Deck 13: Consun1er Stakeholders:information Issues and Responses

Question 1

Customer relationship management (CRM)is the ability of an organization to retain profitable customers.

Answer 1

False

Question 2

Comparative advertising always affects advertising positively.

Answer 2

False

Question 3

If the Children's Advertising Review Unit (CARU)cannot get advertisers to modify their campaigns,CARU must let the matter drop with no further action.

Answer 3

False

Question 4

The effects of advertising have clearly had a net positive effect on society.

Question 5

Self-regulation in advertising relies on the advertiser itself to control its advertising conduct and performance.

Question 6

Not telling the whole truth in advertisements is a widely used practice called concealing facts.

Question 7

A company's desire to portray its product in the most flattering light can lead to misinfomration.

Question 8

Most consumers today understand that advertising attempts to persuade them.

Question 9

The consumer movement is generally traced back to a single cause or event,although the specific incident varies from author to author.

Question 10

Advertising hard liquor on television used to be illegal in the United States.

Question 11

The origin of consumer activism can be traced back to the late 1700s,to the Boston Tea Party.

Question 12

A limited warranty means that the company guarantees all parts of the product and all types of defects,but only for a limited period of time.

Question 13

The effects of advertising have clearly had a net negative effect on society.

Question 14

A full warranty must contain certain features,including repair within a reasonable period of time at no charge

Question 15

As the economy struggles to come out of the recession,consumers have become more cautious and selective about spending.

Question 16

The Truth in Lending Act requires all suppliers of consumer credit to fully disclose all credit terms and to permit a 3- day right of rescission in any transaction involving a security interest in the consumer's residence.

Question 17

Ad creep has been expanding.

Question 18

Sexual references in advertising create more of a backlash today than they did two or three decades ago.

Question 19

Targets of comparative advertising have no recourse if they think their competition has gone too far.

Question 20

Tobacco companies no longer advertise tobacco products in a way to appeal to children.

Question 21

Information that is direct and straightforward,that is not deceptive or manipulative is

A)clear.
B)concise.
C)convmcmg.
D)creative.

Question 22

Which of the following is not a lesson from the consumer movement?

A)Product safety and consumer protection processes have flaws.
B)In the United States consumers must fight overconsumption.
C)Consumers can force companies to change their behaviors through boycotts.
D)The consumer movement is essential for achieving a fair and just marketplace.

Question 23

The power held by consumers comes from

A)umbrella organizations.
B)trade associations.
C)company lobbying.
D)grassroots involvement.

Question 24

To rebuild consumer confidence in brands,many companies have begun

A)a back to the customers initiative
B)the great trust offensive
C)the bounce back economy
D)the ignored offensive

Question 25

A consumer's right to choose refers to

A)his right to have an inventory of more than one to choose from.
B)her right to decide what store to buy from.
C)his right to eliminate products that do not meet his needs.
D)the assurance that competition is working effectively.

Question 26

The social movement that seeks to augment the rights and powers of buyers in relation to sellers is

A)caveat emptor.
B)buyer beware.
C)consumensm.
D)purchaser power.

Question 27

The two major classifications of issues in the business/consumer relationship are

A)cost and safety.
B)product information and the product itself.
C)warranties and advertising.
D)customer service and product safety.

Question 28

Information that communicates truths,and avoids exaggeration and innuendo is

A)adequate.
B)accurate.
C)ascetic.
D)antithetical.

Question 29

Consumers are readily pursuing green products.

Question 30

The consumer movement is still absolutely essential for achieving a fair and just marketplace for all consumers.

Question 31

The ability of an organization to effectively identify,acquire,foster,and retain loyal profitable customers is

A)customer service.
B)effective marketing.
C)customer relationship management.
D)ethical marketing.

Question 32

Common consumer complaints include all of the following except

A)poor quality of products.
B)lack of consumer credit.
C)high prices.
D)misleading packaging or labeling.

Question 33

The father of the consumer movement is

A)Ralph Nader.
B)Dan Murtaugh.
C)Michael Moore.
D)Richard Nixon.

Question 34

Which of the following is not a commonly recognized benefit of advertising?

A)It stimulates competition.
B)It provides information useful in comparison shopping.
C)It provides competitors with information.
D)It lowers the price of goods and services.

