Advertising & IMC: Principles and Practice, 11e (Moriarty et al.)
Chapter 18 Social Impact, Responsibility, and Ethics: Is It Right?
1) ________ results when an external message drives people to feel a need or want to buy a
product.
A) Demand creation
B) Direct marketing
C) Social marketing
D) Cause marketing
E) Mission marketing
2) The question of whether advertising creates social values or merely reflects them is known as
the ________.
A) social-versus-economic debate
B) competitive-versus-market power debate
C) personal-versus-corporate debate
D) personal-versus-social debate
E) shape-versus-mirror debate
3) A ________ is a representation of a cultural group that emphasizes a trait or group of traits
that may or may not communicate an accurate representation of the group.
A) norm
B) reference group
C) symbol
D) perception
E) stereotype
4) Which of the following states a message that is UNTRUE?
A) puffery
B) comparative advertising
C) image advertising
D) product demonstration
E) false advertising
5) Which term describes what happens when Western culture is imposed on others?
A) materialism
B) stereotyping
C) cultural imperialism
D) demand creation
E) marketing elitism
6) Some Asian and Middle Eastern countries are critical of what they see as America’s
materialism and disrespectful behavior toward elders and are worried that advertising will
encourage their young people to adopt these viewpoints. It is most accurate to say that these
countries are concerned about ________.
A) marketing ethics
B) deceptive advertising
C) stereotyping
D) social responsibility
E) marketing imperialism
7) Which term refers to advertising that praises the item to be sold with subjective opinions,
superlatives, or exaggerations, and states no specific facts?
A) puffery
B) manipulative advertising
C) deceptive advertising
D) comparative advertising
E) endorsement
8) Which of the following is TRUE regarding customs?
A) Customs can be stronger than laws.
B) Customs are easily identified and explained.
C) Customs are basically the same around the world.
D) Customs have little impact on the effectiveness of advertising.
E) Only natives of a culture can ever understand local customs.
9) Which of the following does NOT describe a claim that uses puffery?
A) a claim that is obviously exaggerated
B) a claim supported by a set of facts
C) a claim that is vague
D) a claim supported by subjective opinions
E) a claim that can be neither proven nor disproven
10) Which of the following provides regulations protecting consumers from misleading claims?
A) Master Settlement Agreement
B) American Association of Advertising Agencies
C) Institute for Advertising Ethics
D) Federal Trade Commission
E) Public Relations Society of America
11) Under U.S. law, businesses can seek damages from a competitor who misrepresents the
nature, characteristics, qualities, or geographic origin of the company’s product in ________.
A) puffery
B) mission advertising
C) demand creation
D) comparative advertising
E) claim advertising
12) According to U.S. law, which of the following is NOT an element a company/plaintiff is
required to prove to win a false advertising lawsuit about an ad containing a comparative claim?
A) False statements have been made about either product.
B) The ads actually deceived or had the tendency to deceive a substantial segment of the
audience.
C) The offending advertiser intended to damage the complaining company’s business.
D) The deception was “material” and likely to influence purchasing decisions.
E) Falsely advertised goods are sold in interstate commerce.
13) A(n) ________ is any advertising message that consumers believe reflects the opinions,
beliefs, or experiences of an individual, group, or institution.
A) endorsement
B) comparative ad
C) puffed ad
D) one-sided message
E) two-sided message
14) A company that pays bloggers to pose as customers and post customer reviews online is
using ________.
A) green marketing
B) cause marketing
C) shockvertising
D) flogging
E) networking
15) Which of the following prohibits consumers from taking cash from manufacturers, suppliers,
or their representatives for making recommendations, reviews, or endorsements, unless full
disclosure is provided?
A) Word of Mouth Marketing Association’s ethics code
B) Council of Better Business Bureaus
C) American Association of Advertising Agencies’ Creative Code
D) TARES Test of Ethical Advertising
E) Federal Trade Commission
16) Verbal or written words in an advertisement that indicate exceptions to the advertising claim
made are known as ________.
A) ethics
B) puffs
C) endorsements
D) testimonials
E) disclaimers
17) The main concern the FTC has when an advertiser makes substitutes for products during a
demonstration (such as using a mixture of glue and water instead of ice cream) is whether the
________.
A) substitution is necessary
B) demonstration uses puffery
C) advertiser indicates that substitutes are used in the demonstration
D) consumer knows substitutes are used in the demonstration
E) demonstration falsely upgrades the consumers’ perception of the advertised brand
18) Cigarette advertising on ________ has been banned since 1971.
