Deck 4: Social, Ethical, and Regulatory Aspects of Advertising and Promotion

Question 1

Societies tend to monitor advertising to determine what is irresponsible, unethical, or illegal.Despite social shifts and technological advances, a culture's views on what is acceptable and unacceptable never change.

Answer 1

False

Question 2

Advertisers have historically been responsible for buying air time on educational and cultural programs despite their smaller audiences, thereby boosting the overall quality of American television.

Answer 2

False

Question 3

Research shows that subliminal advertising can lead people to buy things they otherwise wouldn't want, because much persuasive imagery and information is accepted as true when processed in a subconscious way.

Answer 3

False

Question 4

When a manufacturer and dealer share the expense of ads, at times adding hidden price concessions and moving into illegal territory, they are involved in vertical cooperative advertising.

Question 5

The calls for restrictions on advertising to children over the years have been based on a number of concerns, one of which is the promotion of superficial material things as necessary and valuable.

Question 6

There are those who insist that advertising creates conformity and status-seeking behavior, while others argue that advertising reflects, not causes, America's age of consumption.

Question 7

Advertisers of "controversial products" are in danger of deceiving the public when they attempt to show social responsibility, such as beer companies spending millions a year promoting responsible drinking.

Question 8

If "Project Beacon" had been launched as planned, all the online searches and purchases of Facebook users would have appeared on their Facebook sites and then would have been broadcast to all their other Web connections.

Question 9

Truth in advertising is a broad term referring to the common sense and acceptance of general standards that is expected of anyone promoting something, rather than a legal definition regarding real deception.

Question 10

The three primary areas of advertising regulation are obscenity and profanity, deception, and unsolicited or direct marketing.

Question 11

Even those who view advertising positively for other reasons often admit that it rarely contributes to art and culture, and art and culture have little room for advertising.

Question 12

As a promotional tool and an industry, advertising gets a lot of attention, scrutiny, and criticism today because it is so conspicuous and has established a global presence.

Question 13

It is almost impossible to legislate against emotional appeals in ads, since even if they seem exaggerated or inaccurate, they are unquantifiable so there is no way to prove this.

Question 14

The FTC's regulations on deception have no authority over omissions or missing information about a product, but only cover those false statements or misleading claims actually made by the advertiser.

Question 15

The FTC has regularly issued warnings to tobacco companies about ads that have been shown to cause young people to start smoking, backed up by decades of substantial evidence to this effect published by reputable medical journals.

Question 16

The Children's Food and Beverage Advertising Initiative is a voluntary commitment, signed by many well-known corporations, to stop advertising on children's television programs.

Question 17

It is possible to make a reasonable argument that the massive consumption that advertising upholds and glorifies is actually quite good for American society, and for other cultures around the world.

Question 18

Though some are legitimate, many criticisms of advertising prove to be uninformed and simplistic, based on emotion rather than fact, and ignoring complex social and legal factors.

Question 19

Some analysts believe that society is actually better off with a large mix of ads, commercials, and promotions because these do little more than "shuffling existing total demand" rather than increasing or decreasing it.

Question 20

Critics of advertising claim that advertising carries little if any good product information and that most advertising is biased, limited, and inherently deceptive.

Question 21

Almost 50 percent of all email traffic is spam, amounting to about 1 billion spam messages sent around the world every 24 hours, one-third of which involves pornographic messages.

Question 22

The first government restriction on telemarketing required companies to remove households from their dialing lists when residents requested this.

Question 23

The main restriction of direct mail sweepstakes, as imposed by Congress, involves the requirement that they are randomly and fairly distributed to a wide range of communities and addresses throughout the 50 states.

Question 24

When an NFL football player begins endorsing a line of energy bars and protein drinks, he is required by the FTC to disclose this relationship and the fee received, but he is not required to actually use the products.

Question 25

Since there has been little regulation of advertising and promotion on the Internet to date, the industry itself has had to act as its main governing body.

