ARE 136 CH 4
107. (Scenario 4-6) According to Maslow's Hierarchy theory, which of the following needs would the third advertisement most likely satisfy? a. Esteem needs b. Need for affiliation c. Extrinsic needs d. Self-actualization needs
a. Esteem needs
49. are moral standards and principles against which behavior is judged. a. Ethics b. Appropriations c. Sects d. Dailies
a. Ethics
50. Which of the following is true about ethics? a. It is based on personal judgement. b. It is applicable to business alone. c. It is strongly looked down upon in society. d. It is the basic structure of business.
a. It is based on personal judgement.
84. What concept is involved when a statement that occurs in print is untrue and damages the reputation of a person, based on words found in magazine, newspaper, direct mail, or Internet reports? a. Libel b. Slander c. Larceny d. Appropriation
a. Libel
38. Which of the following forms the lowest order of needs in Maslow's hierarchy of needs theory? a. Physiological needs b. Needs for affiliation c. Self-actualization needs d. Intrinsic needs
a. Physiological needs
108. (Scenario 4-6) With reference to Maslow's hierarchy theory, which of the following needs would the fourth advertisement most likely satisfy? a. Self-actualization needs b. Need for affiliation c. Growth needs d. Psychological needs
a. Self-actualization needs
13. In advertising, deception refers to making false or misleading statements in advertisements. a. True b. False
a. True
14. It is almost impossible to legislate against emotional appeals in ads, since even if they seem exaggerated or inaccurate, they are unquantifiable so there is no way to prove this. a. True b. False
a. True
15. The calls for restrictions on advertising to children over the years have been based on a number of concerns, one of which is the promotion of superficial material things as necessary and valuable. a. True b. False
a. True
2. As a promotional tool and an industry, advertising gets a lot of attention, scrutiny, and criticism today because it is so conspicuous and has established a global presence. a. True b. False
a. True
20. Vertical cooperative advertising is an advertising technique whereby a manufacturer and dealer share the expense of advertising. a. True b. False
a. True
22. Consumer groups have been just as successful as the FTC in restricting children's advertising. a. True b. False
a. True
23. The FTC's advertising substantiation program, set up in the 1970s, requires that documented evidence supporting any claims is made available to consumers, and that such evidence provides a "reasonable basis" for believing that the claims are true. a. True b. False
a. True
26. State governments have very little authority over promotional activities of firms, and since most companies conduct interstate commerce, any violations are federal issues. a. True b. False
a. True
27. Supporters of industry self-regulation claim that self-regulation helps avoid unnecessary government meddling. a. True b. False
a. True
29. The three divisions within a local Better Business Bureau—merchandise, financial, and solicitations—investigate advertising practices of companies in their geographic area. a. True b. False
a. True
3. The social aspects of advertisement are often volatile. a. True b. False
a. True
30. Since there has been little regulation of advertising and promotion on the Internet to date, the industry itself has had to act as its main governing body. a. True b. False
a. True
32. The CAN SPAM Act does not outlaw all unsolicited emails. a. True b. False
a. True
35. The field of public relations is not restricted by the same types of laws as other business elements of the promotional and marketing mix. a. True b. False
a. True
4. Critics of advertising claim that advertising carries little of any good product information and that most advertising is biased, limited, and inherently deceptive. a. True b. False
a. True
6. Proponents of advertising claim that advertising addresses a wide variety of basic human needs. a. True b. False
a. True
8. Critics of advertising argue that advertising creates a tendency of conformity and status-seeking behavior. a. True b. False
a. True
9. It is possible to make a reasonable argument that the massive consumption that advertising upholds and glorifies is actually quite good for American society, and for other cultures around the world. a. True b. False
a. True
86. (Scenario 4-1) Some philosophies regarding our path to overconsumption proposed by Adbusters echo the words of advertising historian Stephen Fox when he wrote, "One may build a compelling case that American culture is— beyond redemption—moneymad, hedonistic, superficial, rushing heedlessly down a railroad track called Progress." Fox then concluded that advertisers: a. are not creating the American way of life, but just reflecting it, good or bad. b. have nothing to do with the fact that all modern cultures have essentially become obsessed with consumption, not just America. c. are the self-serving manipulators and hidden persuaders who have created this situation. d. are to be blamed for the reckless lifestyle and behavior of modern day youth.
a. are not creating the American way of life, but just reflecting it, good or bad.
