Deck 22: Evaluating the Social,Ethical,and Economic Aspects of Advertising and Promotion

Question 1

_____ are moral principles and values that govern the actions and decisions of an individual or group.

A)Regulations
B)Guidelines
C)Ethics
D)Concerns
E)Social criticisms

Answer 1

C

Question 2

Which of the following expresses a valid conclusion about the truthfulness of advertising?

A)It can be difficult to determine if an ad is misleading consumers since deception is partly dependent on how a consumer perceives an advertising message.
B)Even though most advertisers intend to deliberately mislead consumers,they often present only information that is favorable to their position.
C)Many critics of advertising feel advertising should include puffery or embellished messages.
D)Many critics of adverting do not believe advertising can or should be informative.
E)All of the above statements express a valid conclusion about the truthfulness of advertising.

Answer 2

A

Question 3

Which of the following statements describes how condoms are advertised?

A)Condom manufacturers are not permitted to use any of the traditional media vehicles available to other product manufacturers.
B)Ads for condoms are permitted on cable television but not on the major networks.
C)Ads for condoms are considered offensive and are legally prohibited from appearing in print media.
D)No condom ads have ever been run on television.
E)None of the above describes how condoms are advertised.

Answer 3

E

Question 4

the peanut butter masked the taste of the bread.

A)legal;ethical
B)ethical;legal
C)legal;economic
D)economic;legal
E)ethical;economic

Question 5

In the 1950s and 1960s,many auto shops gave away promotional calendars to customers.The calendars typically showed some buxom beauty,scantily clothed and posed in some atypical position in or on an automobile.Critics of advertising today would call such calendars:

A)untruthful
B)unfair
C)deceptive
D)offensive and in bad taste
E)asocial

Question 6

Novartis Corporation spent millions of advertising dollars informing consumers that Doan's pills were superior to other over-the-counter analgesics in treating back pain even though it contained the same ingredients as other over-the-counter analgesics.Critics of advertising called these ads:

A)unsynergistic
B)unfair
C)deceptive
D)offensive and in bad taste
E)asocial

Question 7

Which of the following is NOT a social criticism of advertising?

A)Advertising is offensive and distasteful.
B)Advertising exploits children.
C)Advertising perpetuates stereotypes.
D)Advertising is untruthful and deceptive.
E)Advertising increases product costs and reduces competition.

Question 8

Which of the following statements is a valid argument as to why the television networks might have to scrutinize commercials more carefully than their programs?

A)Television networks have to be wary of potential subliminal advertising.
B)The viewing public can control the television programs they choose to watch,but they cannot control what commercials they will see in these programs.
C)Television programs are not nearly as violent and explicit as most commercials.
D)Television commercials are usually informative in nature and do not contain any controversial language or images.
E)The public has to be protected from any unauthorized sexually explicit or overly violent commercials.

Question 9

Proponents of advertising contend advertising:

A)produces jobs
B)enables new firms to enter the market
C)delivers information to consumers
D)encourages consumers to improve their standards of living
E)does all of the above

Question 10

Which of the following expresses a valid conclusion about the truthfulness of advertising?

A)It is difficult to determine what constitutes untruthful or misleading advertising since deception can occur in subtle ways.
B)One of the major complaints about advertising is that many ads are misleading.
C)Most advertisers do not intentionally mislead or deceive consumers,but some will test the limits of various rules and regulations to gain a competitive advantage.
D)National advertisers are not likely to risk consumer trust and confidence by intentionally deceiving them.
E)All of the above statements express a valid conclusion about the truthfulness of advertising.

Question 11

Proponents of advertising argue that:

A)advertising provides consumers with information about products and services
B)advertising encourages consumers to improve their standards of living,which leads to economic growth
C)advertising is the lifeblood of business
D)free market systems are based on competition,which revolves around the information provided by advertising
E)advertising is all of the above

Question 12

Food industry leaders do not think they should take the blame for obesity among today's children,arguing for:

A)physical activity
B)dietary balance and moderation
C)more persona responsibility
D)nutritional education
E)all of the above See opening vignette.

