Deck 18: Regulatory, Ethical, Social, and Economic Issues for IMC

Question 1

Which of the following DOES NOT express a valid conclusion about the truthfulness of advertising?

A) One of the major complaints about advertising is that many ads are misleading.
B) National advertisers are likely to risk consumer trust and confidence by intentionally deceiving them.
C) Most advertisers do not intentionally mislead or deceive consumers, but some will test the limits of various rules and regulations to gain a competitive advantage.
D) It is difficult to determine what constitutes untruthful or misleading advertising since deception can occur in subtle ways.

Answer 1

B

Question 2

The CRTC ensures that conventional TV and radio stations carry a maximum of ________ minutes of advertising per hour during the broadcast day.

A) 15
B) 8
C) 5
D) There is no advertising time limit for conventional TV and radio stations.

Answer 2

D

Question 3

The CRTC ensures that specialty services carry a maximum of minutes of advertising per hour during the broadcast day.

A) 12
B) 5
C) 15
D) There is no advertising time limit for specialty TV services.

Answer 3

A

Question 4

Mattel advertised a Parisian Barbie doll, complete with chic outfit, a designer purse, a convertible sports car and a tiny Eiffel Tower. While the outfit was included with the doll, the ad failed to mention that the other accessories were sold separately. This false impression would fall under the jurisdiction of:

A) the Association of Canadian Advertisers
B) the Competition Act
C) Advertising Standards Canada
D) the CRTC

Question 5

are moral principles and values that govern the actions and decisions of an individual or group.

A) Social criticisms
B) Regulations
C) Ethics
D) Guidelines

Question 6

Which of the following is NOT an area from which complaints to the Standards Division of the ASC arise?

A) Consumer complaints
B) Contravention of government guidelines
C) Special interest group complaints
D) Advertiser disputes

Question 7

Which of the following would NOT fall under the Competition Act?

A) Triscuit showing misleading portrayals of package size and number of portions in a box
B) Mr. Clean making false claims of product performance
C) Xerox portraying women in non-leadership roles
D) Bell hiding mandatory fees in fine-print disclaimers

Question 8

The CRTC is involved in the regulation of:

A) advertising time limits
B) misleading ads
C) false ads
D) alcohol and drugs

Question 9

Which of the following is NOT a clause contained in the Canadian Code of Advertising Standards?

A) superstitions and fears
B) subliminal tactics
C) bait and switch
D) testimonials

Question 10

Advertising Standards Canada gender portrayal guidelines pertain to each of the following overall clauses EXCEPT:

A) ageism
B) violence
C) decision making
D) sexuality

Question 11

According to the Consumer Protection Act of Quebec, it is illegal to direct commercial advertising messages to persons younger than:

A) 6
B) 13
C) 15
D) 10

Question 12

The federal Competition Act addresses _.

A) false or misleading advertising
B) infomercials
C) Internet
D) advertising limits for TV commercials during the broadcast day

Question 13

Which area is NOT regulated by the CRTC (Canadian Radio-Television and Telecommunications Commission)?

A) Signal substitution
B) Infomercials
C) Advertising time limits
D) False or misleading ads

Question 14

The decision to advertise on "better-for-you" products to children stems directly from:

A) criminal investigations into food product development.
B) McDonald's being the first to offer fruit snacks as a substitute for french fries.
C) elementary schools deciding not to provide high-sugar snacks in their vending machines and cafeterias.
D) the growing obesity problem among children.

Question 15

The is a not-for-profit, self-regulatory industry body with a mandate to create and maintain community confidence in advertising.

A) Advertising Standards Canada
B) Competition Act
C) Consumer protection Act
D) CRTC

Question 16

Which of the following principles is NOT one of the guidelines that a member of the Association of Canadian Advertisers should use in preparing and evaluating its ads?

A) advertisers forego their right to freedom of speech in order to not offend or mislead consumers
B) advertisers must behave responsibly
C) advertisers support a vibrant, competitive economy
D) advertisers make an important contribution to the Canadian economy of culture

Question 17

The Advertising Standards Canada guidelines do not cover product evaluations and reviews found on the Internet because:

A) the guidelines make certain concessions for more innovative media types.
B) there have not yet been any complaints against this type of communication.
C) product reviews on websites and blogs are not considered advertising.
D) the Internet is too new a medium to be included in guidelines crafted twenty years ago.

