Chapter 10 Alternative Marketing

1) Red Bull was first introduced in Scotland.

Answer: FALSE
Diff: 2 Page Ref: 270

2) Red Bull's entry into the United States is viewed by many marketing experts as one of the first
and classic uses of alternative and buzz marketing.
Answer: TRUE
Diff: 1 Page Ref: 270

3) The marketing team introduced Red Bull into the United States through "consumer educators"
who traveled to various locations in the United States giving out few samples.
Answer: TRUE
Diff: 2 Page Ref: 270

4) The Internet is beginning to suffer from increasing advertising clutter.

Answer: TRUE
Diff: 1 Page Ref: 271

5) To introduce the Australian Ugg brand in the United States, the marketing team focused on
fashion-conscious consumers through a mix of traditional and alternative marketing tactics.
Answer: FALSE
Diff: 3 Page Ref: 271

6) The goal of alternative media programs is to identify new places where a consumer's path
intersects with a brand's presence.
Answer: TRUE
Diff: 1 Page Ref: 272
Objective: 10-1

7) The idea behind alternative marketing is to replace traditional media with newer forms of
media that are more successful at reaching consumers.
Answer: FALSE
Diff: 2 Page Ref: 272
Objective: 10-1

8) Guerilla marketing is also known as word-of-mouth marketing.

Answer: FALSE
Diff: 1 Page Ref: 272
Objective: 10-1

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9) Buzz marketing emphasizes consumers passing along information about a product to other
consumers.
Answer: TRUE
Diff: 1 Page Ref: 272
Objective: 10-1

10) A brand or product recommendation from one person to another carries a higher level of
credibility than does an advertisement or a paid spokesperson.
Answer: TRUE
Diff: 1 Page Ref: 272
Objective: 10-1

11) In buzz marketing, the ideal situation occurs when a company can sponsor an individual as
an agent or brand advocate for a brand that the person truly likes.
Answer: FALSE
Diff: 2 Page Ref: 273
Objective: 10-1

12) Many companies sponsor individuals as agents or advocates to introduce new products.
Answer: TRUE
Diff: 1 Page Ref: 273
Objective: 10-1

13) Brand ambassadors or customer evangelists are typically individuals who were loyal to
competitor's brand, but have switched to the sponsor's brand because of the incentives offered.
Answer: FALSE
Diff: 2 Page Ref: 273
Objective: 10-1

14) Companies select brand ambassadors and customer evangelists based on their devotion to the
brand and the size of their social circles.
Answer: TRUE
Diff: 2 Page Ref: 273
Objective: 10-1

15) To increase their effectiveness, brand ambassadors that are sponsored by a company are
asked to hide their connection with the brand.
Answer: FALSE
Diff: 3 Page Ref: 273
Objective: 10-1

16) Carlos has never tried Red Bull. Hayden has, and really likes it. Carlos would be a better
selection for a brand ambassador for Red Bull than would Hayden.
Answer: FALSE
Diff: 3 Page Ref: 273
Skill: AACSB: Reflective thinking
Objective: 10-1

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17) Having company employees, or employees of a company's advertising agency, pose as a
customer to generate buzz marketing is a risky strategy.
Answer: TRUE
Diff: 1 Page Ref: 273
Objective: 10-1

18) The Word of Mouth Marketing Association encourages companies that use their employees
to generate buzz marketing through posing as a customer to be honest and share both their
positive and negative thoughts about the company's products.
Answer: TRUE
Diff: 3 Page Ref: 274
Objective: 10-1

19) Buzz marketing can be compared to a virus, consisting of three stages: inoculation,
introduction, and infection.
Answer: FALSE
Diff: 3 Page Ref: 274
Objective: 10-1

20) During the inoculation stage of buzz marketing, the product is being used by a few
innovators or trendsetters.
Answer: FALSE
Diff: 3 Page Ref: 274
Objective: 10-1

21) During the incubation stage of buzz marketing, the product is being used by a few innovators
or trendsetters.
Answer: TRUE
Diff: 3 Page Ref: 274
Objective: 10-1

22) During the infection stage of buzz marketing, the product is being introduced to the market.
Answer: FALSE
Diff: 3 Page Ref: 274
Objective: 10-1

23) During the infection stage of buzz marketing, it is virtually impossible to generate word-of-
mouth communications from actual customers.
Answer: FALSE
Diff: 3 Page Ref: 274
Objective: 10-1

24) For buzz marketing to be successful, the brand must stand out and have a distinct advantage
over current products on the market.
Answer: TRUE
Diff: 3 Page Ref: 274
Objective: 10-1

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25) Buzz marketing works because people trust someone else's opinion more than paid
advertising and because people like to share their opinions.
Answer: TRUE
Diff: 2 Page Ref: 274
Objective: 10-1

26) Guerilla marketing programs are designed to obtain instant results while using limited
resources.
Answer: TRUE
Diff: 2 Page Ref: 274
Objective: 10-3

27) Guerilla marketing involves using traditional marketing tools to reach consumers with a
controversial message.
Answer: FALSE
Diff: 1 Page Ref: 275
Objective: 10-3

28) Guerilla marketing involves interacting with consumers to create excitement that will spread
by word-of-mouth communications.
Answer: TRUE
Diff: 2 Page Ref: 275
Objective: 10-3

29) The starting point for guerilla marketing typically involves discovering the touch points with
customers.
Answer: TRUE
Diff: 3 Page Ref: 275
Objective: 10-3

30) Product placement is the integration of entertainment and advertising by embedding brands
into the storyline of a movie, television, show, or other entertainment medium.
Answer: FALSE
Diff: 1 Page Ref: 276
Objective: 10-2

31) Branded entertainment is defined as the insertion of a brand or product into a movie,
television show, or some other media program with the purpose of influencing viewers.
Answer: FALSE
Diff: 1 Page Ref: 276
Objective: 10-2

32) Advertisers believe that product placements lead to increased brand awareness and a more
positive attitude toward the brand.
Answer: TRUE
Diff: 2 Page Ref: 276
Objective: 10-2

