JMC 3303 QUIZ 3 QUESTIONS AND
ANSWERS
Companies spend money on advertising because it increases sales of existing
products. All of the following are additional reasons companies spend money on
advertising EXCEPT: - Correct Answers --*guarantees product acceptance by the
market*
-takes sales away from competitors
-builds brand loyalty
-helps grow adoption of new products
By providing information, advertising reduces consumers' search costs and disutility
from picking the wrong products. This perspective is called the _______. - Correct
Answers -economics of information
All of the following are common objections we hear about advertising EXCEPT
_______. - Correct Answers --ads make us feel bad about ourselves as they constantly
throw images of perfect, beautiful people in our faces
-ads invade our privacy
-*ads constantly subliminally suggest that we should smoke, drink alcohol, and have
poor morals*
-ads reinforce insulting ethnic and racial stereotypes
The FTC's (Federal Trade Commission) Division of Advertising Practices enforces
federal truth-in-advertising laws. True or false? - Correct Answers -True
If a company misleads consumers about a product's environmental benefits, it is guilty
of _______. - Correct Answers -greenwashing
Advertising is used to stimulate the sales of new products. What percentage of new
products fail? - Correct Answers -40-80 percent
Which of the following statements most accurately describes advocacy advertising? -
Correct Answers -It intends to influence public opinion about an issue relevant to some
or all members of a society.
Jeff is part of a group that is trying to reduce what it sees as rampant commercialism in
all of our mass media. By sending out counter-messages, Jeff's group hopes to disrupt
ANSWERS
Companies spend money on advertising because it increases sales of existing
products. All of the following are additional reasons companies spend money on
advertising EXCEPT: - Correct Answers --*guarantees product acceptance by the
market*
-takes sales away from competitors
-builds brand loyalty
-helps grow adoption of new products
By providing information, advertising reduces consumers' search costs and disutility
from picking the wrong products. This perspective is called the _______. - Correct
Answers -economics of information
All of the following are common objections we hear about advertising EXCEPT
_______. - Correct Answers --ads make us feel bad about ourselves as they constantly
throw images of perfect, beautiful people in our faces
-ads invade our privacy
-*ads constantly subliminally suggest that we should smoke, drink alcohol, and have
poor morals*
-ads reinforce insulting ethnic and racial stereotypes
The FTC's (Federal Trade Commission) Division of Advertising Practices enforces
federal truth-in-advertising laws. True or false? - Correct Answers -True
If a company misleads consumers about a product's environmental benefits, it is guilty
of _______. - Correct Answers -greenwashing
Advertising is used to stimulate the sales of new products. What percentage of new
products fail? - Correct Answers -40-80 percent
Which of the following statements most accurately describes advocacy advertising? -
Correct Answers -It intends to influence public opinion about an issue relevant to some
or all members of a society.
Jeff is part of a group that is trying to reduce what it sees as rampant commercialism in
all of our mass media. By sending out counter-messages, Jeff's group hopes to disrupt
