Question 1

A government agency in the United Kingdom reprimanded Safeway,a UK-based supermarket chain,because it distributed a leaflet titled "More reasons to shop at Morrisons." (Morrisons is one of Safeway's primary competitors in the UK).In the leaflet,Safeway depicted two shopping receipts,one for Safeway and one for Morrisons.The Safeway receipt claimed goods purchased at Safeway were much cheaper than the same goods purchased at Morrisons.Morrisons said that the goods on the imaginary receipt were not typical purchases and that the reason they were cheaper on the Safeway receipt was that the goods were on sale in the Safeway store.The FTC would have most likely found Safeway guilty of

Accepted Answer

The FTC (Federal Trade Commission) in the US prohibits companies from engaging in deceptive advertising practices, such as making false or misleading statements about competitors' products or prices. In this case, Safeway's leaflet comparing its prices with Morrisons' prices could be seen as deceptive advertising since the comparison was based on a sale item rather than a typical purchase.

Question 2

The Federal Trade Commission (FTC)regulates the marketplace by

Accepted Answer

The FTC's primary responsibility is to eliminate practices that are deceptive or unfair in the marketplace, which helps protect consumers and maintain a fair and competitive economy. The other options are not responsibilities of the FTC.

Question 3

Nike's Air Jordan XX3,the 23^rd edition of the series of shoes endorsed by retired basketball star Michael Jordan,differs from its predecessors because it is the first basketball shoe shaped by what Nike calls "Nike Considered," an approach to design that favors environmentally preferable materials,reduces toxic chemicals,and curbs waste.By adopting such environmentally supportive standards to make its products,Nike is

Accepted Answer

The passage states that by adopting environmentally supportive standards to make its products, Nike is behaving in a socially responsible fashion. This suggests that Nike is making a conscious effort to reduce its impact on the environment and is taking steps to promote sustainability.

Question 4

Which of the following is a method advertisers use to show their social responsibility?

Accepted Answer

Advertisers show social responsibility by providing pro bono work to nonprofit groups, which involves offering their services for free to support charitable causes.

Question 5

_____ advertising occurs when a consumer is "unjustifiably injured" or there is a "violation of public policy."

Accepted Answer

Unfair advertising is defined as an advertisement that causes unjustified injury, violates public policy or is deceptive. While all the options represent different types of advertising, only unfair advertising fits the criteria of causing harm or violating public policy. Deceptive advertising refers specifically to false or misleading advertising, corrective advertising is designed to remedy previous deceptive advertising, pro bono advertising is advertising done for free or for a charitable cause, and comparative advertising is when a company compares their product directly to a competitor's.

Question 6

According to the owner of NPC & Associates,Maryland's largest African American-owned ad agency,"If you were to come from another planet and watch American television,you would think that all black people did was play basketball and hang out on street corners and do rap music." The speaker is most likely accusing advertising of

Accepted Answer

The statement made by the owner of NPC & Associates suggests that advertising is perpetuating stereotypes of Black people as only playing basketball, hanging out on street corners, and doing rap music. This implies that advertising is not accurately representing the diversity and complexity of Black people in America.

Question 7

Verizon,a provider of cell phone service,frequently runs TV ads that feature a series of maps.One map shows how much of the country is covered by Verizon's service.The other maps show how much of the country is covered by Verizon's major competitors.These commercials are an example of

Accepted Answer

The TV ads that compare Verizon's coverage with its major competitors fall under the category of comparative advertising, where companies show a direct comparison with their competitors to highlight their product's superiority.

Question 8

The FTC defines _____ as any ad that contains a misrepresentation,omission,or other practice that can mislead a significant number of reasonable consumers to their detriment.

Accepted Answer

The question clearly asks for the definition of an advertising practice that can mislead reasonable consumers. The only choice that fits this definition is deceptive advertising. Choices A), B) and E) are not related to the definition given in the question, and choice C) is too broad and does not specifically refer to advertising practices that can mislead consumers.

Question 9

Ever since the Napoleonic Wars,the British have used the derogatory term frogs to refer to the French.When the London-based Institute Français advertised French-language courses at all levels from beginners to advanced students,it pictured the development of a frog in stages from egg through tadpole to full maturity.This would be an example of

Accepted Answer

The image of a frog being used in an advertisement promoting French language courses perpetuates the stereotype of the French as "frogs" and reinforces the derogatory term.

Question 10

According to Wilson Bryan Key,subliminal advertising

Accepted Answer

Wilson Bryan Key believed that subliminal advertising relied on embedded messages that seduced consumers into making purchases. He argued that these messages were often sexual or based on unconscious desires, and could be used to create a need for previously unsought products. However, it is important to note that the effectiveness of subliminal advertising is a controversial topic, with some researchers questioning whether it has any real impact on consumer behavior.

