Deck 7: The Art of Seduction: the Ethics of Advertising, Marketing, and Sales

Question 1

What is conspicuous consumption, and why does Veblen believe people engage in it? According to Veblen, what social circumstances make it more likely for someone to consume conspicuously? Do you think he is correct? In your response, refer to an example of conspicuous consumption that you or someone you know has engaged in.

Answer 1

No Answer

Question 2

Are our consumer demands rational? Why or why not? How might one sort rational consumer demands from irrational ones?

Answer 2

No Answer

Question 3

How carefully should advertising be regulated, and why? Make a case for unregulated advertising (excluding, of course, outright deception in advertising). Now show some problems with your account.

Answer 3

No Answer

Question 4

According to Plato (in the voice of Socrates), what is the danger of believing bad arguments? Is he right or wrong? Defend your answer.

Question 5

Explain von Hayek's response to Galbraith. Which thinker is right, and why?

Question 6

Explain the concept of emulation in the context of manufactured needs. Offer several examples from your own life of emulation.

Question 7

Is it possible for an advertisement to control your actions? How might it do so? What would Savan say?

Question 8

Explain Goldman's justification of advertising in a market economy. Then offer three criticisms of his argument.

Question 9

One of the screenwriters for The Simpsons said that he used to amuse himself on the Los Angeles highways by counting as many lies as possible in advertisements. Using advertisements familiar to you, offer ten examples of Savan's distinction between "big lies" and "little lies."

Question 10

According to Veblen, in what circumstances can personal savings serve the same reputation-enhancing function as conspicuous consumption?

A) In no circumstances
B) In every circumstance
C) In small rural communities where people gossip
D) In societies where slavery is a common practice
E) Among transient workers in urban communities

Question 11

What do conspicuous leisure and conspicuous consumption have in common?

A) Both are wasteful.
B) Both are done to enhance reputation.
C) Both are public or semi-public.
D) a. and b.
E) a., b. and c.

Question 12

One of the two propositions offered here as extremely important to the current value system of the majority of economists is which of the following?

A) The notion that the consumer believes himself to be in charge of the purchase
B) The notion that advertising can "brainwash" using subliminal messaging
C) The proposition that the urgency of wants diminishes as more are satisfied
D) The theory of supply and demand
E) None of the above

Question 13

Galbraith makes advertising analogous to which mythical creatures?

A) Dragons
B) Demons
C) Fairies
D) Sirens
E) All of the above

Question 14

According to Galbraith, which notion still survives as the predominate view of modern economics?

A) The notion that the customer is always right
B) The notion that if the supply decreases, then the demand will increase proportionally
C) The notion that consumers buy in accordance with independently determined wants
D) The dependence effect
E) The independence effect

Question 15

The way wants depend on the process by which they are satisfied is called:

A) The contingency factor
B) The dependence effect
C) The social concern thesis
D) The independence mirage
E) None of the above

Question 16

Socrates told Plato that "no greater misfortune could happen to anyone than" what?

A) Being tricked by a bad argument
B) Leaving life unexamined
C) Dying without having considered philosophical questions
D) Disliking argument
E) Being taken in by the "merchants' lies"

Question 17

The "inherent tendency" of public services, according to Galbraith, will always be what?

A) To emulate private sector techniques and create social wants
B) To exploit the dependence effect
C) To become prioritized well below that of private production
D) To advertise their products using the same outlets that private companies take advantage of
E) All of the above

Question 18

Hayek agrees that the only innate __________ are food, shelter, and sex.

A) conflicting interests
B) wants
C) tendencies
D) affluences
E) goods

Question 19

Hayek attempts to point out the flaw in Galbraith's argument by applying it to what?

A) War
B) Credit card companies
C) The government
D) Politics
E) The arts

Question 20

Hayek and Galbraith agree that:

A) Some desires are created and some are innate.
B) Advertising creates desires in people.
C) Innate desires are important, but created desires are not.
D) Both (a) and (b)
E) All of (a), (b), and (c)

Question 21

Hayek's point about literature is:

A) People would not want it if it were not already produced.
B) People have an innate desire for art.
C) Literature is not the same as advertising.
D) People only value it for the sake of prestige.
E) The desire for literature and other arts is independently determined.

