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 siguificantly 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 not a lesson from the consumer
movement?
a. public oversight is needed where corporations lack incentives to regulate their own behavior
responsibly.
b. consumers must curb the wasteful overconsumption that threatens the
envirornnent.
c. the need to achieve consumerism from one organization to
another.
d. Product safety net and consumer protection infrastructure have serious
holes.
65. Free Press is
a. a coalition of 50 groups fighting product and plot placements.
b. the Federal Communications Commission
c. The Federal Trade
Commission.
d. A Consumer Protection
Agency.
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. Three years after becoming law, the Credit Card Act
of2009:
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 fmancial protection
laws.
b. takes consumer
complaints.
c. promotes fmancial 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?
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
specifically cited 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
anyway?
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.