Question 18

The mandate that allows the CRTC to preclude Canadian Super Bowl fans from seeing some of the U.S. ads broadcast during the big game is the issue of:

A) advertising time limits.
B) Canadian protectionism.
C) cross-border exchange.
D) signal substitution.

Question 19

Which one of the following statements about the Advertising Standards Canada is NOT true?

A) Its Standards Division administers government-regulated codes.
B) Its Advertising Clearance Division previews advertisements in five industry categories, as well as ads directed toward children.
C) The ASC (Advertising Standards Canada) is a not-for-profit, self-regulatory, industry body with a mandate to create and maintain community confidence in advertising.
D) The ASC represents advertisers, media organizations, and advertising industry suppliers.

Question 20

The approves all infomercials for any television station and network.

A) Consumer Protection Act
B) CRTC
C) Advertising Standards Canada
D) Competition Act

Question 21

In the 1950s and 1960s, many auto shops gave away promotional calendars to customers. The calendars typically showed some buxom beauty that was scantily clothed and posed in some atypical position in or on an automobile. Critics of advertising today would call such calendars:

A) deceptive
B) offensive and in bad taste
C) unfair
D) asocial

Question 22

Which of the following ads would likely be considered irritating or distasteful to many consumers?

A) ads for weight loss products
B) ads for online dating services
C) ads for feminine hygiene products
D) infomercials for acne remedies

Question 23

Which of the following expresses a valid conclusion about the truthfulness of advertising?

A) It can be difficult to determine if an ad is misleading consumers since deception is partly dependent on how a consumer perceives an advertising message.
B) Many critics of advertising feel that advertising should include puffery or embellished messages.
C) Many critics of advertising do not believe that advertising can or should be informative.
D) Even though most advertisers intend to deliberately mislead consumers, they often present only information that is favourable to their position.

Question 24

According to author and marketing theorist, Shelby Hunt, the purpose of all advertising is to:

A) inform
B) persuade
C) change attitude
D) enhance brand image

Question 25

The type of advertising appeal that has received the most criticism for being in poor taste is:

A) personal computer ads targeted at children
B) humourous appeals used to make fun of people who are socially inept
C) fear appeals used to sell shampoos and deodorants
D) ads using sex and/or nudity

Question 26

Critics of advertising aimed at children use all of the following arguments to explain why it is wrong EXCEPT:

A) preschool children cannot discriminate between commercials and television programs
B) children do not perceive the selling or persuasive intent of commercials
C) children lack an understanding of how advertising works and thus cannot effectively use cognitive defences against it
D) advertising is a part of life, and children must learn to deal with it as part of the consumer socialization process

Question 27

Critics of advertising claim that it can have a(n) effect on consumer values by encouraging , which is a preoccupation with material things rather than
Intellectual or spiritual concerns.

A) negative; cocooning
B) detrimental; stereotyping
C) positive; corporeality
D) adverse; materialism

Question 28

For which of the following products might one argue that advertising has created needs rather than responded to them?

A) canned soup
B) calculators
C) designer jeans
D) automobiles

Question 29

Each of the following statements describes advertising that can be perceived as irritating or distasteful EXCEPT:

A) A study of prime time commercials found that consumers have become used to ads for personal care products, and they seldom perceive them as irritating or distasteful any more.
B) Ads using sexual appeals or nudity offend many consumers.
C) Consumers tend to dislike ads for products they don't use or brands they don't buy.
D) Consumers can be offended by the mere fact that certain products such as contraceptives are even advertised.

Question 30

Acquiring the skills needed to function in the marketplace is called the ________ process.

A) consumer socialization
B) consumer education
C) needs-focus
D) caveat emptor

Question 31

By creating needs rather than merely fulfilling them, by surrounding consumers with images of the good life, and by showing products as symbols of status and success, advertising can create:

A) consumer socialization
B) ethnocentricity
C) materialism
D) informative ads

Question 32

is advertising which praise the item to be sold with subjective opinions, superlatives, or exaggerations, stating no specific facts.

