Deck 18: Regulatory, Ethical, Social, and Economic Issues for Imc

Question 1

Which of the following ads would likely be considered irritating or distasteful to many consumers?

A) ads for weight loss products
B) ads for feminine hygiene products
C) ads for online dating services
D) infomercials for acne remedies

Answer 1

B

Question 2

The mandate that allows the CRTC to preclude Canadian Super Bowl fans from seeing some of the U.S.ads broadcast during the big game is the issue of:

A) advertising limits.
B) signal substitution.
C) cross-border exchange.
D) Canadian protectionism.

Answer 2

B

Question 3

Which of the following is NOT a clause contained in the Canadian Code of Advertising Standards?

A) bait and switch
B) superstitions and fears
C) testimonials
D) subliminal tactics

Answer 3

D

Question 4

Which of the following principles is NOT one of the guidelines that a member of the Association of Canadian Advertisers should use in preparing and evaluating its ads?

A) advertisers must behave responsibly
B) advertisers forego their right to freedom of speech in order to not offend or mislead consumers
C) advertisers make an important contribution to the Canadian economy of culture
D) advertisers support a vibrant, competitive economy

Question 5

Which of the following DOES NOT express a valid conclusion about the truthfulness of advertising?

A) It is difficult to determine what constitutes untruthful or misleading advertising since deception can occur in subtle ways.
B) One of the major complaints about advertising is that many ads are misleading.
C) Most advertisers do not intentionally mislead or deceive consumers, but some will test the limits of various rules and regulations to gain a competitive advantage.
D) National advertisers are likely to risk consumer trust and confidence by intentionally deceiving them.

Question 6

The Advertising Standards Canada guidelines do not cover product evaluations and reviews found on the Internet because:

A) the Internet is too new a medium to be included in guidelines crafted twenty years ago.
B) product reviews on websites and blogs are not considered advertising.
C) the guidelines make certain concessions for more innovative media types.
D) there have not yet been any complaints against this type of communication.

Question 7

Which of the following is NOT an area from which complaints to the Standards Division of the ASC arise?

A) contravention of government guidelines
B) consumer complaints
C) trade disputes
D) special interest group complaints

Question 8

In the 1950s and 1960s,many auto shops gave away promotional calendars to customers.The calendars typically showed some buxom beauty that was scantily clothed and posed in some atypical position in or on an automobile.Critics of advertising today would call such calendars:

A) asocial
B) unfair
C) deceptive
D) offensive and in bad taste

Question 9

The decision to advertise on "better-for-you" products to children stems directly from:

A) criminal investigations into food product development.
B) the growing obesity problem among children.
C) McDonald's being the first to offer fruit snacks as a substitute for french fries.
D) elementary schools deciding not to provide high-sugar snacks in their vending machines and cafeterias.

Question 10

The CRTC is involved in:

A) false ads
B) misleading ads
C) advertising limits
D) alcohol and drugs

Question 11

Which of the following expresses a valid conclusion about the truthfulness of advertising?

A) It can be difficult to determine if an ad is misleading consumers since deception is partly dependent on how a consumer perceives an advertising message.
B) Even though most advertisers intend to deliberately mislead consumers, they often present only information that is favourable to their position.
C) Many critics of advertising feel that advertising should include puffery or embellished messages.
D) Many critics of advertising do not believe that advertising can or should be informative.

Question 12

CRTC gender portrayal guidelines pertain to each of the following overall clauses EXCEPT:

A) sexuality.
B) decision making.
C) ageism.
D) violence.

Question 13

Which one of the following statements about the Advertising Standards Canada is NOT true?

A) The ASC (Advertising Standards Canada) is a not-for-profit, self-regulatory, industry body with a mandate to create and maintain community confidence in advertising.
B) The ASC represents advertisers, media organizations, and advertising industry suppliers.
C) Its Standards Division administers government-regulated codes.
D) Its Advertising Clearance Division previews advertisements in five industry categories, as well as ads directed toward children.

Question 14

The CRTC ensures that specialty services carry a maximum of ___ minutes of advertising per hour during the broadcast day.

A) 5
B) 12
C) 15
D) 20

Question 15

Which area is NOT regulated by the CRTC (Canadian Radio-Television and Telecommunications Commission)?

A) Infomercials
B) Advertising limits
C) False or misleading ads
D) Signal substitution

Question 16

_____ are moral principles and values that govern the actions and decisions of an individual or group.

A) Regulations
B) Guidelines
C) Ethics
D) Social criticisms

Question 17

The federal Competition Act addresses ______.

A) infomercials
B) advertising limits for TV commercials during the broadcast day
C) Internet
D) false or misleading advertising

Question 18

The ______ is a not-for-profit,self-regulatory industry body with a mandate to create and maintain community confidence in advertising.

A) CRTC
B) Competition Act
C) Consumer protection Act
D) Advertising Standards Canada

Question 19

The ______ approves all infomercials for any television station and network.

