Question 1

The cost of products are lowered:

Accepted Answer

High success rates of a product often lead to increased production and sales, which can reduce costs through economies of scale.

Question 2

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

Accepted Answer

The three divisions within a local Better Business Bureau do investigate advertising practices of companies in their geographic area. However, they are actually divided into the categories of merchandise, services, and advertising/sales. The financial division is focused on investigating financial institutions and related practices.

Question 3

According to Maslow's hierarchy of needs structure, ads for breakfast cereals and soft drinks can be thought of as promotions for products that address:

Accepted Answer

Maslow's hierarchy of needs begins with physiological needs, which include basic necessities such as food and beverage. Breakfast cereals and soft drinks are products that address these physiological needs.

Question 4

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.

Accepted Answer

The main restriction of direct mail sweepstakes, as imposed by Congress, is not specifically about the distribution being random and fair across communities and states. Instead, laws focus on ensuring that these promotions are not deceptive, clearly state no purchase is necessary to enter or win, and provide clear information on odds of winning, among other consumer protections.

Question 5

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

Accepted Answer

The answer of The first government restriction on telemarketing required...

Question 6

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.

Accepted Answer

Consumer and industry groups can have significant influence on advertising practices through advocacy, lobbying, and self-regulation, sometimes even more so than government regulations.

Question 7

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

Accepted Answer

Economies of scale refer to the cost savings that come from producing goods in large quantities. Advertising helps businesses to reach more customers, which in turn may increase demand for their products and allow them to produce at a larger scale, thereby reducing their overall costs. This is one of the main arguments in favor of advertising as a means of lowering the cost of goods for consumers.

Question 8

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 of the following basic needs of Maslow's Hierarchy are most likely being fulfilled by these purchases?

Accepted Answer

The purchases of expensive clothing and accessories with designer labels likely fulfill the esteem needs of Maslow's Hierarchy. These individuals may be seeking recognition, prestige, and a sense of accomplishment by owning and wearing these high-end items.

Question 9

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.

Accepted Answer

This statement is true. As of now, the advertising industry has largely self-regulated when it comes to advertising and promotion on the Internet. However, there are some government regulations in place, such as the Federal Trade Commission's guidelines for online advertising and the Children's Online Privacy Protection Act (COPPA).

Question 10

When an NFL football player begins endorsing a line of energy bars and protein drinks, he is required to genuinely demonstrate using the product in the advertisement although does not have to utilize the product in day to day life.

Accepted Answer

The answer of When an NFL football player begins endorsing...

Question 11

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.

Accepted Answer

This statement accurately describes the FTC's advertising substantiation program.

Question 12

Supporters of industry self-regulation claim that self-regulation helps avoid unnecessary government meddling.

Accepted Answer

Supporters of industry self-regulation believe that by regulating themselves, they can effectively address issues without the need for government intervention or regulation. This helps them avoid unnecessary government meddling in their affairs.

Question 13

Which of the following forms the lowest order of needs in Maslow's hierarchy of needs theory?

Accepted Answer

Physiological needs, such as the need for food, water, shelter, and sleep, form the lowest order of needs in Maslow's hierarchy of needs theory. These needs are considered the most basic and essential for survival, and must be met before an individual can move on to fulfilling higher order needs.

Question 14

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

Accepted Answer

Public relations activities are governed by different regulations compared to advertising or direct marketing, which are subject to more specific legal constraints such as truth in advertising laws. PR relies more on earned media rather than paid, and thus, while it must still adhere to general laws regarding defamation, privacy, and intellectual property, it is not regulated under the same specific advertising and marketing laws.

Question 15

According to Maslow's hierarchy of needs theory, which of the following is the highest order of all human needs?

Accepted Answer

According to Maslow's hierarchy of needs, self-actualization needs are the highest order of all human needs. Self-actualization refers to the need for personal growth and fulfillment, achieving one's potential, and self-fulfillment. This level involves the desire to accomplish everything one can, to become the most that one can be.

Question 16

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

Accepted Answer

State governments have limited authority over promotional activities of firms as most companies engage in interstate commerce which falls under federal jurisdiction.

Question 17

An advertisement for a peanut butter product, of one firm, that compares itself to the peanut butter product, of another firm, would be considered illegal because it mentions brand-name goods produced by another firm.

Accepted Answer

Comparative advertising, where one brand compares its product to another, is legal as long as it is truthful, not misleading, and complies with advertising regulations.

Question 18

Many consumers buy products that they perceive to have prestige and status which would be considered needs under Maslow's hierarchy theory.

Accepted Answer

According to Maslow's hierarchy theory, esteem needs involve the need for prestige, recognition, and status. Therefore, buying products that are perceived to have prestige and status would be considered a fulfillment of esteem needs.

Question 19

The CAN SPAM Act does not outlaw all unsolicited emails.

Accepted Answer

The CAN SPAM Act allows for some unsolicited emails, as long as they meet certain requirements such as providing an opt-out mechanism and not using deceptive subject lines.

Question 20

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

Accepted Answer

Consumer groups have been actively involved in advocating against children's advertising and pushing for more restrictions and regulations, often leading to successful outcomes.

Quiz 4: Social Ethical and Regulatory Aspects of Advertising and Promotion