Deck 13: Consumer Stakeholders: Information Issues

Question 1

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.

Answer 1

False

Question 2

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

Answer 2

False

Question 3

A company's desire to portray its product in the most flattering light can lead to misinfomration.

Answer 3

True

Question 4

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.

Question 5

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.

Question 6

Comparative advertising always affects advertising positively.

Question 7

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

Question 8

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

Question 9

Tobacco companies no longer advertise tobacco products in a way to appeal to children.

Question 10

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

Question 11

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

Question 12

Most consumers today understand that advertising attempts to persuade them.

Question 13

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

Question 14

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

Question 15

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

Question 16

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

Question 17

A full warranty must contain certain features, including repair within a reasonable period of time at no charge

Question 18

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

Question 19

Ad creep has been expanding.

Question 20

As the economy struggles to come out of the recession, consumers have become more cautious and selective about spending.

Question 21

Issues related to product information include all of the following except

A) advertising.
B) warranties.
C) labeling.
D) website design.

Question 22

The power held by consumers comes from

A) umbrella organizations.
B) trade associations.
C) company lobbying.
D) grassroots involvement.

Question 23

The ability of an organization to effectively identify, acquire, foster, and retain loyal profitable customers is

A) customer service.
B) effective marketing.
C) customer relationship management.
D) ethical marketing.

Question 24

Which of the following is not an activity of the CFPB?

A) Taking consumer complaints
B) Researching consumer behavior
C) Promoting political education
D) Restricting unfair, deceptive, or abusive acts or practices

Question 25

A consumer's right to choose refers to

A) his right to have an inventory of more than one to choose from.
B) her right to decide what store to buy from.
C) his right to eliminate products that do not meet his needs.
D) the assurance that competition is working effectively.

Question 26

Which of the following is not one of the rights in the consumer's Magna Carta?

A) right to safety
B) right to be informed
C) right to be protected
D) right to choose

Question 27

Which of the following is not a commonly recognized benefit of advertising?

A) It stimulates competition.
B) It provides information useful in comparison shopping.
C) It provides competitors with information.
D) It lowers the price of goods and services.

Question 28

The social movement that seeks to augment the rights and powers of buyers in relation to sellers is

A) caveat emptor.
B) buyer beware.
C) consumerism.
D) purchaser power.

Question 29

The consumer movement is still absolutely essential for achieving a fair and just marketplace for all consumers.

Question 30

Information that provides potential purchasers with enough information to make the best choice among the options available is

A) adequate.
B) ambivalent.
C) minimal.
D) realistic.

Question 31

Common consumer complaints include all of the following except

A) poor quality of products.
B) lack of consumer credit.
C) high prices.
D) misleading packaging or labeling.

Question 32

Advertising abuses include all of the following types except

A) ambiguity.
B) concealed facts.
C) psychological appeals.
D) cynical depictions.

Question 33

Ambiguous advertising that leaves it to the viewer to infer the message is the use of

A) concealed facts.
B) weasel words.
C) plot placements.
D) exaggerated claims.

Question 34

Information that is direct and straightforward, that is not deceptive or manipulative is

A) clear.
B) concise.
C) convincing.
D) creative.

Question 35

Information that communicates truths, and avoids exaggeration and innuendo is

A) adequate.
B) accurate.
C) ascetic.
D) antithetical.

Question 36

The right to be heard was listed as part of the consumer's Magna Carta because

A) consumers should have a say in a store's hours of operations.
B) many consumers felt that they could not effectively communicate their desires and grievances to businesses.
C) everyone wants to feel that others listen to them.
D) because business has refused to listen to customers.

Question 37

Consumers are readily pursuing green products.

Question 38

The father of the consumer movement is

A) Ralph Nader.
B) Dan Murtaugh.
C) Michael Moore.
D) Richard Nixon.

Question 39

The two major classifications of issues in the business/consumer relationship are

A) cost and safety.
B) product information and the product itself.
C) warranties and advertising.
D) customer service and product safety.

