Test Bank For Advertising And Integrated Brand Promotion 6th Edition By Thomas O’Guinn

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ISBN-13: 978-0538473323 ISBN-10: 0538473320

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Test Bank For Advertising And Integrated Brand Promotion 6th Edition By Thomas O’Guinn

Chapter 3 – The History of Advertising and Brand Promotion

TRUE/FALSE

1.When the Western world turned to capitalism as the foundation of an economic system, the foundation was also laid for advertising.

ANS: T DIF: Easy REF: p. 81 OBJ: 3-1

NAT: AACSB Communication | CB&C Model Promotion TYP: Knowledge

2.Advertising is a source of information and persuasive ideas regarding a society’s products and services, but it is no longer essential to the competition for resources in a capitalistic society.

ANS: F DIF: Easy REF: p. 81 OBJ: 3-1

NAT: AACSB Communication | CB&C Model Promotion TYP: Comprehension

3.The Industrial Revolution was an economic force that yielded the need for advertising.

ANS: T DIF: Easy REF: p. 81 OBJ: 3-1

NAT: AACSB Communication | CB&C Model Promotion TYP: Knowledge

4.The expansion and connection of the U.S. highway system by the late 1860s created the beginnings of a nationwide distribution network.

ANS: F DIF: Easy REF: p. 82 OBJ: 3-1

NAT: AACSB Technology | CB&C Model Distribution TYP: Knowledge

5.In the late 1880s, a few companies began putting names and labels on previously unmarked products, and branding began.

ANS: T DIF: Moderate REF: p. 82 OBJ: 3-2

NAT: AACSB Strategy | CB&C Model Promotion TYP: Comprehension

6.Folgers coffee, Miller beer, Dial soap, and Pepsi-cola were some of the first branded goods on store shelves.

ANS: F DIF: Moderate REF: p. 82 OBJ: 3-2

NAT: AACSB Strategy | CB&C Model Promotion TYP: Comprehension

7.Widespread branding of products among almost limitless categories, in the way we think of it today, was seen in the U.S. by the late 1800s.

ANS: F DIF: Easy REF: p. 82 OBJ: 3-2

NAT: AACSB Strategy | CB&C Model Promotion TYP: Comprehension

8.It was found early on that branding has its own power. If consumers demanded Ivory soap, then grocers had better stock it.

ANS: T DIF: Moderate REF: p. 82 OBJ: 3-2

NAT: AACSB Communication | CB&C Model Strategy TYP: Comprehension

9.In the late 1800s, consumers were willing to pay more for brands than for unmarked commodities, even if they were otherwise identical.

ANS: T DIF: Difficult REF: p. 82 OBJ: 3-2

NAT: AACSB Communication | CB&C Model Pricing TYP: Comprehension

10.During the mid-1800s, a number of magazines were launched, though circulation was limited because they were designed for socially privileged audiences and not the mass public.

ANS: F DIF: Easy REF: p. 83 OBJ: 3-2

NAT: AACSB Communication | CB&C Model Customer TYP: Knowledge

11.In the mid-1800s, mass-circulation magazines began to make national advertising possible, and national advertising began to make national brands possible.

ANS: T DIF: Difficult REF: p. 83 OBJ: 3-2

NAT: AACSB Reflective Thinking | CB&C Model Promotion TYP: Comprehension

12.Without the rise of mass media, there would have been no national brands because there would have been no national advertising.

ANS: T DIF: Difficult REF: p. 83 OBJ: 3-2

NAT: AACSB Reflective Thinking | CB&C Model Promotion TYP: Comprehension

13.Media vehicles—television networks,  radio stations, newspapers, magazines, and websites—exist so they can sell audiences and make money.

ANS: T DIF: Difficult REF: p. 83 OBJ: 3-2

NAT: AACSB Communication | CB&C Model Promotion TYP: Comprehension

14.The Chicago Tribune featured what is considered the first newspaper ad in the U.S., when it printed two notices under the heading of “Advertising” in the early 1880s.

ANS: F DIF: Moderate REF: p. 83 OBJ: 3-3

NAT: AACSB Communication | CB&C Model Promotion TYP: Knowledge

15.Newspaper publication expanded rapidly during the Industrial period, to the point where circulation of the dailies was up to 10 million copies a day nationwide by 1850.

ANS: F DIF: Moderate REF: p. 84 OBJ: 3-3

NAT: AACSB Communication | CB&C Model Distribution TYP: Comprehension

16.Advertising was totally unregulated during the Industrial era, and advertisers took this opportunity to lie, cheat, and deceive with no worry about punishment.

ANS: T DIF: Moderate REF: p. 84 OBJ: 3-3

NAT: AACSB Communication | CB&C Model Strategy TYP: Comprehension

17.Advertising of the early 1800s was widely considered a tawdry embarrassment, with a status so low that firms risked their credit ratings due to their advertising, because banks considered its use a sign of financial weakness.