Question 26

In response to the argument that advertising provides little useful information about product features and functions, proponents say that

A)emotional significance and lifestyle factors are often more important to a consumer.
B)today's detailed ads are often overflowing with too much utilitarian information.
C)brand name is all that really matters to most people.
D)all relevant facts about a product cannot fit into a single ad.

Question 27

Today's advertising process can make use of its speed, widespread reach, and ability to describe benefits.This promotes the diffusion of innovations, meaning that products are

A)delivered quickly to a large portion of the marketplace.
B)priced affordably for the average consumer.
C)designed to meet a number of basic human needs.
D)produced to imitate the goods of competitors rather than offer creative new options.

Question 28

The three divisions within a local Better Business Bureau-merchandise, financial, and solicitations-investigate advertising practices of companies in their geographic area.

Question 29

Depending on the viewpoint, self-regulation can be considered a triumph of business integrity over meddling government, or a meaningless sham with no real authority beyond the cooperation of industry members.

Question 30

Which of the following is one of the four major aspects of advertising that lower the overall cost of products, according to proponents?

A)appropriation
B)hidden price concessions
C)affirmative disclosure
D)economies of scale

Question 31

The field of public relations is not restricted by the same types of laws as other business elements of the promotional and marketing mix.

Question 32

Many consumers are becoming frustrated or cynical regarding the increase of brand-name products that appear in television shows and movies or show up in bloggers' commentaries.These are examples of

A)stealth sponsorship.
B)hierarchy of needs.
C)emotional appeals.
D)commerce-content crossover.

Question 33

State governments have very little authority over promotional activities of firms, and since most companies conduct interstate commerce, any violations are federal issues.

Question 34

A powerful ruling by the FTC in dealing with unfair advertising is a cease-and-desist order, in which an advertiser agrees to stop running the ad but doesn't have to admit any guilt or wrongdoing.

Question 35

A relatively new federal agency is the National Advertising Division (NAD), empowered to create and enforce strict standards for packaging, labeling, distribution, and merchandising through its National Advertising Review Board (NARB).

Question 36

Consumer and industry groups are free to make attempts at shaping and restricting the advertising process, but in reality have little voice or power compared to the federal government.

Question 37

A Planetfeedback.com survey found that as many as 95 percent of respondents considered themselves as

A)frequent Internet shoppers.
B)easy targets for online fraud or identity theft.
C)benefiting from individualized messages and personalized ads.
D)angry or furious over spam and pop-up ads.

Question 38

An advertisement for Jif peanut butter that compared it to Skippy peanut butter, even if the information is accurate, would be illegal because it mentions brand-name goods produced by another firm.

Question 39

Consumer groups have been just as successful as the FTC in restricting children's advertising.

Question 40

The FTC's advertising substantiation program, set up in the 1970s, requires that documented evidence supporting any claims is made available to consumers, and that such evidence provides a "reasonable basis" for believing that the claims are true.

Question 41

What is the most fundamental ethical issue in advertising?

A)exaggeration, which is a serious but increasingly common practice
B)taste, particularly regarding society's exposure to offensive messages
C)materialism, which also is a key legal issue
D)deception, particularly false or misleading statements

Question 42

Some people believe that advertising can communicate below the threshold of consciousness, despite no solid evidence to prove this.Still, based on this belief, they have concerns that advertising is

A)consistently offensive.
B)influencing program content.
C)perpetuating cultural stereotypes.
D)deceiving due to subliminal stimulation.

Question 43

According to your text, how are most of our decisions made regarding what is ethical or unethical in advertising?

A)through personal judgment
B)through industry codes of ethics
C)through government regulation
D)through artistic instinct

Question 44

What was one of the government's earliest restrictions that targeted specific techniques and policies being used in programming and advertising designed for children?