Question 13

Which of the following describes the use of sexual appeals in advertising?

A)Sexual appeals are often criticized because they are not even relevant or appropriate for the product being advertised.
B)Sexual appeals are often criticized because they often contain nudity or use sexually suggestive ads.
C)Sexual appeals are often criticized because they are demeaning to women.
D)Some advertisers feel TV networks have a double standard when it comes to sexually oriented advertising since they scrutinize commercials carefully but not their programs.
E)All of the above describe the use of sexual appeals in advertising.

Question 14

Advertising is the target of controversy and criticism because of:

A)its high visibility and pervasiveness
B)the ways it influences society
C)the amount of money invested in it
D)the methods and techniques used by advertisers
E)all of the above

Question 15

Which of the following statements describes consumers' feelings about advertising they perceive to be irritating or distasteful?

A)Consumers can be offended by the mere fact that certain products are even advertised.
B)A study of prime time commercials found a strong product class effect with respect to the type of ads consumers perceive as irritating or distasteful.
C)Consumers tend to dislike ads that exploit consumer anxieties.
D)Ads using sexual appeals or nudity offend many consumers.
E)All of the above describe consumers' feeling about ads they perceive to be irritating or distasteful.

Question 16

Advertisers continue to use sexual appeals to advertise products such as beer,cigarettes and cosmetics:

A)to break through the advertising clutter and draw attention to their brands
B)because they are much more effective at creating sales than any other kinds of appeals
C)because these types of appeals are very acceptable to most people including women
D)because most TV shows contain sex and violence,which suggests these types of appeals will be popular with consumers
E)to support a positioning strategy that is aimed at creating brand recognition as opposed to brand purchase

Question 17

The Children's Food and Beverage Advertising Initiative is:

A)a government-funded research initiative to assess the causes of obesity
B)an attempt to censor food marketers
C)a voluntary industry self-regulation program.
D)an effort by the Center for Science in the Public Interest to invest in food company advertising
E)all of the above See opening vignette.

Question 18

Which of the following ads would likely be considered irritating or distasteful to many consumers?

A)ads for tampons
B)ads stating you won't have any friends unless you use a particular brand of deodorant
C)ads stating your home will be robbed unless you have a particular kind of security system
D)ads in support of the National Rifle Association
E)all of the above

Question 19

The type of advertising appeals that has received the most criticism for being in poor taste is:

A)personal computer ads targeted at children
B)fear appeals used to sell shampoos and deodorants
C)humorous appeals used to make fun of people who are socially inept
D)ads using sex and/or nudity
E)unfair comparative ads

Question 20

Critics of advertising contend:

A)the amount of advertising directed at consumers is excessive
B)advertising exploits consumers
C)advertising has a negative impact on the economic system
D)advertising makes consumers want products they don't really need
E)all of the above are true

Question 21

A recent trend in advertising is _____ in which marketers use nudity,sexual suggestiveness,or other startling images to get consumers' attention.

A)high-intensity promotion
B)"in-your-face" advertising
C)shock advertising
D)provocative image advertising
E)guerrilla marketing

Question 22

Advertisers use shock advertising to:

A)test their First Amendment rights
B)get their ads noticed in the midst of all the clutter that is found in the media
C)make a statement against self-regulation
D)test the ethics of the advertising industry
E)act as advocacy ads for company management

Question 23

In 2004, the American Psychological Association (APA) issued a report critical of increased commercialization of childhood. The APA found that the _____________ is particularly effective, and thus potentially harmful, means of sending advertising messages to children.

A) television
B) advertainment
C) Internet
D) billboard
E) radio

Question 24

Critics of advertising aimed at children use all of the following arguments to explain why it is wrong EXCEPT:

A)preschool children cannot discriminate between commercials and television programs
B)children lack an understanding of how advertising works and thus cannot effectively use cognitive defenses against it
C)children do not perceive the selling or persuasive intent of commercials
D)advertising is a part of life,and children must learn to deal with it as part of the consumer socialization process
E)children cannot distinguish between reality and fantasy

Question 25

Acquiring the skills needed to function in the marketplace is the text's definition of the _____ process.

