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| 1 |  |  An ad for Hampton Inns is an example of product advertising. |
|  | A) | True |
|  | B) | False |
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| 2 |  |  National advertisers plan tactically to launch, build, and sustain brands while local advertisers think strategically. |
|  | A) | True |
|  | B) | False |
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| 3 |  |  The two methods by which agencies are paid fees are the straight-fee and the retainer methods. |
|  | A) | True |
|  | B) | False |
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| 4 |  |  The final stage in the client/agency relationship is the maintenance stage. |
|  | A) | True |
|  | B) | False |
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| 5 |  |  Which of the following businesses is LEAST likely to use local advertising? |
|  | A) | the Salvation Army |
|  | B) | a local cable company |
|  | C) | an H&R Block franchise |
|  | D) | CDW, a manufacturer of data storage devices |
|  | E) | JCPenney in Asheville |
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| 6 |  |  The three primary types of ads placed in local media are institutional, product, and: |
|  | A) | service |
|  | B) | retail |
|  | C) | governmental |
|  | D) | corrective |
|  | E) | classified |
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| 7 |  |  To create effective local advertising, the owner of a cleaning service would need to: |
|  | A) | avoid being too clever |
|  | B) | use tie-ins with local or special news events |
|  | C) | make the headline count |
|  | D) | don't be afraid of using white space |
|  | E) | do all of the above |
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| 8 |  |  Cooperative advertising serves two key purposes. One of those purposes is to build the manufacturer's brand image. The second purpose is to: |
|  | A) | reduce the probability that distributors, dealers, or retailers will do no advertising at all |
|  | B) | decrease the probability that distributors, dealers, or retailers will present poor advertising to a manufacturer's customers |
|  | C) | help a manufacturer's distributors, dealers, or retailers make more sales |
|  | D) | save the manufacturer money by reducing its variable costs |
|  | E) | reduce dependence on institutional advertising |
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| 9 |  |  Piggly-Wiggly is a supermarket chain that is only found in the southeastern United States. You would expect the supermarket to use _____ advertising if it were trying to convince Southerners its products were competitive, and its prices were lowest. |
|  | A) | geographic |
|  | B) | local |
|  | C) | national |
|  | D) | regional |
|  | E) | adjacency |
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| 10 |  |  Imagine an agency bought an ad in Thrasher magazine (a publication for skateboard enthusiasts) for a company that sells customized helmets, and the media cost for the helmet manufacturer was $500. How much money would the agency send the publication to pay for the ad? |
|  | A) | $425 |
|  | B) | $485 |
|  | C) | $500 |
|  | D) | $515 |
|  | E) | $575 |
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| 11 |  |  What is the first distinct stage in the client/agency relationship? |
|  | A) | introduction |
|  | B) | development |
|  | C) | referral |
|  | D) | growth |
|  | E) | prerelationship |
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