Question 1

All claims made in an advertisement or marketing communication message must reflect the typical experience that a customer would expect to encounter from the use of the product.

Accepted Answer

All claims made in an advertisement or marketing communication message must reflect the typical experience that a customer would expect to encounter from the use of the product, unless the advertisement clearly and prominently states otherwise. The key is that it must clearly and prominently do so. It cannot be in small type.

Question 2

The FTC can receive a complaint about deceptive or misleading advertising from consumers, businesses, Congress, the media, or the FTC itself.

Accepted Answer

The FTC (Federal Trade Commission) can receive complaints from various sources, including consumers, businesses, Congress, the media, and even internally, to investigate deceptive or misleading advertising practices.

Question 3

Only the Court of Appeals has the power to levy civil penalties in cases where there is a violation in terms of deceptive or misleading marketing communications.

Accepted Answer

The Court of Appeals does have the power to levy civil penalties in cases where there is a violation in terms of deceptive or misleading marketing communications, as well as other courts utilized by the FTC.

Question 4

The various industry regulatory agencies, such as the NAD, CARU and NARB, have the authority to issue consent decrees as well as cease-and-desist orders, but cannot levy civil penalties.

Accepted Answer

The NAD, CARU and the NARB typically issue an equivalent to the FTC's consent decree. Neither body has legal authority and therefore cannot issue a cease-and-desist order.

Question 5

While charges and complaints against businesses are filed with the Better Business Bureau, it does investigate the legitimacy of any charge or complaint. They just keep a record that is open for anyone to review.

Accepted Answer

While charges and complaints against businesses are filed with the Better Business Bureau, it does investigate the legitimacy of any charge or complaint. They do keep a record of how many complaints and the general nature of the complaints.

Question 6

When complaints about advertising are received at the BBB, they are referred to the National Advertising Division (NAD) or the Children's Advertising Review Board (CARU) of the BBB.

Accepted Answer

When complaints about advertising are received at the BBB, they are referred to the National Advertising Division (NAD) or the Children's Advertising Review Unit (CARU) of the BBB for review and investigation of substantiation.

Question 7

To be successful with cause-related marketing, the firm must demonstrate a genuine support for the cause.

Accepted Answer

To be successful with cause-related marketing, the firm must demonstrate a genuine support for the cause otherwise customers will feel the firm is using the cause for personal gain.

Question 8

While consumers believe in environmentally safe products, they are not willing to purchase environmentally safe products unless the quality and price are at least equal to what they currently purchase.

Accepted Answer

Consumers often prioritize quality and price over environmental considerations, choosing eco-friendly products only if they match or exceed the standards of their usual purchases.

Question 9

Ethics are

Accepted Answer

Ethics are philosophical principles that guide individuals and organizations in determining what is right and wrong, serving as operational guidelines.

Question 10

Morals are

Accepted Answer

The answer of Morals are
...

Question 11

_____ help(s) us as individuals and organizations to establish boundaries regarding acceptable and unacceptable conduct.

Accepted Answer

Ethics help individuals and organizations establish boundaries regarding acceptable and unacceptable conduct by providing a framework of principles and values.

Question 12

Boycotting a particular brand because you believe the company exploits child labor and has its goods manufactured in a country that has a history of violating human rights is an example of

Accepted Answer

The answer of Boycotting a particular brand because you believe...

Question 13

Marketing has been criticized for causing people to buy more than they can afford. One contributory factor to this situation is the easy access consumers have to credit cards. The average household credit card balance is

Accepted Answer

The average household credit card balance is approximately $9,312, reflecting the ease of access to credit and the tendency for consumers to spend beyond their means.

Question 14

Overspending appears to be an epidemic, cultural change in our society caused by people seeking immediate gratification. This cultural change has created which of the following criticism of marketing?

Accepted Answer

Overspending appears to be an epidemic, cultural change in our society caused by people seeking immediate gratification. Some blame marketing for this phenomena saying that marketing causes people to buy more than they can afford.

Question 15

Sandra believes that one reason she owes over $12,000 on her credit cards is all of the advertising she sees on television for various products. This is an example of the ethical concern that marketing

Accepted Answer

Marketing can influence consumer behavior, leading individuals to make purchases beyond their financial means, as seen in Sandra's situation.

Question 16

Personal bankruptcy filings in the United States has grown by nearly _____ percent over the past 25 years.

Accepted Answer

Personal bankruptcy filings in the United States has grown by nearly 350 percent over the past 25 years, from 1.2 per 1,000 individuals to 54. per 1,000 individuals.

Question 17

Underlying the criticism that marketing overemphasizes materialism is the assumption that

Accepted Answer

The criticism that marketing overemphasizes materialism is based on the belief that materialism itself is inherently negative or wrong.

Question 18

The argument that marketing provides useful information that allows consumers to become better informed is a good counter argument to the criticism that marketing

Accepted Answer

The answer of The argument that marketing provides useful information...

Question 19

The argument that a company cannot reduce marketing expenditures unless all of its competitors also reduce theirs is a counterargument to the criticism that marketing

Accepted Answer

Reducing marketing expenditures could lead to a decrease in product prices, but if competitors do not also reduce their marketing, the company risks losing market share. Thus, the argument is a counter to the criticism that marketing increases prices.

Question 20

The argument that marketing is a significant contributor to the GDP is a counterargument to the criticism that marketing

Accepted Answer

Marketing is argued to contribute to GDP by stimulating economic activity, which can counter the criticism that it increases prices by highlighting its role in economic growth.

Quiz 3: Marketing Ethics, Regulations, and Social Responsibility