FBLA Advertising Practice test

All of the processes used to identify, create, and maintain exchange relationships that satisfy individuals and organizations make up

A) customer service.

B) promotion.

C) marketing.

D) distribution.

C

Consumer demand is influenced by all of the following except

A) economy.

B) weather.

C) promotion.

D) price.

B

The marketing concept determines planning, production, pricing, distribution, and promotion of products and services based upon

A) customers.

B) forecasts.

C) government.

D) business

A

Marketing that targets consumers who underwent the same experiences and events while growing up is referred to as

A) target marketing.

B) cohort marketing.

C) mass marketing.

D) generational marketing.

D

The final step in the sales process is

A) follow up.

B) closing the sale.

C) presenting the product.

D) overcoming objectives.

A

The first contact that the salesperson makes with the customer is called the

A) approach.

B) preapproach.

C) introduction.

D) lead.

A

Which of the following activities will not help improve sales performance?

A) informing sales staff about new merchandise

B) setting sales goals

C) allowing salespeople to work without monitoring

D) having sales staff meetings

C

Since new small businesses do not have funds available for expensive forms of promotion, they count on

A) endorsements.

B) sales promotion.

C) advertising.

D) word-of-mouth promotion.

D

All of the following are traditional types of advertising media except

A) radio.

B) newspaper.

C) social media.

D) television.

C

One of biggest disadvantages associated with television advertising is the

A) use of sight and sound.

B) large, diverse audience.

C) long lead time.

D) low cost per viewer.

C

The amount of time required to produce and place an advertisement is called

A) production time.

B) on air time.

C) prime time.

D) lead time.

D

The number of times a person is exposed to an advertisement is called

A) frequency.

B) reach.

C) span.

D) gross impression.

A

Advertisements that run in movie theaters before the start of movies is called

A) a gross impression.

B) cinema advertising.

C) a trailer.

D) product placement.

B

Advertising on public buses and subways is called

A) aerial advertising.

B) transit advertising.

C) an advertising wrap.

D) mobile advertising.

B

One of the fastest growing forms of online advertising is

A) video advertising.

B) aerial advertising.

C) product placement advertising.

D) directory advertising

A

An unwanted online communication that is sent out in mass is called

A) spam.

B) a pop-up ad.

C) phishing.

D) bait and switch.

A

The combination of unique qualities of a company, product, or product line is called a(n)

A) trademark.

B) industry.

C) product line.

D) brand.

D

The value that a company realizes from having a product with a recognizable name is called

A) brand awareness.

B) brand image.

C) generic brand.

D) brand equity.

D

Changing consumers' perception about a brand is called

A) branding.

B) positioning.

C) introducing.

D) repositioning.

D

Starbucks' image is largely based on providing a coffee experience and lifestyle for its consumers. Based on this, which positioning strategy should Starbucks' use?

A) competitor positioning

B) user positioning

C) benefit positioning

D) usage positioning

B

An increase in the general level of prices for products and services resulting in a decrease in purchasing power is called

A) recession.

B) stagflation.

C) inflation.

D) prosperity

C

The amount of money remaining for spending and saving after taxes and other essential expenses are paid is called

A) gross income.

B) disposable income.

C) discretionary income.

D) net income.

C

The total dollar value of all products and services produced by a country within a certain time period is called

A) gross domestic product.

B) net domestic product.

C) net worth.

D) gross assets.

A

Advertising stimulates sales and the economy in all of the following ways except by

A) growing the gross domestic product.

B) decreasing competition.

C) adding value to products and services.

D) generating jobs.

B

AIDA is an acronym that stands for all of the following except

A) attention.

B) action.

C) demand.

D) interest.

C

All of the following are elements of the promotional mix except

A) advertising.

B) public relations.

C) budget.

D) personal selling.

C

When a company is developing a promotional plan, the first step is to determine the

A) target market.

B) budget.

C) promotional mix.

D) promotional objectives.

A

One of the biggest advantages of advertising is

A) the emotional connection with the target market.