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33) One disadvantage of brand placement is the high cost-per-viewer, especially for movies.
Answer: FALSE
Diff: 3 Page Ref: 276
Objective: 10-2

34) The use of branded entertainment increased sharply with the rise of reality television shows.
Answer: TRUE
Diff: 3 Page Ref: 277
Objective: 10-2

35) The primary goal of product placements and branded entertainment is to increase sales of the
brand being featured.
Answer: FALSE
Diff: 3 Page Ref: 277
Objective: 10-2

36) Brand insertions are the most effective when they seem to logically fit the show or story.
Answer: TRUE
Diff: 2 Page Ref: 277
Objective: 10-2

37) For some companies, an advantage to product placements in movies is that it bypasses most
of the legislation and guidelines that are in place to control advertising directed towards children
and young adults.
Answer: TRUE
Diff: 2 Page Ref: 278
Objective: 10-2

38) A brand's appeal is stronger when it is shown in a nonadvertising context, such as in product
placements and branded entertainment.
Answer: TRUE
Diff: 2 Page Ref: 278
Objective: 10-2

39) For movie makers and television producers, the primary motivation behind using product
placements and branded entertainment is it creates a positive attitude towards the movie or show
and increases viewership.
Answer: FALSE
Diff: 2 Page Ref: 278
Objective: 10-2

40) Lifestyle marketing involves identifying marketing methods associated with the hobbies and
entertainment venues of the target audience.
Answer: TRUE
Diff: 1 Page Ref: 278
Objective: 10-1

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41) Sebastian is the marketing manager of a local restaurant. He has decided to set up a booth at
an outdoor concert being held at the city park to pass out free samples of food and to give
attendees coupons that can be used at the restaurant. This is an example of lifestyle marketing.
Answer: TRUE
Diff: 3 Page Ref: 278
Skill: AACSB: Reflective thinking
Objective: 10-1

42) One specialized form of product placement can be products placed in video games.
Answer: TRUE
Diff: 2 Page Ref: 279
Objective: 10-2

43) The fastest growing segment of online video gamers is 15- to 29-year-old males.
Answer: FALSE
Diff: 2 Page Ref: 279
Objective: 10-1

44) The original and most widespread form of video game advertising is to have a brand
placement in the game.
Answer: TRUE
Diff: 1 Page Ref: 279
Objective: 10-1

45) The term advergames refers to the placement of ads and products in video games.
Answer: FALSE
Diff: 2 Page Ref: 280
Objective: 10-1

46) Advertising in online video games offer advertisers the luxury of using Web metrics that are
not available with other forms of product placement.
Answer: TRUE
Diff: 2 Page Ref: 280
Objective: 10-1

47) An advantage of advertising in online video games is that ads can be targeted to specific
demographic groups, location profiles that match where the person is playing, and specific types
of game players.
Answer: TRUE
Diff: 2 Page Ref: 280
Objective: 10-1

48) The primary disadvantage of product placements within video games is that the ad soon
becomes static and often is no longer noticed by the players.
Answer: TRUE
Diff: 1 Page Ref: 280
Objective: 10-1

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49) A new trend in escalator advertising is to place ads on the steps.
Answer: TRUE
Diff: 1 Page Ref: 281
Objective: 10-1

50) The initial reaction to advertising in nontraditional formats was strong, in recent years it has
lost its appeal due to clutter.
Answer: FALSE
Diff: 3 Page Ref: 282
Objective: 10-1

51) The majority of purchase decisions are still made in retail stores.
Answer: TRUE
Diff: 2 Page Ref: 282
Objective: 10-4

52) In a survey of consumers, the biggest impact on clothing purchases was in-store advertising.
Answer: TRUE
Diff: 2 Page Ref: 283
Objective: 10-4

53) The newest and most expensive in-store marketing tactic now in use is LED point-of-
purchase displays at the end of store aisles.
Answer: FALSE
Diff: 2 Page Ref: 283
Objective: 10-4

54) Digital media within a retail store now offers retailers the opportunity to customize messages
to fit particular retail stores and even the aisle within the store.
Answer: TRUE
Diff: 2 Page Ref: 283
Objective: 10-4

55) The number of potential viewers for an advertisement placed on Wal-Mart's in-store
television system is almost twice as large as an ad on one of the national newscasts.
Answer: TRUE
Diff: 3 Page Ref: 283
Objective: 10-4

56) POP is short for "Place on Page," an Internet advertising term to designate an ad placement.
Answer: FALSE
Diff: 1 Page Ref: 284
Objective: 10-4

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57) A point-of-purchase display is any form of special display that advertises merchandise.
Answer: TRUE
Diff: 1 Page Ref: 284
Objective: 10-4

58) The store shelf and point-of-purchase display represent the last chance for the manufacturer
to reach the consumer before a purchase is made.
Answer: TRUE
Diff: 3 Page Ref: 284
Objective: 10-4

59) For products in general, the majority of purchasing brand choices are made in the store,
which means point-of-purchase (POP) materials can have a large impact on the decision.
Answer: TRUE
Diff: 2 Page Ref: 284
Objective: 10-4

60) Manufacturers view point-of-purchase (POP) displays as a method to get a brand more
prominently displayed before customers in retail stores.
Answer: TRUE
Diff: 2 Page Ref: 284
Objective: 10-4

61) Retailers believe point-of-purchase (POP) materials should either boost sales for a particular
brand or draw customers to the store to purchase the brand.
Answer: FALSE
Diff: 3 Page Ref: 284
Objective: 10-4

62) Retailers prefer point-of-purchase (POP) materials that educate consumers and provide
information.
Answer: TRUE
Diff: 3 Page Ref: 284
Objective: 10-4

63) To be effective, a point-of-purchase (POP) display must clearly communicate the price of the
product.
Answer: FALSE
Diff: 2 Page Ref: 284
Objective: 10-4