A)consumer socialization
B)consumer education
C)caveat emptor
D)Protestant ethic
E)needs-focus

Question 26

Which of the following statements describe advertising directed toward children?

A)In 1979 the Federal Trade Commission enacted a very stringent set of guidelines that are used to regulate children's advertising.
B)Children's advertising is subject to strict self-regulatory guidelines from various industry and media organizations.
C)There are no limitations on the amount of commercial time permitted in children's television programs.
D)Research has shown consumers from households with children have very positive attitude toward children's advertising.
E)The consumer socialization process must take place before children can be targeted.

Question 27

_____ is defined as a personal value orientation that stresses hard work and individual effort and initiative and views the accumulation of material possessions as evidence of success.

A)Materialism
B)The Protestant ethic
C)Culturalism
D)Stereotyping
E)Cocooning

Question 28

Before disbanding in 1992 the _____,an activist group,played an important role in getting Congress to approve the Children's Television Act in 1990.

A)Children's Advertising Review Unit
B)Action for Children's Advertising
C)Fairness in Media
D)Children's Advertising Coalition
E)NOW

Question 29

Critics of advertising claim it can have a _____ effect on consumer values by encouraging _____,which is a preoccupation with accumulating possessions rather than intellectual or spiritual concerns.

A)peremptory;the Protestant ethic
B)positive;corporeality
C)negative;cocooning
D)negative;materialism
E)detrimental;stereotyping

Question 30

Which method do advertisers use to deal with the censors who work for the four major networks and reject commercials that they decide are inappropriate?

A)The advertisers ask the NAD to serve as arbiters.
B)The advertisers place their commercials on affiliate stations and cable stations.
C)The advertisers evoke the First Amendment.
D)The advertisers can offer to pay more money for ad time.
E)There is nothing the advertisers can do except reshoot the commercial and remove the offending material. See Ethical Perspective 22-2.

Question 31

Opponents of the 1979 Federal Trade Commission proposal to restrict advertising to children based their opposition on:

A)the fact greater knowledge of the marketplace gained through advertising creates a more skeptical buyer
B)the fact parents should help children interpret advertising and make the ultimate decision to purchase a product for their children
C)studies that have shown children are capable of perceiving the persuasive intent of advertising
D)the fact manufacturers of products targeted to children have a First Amendment right to advertise
E)all of the above

Question 32

The 1979 Federal Trade Commission proposal to change regulations governing children's advertising was:

A)accepted and resulted in many new regulations for children's advertising
B)accepted but has had little impact on children's advertising
C)defeated and since then there has been little concern over children's advertising
D)defeated but concern over children's advertising remains strong among parent and consumer groups
E)recently put before Congress again for consideration

Question 33

Which of the following describes the use of sexual appeals in advertising?

A)Sexual appeals are typically relevant and appropriate for the product being advertised.
B)Sexual appeals are often criticized because they often contain nudity or use sexually suggestive ads.
C)Sexual appeals to not demean men or women.
D)Of all the types of advertising appeals,sexual appeals have received the least criticism.
E)All of the above describe the use of sexual appeals in advertising.

Question 34

By creating needs rather than merely fulfilling them,by surrounding consumers with images of the good life,and by showing products as symbols of status and success advertising can create:

A)ethnocentricity
B)consumer socialization
C)materialism
D)stereotypes
E)informative ads

Question 35

The consumer socialization process:

A)refers to how easily a consumer moves from the need recognition stage to the purchase stage of the buying process
B)explains why consumers will never completely abandon department store shopping for Internet shopping
C)explains how marketers engage in relationship marketing
D)is the acquiring of skills needed to function in the marketplace
E)refers to how consumers satisfy their need to belong

Question 36

Young children may be especially vulnerable to advertising because:

A)they lack the experience and knowledge required to understand and evaluate persuasive messages
B)they cannot distinguish between reality and fantasy
C)they often have trouble differentiating between commercials and programs
D)they do not always perceive the selling intent of commercials
E)of all of the above reasons

Question 37

From an advertising perspective,why might various regulatory and consumer interest groups be opposed to programs based on commercial characters such as Care Bears or Lara Croft,Tomb Raider?

