Ch. 11 and 12 Test Prep, S. E. Marketing
True/False
Indicate whether the sentence or statement is true or false.
____
1. Advertising revenue is critical to the survival of widely distributed entertainment shown by television
networks.
____
2. During the 1960s, companies learned to use a new marketing medium—television.
____
3. Many customers are undecided about where to spend their money.
____
4. Firms must take customers away from competitors in order to increase market share.
____
5. Data mining is a tool that enables businesses to understand customers.
____
6. School holidays and weekends are important to the movie industry.
____
7. Marketing research determines what customers want.
____
8. Marketing plans should follow a specific format.
____
9. The NFL had the largest number of corporate sponsors of all major sports in 2003.
____ 10. Studies have shown that changes in ticket prices or in attendance cause little variance in the amount of
revenue from ticket sales.
____ 11. Most material available over the Internet is not protected by copyright law.
____ 12. The NFL was exempted from the law that forbids monopolies.
____ 13. The third step to risk management is determining how great the consequences are.
____ 14. The copyright symbol © must be on the material for it to be covered by the law.
____ 15. Russia is the world’s biggest producer of pirated music.
____ 16. Baseball is not considered interstate commerce because it is thought of as a game rather than a business.
____ 17. Most professional sports leagues, with the exception of basketball, have salary caps.
____ 18. The NFL is the leader in the licensing of sports apparel.
____ 19. The primary business of leagues and players’ unions is merchandising.
____ 20. U.S. sports leagues limit the number of licenses granted for a particular category of merchandise.
____ 21. Until Nextel replaced it in 2003, R. J. Reynolds Tobacco Company had been the leading NASCAR sponsor
for more than 30 years.
____ 22. The unauthorized use of logos on products carries both civil and criminal penalties for the violator.
____ 23. There are a large number of laws governing sports and entertainment.
____ 24. One method of transferring the risk to the fans is the inclusion of a statement on the back of the event ticket.
____ 25. Copyright laws only protect the unique work of authors.
____ 26. After a copyright expires, the work can be used by anyone without cost or permission.
____ 27. U.S. copyright laws are enforceable in other countries.
____ 28. The Recording Industry Association of America regards file sharing as theft and has aggressively pursued
violators.
____ 29. The National Labor Relations Act gave organized labor the right to collectively bargain and strike.
____ 30. Collective bargaining occurs when management makes all decisions without regard to labor input.
____ 31. The purpose of a salary cap is to help keep the teams on an even basis.
____ 32. Major League Soccer is structured as a single-entity league, with the owners as investors in the league itself.
Multiple Choice
Identify the letter of the choice that best completes the statement or answers the question.
____ 33. An advertiser must
a. set a measurable advertising goal.
b. create the advertisement.
c. develop an advertising budget.
d. all of the above
____ 34. ____ is a technique of setting the advertising budget by assuming the point at which an additional dollar spent
on advertising equals additional profit.
a. Marginal analysis
b. Percent of sales
c. Bartering
d. Payout planning
____ 35. Selection of the appropriate advertising medium is based primarily on the
a. target audience.
b. advertising theme.
c. advertising budget.
d. a and c
____ 36. According to the Radio Advertising Bureau, ____ percent of people between the ages of 12 and 65 listen to
the radio during the week.
a. 63
b. 72
c. 96
d. 91
____ 37. The marketing research process must be
a. revised often.
b. ongoing.
c. repeated frequently.
d. all of the above
____ 38. Nielsen Media Research uses ____ households as the sample of 102.3 million households with televisions in
the United States.
a. 5,000
b. 10,000
c. 100,000
d. 1,000
____ 39. ____ provides information about U.S. movie attendance during school holidays and weekends to the
entertainment industry.
a. Nielsen EDI
b. NFO Plug Research, Inc.
____ 40.
____ 41.
____ 42.
____ 43.
____ 44.
____ 45.
____ 46.
____ 47.
____ 48.
____ 49.
c. Nielsen Entertainment Marketing Services
d. Harris Interactive
Tag lines
a. convey the main message of the ad.
b. are easily remembered by viewers and listeners.
c. are often short and catchy phrases.
d. all of the above
____ spent the most advertising dollars during sporting events in the second quarter of 2002.
a. Universal Studios
b. Chevrolet
c. Anheuser-Busch
d. Miller Brewing Company
The bottom line for sports and entertainment events is
a. customer satisfaction.
b. profit.
c. customer loyalty.
d. community relations.
A step to control risk is to
a. avoid offering the risky event.
b. do nothing; risk cannot be controlled.
c. purchase insurance that transfers the cost of the risk to the insurance company.
d. a and c
Celebrities own a right to their
a. voice.
b. image.
c. likeness.
d. all of the above
A collective bargaining agreement
a. does not include contract lengths.
b. includes rules under which teams will operate.
c. is considered illegal.
d. is in compliance with the Clayton Act.
When strikes occur,
a. advertisers and concession sellers are also affected.
b. sympathy is felt by most fans toward players.
c. fans usually return to the game rather quickly.
d. it is usually the owners’ fault.
More than ____ per year is generated through sports licensing.
a. $11 billion
b. $16 million
c. $25 million
d. $2 billion
A major promotional strategy to maximize profits of licensed merchandise is to
a. widen the market to the world.
b. add creative new items, licensees, and sales methods.
c. change the logo, color, or uniform, or reproduce nostalgic items.
d. all of the above
Which of the following is not a step for a license?
a. Complete a business plan.
____ 50.
____ 51.
____ 52.
____ 53.
____ 54.
____ 55.
____ 56.
b. Make a sample drawing of the product.
c. Devise a marketing plan.
d. Lobby the appropriate government agency.
____ has signed a ten-year agreement with NASCAR to be the sponsor of the NASCAR ____ Cup Series.
a. Winston
b. Nextel
c. Home Depot
d. R. J. Reynolds
A logo
a. can be registered as a trademark.
b. may be legally protected property.
c. is represented by the symbol ®.
d. all of the above
Since 1978, works have been copyrighted for
a. the lifetime of the artist plus 70 years.
b. 50 years.
c. the lifetime of the artist plus 50 years.
d. 28 years.
____ is quickly rising to the top of the world music piracy charts.
a. China
b. Russia
c. The United States
d. Mexico
The ____ established the right to sue and receive threefold damages plus other costs and interest for
monopoly and other commercial violations.
a. Sherman Antitrust Act
b. National Labor Relations Act
c. Clayton Act
d. Wagner Act
Contracts
a. can be enforceable by law.
b. involve a promise in exchange for something of value.
c. should be worded so that they are not subject to multiple interpretations.
d. all of the above
Sponsorships and advertising are sold about ____ prior to games being played.
a. six months
b. one year
c. five years
d. one month
Ch. 11 and 12 Test Prep, S. E. Marketing
Answer Section
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MULTIPLE CHOICE
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