Question 1

A full warranty implies that all parts of the product and all types of defects are covered by the company's guarantee.

Accepted Answer

A full warranty provides coverage for all parts of the product and all types of defects, so the statement is true.

Question 2

Targets of comparative advertising have no recourse if they think their competition has gone too far.

Accepted Answer

Targets of comparative advertising do have some legal recourse if they feel their competition has made false or misleading claims. They can file a complaint with advertising regulation agencies like the Federal Trade Commission or pursue legal action for false advertising. However, the specific legal options available vary depending on the country and its laws.

Question 3

Sexual references in advertising create more of a backlash today than they did two or three decades ago.

Accepted Answer

False

Question 4

The effects of advertising have clearly had a net positive effect on society.

Accepted Answer

While advertising has many benefits, such as informing consumers about products and services, creating brand recognition, and driving economic growth, it can also have negative effects such as promoting materialism, creating unrealistic beauty standards, and contributing to environmental degradation. Therefore, the net effect of advertising on society is debatable and cannot be clearly defined as positive.

Question 5

Advertising hard liquor on television used to be illegal in the United States.

Accepted Answer

The answer of Advertising hard liquor on television used to...

Question 6

The consumer movement is generally traced back to a single cause or event,although the specific incident varies from author to author.

Accepted Answer

The consumer movement is a complex phenomenon that emerged over time due to various factors such as increased awareness, changes in market structures, advances in technology, and government regulations, rather than a single cause or event. While some authors may point to particular incidents, it is important to recognize that the consumer movement was a gradual and ongoing process that evolved through collective efforts and social movements.

Question 7

Experts predict that ad creep will continue to expand.

Accepted Answer

Ad creep refers to the gradual increase in the number of advertisements appearing in various media, and it is expected that this trend will continue to grow in the future.

Question 8

Comparative advertising always affects advertising positively.

Accepted Answer

Comparative advertising can have mixed effects; it can be positive by highlighting a product's advantages but can also lead to negative consumer perceptions if seen as overly aggressive or misleading.

Question 9

The effects of advertising have clearly had a net negative effect on society.

Accepted Answer

The statement is too broad and generalizing. While advertising can have negative effects such as promoting harmful products or creating unrealistic beauty standards, it can also have positive effects such as promoting helpful products or creating awareness for important social issues. Therefore, it is not fair to say that the net effect of advertising is always negative.

Question 10

The origin of consumer activism can be traced back to the late 1700s,to the Boston Tea Party.

Accepted Answer

The answer of The origin of consumer activism can be...

Question 11

Most consumers today accept that advertising attempts to persuade them.

Accepted Answer

Advertising is a form of marketing communication that aims to influence the behavior or perception of the audience toward a product or service. Most consumers understand that advertising is designed to persuade them to take some form of action, such as buying a product, trying a service, or visiting a website. Therefore, the statement that most consumers today accept that advertising attempts to persuade them is true.

Question 12

Nearly half of CEOs surveyed concede that their companies do not deserve their customers' loyalty.

Accepted Answer

According to a survey by Accenture, 48% of CEOs believe that their companies do not deserve their customers' loyalty.

Question 13

If the Children's Advertising Review Unit (CARU)cannot get advertisers to modify their campaigns,CARU must let the matter drop with no further action.

Accepted Answer

If CARU cannot get advertisers to modify their campaigns, they can refer the matter to the Federal Trade Commission or other appropriate government agencies for further action.

Question 14

Customer relationship management (CRM)is the ability of an organization to retain profitable customers.

Accepted Answer

CRM aims to cultivate long-term relationships with customers by providing value and personalized experiences, thus increasing the likelihood of repeat purchases and customer loyalty. The ultimate goal is to maximize customer lifetime value and retain profitable customers.

Question 15

Self-regulation in advertising relies on the advertiser itself to control its advertising conduct and performance.

Accepted Answer

Self-regulation in advertising means that the advertising industry itself sets and enforces standards for advertising conduct and ethics. It relies on advertisers to regulate their own advertising practices and ensure that they are fair, truthful, and not misleading.

Question 16

The recent settlement with tobacco companies has successfully resolved the issue of advertising tobacco products to children.

Accepted Answer

The recent settlement with tobacco companies did impose some restrictions on advertising and marketing efforts but it did not completely resolve the issue of advertising tobacco products to children. Children are still exposed to tobacco marketing through various channels like internet, movies, and sports events.

Question 17

The Truth in Lending Act requires all suppliers of consumer credit to fully disclose all credit terms and to permit a 3-day right of rescission in any transaction involving a security interest in the consumer's residence.

Accepted Answer

This is the basic requirement of the Truth in Lending Act (TILA). Under TILA, creditors are required to provide written disclosures of the terms and costs of credit to consumers. The 3-day right of rescission allows consumers to cancel certain credit transactions within a 3-day period. However, this right does not apply to all transactions and there are certain exceptions under the law.

Question 18

Not telling the whole truth in advertisements is a widely used practice called concealing facts.

Accepted Answer

Concealing facts in advertisements is unfortunately a common practice, where companies may not disclose all relevant information about a product or service in order to make it more appealing to potential customers.

Question 19

The majority of nutrition bars exceed the health benefits their makers claim.

Accepted Answer

Most nutrition bars do not exceed the health benefits claimed by their makers; they often contain added sugars and processed ingredients, which can diminish their overall health value.

Question 20

A limited warranty means that the company guarantees all parts of the product and all types of defects,but only for a limited period of time.

Accepted Answer

A limited warranty typically means that the warranty only covers certain parts, defects, or conditions and not all types of defects or parts of the product.

Quiz 13: Consumer Stakeholders: Information Issues and Responses