remembers a "cable" ad but cannot recall the details. Keisha's inability to recall the ad is most likely caused by _____ in the communication process. A) noise B) the use of a channel C) a shared frame of reference D) cognitive dissonance E) feedback Feedback: Noise is anything that interferes with, distorts, or slows down the transmission of information. Competing ads can be a source of noise....
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This note was uploaded on 03/14/2011 for the course MGMT 231 taught by Professor Brown during the Spring '11 term at University of Phoenix.
- Spring '11