Question 1

The "creative revolution" in advertising refers to
A) The move from black and white to color advertising.
B) The move from talking about a product to showing what a product can do.
C) The move from showing what a product can do to making the product a status symbol.
D) The move from making a product a status symbol to using subliminal messaging to "force" consumers to buy the product.

Accepted Answer

C

Question 2

The debate over advertising fast food and other "junk foods" to kids is in effect settled, since federal and state laws have put limits on that advertising.

Accepted Answer

While some limitations on advertising fast food and junk food to kids have been put in place by federal and state laws, the debate over whether or not it should be allowed to continue is ongoing and not fully settled.

Question 3

Discuss the standards of the Creative Code of the American Associate of Advertising Agencies.

Accepted Answer

The advertisers will not knowingly create advertising that contains: (a) false or misleading statements or exaggerations; (b) testimonials that do not reflect the real opinion of the individual(s) involved; (c) misleading price claims; (d) claims insufficiently supported or that distort the true meaning or practicable application of statements; and (e) offensive statements, suggestions or pictures.

Question 4

What forms can deceptive advertising claims take?

Accepted Answer

The answer of What forms can deceptive advertising claims take?...

Question 5

The Lanham Act:
I. Focuses on trademark registration and protection.
II. Was passed in reaction to the Great Depression.
III. Gives competitors the right to sue for false claims a rival company makes about the competitor's product.
IV. Does not allow a company to sue for false claims a rival company makes about their own products.
A) I & II only
B) II & III only
C) I, I and III only
D) I, II III, and IV

Accepted Answer

The Lanham Act focuses on trademark registration and protection (I) and allows competitors to sue for false claims a rival company makes about the competitor's product (III). It was not specifically passed in reaction to the Great Depression (II), and it does allow companies to sue for false claims about their own products (IV).

Question 6

In the case of R.J. Reynolds Tobacco Company, et al. v. FDA, what was the majority opinion regarding the First Amendment and the graphic warning requirements?

Accepted Answer

The answer of In the case of R.J. Reynolds Tobacco...

Question 7

Direct-to-consumer advertising of prescription drugs began in the late 1980's to early 1990's. Based on the information in the Norplant case in the text, discuss the reasons why it should or should not be allowed.

Accepted Answer

The answer of Direct-to-consumer advertising of prescription drugs began in...

Question 8

Discuss some of the ways the FTC has curbed online marketing efforts.

Accepted Answer

The answer of Discuss some of the ways the FTC...

Question 9

What is the Lanham Act? To succeed in suit under the Lanham Act, what must a plaintiff prove?

Accepted Answer

The answer of What is the Lanham Act? To succeed...

Question 10

Discuss how the fast food industry's response to the obesity epidemic in children has changed since the publication of the Surgeon General's report.

Accepted Answer

The answer of Discuss how the fast food industry's response...

Question 11

According to John Kenneth Galbraith, the theory of consumer demand is based on the following broad assumption(s):
I. Socialism will work in all societies because consumers are willing to share their wealth.
II. The urgency of wants does not diminish as more of them are satisfied.
III. Wants originate in the personality of the consumer.
A) I only
B) I and II
C) III only
D) II and III

Accepted Answer

The first assumption about socialism is not related to the theory of consumer demand. The second and third assumptions are key components of the theory, as it is based on the idea that individuals have unlimited wants that do not diminish as they acquire more goods or services, and that these wants stem from their individual personalities. Therefore, the correct answer is II and III.

Question 12

Obesity in children has continued to rise since 1976 and approximately ¾ of all teens and youth are overweight.

Accepted Answer

While obesity rates in children have increased since 1976, the claim that approximately ¾ of all teens and youth are overweight is exaggerated and not supported by current data.

Question 13

According to the Learned Intermediary Rule, pharmaceutical manufacturers do not have to warm consumers about drug dangers as long as they have adequately warned physicians.

Accepted Answer

The Learned Intermediary Rule states that pharmaceutical manufacturers are not required to warn consumers directly about drug dangers. Instead, they must provide adequate warning to the prescriber, who is considered the "learned intermediary" between the manufacturer and the patient. The prescriber is responsible for communicating the risks and benefits of the medication to the patient.

Question 14

Citizens have always been afforded freedom of speech after the ratification of the U.S. Constitution.

Accepted Answer

The U.S. Constitution originally did not explicitly guarantee freedom of speech; it was the First Amendment, ratified in 1791, that provided this protection.

Question 15

Identify the true statement(s) regarding freedom of speech:
I. It was not until the 1920s that legal doctrines protecting speech when offensive began to be recognized by the courts.
II. In the First National Bank v. Bellotti case, the Supreme Court struck down a state law prohibiting a corporation to advertise to influence voters on issues that did not "materially affect" its business.
III. In the Virginia Board case, the U.S. Supreme Court failed to link the "right to receive information and ideas" with the traditional values that underlie free speech.
IV. According to the Central Hudson decision, "protected commercial speech" cannot be regulated.
A) I & II only
B) II & III only
C) II, III and IV only
D) I, II III, and IV

Accepted Answer

Statement I is true as the recognition of legal doctrines protecting offensive speech began in the 1920s. Statement II is true as the Supreme Court did strike down the state law in the First National Bank v. Bellotti case. Statement III is false because the Virginia Board case did link the right to receive information with free speech values. Statement IV is false because the Central Hudson decision allows for regulation of commercial speech under certain conditions.

Quiz 7: Marketing and Technology: Choice and Manipulation

The "creative revolution" in advertising refers to