64) A POP display usually has only about three-tenths of a second to capture a customer's
attention.
Answer: TRUE
Diff: 3 Page Ref: 285
Objective: 10-4

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65) The best POP displays are those that use LED technology and offer consumers a specific
discount on the product being promoted.
Answer: FALSE
Diff: 3 Page Ref: 285
Objective: 10-4

66) The most common reason retailers do not use POP displays furnished by manufacturers is
that the displays are made of corrugated cardboard and therefore tend to wear out quickly.
Answer: FALSE
Diff: 3 Page Ref: 285
Objective: 10-4

67) A retailer can only set up a fraction of the point-of-purchase (POP) displays sent by
manufacturers due to space limitations.
Answer: TRUE
Diff: 2 Page Ref: 285
Objective: 10-4

68) One method companies are using to measure the impact of point-of-purchase (POP) displays
is to utilize cash register data comparing before and after sales.
Answer: TRUE
Diff: 2 Page Ref: 285
Objective: 10-4

69) Using POS data to evaluate POP displays can help manufacturers strengthen partnerships
with retailers on the use of POP displays.
Answer: TRUE
Diff: 2 Page Ref: 285
Objective: 10-4

70) Static POP displays are on their way out. Retailers want digital interactive displays that
consumers will notice and displays with the capability of changing the message.
Answer: TRUE
Diff: 1 Page Ref: 286
Objective: 10-4

71) In recent years, manufacturers have made a greater effort to integrate POP displays with the
brand's advertising and marketing materials.
Answer: TRUE
Diff: 2 Page Ref: 286
Objective: 10-4

72) Many retailers are now selling advertising time on their in-store television networks to
manufacturers that will integrate the POP displays with ads on the in-store networks.
Answer: TRUE
Diff: 2 Page Ref: 286
Objective: 10-4

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73) Branded entertainment is the ultimate demonstration of brand loyalty and brand devotion.
Answer: FALSE
Diff: 1 Page Ref: 286
Objective: 10-5

74) In most cases there is a symbolic meaning behind a brand that links individuals to a brand
community and to other owners of the brand.
Answer: TRUE
Diff: 3 Page Ref: 286
Objective: 10-5

75) Through interactive marketing techniques, a company can create a brand community around
each of its brands.
Answer: FALSE
Diff: 3 Page Ref: 286
Objective: 10-5

76) Two reasons brand communities form are for social identity and bonding among the owners
of the brand.
Answer: TRUE
Diff: 3 Page Ref: 287
Objective: 10-5

77) One reason brand communities form is that the owners of the brand all tend to have common
characteristics and common lifestyles.
Answer: FALSE
Diff: 3 Page Ref: 287
Objective: 10-5

78) Although it is virtually impossible for companies to create brand communities, they can
facilitate and enhance the communities in which owners interact.
Answer: TRUE
Diff: 2 Page Ref: 287
Objective: 10-5

79) A company can enhance the development of brand communities by sponsoring events that
bring brand owners together, such as Cam Jeep.
Answer: TRUE
Diff: 1 Page Ref: 287
Objective: 10-5

80) If brand communities are to thrive, it is important that it be driven by brand owners and for
the company not to get involved.
Answer: FALSE
Diff: 2 Page Ref: 287
Objective: 10-5

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81) Alternative media is used almost exclusively in the United States.
Answer: FALSE
Diff: 1 Page Ref: 288
Objective: 10-1

82) Brand communities are not unique to the United States. They are developing in other
countries, such as China.
Answer: TRUE
Diff: 2 Page Ref: 288
Objective: 10-5

83) Red Bull was first launched in:

A) Australia
B) France
C) Scotland
D) the United States
Answer: A
Diff: 2 Page Ref: 270

84) Red Bull's entry into the United States is viewed by many marketing experts as one of the
first and classic uses of:
A) interactive media
B) alternative and buzz marketing
C) product placement and brand entertainment
D) guerilla marketing
Answer: B
Diff: 2 Page Ref: 270

85) In launching Red Bull in the United States, one of the key target markets was:
A) teenagers
B) males, 15-34 years of age
C) college students
D) innovators
Answer: C
Diff: 2 Page Ref: 270

86) Red Bull's marketing team created a group called "consumer educators" who:
A) provided classes on the benefits of Red Bull
B) wrote blogs to promote the benefits of Red Bull
C) created consumer-generated ads that ran on television and on the Internet
D) traveled to various locations giving out free samples
Answer: D
Diff: 3 Page Ref: 270

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87) When Red Bull launched its drink in the United States, competitors were:
A) slow to react
B) able to develop their own versions within just a few months
C) already developing their own versions
D) already introducing their own versions
Answer: A
Diff: 3 Page Ref: 271

88) Traditional mass media advertising faces many challenges with companies cutting
expenditures on these traditional media. The Internet:
A) is becoming the medium of choice for many companies
B) is also beginning to suffer from increasing clutter
C) is being chosen as a replacement for the mass media
D) will soon become the leading venue to reach consumers
Answer: B
Diff: 3 Page Ref: 271
Objective: 10-1

89) Ugg is the brand name for an Australian company that sells big, bulky sheepskin boots. To
introduce the brand in the United States, Ugg's marketing team targeted:
A) fashion-conscious consumers
B) female college students
C) high-profile fashion influencers
D) female socialites
Answer: C
Diff: 3 Page Ref: 272
Objective: 10-1

90) Developing alternative media programs requires:

A) strategic product placement and brand entertainment
B) an investment in online advertising
C) a large advertising budget
D) creativity and imagination
Answer: D
Diff: 2 Page Ref: 272
Objective: 10-1

91) The goal of alternative media programs is to identify:

A) new places were a consumer's path intersects with a brand's presence
B) unique venues where consumers hang out
C) the media habits of a brand's target market
D) the unique psychographic profile of a brand's target market
Answer: A
Diff: 3 Page Ref: 272
Objective: 10-1