A)These shows are really 30-minute "program length" commercials designed to sell products rather than entertain.
B)Children will not understand the morale of the stories in these shows.
C)They are too violent for children.
D)There are too many commercial slots in these shows.
E)There is no reason to oppose them.

Question 38

The Children's Advertising Review Unit:

A)is a division of the Federal Trade Commission
B)was proposed by President Clinton but defeated by Congress
C)has strict regulatory guidelines regarding the type of appeals and product presentations that can be made to children
D)is a division of the PTA
E)is a litigation arm of the America Civil Liberties Union (ACLU)for children

Question 39

Which of the following trends would suggest advertising might play a major role in influencing and transmitting social values?

A)the weakening of institutions such as the family,religion and education over the past several generations
B)the proliferation of new media vehicles
C)a strengthening of traditional authority and a renewed emphasis of family values
D)the increase in the number of dual-family incomes
E)all of the above

Question 40

The ______ was passed in 1990 and limits the amount of commercial time permitted in children's programming.

A)Lanham Act
B)Children's Advertising Review Unit Act
C)Children's Television Act
D)FTC Act
E)Federal Communications Commission Act

Question 41

Pacific Auto World decided to stop advertising on a local television station that ran a story on its evening news that was critical of the high pressure tactics used by the dealer's salespeople.This is an example of an advertiser trying to:

A)control the national media's coverage of the news
B)control the local media's coverage of the news which is form of economic censorship
C)control the content of television programming
D)make consumers buy things they don't really need which is a form of economic censorship
E)raise the prices of products through advertising

Question 42

Which of the following media would be most vulnerable to influence and pressure from advertisers on the type of stories the medium covers?

A)a major television network such as CBS
B)a major newspaper in the maturity stage of its product life cycle such as the LA Times
C)a major magazine in the maturity stage of its product life cycle such as Time or Newsweek
D)a newspaper or magazine that is in the pioneering stage of its product life cycle and that receives a high amount of advertising from a particular industry
E)all are equally vulnerable

Question 43

Economic censorship is when the media avoid certain topics or present biased coverage in response to concerns or demands of advertisers.Critics of advertising argue that it occurs because:

A)the First Amendment guarantees advertisers freedom of speech
B)advertising plays such a large role in financing the media
C)most consumers distrust the media
D)most consumers distrust advertising
E)of all of the above

Question 44

A large cosmetics company cancelled all of its advertising in a women's magazine in response to an article in the magazine that claimed this company tested its cosmetics on animals even though later in the article,this claim was refuted.This is an example of:

A)the fact that advertisers need the media more than the media need individual advertisers
B)an attempt at economic censorship by the cosmetic company that cancelled its ads
C)a violation of the advertiser's First Amendment rights to free speech
D)the use of a fear appeal by an advertiser
E)none of the above

Question 45

Stereotypical portrayals of adult women in American television and print advertising emphasize their:

A)activism and autonomy
B)power
C)passivity and deference
D)ability to achieve under any circumstances
E)intelligence and achievement

Question 46

Which of the following is an argument that supports the charge that advertisers can and do control the media?

A)Advertisers need the media more than the media needs any individual advertisers.
B)The media are very dependent on advertising as the source of their income.
C)Many media have a broad base of advertiser support and can afford to lose advertisers attempting to exert control over them.
D)The media need the trust and respect of the public.
E)There is no such argument;it is in the best self-interest of the media not to be influenced or controlled by the advertiser.