B) credibility that consumers associate with the products and services being advertised.

C) the low cost of reaching large audiences.

D) guaranteed increase in sales.

A

Companies use campaigns that help the public develop a better understanding of the company, its products, and its philosophies. Those campaigns are part of

A) advertising.

B) press releases.

C) publicity.

D) public relations.

D

Which of the following is not an example of a public relations activity?

A) sponsoring the local county fair

B) volunteering to clean up the local park after a major storm

C) advertising a new product

D) donating computers to the elementary school

C

Which of the following elements is not part of the SWOT Analysis?

A) stakeholders

B) threats

C) opportunities

D) weaknesses

A

When it comes to advertising, businesses are highly interested in the amount earned from the action. This is referred to as

A) return on investment (ROI).

B) cost per click.

C) net profit.

D) net profit

A

A test that measures how much an audience remembers about an advertising message is called a

A) recall test.

B) recognition test.

C) perception test.

D) resonance test.

A

If the advertising campaign for a national company cost $100,000 and it generated $250,000 in additional sales, what is the ROI?

A) 1.5%

B) 150%

C) 15%

D) 250%

B

Kia uses hamsters to advertise their automobiles. This is a form of

A) musical advertising.

B) humorous advertising.

C) image advertising.

D) slice-of-life advertising.

B

The main purpose of an advertising campaign is often to

A) create favorable publicity.

B) influence consumers' behavior.

C) establish brand awareness.

D) dominate the competition.

B

Advertising that uses research or scientific evidence to promote a brand is

A) scientific advertising.

B) lifestyle advertising.

C) product demonstration advertising.

D) endorsement advertising.

A

Advertising that uses research or scientific evidence to promote a brand is

A) scientific advertising.

B) lifestyle advertising.

C) product demonstration advertising.

D) endorsement advertising.

C

Consumer-oriented sales promotions do not enable consumers to

A) buy higher quality products for lower prices.

B) identify ethical and unethical advertising.

C) save money through the use of coupons, rebates, and price deals.

D) try a product they otherwise would not have tried.

B

Which of the following is not true about sponsorships?

A) Sponsorships may involve local events or national events.

B) Any type of sponsorship will be looked on favorably by consumers.

C) Sponsorships can help companies stand out from competitors.

D) Companies should align sponsorships with the target market's values

B

The formula for determining profit is

A) Assets+Owner's Equity.

B) Liabilities + Owner's Equity.

C) Revenue-Expenses.

D) Assets-Liabilities.

C

An advertising budget based upon the amount of sales is called the

A) percentage of sales method.

B) objective and task method.

C) market share method.

D) response model.

A

A financial obligation or amount owed by a company is called a(n)

A) accounts receivable.

B) liability.

C) asset.

D) tangible asset.

B

Advertising budgets based upon the amount of money spent by competitors use the

A) market response model.

B) percentage of sales method.

C) competition-matching method.

D) objective and task method.

C

Consumers have needs for food, sleep, water, and shelter. These needs are referred to as

A) self-actualization needs.

B) physiological needs.

C) security needs.

D) esteem needs.

B

Businesses must realize that consumers have limited resources referred to as

A) wants.

B) assets.

C) needs.

D) scarcity.

D

The first step of the "consumer decision-making process" is to

A) recognize the problem.

B) search for information.

C) evaluate the purchase.

D) evaluate alternatives.

A

Purchasing a home for most consumers involves

A) routine decision making

B) extensive decision making.

C) limited decision making.

D) impulse buying.

B

Riley has always owned a BMW automobile because he likes the performance, look, and service associated with the car. When it is time to purchase a new car, Riley does not consider the competition. He goes directly to the BMW dealership. This is an example of a(n)

A) repeat purchase.

B) unsought purchase.

C) new purchase.

D) modified purchase.

A

Products that consumers purchase regularly without much planning are

A) unsought products.

B) specialty products.

C) convenience products.

D) shopping products.

C

Life insurance and prepaid funeral plans are examples of

A) unsought products.