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92) Forms of alternative media programs include the following, except:
A) buzz marketing
B) online marketing
C) product placement
D) guerilla marketing
Answer: B
Diff: 1 Page Ref: 272
Objective: 10-1

93) Word-of-mouth marketing is also known as:

A) guerilla marketing
B) lifestyle marketing
C) buzz marketing
D) brand entertainment
Answer: C
Diff: 1 Page Ref: 272
Objective: 10-1

94) The alternative marketing program that emphasizes consumers passing along information
about a product to other consumers is:
A) guerilla marketing
B) lifestyle marketing
C) product placement
D) buzz marketing
Answer: D
Diff: 1 Page Ref: 272
Objective: 10-1

95) Buzz marketing:

A) emphasizes consumers passing along information about a product to other consumers
B) is designed to obtain instant results while using limited resources
C) is the planned insertion of a brand or product into a movie, television show, or some other
media
D) is the integration of entertainment and advertising by embedding brands into the storyline of a
movie, television show, or other entertainment medium
Answer: A
Diff: 1 Page Ref: 272
Objective: 10-1

96) Buzz marketing is attractive to marketers because:

A) it reaches consumers where they live and where they like to go
B) recommendations by another person carries a higher level of credibility than does advertising
C) it reaches consumers in places that are not expected
D) it does not look like advertising
Answer: B
Diff: 2 Page Ref: 272
Objective: 10-1

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97) Buzz, or word-of-mouth, marketing can be generated in the following ways, except:
A) consumers who truly like a brand and tell others
B) consumers who like a brand and are sponsored by a company to tell others
C) companies developing user-generated ads or blogs
D) company or agency employees posing as customers of the company, telling others about the
brand
Answer: C
Diff: 3 Page Ref: 272
Objective: 10-1

98) In terms of buzz marketing, the ideal situation occurs when:

A) consumers who truly like a brand tell others
B) consumers who like a brand and are sponsored by a company to tell others
C) a company creates a blog about a brand and invites consumers to participate
D) company or agency employees posing as customers of the company, telling others about the
brand
Answer: A
Diff: 2 Page Ref: 273
Objective: 10-1

99) Which of the following consumers creates the most ideal form of buzz marketing for Guess
jeans.?
A) Vanessa truly likes Guess jeans and tells others about how nice they are
B) Because Trinity likes Guess jeans, Guess has sponsored her to tell others about the brand
C) Guess has created a blog about Guess jeans and invites consumers to participate and offer
their opinions, good and bad
D) Guess has one of its employees pose as a customer on her personal blog telling others about
how great the jeans are
Answer: A
Diff: 3 Page Ref: 273
Skill: AACSB: Reflective thinking
Objective: 10-1

100) Brand ambassadors or customer evangelists are typically individuals:

A) that have never used the product, but want to try it
B) who already like a brand and are asked to be an ambassador
C) who are heavy users of a product
D) that work for the brand's company
Answer: B
Diff: 3 Page Ref: 273
Objective: 10-1

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101) Companies normally select brand ambassadors for the buzz marketing programs based on:
A) the age, income, and gender matching the brand's target market
B) the level of acceptance of new products and new technologies
C) devotion to the brand and the size of their social circles, families, reference groups, and work
associates
D) their knowledge and experience with the brand
Answer: C
Diff: 2 Page Ref: 273
Objective: 10-1

102) In terms of generating buzz, brand evangelists are asked to:

A) conceal their identification with the company
B) reveal they are being sponsored by the company only when asked
C) identify they are sponsored by the brand, but not reveal the incentives and rewards they
receive
D) be upfront and honest about their connections with the brand
Answer: D
Diff: 2 Page Ref: 273
Objective: 10-1

103) In terms of buzz marketing, the most risky strategy is to use:

A) consumers who truly like a brand and tell others
B) consumers who like a brand and are sponsored by a company to tell others
C) company employees to create a blog on the company's Web site about a brand and then invite
consumers to participate
D) company or agency employees posing as customers of the company telling others about the
brand
Answer: D
Diff: 2 Page Ref: 273
Objective: 10-1

104) According to the Word of Mouth Marketing Association, the practice of using company
employees or agency employees to pose as customers is:
A) unethical unless the person is upfront and clearly identifies himself or herself as being with
the company
B) ethical or unethical depending on the context
C) acceptable as long as the employee is not paid to participate
D) acceptable as long as the person really uses and believes in the brand
Answer: A
Diff: 2 Page Ref: 273
Objective: 10-1

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105) The Word of Mouth Marketing Association provided the following guidelines for
companies that want to generate word-of-mouth communications through its employees, agency
employees, or brand sponsors, except:
A) be honest about the relationship the person has with the company, agency, and consumers
B) be honest about the type and level of compensation they are receiving
C) be honest in the opinion they present
D) be honest about identifying who they are
Answer: B
Diff: 3 Page Ref: 274
Objective: 10-1

106) Buzz marketing can be compared to a virus. The inoculation stage:

A) involves the product being adopted by the early majority
B) involves the product being used by a few innovators or trendsetters
C) corresponds to the product being introduced
D) involves widespread use of the product
Answer: C
Diff: 2 Page Ref: 274
Objective: 10-1

107) Buzz marketing can be compared to a virus. The incubation stage:

A) involves the product being adopted by the early majority
B) involves the product being used by a few innovators or trendsetters
C) corresponds to the product being introduced
D) involves widespread use of the product
Answer: B
Diff: 2 Page Ref: 274
Objective: 10-1

108) Buzz marketing can be compared to a virus. The infection stage:

A) involves the product being adopted by the early majority
B) involves the product being used by a few innovators or trendsetters
C) corresponds to the product being introduced
D) involves widespread use of the product
Answer: D
Diff: 2 Page Ref: 274
Objective: 10-1

109) In terms of using buzz marketing during the inoculation stage:

A) only a few companies have been successful
B) companies must rely on customers generating positive word-of-mouth communications
C) companies who use buzz marketing tend to be highly successful
D) companies must support the buzz marketing effort with a high volume of advertising
Answer: A
Diff: 3 Page Ref: 274
Objective: 10-1

