Intro to Advertising Quiz

True or False. Advertising helps the economy function smoothly by providing information that keeps prices low and facilitates the entry of new firms.

True or False. Advertising helps the economy function smoothly by providing information that keeps prices low and facilitates the entry of new firms.

True

Advertising is considered a powerful tool because it ___

provides valuable information and fosters competition.

What role does advertising play in the U.S. economy in terms of its percentage of the nation’s economic activity?

Advertising accounts for roughly 2% of the U.S. economic activity.

What best describes the Communication Loop in advertising?

Sender —> Message —> Receiver

How did the Industrial Revolution impact the development of advertising in America?

The Industrial Revolution created mass-produced goods, which led to more competition, making advertising essential to inform consumers and differentiate products.

The average consumer is exposed to as many as 10,000 advertising messages daily. True or False

True

What is the AIDA model in Advertising?

Awareness, Interest, Decision, Action

What are the four strategies that advertisers use to command a receiver’s attention?

They are using visuals, invoking emotions, creating a strong headline, and using colors and contrast.

What mode of persuasion is based on credibility?

Ethos

What is the Diffusion of Innovation process in advertising, and what are the five groups of adopters?

It describes how new ideas spread through a population. The five groups of adopters are Innovators, Early Adopters, Early Majority, Late Majority, and Laggards.

Primary data is usually less expensive than secondary data. True or False

False

Qualitative research is more commonly associated with __?

Focus Groups and Interviews

What are the advantages and disadvantages of using primary data for advertising research?

Advantages: It is specific to the research question and up to date.

Disadvantages” It can be expensive and time-consuming.

What is NOT a benefit of using secondary data?

It’s specifically tailored to the current campaign.

What is a focus group, and what are some disadvantages of this research method?

A focus group is a small group discussion led by a moderator. Disadvantages include small sample sizes and potential bias due to group dynamics.

The first step in the segmentation, targeting, and position process is targeting. True or False.

False (The first step is segmentation)

What is an example of psychographic segmentation

Personality and lifestyle

What is the 80/20 rule in behavioral segmentation?

The 80/20 rule suggests that 80% of a company’s sales come from 20% of its customers.

What does the acronym “DMA” refer to in geographic segmentation?

Designated Market Area

What are the three dimensions of positioning, and how do they influence advertising?

The three dimensions are functional (benefits), emotional (feelings), and symbolic (self-expression). These influence how a brand is perceived by the consumer.

In top-down budgeting, the amount spent on advertising is based on future goals, not past sales. True or False.

False

The objective-and-task method is an example of:

Bottom-up budgeting

What is the share of voice (SOV) metric, and why is it important in advertising?

SOV measures a brand’s advertising presence compared to competitors. It’s important because a higher SOV can lead to higher market share.

What is a challenge when using ROI as a metric for advertising?

It’s difficult to interpret the impact of specific ads on overall profit.

Why is ROI important for advertisers, and how should it be used effectively?

ROI helps measure the effectiveness of ad campaigns in generating profit. It should be used alongside other metrics, considering both short- and long-term goals.