Test Bank for M Advertising 2nd Edition William Arens
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Module
Advertising
Institution
Advertising
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Sample Questions
Chapter 02
The Environment of Advertising
True / False Questions
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
1 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
, Advertising adds value to a brand by educating customers about new
2 uses for a product.
. True False
Intense competition rarely reduces the number of businesses in an
3 industry.
. True False
The importance of advertising is best demonstrated by the iceberg
4 principle.
. True False
When an ad states that chicken soup made with Swanson chicken broth
5 “tastes as good as grandma’s,” the advertiser is using puffery.
. True False
A criticism of advertising is that ads are so powerful that consumers are
6 helpless to defend themselves against the temptations and appeals of
. ads.
True False
Critics argue there is too much advertising due to the proliferation of new
7 media.
. True False
Despite the increasing number of women in executive positions in the
8 work force, most modern advertisers have not changed their stereotypical
. depictions of women as subservient housewives and sex objects.
True False
, According to advertising supporters, advertising promotes a higher
9 standard of living, subsidizes the arts, and supports freedom of the press.
. True False
Adherence to ethical and socially responsible principles is the moral
10 obligation of advertisers.
. True False
The U.S. Supreme Court does not differentiate between “speech” and
11 “commercial speech.”
. True False
While most children and parents are still joint consumers, more and
12 more children are becoming sole decision makers.
. True False
The uniform nature of advertising regulation in the U.S. ensures that
13 advertisers understand what is required to comply with regulations.
. True False
Deceptive advertising occurs when a consumer is “unjustifiably injured”
14 or there is a “violation of public policy.”
. True False
When State Farm insurance uses advertising to show that it has lower
15 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.
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