Western Digital, the Irvine, California-based maker of disk drives, recalled about 400,000 of its hard drives because of a faulty internal chip. The chip will not affect the disk drive motor until after six to twelve months of use. This delay in the problem's appearance means that many consumers would not think to blame the disk drive manufacturer. But, instead of taking the less expensive route of remaining quiet about the problem, Western Digital chose to offer replacement disk drives for all the disk drives that had the faulty chip. This action is an example of .

Western Digital, the Irvine, California-based maker of disk drives, recalled about 400,000 of its hard drives because of a faulty internal chip. The chip will not affect the disk drive motor until after six to twelve months of use. This delay in the problem's appearance means that many consumers would not think to blame the disk drive manufacturer. But, instead of taking the less expensive route of remaining quiet about the problem, Western Digital chose to offer replacement disk drives for all the disk drives that had the faulty chip. This action is an example of .


A. hedonism
B. utilitarianism
C. moral idealism
D. existentialism
E. socialism




Answer: C

The 3M company stopped production of a chemical it had made for over 40 years when tests showed the chemical could be harmful in large doses, even though the products in which it was used had no known harmful health or environmental effect. This is an example of

The 3M company stopped production of a chemical it had made for over 40 years when tests showed the chemical could be harmful in large doses, even though the products in which it was used had no known harmful health or environmental effect. This is an example of



A. individualism.
B. utilitarianism.
C. existentialism.
D. moral idealism.
E. socialism.




Answer: D

In the traditional advertising model, advertisers were charged using a approach Google transformed the traditional model to a model called where an advertiser pays only when somebody actually clicks on the ad and is delivered to their website.

In the traditional advertising model, advertisers were charged using a approach Google transformed the traditional model to a model called where an advertiser pays only when somebody actually clicks on the ad and is delivered to their website.




A. cost per thousand occurrences; cost-per-clack
B. cost per thousand incidences; cost-per-snap
C. cost per thousand impressions; cost-per-click
D. cost per thousand recurrences; cost-per-lead
E. cost per thousand frequencies; cost-per-hit



Answer: C

Several improvements in technology and business practice tools contributed to Google's success. Google developed its patented algorithm that evaluates the entire link structure of the Internet and uses the link structure to determine which pages are most important.

Several improvements in technology and business practice tools contributed to Google's success. Google developed its patented algorithm that evaluates the entire link structure of the Internet and uses the link structure to determine which pages are most important.



A. PageLeaf
B. PageFolio
C. PageRank
D. PageCall
E. PageTag



Answer: C

The online advertising market has grown from its initial focus on simple text ads to a much larger set of options. There are five key categories of online advertising. They are: search, , classified, referral, and e-mail.

The online advertising market has grown from its initial focus on simple text ads to a much larger set of options. There are five key categories of online advertising. They are: search, , classified, referral, and e-mail.




A. show
B. track
C. monitor
D. explain
E. display



Answer: E

Google's mission is

Google's mission is



A. to receive 20 billion inquiries each day.
B. to be the first company to generate $100 billion in revenues every year.
C. to be the most socially responsible company on earth.
D. to obtain corporate sustainability by the year 2015.
E. to organize the world's information and make it universally accessible and useful.



Answer: E

When Google chose a new model for its advertising, it decided to

When Google chose a new model for its advertising, it decided to



A. show advertisements that were the exact opposite of a consumer's profile to give the ads a higher awareness rate.
B. randomize the time periods between ads and banners rather than use a steady schedule in order to keep the ads more noticeable.
C. customize all advertisements to reflect customers' preferences for color, music, and fonts based on information obtained from cookies.
D. create a "quality score" to predict how effective an ad would be based on factors such as click-through . rates, advertiser history, and keyword performance.
E. create an "ad-option" page for consumers to create their own consumer profile— blocking out products . and services they don't want and selecting the products and services they do.




Answer: D

Public watchdog groups are critical of ad campaigns for some video games that use sex appeals and glamorize violence. How should an ad agency respond to these critics if it wishes to avoid the enactment of additional laws limiting its creativity?

Public watchdog groups are critical of ad campaigns for some video games that use sex appeals and glamorize violence. How should an ad agency respond to these critics if it wishes to avoid the enactment of additional laws limiting its creativity?




A. Express strong support for First Amendment freedom and stand its ground.
B. Develop an infomercial for its product that is relevant, useful to its customer, and entertaining.
C. Produce a public service announcement in support of its current, successful approach.
D. Take advantage of the publicity and run the ads in question more frequently.
E. Take steps toward self-regulation, imposing standards on its promotional activities that reflect the values of society.




Answer: E

The increasing effort by advertising agencies, trade associations, and marketing associations to impose standards upon themselves that reflect the values of society is referred to as

The increasing effort by advertising agencies, trade associations, and marketing associations to impose standards upon themselves that reflect the values of society is referred to as



A. legislation.
B. self-regulation.
C. business practice.
D. business ethics.
E. government regulation.



Answer: B

During the 2010 winter immunization campaign, the Centers for Disease Control and Prevention used the media to encourage all Americans to get vaccinated against the seasonal flu virus. This is an example of a

During the 2010 winter immunization campaign, the Centers for Disease Control and Prevention used the media to encourage all Americans to get vaccinated against the seasonal flu virus. This is an example of a 



A. news release
B. news conference
C. public service announcement
D. cooperative advertising
E. limited-service advertising




Answer: C

When Stephen Elop, President, Microsoft Business Division, launched Office 2010 at an event in New York, representatives of the media were invited to attend. The company announced the worldwide availability of Microsoft Office 2010, as well as Microsoft Visio 2010 and Microsoft Project 2010, for business customers worldwide. This is an example of a .