A)the Children's Food and Beverage Advertising Initiative
B)the Nutrition Labeling and Education Act
C)the "Cheeseburger Bill"
D)the Children's Television Act

Question 45

The text poses questions about whether advertising causes people to smoke and drink.How does it answer these questions?

A)Brands in these categories don't spend enough advertising dollars to truly influence consumers.
B)These ads are usually designed to be subliminal, suggesting but not causing behavior.
C)Even sophisticated and knowledgeable consumers are highly influenced by ads to use these products.
D)Advertising cannot create primary demand in mature product categories such as these.

Question 46

To protect vulnerable consumers from widespread exposure to a "controversial product" area, in 2006 the federal government took the step to ban all ____ in the United States.

A)online gambling
B)child pornography
C)Internet pharmaceutical sales
D)abortion pills

Question 47

One way that advertising has shaped media in a negative and unhealthy way is seen in ____, in which reporters are paid by corporations in exchange for favorable treatment and promotion in editorials and commentaries.

A)unfair advertising
B)behavioral targeting
C)stealth sponsorship
D)subliminal advertising

Question 48

Which of the following depicts advertising as it plays its most important role, and demonstrates its most powerful influence, in our society and around the world?

A)communicating with various cultures about their most important social issues (example: dangers of drinking and driving)
B)educating people to become consumers, who by definition start out as "information poor" (example: ingredients in beer)
C)causing people to decide for the first time to try items from a generic classification of goods (example: alcohol)
D)influencing people to choose a certain brand once they've decided to use a product category (example: Budweiser)

Question 49

Which of the following claims demonstrates puffery in advertising?

A)"Only Crest Earns the Dental Seal of Approval Among All Major Brands!"
B)"Ford Trucks Have Lower MPG than Chevy Trucks!"
C)"Tide Beats Cheer in Sales 8th Year in a Row!"
D)"World's Best Cup of Coffee Served with a Smile Here!"

Question 50

Which of the following best defines ethics?

A)moral standards and principles used to evaluate behavior
B)truthful and validated statements and beliefs
C)legal limits placed on personal practices
D)universal and timeless values about what is good or bad

Question 51

Which aspects of advertising are legal but fall into an ethical gray area, making them almost impossible to legislate against?

A)disclaimers
B)emotional appeals
C)testimonials
D)contests and sweepstakes

Question 52

Well-known illustrator Andy Warhol felt strongly that the American ads that had promoted the nation's most popular products over the decades were

A)visual manifestations of a sick society overtaken with consumerism and greed.
B)anti-elitist artworks for the masses depicting ordinary goods used by both rich and poor.
C)pioneering graphic innovations that visually displayed the power of capitalism.
D)flashy images and tasteless visuals that cluttered the cultural landscape.

Question 53

Both the Centers for Disease Control, a highly respected federal agency, and Coca-Cola, an established giant supplying the world with one of its most popular products, have run into problems with ads that

A)made false claims that had to be retracted and corrected.
B)promoted cultural stereotypes while targeting young children.
C)used purposefully confusing and misleading language.
D)were criticized for being explicit and offensive.

Question 54

According to Maslow's hierarchy of needs, ads for breakfast cereals and soft drinks, as well as antibacterial soap and fluoride toothpaste, can be thought of as promotions for products that address

A)physiological needs.
B)love and belonging needs.
C)self-actualizing needs.
D)esteem needs.

Question 55

In their 2004 "Campaign for Real Beauty," the people creating the groundbreaking Dove ads attempted to be realistic, show sensitivity, and fight stereotypes by featuring

A)plus-size models who do not fit the narrow norm of beauty.
B)real women displaying various ethnicities, looks, and sizes.
C)both men and women using Dove products.
D)endorsements by famous elderly actresses with young-looking skin.