Question 47

It has been argued that marketing and advertising should embrace multicultural marketing and diversity because these firms:

A)have abundant resources and can afford to target infinite numbers of niche markets
B)the lack of diversity among their employees and ad agencies and therefore should compensate by expanding ethnocentrism
C)operate on the cutting edge of social evolution
D)government regulations require them to do so
E)will gain greater respect among industry members by doing so

Question 48

One of the reasons many companies are struggling with their multicultural marketing efforts is:

A)multiculturals are not targeted by ad campaigns
B)the lack of diversity among their employees and ad agencies
C)subcultures that value fun over work are hard to target
D)multicultural groups mostly have similar tastes and preferences as non-multicultural groups
E)the small size of multicultural markets does not justify the expense

Question 49

For which of the following products might one argue that advertising has created needs rather than responded to them?

A)automobiles
B)milk
C)canned soup
D)designer jeans
E)calculators

Question 50

are critical of advertising that:

A)portrays women in traditional sexist roles
B)contributes to the problem of violence against women
C)is insulting to women
D)stereotypes women
E)does any of the above

Question 51

Which of the following statements describes how advertising portrays women?

A)Advertising is often criticized for portraying women as sexual objects.
B)While sexism and stereotyping of women still exist,advertising's portrayal of women has improved in recent years.
C)Many advertisers depict women in a diversity of roles since their place in society has changed in recent years.
D)Stereotypical portrayals of women show them as lacking intelligence and credibility.
E)All of the above statements describe how advertising portrays women.

Question 52

Which of the following statements describes the portrayal of African-Americans and Hispanics in advertising?

A)The use of African-Americans in advertising has increased and the depiction of their social and role status has improved.
B)The use of African-Americans in advertising has increased,but their depictions often emphasize stereotypical roles.
C)The use of Hispanics in advertising has increased dramatically.
D)The use of Hispanics in television advertising has increased,but the manner in which they are depicted has worsened.
E)All of the above statements describe the portrayal of African-Americans and Hispanics in advertising.

Question 53

According to economist John Kenneth Galbraith,advertising:

A)encourages more consumption than would take place without advertising
B)has little effect on total consumption
C)eventually will result in lower quality standards
D)greatly increases consumer prices
E)is unnecessary

Question 54

Asian-Americans are:

A)not targeted by ad campaigns
B)underrepresented in advertisements in terms of their proportion in the U.S.
C)portrayed in ads as a subculture that values fun over work
D)less likely than any other minority group to appear in U.S.ads
E)accurately described by all of the above

Question 55

Advertisers might exert influence on the media by:

A)exerting control over the editorial content of magazines
B)exerting pressure on the media to limit their coverage of a controversial story that might reflect negatively on a company
C)using economic censorship
D)influencing the program content on television
E)doing all of the above

Question 56

According to those who believe advertising does NOT have an adverse effect on consumer values,advertising:

A)is a major determinant of society's taste and values
B)creates the Protestant ethic
C)is solely accountable for the increase in materialism due to its nature and power
D)is merely a reflection of society's tastes and values
E)cannot create needs but only exploit existing ones

Question 57

Advertisers point to the fact that products supported by multimillion-dollar advertising campaigns often fail in the marketplace as evidence that:

A)consumers have the freedom to make choices
B)advertisers cannot manipulate people to buy what they do not want or need
C)it is extremely difficult to make consumers purchase something they do not see having a personal benefit.
D)consumers ignore ads
E)all of the above

Question 58

Critics who argue advertising makes people buy things they don't really need would probably be opposed to all of the following forms of advertising EXCEPT:

A)ads that use fear appeals to create anxiety among consumers
B)advertising that encourages materialism
C)advertising on objective factors such as price,performance,and good or service characteristics
D)ads that uses fear of social rejection to sell a product
E)advertising that encourages consumption

Question 59

Critics of advertising claim advertising makes consumers buy things they do not need use,but its proponents argue that:

A)this charge attributes too much power to the power of advertising to make consumers do things against their will
B)this charge ignores the fact consumers have the freedom to make up their own minds and make their own choices when confronted with advertising
C)if this charge is correct,products with multimillion-dollar advertising budgets should not fail--but the reality is many do
D)because many of our lower level needs are satisfied,it is natural that consumers might buy products that are advertised as appealing to the satisfaction of higher order needs
E)all of the above are valid arguments against the charge that advertising makes consumers buy things they do not need

Question 60

Which of the following statements describes advertising targeted to African-Americans and Hispanics?

