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Multiple Choice Quiz
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1
According to the text, why is advertising the subject of more controversy and criticism compared to other disciplines?
A)Advertising results in increased costs.
B)It thwarts consumer socialization process.
C)Organizations prefer internal marketing to external marketing.
D)Advertising has high visibility and is pervasive.
E)It does not add value to a product or service.
2
A pharmaceutical company has developed a drug that is guaranteed to cause users to lose twenty pounds in one month. The drug also causes the heart to beat irregularly and could cause heart attacks. The pharmaceutical company has spent millions advertising the drug as a weight loss miracle, but has not mentioned the potential heart problems in any of its advertising. This type of advertising is:
A)a clear example of advertisements in bad taste.
B)offensive because it is stereotypical.
C)called deceptive advertising.
D)meant to be informative but not persuasive.
E)a clear example of shock advertising
3
Assume the ad for a type of perfume called Graveyard Dust uses an ad that shows teenagers digging in a fresh grave. This ad would be an example of:
A)shock advertising.
B)image communication.
C)negative consumer socialization.
D)product/market symbiosis.
E)image advertising.
4
Some people who are critical of advertising complain that marketing communications creates needs rather than merely showing how a product would fulfill them. These critics have decided advertising wrongly encourages:
A)the consumer socialization process.
B)the use of shock advertising.
C)materialism in the society.
D)advertising in bad taste.
E)high price elasticity
5
Which of the following statements, if true, would support the argument that advertising encourages materialism?
A)Most advertisements surround consumers with images of violence and sexual appeals.
B)Economies of scales are least significant in the advertising industry.
C)Most media companies in have formed a wall to separate the marketing and publishing departments.
D)Most companies have an upper limit in their advertising spending.
E)Advertising can create needs that never existed to encourage selling.
6
Many criticize that advertising makes people buy things they do not really need. Which of the following is the most logical counter-argument to handle this criticism?
A)Materialism is an important value in an individualistic society.
B)Customers can be benefitted by the economies of scale which occurs due to advertising.
C)Most advertisements do not have emotional appeals to persuade customers.
D)Advertising provides information on basic needs to customers rather than persuading them.
E)Such criticisms assume consumers have no ability to defend themselves.
7
Smaller media companies often avoid certain topics or even present biased news coverage, according to advertiser demands. Even larger media companies are forced to meet advertiser demands by avoiding certain topics. Which of the following terms best represents this practice?
A)Protestant ethic
B)Economic censorship
C)Shock advertising
D)Stereotyping
E)Media socialization
8
Advertising becomes a substitute of competition when:
A)large companies spend more on advertising to obtain dominance.
B)there are many players in the market and when all of them advertise.
C)the industry has an informal upper cap on advertisement spending
D)advertising in the industry is limited by informal norms.
E)the product being marketed is highly standardized.
9
Which of the following is viewed by many to be a barrier to entry for a new product?
A)The product category is highly undifferentiated.
B)The product category is characterized by a few substitutes.
C)The product is a commodity for which consumers have no brand loyalty.
D)Existing competitors for the new-product have huge advertising budgets.
E)The new product is characterized as a specialty good.
10
There are two schools of thought on advertising's role in the economy. One believes advertising equals information. The other believes advertising equals:
A)persuasion.
B)marketing power.
C)customer relationship.
D)retention.
E)compliance.





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