Test Bank for Contemporary
Advertising and
Integrated Marketing
Communications 15th
Edition Arens
Chapter 1The
Big Picture: The Evolution of Advertising and IMC
True / False Questions
1. Economics has created the need for advertising and has made it a staple of the free enterprise
system.
True False
2. A market economy is characterized by two assumptions: the interest of the community and the
presence of externalities.
, True False
3. Open competition between self-interested sellers advertising to self-interested buyers leads to
greater product availability at more competitive prices.
True False
4. The sale or consumption of products rarely benefits or harms other people who are not involved
in the transaction and who did not pay for the product.
True False
5. The assumptions characterizing a market economy describe an ideal economy, not one that
actually exists.
True False
,6. The most significant function of advertising is to lower the overall cost of sales.
True False
7. In a free-market economy, when one company starts making significant profits, other companies
immediately jump in to compete.
True False
8. Messages aimed to encourage trade were unheard of in pre-industrial societies.
True False
9. Benjamin Franklin was the first American known to use illustrations in ads.
True False
10. The emergence of urban markets following the Industrial Revolution hindered the growth of
advertising.
True False
11. The advertising industry existed before the industrial age.
True False
12. The American profession of advertising began when Volney B. Palmer set up business in
Philadelphia in 1841.
True False
13. A. C. Nielsen produced the earliest catalogs, bringing a wide variety of products to new, rural
markets.
True False
, 14. A vodka company using the slogan "Spirit for the Spirited" in order to enhance the appeal of its
brand is using product differentiation.
True False
15. A product's unique selling point is a feature that differentiates it from competitive products.
True False
16. Market segmentation is a process by which manufacturers seek to portray their brands as
different from and better than the competition by offering consumers quality, variety, and
convenience.
True False
17. Demarketing is used by marketers primarily to identify unique groups of people whose needs can
be addressed through more specialized products.
True False
18. A megamerger occurs when big multinational companies buy other big companies in order to
expand globally.
True False
19. Beginning around 1980, the postindustrial age has been a period of relative stability.
True False
20. The marketing world of the postindustrial age was characterized by competition intensified by
lower trade barriers and growing international trade.
True False
Advertising and
Integrated Marketing
Communications 15th
Edition Arens
Chapter 1The
Big Picture: The Evolution of Advertising and IMC
True / False Questions
1. Economics has created the need for advertising and has made it a staple of the free enterprise
system.
True False
2. A market economy is characterized by two assumptions: the interest of the community and the
presence of externalities.
, True False
3. Open competition between self-interested sellers advertising to self-interested buyers leads to
greater product availability at more competitive prices.
True False
4. The sale or consumption of products rarely benefits or harms other people who are not involved
in the transaction and who did not pay for the product.
True False
5. The assumptions characterizing a market economy describe an ideal economy, not one that
actually exists.
True False
,6. The most significant function of advertising is to lower the overall cost of sales.
True False
7. In a free-market economy, when one company starts making significant profits, other companies
immediately jump in to compete.
True False
8. Messages aimed to encourage trade were unheard of in pre-industrial societies.
True False
9. Benjamin Franklin was the first American known to use illustrations in ads.
True False
10. The emergence of urban markets following the Industrial Revolution hindered the growth of
advertising.
True False
11. The advertising industry existed before the industrial age.
True False
12. The American profession of advertising began when Volney B. Palmer set up business in
Philadelphia in 1841.
True False
13. A. C. Nielsen produced the earliest catalogs, bringing a wide variety of products to new, rural
markets.
True False
, 14. A vodka company using the slogan "Spirit for the Spirited" in order to enhance the appeal of its
brand is using product differentiation.
True False
15. A product's unique selling point is a feature that differentiates it from competitive products.
True False
16. Market segmentation is a process by which manufacturers seek to portray their brands as
different from and better than the competition by offering consumers quality, variety, and
convenience.
True False
17. Demarketing is used by marketers primarily to identify unique groups of people whose needs can
be addressed through more specialized products.
True False
18. A megamerger occurs when big multinational companies buy other big companies in order to
expand globally.
True False
19. Beginning around 1980, the postindustrial age has been a period of relative stability.
True False
20. The marketing world of the postindustrial age was characterized by competition intensified by
lower trade barriers and growing international trade.
True False
