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. To rebuild consumer confidence in brands, many companies have
begun
a. a back to the customers
initiative
b. the great trust
offensive
c. the bounce back
economy
d. the ignored
offensive
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.
consumensm.
d. purchaser
power.
30. Which of the following is not a lesson from the consumer
movement?
a. Product safety and consumer protection processes have
flaws.
b. In the United States consumers must fight
overconsumption.
c. Consumers can force companies to change their behaviors through
boycotts.
d. The consumer movement is essential for achieving a fair and just
marketplace.
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. convmcmg.
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 exaggerated
claims?
a. They induce people to buy things that do them no
good.
b. They drive out good advertising.
c. They generally cost more to
produce.
d. They result in a loss of advertising
efficiency.
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 finn’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. regnlate the plotlines of children’s
shows.
d. limit the number of hours children could watch television.
50. Which of the following is not part of CARD’s guidelines for advertising directed toward children under the age
of
twelve?
a. take into account the maturity, knowledge, and sophistication of the
audience
b. do not exploit the imaginations of young children
c. incorporate minority and other groups into the advertising
d. consider the socioeconomic level of the
audience