ANS: T DIF: Moderate REF: p. 84 OBJ: 3-3

NAT: AACSB Communication | CB&C Model Strategy TYP: Comprehension

18.By about 1900, an increase in the supply of mass-produced goods, and in the demand for these goods by a growing urban population, led to the growth of advertising.

ANS: T DIF: Difficult REF: p. 85 OBJ: 3-3

NAT: AACSB Communication | CB&C Model Strategy TYP: Comprehension

19.The first regulatory initiative by the federal authorities that would exert strict regulations on many levels of advertising and promotion was the Pure Food and Drug Act.

ANS: F DIF: Easy REF: p. 85 OBJ: 3-3

NAT: AACSB Ethics | CB&C Model Promotion TYP: Knowledge

20.Manufacturers were required to list the active ingredients in their products after passage of the Pure Food and Drug Act in the early 1900s.

ANS: T DIF: Moderate REF: p. 85 OBJ: 3-3

NAT: AACSB Ethics | CB&C Model Promotion TYP: Knowledge

21.The Pure Food and Drug Act actually had only a minimal effect on advertising, since it really didn’t restrict advertiser’s claims.

ANS: T DIF: Moderate REF: p. 85 OBJ: 3-3

NAT: AACSB Ethics | CB&C Model Promotion TYP: Knowledge

22.The prewar movement to reform and regulate advertising was pretty much dissipated in the 1920s by the distractions of war and advertising’s role in the war effort.

ANS: T DIF: Moderate REF: p. 86 OBJ: 3-3

NAT: AACSB Communication | CB&C Model Promotion TYP: Comprehension

23.Men became the major target of advertisers in the 1920s, because they were the heads of households and the keepers of finances.

ANS: F DIF: Moderate REF: p. 87 OBJ: 3-3

NAT: AACSB Communication | CB&C Model Customer TYP: Comprehension

24.Demonstrations dominated the advertising of the 1920s, detailing product use and benefits step-by-step, and remaining one of the most popular and successful forms of ad communication to this day.

ANS: F DIF: Moderate REF: p. 87-88 OBJ: 3-3

NAT: AACSB Communication | CB&C Model Strategy TYP: Comprehension

25.In 1924, Bruce Barton blended capitalist and religious principles in his book, The Man Nobody Knows, allowing readers to resolve their conflicts over religious warnings of excess and the country’s new consumer culture.

ANS: T DIF: Moderate REF: p. 89-90 OBJ: 3-3

NAT: AACSB Communication | CB&C Model Customer TYP: Comprehension

26.Advertisers responded to the Depression by adopting a tough, no-frills style in their ads.

ANS: T DIF: Moderate REF: p. 90 OBJ: 3-3

NAT: AACSB Communication | CB&C Model Promotion TYP: Comprehension

27.Even during the widespread poverty of the Great Depression, advertising still maintained its high-class status and continued to be viewed as glamorous and inviting.

ANS: F DIF: Easy REF: p. 90-91 OBJ: 3-3

NAT: AACSB Communication | CB&C Model Promotion TYP: Comprehension

28.During the 1950s, a renewed consumer culture resumed, and advertising once again found the respectability and fame it had in its heyday of the 1920s.

ANS: F DIF: Moderate REF: p. 93 OBJ: 3-3

NAT: AACSB Communication | CB&C Model Promotion TYP: Comprehension

29.After WWII and into the 1950s, ads began to take on an air of self-awareness, conveying the sentiment that “you know it’s an ad and so do we.”

ANS: F DIF: Moderate REF: p. 93 OBJ: 3-3

NAT: AACSB Communication | CB&C Model Promotion TYP: Comprehension

30.The “creative revolution” was a period of time in which advertising started to take on the themes, language, and look of the revolutionary 1960s.

ANS: T DIF: Moderate REF: p. 95 OBJ: 3-3

NAT: AACSB Communication | CB&C Model Promotion TYP: Comprehension

31.Advertising directed at children had become a booming business by the 1970s, with spending of about $200 million a year.

ANS: T DIF: Easy REF: p. 102 OBJ: 3-3

NAT: AACSB Ethics | CB&C Model Customer TYP: Comprehension

32.In the 1970s, groups such as Action for Children’s Television lobbied the government to strictly regulate content of children’s television shows and ban all advertising that specifically targeted children.

ANS: F DIF: Moderate REF: p. 102 OBJ: 3-3

NAT: AACSB Ethics | CB&C Model Customer TYP: Comprehension

33.Television advertising during the 1980s was influenced by the serious social issues explored in the new wave of independent films seen at that time.

