Deck 13: Consumer Stakeholders: Information Issues and Responses

Question 1

A full warranty implies that all parts of the product and all types of defects are covered by the company's guarantee.

Answer 1

True

Question 2

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

Answer 2

False

Question 3

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

Answer 3

False

Question 4

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

Question 5

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

Question 6

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

Question 7

Experts predict that ad creep will continue to expand.

Question 8

Comparative advertising always affects advertising positively.

Question 9

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

Question 10

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

Question 11

Most consumers today accept that advertising attempts to persuade them.

Question 12

Nearly half of CEOs surveyed concede that their companies do not deserve their customers' loyalty.

Question 13

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.

Question 14

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

Question 15

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

Question 16

The recent settlement with tobacco companies has successfully resolved the issue of advertising tobacco products to children.

Question 17

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 18

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

Question 19

The majority of nutrition bars exceed the health benefits their makers claim.

Question 20

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 21

Consumers are readily pursuing green products.

Question 22

The power held by consumers comes from

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

Question 23

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 24

Issues related to product information include all of the following except

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

Question 25

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 26

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 27

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 28

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 29

The father of the consumer movement is

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

Question 30

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 31

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 32

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 33

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 34

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

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

Question 35

Recently,billboard advertising to children that furthers childhood obesity was labeled as a contributing factor.

Question 36

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)consumerism.
D)purchaser power.

Question 37

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

Question 38

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 39

Information that communicates truths,and avoids exaggeration and innuendo is

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

Question 40

Advertising abuses include all of the following types except

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

Question 41

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)regulate the plotlines of children's shows.
D)limit the number of hours children could watch television.

Question 42

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 43

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 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

Which of the following is not part of CARU'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 46

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 47

The fact that Abercrombie and Fitch terminated its sexually explicit catalogue is evidence that

A)the Christian right is changing American values.
B)the feminist movement is an active force in advertising.
C)sex does not necessarily sell.
D)consumers are more interested in clothing than in sex.

Question 48

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 49

Advertising claims that cannot be substantiated by evidence are termed

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

Question 50

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 51

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 52

CARU would object to tobacco ads directed toward children as a violation of which of its principles?

A)do not exploit the imagination of young children
B)products that are inappropriate for use by children should not be advertised to them
C)develop advertising that addresses itself to positive social behavior
D)incorporate minority and other groups in advertisements

Question 53

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 54

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 55

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

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

Question 56

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 57

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 58

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

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

Question 59

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 60

An implied warranty is

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

Question 61

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 environment.
C)the need to achieve consumerism from one organization to another.
D)Product safety net and consumer protection infrastructure have serious holes.

Question 62

Provide a short answer to each of these questions.Be sure to fully explain your answer.
Describe the ways in which the Internet has facilitated the consumer movement.

Question 63

Provide a short answer to each of these questions.Be sure to fully explain your answer.
What is the basic reason for the ethical issues surrounding product information?

Question 64

Provide a short answer to each of these questions.Be sure to fully explain your answer.
In your opinion,is the use of American flags and patriotic themes appropriate in advertising?
Students will provide different answers to this question.Those who oppose the concept will most likely invoke some version of the argument that patriotism and commerce are two separate spheres (the same basic concern that Michael Walzer expresses in Spheres of Justice),while those who support it will probably argue that economic activity is (or at least is an important aspect of)patriotism.This might be a good time to explore the question of the students' values--how important is economic well-being in their scheme of the good life?

Question 65

Provide a short answer to each of these questions.Be sure to fully explain your answer.
Why is the role of business's social responsibility so central to the question of advertising?

Question 66

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 67

The Federal Trade Commission (FTC)

A)maintains free and fair completion in the economy.
B)protects misleading practices.
C)authorizes industry-wide trade regulation rules.
D)Monitors competitive practices.

Question 68

The Credit Card Act of 2009

A)is likely to reduce the cost of credit cards.
B)offers an opt out provision which is really a right to cancel the credit card.
C)provides universal opportunity for rate increases.
D)provides availability of cards to young people.

Question 69

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 70

"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 71

Provide a short answer to each of these questions.Be sure to fully explain your answer.
Describe the main issues related to using psychological appeals in advertising.

Question 72

Provide a short answer to each of these questions.Be sure to fully explain your answer.
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 73

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 74

Provide a short answer to each of these questions.Be sure to fully explain your answer.
Why is advertising to children particularly troubling to ethicists?

Question 75

The Consumer Financial Protection Agency

A)is still under debate.
B)is intended to right rules for marketing products.
C)is motivated by innocent banks in the credit crisis.
D)has critics who believe in more government control.

Question 76

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 77

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 78

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 79

Provide a short answer to each of these questions.Be sure to fully explain your answer.
Explain how digital video recorders such as TiVo have contributed to ad creep.

Question 80

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