A) CRTC
B) Competition Act
C) Consumer Protection Act
D) Advertising Standards Canada

Question 20

According to the Consumer Protection Act of Quebec,it is illegal to direct commercial advertising messages to persons younger than:

A) 6
B) 10
C) 13
D) 15

Question 21

Which of the following statements describing how advertising portrays women is NOT the case?

A) Advertising is often criticized for portraying women in strong leadership roles.
B) While sexism and stereotyping of women still exists, advertising's portrayal of women has improved in recent years.
C) Many advertisers depict women in a diversity of roles since their place in society has changed in recent years.
D) Stereotypical portrayals of women show them as lacking intelligence and credibility.

Question 22

Defenders of advertising take issue with the argument that it should be limited to dealing with basic needs.One of their reasons is:

A) In our society, most higher-level needs are already satisfied for most people.
B) It is natural to move from higher-order needs to basic ones.
C) Consumers are free to choose the degree to which they attempt to satisfy their desires.
D) Wise advertisers associate their products and services with lower-level needs like safety and food.

Question 23

Which of the following describes the use of sexual appeals in advertising?

A) Sexual appeals are often criticized because they are not even relevant or appropriate for the product being advertised.
B) Sexual appeals are less often criticized for containing nudity or using suggestive dialogue as consumers become more used to these elements in movies and video games.
C) Sexual appeals are never criticized because they are demeaning to men.
D) Networks have the right to scrutinize commercials carefully when it comes to sexually oriented advertising since they are similarly diligent with their programs.

Question 24

The consumer socialization process:

A) refers to how consumers satisfy their need to belong
B) explains why consumers will never completely abandon department store shopping for Internet shopping
C) is the acquiring of skills needed to function in the marketplace
D) explains how marketers engage in relationship marketing

Question 25

Which of the following media would be most vulnerable to influence and pressure from advertisers on the type of stories the medium covers?

A) a major television network such as CBC
B) a major newspaper such as The Globe and Mail
C) a major magazine such as Time or Maclean's
D) a growing newspaper or magazine which receives a high amount of advertising from a particular industry

Question 26

Each of the following statements describes advertising that can be perceived as irritating or distasteful EXCEPT:

A) Consumers can be offended by the mere fact that certain products such as contraceptives are even advertised.
B) A study of prime time commercials found that consumers have become used to ads for personal care products, and they seldom perceive them as irritating or distasteful any more.
C) Consumers tend to dislike ads for products they don't use or brands they don't buy.
D) Ads using sexual appeals or nudity offend many consumers.

Question 27

Stereotypical portrayals of adult women in North American television and print advertising emphasize their:

A) activism and autonomy
B) power
C) passivity and deference
D) ability to achieve under any circumstances

Question 28

Acquiring the skills needed to function in the marketplace is called the _____ process.

A) consumer socialization
B) consumer education
C) caveat emptor
D) needs-focus

Question 29

By creating needs rather than merely fulfilling them,by surrounding consumers with images of the good life,and by showing products as symbols of status and success,advertising can create:

A) ethnocentricity
B) consumer socialization
C) materialism
D) informative ads

Question 30

For which of the following products might one argue that advertising has created needs rather than responded to them?

A) automobiles
B) calculators
C) canned soup
D) designer jeans

Question 31

Which of the following is NOT a social criticism of advertising?

A) Advertising is offensive and distasteful.
B) Advertising takes advantage of children.
C) Advertising increases product costs and reduces competition.
D) Advertising makes consumers buy things they don't need.

Question 32

Critics of advertising aimed at children use all of the following arguments to explain why it is wrong EXCEPT:

A) preschool children cannot discriminate between commercials and television programs
B) children lack an understanding of how advertising works and thus cannot effectively use cognitive defences against it
C) children do not perceive the selling or persuasive intent of commercials
D) advertising is a part of life, and children must learn to deal with it as part of the consumer socialization process

Question 33

Critics of advertising claim that it can have a(n)_____ effect on consumer values by encouraging ____,which is a preoccupation with material things rather than intellectual or spiritual concerns.

A) positive; corporeality
B) adverse; materialism
C) negative; cocooning
D) detrimental; stereotyping

Question 34

Which of the following is an argument that supports the charge that advertisers can and do control the media?

A) Advertisers need the media more than the media needs any individual advertisers.
B) The media are very dependent on advertising as the source of their income.
C) Many media have a broad base of advertiser support and can afford to lose advertisers attempting to exert control over them.
D) There is no such argument; it is in the best self-interest of the media not to be influenced or controlled by the advertiser.

Question 35

A recent study suggests that minorities in Canadian advertising are _________.