When Stephen Elop, President, Microsoft Business Division, launched Office 2010 at an event in New York, representatives of the media were invited to attend. The company announced the worldwide availability of Microsoft Office 2010, as well as Microsoft Visio 2010 and Microsoft Project 2010, for business customers worldwide. This is an example of a .



A. news release
B. news conference
C. promotional giveaway
D. PSA
E. co-operative advertising




Answer: B

A s conference is a(n)

A s conference is a(n)



A. announcement regarding changes in a company or product line.
B. free space or time in a newspaper or on a broadcast medium.
C. publicity tool that utilizes high-visibility individuals in lobbying activities.
D. meeting of top news executives to decide advertising policy.
E. an informational meeting to which representatives of the media are invited.



Answer: E

A mon publicity tool is the , where representatives of the media are all invited to an informational meeting and advance materials regarding the content are sent out in advance.

A mon publicity tool is the , where representatives of the media are all invited to an informational meeting and advance materials regarding the content are sent out in advance.


A. infomercial
B. news release
C. news conference
D. news flash
E. news huddle





Answer: C

An announcement that German pharmaceutical giant Bayer is looking for a buyer for its household insecticide business as part of its restructuring program is an example of which type of publicity tool?

An announcement that German pharmaceutical giant Bayer is looking for a buyer for its household insecticide business as part of its restructuring program is an example of which type of publicity tool?



 A. lobbying
B. events management
C. disclosure statement
D. news release
E. public service announcement



Answer: D

A printed or an e-mailed announcement sent to members of the business media from German pharmaceutical giant Bayer stating that it is looking for a buyer for its household insecticide business as part of its restructuring program is an example of which type of publicity tool?

A printed or an e-mailed announcement sent to members of the business media from German pharmaceutical giant Bayer stating that it is looking for a buyer for its household insecticide business as part of its restructuring program is an example of which type of publicity tool?


A. news release
B. public trade announcement
C. lobbying
D. news conference
E. event management





Answer: A

Methods for obtaining nonpersonal presentation of an organization, product, or service without direct cost, such as news releases, news conferences, and public service announcements, are referred to as

Methods for obtaining nonpersonal presentation of an organization, product, or service without direct cost, such as news releases, news conferences, and public service announcements, are referred to as 


A. promotional tools.
B. free advertising.
C. public promotions.
D. market-oriented promotions.
E. publicity tools.



Answer: E

Publicity tools refer to

Publicity tools refer to



A methods of tying charitable contributions of a firm directly to the customer revenues produced through . the promotion of one of its products.
B. methods used to get a nonpersonal, directly paid presentation of a company or its products.
C. short-term inducements of value offered to arouse interest in buying a product or service.
D. methods of obtaining nonpersonal presentation of an organization, product, or service without direct cost.
E. free space or time donated by the media.




Answer: D

A dware store owner placed an advertisement for Sylvania LED light bulbs in the local newspaper. Sylvania provided the storeowner with several high-quality, camera-ready sample advertisements and also paid 50 percent of the cost to place the ad in the paper. Sylvania was using to promote its products.

A dware store owner placed an advertisement for Sylvania LED light bulbs in the local newspaper. Sylvania provided the storeowner with several high-quality, camera-ready sample advertisements and also paid 50 percent of the cost to place the ad in the paper. Sylvania was using to promote its products.



A. strategic channel partnership
B. cooperative advertising
C. retail publicity
D. reseller consumer promotion
E. manufacturer incentive advertising



Answer: B

While reading the newspaper, Belinda noticed an advertisement containing a coupon from Bayer that is redeemable only at Target stores. This ad is an example of

While reading the newspaper, Belinda noticed an advertisement containing a coupon from Bayer that is redeemable only at Target stores. This ad is an example of



A. cooperative advertising.
B. co-branding.
C. a finance allowance.
D. a merchandise allowance.
E. specialty advertising.



Answer: A

Cooperative advertising refers to

Cooperative advertising refers to



A. dvertising programs by which a manufacturer pays a percentage of the retailer's local advertising expense for advertising the manufacturer's products.
B. advertising programs by which a manufacturer pays for national ad distribution and the retailer pays for local advertising expense.
C. advertising for all stores located in strip malls or other shared facilities financed as a part of their leasing fees.
D.advertising paid for by multiple independent firms to promote a product class rather than an individual product or firm.
E. advertising paid for by several unrelated firms to promote a worthy cause such as cancer research.




Answer: A

Advertising programs in which a manufacturer pays a percentage of a retailer's local advertising expense for advertising the manufacturer's products are referred to as

Advertising programs in which a manufacturer pays a percentage of a retailer's local advertising expense for advertising the manufacturer's products are referred to as




A. trade promotion programs.
B. consumer promotion programs.
C. cooperative advertising programs.
D. cause-related marketing programs
E. shared-responsibility programs.



Answer: C

A de promotion where the manufacturer gives a retailer a case allowance price for products in their warehouse, which prevents shelf stock from running down during the promotional period is referred to as a.

A de promotion where the manufacturer gives a retailer a case allowance price for products in their warehouse, which prevents shelf stock from running down during the promotional period is referred to as a.



A. level stock protection program
B. floor stock protection program
C. ceiling stock protection program
D. ground stock protection program
E. hedge stock protection program




Answer: B

A variation of the case allowance is the approach, whereby retailers receive some amount of the product free based on the amount ordered, such as 1 case free for every 10 cases ordered.

A variation of the case allowance is the approach, whereby retailers receive some amount of the product free based on the amount ordered, such as 1 case free for every 10 cases ordered.



A. complementary
B. harmonizing
C. balancing
D. free goods
E. paired



Answer: D