Question 1

List the key provisions of the Children's Online Privacy Protection Act (COPPA).

Accepted Answer

The answer of List the key provisions of the Children's...

Question 2

You just graduated from college and started a new job at a consumer packaged goods manufacturer. You will be involved with marketing activities aimed at children. Briefly describe the controversial marketing activities aimed at children that you should be aware of.

Accepted Answer

The answer of You just graduated from college and started...

Question 3

List the three guidelines of the new FTC Privacy Protection Framework.

Accepted Answer

The answer of List the three guidelines of the new...

Question 4

The Children's Advertising Review Unit (CARU) is part of the FTC's regulation of marketing practices aimed at children.

Accepted Answer

The Children's Advertising Review Unit (CARU) is part of the National Advertising Division of the Council of Better Business Bureaus.

Question 5

Advertising is frequently criticized as fostering overly materialistic, self-focused, and short-term values in children.

Accepted Answer

Many are concerned that the consistent pressure to buy and own things is producing negative values in children.

Question 6

Regulation of marketing activities aimed at adults focuses on marketing communications, product features, pricing practices, and privacy.

Accepted Answer

These regulations cover marketing communications, product features, pricing practices, and privacy.

Question 7

CARU guidelines that prohibit price minimizations such as "only $19.99" are related to concerns regarding advertising effects on health/safety/values.

Accepted Answer

This guideline is related to the information-processing skills of children.

Question 8

Research indicates that disclaimers such as "Part of a nutritious breakfast" or "Each sold separately" are fully understood even by children as young as 3 years old.

Accepted Answer

Some disclaimers are ineffective with preschool children because they have a difficult time understanding these phrases.

Question 9

Ads in such places as school buses, scoreboards, bulletin boards are classified by Consumers Union as in-school ads.

Accepted Answer

Marketers have a captive audience in children by using in-school ads.

Question 10

Piaget's stages of cognitive development indicate that children lack the ability to fully process and understand information, including marketing messages, until around 12 years of age.

Accepted Answer

This is the basis for most regulation of advertising aimed at children and according to critics, for some marketing programs that deliberately exploit children.

Question 11

Concern over the invasion of children's privacy prompted Congress to pass the Children's Internet Protection Act in October 1998.

Accepted Answer

Concern over the invasion of children's privacy prompted Congress to pass the Children's Online Privacy Protection Act.

Question 12

Gillette's advertising for the M3 Power razor that claimed that "gentle micropulses stimulate hair up and away from skin" was deemed to be literally false by the court hearing the case.

Accepted Answer

The FTC requires that an advertisement must be truthful and nondeceptive, and advertisers must have evidence to back up their claims.

Question 13

Perhaps the most controversial pricing area today is the use of reference prices.

Accepted Answer

The concern arises when the external reference price is one at which no or few sales actually occur.

Question 14

There are three major concerns focused on the information that marketers provide to consumers, generally in the form of advertisements: the accuracy of the information provided, the adequacy of the information provided, and the cumulative impact of marketing information on society's values.

Accepted Answer

The three major concerns are accuracy, adequacy, and cumulative impact on society's values.

Question 15

Even ads clearly not targeting children can have potentially harmful consequences for them.

Accepted Answer

Children watch prime-time television, which exposes them to ads not meant for them.

Question 16

Determining the exact meaning of a marketing message is a simple process.

Accepted Answer

Marketers must often go to considerable lengths to provide messages that the relevant audience will interpret correctly.

Question 17

Corrective advertising is advertising run by the government to cause consumers to unlearn inaccurate information they acquired as a result of a firm's earlier advertising.

Accepted Answer

Corrective advertising is run by a firm to correct the firm's earlier advertising.

Question 18

CARU guidelines allow for the use of price minimizations such as "only $19.99."

Accepted Answer

CARU prohibits price minimizations such as "only" and "just."

Question 19

Four of the basic principles that underlie the CARU's guidelines for advertising directed at children focus on the concerns over the impact of commercial messages on children's health and safety and on their values.

Accepted Answer

Advertisers should reach out to children in a positive way regarding their health, safety, and values.

Question 20

What are the issues regarding pricing practices, and which federal agency regulates pricing activities?

Accepted Answer

The answer of What are the issues regarding pricing practices,...

Quiz 20: Marketing Regulation and Consumer Behavior