B) specialty products.

C) convenience products.

D) shopping products.

A

Reasons to make a purchase based on feelings, beliefs, or attitudes are called

A) emotional motives.

B) rational motives.

C) buying motives.

D) patronage motives.

A

An organization or group of people that an individual identifies with and admires is called a

A) peer group.

B) target market.

C) reference group.

D) lifestyle group.

C

Consumer characteristics that include age, gender, race, marital status, income, education level, and occupation are classified as

A) geographics.

B) demographics.

C) niche marketing.

D) psychographics.

B

A strategy used to plan, execute, and monitor all promotional messages about a product to ensure consistency among all those messages is called

A) message monitoring.

B) consistent messaging.

C) communication consistency.

D) integrated marketing communication.

D

To identify the target market, a business creates

A) a profile of the typical customer who is likely to purchase its products.

B) a projected budget.

C) company objectives.

D) a strategic plan.

A

The attempt by an advertising campaign to make a product appealing to a large group of consumers is the purpose of

A) specialty marketing.

B) personalized marketing.

C) spam marketing.

D) mass marketing.

D

Which segmentation describes consumers based on their interests, attitudes, opinions, and lifestyles?

A) generational segmentation

B) demographic segmentation

C) geographic segmentation

D) psychographic segmentation

D

The characteristics exhibited by an individual who is likely to buy a business's products or services is referred to as the

A) demographic segmentation.

B) psychographic segmentation.

C) geographic segmentation.

D) customer profile.

D

The first stage of the product life cycle is the

A) introduction.

B) maturity.

C) growth.

D) decline.

A

Since millennials prefer the latest technology, Apple phones are in the _____ stage of the product life cycle.

A) introduction

B) decline

C) maturity

D) growth

C

When a product in the decline stage is out of date and no longer wanted, ______________ occurs.

A) obsolescence

B) recharge

C) renewal

D) transfusion

A

A business sets prices to maximize sales. The objective is to

A) earn a return on investment.

B) increase market share.

C) maximize profits.

D) create a price-quality image.

B

Setting a high price when a new product enters the market to emphasize the uniqueness of a product and to recover the product development costs quickly is called

A) penetration pricing.

B) price skimming.

C) price manipulation.

D) price gauging.

B

Emphasizing free oil changes the first 3 years for a new automobile is an example of

A) price competition.

B) nonprice competition.

C) psychological pricing.

D) price skimming.

A

Which of the following is not a channel member?

A) producers

B) advertisers

C) retailers

D) wholesalers

B

Which of the following channels of distribution is likely to be used in international markets?

A) producer to wholesaler to retailer to consumer

B) producer to consumer

C) producer to retailer to consumer

D) producer to agent to wholesaler to retailer to consumer

D

Railroad and boats are good modes of transportation for

A) large, bulky items.

B) emergency medications.

C) small parcels.

D) perishable products.

A

A farmer sells his or her vegetables at a roadside stand to consumers. This is an example of

A) indirect retailing.

B) direct retailing.

C) multiple channels of distribution.

D) informal distribution.

B

All of the businesses involved in the flow of products, services, resources, and information from the producer to the consumer are called

A) a product life cycle.

B) a supply chain.

C) direct marketing.

D) indirect marketing.

B

Packaging is designed to do all of the following except

A) decrease the price for the consumer.

B) promote products.

C) protect products.

D) maintain the product.

A

The use of marketing activities that provide extra value and buying incentives for customers is called

A) clearance sales.

B) endorsements.

C) inventory reduction.

D) sales promotions.

D

Product endorsements

A) must state factual information.

B) do not require the endorser to actually use the product.

C) are an inexpensive form of promotion.

D) are usually not effective with teenagers.

A

Visual merchandising should make the product all of the following except

A) easily accessible.

B) interesting.

C) special.

D) more secure.

D

The first step for marketing research is to

A) identify and define the problem.

B) analyze the data.

C) develop the research design.

D) collect the data.

A

Which of the following is not true about marketing research?