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110) Research has indicated that to generate true word-of-mouth communications from actual
customers they must be aware of the brand, which requires:
A) the use of alternative marketing programs
B) advertising through traditional channels
C) guerilla marketing efforts
D) a high level of brand equity
Answer: B
Diff: 3 Page Ref: 274
Objective: 10-1

111) Preconditions of buzz marketing include the following, except:

A) the product must be unique, new, or perform better than current brands
B) the brand must stand out over current brands on the market
C) the brand must be well known and accepted by the majority of consumers
D) the brand must have distinct advantages over current brands on the market
Answer: C
Diff: 3 Page Ref: 274
Objective: 10-1

112) Buzz marketing works because consumers:

A) receive information that is not paid for by the company
B) receive information when it is not expected
C) can choose if they want to listen or not to the recommendation
D) trust the opinions of other people and people like to give their opinions
Answer: D
Diff: 1 Page Ref: 274
Objective: 10-1

113) Guerilla marketing:

A) emphasizes consumers passing along information about a product to other consumers
B) is designed to obtain instant results while using limited resources
C) is the planned insertion of a brand or product into a movie, television show, or some other
media
D) is the integration of entertainment and advertising by embedding brands into the storyline of a
movie, television show, or other entertainment medium
Answer: B
Diff: 1 Page Ref: 274
Objective: 10-3

114) The concept of guerilla marketing was created by:

A) Jay Livingstone
B) Conrad Hilton
C) the Marlboro company and Philip Morris
D) Jay Conrad Levinson
Answer: D
Diff: 3 Page Ref: 274
Objective: 10-3

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115) A paintball "cat shoot" (at a painting of a cat) designed to raise funds for the local humane
society while attracting attention and customers, is an example of:
A) guerilla marketing
B) lifestyle marketing
C) brand recognition development
D) poor marketing judgment due to alienating customers
Answer: A
Diff: 2 Page Ref: 275
Objective: 10-3

116) Guerilla marketing would include all of the following characteristics, except:
A) a national campaign
B) interacting with consumers
C) personal communications
D) excitement that will spread to others
Answer: A
Diff: 1 Page Ref: 275
Objective: 10-3

117) The goal of guerilla marketing is to find:

A) new ways to advertise and promote a brand
B) unique, unusual ways to shock consumers into noticing the brand and company
C) ways to build relationships with customers by getting them to react or do something
D) the lowest cost methods of marketing that effectively reach the target market
Answer: C
Diff: 3 Page Ref: 275
Objective: 10-3

118) The first step in guerilla marketing is to:

A) discover the "touch points" with consumers
B) develop an alternative media campaign
C) choose the right people to head the guerilla marketing campaign
D) engage consumers in a dialogue about the best methods of reaching them
Answer: A
Diff: 3 Page Ref: 275
Objective: 10-2

119) Which is associated with traditional marketing rather than guerilla marketing?
A) measure success by sales
B) measure success by profits
C) based on psychology and human behavior
D) aims messages at individuals and small groups
Answer: A
Diff: 2 Page Ref: 275
Objective: 10-3

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120) Which is associated with guerilla marketing rather than traditional marketing?
A) measure success by sales
B) grows by adding customers
C) grows through existing customers and referrals
D) aims messages at large groups
Answer: C
Diff: 3 Page Ref: 275
Objective: 10-3

121) All of the following concepts are associated with guerilla marketing, except:
A) requires energy and imagination
B) designed to obliterate the competition
C) aims messages at individuals and small groups
D) "you marketing," based on how we can help "you"
Answer: B
Diff: 3 Page Ref: 275
Objective: 10-3

122) Guerilla marketing is:

A) the best method for locating customers for a small business
B) not so much a method of marketing as a mentality or approach to marketing
C) a method a small business can use to obliterate the competition
D) based on a database marketing foundation
Answer: B
Diff: 3 Page Ref: 275
Skill: AACSB: Reflective thinking
Objective: 10-3

123) Product placement:

A) emphasizes consumers passing along information about a product to other consumers
B) is designed to obtain instant results while using limited resources
C) is the planned insertion of a brand or product into a movie, television show, or some other
media
D) is the integration of entertainment and advertising by embedding brands into the storyline of a
movie, television show, or other entertainment medium
Answer: A
Diff: 1 Page Ref: 276
Objective: 10-1

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124) The planned insertion of a brand or product into a movie, television show, or some other
media program with the purpose of influencing viewers is:
A) branded entertainment
B) product placement
C) lifestyle marketing
D) guerilla marketing
Answer: B
Diff: 1 Page Ref: 276
Objective: 10-2

125) Branded entertainment:

A) emphasizes consumers passing along information about a product to other consumers
B) is designed to obtain instant results while using limited resources
C) is the planned insertion of a brand or product into a movie, television show, or some other
media
D) is the integration of entertainment and advertising by embedding brands into the storyline of a
movie, television show, or other entertainment medium
Answer: C
Diff: 1 Page Ref: 276
Objective: 10-1

126) The integration of entertainment and advertising by embedding brands into the storyline of
a movie, television show, or other entertainment medium is:
A) lifestyle marketing
B) product placement
C) branded entertainment
D) guerilla marketing
Answer: C
Diff: 1 Page Ref: 276
Objective: 10-2

127) Product placements have been a part of motion pictures since:

A) the turn of the 21st century
B) about 1990
C) the rise of the popularity of television in the 1950s
D) the beginning of motion pictures in the 1890s
Answer: D
Diff: 2 Page Ref: 276
Objective: 10-2

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128) Advertisers believe that product placements:
A) increase the brand's equity and top choice scores
B) lead to increased awareness and more positive attitude toward the brand with only a few
isolated cases of sales increases
C) lead to increased awareness and more positive attitude toward the brand with a corresponding
increase in sales of the brand
D) work only if the product is related in some way to the theme of the television show or movie
Answer: B
Diff: 3 Page Ref: 276
Objective: 10-2

