Commerce Rev Test 03X

Why might advertising lead to lower prices?

• Advertising costs are deducted from product prices.

• Competition with other manufacturers might be reduced.

• Costs of advertising are lower than production costs.

• Increased sales can reduce unit costs of production.

Four employees of a publishing company are discussing the launch of a book about sport. Which

employee is referring to advertising coverage?

• 
• 
• 
• 

CW Ltd wishes to promote its new range of car accessories by using an endorsement from a famous person. Its advertising agency has suggested four people. Which one would be the best CW Ltd got to choose?

• a celebrity dancer

• a film star

• a famous chef

• a racing driver

The diagram shows an advertisement for natural fruit smoothies.

Which type of advertisement is shown?

• collective

• competitive

• informative

• persuasive

The government of a developing country wishes to issue a malaria warning to the remotest parts of the country. Which method of advertising would be most effective?

• direct mailshot

• peak-time television

• newspaper advertisement

• posters in settlements

Which factor is most likely to influence the choice of an advertising medium for many kinds of goods?

• amount and size of packaging

• number of customers

• method of distribution

• the brand name

A manufacturer of soft drinks has decided to advertise on the internet because ...

• computer users can block unwanted messages by installing security software.

• instructions can be given on how to use the products.

• market coverage is limited to those who surf the internet.

• the advertisement can appear on popular websites and homepages.

The picture shows an example of advertising media.

What is this called?

• banner

• billboard

• email

• pop-up

What is not a reason for a manufacturer launching an advertising campaign?

• adding to the price of goods and so decreasing profits

• helping to create brand loyalty among customers

• introducing new products into the retail sector

• reminding customers of established products on the market

Why is rapid communication essential in the global market?

• Air transport has become more important in international trade.

• Consumer goods need to arrive at their destinations quickly and safely.

• Many goods are moved around the world by sea in containers.

• Traders need to contact each other to order goods and arrange deliveries.