Chapter 17 - Chapter 17Advertising and Public Relations...

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Chapter 17—Advertising and Public Relations TRUE/FALSE 1. Spending on advertising varies by industry. ANS: T PTS: 1 REF: 261 OBJ: 17-1 TYPE: Comp TOP: AACSB Reflective Thinking | TB&E Model Promotion 2. The advertising response function is a phenomenon in which increased spending for advertising and sales promotion increases sales or market share up to a certain level but then produces diminishing res- ults. ANS: T PTS: 1 REF: 262 OBJ: 17-1 TYPE: Def TOP: AACSB Reflective Thinking | TB&E Model Promotion 3. The goal of advertising is to change people's values. ANS: F Advertising cannot change a person's basic value system, moral code, or cultural influences. Advert- ising instead tries to change consumers' attitudes about brands. PTS: 1 REF: 262 OBJ: 17-1 TYPE: Comp TOP: AACSB Reflective Thinking | TB&E Model Promotion 4. A small high-tech company has just launched a new writing pen that has a memory, much like a small computer. The advertising campaign focuses on the innovativeness of the new product. This is an ex- ample of pioneering advertising. ANS: T PTS: 1 REF: 263 OBJ: 17-2 TYPE: App TOP: AACSB Reflective Thinking | TB&E Model Promotion 5. On Subway napkins, they compare the nutritional information for their 6-inch subs to McDonald’s Big Mac and Burger King Whopper. This is an example of competitive advertising. ANS: F Comparative advertising specifically compares two or more products. PTS: 1 REF: 264 OBJ: 17-2 TYPE: App TOP: AACSB Reflective Thinking | TB&E Model Promotion 6. Unlike other types of advertising, a comparative advertising campaign can be readily globalized. ANS: F In many countries, the hard-sell tactics found in comparative advertising are illegal. PTS: 1 REF: 264 OBJ: 17-2 TYPE: Comp TOP: AACSB Reflective Thinking | TB&E Model Promotion 7. The DAGMAR approach is method one of setting advertising objectives. ANS: T PTS: 1 REF: 264 OBJ: 17-3 TYPE: Def
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TOP: AACSB Reflective Thinking | TB&E Model Promotion 8. A print ad depicts a picture of a frozen dessert accompanied by information about the dessert: "two servings, only 300 calories per serving, no cholesterol, and 100 percent of the RDA of vitamins and minerals." This is an example of an advertisement selling the product's benefits. ANS: F This ad sells the product's attributes. PTS: 1 REF: 265 OBJ: 17-3 TYPE: App TOP: AACSB Reflective Thinking | TB&E Model Promotion 9. An appeal to vanity and egotism is the reason that celebrity spokespeople are used so often in advert- ising. ANS: F This common advertising appeal is admiration. See Exhibit 17.2. PTS: 1 REF: 265 OBJ: 17-3 TYPE: App TOP: AACSB Reflective Thinking | TB&E Model Promotion 10. An insurance company's advertisement poses the question, "Will your family survive if you die unin- sured?" This is an example of a health appeal. ANS: F This is an example of a fear appeal. See Exhibit 17.2.
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