978-1260100044 Test Bank Chapter 20 Part 3

74. Which of the following is true regarding the FDA’s mandated changes to nutrition labels on packaged foods?

A. the government covers the costs of label redesign

B. the changes reflect the link between diet and chronic diseases

C. the changes make it easier for consumers to make better informed food choices

D. the changes reflect the link between diet and chronic diseases and the changes make it easier for consumers to

make better informed food choices

E. the government covers the costs of label redesign, the changes reflect the link between diet and chronic diseases,

and the changes make it easier for consumers to make better informed food choices

75. While government and businesses want consumers to have full disclosure, which of the following might result

for consumers?

A. information overload

B. increased time to make a decision

C. inability to make a decision

D. all purchases become high-involvement situations

E. inferior choices will be made

76. Which of the following is a major issue consumer groups have concerning products?

A. Are they safe?

B. Are they environmentally sound?

C. Do they meet consumers’ needs?

D. Are they safe? and Are they environmentally sound?

E. Are they safe?, Are they environmentally sound?, and Do they meet consumers’ needs?

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of McGraw-Hill Education.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: Moderate

Gradable: automatic

Learning Objective: 20-05 Discuss regulation concerns when marketing to adults as they relate to product and price.

Topic: Product Issues

77. The primary federal agency involved in regulating pricing activities is the

A. FTA.

B. FTC.

C. FDA.

D. FPC.

E. FPA.

78. The latest FDA package designs for cigarettes will

A. show half the package covered with verbal warnings.

B. show half the package covered with visual warnings.

C. state that the incidence of smoking has declined since 2005.

D. show half the package covered with verbal warnings and show half the package covered with visual warnings.

True or False Questions

79. Marketing practices are sometimes controversial.

20-34

of McGraw-Hill Education.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: Easy

Gradable: automatic

Learning Objective: 20-01 Explain the two major concerns in marketing to children that CARU deals with.

Topic: Marketing Regulation and Consumer Behavior

80. The regulation of marketing activities aimed at children focuses primarily on product safety, advertising and

promotions, and child pornography.

81. 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.

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

children.

83. CARU guidelines allow for the use of price minimizations such as “only $19.99.”

84. CARU guidelines that prohibit price minimizations such as “only $19.99” are related to concerns regarding

advertising effects on health/safety/values.

85. Research indicates that disclaimers such as “Part of a nutritious breakfast” or “Each sold separately” are fully

understood even by children as young as three years old.

86. 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.

20-36

of McGraw-Hill Education.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: Moderate

Gradable: automatic

Learning Objective: 20-01 Explain the two major concerns in marketing to children that CARU deals with.

Topic: Concerns about the Effects of the Content of Commercial Messages on Children

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

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

children.

89. Ads in such places as school buses, scoreboards, and bulletin boards are classified by Consumers Union as in–

school ads.

90. Concern over the invasion of children’s privacy prompted Congress to pass the Children’s Internet Protection Act

in October 1998.

91. Regulation of marketing activities aimed at adults focuses on marketing communications, product features,

pricing practices, and privacy.

92. 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.

93. Native advertising raises concerns related to consumer information accuracy.

20-38

of McGraw-Hill Education.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Blooms: Understand

Difficulty: Moderate

Gradable: automatic

Learning Objective: 20-04 Explain marketing communication issues related to adults including deceptive advertising.

Topic: Marketing Communications

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

95. 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.

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

Essay Questions

97. Discuss the concerns about the ability of children to comprehend commercial messages.

Explanation:

98. 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.

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

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

Explanation:

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

Chapter 20 Test Bank Summary