A)For many years,advertisers ignored African-Americans and Hispanics as identifiable subcultures and viable markets.
B)Over the past two decades,marketing and advertising programs targeted at African-American consumers have decreased.
C)Advertising has never used stereotypical Hispanics or African-Americans.
D)Over the past two decades,the number of Hispanics used in advertising has increased significantly.
E)All of the above statements accurately describe advertising targeted to African-Americans and Hispanics.

Question 61

Many economists argue advertising can have a detrimental effect on competition by:

A)creating barriers to entry that results in less competition and higher prices
B)allowing unfair comparative advertising
C)minimizing the importance of pricing and distribution strategy
D)allowing products like Hershey chocolate bar to dominate their product category
E)lessening the importance of good budgeting strategies

Question 62

Economists argue advertising can have a negative effect on consumer choice by:

A)using market aggregation
B)reducing the opportunities for new products to be introduced
C)enabling companies to differentiate their products and services,charge higher prices,and achieve a dominant market position
D)creating brand monopolies
E)doing all of the above

Question 63

Consumer advocates argue that:

A)money spent on advertising is an expense that must be covered and is generally passed on to the consumer
B)consumers are only willing to purchase heavily advertised brands and thus will end up paying more for them
C)advertising makes markets more competitive,which in turns requires more advertising and more price competition
D)advertising makes consumers purchase products and services for irrational reasons
E)advertising reduces the market power of large companies

Question 64

Which of the following is an argument against the charge that advertisers control the media?

A)The most effective strategy for media is to allow itself to be influenced by advertisers.
B)The media needs advertisers more than any individual advertisers need the media.
C)Many media have a narrow base of advertiser support and cannot afford to lose advertisers who attempt to exert control over them.
D)To retain public confidence,the media must report the news fairly without showing any bias or attempt to avoid controversial topics.
E)All of the above are arguments against the charge that advertisers control the media.

Question 65

Which of the following statements can be used to refute the argument that advertising reduces the number of choices available to consumers?

A)Advertising can be used to create and maintain brand loyalty for dominant brands.
B)Dominant brands can afford to spend more on advertising and that makes it difficult for smaller brands to compete against them.
C)Heavily advertised brands dominate the market in certain product categories such as soft drinks,beer,and cereal.
D)Advertising can be used to inform consumers of new brands and offer them as an alternative to existing brands.
E)All of the above refute the argument that advertising reduces the number of choices available to consumers.

Question 66

Some economists argue the reason Nike has such a high market share in the athletic shoe industry is because the company spends much more on media advertising and for endorsement contracts than other shoe manufacturers.This makes it difficult for new companies to enter the industry and compete against Nike because it has created:

A)economies of scale
B)barriers to entry
C)economic censorship
D)unfair competition
E)high market share

Question 67

Which of the following alternatives to an advertiser-supported media system would run counter to most Americans' desire for freedom of the press?

A)a system supported by higher subscription rates for newspapers and magazines
B)a pay-per-view television system
C)government-sponsored media
D)a monthly fee for a preset number of television viewing hours
E)none of the above

Question 68

A situation where a company creates conditions making it difficult for other firms to enter a market is known as:

A)a barrier to entry
B)economies of scale
C)differentiation
D)market dominance
E)a market blockade

Question 69

Some critics of Dove's "Real Beauty" campaign suggest the company's message is:

A)self-censorship by the corporation since it leads to reduced bonds between the consumers and their products
B)corrupting children by portraying beauty as an international commodity
C)a contribution to social change
D)a contradiction since it suggests you need Dove products to be beautiful
E)self-defeating since it has resulted in declining sales Ethical Perspective 22-4.

