Advertising

Question 1

The type of advertising that attempts to create a favorable image of the real estate company, the broker, and the salesperson as opposed to a specific piece of property, is called

(a) specific advertising.
(b) operational advertising.
(c) institutional advertising.
(d) personalized advertising.

Answer 1

(c) institutional advertising.

Question 2

The D in the AIDA approach to advertising stands for

(a) distraction
(b) demonstrate
(c) desire
(d) demand

Answer 2

(c) desire

Question 3

Knowing when to advertise, whom you want to reach, and the features to emphasize is extremely important. Which of the following would be appropriate?

(a) featuring a fireplace in an ad for a home in northern California at the beginning of winter.
(b) featuring a swimming pool in an ad for a home in northern California at the beginning of winter.
(c) advertising an elegant, expensive home in a local newspaper that is distributed primarily to low-income families.
(d) advertising a home with one bathroom in a publication primarily read by families.

Answer 3

(a) featuring a fireplace in an ad for a home in northern California at the beginning of winter.

Question 4

When choosing the most appropriate advertising medium, keep in mind that the objective is not necessarily to reach the largest number of people but to

(a) avoid violating anti-discriminatory advertising laws.
(b) reach the greatest number of potential prospects at the least possible cost.
(c) reach the greatest number of people regardless of demographics.
(d) spend the entire advertising budget.

Answer 4

(b) reach the greatest number of potential prospects at the least possible cost.

Question 5

Personal advertising can include

(a) name tag
(b) business card
(c) web site
(d) all of the above

Answer 5

(d) all of the above

Question 6

One of the drawbacks of newspaper advertising is

(a) wide circulation
(b) effective life span is short
(c) audience selectivity
(d) time-and-space flexibility

Answer 6

(b) effective life span is short

Question 7

Display ads are primarily used for selling developments rather than single homes because of

(a) limited circulation.
(b) cost.
(c) coverage.
(d) appeal.

Answer 7

(b) cost.

Question 8

Which of the following statements is CORRECT about direct mail advertising?

(a) it is rather expensive per contact
(b) it can be an effective way to reach a selected audience
(c) every direct mail piece should reference your firm’s Web site
(d) all of the above.

Answer 8

(d) all of the above.

Question 9

The type of advertising that is particularly valuable in niche marketing is

(a) newsletters.
(b) press releases.
(c) direct e-mail.
(d) radio.

Answer 9

(a) newsletters.

Question 10

If your web site has information on a large number of office listings, the viewer should be able to

(a) contact the owners directly.
(b) enter parameters such as price, size, and location to narrow the search.
(c) limit the number of listings a person can view per visit to the site.
(d) only list property by MLS number.

Answer 10

(b) enter parameters such as price, size, and location to narrow the search.

Question 11

In order to determine which types of advertising are most effective for you and which produce the most income, it is essential to

(a) meet with advertisers every month.
(b) be consistent with your advertising dollar regardless of response rates.
(c) set up an evaluation system.
(d) talk with people in the community to see if they recognize your firm’s name.

Answer 11

(c) set up an evaluation system.

Question 12

According to the California Real Estate Law, false advertising consists of

(a) accidently making an error or omission in an advertising piece.
(b) knowingly advertising a false statement concerning a property.
(c) unwittingly passing along a false statement made by the seller in an advertisement.
(d) making an honest mistake about the value of a property in an advertisement.

Answer 12

(b) knowingly advertising a false statement concerning a property.

Question 13

Which of the following is deemed sufficient to identify the license designation of the broker or agent in an ad?

(a) boss or employee
(b) 1st or 2nd
(c) prime or alt
(d) bro. and agt.

Answer 13

(d) bro. and agt.

Question 14

The Federal Truth-in-Lending Act, or Regulation Z, requires?

(a) limits on interest rates.
(b) lenders to limit their fees.
(c) disclosure of credit costs as an Annual Percentage Rate (APR).
(d) All of the above.

Answer 14

(c) disclosure of credit costs as an Annual Percentage Rate (APR).

Question 15

Which of the following phrases violates the HUD guidelines for discriminatory advertising under familial status?

(a) adults only
(b) includes family room
(c) no bicycles allowed
(d) quiet neighborhood

Answer 15

(a) adults only

Question 16

The advertising dollar budget of an office is influenced by

(a) advertising costs within a community.
(b) market conditions.
(c) both (a) and (b) are correct.
(d) neither (a) nor (b) are correct.

Answer 16

(c) both (a) and (b) are correct.

Question 17

A billboard that states ‘Thomas Realty-A Name You Can Trust’ would be regarded as:

(a) operational advertising.
(b) institutional advertising.
(c) specific advertising.
(d) demand advertising.

Answer 17

(b) institutional advertising.

Question 18

In real estate we have learned that:

(a) it is best to advertise properties in areas or price ranges where other properties are also available.
(b) prospective buyers who respond to newspaper ads are likely to buy a property other than the property advertised.
(c) both A and B
(d) neither A nor B

Answer 18

(c) both A and B

Question 19

The best heading for a classified ad on a home would be:

(a) a blank space since it attracts attention.
(b) the firm’s logo.
(c) the most desirable feature.
(d) the name of the agent to call.

Answer 19

(c) the most desirable feature.

Question 20

In advertising a fixer-upper property:

(a) it is best not to mention any problems with the property.
(b) the worse you make the property appear, the greater your response is likely to be.
(c) people are attracted to fixer-upper ads because they sense a bargain.
(d) both B and C

Answer 20

(d) both B and C

Question 21

Which of the following statements regarding display advertising is TRUE?

(a) One large picture is generally more effective than several smaller pictures.
(b) Most people read from the upper left to the lower right corner when looking at an ad.
(c) More than two typefaces in an ad will likely have a negative effect on the ad.
(d) All of these

Answer 21

(d) All of these

Question 22

Which of the following statements regarding display advertising is TRUE?

(a) Ads in an outside column will generate more interest than ads in an inside column.
(b) Inclusion of white space serves to emphasize a message.
(c) Lowercase letters are easier to read than capital letters.
(d) All of these

Answer 22

(d) All of these

Question 23

Which promotion would have the lowest cost to the broker?

(a) Billboard
(b) Direct mail
(c) Press release
(d) Yellow pages of a telephone directory

Answer 23

(c) Press release

Question 24

In advertising, the real estate agent should know that it is illegal to:

(a) include credit terms.
(b) conceal the fact that the advertiser is an agent.
(c) use abbreviations such as Agt. or Bro. instead of the name of the firm.
(d) All of these

Answer 24

(b) conceal the fact that the advertiser is an agent.

Question 25

Which of the following statements regarding the truth-in-lending law is TRUE?

(a) Agents must advertise their names and license status.
(b) If the agent advertises the APR, the agent must include all credit terms.
(c) Bait-and-switch advertising is a federal offense.
(d) None of these

Answer 25

(c) Bait-and-switch advertising is a federal offense.