A) Puffery
B) A false claim
C) Misleading advertising
D) Embellishment

Question 33

Which of the following describes the use of sexual appeals in advertising?

A) Sexual appeals are never criticized because they are demeaning to men.
B) Sexual appeals are often criticized because they are not even relevant or appropriate for the product being advertised.
C) Sexual appeals are less often criticized for containing nudity or using suggestive dialogue as consumers become more used to these elements in movies and video games.
D) Networks have the right to scrutinize commercials carefully when it comes to sexually oriented advertising since they are similarly diligent with their programs.

Question 34

According to those who believe that advertising does NOT have an adverse effect on consumer values, advertising:

A) is solely accountable for the increase in materialism due to its nature and power
B) is merely a reflection of society's tastes and values
C) cannot create needs but only exploit existing ones
D) is a major determinant of society's taste and values

Question 35

Many advertising experts argue that what underlies the increased use of shock appeal is:

A) it is a new type of appeal that consumers tend to react to.
B) the pressure on marketers and their agencies to do whatever it takes to get their ads noticed.
C) that sexual appeal is having less of an effect on audiences.
D) actually, the reduction in clutter has made shock appeal less necessary.

Question 36

The consumer socialization process:

A) refers to how consumers satisfy their need to belong
B) explains how marketers engage in relationship marketing
C) explains why consumers will never completely abandon department store shopping for Internet shopping
D) is the acquiring of skills needed to function in the marketplace

Question 37

Young children may be especially vulnerable to advertising for all of the following reasons EXCEPT:

A) they cannot distinguish between reality and fantasy
B) their parents do not always perceive the selling intent of commercials
C) they lack the experience and knowledge required to understand and evaluate persuasive messages
D) they often have trouble differentiating between commercials and programs

Question 38

Which of the following is NOT a social criticism of advertising?

A) Advertising makes consumers buy things they don't need.
B) Advertising increases product costs and reduces competition.
C) Advertising is controls the media.
D) Advertising perpetuates stereotypes.

Question 39

Which of the following does NOT relate to the use of fear appeals?

A) an ad depicting a radio about to commit suicide on the edge of a bathtub
B) a series of ads showing the gory consequences of poor safety regulations at work
C) an ad for a luxury power boat with a gorgeous female model in a low-cut gown draped over the front of the boat
D) an ad exploiting the fear of social rejection for having bad breath

Question 40

Defenders of advertising take issue with the argument that it should be limited to dealing with basic needs. One of their reasons is:

A) Consumers are free to choose the degree to which they attempt to satisfy their desires.
B) Wise advertisers associate their products and services with lower-level needs like safety and food.
C) In our society, most higher-level needs are already satisfied for most people.
D) It is natural to move from higher-order needs to basic ones.

Question 41

Many economists argue that advertising can have a detrimental effect on competition by:

A) allowing unfair comparative advertising
B) minimizing the importance of pricing and distribution strategy
C) creating barriers to entry that results in less competition and higher prices
D) lessening the importance of good budgeting strategies

Question 42

A situation where a company creates conditions that makes it difficult for other firms to enter a market is known as:

A) economies of scale
B) market dominance
C) a barrier to entry
D) a market blockade

Question 43

From an economic perspective, advertising might lower the cost of a product by:

A) making it possible for firms to realize economies of scale through expansion of sales volume
B) creating barriers to entry for less efficient firms
C) allowing firms to advertise at high levels along with competitors
D) moving consumers to the consumer socialization stage of the buying process

Question 44

What is the traditional defense for advertising's role in our economic system?

A) Advertising increases competition and prevents monopolies.
B) Advertising stimulates new product development.
C) Advertising provides useful information for buying decisions.
D) Advertising leads to an increased standard of living.

Question 45

Which of the following statements describing how advertising portrays women is NOT the case?

A) While sexism and stereotyping of women still exists, advertising's portrayal of women has improved in recent years.
B) Many advertisers depict women in a diversity of roles since their place in society has changed in recent years.
C) Advertising is often criticized for portraying women in strong leadership roles.
D) Stereotypical portrayals of women show them as lacking intelligence and credibility.

