Question 1

Marketing communicators in their various capacities rarely are faced with decisions that have ethical ramifications.

Accepted Answer

Marketing communicators often face decisions that have ethical ramifications, such as promoting products that could potentially harm consumers, using deceptive advertising tactics, or manipulating consumer emotions. It is important for marketers to consider the ethical implications of their decisions and to act responsibly and transparently in their communications.

Question 2

Costs of regulation include cost of complying,enforcement costs,and costs resulting from unintended side effects.

Accepted Answer

This statement is true. The costs of regulation are not just limited to the cost of compliance, but also include enforcement costs and the costs resulting from unintended side effects of regulation.

Question 3

The FDA regulates the brewing and liquor industries.

Accepted Answer

The Alcohol and Tobacco Tax and Trade Bureau (TTB), part of the Department of the Treasury, primarily regulates the brewing and liquor industries, not the FDA.

Question 4

One criticism of advertising is that it creates and perpetuates stereotypes.

Accepted Answer

Advertising has been criticized for perpetuating gender, racial, and cultural stereotypes by portraying certain groups in a certain way. For example, women are often portrayed as overly sexualized and only concerned with their physical appearance, while men are portrayed as aggressive and dominant. These stereotypes can have negative impacts on how these groups are viewed and can limit their opportunities and potential.

Question 5

Over 60 percent of advertising is found to be deceptive.

Accepted Answer

This statement is false. While there are certainly cases of deceptive advertising, the majority of advertising is not deceptive. It is important for advertisers to abide by laws and regulations regarding truth in advertising, and for consumers to be informed and critical when evaluating advertisements.

Question 6

Especially open to ethical debate is the practice of targeting products and communications efforts to segments that,for various psychosocial and economic reasons,are vulnerable to marketing communications,such as children and economically disadvantaged groups.

Accepted Answer

The statement is true as targeting vulnerable segments raises ethical concerns, particularly in regards to manipulation and exploitation.

Question 7

The FTC believes that the entertainment industry to regulate itself regarding the targeting of children with advertisements for violent films,video games,and music,even if the ads are not deemed deceptive or unfair.

Accepted Answer

The FTC has recommended that the entertainment industry should regulate itself when it comes to targeting children with advertisements for violent films, video games, and music, even if the ads are not deemed deceptive or unfair. This recommendation is part of the FTC's efforts to protect children from exposure to violent media content.

Question 8

Publicity differs from advertising because it is not a form of mass communication.

Accepted Answer

Publicity is actually a form of mass communication that is meant to generate attention and interest in a product, service, or idea through media coverage or word of mouth. Advertising, on the other hand, involves paid messages that reach a large audience through various channels such as TV, radio, print, or online ads.

Question 9

A slotting allowance is a standard business practice that benefits retailers and manufacturers equally.

Accepted Answer

Slotting allowances primarily benefit retailers by providing them with upfront payments from manufacturers for shelf space, creating a financial burden on manufacturers, especially smaller ones, and potentially limiting the variety of products available to consumers.

Question 10

The Golden Rule test states that you should take actions that would be viewed as proper by an objective panel of your professional colleagues.

Accepted Answer

The Golden Rule, commonly understood in ethics, is a principle that suggests treating others as one would like to be treated oneself, and does not specifically involve an objective panel of professional colleagues for its application.

Question 11

Four aspects of packaging that involve ethical issues include label information,packaging graphics,packaging safety,and environmental implications of packaging.

Accepted Answer

Label information must be accurate and transparent, packaging graphics should not mislead or make false claims, packaging safety should not compromise consumer health, and environmental implications of packaging should be considered to minimize negative impacts. All of these aspects involve ethical considerations.

Question 12

Big Tech store is required to pay a slotting allowance to manufacturers for each item sold so that the retailer is allowed to restock the manufacturer's products.

Accepted Answer

Slotting allowances are fees paid by manufacturers to retailers for shelf space or for introducing new products, not for each item sold or for the permission to restock products.

Question 13

Billboard advertising of alcohol products is restricted under the Master Settlement Agreement between the federal government and firms in the alcohol industry.

Accepted Answer

The Master Settlement Agreement was between the federal government and tobacco companies, not alcohol companies. Billboard advertising of alcohol products is not restricted under this agreement. However, states have their own restrictions on alcohol advertising, which may include restrictions on billboard advertising.

Question 14

The mission of the National Association of Advertising (NAA)is to improve and strengthen the ad agency business,to advocate advertising,to influence public policy,to resist advertising-related legislation that it regards as unwise or unfair,and to work with government regulators to achieve desirable social and civic goals.

Accepted Answer

The description provided does not accurately represent a real or specific organization known as the National Association of Advertising (NAA) with that mission. The mission statement as described combines elements that might be associated with various advertising and marketing organizations, but it does not accurately describe a single entity's mission.

Question 15

Regulation is justified when consumer decisions are based on false information.

Accepted Answer

When consumers make decisions based on false information, they may not be able to make informed choices. This can lead to negative outcomes for the consumer, such as buying products that may be harmful or wasting money on ineffective products. In such cases, regulation can help ensure that consumers have access to accurate information, which allows them to make informed choices.

Question 16

The FTC is the U.S.government agency with primary responsibility for regulating advertising at both the federal and state levels.

Accepted Answer

The FTC (Federal Trade Commission) is primarily responsible for regulating advertising at the federal level, not at both the federal and state levels. State regulations are typically enforced by state agencies or attorneys general.

Question 17

Consumer privacy is an ethical issue that transcends all marcom activities.

Accepted Answer

The answer of Consumer privacy is an ethical issue that...

Question 18

Growing evidence indicates that much human behavior is not under conscious control.

Accepted Answer

Research in neuroscience and psychology has shown that a significant portion of human behavior is determined by unconscious processes such as automatic responses, habits, and biases. This suggests that people have less control over their behavior than they may realize.

Question 19

For marketing communicators,ethics involves matters of right and wrong,or moral,conduct pertaining to any aspect of marketing communications.

Accepted Answer

Marketing communicators are responsible for communicating with the target audience in a way that is honest, fair, and respectful. Ethics is an integral part of marketing communication and involves making decisions based on moral principles and values. It applies to all aspects of marketing communication, including advertising, sales promotions, direct marketing, public relations, and personal selling.

Question 20

A regulatory disadvantage is increased prices resulting from a reduction in a seller's "informational market power."

Accepted Answer

A regulatory disadvantage typically refers to the burdens or costs imposed on businesses due to regulation, not to the benefits such as reduced prices from diminishing a seller's informational market power. Reducing a seller's informational market power can lead to more competitive pricing and better-informed consumers, which is generally seen as an advantage or benefit of regulation.

Quiz 4: Environmental, Regulatory and Ethical Issues