Question 35

The right to be heard was listed as part of the consumer's Magna Carta because

A)consumers should have a say in a store's hours of operations.
B)many consumers felt that they could not effectively communicate their desires and grievances to businesses.
C)everyone wants to feel that others listen to them.
D)because business has refused to listen to customers.

Question 36

Obesity researchers say they have data proving that the most sugary,calorie-laden breakfast cereals are marked to children most aggressively.

Question 37

Advertising abuses include all of the following types except

A)ambiguity.
B)concealed facts.
C)psychological appeals.
D)cynical depictions.

Question 38

Information that provides potential purchasers with enough information to make the best choice among the options available is

A)adequate.
B)ambivalent.
C)minimal.
D)realistic.

Question 39

Issues related to product information include all of the following except

A)advertising.
B)warranties.
C)labeling.
D)website design.

Question 40

Which of the following is not one of the rights in the consumer's Magna Carta?

A)right to safety
B)right to be informed
C)right to be protected
D)right to choose

Question 41

The industry under the greatest attack for its marketing and advertising practices is

A)pharmaceuticals.
B)liquor.
C)automobiles.
D)cigarettes.

Question 42

An implied warranty is

A)available for all new and used products.
B)an unspoken promise that there is nothing siguificantly wrong with the product.
C)limited to one year.
D)states exactly what is covered and what is not.

Question 43

The fact that advertising can increasingly be found everywhere is referred to as

A)the consumer culture.
B)expanding markets.
C)ad creep.
D)evolutionary marketing.

Question 44

The traditional term that was used for advertising located in novel locations (now called ad creep)was

A)ambiguous advertising.
B)stealth marketing.
C)ambient advertising.
D)undercover promotion.

Question 45

Use of plot placements involve

A)awards given for extraordinarily poor advertisements.
B)advertising ideas taken from the storylines of books or movies.
C)placement of products part of the storyline of a television show.
D)ideas for new products taken from books.

Question 46

Puffery is another way of saying that a statement is an exaggeration that uses

A)general superlatives.
B)ambiguous praise.
C)vague commendations.
D)special terminology.

Question 47

All of the following are significant issues in cigarette advertising except

A)promotion of a dangerous product.
B)its aim at young audiences.
C)its aim at less-educated consumer markets.
D)its aim at less-developed countries.

Question 48

CARU was created by:

A)Congress.
B)the Manufacturer's Self-Advertising Regulation Association.
C)the Children's Television Network.
D)the Council of Better Business Bureaus.

Question 49

A guarantee that is explicitly offered at the time of sale is called a(n)

A)implicit warranty.
B)express warranty.
C)traditional warranty.
D)extended warranty.

Question 50

Which of the following is not a problem associated with exaggerated claims?

A)They induce people to buy things that do them no good.
B)They drive out good advertising.
C)They generally cost more to produce.
D)They result in a loss of advertising efficiency.

Question 51

The practice of directly contrasting a finn's product with the product of a competitor is called

A)comparative advertising.
B)puffery.
C)the taste test approach.
D)denigration.

Question 52

The purpose of the Federal Packaging and Labeling Act of 1967 was to

A)prohibit deceptive labeling of certain consumer products.
B)require disclosure of certain important information.
C)limit both the type and amount of material used in packaging.
D)both prohibit deceptive labeling of certain consumer products and require disclosure of certain important information.

Question 53

The most recent trend in sex-appeal advertising campaigns is:

A)to target the Christian right.
B)to target feminists.
C)to target sex workers.
D)to target younger and younger girls.

Question 54

Advertising that is designed to persuade on the basis of human emotions and emotional needs rather than reason relies on

A)puffery.
B)concealed facts.
C)ambiguous wording.
D)psychological appeals.

Question 55

Advertising claims that cannot be substantiated by evidence are termed

A)misleading.
B)outlandish.
C)understatements.
D)exaggerated claims.

Question 56

Words that are inherently vague,without being misleading are referred to as

A)weasel words.
B)mildly deceptive.
C)perceptively ambiguous.
D)intentionally ambivalent.

