Product Description


1) Any communication by a retailer that informs, persuades, and/or reminds the target market about any aspect of that firm is ________.

A) advertising

B) public relations

C) retail promotion

D) the retail communication channel

2) The four elements of ________ are advertising, public relations, personal selling, and sales promotion.

A) communication

B) selling

C) communication channel

D) promotion

3) Which form of promotion has media payment, a nonpersonal presentation, out-of-store mass media, and an identified sponsor?

A) sales promotion

B) advertising

C) public relations

D) personal selling

4) Which retailer has the highest dollar advertising expenditures among U.S. retailers?

A) Sears Holding

B) McDonald’s

C) Atlantic & Pacific Tea Company

D) General Motors Cooperative Dealer Association

5) A major difference between the advertising strategies of retailers and manufacturers is that retailers ________.

A) are more prone to use broadcast media than manufacturers

B) typically have broader geographic target markets

C) have more geographically concentrated target markets than manufacturers

D) are more concerned with image-related advertising

6) Which type of small retailer can have a geographically dispersed trading area?

A) convenience store

B) variety store

C) direct seller

D) direct marketer

7) In cooperative advertising, ________.

A) a trade association promotes the advantages of a new product in order to increase sales

B) two or more channel members share promotional costs

C) a retailer promotes a manufacturer’s brand as being on sale

D) a retailer promotes its own dealer brand as being on sale

8) A major advantage of advertising as a retail medium is that ________.

A) there are no media costs

B) it can focus on the needs of individual customers

C) the costs per viewer, reader, or listener are low

D) credibility is high

9) Which characteristic of advertising as a retail medium is correct?

A) Media rates are generally higher for retailers than manufacturers.

B) Since a large number of media are available, retailers are generally able to match a medium to a target market.

C) A strength of advertising is its ability to tailor messages to specific target markets.

D) Advertising messages are generally long (in terms of time or space).

10) A major disadvantage of advertising as a retail medium is that ________.

A) many media utilize standardized messages that are inflexible

B) few alternative media are generally available

C) the costs of reaching a viewer, reader, or listener are high

D) retail control over message timing and content is low

11) Retailers spend the highest proportion of their advertising budgets in which medium?

A) telephone directories

B) direct mail

C) newspapers

D) flyers/circulars

12) A medium’s circulation covers a broader geographic region than that containing the retailer’s target market. This concept is referred to as ________.

A) waste

B) lead time

C) trading-area overlap

D) throw-away rate

13) An advantage of a Yellow Pages listing is the ________.

A) free listing

B) absence of clutter

C) long medium life

D) alphabetical listing that does not contain competing retailers in the same section

14) A characteristic of direct mail is a ________.

A) high response rate

B) low throw-away rate

C) highly targeted audience

D) long lead time

15) Which medium is associated with a low response rate and a high throwaway rate?

A) local magazine

B) weekly newspaper

C) daily newspaper

D) direct mail

16) Which medium is characterized by large-size ads and zoning difficulties?

A) flyers/circulars

B) telephone directories

C) outdoor advertising

D) direct mail

17) A(n) ________ ad should be used to communicate a new retailer opening in a market area.

A) pioneer

B) reminder

C) competitive

D) institutional

18) An advertisement in a local newspaper, featuring low interest-rate financing for consumers that purchase a top-of-the-line refrigerator, illustrates a(n) ________ ad.

A) institutional

B) competitive

C) reminder

D) pioneer

19) Image-related advertising illustrates a(n) ________ advertisement.

A) pioneer

B) reminder

C) competitive

D) institutional

20) Vertical cooperative advertising agreements are subject to the ________.

A) Consumer Goods Pricing Act

B) Federal Trade Commission Act

C) Robinson-Patman Act

D) Sherman Antitrust Act

21) In a horizontal cooperative advertising agreement, ________.

A) a manufacturer (or wholesaler) and a retailer share an ad

B) retailers’ payment for an ad is based on their yearly sales of a particular product

C) competing retailers share an ad and its cost

D) two or more retailers share an ad

22) A major difference between advertising and publicity is based upon ________.

A) media used

B) media payment

C) message flexibility

D) message type

23) A major advantage of public relations versus advertising is ________.

A) the source of the communication is more credible

B) the high control over a message and its timing, placement, and coverage

C) the high degree of message customization

D) no costs for a public relations staff

24) A major disadvantage of public relations versus advertising is ________.

A) high costs for message time or space

B) little retailer control over a message and its timing, placement, and coverage

C) no carryover effects

D) less attention paid to public relations than to clearly identified advertisements

25) A major advantage of personal selling is ________.

A) the immediate feedback that is provided

B) the large number of consumers that can be reached at one point in time

C) the low costs of reaching each target customer

D) low total costs for salaries, travel, and entertainment

26) Which type of salesperson is generally associated with a self-service retail environment?