Question 40

Obesity researchers say they have data proving that the most sugary, calorie-laden breakfast cereals are marked to children most aggressively.

Question 41

Puffery is another way of saying that a statement is an exaggeration that uses

A) general superlatives.
B) ambiguous praise.
C) vague commendations.
D) special terminology.

Question 42

Use of plot placements involve

A) awards given for extraordinarily poor advertisements.
B) advertising ideas taken from the storylines of books or movies.
C) placement of products part of the storyline of a television show.
D) ideas for new products taken from books.

Question 43

Words that are inherently vague, without being misleading are referred to as

A) weasel words.
B) mildly deceptive.
C) perceptively ambiguous.
D) intentionally ambivalent.

Question 44

The most recent trend in sex-appeal advertising campaigns is:

A) to target the Christian right.
B) to target feminists.
C) to target sex workers.
D) to target younger and younger girls.

Question 45

Advertising that is designed to persuade on the basis of human emotions and emotional needs rather than reason relies on

A) puffery.
B) concealed facts.
C) ambiguous wording.
D) psychological appeals.

Question 46

Which of the following is not a problem associated with psychological appeals?

A) Products seldom deliver.
B) Stir emotions and manipulate consumers.
C) Less memorable than functions or features.
D) Take advantage of vulnerability.

Question 47

The Children's Television Act was passed to

A) prevent violent shows from being broadcast during morning hours.
B) prohibit the airing of commercials about products or characters during a show about those products or characters.
C) regulate the plotlines of children's shows.
D) limit the number of hours children could watch television.

Question 48

Advertising claims that cannot be substantiated by evidence are termed

A) misleading.
B) outlandish.
C) understatements.
D) exaggerated claims.

Question 49

Age compression is the practice of

A) marketing to an older audience.
B) airing commercials about products during children's shows about those products.
C) underage consumers responding to alcoholic ads.
D) targeting younger children when advertising products meant for older teenagers.

Question 50

The practice of directly contrasting a firm's product with the product of a competitor is called

A) comparative advertising.
B) puffery.
C) the taste test approach.
D) denigration.

Question 51

The basic activity of CARU is

A) nominating exceptional children's advertising for national awards.
B) to develop guidelines for effective advertising to children.
C) to review and evaluate child-directed advertising in all media.
D) monitor new developments in ads directed toward children.

Question 52

CARU was created by:

A) Congress.
B) the Manufacturer's Self-Advertising Regulation Association.
C) the Children's Television Network.
D) the Council of Better Business Bureaus.

Question 53

The industry under the greatest attack for its marketing and advertising practices is

A) pharmaceuticals.
B) liquor.
C) automobiles.
D) cigarettes.

Question 54

An implied warranty is

A) available for all new and used products.
B) an unspoken promise that there is nothing significantly wrong with the product.
C) limited to one year.
D) states exactly what is covered and what is not.

Question 55

The fact that advertising can increasingly be found everywhere is referred to as

A) the consumer culture.
B) expanding markets.
C) ad creep.
D) evolutionary marketing.

Question 56

Warranties were originally used by manufacturers to

A) help sell their products.
B) differentiate their products from those of competitors.
C) improve the image of their products.
D) limit the length of time they were responsible for products.

Question 57

A guarantee that is explicitly offered at the time of sale is called a(n)

A) implicit warranty.
B) express warranty.
C) traditional warranty.
D) extended warranty.

Question 58

All of the following are significant issues in cigarette advertising except

A) promotion of a dangerous product.
B) its aim at young audiences.
C) its aim at less-educated consumer markets.
D) its aim at less-developed countries.

Question 59

The traditional term that was used for advertising located in novel locations (now called ad creep) was

A) ambiguous advertising.
B) stealth marketing.
C) ambient advertising.
D) undercover promotion.

