An advertisement that is designed to pre-sell a company's products and provide salespeople with valuable introductions performs the advertising function of _____.
a. informing
b. persuading
c. adding value
d. reminding
e. assisting other company efforts
Question 2A local ice cream store has a new maze and children's jokes on their bags every month. The maze and jokes on the bag is an example of a(n) _____.
a. self-liquidating offer
b. on-pack premium
c. near-pack premium
d. mail-in offer
e. game
Question 3A Korean brand of television was perceived as low quality by over 70 percent of American consumers who were surveyed. However, after an extensive advertising campaign, the percentage of American consumers who perceived this brand as low quality fell to 20 percent. In this instance, advertising has successfully altered consumers' perceptions and performed which function?
a. adding value
b. informing
c. persuading
d. reminding
e. assisting other company efforts
Question 4The toy inside of a box of breakfast cereal is an example of a(n) _____.
a. add-on promotion
b. self-liquidating offer
c. in-pack premium
d. hedonic premium
e. bonus pack
Question 5What simplifying assumption does the elasticity equation for predicting market share make?
a. Advertising is the sole determinant of market share.
b. Price is the sole determinant of market share.
c. The number of brands in the category is the sole determinant of market share.
d. Market share is determined by the combination of the price and advertising.
e. Market share is determined by the combination of number of brands and advertising.
Question 6Laurie received a free Hawaiian shirt from Tropicana Orange Juice by sending in ten proofs of purchases. What type of premium is this?
a. free-with-purchase premium
b. in-pack premium
c. on-pack premium
d. wearable premium
e. mail-in offer
Question 7How can companies add value to their offerings?
a. innovating
b. improving quality
c. altering consumer perceptions
d. a and b only
e. a, b, and c
Question 8For which type of premium do consumers receive a free item from the sponsoring manufacturer in return for submitting a required number of proofs of purchase?
a. free-with-purchase premium
b. mail-in offer
c. in-pack premium
d. near-pack premium
e. self-liquidating offer
Question 9Which of the following is consistent with the advertising = market power approach to advertising's role in the economy?
a. Consumers become more price sensitive and buy best value.
b. Advertising does not change the way consumers value product attributes.
c. Consumers become brand loyal.
d. Consumers can compare competitive offerings easily.
e. Innovation is facilitated via new entrants.
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