ANS: F DIF: Difficult REF: p. 106 OBJ: 3-3

NAT: AACSB Technology | CB&C Model Promotion TYP: Knowledge

34.The mid-1990s presented scary moments for those heavily invested in traditional advertising.

ANS: T DIF: Moderate REF: p. 106-107 OBJ: 3-3

NAT: AACSB Communication | CB&C Model Promotion TYP: Comprehension

35.By the mid-1990s, after decades of friendly rivalry among agencies across the country, New York was finally accepted as the center of the global advertising universe.

ANS: F DIF: Easy REF: p. 108 OBJ: 3-3

NAT: AACSB Communication | CB&C Model Promotion TYP: Comprehension

36.In the 1990s, the advertising world moved away from the East Coast, with agencies springing up in Minnesota, California, Oregon, and Washington, as well as in international hot spots such as London and Singapore.

ANS: T DIF: Moderate REF: p. 108 OBJ: 3-3

NAT: AACSB Communication | CB&C Model Promotion TYP: Comprehension

37.Procter & Gamble is an example of a giant corporation that has continued to invest heavily in new ways to connect with consumers, including interactive websites that gather data, test new product ideas, and reach global audiences.

ANS: T DIF: Moderate REF: p. 110 OBJ: 3-4

NAT: AACSB Technology | CB&C Model Online/Computer TYP: Comprehension

38.While online advertising continues to grow, the massive audiences and net revenues of television are still very attractive to today’s businesses.

ANS: T DIF: Moderate REF: p. 114 OBJ: 3-5

NAT: AACSB Technology | CB&C Model Promotion TYP: Comprehension

MULTIPLE CHOICE

1.The rise of advertising is linked to the rise of capitalism in America, and is a natural feature of any capitalistic economic system, because it

a.

can stimulate demand, which, in turn, attracts revenue.

b.

lays the groundwork for an industrial revolution.

c.

reduces competition for scarce resources.  

d.

is actively encouraged by capitalistic governments.

ANS: A DIF: Difficult REF: p. 81 OBJ: 3-1

NAT: AACSB Communication | CB&C Model Promotion TYP: Comprehension

2.A number of economic and social elements fell in place that ultimately encouraged the expansion of advertising in the U.S. But which of the following is not one of the major factors credited for contributing to the rapid growth of advertising?

a.

the economics of the Great Depression

b.

the emergence of modern mass media

c.

the process of branding

d.

the rise of capitalism   

ANS: A DIF: Moderate REF: p. 81 OBJ: 3-1

NAT: AACSB Communication | CB&C Model Promotion TYP: Comprehension

3.Much investment capital was needed to finance the Industrial Revolution in the U.S. during the 1840s. The ____ emerged as way for individuals to reduce the risk of the loss of personal wealth when investing in business ventures.

a.

creation of business insurance

b.

principle of limited liability

c.

concept of privatization

d.

first government underwriting  

ANS: B DIF: Difficult REF: p. 82 OBJ: 3-1

NAT: AACSB Communication | CB&C Model Pricing TYP: Comprehension

4.A number of economic and social changes occurred during the Industrial Revolution that helped develop the role of advertising as a business communication. Many sweeping changes occurred almost simultaneously, but which of the following was not one of these changes?

a.

growth of rural areas and decrease in number and size of cities

b.

dependency on a marketplace as a way of live

c.

development of the railroad    

d.

reduced risk for people forming corporations

ANS: A DIF: Moderate REF: p. 82 OBJ: 3-1

NAT: AACSB Communication | CB&C Model Promotion TYP: Comprehension

5.Why did national firms begin putting their names on household goods and investing in promotions for them? 

a.

because they were limited in what they could say based on copyrights     

b.

because they were protected by the principle of limited liability

c.

because brands commanded a higher price than unmarked commodities

d.

because consumers wanted a way to identify various products

ANS: C DIF: Moderate REF: p. 82 OBJ: 3-2

NAT: AACSB Communication | CB&C Model Strategy TYP: Comprehension

6.By the late 1800s, manufacturers were developing brand names so that consumers could

a.

decrease distribution channels.     

b.

transfer the power to the retailer.

c.

focus their attention on a clearly identified item.

d.

find the similarities between products.

ANS: C DIF: Moderate REF: p. 82 OBJ: 3-2

NAT: AACSB Communication | CB&C Model Product TYP: Knowledge

7.How did many early marketers establish a degree of power with their brands? 

a.

by getting consumers to identify them and pay higher prices for them 

b.

by making them seem normal and ordinary so consumers would easily accept them 

c.

by forcing general stores and grocers to replace unmarked products with their branded ones   

d.

by becoming widely recognized and defeating any branded competitors in the market

ANS: A DIF: Difficult REF: p. 82 OBJ: 3-2

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