A) It helps companies track their progress.

B) It helps a company identify threats and opportunities.

C) It increases the risk of doing business.

D) It guides a company's communication with consumers.

C

Brand building sales promotions

A) are frequently related to price.

B) offer promotional rewards for repeat purchases.

C) are offered for a limited time only.

D) require minimal effort on the part of consumers.

B

A premium given by a manufacturer to a retailer for ordering a certain quantity of a product is called a

A) push money.

B) trade allowance.

C) POP opportunity.

D) deal loader.

D

_____ context is based on previous or similar experiences.

A) Relational

B) Historical

C) Cultural

D) Psychological

B

Supermarkets frequently use _____ to make consumers aware of new food products.

A) product contests

B) sampling

C) product rebates

D) premiums

B

_____ may include a spoken comment, a written message, a smile, or some other action, such as taking a survey, in response to a message.

A) Decoding

B) Feedback

C) Encoding

D) Context

B

A(n) ____ claim in an advertisement is made indirectly or by inference.

A) corrective

B) express

C) material

D) implied

D

The federal agency that regulates advertising is the

A) CPSC.

B) FDA.

C) USDA.

D) FTC.

D

The ___ ensures that food, cosmetics, drugs, and medical devices are safe and effective and labeled properly.

A) FCC

B) FDA

C) FTC

D) SEC

B

Which of the following acts regulates the use of trademarks?

A) FTC Act

B) Wheeler-Lea Act

C) Fair Packaging and Labeling Act

D) Lanham Act

D

Which of the following restrictions is not part of the Cigarette Labeling and Advertising Act?

A) Cigarette advertisements on radio and television are banned.

B) Smoking inside public buildings is banned.

C) Print advertisements for cigarettes must carry warnings.

D) Cigarette packages must carry warning labels.

B

Which of the following advertising practices is legal?

A) defamation

B) puffery

C) deception

D) endorsement

D

Advertising that plays on people's fears and guilt has all of the following characteristics except

A) it is often used for security systems and insurance products.

B) it is ineffective.

C) it highlights the negative consequences of not using a product.

D) it targets vulnerable consumers.

B

Cultures in which there is a high degree of separation between social classes would have a high score in which of the following categories?

A) collectivism

B) uncertainty avoidance

C) power distance

D) individualism

C

____ prevents marketers from seeing important cultural differences among markets.

A) Globalization

B) Visual diversity

C) Ethnocentrism

D) Infrastructure

C

Cultures whose members are more self-centered would have a high score in which of the following categories?

A) uncertainty avoidance

B) individualism

C) power distance

D) collectivism

B

The implicit communicator

A) uses a communication style common in the United States.

B) conveys information that is vague or has an implied meaning.

C) bases decisions on logic and facts.

D) conveys information in a concise, direct, and structured manner.

B

Cultures whose members are more self-centered would have a high score in which of the following categories?

A) individualism

B) power distance

C) collectivism

D) masculinity

A

Who was responsible for spurring the growth of outdoor advertising?

A) Ben Franklin

B) John Hardy

C) T. Barnum

D) Paul Harvey

C

The use of advertising to support and improve the environment is known as

A) ethical marketing.

B) healthy marketing.

C) social marketing.

D) green marketing.

D

Which of the following statements about workplace bullying is false?

A) It can involve belittling or offensive remarks.

B) It can have a negative effect on work performance.

C) It refers to a single incident in the workplace.

D) It is intended to intimidate or humiliate an employee.

C

Which of the following is not a soft skill?

A) problem-solving

B) graphic design

C) listening

D) time management

B

The ability to motivate and direct a group of people is called

A) delegation.

B) leadership.

C) initiative.

D) manipulation.

B

Which of the following traits is not common among those working in the advertising industry?

A) stays on top of trends

B) is creative

C) is persuasive

D) avoids socializing with others

D

Businesses track what's being said about them and their products and post self-promotional messages through the use of

A) Blogs.

B) Facebook.

C) Twitter.

D) You Tube.

C