A) a sales engineer

B) a closer

C) an order-taking salesperson

D) an order-getting salesperson

27) PMs are best defined as ________.

A) promotional allowances paid to retailers by manufacturers and wholesalers for shelf space

B) rebates and other discounts given to buyers to induce their purchase of a manufacturer’s products

C) point-of-purchase promotions developed by manufacturers to increase store traffic

D) additional compensation paid to retail salespeople by a manufacturer based on sales of its products

28) The promotion form that focuses on short-run sales performance is ________.

A) advertising

B) public relations

C) sales promotion

D) personal selling

29) Which sales promotion form seeks to develop store loyalty?

A) prizes

B) referral gifts

C) sweepstakes

D) frequent shopper programs

30) The most complex method of establishing an overall promotional budget is the ________.

A) objective-and-task method

B) percentage-of-sales technique

C) incremental method

D) all-you-can-afford method

31) The overall stages in a consumer’s purchase process from awareness to purchase is depicted in the ________.

A) consumer brand choice model

B) hierarchy of effects model

C) brand loyalty model

D) Howard-Sheth model

32) Which promotional forms are ideal for generating awareness in the hierarchy of effects model?

A) advertising and public relations

B) advertising and sales promotion

C) personal selling and sales promotion

D) personal selling and public relations

33) The efficiency of a medium can be most accurately assessed through evaluating its ________.

A) waste circulation or coverage

B) cost per thousand

C) passalong rate

D) paid circulation

34) Extensive media coverage refers to ________.

A) low reach with high frequency

B) low reach with low frequency

C) high reach with low frequency

D) high reach with high frequency

35) In a massed advertising effort, ________.

A) reach is stressed over frequency

B) salesmanship is stressed

C) retailers promote throughout the year

D) promotion is concentrated in seasonal periods

36) A difficulty associated with the use of national magazines by an independent retailer with a narrow trading area is ________.

A) high waste in geographic coverage

B) low control over timing and placement of advertisements

C) long lead time

D) absence of discounts based on the number of insertions

37) Manufacturers utilize cooperative advertising agreements with retailers ________.

A) to decrease retailer waste in advertising

B) as a means of channel control

C) to take advantage of the lower rates offered to retailers

D) to comply with the Robinson-Patman Act

38) An important advantage of advertising in comparison to personal selling is the ________.

A) high ability to persuade a consumer

B) high message flexibility

C) low cost of reaching a target market member

D) low waste circulation

39) Which medium offers a retailer the greatest control in reaching a targeted geographic area?

A) Yellow Pages

B) direct mail

C) daily newspapers

D) radio

40) Which medium has the highest message permanence?

A) radio

B) direct mail

C) weekly newspaper

D) telephone directories

41) A local computer retailer desires to reach a targeted audience consisting of past customers. The retailer is offering “computer tune-ups” consisting of removal of duplicate files, virus scanning and removal, and performing diagnostic work on the system’s major hardware components. Which medium is most appropriate in reducing waste?

A) direct mail

B) shopper

C) radio

D) daily newspaper

42) The creation of regional or zoned editions, superior graphics, and the availability of color have increased retailers’ use of ________.

A) telephone directories

B) magazines

C) outdoor advertising

D) direct mail

43) Which type of retailer ad is most likely to include a product’s price?

A) institutional advertisement

B) pioneer advertisement

C) reminder advertisement

D) competitive advertisement

44) The short space and long lead time make outdoor advertising least appropriate for what form of advertisements?

A) institutional

B) pioneer

C) reminder

D) competitive

45) A retailer stresses its community service in a current advertising campaign. This illustrates a(n) ________ ad.

A) institutional

B) pioneer

C) reminder

D) competitive

46) Since vertical cooperative advertising agreements fall under the scope of the Robinson-Patman Act, a manufacturer ________.

A) must offer similar agreements to all retailers on a proportionate basis of their purchases

B) cannot offer cooperative advertising agreements to competing merchants

C) must reduce other allowances by the size of the cooperative advertising allowance

D) must require that all ads meet set criteria in terms of size and adherence to suggested list price

47) Noncompeting retailers can share advertisements in media with broad geographic circulation. This strategy represents a ________.

A) competitive advertisement

B) pioneer advertisement

C) vertical cooperative advertising agreement

D) horizontal cooperative advertising agreement

48) The major strategic difference between advertising and public relations relates to ________.

A) identification of the sponsor

B) control over the message by the marketer

C) the method of presentation

D) effectiveness

49) If advertising and personal selling are classified as marketer-dominated, then public relations is classified as ________-dominated.

A) media

B) consumer

C) government

D) trade association

50) The effectiveness of a retailer’s public relations department can be determined by evaluating ________.

A) its overall budget

B) store recognition levels

C) store image positioning by target-market customers

D) the comparable value in space if generated by advertising

51) Most retail salespersons in self-service operations are ________.

A) sales engineers

B) sales managers

C) order-taking salespersons

D) order-getting salespersons

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