Question

11) The type of advertising that enhances a company`s image rather than

promotes a particular product is called ____.

a. Institutional advertising

b. Product advertising

c. Earned advertising

d. Owned advertising

12)

The type of advertising that can be used in all of the product life cycle is

called ____.

a. Institutional advertising

b. Product advertising

c. Earned advertising

d. Owned advertising

13)

The last step in advertising campaign is ____.

a. Define advertising objectives

b. Make creative decisions

c. Make media decisions

d. Evaluate the campaign

14)

In setting advertising objectives, we should define ____.

a. Target audience

b. Desired percentage change

c. Time frame for change

d. All of the above

15)

In terms of United Airline crisis management, UA should ____.

a. respond quickly

b. respond truthfully

c. have a communication plan in place

d. All of the above

16)

During Black Friday, Mike paid $599 for a laptop originally priced at $999, he

believed the laptop is of good quality because the original price is high, this

example showed the ____effect of price.

a. Sacrifice

b. Information

c. Values

d. Needs

17)

The pricing objective used by some firm in which the firm just follow the

competitor`s price is called ____ pricing.

a. Profit oriented

b. Sales oriented

c. Status quo

d. None of the above

18)

The pricing objective used by some firm in which the firm tries to maximize

the market share is called ____ pricing.

a. Profit oriented

b. Sales oriented

c. Status quo

d. None of the above

19)

Equilibrium price is achieved when ____

a. Demand=Supply

b. Demand>Supply

c. Demand<Supply

d. None of the above

20)

The break-even point is achieved when

a. Total revenue=Total cost

b. Total revenue>Total cost

c. Total revenue<Total cost

d. None of the above

Answer 1

11. Ans: a. Institutional Advertising - It is the kind of advertisement aimed to promote, a company or an industry, rather than a product or service.

12. Ans: b. Product Advertising- It is the method of advertising in order to introduce and create an awareness regarding the product to potential customers.

13. Ans: d. Evaluate the campaign – The impact of the campaign needs to be evaluated finally to understand the effectiveness. This helps in assessment and suggestions on further improvements.

14. Ans: d. All of the above – The advertising objectives must be based on the target audience, the desired change that needs to be the outcome of the campaign and the timeframe within which the change is supposed to happen.

15. Ans: d. All of the above – The crisis must be addressed immediately and genuinely. The communication should also be effective in order to reduce information distortion and ambiguity.

16. Ans: b. Informational Effect of Price – This is the phenomenon in which the customers find a higher price to be a representative of the higher quality of the goods.

17. Ans: c. Status Quo – The kind of pricing that is followed in accordance with the competitive firms are known as Status Quo pricing.

18. Ans: b. Sales Oriented – The pricing objective which is aimed at increasing the market share by increasing the sales volume is known as sales-oriented pricing.

19. Ans: a. Demand = Supply – When demand and supply are equal, the equilibrium price can be achieved.

20. Ans: a. Total Revenue = Total Cost – The no profit and no loss situation when the revenue is equal to the cost, it is known as the break-even point.

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