Question 22

Hayek's response to Galbraith's argument about the dependence effect is that:

A) Galbraith's view is overly capitalistic.
B) Galbraith is wrong in thinking that created desires are the most important.
C) Galbraith is wrong in thinking that created desires are never important.
D) Galbraith is wrong in thinking that any desires can be created in people.
E) Galbraith is wrong in thinking that any desires are innate.

Question 23

Veblen argues that the reason our society loves consumer goods is that they give us:

A) A sense of self
B) Systematic waste
C) Comfort
D) Prestige
E) None of the above

Question 24

Goldman mentions all of the following conditions of pure competition EXCEPT:

A) Competition within industries and among firms
B) Fluidity of labor
C) Perfect knowledge on the part of consumers
D) Producers' knowledge of consumer demand
E) Government's knowledge of fair competition among firms

Question 25

One of the "direct benefits" attributed to advertising is what?

A) A healthier free market
B) More competition
C) Better consumer knowledge concerning products
D) A greater openness among manufacturers about their products
E) Less competition among products

Question 26

Alan Goldman's opinion of advertising is that:

A) There is no place for it in an ideal capitalist economy.
B) It has both positive and negative effects.
C) It is inconsistent with the aims of the free market.
D) It is a waste of economic resources.
E) It can only be justified because it subsidizes the media.

Question 27

According to Goldman, the effect of advertising on the media is:

A) It enables radio, TV, magazines, and newspapers to survive.
B) It creates more sophisticated consumers who are more critical of the media.
C) It forces the media to avoid innovative, daring, or controversial content.
D) Both (a) and (b)
E) Both (a) and (c)

Question 28

Why does Goldman think that advertisers should be truthful?

A) Because advertising that is truthful creates trust and customer loyalty.
B) Because advertising is only justifiable as a source of information for consumers.
C) Because lying is morally wrong.
D) Because advertisers have freedom of speech.
E) Because it is wrong for advertisers to create desires in people.

Question 29

Savan thinks that we don't actually buy products, but that we buy:

A) The company that presents them
B) The country that presents them
C) The world that presents them
D) The metaphysical reality that presents them
E) The image of ourselves that we would have for ourselves

Question 30

What does Savan mean by "the sponsored life"?

A) Advertising pays for many things we value, like TV and magazines.
B) Advertising is absorbed deeply into our lives and experiences.
C) Advertisers are getting very skilled at holding our attention.
D) We see about 16,000 advertisements every day, on average.
E) Advertising encourages us to buy and consume more than we need.

Question 31

Why doesn't irony work as a defense against advertising?

A) Most people are not watching TV with an ironic attitude.
B) The advertisers can also take an ironic attitude and create "cool" ads.
C) Irony provides you with some distance from the techniques of advertising.
D) The excitement of advertisements is greater than the content warrants.
E) It is the job of ads to lie to us.

Question 32

What is the point of Savan's example of the Marlboro Man?

A) Products are marketed to men or women using stereotypes.
B) Good advertising can get us to buy things that are bad for us.
C) The image of a product doesn't have much to do with the actual product.
D) Cigarettes are an example of a "created desire."
E) Smokers like to think of themselves as outsiders or loners.

Question 33

Which of these is NOT one of Savan's suggestions for protecting yourself from advertising?

A) Notice when an ad tries to appeal to your sense of individuality or nonconformity.
B) Notice who is being flattered by an ad.
C) Don't assume that a brand's image says anything important about the product.
D) Limit your exposure by watching fewer hours of television.
E) Notice the "big lies" that ads tell, like "this car will attract women."

Question 34

Matt Cooper experienced what kind of pressure in his career in sales?