A) radio only
B) television only
C) print media only
D) radio and television only
E) radio, television, and print media
19) Which of the following is NOT an element of the Master Settlement Agreement of 1998?
A) a ban on all in-store advertising located within 1,000 feet of a school
B) a ban on direct targeting of youth
C) restriction of the use of cartoon characters
D) $150 million provided to fund antismoking ads targeting children
E) restriction of product placements in entertainment media
20) Which of the following best explains why the amount of prescription drug advertising has
increased since 1997?
A) The American Medical Association approved the use of advertising to promote prescription
drugs.
B) The federal government loosened its controls on the production of prescription drugs.
C) Pharmaceutical companies realized that a pull strategy would be more effective than a push
strategy.
D) The federal government loosened its controls on pharmaceutical advertising.
E) Patents held by many pharmaceutical companies expired, resulting in price competition and
heavy advertising.
21) Which of the following refers to the ethically questionable practice of companies paying or
providing incentives for bloggers to post positive comments about products?
A) blogola
B) puffery
C) comparative advertising
D) commercial speech
E) substantiated claims
22) As a part of new health care reform efforts, the United States government now requires
health insurance companies to ________.
A) discontinue broadcast advertising
B) discontinue direct advertising
C) provide coverage for brand name medications only
D) provide coverage for generic medications only
E) spend at least 80% of the premiums they receive on medical care, not other costs such as
advertising
23) Some claim advertising has actively created a society that is overly concerned with personal
hygiene. Advertising has bombarded consumers with so many ads for products that remove our
body odors, make our teeth white, or make our hair shine that we have become obsessed with
outer appearances. Which side of the social debate on advertising do supporters of this statement
most likely take?
A) advertising mirrors social values
B) advertising mimics social values
C) advertising shapes social values
D) advertising is deceptive
E) advertising is offensive
24) In a focus group of women in their 50s, participants objected to health care ads showing
older women with arthritis in sedentary positions. They would prefer to see the women working
out in a gym. This is an example of ________.
A) marketing imperialism
B) cultural differences
C) deceptive advertising
D) ethnic stereotyping
E) age-related stereotyping
25) John works for an advertising agency whose client wants to reach Hispanic consumers living
in Florida and Texas. He decides that one ad execution is sufficient because he believes that all
Hispanics are the same. John is using a(n) ________ to make his decision.
A) heuristic
B) shortcut
C) unethical basis
D) stereotype
E) substantiation
26) Charley’s Fish Fry restaurant claims it has the “best seafood in town.” What type of claim
does the Federal Trade Commission consider this to be?
A) deceptive
B) comparative
C) puffery
D) endorsement
E) indirect
27) Bayer Aspirin claims that it relieves headache pain three times faster than does Tylenol.
What type of advertising is this?
A) comparative
B) testimonial
C) endorsement
D) indirect
E) substantiated
28) A class-action lawsuit was brought against McDonald’s charging that its food has contributed
to the nationwide obesity epidemic. The suit was eventually dismissed, but many critics continue
to point out the health dangers of typical “fast food” menu items. These critics are concerned that
the fast food industry has used ________.
A) high-pressure selling
B) deceptive promotions
C) deceptive pricing
D) deceptive packaging
E) harmful products
29) Although some doctors appreciate that pharmaceutical advertising has caused consumers to
become more active in managing their own health and more informed about their drug options,
other doctors feel pressured to write inappropriate prescriptions because their patients are
influenced by the drug ad claims. What is this called, when an external message, like an
advertisement, causes people to feel a need to buy and use a product?
A) demand creation
B) shockvertising
C) indirect advertising
D) endorsement advertising
E) puffery
30) ________ are the “shoulds” and “oughts” of behavior.
A) Missions
B) Ethics
C) Regulations
D) Customs
E) Traditions
31) ________ are frameworks for right actions and are primarily the domain of religion and
philosophy.
A) Missions
B) Ethics
C) Morals
D) Customs
E) Traditions
32) Personal judgment and moral reasoning rest on ________.
A) explicit laws governing practice
B) membership in a professional association
C) an understanding of the law
D) a sense of right and wrong
E) a code of standards
33) Many professions write a code of ________ to help guide practitioners toward ethical
behavior.
