1. Customer relationship management (CRM) is the ability of an organization to retain profitable customers.
a. True
b. False
2. As the economy struggles to come out of the recession, consumers have become more cautious and selective about
spending.
a. True
b. False
3. The origin of consumer activism can be traced back to the late 1700s, to the Boston Tea Party.
a. True
b. False
4. The consumer movement is generally traced back to a single cause or event, although the specific incident varies from
author to author.
a. True
b. False
5. The effects of advertising have clearly had a net positive effect on society.
a. True
b. False
6. The effects of advertising have clearly had a net negative effect on society.
a. True
b. False
7. Most consumers today understand that advertising attempts to persuade them.
a. True
b. False
8. Not telling the whole truth in advertisements is a widely used practice called concealing facts.
a. True
b. False
9. Comparative advertising always affects advertising positively.
a. True
b. False
10. Targets of comparative advertising have no recourse if they think their competition has gone too far.
a. True
b. False
11. Sexual references in advertising create more of a backlash today than they did two or three decades ago.
a. True
b. False
12. If the Children’s Advertising Review Unit (CARU) cannot get advertisers to modify their campaigns, CARU must let
the matter drop with no further action.
a. True
b. False
13. Advertising hard liquor on television used to be illegal in the United States.
a. True
b. False
14. Tobacco companies no longer advertise tobacco products in a way to appeal to children.
a. True
b. False
15. A company’s desire to portray its product in the most flattering light can lead to misinfomration.
a. True
b. False
16. Ad creep has been expanding.
a. True
b. False
17. A full warranty must contain certain features, including repair within a reasonable period of time at no charge
a. True
b. False
18. A limited warranty means that the company guarantees all parts of the product and all types of defects, but only for a
limited period of time.
a. True
b. False
19. The Truth in Lending Act requires all suppliers of consumer credit to fully disclose all credit terms and to permit a 3-
day right of rescission in any transaction involving a security interest in the consumer’s residence.
a. True
b. False
20. Self-regulation in advertising relies on the advertiser itself to control its advertising conduct and performance.
a. True
b. False
21. The consumer movement is still absolutely essential for achieving a fair and just marketplace for all consumers.
a. True
b. False
22. Obesity researchers say they have data proving that the most sugary, calorie-laden breakfast cereals are marked to
children most aggressively.
a. True
b. False
23. Consumers are readily pursuing green products.
a. True
b. False
24. The ability of an organization to effectively identify, acquire, foster, and retain loyal profitable customers is
a. customer service.
b. effective marketing.
c. customer relationship management.
d. ethical marketing.
25. Ambiguous advertising that leaves it to the viewer to infer the message is the use of
a. concealed facts.
b. weasel words.
c. plot placements.
d. exaggerated claims.
26. Which of the following is not one of the rights in the consumer’s Magna Carta?
a. right to safety
b. right to be informed
c. right to be protected
d. right to choose
27. A consumer’s right to choose refers to
a. his right to have an inventory of more than one to choose from.
b. her right to decide what store to buy from.
c. his right to eliminate products that do not meet his needs.
d. the assurance that competition is working effectively.
28. The right to be heard was listed as part of the consumer’s Magna Carta because
a. consumers should have a say in a store’s hours of operations.
b. many consumers felt that they could not effectively communicate their desires and grievances to businesses.
c. everyone wants to feel that others listen to them.
d. because business has refused to listen to customers.
29. The social movement that seeks to augment the rights and powers of buyers in relation to sellers is
a. caveat emptor.
b. buyer beware.
c. consumerism.
d. purchaser power.
30. Which of the following is not an activity of the CFPB?
a. Taking consumer complaints
b. Researching consumer behavior
c. Promoting political education
d. Restricting unfair, deceptive, or abusive acts or practices
31. The father of the consumer movement is
a. Ralph Nader.
b. Dan Murtaugh.
c. Michael Moore.
d. Richard Nixon.
32. Common consumer complaints include all of the following except
a. poor quality of products.
b. lack of consumer credit.
c. high prices.
d. misleading packaging or labeling.
33. The power held by consumers comes from
a. umbrella organizations.
b. trade associations.
c. company lobbying.
d. grassroots involvement.
34. The two major classifications of issues in the business/consumer relationship are
a. cost and safety.
b. product information and the product itself.
c. warranties and advertising.
d. customer service and product safety.
35. Issues related to product information include all of the following except
a. advertising.
b. warranties.
c. labeling.
d. website design.
36. Which of the following is not a commonly recognized benefit of advertising?
a. It stimulates competition.
b. It provides information useful in comparison shopping.
c. It provides competitors with information.
d. It lowers the price of goods and services.
37. Information that is direct and straightforward, that is not deceptive or manipulative is
a. clear.
b. concise.
c. convincing.
d. creative.
38. Information that communicates truths, and avoids exaggeration and innuendo is
a. adequate.
b. accurate.
c. ascetic.
d. antithetical.
39. Information that provides potential purchasers with enough information to make the best choice among the options
available is
a. adequate.
b. ambivalent.
c. minimal.
d. realistic.
40. Advertising abuses include all of the following types except
a. ambiguity.
b. concealed facts.
c. psychological appeals.
d. cynical depictions.
41. Words that are inherently vague, without being misleading are referred to as
a. weasel words.
b. mildly deceptive.
c. perceptively ambiguous.
d. intentionally ambivalent.
42. Use of plot placements involve
a. awards given for extraordinarily poor advertisements.
b. advertising ideas taken from the storylines of books or movies.
c. placement of products part of the storyline of a television show.
d. ideas for new products taken from books.
43. Advertising claims that cannot be substantiated by evidence are termed
a. misleading.
b. outlandish.
c. understatements.
d. exaggerated claims.
44. Puffery is another way of saying that a statement is an exaggeration that uses
a. general superlatives.
b. ambiguous praise.
c. vague commendations.
d. special terminology.
45. Which of the following is not a problem associated with psychological appeals?
a. Products seldom deliver.
b. Stir emotions and manipulate consumers.
c. Less memorable than functions or features.
d. Take advantage of vulnerability.
46. Advertising that is designed to persuade on the basis of human emotions and emotional needs rather than reason relies
on
a. puffery.
b. concealed facts.
c. ambiguous wording.
d. psychological appeals.
47. The practice of directly contrasting a firm’s product with the product of a competitor is called
a. comparative advertising.
b. puffery.
c. the taste test approach.
d. denigration.
48. The most recent trend in sex-appeal advertising campaigns is:
a. to target the Christian right.
b. to target feminists.
c. to target sex workers.
d. to target younger and younger girls.
49. The Children’s Television Act was passed to
a. prevent violent shows from being broadcast during morning hours.
b. prohibit the airing of commercials about products or characters during a show about those products or characters.
c. regulate the plotlines of children’s shows.
d. limit the number of hours children could watch television.