Question 60

The purpose of the Federal Packaging and Labeling Act of 1967 was to

A) prohibit deceptive labeling of certain consumer products.
B) require disclosure of certain important information.
C) limit both the type and amount of material used in packaging.
D) both prohibit deceptive labeling of certain consumer products and require disclosure of certain important information.

Question 61

Which of the following is a category of top consumer complaints?

A) Auto
B) Sales
C) Airline
D) Landlord/Tenant

Question 62

Provide a short answer to each of these questions. Be sure to fully explain your answer.
In your opinion, is the use of American flags and patriotic themes appropriate in advertising?

Question 63

Provide a short answer to each of these questions. Be sure to fully explain your answer.
Why is the role of business's social responsibility so central to the question of advertising?

Question 64

Provide a short answer to each of these questions. Be sure to fully explain your answer.
Explain how digital video recorders such as TiVo have contributed to ad creep.

Question 65

Provide a short answer to each of these questions. Be sure to fully explain your answer.
Why is advertising to children particularly troubling to ethicists?

Question 66

Neuromarketers have concluded that the most effective sounds in terms of psychological appeals include all the following except

A) babies giggling
B) packages being opened
C) vibrating cell phones
D) soda being popped and poured

Question 67

All of the following are "green watchdogs" groups seeking to monitor green advertising and certify green products except

A) Green-e
B) Forest Stewardship Council
C) Energy Star
D) EcoNogo

Question 68

The Credit Card Act of 2009:

A) has reduced the cost of credit cards.
B) has been mostly beneficial to consumers.
C) has provided universal opportunity for rate increases.
D) has provided availability of cards to young people.

Question 69

Plot placement is a response to

A) the TiVo effect.
B) consumer reports.
C) age compression.
D) self-regulatory guidelines.

Question 70

The Warranty Act

A) sets standards for what must be contained in a warranty and ease with which consumers must be able to understand it.
B) says that any unconditional assurance must be promoted as a full warranty.
C) says that full warranties do not have to include repair.
D) says that shipping charges do not have to be included in a full warranty.

Question 71

The Federal Packaging and Labeling Act of 1967 is administered by the

A) Federal Trade Commission.
B) Consumer Products Council.
C) Interstate Commerce Commission.
D) Federal Drug Administration.

Question 72

Provide a short answer to each of these questions. Be sure to fully explain your answer.
What is the basic reason for the ethical issues surrounding product information?

Question 73

Provide a short answer to each of these questions. Be sure to fully explain your answer.
Young children seldom have any money of their own to spend, nor can they get to the store to buy things. Why, then, are marketers so anxious to advertise to children?

Question 74

"Functional foods" are all the following except

A) yogurts that claim to ease constipation
B) butter substitutes that reduce your cholesterol
C) Tomato extracts that keep your skill young and ward off cancer
D) foods that claim to negatively affect your health functioning

Question 75

The Federal Trade Commission (FTC)

A) achieves free and fair completion in the economy.
B) protects misleading practices.
C) issues trade regulation rules.
D) Monitors competitive practices.

Question 76

The federal government's major body for ensuring that business lives up to its responsibilities is the

A) Interstate Commerce Commission.
B) Federal Communications Commission.
C) Federal Trade Commission.
D) Consumer Protection Agency.

Question 77

Provide a short answer to each of these questions. Be sure to fully explain your answer.
Describe the main issues related to using psychological appeals in advertising.

Question 78

The Consumer Financial Protection Bureau:

A) enforces consumer financial protection laws.
B) takes consumer complaints.
C) promotes financial education.
D) The CFPB does all of these things.

Question 79

Which of the following is not a law that addresses information disclosure issues?

A) Equal Credit Opportunity Act
B) Credit Collection Limitation Act
C) Truth-in-Lending Act
D) Fair Credit Reporting Act

Question 80

Provide a short answer to each of these questions. Be sure to fully explain your answer.
Describe the ways in which the Internet has facilitated the consumer movement.