129) In most instances, the impact on sales of a product placement:

A) is immediate and large
B) is immediate, but small
C) is not immediate
D) seldom occurs at all
Answer: C
Diff: 2 Page Ref: 276
Objective: 10-2

130) One key advantage of brand placement is:

A) the instant acceptance of the brand by viewers
B) the acceptance of the brand by the actors in the show or movie
C) the endorsement of the brand by the actors in the show or movie
D) the low cost-per-viewer
Answer: D
Diff: 2 Page Ref: 276
Objective: 10-2

131) A major advantage of using branded entertainment is:

A) the brand is more accepted by the viewing audience
B) the brand is much more noticeable to the viewing audience
C) it costs less than product placement
D) its extremely low cost-per-viewer
Answer: B
Diff: 3 Page Ref: 277
Objective: 10-2

132) The use of branded entertainment increased sharply with the:

A) introduction of cable TV and the ability to target audience through specialty shows
B) increased interest in specialty shows like Extreme Makeover and Top Chef
C) rise of reality television shows where there is a lack of script and the focus is on the real
world
D) popularity of the American Idol shows and fan voting
Answer: C
Diff: 3 Page Ref: 277
Objective: 10-2

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133) The key factors that influence the effectiveness of product placement and branded
entertainment include the following, except:
A) media used
B) supporting promotional activities
C) consumer attitudes toward placements
D) costs
Answer: D
Diff: 2 Page Ref: 277
Objective: 10-2

134) The key factors that influence the effectiveness of product placement and branded
entertainment include the following, except:
A) placement characteristics
B) supporting promotional activities
C) regulations
D) costs
Answer: D
Diff: 2 Page Ref: 277
Objective: 10-2

135) Product placements and branded entertainment work because the primary goal is to:
A) increase brand awareness and liking
B) stimulate sales
C) build brand power
D) spur viewers to some type of action
Answer: A
Diff: 2 Page Ref: 277
Objective: 10-2

136) Budgets for product placements and branded entertainment have increased for the following
reasons, except:
A) a brand's appeal is stronger when it is shown in a nonadvertising context
B) the perception of what others think of a brand is important to consumers
C) seeing brands used in movies and television shows intensifies the desire to purchase the brand
D) seeing the brand used by other people provides postpurchase reassurance for individuals who
have already purchased the brand
Answer: C
Diff: 3 Page Ref: 278
Objective: 10-2

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137) For moviemakers and television producers, the primary motivation behind product
placements and branded entertainment is:
A) it increases interest in the show or movie
B) it makes the show or movie more real-like
C) feelings toward the brands used will transfer to the show or movie
D) money
Answer: D
Diff: 2 Page Ref: 278
Objective: 10-2

138) The future use of product placements and branded entertainment will depend on:
A) the level of clutter in the placements
B) the costs
C) viewer acceptance
D) the measured impact on sales
Answer: A
Diff: 2 Page Ref: 278
Objective: 10-2

139) Lifestyle marketing:

A) emphasizes consumers passing along information about a product to other consumers
B) is designed to obtain instant results while using limited resources
C) is the planned insertion of a brand or product into a movie, television show, or some other
media
D) involves identifying marketing methods associated with the hobbies and entertainment venues
of a target market
Answer: D
Diff: 1 Page Ref: 278
Objective: 10-1

140) Contacting consumers at places such as farmer's markets, bluegrass festivals, city-wide
garage sales, flea markets, craft shows, stock car races is :
A) alternative media venues
B) lifestyle marketing
C) branded entertainment
D) guerilla marketing
Answer: B
Diff: 1 Page Ref: 278
Objective: 10-1

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141) Identifying marketing methods associated with the hobbies and entertainment venues of a
target market is:
A) product placement
B) lifestyle marketing
C) branded entertainment
D) guerilla marketing
Answer: B
Diff: 1 Page Ref: 278
Objective: 10-1

142) Setting up a booth at a farmer's market or bluegrass festival to sell a related product is an
example of:
A) traditional advertising
B) lifestyle marketing
C) advocate programs
D) billboards
Answer: B
Diff: 2 Page Ref: 278
Objective: 10-1

143) When a new music store distributes literature and free key chains at a rock concert, the
group is engaging in:
A) lifestyle marketing
B) an illegal act
C) a sponsorship program
D) public relations' activities
Answer: A
Diff: 3 Page Ref: 278
Skill: AACSB: Reflective thinking
Objective: 10-1

144) A furniture store setting up a special display of massage chairs at a little league baseball
tournament is an example of:
A) generating leads
B) developing a unique market niche
C) lifestyle marketing
D) creating a clearly defined product
Answer: C
Diff: 3 Page Ref: 278
Skill: AACSB: Reflective thinking
Objective: 10-1

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145) In-game brand placement in video games has all of the advantages of product placement
and branded entertainment. In addition, it has the added benefit of:
A) being online
B) reaching females
C) reaching young males
D) interactivity
Answer: D
Diff: 3 Page Ref: 279
Objective: 10-1

146) All of the following are forms of video game advertising, except:
A) in-game advertisements
B) promogames
C) rotating in-game advertising
D) interactive ads
Answer: B
Diff: 1 Page Ref: 279
Objective: 10-1

147) The original and most widespread form of video game advertising is:
A) advergames
B) rotating in-game advertisements
C) to have a brand placement in the game
D) interactive ads
Answer: C
Diff: 3 Page Ref: 279
Objective: 10-1

148) Advergames are:

A) video games built around a brand
B) interactive ads placed within a video game
C) rotating ads placed within a video game
D) branded video games
Answer: D
Diff: 2 Page Ref: 280
Objective: 10-1

149) Advergames are:

A) very popular and are often played more than 500,000 times per day
B) the most popular if they are placed on the brand's Web site
C) played more if they are at a neutral site, such as Kewlbox.com
D) gaining in popularity with companies because the cost to advertise a brand on the game is free
Answer: A
Diff: 3 Page Ref: 280
Objective: 10-1