Question 70

Advertising can have a positive effect on competition by:

A)assisting new products in the market by making it possible for them to communicate the features and benefits of their products to consumers
B)serving as an entry barrier to foreign competitors
C)making it easier for small companies to compete against firms with large advertising budgets
D)limiting the number of new product introductions
E)creating economies of scale for both small and large advertisers

Question 71

For many years Rolex watches and Colt firearms spent very little money on advertising yet were successful brands.The success of these products can be interpreted as evidence that:

A)product quality and image are important determinants of success
B)advertising increases product costs and prices
C)advertising is a barrier to entry
D)advertising is never really needed for a brand to be successful
E)luck plays a major role in the success of a product

Question 72

Which of the following statements show how advertising can increase the cost of a product?

A)Advertising facilitates economies of scale.
B)Advertising increases the retail turnover rate of products making small markups possible.
C)Advertising creates added value to a product through differentiation and makes consumers more price inelastic.
D)Advertising encourages comparison shopping between brands.
E)Advertising can make a market more competitive.

Question 73

Which of the following is an argument against the charge that advertisers control the media?

A)It is in the best self-interest of the media not to be influenced too much by advertisers.
B)Advertisers need the media more than the media needs any individual advertiser.
C)Many media have a broad base of advertiser support and can afford to lose individual advertisers who attempt to exert control over them.
D)To retain public confidence,the media must report the news fairly without showing any bias or attempt to avoid controversial topics.
E)All of the above are arguments against the charge that advertisers control the media.

Question 74

Which of the following statements does NOT describe an economic defense for advertising?

A)Advertising leads to an increased standard of living.
B)Advertising stimulates new product development.
C)Advertising provides useful information for buying decisions.
D)Advertising adds to the cost of products.
E)Advertising leads to economies of scale in production.

Question 75

Dove's "Real Beauty" campaign used a tagline stating:

A)"Talk to your daughter before the beauty industry does"
B)"Beauty is in the eye of the beholder"
C)"First there was beauty,then the beast"
D)"Real beauty is the real thing"
E)"Age before beauty" See Ethical Perspective 22-4.

Question 76

Procter & Gamble spends over $2 billion annually on advertising for its various consumer products and can make large media purchases at rates lower than its smaller competitors.This is an example of how a large advertiser can achieve a competitive advantage based on:

A)differentiation
B)economies of scale
C)economic censorship
D)discrimination
E)market aggrandizement

Question 77

When a newspaper editor talks about "The Wall," he or she is referring to:

A)the difference between veteran and cub reporters
B)the formal separation of the newspaper's news staff and business department
C)how difficult it is to get interviews with certain celebrities
D)the separation of classified advertising from the other advertising that commonly appear in newspapers
E)the lowest possible ad placement rate

Question 78

Marketers that argue advertising is NOT a barrier to market entry contend:

A)large volumes of advertising are necessary to compete in many industries
B)there are economies of scale in advertising
C)advertising is only one factor contributing to the large scale effects which are the fundamental deterrent to market entry
D)in the cereal industry,profits are the highest among the heaviest advertisers
E)there is no relationship between intensity of advertising and market share

Question 79

A good example of a relatively homogeneous product,which through advertising has achieved perceived brand differentiation is:

A)Bayer aspirin
B)Rolex watches
C)Rolls Royce automobiles
D)umbrellas
E)concrete blocks

Question 80

Magazine and newspaper publishers have traditionally argued that they keep advertisers from influencing the editorial content of their publications by:

A)separating editorial and advertising offices
B)barring the advertising sales force from reading articles before they are published
C)prohibiting editorial employees from participating in advertising sales calls
D)refusing to give favorable editorial consideration to a company simply because it advertises in their publication
E)doing all of the above