A) very overrepresented
B) under-represented
C) reflecting the Canadian population
D) not represented at all

Question 36

According to those who believe that advertising does NOT have an adverse effect on consumer values,advertising:

A) is a major determinant of society's taste and values
B) is merely a reflection of society's tastes and values
C) is solely accountable for the increase in materialism due to its nature and power
D) cannot create needs but only exploit existing ones

Question 37

The type of advertising appeal that has received the most criticism for being in poor taste is:

A) personal computer ads targeted at children
B) fear appeals used to sell shampoos and deodorants
C) humorous appeals used to make fun of people who are socially inept
D) ads using sex and/or nudity

Question 38

Using economic censorship,applying pressure to limit the coverage of a controversial story that might reflect negatively on a company and trying to control the editorial content of magazines are all ways that:

A) consumer advocates fight for the rights of the masses.
B) media manipulates advertisers.
C) advertisers exert influence on the media.
D) media controls content on television.

Question 39

Young children may be especially vulnerable to advertising for all of the following reasons EXCEPT:

A) they lack the experience and knowledge required to understand and evaluate persuasive messages
B) they cannot distinguish between reality and fantasy
C) they often have trouble differentiating between commercials and programs
D) their parents do not always perceive the selling intent of commercials

Question 40

Many advertising experts argue that what underlies the increased use of shock appeal is:

A) the pressure on marketers and their agencies to do whatever it takes to get their ads noticed.
B) actually, the reduction in clutter has made shock appeal less necessary.
C) that sexual appeal is having less of an effect on audiences.
D) it is a new type of appeal that consumers tend to react to.

Question 41

From an economic perspective,advertising might lower the cost of a product by:

A) creating barriers to entry for less efficient firms
B) moving consumers to the consumer socialization stage of the buying process
C) making it possible for firms to realize economies of scale through expansion of sales volume
D) allowing firms to advertise at high levels along with competitors

Question 42

The belief that advertising equals _____ reflects traditional economic thinking that views advertising as a way to change consumers' tastes,lower their sensitivity to price,and build brand loyalty among buyers of the advertised brand.

A) economies of scale
B) materialism
C) competitive advantage
D) market power

Question 43

Which of the following statements can be used to refute the argument that advertising reduces the number of choices available to consumers?

A) Advertising can be used to create and maintain brand loyalty for dominant brands.
B) Dominant brands can afford to spend more on advertising and that makes it difficult for smaller brands to compete against them.
C) Heavily advertised brands dominate the market in certain product categories such as soft drinks, beer, and cereal.
D) When a successful new product is introduced, competitors quickly follow and use advertising to inform consumers about their brand.

Question 44

Procter & Gamble spends millions of dollars a year on advertising for its various consumer products and can make large media purchases at rates lower than its smaller competitors.This is an example of how a large advertiser can achieve a competitive advantage based on:

A) differentiation
B) economies of scale
C) market aggrandizement
D) discrimination

Question 45

For many years,Hershey's spent very little money on advertising,yet its chocolate bar was a successful brand.This success can be interpreted as evidence that:

A) advertising is really not needed for a brand to be successful
B) advertising increases product costs and prices
C) luck plays a major role in the success of a product
D) product quality and image are important determinants of success

Question 46

Many economists argue that advertising can have a detrimental effect on competition by:

A) creating barriers to entry that results in less competition and higher prices
B) allowing unfair comparative advertising
C) minimizing the importance of pricing and distribution strategy
D) lessening the importance of good budgeting strategies

Question 47

The belief that advertising equals _____ sees advertising as providing consumers with useful information,increasing their price sensitivity,and increasing competition in the market.

A) information
B) materialism
C) market power
D) competitive advantage

Question 48

Economists argue that advertising can have a negative effect on consumer choice by:

A) using market aggregation
B) reducing the opportunities for new products to be introduced
C) adding to the cost of products and discouraging competition and market entry
D) creating brand monopolies

Question 49

A situation where a company creates conditions that makes it difficult for other firms to enter a market is known as:

A) a barrier to entry
B) economies of scale
C) a market blockade
D) market dominance

Question 50

According to Shelby Hunt,the purpose of all advertising is to:

A) inform
B) persuade
C) enhance brand image
D) change attitude

Question 51

What is the traditional defense for advertising's role in our economic system?

A) Advertising leads to an increased standard of living.
B) Advertising stimulates new product development.
C) Advertising provides useful information for buying decisions.
D) Advertising increases competition and prevents monopolies.

Question 52

Critics of advertising argue that:

A) monies spent on advertising is an expense that must be covered and is generally passed on to the consumer
B) consumers are only willing to purchase heavily advertised brands and thus will end up paying more for them
C) advertising makes markets more competitive, which in turns requires more advertising and more price competition
D) advertising makes consumers purchase products and services for irrational reasons

Question 53

Defenders of advertising that argue that advertising is NOT a barrier to market entry contend that:

A) large volumes of advertising are necessary to compete in many industries
B) there are economies of scale in advertising
C) advertising is only one factor amongst many that contribute to the success of a product
D) there is no relationship between intensity of advertising and market share