Question 1

Which one of the following would not be offered as support for the argument that advertising benefits consumers?

Accepted Answer

Advertising is primarily focused on increasing demand for a particular brand, so it would not be used as support for the argument that advertising benefits consumers as a whole.

Question 2

According to critics of advertising, advertising educates consumers and informs them of the choices they have including product features and benefits and is helpful in comparing one product to another.

Accepted Answer

Critics of advertising often argue that it manipulates consumers more than it educates them, focusing on creating desires for non-essential goods or exaggerating product benefits, rather than providing objective information for comparing products.

Question 3

One of the basic remedies used by the FTC in dealing with unfair advertising is a consent order, where an advertiser accused of running deceptive advertising agrees to stop without admitting guilt.

Accepted Answer

This statement is true. The FTC often uses consent orders as a means of resolving cases of deceptive advertising without the need for a formal trial or admission of guilt by the advertiser. Under a consent order, the advertiser agrees to stop engaging in the allegedly deceptive practices and to comply with certain requirements to ensure that their advertising is truthful and not misleading in the future.

Question 4

The NARB is a government agency that has the power to enforce government regulations and create new federal standards regarding unfair or deceptive advertising practices.

Accepted Answer

The National Advertising Review Board (NARB) is not a government agency; it is an advertising industry self-regulatory body designed to review and resolve disputes regarding advertising practices.

Question 5

An advertisement for Ziploc freezer bags that compares this Johnson Family of Companies product with a competing product that is factual is viewed as illegal.

Accepted Answer

Comparing products with a competitor's product is legal as long as the comparison is factual and not misleading. It is a common advertising strategy used by companies to highlight the advantages of their product over a competitor's. Therefore, an advertisement for Ziploc freezer bags that compares their product with a competing product is not illegal.

Question 6

Some argue that one of the best aspects of advertising is its contribution to the society's art and culture, sometimes critiquing it and sometimes celebrating it.

Accepted Answer

Advertising can contribute to the society's art and culture by featuring creative and visually striking ads that capture people's attention and inspire them. It can also critique or challenge societal norms, values, and beliefs, sparking conversations or debates that can lead to social, political, or cultural changes. Some people even consider advertising as a form of art or entertainment, citing iconic campaigns or slogans that have become part of popular culture. However, others argue that advertising can also trivialize or commodify cultural elements, appropriating them for commercial purposes or perpetuating stereotypes or prejudices. Therefore, the impact of advertising on art and culture is a matter of interpretation and debate.

Question 7

The National Advertising Review Board (NARB) and the National Advertising Division (NAD) ability to regulate advertisers depends on the cooperation of members.

Accepted Answer

The NARB and NAD are self-regulatory organizations that rely on voluntary cooperation of their member companies to regulate advertising practices.

Question 8

One critical point in the FTC's regulations regarding deception is that they not only include false or deceiving claims but also include missing information that may deceive.

Accepted Answer

The FTC's regulations regarding deception do include not only false or deceiving claims but also missing information that may deceive. This is known as an omission and is considered a type of deception.

Question 9

There is much confusion about subliminal advertising, but research has shown that while people do process some information subliminally, there is no proof that subliminal messages persuade anyone to do anything.

Accepted Answer

Research shows that subliminal messages do not persuade anyone to do anything, although some information may be processed subliminally.

Question 10

The Children's Advertising Review Unit is a government agency that has issued a set of guidelines regarding the use of comparison ads.

Accepted Answer

The Children's Advertising Review Unit (CARU) is not a government agency; it is an industry self-regulatory program established by the advertising industry to promote responsible children's advertising.

Question 11

The argument that "advertising educates consumers" is supported by the claim(s) that

Accepted Answer

All three claims are offered as arguments that advertising educates consumers. Advertising provides information about products and services that consumers need to make informed decisions, and by regularly assessing advertising claims, consumers become more educated about the features, benefits, and values of products. Additionally, consumers become more aware of their own tendencies toward being persuaded by certain types of product information, which helps them make more informed purchasing decisions. Taken together, these arguments suggest that advertising does indeed educate consumers.

Question 12

Critics of advertising maintain that society is not better off with advertising because it "shuffles existing total demand" rather than expanding total demand that would stimulate the economy.

Accepted Answer

Critics of advertising argue that it does not create new demand, but instead, it simply shifts consumer preferences from one product to another. Therefore, advertising does not truly expand total demand in the economy.

Question 13

To judge whether a particular instance of vertical cooperative advertising is a form of unfair competition, you must know if the advertising allowances involved represent hidden price concessions.

Accepted Answer

If the advertising allowances represent hidden price concessions, it could be considered a form of unfair competition as the supplier is essentially offering lower prices to the retailer who uses their products, putting other competing suppliers at a disadvantage. However, if the advertising allowances are transparent and do not involve price concessions, then it would not be considered unfair competition.

Question 14

Television programs like the Smurfs and the Muppets have been banned by the U.S. government because they constitute program-like advertisements to children.

Accepted Answer

This statement is false. The U.S. government has not banned television programs like the Smurfs and the Muppets. However, there are regulations in place to limit the amount of advertising directed at children during these programs.

Question 15

Medical research journals have published articles claiming survey data indicate that advertising "caused" young consumers to begin smoking, but all assessments by the FTC from the 1950s to the present indicate that the primary influences on the decision to smoke are family and peers.

Accepted Answer

The statement in the statement is true, based on the information provided. Medical research journals have claimed that advertising causes young consumers to begin smoking, but assessments by the FTC indicate that family and peers are the primary influences.

Question 16

According to Maslow, when Clorox wipes highlight the germ-harboring aspect of conventional sponges, it is addressing

Accepted Answer

Maslow's hierarchy of needs includes physiological needs, which encompass basic health and safety concerns. The emphasis on germ control in Clorox wipes speaks directly to this need. The other options (self-actualization, love/belonging, and esteem) are higher-level needs that may indirectly relate to a desire for cleanliness, but are not specifically addressed by this product.

Question 17

If supermodel Kate Moss endorses a line of Kmart clothing, the FTC requires that she actually use the product.

Accepted Answer

The FTC requires endorsements to be honest and not misleading, meaning endorsers like Kate Moss must be actual users of the products they endorse unless it's clearly stated otherwise in the advertisement.

Question 18

Which of the following is considered by advertising critics to be a con of advertising in society today?

Accepted Answer

Advertising critics argue that advertising creates false needs in consumers by using tactics such as celebrity endorsements and emotional appeals. They argue that this can lead to overspending and a focus on material possessions rather than more important values.

Question 19

Those who argue that advertising promotes conformity and status seeking consumption behavior are rebutted by those who assert that advertising reflects, not causes, America's age of consumption.

Accepted Answer

Some scholars argue that advertising simply reflects the cultural values and desires of American society, rather than actively shaping or promoting them. However, others contend that advertising does play a role in encouraging people to conform to societal norms and to seek out status through consumption. Nonetheless, the statement in question suggests that the former perspective is being rebutted, which would support the idea that advertising is not necessarily the root cause of consumption-oriented behavior.

Question 20

When critics argue that advertising is superficial, the main criticism is that

Accepted Answer

Advertising is often criticized for being superficial because it tends to focus more on emotional appeal or surface-level attributes rather than providing detailed information about the functional features and performance results of the products being advertised.

Quiz 6: The Regulatory and Ethical Environment of Promotions