Test Bank for M Advertising 2nd Edition William Arens

To purchase this Complete Test Bank with Answers Click the Test Bank for M Advertising 2nd Edition William Arens link Below If face any problem or Further information contact us At Test Bank for M Advertising 2nd Edition William Arens Order will Be Deliver in 2 To 4 Hours Sample Questions Chapter 02 The Environment of Advertising True / False Questions 1. The economic effect of advertising triggers a chain reaction of hard to predict economic events. The economic effect of advertising is like the break shot in billiards or pool. The moment a company begins to advertise, it sets off a chain reaction of economic events. The extent of the chain reaction, although hard to predict, is related to the force of the shot and the economic environment in which it occurred. True False 2. Advertising adds value to a brand by educating customers about new uses for a product. True False 3. Intense competition rarely reduces the number of businesses in an industry. True False 4. The importance of advertising is best demonstrated by the iceberg principle. True False 5. When an ad states that chicken soup made with Swanson chicken broth “tastes as good as grandma’s,” the advertiser is using puffery. True False 6. A criticism of advertising is that ads are so powerful that consumers are helpless to defend themselves against the temptations and appeals of ads. True False 7. Critics argue there is too much advertising due to the proliferation of new media. True False 8. Despite the increasing number of women in executive positions in the work force, most modern advertisers have not changed their stereotypical depictions of women as subservient housewives and sex objects. True False 9. According to advertising supporters, advertising promotes a higher standard of living, subsidizes the arts, and supports freedom of the press. True False 10. Adherence to ethical and socially responsible principles is the moral obligation of advertisers. True False 11. The U.S. Supreme Court does not differentiate between “speech” and “commercial speech.” True False 12. While most children and parents are still joint consumers, more and more children are becoming sole decision makers. True False 13. The uniform nature of advertising regulation in the U.S. ensures that advertisers understand what is required to comply with regulations. True False 14. Deceptive advertising occurs when a consumer is “unjustifiably injured” or there is a “violation of public policy.” True False 15. When State Farm insurance uses advertising to show that it has lower rates than Progressive insurance, it is using comparative advertising. True False 16. The FTC can request a company to use corrective advertising, but it may not legally require a company to do so. True False 17. The big cursive G that appears in all ads for General Mills cereals is an example of a trademark. True False 18. The chief function of the consumer protection agencies found in many cities and counties is to act as a watchdog for federal regulators. Many cities and counties also have consumer protection agencies to enforce laws regulating local advertising practices. The chief function of these agencies is to protect local consumers against unfair and misleading practices by area merchants. True False 19. The NLEA sets strict legal definitions for terms such as light and low fat as used in advertising food products. The Nutritional Labeling and Education Act (NLEA), which went into effect in 1994, gave the FDA additional muscle by setting stringent legal definitions for terms such as fresh, light, low fat, and reduced calories. True False 20. Uniform newspaper advertising codes make it easy for advertisers to make sure that their ads meet all legal and ethical requirements. True False 21. The Better Business Bureau operates primarily at the national level and is funded by the dues of media groups. True False 22. The Better Business Bureau investigates advertisements for possible violations of accuracy, and it works with law enforcement to prosecute fraudulent advertisers. True False 23. One of the most effective tools for regulating American advertising is the Advertising Self-Regulatory Council. In some cases, the ASRC is more effective than the court system in handling advertising disputes. True False 24. The broadcast standards department at a network or affiliated station approves and rejects commercials. True False 25. Most advertisers appreciate attention from consumer advocate groups, which rarely succeed in having ads pulled. True False Multiple Choice Questions 26. Externalities are best described as: A. social costs. B. unseen opportunity costs. C. factors used to increase advertising reach. D. tangible factors that hinder communication. E. inexpensive ways to increase perceptual value to a product. 27. Which of the following images best describes the chain reaction of economic events that takes place once a company begins to advertise? A. The opening break shot in billiards B. A beautiful woman entering a room C. A car speeding up as it goes downhill D. A dart hitting the center of a bull’s eye E. A line of dominoes being knocked over 28. How does advertising most likely affect the value of a product? A. Advertised products meet higher quality standards than non-advertised products. B. Advertising eliminates all perceptual barriers to purchase a product or service. C. Advertising educates customers about new uses for a product. D. Advertising provides a predictable increase in product sales. E. Advertising decreases both competition and prices. 29. Which of the following statements about how advertising affects price is most likely true? A. Advertising has a strong effect on the price of agricultural products such as soybeans. B. Advertising always increases the price of a product—never lowers it. C. The consumer who buys the product pays for the advertising. D. Advertising has had a significant impact on the prices charged by utilities. E. The amount typically spent on advertising is large compared with total sales.