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Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
150) advertising in online video games offers the following benefits, except:
A) Web metrics that are not available with other forms of product placements
B) the attitude of the game player towards the ads
C) ability to track length of ad exposure in the game
D) how long and how often an individual plays a game
Answer: B
Diff: 3 Page Ref: 280
Objective: 10-1

151) The primary disadvantage of video game advertising or product placement is:
A) the difficulty of convincing game makers to put in the ads and product placements
B) the low response rate of game players
C) the ad or product placement becomes static and is no longer noticed
D) the high cost of developing ads for games
Answer: C
Diff: 2 Page Ref: 280
Objective: 10-1

152) The primary disadvantage of product placements within online video games is it will
become static and the players will no longer notice it. To combat this problem, a company called
Massive developed technology:
A) that allows players to choose the ad they want to see
B) that allows players to interact with the ad during the game
C) that allows players to use sponsored downloads, such as a particular brand of car in a racing
game
D) to change ads in the online game in real time as individuals play or each time they play
Answer: D
Diff: 3 Page Ref: 280
Objective: 10-1

153) An advantage to cinema advertising is:

A) the ads are being shown to a captive audience
B) there is very little clutter
C) the ads promote products that relate to the movie
D) movie goers pay more attention to the ads since they are waiting for the movie to start
Answer: A
Diff: 2 Page Ref: 280
Objective: 10-1

154) The newest trend in escalator advertising is to place ads on:

A) the moving rails
B) the steps
C) the walls along the escalator
D) the ceiling above the escalator
Answer: B
Diff: 2 Page Ref: 281
Objective: 10-1

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Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
155) In selecting alternative media to place advertisements, the goal is to:
A) find low-cost alternatives to replace traditional advertising
B) provide more opportunities for consumers to see an ad
C) find ways to either cut through ad clutter or go around clutter to reach people with a message
D) enhance traditional marketing efforts
Answer: C
Diff: 3 Page Ref: 282
Objective: 10-1

156) Funds devoted to in-store marketing is:

A) a very small percentage of the total advertising and marketing budget
B) a significant percentage of the total advertising and marketing budget
C) based on the expected increase in sales
D) determined by how much retailers use the point-of-purchase displays furnished by the
manufacturer
Answer: A
Diff: 2 Page Ref: 282
Objective: 10-4

157) In a survey of consumers regarding clothing purchases, the type of advertising that had the
most influence was:
A) print ads
B) in-store advertising
C) word-of-mouth communications
D) television ads
Answer: B
Diff: 2 Page Ref: 283
Objective: 10-4

158) The newest and most expensive in-store marketing tactic is:
A) end-of-aisle caps that are tied into the brand's marketing effort
B) electronic , automated shopping carts
C) carefully placing and using video screens and television monitors
D) digital point-of-purchase displays
Answer: C
Diff: 3 Page Ref: 283
Objective: 10-4

159) Digital media within a retail store offers retailers the opportunity to:
A) target specific consumers with specific products
B) sell advertising to manufacturers
C) increase the size of the shopping basket
D) customize messages to fit the particular retail store and even the aisle where the display is
located
Answer: D
Diff: 3 Page Ref: 283
Objective: 10-4

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160) POP stands for:
A) print-offer proposal
B) publicity over protocol
C) point-of-purchase
D) place of publication
Answer: C
Diff: 1 Page Ref: 284
Objective: 10-4

161) Point-of-purchase displays work toward which activity?

A) pull-demand strategy
B) brand parity
C) impulse buys
D) reciprocation
Answer: C
Diff: 2 Page Ref: 284
Objective: 10-4

162) Retailers want point-of-purchase displays that will:

A) boost sales for the store or draw customers into the store
B) boost sales for a particular brand
C) generate additional prospects
D) increase profit for the manufacturer
Answer: A
Diff: 2 Page Ref: 284
Objective: 10-4

163) To be effective, point-of-purchase displays must:

A) clearly communicate the product's attributes
B) offer a reduced price
C) match the store's advertising theme
D) utilize digital or LED displays
Answer: A
Diff: 3 Page Ref: 284
Objective: 10-4

164) The best, most effective POP displays utilize the following techniques, except:
A) integrate the brand's image into the display
B) integrate the display with current advertising and promotions
C) offers some type of price discount or promotional incentive
D) make the display dramatic to get attention
Answer: C
Diff: 3 Page Ref: 285
Objective: 10-4

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165) The best, most effective POP displays utilize the following techniques, except:
A) keep the color of the display down so the product and signage stand out
B) make the display versatile so it can be easily adapted by retailers
C) make the display reusable and easy to assemble
D) use corrugated cardboard for the display
Answer: D
Diff: 3 Page Ref: 285
Objective: 10-4

166) The best, most effective POP displays utilize the following techniques, except:
A) integrate the brand's image with the retailer's branding theme
B) integrate the display with current advertising and promotions
C) customize the display to fit the retailer's store
D) make the display easy to stock
Answer: A
Diff: 3 Page Ref: 285
Objective: 10-4

167) The most common reason retailers do not use point-of-purchase displays furnished by
manufacturers is that the displays are:
A) not customer-oriented
B) inappropriate for the channel
C) not effective in stimulating sales
D) inappropriate for the product being promoted
Answer: B
Diff: 3 Page Ref: 285
Objective: 10-4

168) The following are reasons retailers do not use point-of-purchase displays furnished by
manufacturers, except:
A) wrong size
B) inappropriate for the channel
C) poorly built
D) not accompanied by consumer promotion incentives
Answer: D
Diff: 3 Page Ref: 285

169) An effective way of measuring the impact of point-of-purchase displays is to use:

A) day-after redemption rates
B) Internet focus groups
C) point-of-sale (POS) cash register data
D) behavioral observation studies
Answer: C
Diff: 1 Page Ref: 285
Objective: 10-4

