Chapter 15: Social and Regulatory Issues: Privacy, Security, and Intellectual
Property
MULTIPLE CHOICE
1. Among the actions businesses should take to improve trust in themselves and their brands are:
a. align their business mission with the social good.
b. conduct advertising campaigns to tell why they should be trusted.
c. neither of the above.
2. Actions taken by consumers to protect the privacy of their data include:
a. boycotting websites.
b. email campaigns.
c. rejecting cookies.
3. The dimensions of trust on the Internet include:
a. organizations that monitor behavior of websites.
b. security of personal data.
c. public relations activities of enterprises.
4. Brands that are trusted by Internet consumers benefit by:
a. reduced cost of customer acquisition.
b. wider visibility.
c. more visitors to their websites.
5. Which of the following online marketing activities is most disliked by consumers:
a. banner advertising.
b. email newsletters.
c. behavioral tracking.
6. What actions are marketing trade groups taking to try to calm the concerns of consumers about
behavioral tracking:
a. educating consumers about online behavioral advertising.
b. introducing an icon for advertisers who comply with industry policies.
c. both of the above.
7. What kinds of data do consumers tend to consider sensitive?
a. health-related.
b. goods and services purchased.
c. websites visited.
8. Privacy on social networks:
a. presents difficult issues for both consumers and marketers.
b. is guaranteed by the social networks.
c. is not generally an issue of concern.
9. In the United States, laws have not been passed regulating the collection and use of personal
information about:
a. financial activities of consumers.
b. people over 65 years of age.
c. information collected from children.
10. ________ is the law that protects the medical data of patients.
a. FTC
b. COPPA
c. HIPPA
11. Among the business practices recommended by the Federal Trade Commission are:
a. greater transparency in consumer data collection policies and practices.
b. a standard privacy policy to be used by all business entities.
c. survey consumers about their attitudes toward the company’s privacy policies.
12. ________ is one of the fair information practice principles.
a.
Choice
b.
Authentication
c.
Entitlement
13. A true statement about consumer practices related to the security of their data is:
a. most users are confident that they can identify a phishing email.
b. most users are not sure they are protected from malware.
c. neither of the above.
14. Software that tracks consumer’s activities on the web, usually without their knowledge, is called:
a.
openware.
b.
spyware.
c.
traceware.
15. ________ is generally considered the most important data security problem on and off the
Internet:
a. Viruses
b. Spam
c. Identity theft
16. The law that attempts to bring intellectual property regulation into the digital age is:
a.
Fair Information Practices Law.
b.
Treaty of Rome.
c.
Digital Millennium Copyright Act.
17. Which of the following are is not a true statement about intellectual property issues on the Internet?
a. P2P file sharing is acceptable in the eyes of copyright law.
b. The Internet has magnified the problem of protecting intellectual property.
c. Businesses show little concern for intellectual property protection.
18. Creative Commons is a:
a. government program to protect intellectual property.
b. voluntary alternative to traditional copyright law.
c. oftware program that protects against malicious content.
TRUE/FALSE
1. Trust, always at the heart of our economic system, has become even more important in the
Internet Age.
2. Businesses have a long run competitive advantage as a result of having trusted brands.
3. The rise of social media has added another dimension to consumer concerns about the privacy of
PII.
4. There is no way for Internet sites to collect data about consumers without the consumers being
aware that data is being collected.
5. When consumers are informed about the nature of behavioral tracking they become more
comfortable with its use.
6. Consumers consider all personal data to be roughly equivalent in terms of its sensitivity.
7. Marketers are not able to collect much useful consumer data from social networks.
8. In recent years users have become concerned about the privacy of PII on their mobile devices.
9. The provisions of COPPA apply only to children under 6 years of age.
10. Financial services institutions in the U.S. are required by law to notify consumers about their
privacy policies.
11. Privacy policies should be prominently posted on the corporate website.
12. Under the fair information practice principles the consumer should be able to obtain redress for
injuries suffered as a result of business violations.
13. Privacy seals are part of the U.S. government’s program to increase Internet security.
.
14. Fake websites can be set up for the purpose of stealing data such as credit card numbers.
15. Identity theft is a consumer problem, not a concern of business.
17. Except for music, issues concerning intellectual property have not changed much as a result of the
Internet.
18. Creative Commons is an effort to promote sharing of content while protecting the rights of the
creator.
ESSAY
1. There are a number of actions that businesses can take to increase the level of trust that
consumers have in them. Identify three specific actions and explain why they are important in creating
trust.
2. Consumers do not need to be concerned about the privacy of their PII on social networks. Take a
position on that statement and give reasons that support your position.
3. There are several security issues that affect consumers. Choose two specific issues. Explain the
nature of the issue, what consumers can do to protect themselves, and what business should be doing to
protect consumers.
4. Digital property rights represent a contentious subject among many groups associated with the
Internet. Explain why it is a problem and how it affects both Internet users and businesses.