A) morals
B) ethics
C) laws
D) regulations
E) beliefs
34) Which of the following is designed to help marketers and advertising specialists create
transparent advertising in a fair, honest, and forthright manner?
A) FTC Improvement Act
B) Principles and Practices for Advertising Ethics
C) The Public Relations Society of America
D) National Advertising Review Board Rules
E) Better Business Bureau of Practices
35) Adbusters.org is an example of a(n) ________.
A) professional advertising association
B) anticonsumerist organization
C) regulatory government agency
D) public relations agency
E) advertising institute
36) In New York City, a series of advertisements on billboards and subway cars conveys the
image of soda into bottles of fat. Many of these images also include people trying to drink the
fatty contents of the bottle. The advertisements, sponsored by the NYC Health Department, ask
“Are you pouring on the pounds?” Looking at the images is unsettling for many viewers. This is
an example of ________.
A) shockvertising
B) false advertising
C) flogging
D) indirect advertising
E) corrective advertising
37) Which of the following organizations monitors direct-mail advertising materials such as
credit card offers?
A) U.S. Patent and Trademark Office
B) States’ Attorney Generals
C) U.S. Postal Service
D) Federal Communications Commission
E) Food and Drug Administration
38) Unfair methods of competition in commerce were declared unlawful by the ________.
A) 1906 Pure Food and Drug Act
B) 1914 Federal Trade Commission Act
C) 1938 Wheeler-Lea Amendment
D) 1946 Lanham Act
E) 1980 FTC Improvement Act
39) The FTC’s policy on ________relies on the likelihood that the advertisement is misleading,
the reasonability of the consumer’s interpretation, and the probability of material injury.
A) puffery
B) comparative advertising
C) competitive advertising
D) deceptive advertising
E) corrective advertising
40) Government oversight responsibility with respect to advertising includes ________.
A) professional discipline
B) self-regulation
C) laws and regulations
D) right to refuse
E) community group regulation
41) Which of the following gives the House of Representatives and the Senate joint veto power
over FTC regulations?
A) 1980 FTC Improvement Act
B) 1938 Wheeler-Lea Amendment
C) 1946 Lanham Act
D) 1906 Pure Food and Drug Act
E) 1975 Magnuson-Moss Warranty/FTC Improvement Act
42) The Supreme Court protects commercial speech that is ________.
A) untruthful
B) harmful to the public
C) deceptive
D) political
E) misleading
43) Which of the following prohibits unfair and deceptive acts and practices regardless of
whether competition is injured?
A) Lanham Act
B) Wheeler-Lea Amendment
C) National Advertising Review Council
D) Pure Food and Drug Act
E) Magnuson-Moss Warranty
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44) A brand, a corporate or store name, or a distinctive symbol that identifies the seller’s brand
and thus differentiates it from the products of other sellers is called a ________.
A) trademark
B) copyright
C) logo
D) patent
E) brand name
45) Which of the following is TRUE regarding a trademark?
A) It gives an organization the exclusive right to use or reproduce original work, such as an
advertisement or package design, for a period of time.
B) Controls for protection are provided by the Library of Congress.
C) The Department of Labor protects unique trademarks from infringement by competitors.
D) It identifies the seller’s brand and differentiates it from the brands of other sellers.
E) It must be registered with the FTC, which gives the organization exclusive use of the mark, as
long as the trademark is maintained as an identification for a specific product.
46) Which of the following protects unique trademarks from infringement by competitors?
A) Pure Food and Drug Act
B) Wheeler-Lea Amendment
C) Lanham Act
D) Federal Trade Commission Act
E) FTC Improvement Act
47) Which of the following describes a URL?
A) patent
B) trademark
C) internet domain name
D) logo
E) copyright
48) A(n) ________ gives an organization the exclusive right to use or reproduce original work,
such as an advertisement or package design, for a specified period.
A) trademark
B) URL
C) copyright
D) patent
E) brand name
49) Which of the following CANNOT be copyrighted?
A) advertisement
B) idea
C) package design
D) illustration
E) photograph
50) Which of the following gave the FTC the authority to provide consumers methods for
seeking redress or restitution for deceptive marketing practices?