Question 56

Stephen Fox, chronicler of advertising history, maintains that America's materialistic consumption culture

A)is a direct result of our society's rush toward progress with massive amounts of advertising.
B)is a healthy situation and a positive economic phenomenon thanks to decades of advertising.
C)is the work of hidden persuaders who create artificial symbols of success and push our buttons to aspire toward these.
D)is reflected by advertising in its visual manifestation of that culture, not caused by advertising.

Question 57

Three teenage girls who hang around together all start to smoke cigarettes, and eventually start to drink beer on weekends.In studying advertising that supposedly makes dangerous and addictive products appealing to young people, multiple research studies have found that decisions on the part of girls like this to use tobacco and alcohol

A)are most strongly influenced by families, friends, and peers, not by advertising.
B)have been increasingly put off until their adult years while still driven somewhat by ads at that time.
C)often stem from hereditary traits.
D)directly relate to advertising campaigns of criminally negligent firms.

Question 58

In recent years, the U.S.Senate has approved a tenfold increase in fines for advertising situations that are determined to step over the line regarding American society's basic ethical principles.What issues are being regulated in this way?

A)ad agencies that knowingly make false claims
B)advertisers that lure children into dangerous or unhealthy behaviors
C)TV and radio stations that violate rules on airing profanity or sexually explicit materials
D)print media with ads that include erotic images or language

Question 59

A high-end specialty store, recognized nationwide for its prestigious reputation, is busy with customers eyeing and buying costly items of clothing with designer labels.They're also adding $400 purses, $500 shoes, and $1,000 bracelets and necklaces to their ensembles.Which basic needs on Maslow's Hierarchy are most likely being fulfilled by these purchases?

A)safety needs
B)love and belonging needs
C)esteem needs
D)self-actualization needs

Question 60

Four friends, all 13-year-old girls, decide to try coloring their hair for the first time.They scan the drugstore shelves together, with no real knowledge and no preference for any particular item, but they each leave with a hair coloring kit.Which concept is involved here?

A)primary demand stimulation
B)mature product promotion
C)product category demand
D)brand/product placement

Question 61

The Wheeler-Lea Amendment in 1938 greatly influenced the future of advertising in America by

A)establishing the powerful Federal Trade Commission (FTC).
B)allowing the FTC to stop practices that were misleading regardless of their impact on competition.
C)granting industries the right to form self-regulatory organizations to reduce FTC interference.
D)reducing FTC control over advertising practices regarding competition and monopoly.

Question 62

Vertical cooperative advertising is usually legal, except when

A)unquantifiable emotional appeals are involved.
B)a representation, omission, or practice is misleading.
C)large corporations and mega-retailers create monopolies in this way.
D)bogus advertising allowances are given in the form of hidden price concessions.

Question 63

If firms decide to use comparison advertisements, they

A)may be required by the FTC to substantiate their claims.
B)share the costs of advertising with local dealers and distributors.
C)are acting in opposition to the recommendations of the American Association of Advertising Agencies.
D)cannot legally mention a competing firm or brand by name.

Question 64

The biggest concern over the future of behavioral targeting involves its growing ability to

A)tap into confidential credit card databanks.
B)jam global traffic with billions of unwanted emails.
C)hack into sensitive government websites.
D)track a person's moves on the Internet.

Question 65

What is one of the most widely recognized standards in the advertising industry, explaining its responsibilities, social influences, and ethical guidelines for decency and honesty?

A)the FTC voluntary commitments
B)the 4As Creative Code
C)the BBB set of guidelines
D)the Code Authority of the NAB

Question 66

A company is found to be making a technically "true" but unfair comparison to a competitor's product.It may be required to add information in future ads clarifying its benefits against those of a competitor in a balanced and fair way.This is called

A)vertical comparative advertising.
B)stealth sponsorship.
C)a trade allowance.
D)a disclaimer.

Question 67

Due to 1990 legislation, the FTC's role in regulating advertising was expanded regarding

A)nutrition labeling.
B)spam.
C)telemarketing.
D)direct mail.