Question 57

The Children's Television Act was passed to

A)prevent violent shows from being broadcast during morning hours.
B)prohibit the airing of commercials about products or characters during a show about those products or characters.
C)regnlate the plotlines of children's shows.
D)limit the number of hours children could watch television.

Question 58

Which of the following is not part of CARD's guidelines for advertising directed toward children under the age of twelve?

A)take into account the maturity,knowledge,and sophistication of the audience
B)do not exploit the imaginations of young children
C)incorporate minority and other groups into the advertising
D)consider the socioeconomic level of the audience

Question 59

The basic activity of CARU is

A)nominating exceptional children's advertising for national awards.
B)to develop guidelines for effective advertising to children.
C)to review and evaluate child-directed advertising in all media.
D)monitor new developments in ads directed toward children.

Question 60

Warranties were originally used by manufacturers to

A)help sell their products.
B)differentiate their products from those of competitors.
C)improve the image of their products.
D)limit the length of time they were responsible for products.

Question 61

Free Press is

A)a coalition of 50 groups fighting product and plot placements.
B)the Federal Communications Commission
C)The Federal Trade Commission.
D)A Consumer Protection Agency.

Question 62

The Federal Trade Commission (FTC)

A)achieves free and fair completion in the economy.
B)protects misleading practices.
C)issues trade regulation rules.
D)Monitors competitive practices.

Question 63

Which of the following is not a lesson from the consumer movement?

A)public oversight is needed where corporations lack incentives to regulate their own behavior responsibly.
B)consumers must curb the wasteful overconsumption that threatens the envirornnent.
C)the need to achieve consumerism from one organization to another.
D)Product safety net and consumer protection infrastructure have serious holes.

Question 64

The Warranty Act

A)sets standards for what must be contained in a warranty and ease with which consumers must be able to understand it.
B)says that any unconditional assurance must be promoted as a full warranty.
C)says that full warranties do not have to include repair.
D)says that shipping charges do not have to be included in a full warranty.

Question 65

Three years after becoming law,the Credit Card Act of2009:

A)has reduced the cost of credit cards.
B)has been mostly beneficial to consumers
C)has provided universal opportunity for rate increases.
D)has provided availability of cards to young people.

Question 66

Describe the main issues related to using psychological appeals in advertising.

Question 67

Why is advertising to children particularly troubling to ethicists?

Question 68

All of the following are "green watchdogs" groups seeking to monitor green advertising and certify green products except

A)Green-e
B)Forest Stewardship Council
C)Energy Star
D)EcoNogo

Question 69

Which of the following is not a law that addresses information disclosure issues?

A)Equal Credit Opportunity Act
B)Credit Collection Limitation Act
C)Truth-in-Lending Act
D)Fair Credit Reporting Act

Question 70

Young children seldom have any money of their own to spend,nor can they get to the store to buy things.Why,then,are marketers so anxious to advertise to children?

Question 71

"Functional foods" are all the following except

A)yogurts that claim to ease constipation
B)butter substitutes that reduce your cholesterol
C)Tomato extracts that keep your skill young and ward off cancer
D)foods that claim to negatively affect your health functioning

Question 72

Explain how digital video recorders such as TiVo have contributed to ad creep.

Question 73

The Consumer Financial Protection Bureau:

A)enforces consumer fmancial protection laws.
B)takes consumer complaints.
C)promotes fmancial education.
D)The CFPB does all of these things.

Question 74

The federal government's major body for ensuring that business lives up to its responsibilities is the

A)Interstate Commerce Commission.
B)Federal Communications Commission.
C)Federal Trade Commission.
D)Consumer Protection Agency.

Question 75

Neuromarketers have concluded that the most effective sounds in terms of psychological appeals include all the following except

A)babies giggling
B)packages being opened
C)vibrating cell phones
D)soda being popped and poured

Question 76

Why is the role of business's social responsibility so central to the question of advertising?

Question 77

Describe the ways in which the Internet has facilitated the consumer movement.

Question 78

In your opinion,is the use of American flags and patriotic themes appropriate in advertising?

Question 79

The Federal Packaging and Labeling Act of 1967 is administered by the

A)Federal Trade Commission.
B)Consumer Products Council.
C)Interstate Commerce Commission.
D)Federal Drug Administration.

Question 80

What is the basic reason for the ethical issues surrounding product information?