SEM I: Endorsements Pre-test

When a company pays a famous individual to appear in an ad wearing or using one of its products, it is using a

• celebrity endorsement

• sponsorship agreement

• celebrity testimonial

• licensing agreement

Answer explanation

A celebrity endorsement involves a well-known person who approves, promotes, or supports a good or service, usually in return for payment.

Which of the following is an example of a celebrity endorsing an event simply by being associated with it?

• Tweeting about an event

• Appearing in a promotional ad

• Appearing at a charity event

• Making positive remarks during an interview

A sports celebrity appearing in a Gatorade commercial while wearing Under Armour clothing is an example of advertising that uses

• publicity

• cross-promotion

• brand loyalty

• competition

Answer explanation

Cross-promotion occurs when a celebrity is seen promoting more than one product within the same advertisement.

What is an advantage of using celebrities to endorse products?

• Celebrities attract attention

• It proves products are effective

• It convinces people to buy

• Celebrities are brand loyal

Answer explanation

People find celebrities interesting to follow, so the celebrities attract attention for products that are promoted by them.

What is a risk companies sometimes face when they use a celebrity endorsement?

• Celebrities advertise other products

• Celebrities charge large advertising fees

• Celebrities give negative product reviews

• Celebrities can develop a poor image

Answer explanation

Sometimes celebrities develop a poor image because of bad behavior or crime that can impact a company using them for advertising purposes.

The Federal Trade Commission requires that celebrity endorsers

• are paid for their endorsements

• use the products they advertise

• write advertising copy used in ads

• help develop the products they advertise

Answer explanation

The Federal Trade Commission (FTC) requires celebrity endorsers use the products that they advertise so the public is not misled.

Sports celebrities are most effective at promoting products that are

• of lower quality

• unrelated to their sport

• extremely expensive

• associated with their sport

Answer explanation

Celebrity endorsers are considered very effective in promoting products related to their sport, because they have a lot of knowledge about the product and consumers trust their opinions.

A celebrity who uses a product and makes positive claims about its effectiveness during a TV commercial is giving a

• speech

• personal opinion

• testimonial

• sales pitch

Answer explanation

A celebrity making positive claims about a product's effectiveness during a TV commercial is best defined as a testimonial.

Some companies avoid using top celebrities because their huge popularity can

• suddenly disappear

• continue to grow

• give the company a bad image

• overshadow products advertised

Answer explanation

Some companies avoid using celebrities because their huge popularity can overshadow the products they advertise and no benefit is gained.

Which of the following would be in violation of the Federal Trade Commission's guidelines concerning celebrity endorsements:

• A celebrity's opinions are shared in print media

• A celebrity makes statements about a product they use

• A celebrity's statements are rewarded to be favorable

• A celebrity endorses one brand over similar brands

Answer explanation

Federal Trade Commission (FTC) guidelines require that advertisers do not misrepresent a celebrity's experience with a product by rewording their opinions or statements.