Question 68

Which organization is the newest addition to the federal government's regulatory team regarding advertising issues?

A)the Library of Congress
B)the Federal Communications Commission
C)the Consumer Finance Protection Agency
D)the U.S.Patent Office

Question 69

The U.S.Internet Industry Association differs from similar trade groups of online advertisers in the United Kingdom and Canada in that it

A)has much power and authority to restrict the actions of its members.
B)is a federal organization with legal powers.
C)restricts not only spam but all forms of unsolicited email.
D)has issued no self-regulatory guidelines.

Question 70

Although the courts and the FTC have been quite specific about defining many other practices, the definition of ____ has always been relatively vague.

A)unfair advertising
B)copyright infringement in advertising
C)deception in advertising
D)phishing in online advertising

Question 71

A claim has been reviewed by the NARB and a commercial for a bottled sports drink is judged to be full of allusion, innuendo, and vague health claims.Now the ____ will be held responsible for the false content.

A)CEO of the sports drink supplier
B)advertising agency promoting the sports drink
C)cable television stations that ran the ad
D)sports drink manufacturing factory

Question 72

________, established by the Better Business Bureau, evaluates ads directed at children based on guidelines that encourage sensitivity to their level of sophistication and knowledge, as well as emphasis on positive social traits such as friendship and kindness.

A)The Family Research Council
B)The Children's Food and Beverage Advertising Initiative
C)The Children's Advertising Review Unit
D)Action for Children's Television

Question 73

Which of the four primary consumer protection organizations was the first to be established, and is best known for its publication of Consumer Reports?

A)Consumer Federation of America
B)Consumers Union
C)Consumer Alert
D)Commercial Alert

Question 74

Which of the following is true regarding the concept of consumerism?

A)It is a relatively recent concept first observed in the 20th century.
B)It involves consumer-oriented promotions such as coupons, premiums, and sweepstakes.
C)It defines the tactics that individuals and groups use to enact laws, pressure firms, or target unethical practices regarding goods and services.
D)It refers to the ongoing expansion of contemporary marketing beyond traditional production of ads and commercials, including e-commerce and behavioral targeting.

Question 75

What is the most pressing regulatory issue facing both direct marketing and e-commerce today?

A)the growing flood of unsolicited advertising messages
B)the unethical aspects of contests and sweepstakes
C)the increase in identity theft and fraud
D)the privacy concerns stemming from database development

Question 76

Which company found itself at the center of a widespread movement instigated by consumers, and one of the most publicized events in the history of marketing?

A)Nike
B)General Mills
C)Coca-Cola
D)Procter & Gamble

Question 77

An established cereal manufacturer is being investigated by the FTC for claims that its oatmeal can repair damaged arteries and prevent heart disease.Its executives are aware that if the claims are found to be false, the firm may receive the FTC's most severe penalty, which involves

A)ordering corrective advertising.
B)issuing a cease-and-desist order.
C)ruling on advertising substantiation.
D)dissolving the corporation.

Question 78

A potentially problematic shampoo ad is submitted to the National Advertising Review Board by an upset major competitor that considers its wording to be deceptive.The NARB has several options in the actions it may take, but which outcome is it not authorized to direct?

A)persuading the advertiser to change the wording in the ad
B)assessing a fine against the advertiser
C)publicly identifying the advertiser, complaint, or findings
D)dismissing the case altogether

Question 79

Endorsements, testimonials, or other positive comments about products made by ____ have recently been more tightly restricted by the FTC, requiring that they disclose any payments for these promotions.

A)experts
B)bloggers
C)celebrities
D)average consumers

Question 80

Which of the following actions would be outlawed under the "Cheeseburger Bill," passed by the U.S.House in 2004?

A)featuring high-calorie and high-fat foods during children's programming
B)falsifying nutrition information for fast foods
C)promoting toys to children that tie in with fast foods, sugary drinks, and salty snacks
D)suing food companies for causing someone to become obese