Question 1

Advertising Standards Canada is the not-for-profit industry body that aims to maintain community confidence in advertising by encouraging the integrity of advertising through industry self-regulation.

Accepted Answer

Advertising Standards Canada is indeed a not-for-profit industry body that promotes the integrity of advertising through self-regulation.

Question 2

When an advertiser presents facts so as to create false beliefs in consumers, ethical questions are likely to be raised.

Accepted Answer

When advertisers present false or misleading information to consumers, it raises ethical questions about the intent and honesty of the advertising.

Question 3

Supporters of advertising contend that it is an efficient way to inform consumers of the wide range of available products and services in our economy.

Accepted Answer

False

Question 4

Customer satisfaction is a central goal of some firms in some industries, but can be peripheral for others in the long run.

Accepted Answer

The answer of Customer satisfaction is a central goal of...

Question 5

During the 1980s, consumer groups have made significant unparalleled advances in many areas of consumer interest, including auto safety and food additives.

Accepted Answer

The answer of During the 1980s, consumer groups have made...

Question 6

Some advertisers have agreed to follow self-regulatory guidelines when addressing concerns regarding advertising to children.

Accepted Answer

This statement is true. Some advertisers have agreed to follow self-regulatory guidelines when addressing concerns regarding advertising to children.

Question 7

Cases of unfair or deceptive advertising are handled through such government regulatory bodies as the Competition Bureau.

Accepted Answer

The Competition Bureau in Canada is responsible for enforcing laws related to unfair and deceptive advertising practices. They investigate and take action against companies that engage in such practices.

Question 8

As long as an advertiser does not intend to deceive customers, there is not likely to be any legal or ethical responsibility associated with communicating questionable claims to customers through advertising.

Accepted Answer

Advertisers have a legal and ethical responsibility to ensure that their advertising is truthful, not misleading, and substantiated by evidence. Even if the advertiser did not intend to deceive customers, if their advertising is found to be deceptive or misleading, they can face legal and financial repercussions, as well as damage to their reputation.

Question 9

The effect Ralph Nader had on the North American consumer movement can be characterized as a mediating force within a relatively short-lived period of consumerism and socially oriented legislation.

Accepted Answer

Ralph Nader was a pioneering and influential figure in the North American consumer movement, advocating for consumer rights and safety standards over a long period, significantly beyond a "short-lived" phase. His work led to lasting changes in product safety, environmental protection, and consumer rights legislation.

Question 10

Consumerism is a social movement seeking to augment the rights and powers of sellers in relation to buyers.

Accepted Answer

Consumerism is actually a social movement seeking to augment the rights and powers of buyers in relation to sellers. It aims to empower consumers by protecting their interests against unfair business practices and promoting consumer awareness and education.

Question 11

The use of sex as an advertising theme is a major ethical issue, especially for some women's groups, because such advertising can be perceived as degrading and dehumanizing to women.

Accepted Answer

The statement is true, as the use of sex in advertising has been criticized by many women's groups as it can perpetuate stereotypes and objectify women.

Question 12

The Competition Bureau is responsible for maintaining free and fair competition and for protecting consumers from unfair or misleading business practices.

Accepted Answer

The statement accurately reflects the responsibilities of the Competition Bureau.

Question 13

Consumer orientation is at the heart of the current marketing concept.

Accepted Answer

This statement is true. The marketing concept revolves around understanding and satisfying the needs and wants of the consumers, which is known as consumer orientation.

Question 14

Both the Federal and the Provincial governments have responsibilities in dealing with marketplace issues.

Accepted Answer

Both the Federal and the Provincial governments have roles and responsibilities in regulating marketplace issues, such as consumer protection, fair competition, and advertising standards. The Federal government has jurisdiction over certain industries and sectors, such as banking, telecommunications, and interprovincial trade, while the Provincial governments have jurisdiction over other areas, such as consumer contracts, licensing and registration, and local business practices. Both levels of government work together to ensure that the marketplace operates in a fair and efficient manner for businesses and consumers alike.

Question 15

One of the aims of the Canadian Cope of Advertising Standards is to serve as a guide to those creating commercial messages for children.

Accepted Answer

The Canadian Code of Advertising Standards does have an aim to provide guidance for creating commercial messages targeted towards children.

Question 16

Consumer stakeholders as a group have substantially common interests and, therefore, can be considered to have similar goals, expectations, and strengths.

Accepted Answer

Consumer stakeholders, while they share the common interest of purchasing products or services, have diverse backgrounds, preferences, and expectations, making their goals, expectations, and strengths varied rather than similar.

Question 17

The major problem with the use of psychological appeals in advertising is that these tend to confuse consumers to the extent that they pay far more for some goods and services than they otherwise would.

Accepted Answer

The major problem with the use of psychological appeals in advertising is not that they confuse consumers, but rather that they can manipulate emotions and desires, potentially leading to impulsive or unnecessary purchases. However, this does not inherently mean consumers will pay far more than they otherwise would, as pricing strategies are influenced by various factors beyond advertising appeals.

Question 18

Self-regulation can be considered synonymous with market regulation and is not influenced by government regulation.

Accepted Answer

Self-regulation and market regulation refer to different types of regulation. Self-regulation refers to industries or businesses creating their own rules and standards for ethical behavior, while market regulation refers to the broader oversight of market activities, which can involve government intervention. Self-regulation can be influenced by external factors such as public opinion, consumer demand, and government pressure, but it is not the same as government regulation.

Question 19

The "consumer's Magna Carta" consists of four basic rights spelled out by President John F. Kennedy.

Accepted Answer

President John F. Kennedy outlined the "consumer's Magna Carta" in 1962, introducing four basic consumer rights: the right to safety, the right to be informed, the right to choose, and the right to be heard.

Question 20

Over the years the government has given the Competition Bureau, enforcement responsibility in a variety of consumer-related fields.

Accepted Answer

The Competition Bureau has been given enforcement responsibility in various consumer-related fields such as false or misleading advertising, price discrimination, and deceptive marketing practices.

Quiz 11: Consumer Stakeholders: Information Issues and Responses