50. Age compression is the practice of
a. marketing to an older audience.
b. airing commercials about products during children’s shows about those products.
c. underage consumers responding to alcoholic ads.
d. targeting younger children when advertising products meant for older teenagers.
51. CARU was created by:
a. Congress.
b. the Manufacturer’s Self-Advertising Regulation Association.
c. the Children’s Television Network.
d. the Council of Better Business Bureaus.
52. The basic activity of CARU is
a. nominating exceptional children’s advertising for national awards.
b. to develop guidelines for effective advertising to children.
c. to review and evaluate child-directed advertising in all media.
d. monitor new developments in ads directed toward children.
53. The industry under the greatest attack for its marketing and advertising practices is
a. pharmaceuticals.
b. liquor.
c. automobiles.
d. cigarettes.
54. All of the following are significant issues in cigarette advertising except
a. promotion of a dangerous product.
b. its aim at young audiences.
c. its aim at less-educated consumer markets.
d. its aim at less-developed countries.
55. The fact that advertising can increasingly be found everywhere is referred to as
a. the consumer culture.
b. expanding markets.
c. ad creep.
d. evolutionary marketing.
56. Warranties were originally used by manufacturers to
a. help sell their products.
b. differentiate their products from those of competitors.
c. improve the image of their products.
d. limit the length of time they were responsible for products.
57. The traditional term that was used for advertising located in novel locations (now called ad creep) was
a. ambiguous advertising.
b. stealth marketing.
c. ambient advertising.
d. undercover promotion.
58. An implied warranty is
a. available for all new and used products.
b. an unspoken promise that there is nothing significantly wrong with the product.
c. limited to one year.
d. states exactly what is covered and what is not.
59. A guarantee that is explicitly offered at the time of sale is called a(n)
a. implicit warranty.
b. express warranty.
c. traditional warranty.
d. extended warranty.
60. The purpose of the Federal Packaging and Labeling Act of 1967 was to
a. prohibit deceptive labeling of certain consumer products.
b. require disclosure of certain important information.
c. limit both the type and amount of material used in packaging.
d. both prohibit deceptive labeling of certain consumer products and require disclosure of certain important
information.
61. The Federal Packaging and Labeling Act of 1967 is administered by the
a. Federal Trade Commission.
b. Consumer Products Council.
c. Interstate Commerce Commission.
d. Federal Drug Administration.
62. Which of the following is not a law that addresses information disclosure issues?
a. Equal Credit Opportunity Act
b. Credit Collection Limitation Act
c. Truth-in-Lending Act
d. Fair Credit Reporting Act
63. The federal government’s major body for ensuring that business lives up to its responsibilities is the
a. Interstate Commerce Commission.
b. Federal Communications Commission.
c. Federal Trade Commission.
d. Consumer Protection Agency.
64. Which of the following is a category of top consumer complaints?
a. Auto
b. Sales
c. Airline
d. Landlord/Tenant
65. Plot placement is a response to
a. the TiVo effect.
b. consumer reports.
c. age compression.
d. self-regulatory guidelines.
66. Neuromarketers have concluded that the most effective sounds in terms of psychological appeals include all the
following except
a. babies giggling
b. packages being opened
c. vibrating cell phones
d. soda being popped and poured
67. “Functional foods” are all the following except
a. yogurts that claim to ease constipation
b. butter substitutes that reduce your cholesterol
c. Tomato extracts that keep your skill young and ward off cancer
d. foods that claim to negatively affect your health functioning
68. All of the following are “green watchdogs” groups seeking to monitor green advertising and certify green products
except
a. Green-e
b. Forest Stewardship Council
c. Energy Star
d. EcoNogo
69. The Warranty Act
a. sets standards for what must be contained in a warranty and ease with which consumers must be able to
understand it.
b. says that any unconditional assurance must be promoted as a full warranty.
c. says that full warranties do not have to include repair.
d. says that shipping charges do not have to be included in a full warranty.
70. The Federal Trade Commission (FTC)
a. achieves free and fair completion in the economy.
b. protects misleading practices.
c. issues trade regulation rules.
d. Monitors competitive practices.
71. The Credit Card Act of 2009:
a. has reduced the cost of credit cards.
b. has been mostly beneficial to consumers.
c. has provided universal opportunity for rate increases.
d. has provided availability of cards to young people.
72. The Consumer Financial Protection Bureau:
a. enforces consumer financial protection laws.
b. takes consumer complaints.
c. promotes financial education.
d. The CFPB does all of these things.
Provide a short answer to each of these questions. Be sure to fully explain your answer.
73. Describe the ways in which the Internet has facilitated the consumer movement.
74. What is the basic reason for the ethical issues surrounding product information?
75. Describe the main issues related to using psychological appeals in advertising.
76. In your opinion, is the use of American flags and patriotic themes appropriate in advertising?
77. Why is the role of business’s social responsibility so central to the question of advertising?
78. Young children seldom have any money of their own to spend, nor can they get to the store to buy things. Why, then,
are marketers so anxious to advertise to children?
79. Why is advertising to children particularly troubling to ethicists?
80. Explain how digital video recorders such as TiVo have contributed to ad creep.
81. The textbook claims that warranties have become more important as e-commerce has become more popular. Why
might this be true?
82. From a business person’s perspective, evaluate L. L. Bean’s warranty, “Our products are guaranteed to give 100
percent satisfaction in every way. Return anything purchased from us at any time if it proves otherwise. We will replace it,
refund your purchase price or credit your credit card, as you wish. We do not want you to have anything from L. L. Bean
that is not completely satisfactory.”
83. What is wrong with Verizon’s ad “Guaranteed to Never Go Up” as well as other listed advertising absurdities in the
text?
84. What role are the cigarette companies now playing in the ethical issues surrounding smokeless tobacco?
Utilize the knowledge you have gained to respond to the following essay questions. Your answers should state your
position and use logical arguments and content from this and other chapters in the textbook to support it.
85. Some people say that even uninformative advertising is beneficial to consumers and the economy. Evaluate this
argument.
86. Is the advertising practice of product placement unethical?
87. Charges have been leveled against liquor companies for targeting their ads toward children. One commercial series is
the Budweiser frog sequence. Evaluate the accuracy of these charges.
88. Imagine purchasing a backpack with a “lifetime” warranty. What does a “lifetime” warranty imply? Is it deceptive in
any way?
89. Describe the different types of self-regulation in advertising. Which type do you think is most effective? Why?
90. In 2010, Pepsi announced a plan to promote healthy foods. What is the status of the program? Have they expanded the
idea to other countries?
91. What role do you think the Warranty Act should play in new extended warranty scams.