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170) The benefits to retailers of measuring the impact of POP displays with POS data include all
of the following, except:
A) helps retailers decide when to withdraw a particular POP display
B) allows retailers to identify the POP displays with the largest impact on sales
C) allows retailers to compare different POP displays in different stores
D) allows retailers to know which POP displays are effective in attracting customers into the
store
Answer: D
Diff: 3 Page Ref: 285
Objective: 10-4

171) The benefits to manufacturers for measuring the impact of POP displays with POS data
obtained from retailers include all of the following, except:
A) helps manufacturers to know when to move or withdraw a POP display from a retail store
B) allows manufacturers to measure the sales impact of different POP displays
C) can be used to strengthen relationships with retailers
D) provides information so manufacturers can improve POP displays
Answer: A
Diff: 3 Page Ref: 285
Objective: 10-4

172) Static point-of-purchase displays are on their way out. Retailers want:
A) branded entertainment displays
B) digital, interactive displays
C) LED displays that tie in with the retailer's brand theme
D) an inflatable component or mobile above the POP display
Answer: B
Diff: 2 Page Ref: 286

173) The following are new combination point-of-purchase approaches, except:

A) interface of the POP display with the manufacturer's computer system
B) interactive digital displays
C) integration of the POP display with the brand's advertising and marketing campaign
D) interface of digital technology with in-store networks
Answer: A
Diff: 3 Page Ref: 286

174) The ultimate demonstration of brand loyalty and brand devotion is:
A) a branded entertainment
B) guerilla marketing
C) a branded community
D) brand equity
Answer: C
Diff: 1 Page Ref: 286
Objective: 10-5

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175) A company or brand with a strong brand community displays the following characteristics,
except:
A) rich and long tradition
B) a unique position in the marketplace
C) a positive image
D) a high market share
Answer: D
Diff: 2 Page Ref: 286
Objective: 10-5

176) The following are reasons brand communities exist, except:

A) strong brand support
B) affirmation of the buying decision
C) social identity and bonding
D) swap stories
Answer: A
Diff: 2 Page Ref: 287
Objective: 10-5

177) The best example of a brand community is:

A) Jeep
B) Apple
C) Harley-Davidson
D) Toyota
Answer: C
Diff: 1 Page Ref: 287
Objective: 10-5

178) Companies can enhance a brand community spirit in the following ways, except:
A) create member benefits to encourage new customers to join the group
B) offer group members discounts on company merchandise
C) provide materials to the group that are not available anywhere else
D) involve firm employees in the group
Answer: B
Diff: 3 Page Ref: 287
Objective: 10-5

179) Companies can enhance a brand community spirit in the following ways, except:
A) sponsor special events and regular meetings
B) promote communications among members of the group
C) build a strong brand reputation
D) offer memberships to individuals who have not purchased the particular brand
Answer: D
Diff: 3 Page Ref: 287
Objective: 10-5

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180) Identify the four major forms of alternative marketing.
Answer: Buzz marketing, product placement and branded entertainment, guerilla marketing, and
lifestyle marketing.
Diff: 1 Page Ref: 272
Objective: 10-1

181) What is buzz marketing and how can it be generated?

Answer: Buzz marketing emphasizes consumers passing along information about a product to
other consumers. It can be generated in three ways:
1. Consumers who truly like a brand and tell others.
2. Consumers who like a brand and are sponsored by a company to tell others.
3. Company or agency employees posing as customers of the company, telling
others about the brand.
Diff: 2 Page Ref: 272
Objective: 10-1

182) What is guerilla marketing? How is it different from traditional marketing?

Answer: Guerilla marketing is focusing on low-cost, creative strategies to reach the right people.
It is different from traditional marketing because the company uses energy and imagination;
measures success through profits rather than sales; bases efforts on psychology and human
behavior rather than experience; seeks growth through existing customers and referrals rather
than by simply trying to add customers; aims messages at targeted, rather than large groups; and
focuses on the customer rather than the company. Primary places to implement guerilla tactics
include trade shows, sponsorship programs, public relations' programs, and by using alternative
media.
Diff: 3 Page Ref: 275
Objective: 10-3

183) What is the difference between product placement and branded entertainment? Identify the
key factors influencing the effectiveness of both product placement and branded entertainment.
Answer: Product placement is the planned insertion of a brand into a movie, television show, or
other media. Branded entertainment is the integration of entertainment and advertising by
embedding brands into the actual storyline. Key factors of success include: media, supporting
promotional activities, consumer attitudes toward placements, placement characteristics, and
regulations.
Diff: 3 Page Ref: 276-277
Objective: 10-2

184) What is lifestyle marketing?

Answer: It is a form of guerilla marketing. The goal is to locate customers in targeted places of
interest that reflect their lifestyles, such as bluegrass festivals, farmers' markets, stock car races,
5k runs, and other identifiable activities.
Diff: 2 Page Ref: 278-279
Objective: 10-1

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Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
185) Identify the different forms of video game advertising.
Answer: In-game advertising, rotating in-game advertising, interactive ads, game-related Web
sites, advergames, sponsored downloads.
Diff: 3 Page Ref: 279
Objective: 10-1

186) Discuss the factors that are necessary for effective POP displays.
Answer: 1. Integrate the brand's image into the display
2. Integrate the display with current advertising and promotions
3. Make the display dramatic to get attention
4. Keep the color of the display down so the product and signage stand out
5. Make the display versatile so it can be easily adapted by retailers
6. Make the display reusable and easy to assemble
7. Make the display easy to stock
8. Customize the display to fit the retailer's store
Diff: 3 Page Ref: 285
Objective: 10-4

187) What is a branded community and how can a company enhance a community spirit among
its owners.
Answer: Branded communities are the ultimate demonstration of brand loyalty and brand
devotion. Companies can enhance brand communities by:
1. creating member benefits to encourage new customers to join
2. providing materials to the group that are not available anywhere else
3. involving company personnel in the group
4. sponsoring special events and regular meetings
5. promoting communications among members
6. building a strong brand reputation
Diff: 3 Page Ref: 286-287
Objective: 10-5

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