A) Federal Trade Commission Act
B) Telemarketing and Consumer Fraud Act and Abuse Protection Act
C) Magnuson-Moss Warranty/FTC Improvement Act
D) Wheeler-Lea Amendment
E) 1980 Supreme Court ruling on Central Hudson Gas and Electric v. Public Service
Commission of New York
51) The most basic federal law that governs advertising is the ________ Amendment to the U.S.
Constitution.
A) First
B) Second
C) Third
D) Fourth
E) Fifth
52) Which Amendment to the U.S. Constitution states that Congress shall make no law
“abridging the freedom of speech or of the press”?
A) First
B) Second
C) Third
D) Fourth
E) Fifth
53) ________ speech promotes buying and/or selling products.
A) Political
B) Free
C) Unregulated
D) Commercial
E) Regulated
54) In which case did the Supreme Court establish a test that determines to what extent the
government can restrict advertising?
A) Valentine v. Chrestensen (1942)
B) Virginia State Board of Pharmacy v. Virginia Citizens Consumer Council (1976)
C) Central Hudson Gas & Electric Corporation v. Public Service Commission of New York
(1980)
D) Cincinnati v. Discovery Network (1993)
E) 44 Liquormart, Inc. v. Rhode Island (1995)
55) What is the primary agency governing marketing communications?
A) FCC
B) FTC
C) FDA
D) US Postal Service
E) US Patent and Trademark Office
56) Which federal agency oversees package labeling, ingredient listing, and advertising for food
and pharmaceuticals?
A) Federal Trade Commission
B) Food and Drug Administration
C) Federal Communications Commission
D) Bureau of Alcohol, Tobacco, and Firearms
E) US Patent and Trademark Office
57) Which federal agency was formed to protect the public interest in radio and television
broadcast communications?
A) Federal Trade Commission
B) Food and Drug Administration
C) Federal Communications Commission
D) Bureau of Alcohol, Tobacco, and Firearms
E) National Advertising Division
58) The Federal Communications Commission (FCC) can take action against ________.
A) the media
B) advertisers
C) advertising agencies
D) manufacturers
E) suppliers
59) Which of the following federal agencies has control over lotteries and mail fraud?
A) U.S. Postal Service
B) FCC
C) FDA
D) U.S. Patent and Trademark Office
E) Library of Congress
60) Which of the following does NOT have governmental authority concerning some form of
advertising regulation?
A) Bureau of Alcohol, Tobacco, and Firearms
B) Federal Communications Commission
C) U.S. Postal Service
D) National Advertising Division
E) Food and Drug Administration
61) Which of the following was NOT required by the Children’s Television Advertising Practice
Act of 1990?
A) a 10.5-minute-per-hour ceiling for commercials in children’s weekend television
programming
B) three hours of children’s educational shows aired by all TV stations each week
C) commercial breaks that are clearly distinguished from programming
D) prohibiting the use of children’s program characters to promote products in commercials
E) a 12-minute-per-hour limit for commercials in children’s weekday television programming
62) What agreement was reached in 1996 between broadcasters, children’s advocates, and the
federal government?
A) limiting advertising to 10 minutes per hour in children’s weekend television programming
B) limiting advertising to 12.5 minutes per hour in children’s weekday television programming
C) limiting advertising to 10 minutes per hour in all children’s television programming
D) requiring all TV stations to air three hours of children’s educational shows a week
E) banning all advertising during children’s television programming
63) Advertising intended to mislead consumers by making claims that are false or by failure to
make full disclosure of important facts, or both, is called ________.
A) puff advertising
B) indirect advertising
C) deceptive advertising
D) unsubstantiated advertising
E) injurious advertising
64) For an advertisement to be ruled deceptive, the deception must influence consumers’ decision
making about products and services, which is known as ________.
A) misdirection
B) puffery
C) material injury
D) substantiation
E) double jeopardy
65) Which of the following is NOT considered by the FTC when determining the reasonableness
of a claim in an advertisement?
A) type and specificity of claim made
B) type of product
C) possible consequences of a false claim
D) degree of reliance on the claims by consumers
E) price of the product
66) A ________ is the first step in the regulation process after the FTC determines that an ad is
deceptive.
A) consent decree
B) cease-and-desist order
C) corrective advertising campaign
D) consumer redress order
E) deposition
67) Which of the following is NOT an FTC course of action for deception and unfair
advertising?
A) consent decrees
B) cease-and-desist orders
C) incarceration
D) corrective advertising
E) consumer redress