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Multiple Choice Quiz
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1
With perfect competition, when one company starts to make significant profits, other companies immediately decide to compete.
A)True
B)False
2
The preindustrial age ended in 1450 with the appearance of the first English ad.
A)True
B)False
3
As the 1990s unfolded, the traditional advertising industry experienced dramatic growth due to underpopulation.
A)True
B)False
4
One of the social needs served by the advertising industry is the facilitation of freedom of the press.
A)True
B)False
5
Which of the following is an example of an externality associated with the purchase of a six-pack of beer?
A)a DUI accident
B)a decrease in stakeholder involvement
C)unmarketing
D)vertical integration
E)positioning
6
An ad in CWB magazine, a publication for people in the custom woodworking industry, offered a 90-day free trial of the Original brand radial saw with free shipping and return if you were not satisfied with the product. The primary function of the ad was to:
A)control competitive pricing practices
B)establish exclusive distribution rights for The Original Saw Company
C)communicate information about the radial saw's features
D)induce businesses to try the radial saw
E)communicate information about The Original Saw Company's after-sale service
7
_____ was the first American known to use illustrations in ads
A)Benjamin Franklin
B)Claude Hopkins
C)N. W. Ayer
D)Johannes Guttenberg
E)Volney B. Palmer
8
The South Dakota Cabinet Company designs and builds customized residential cabinets for its customers. The company's owners states that they have "never say 'no' to ant customer's request. This statement of service could be used as the company's:
A)perceptual value
B)unique selling proposition
C)economic differential
D)economic advantage
E)differential value
9
In the 1970s, the City of Los Angeles ran a campaign encouraging water conservation by promoting, "Save Water—Shower with a Friend." A marketing effort such as this would be classified as:
A)re-marketing
B)eco-marketing
C)demarketing
D)relationship marketing
E)un- marketing
10
The postindustrial age of the evolution of marketing is characterized by:
A)a growing need to embrace externalities
B)the aging of traditional products and the corresponding growth in
C)the decline of the European agencies
D)a significant growth in the use of sales promotions
E)the absence of puffery
11
Which of the following statements describes how the explosion of new technologies affected advertising?
A)The traditional advertising industry suffered from underpopulation.
B)The shortage of hi-tech advertising agencies led to a promotional crisis.
C)Advertising industries was a decline in the presence of VCRs.
D)The advertising industry has been deregulated, which led to international growth.
E)The advertising industry experienced a growth in the more specialized narrowcasting medium.





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