Question 46

Recent ads showing men as dumb, goofy, or inept in the kitchen or around their children have been criticized under the Advertising Standards Council's clause regarding:

A) price claims
B) accuracy and clarity
C) sexual exploitation
D) unacceptable depictions and portrayals

Question 47

The belief that advertising equals reflects traditional economic thinking that views advertising as a way to change consumers' tastes, lower their sensitivity to price, and build brand loyalty among buyers of the advertised brand.

A) materialism
B) economies of scale
C) competitive advantage
D) market power

Question 48

Which of the following is an argument that supports the charge that advertisers can and do control the media?

A) There is no such argument; it is in the best self-interest of the media not to be influenced or controlled by the advertiser.
B) Many media have a broad base of advertiser support and can afford to lose advertisers attempting to exert control over them.
C) The media are very dependent on advertising as the source of their income.
D) Advertisers need the media more than the media needs any individual advertisers.

Question 49

Which of the following media would be most vulnerable to influence and pressure from advertisers on the type of stories the medium covers?

A) a major television network such as CBC
B) a major magazine such as Time or Maclean's
C) a major newspaper such as The Globe and Mail
D) a growing newspaper or magazine which receives a high amount of advertising from a particular industry

Question 50

Which of the following statements can be used to refute the argument that advertising reduces the number of choices available to consumers?

A) Heavily advertised brands dominate the market in certain product categories such as soft drinks, beer, and cereal.
B) Advertising can be used to create and maintain brand loyalty for dominant brands.
C) When a successful new product is introduced, competitors quickly follow and use advertising to inform consumers about their brand.
D) Dominant brands can afford to spend more on advertising and that makes it difficult for smaller brands to compete against them.

Question 51

Using economic censorship, applying pressure to limit the coverage of a controversial story that might reflect negatively on a company and trying to control the editorial content of magazines are all ways that:

A) media controls content on television.
B) advertisers exert influence on the media.
C) consumer advocates fight for the rights of the masses.
D) media manipulates advertisers.

Question 52

Defenders of advertising that argue that advertising is NOT a barrier to market entry contend that:

A) there are economies of scale in advertising
B) large volumes of advertising are necessary to compete in many industries
C) there is no relationship between intensity of advertising and market share
D) advertising is only one factor amongst many that contribute to the success of a product

Question 53

For many years, Hershey's spent very little money on advertising, yet its chocolate bar was a successful brand. This success can be interpreted as evidence that:

A) luck plays a major role in the success of a product
B) advertising is really not needed for a brand to be successful
C) product quality and image are important determinants of success
D) advertising increases product costs and prices

Question 54

Procter & Gamble spends millions of dollars a year on advertising for its various consumer products and can make large media purchases at rates lower than its smaller competitors. This is an example of how a large advertiser can achieve a competitive
Advantage based on:

A) discrimination
B) market aggrandizement
C) differentiation
D) economies of scale

Question 55

The belief that advertising equals sees advertising as providing consumers with useful information, increasing their price sensitivity, and increasing competition in the market.

A) competitive advantage
B) information
C) market power
D) materialism

Question 56

A recent study suggests that minorities in Canadian advertising are .

A) not represented at all
B) very overrepresented
C) under-represented
D) reflecting the Canadian population

Question 57

Economists argue that advertising can have a negative effect on consumer choice by:

A) reducing the opportunities for new products to be introduced
B) creating brand monopolies
C) adding to the cost of products and discouraging competition and market entry
D) using market aggregation

Question 58

Critics of advertising argue that:

A) advertising makes consumers purchase products and services for irrational reasons
B) advertising makes markets more competitive, which in turns requires more advertising and more price competition
C) monies spent on advertising is an expense that must be covered and is generally passed on to the consumer
D) consumers are only willing to purchase heavily advertised brands and thus will end up paying more for them

Question 59

Stereotypical portrayals of adult women in North American television and print advertising emphasize their:

A) power
B) activism and autonomy
C) ability to achieve under any circumstances
D) passivity and deference