Question 11

Olive oil is usually advertised using terms such as "pure olive oil" and "extra virgin," a phrase that denotes the highest grade of olive oil.However,studies have shown that olive oil is one of the most adulterated products on the market.Many of the oils sold in grocery stores are of lower quality than advertised or,even worse,are diluted with other products such as sunflower oil.Olive oil producers who claim to sell extra virgin,pure olive oil but really provide an impure product have engaged in

Accepted Answer

The producers who claim to sell extra virgin, pure olive oil but provide impure products are engaging in deceptive advertising as they are deceiving their customers by providing a product that is not what it claims to be.

Question 12

_____ means doing what the advertiser and the advertiser's peers believe is morally right in a given situation.

Accepted Answer

Ethical advertising is the practice of doing what is morally right in a given situation based on the beliefs of the advertiser and their peers. It involves considering the impact of advertising on various stakeholders, such as consumers, employees, and society as a whole, and making decisions that align with ethical principles and values.

Question 13

Which of the following statements about the social impact of advertising is true?

Accepted Answer

Studies have shown that while consumers may believe there is a potential for too much advertising, they still tolerate it as the price for free TV and an information-rich internet. The FCC has placed some restrictions on advertising in terms of content and timing, but there are currently no limits on overall ad clutter. The social impact of advertising is a matter of debate, but it cannot be dismissed as solely a consumer misperception. The impact may be decreasing in some ways, such as the decline of traditional media, but advertising continues to play a significant role in shaping societal values and behaviors.

Question 14

Socially responsible advertisers

Accepted Answer

Socially responsible advertisers consider the impact of their advertising on the welfare of people in general, which aligns with society's views on what is best. Their actions may go beyond what is required by the government or ethical societies, as their primary responsibility is not just to increase profits, but also to act in a way that benefits consumers and society as a whole. Open communication is important, but it is only one aspect of being socially responsible.

Question 15

With respect to offensiveness in advertising,Abercrombie & Fitch ads have frequently been criticized for using overly sexualized imagery.Experts would most likely agree that the ultimate regulator of such ads is the fact that

Accepted Answer

The marketplace, or the public's response to the advertising, ultimately determines whether it is successful or not. If the ads are found to be offensive or inappropriate, consumers may choose to not buy the product and the company may need to re-evaluate their advertising strategy. Universal laws do not completely control advertising, and moral standards are subjective and vary across industries. Trends and personal tastes are also subjective and cannot serve as objective metrics. While a company may lose money and shift their marketing strategies, it is the public's response that ultimately determines the success or failure of the advertising.

Question 16

How has the U.S.Supreme Court intervened in the rights of advertisers under the First Amendment?

Accepted Answer

The U.S. Supreme Court has offered significant protection for truthful commercial speech under the First Amendment. In cases like Virginia State Board of Pharmacy v. Virginia Citizens Consumer Council, Inc. and Central Hudson Gas & Electric Corp. v. Public Service Commission, the Court established that commercial speech is entitled to some protection and invalidated laws that restricted the right of advertisers to make truthful claims about their products or services. However, the Court also allows for some regulation of commercial speech if it serves a significant government interest and the regulation is not more extensive than necessary to serve that interest.

Question 17

Television commercials for Progressive Insurance often list Progressive's rates next to the rates of other major insurance companies.This is an example of _____ advertising.

Accepted Answer

The commercial is comparing Progressive's rates with other major insurance companies, making it a comparative advertising.

Question 18

Which of the following statements about consumer privacy issues is most likely true?

Accepted Answer

The Fair Information Practice Principles require Internet companies to clearly post their privacy policies, making choice B the most likely true statement. Choice A is false as consumers can use privacy tools and settings to limit the personal information gathered about them. Choice C is also false as disabling cookies can impact access to certain sites. Choice D is false as the Fair Information Practice Principles also require companies to allow consumers access to information collected about them. Choice E is false as opting in does not necessarily mean relinquishing control over personal information.

Question 19

To promote responsible children's advertising and to respond to public concerns,the Council of Better Business Bureaus established the

Accepted Answer

The Children's Advertising Review Unit (CARU) was established by the Council of Better Business Bureaus to promote responsible advertising to children and to address public concerns. It reviews and evaluates advertising directed towards children and works with companies to ensure that their advertising is truthful, accurate, and appropriate for children. The other options given in the question are not correct because they are either not actual entities, do not reflect the role of CARU, or are not established by the Council of Better Business Bureaus.

Question 20

A complaint was filed with the Federal Trade Commission (FTC)that accused the film industry of regularly advertising R-rated movies during television shows most popular with children.The FTC most likely investigated to see if the film industry was guilty of

Accepted Answer

The FTC most likely investigated to see if the film industry was guilty of unfair advertising since it is accused of regularly advertising R-rated movies during TV shows most popular with children, which might be considered unfair to children and their parents.

Quiz 2: The Environment of Advertising

The Federal Trade Commission (FTC) regulates the marketplace by