A) Pressure to make more money than other people
B) Pressure to work overtime even if he didn't want to
C) Pressure to lie if necessary to close a sale
D) Pressure to buy the company's products himself
E) Pressure to fit in with the company culture

Question 35

How do advertisers view women?

A) Women are inadequate without a particular product.
B) Women's worth is measured solely by their intelligence.
C) Women's worth is measured by how closely they approach the advertisers' ideal.
D) Both a and c
E) None of the above

Question 36

In the case study about energy drinks, what is the controversy?

A) The manufacturers claim they are low-calorie, but they really aren't.
B) The manufacturers claim they are caffeine-free, but they really aren't.
C) The manufacturers claim that they have many benefits, but they really just deliver caffeine.
D) The customers claim that energy drinks are overpriced.
E) The commonly used ingredient taurine may be dangerous.

Question 37

Restrictions on advertising arguably violate the right to free speech.

Question 38

According to Veblen, people are more likely to engage in conspicuous consumption in cities than in rural areas.

Question 39

According to Veblen, there has been a general trend away from conspicuous consumption and toward conspicuous leisure.

Question 40

Galbraith believes that the urgency of wants can still be used to defend the urgency of production.

Question 41

The notion of dependently determined wants is more prevalent today, according to Galbraith.

Question 42

Wants cannot be "created."

Question 43

Hayek agrees with Galbraith's general conclusion regarding the dependence effect.

Question 44

Hayek thinks that his love of Jane Austen novels is original to himself, not created.

Question 45

Hayek argues that created desires can still be important desires.

Question 46

Misology is the dislike of logic and argument.

Question 47

Deception in advertising is less common than we think.

Question 48

Goldman points out some positive effects of advertising, such as informing consumers about different products.

Question 49

Goldman thinks that one negative effect of advertising is that it creates brand disloyalty.

Question 50

Advertising subsidizes media such as TV, radio, and magazines.

Question 51

Veblen concludes that consumption is systematic waste.

Question 52

"Conspicuous consumption" of valuable goods, Veblen argues, is a way that persons might attempt to demonstrate that they enjoy a high reputation.

Question 53

One way Savan suggests to watch out for persuasive ads is to keep your distance from the TV when watching.

Question 54

Savan thinks that commercials simply sell our experiences back to us.

Question 55

Savan thinks that watching TV ads with an ironic, "outsider" perspective protects consumers from being manipulated.

Question 56

Building a relationship with a person is impossible if you are trying to sell to him or her.

Question 57

According to Veblen, a factor alien to the wastefulness of conspicuous leisure is _________.

Question 58

According to Veblen, the abolition of __________ can make a society one in which even the elite start to shun ostensibly wasteful leisure.

Question 59

Galbraith's main thesis is called the __________.

Question 60

Galbraith claims that the final problem of any productive society is what it __________.

Question 61

By "failing to exploit the opportunity to expand public production," claims Galbraith, "we are missing opportunities for __________."

Question 62

__________ argues that the dependence effect is a non sequitur.

Question 63

The __________ that Hayek charges Galbraith with is the non sequitur.

Question 64

Goldman comments that _____________ subsidizes the media.

Question 65

Von Hayek points out that when Galbraith's argument is turned toward __________, it becomes less defensible.

Question 66

Goldman raises concerns about ads that appeal to the ______________ instead of to the rational mind.

Question 67

According to Goldman, advertisers should be especially cautious when marketing to ___________.

Question 68

Savan argues that advertising has worked its way into our daily experiences to the point that we are all living a ______________ life.

Question 69

Savan suggests we watch out for two kinds of lies in advertisements: __________ and ___________.

Question 70

Brand _____________ is the problem that an advertiser faces when his or her product is very similar to the competition.

Question 71

An ad that praises the viewers for qualities they do not really possess is engaged in ______________.

Question 72

The PowerMaster marketing campaign was deemed __________ by the U.S. Surgeon General.

Question 73

Matt Cooper found out "the hard way" that selling in the dot-com culture meant constant __________ to customers.