80. Marketers have to be particularly cautious about using as a form of promotion, because fraud abounds in this area. a. coupons b. telemarketing c. premiums d. trade allowances
a. coupons
90. (Scenario 4-2) Purple Inc. published an advertisement stating that its competitor's glasses were fake and would not be good for the customer's dog, let alone a human. This is an example of . a. libel b. accommodation c. puffery d. appropriation
a. libel
63. If firms decide to use comparison advertisements, they: a. may be required by the FTC to substantiate their claims. b. share the costs of advertising with local dealers and distributors. c. are acting in opposition to the recommendations of the American Association of Advertising Agencies. d. cannot legally mention a competing firm or brand by name.
a. may be required by the FTC to substantiate their claims.
68. In a legislation passed in the 1990s, the FTC's role in regulating advertising was expanded regarding: a. nutrition labeling. b. spam. c. telemarketing. d. direct mail.
a. nutrition labeling.
71. An established cereal manufacturer is being investigated by the FTC for claims that its oatmeal can repair damaged arteries and prevent heart disease. Its executives are aware that if the claims are found to be false, the firm may receive the FTC's most severe penalty, which involves: a. ordering corrective advertising. b. issuing a cease-and-desist order. c. an order to insert a disclaimer. d. dissolving the corporation.
a. ordering corrective advertising.
39. According to Maslow's hierarchy of needs structure, ads for breakfast cereals and soft drinks can be thought of as promotions for products that address: a. physiological needs. b. love and belonging needs. c. self-actualizing needs. d. esteem needs.
a. physiological needs.
58. Sarah, a 13-year-old girl, came across an advertisement that displayed a new trendy hair color aimed at a mature audience. Intrigued by the advertisement, Sarah goes out and buys the product. This is an example of . a. primary demand stimulation b. subliminal advertising c. vertical cooperative advertising d. phishing
a. primary demand stimulation
81. The Telephone Consumer Fraud and Abuse Prevention Act of the mid-1990s: a. required telemarketers to maintain a list of customers who do not want to be called. b. banned recorded messages and robocalls. c. restricted telemarketers from calling customers more than twice a month. d. allowed the use of "robocalls" that contain recorded messages.
a. required telemarketers to maintain a list of customers who do not want to be called.
60. Although the courts and the FTC have been quite specific about defining many other practices, the definition of has always been relatively vague. a. unfair advertising b. copyright infringement in advertising c. false labeling and packaging d. phishing in online advertising
a. unfair advertising
37. The cost of products are lowered: a. when there are high success rates of a product. b. by lowering the economies of scale of a product. c. when there is a high inelasticity of demand for a product. d. when there are little or no competitors with a similar product.
a. when there are high success rates of a product.
55. Three teenage girls who hang around together all start to smoke cigarettes, and eventually start to drink beer on weekends. With reference to recent research results of the Federal Trade Commission, the cause for the teenage girls' habits: a. would most strongly influenced by families, friends, and peers. b. have been influenced by advertisements portraying it as cool. c. stem from hereditary traits. d. directly relate to advertising campaigns of criminally negligent firms.
a. would most strongly influenced by families, friends, and peers.
72. The outlines the responsibilities and social impact advertising can have and promotes high ethical standards of honesty and decency. It is also considered the most widely recognized industry standard. a. advertising substantiation program b. 4As Creative Code c. Federal Communications Commission d. Code Authority of the NAB
b. 4As Creative Code
95. (Scenario 4-4) After Joe complained, the salesperson replied, "If our industry didn't do so much advertising you probably couldn't afford to buy that computer to do your own research." Which of the following "pros" of advertising is the salesperson likely using to support his comment? a. Advertising fosters a diverse and affordable mass media. b. Advertising fosters new product success and lowers costs. c. Advertising reflects the priorities of a society. d. Advertising contributes to art and culture in a society.
b. Advertising fosters new product success and lowers costs.
101. (Scenario 4-5) Which of the following actions would help Fritters prove the fairness of its first comparison ad? a. By entering a stealth sponsorship with its competitor b. By including a disclaimer c. By sharing the profits of the ad with its competitor d. By mentioning the contents of the meals
b. By including a disclaimer
100. (Scenario 4-5) The would prevent Fritters from being sued by the customer blaming it for his obesity. a. Advertisement substantiation program b. Cheeseburger Bill c. Robinson-Patman Act d. Wheeler-Lea Amendment
b. Cheeseburger Bill
74. Which of the four primary consumer protection organizations was the first to be established, and is best known for its publication of Consumer Reports? a. Consumer Federation of America b. Consumers Union c. Consumer Alert d. Commercial Alert
b. Consumers Union
53. Which aspects of advertising are legal but fall into an ethical gray area, making them almost impossible to legislate against? a. Disclaimers b. Emotional appeals c. Testimonials d. Contests and sweepstakes
b. Emotional appeals
1. Societies tend to monitor advertising to determine what is irresponsible, unethical, or illegal. Despite social shifts and technological advances, a culture's views on what is acceptable and unacceptable never change. a. True b. False
b. False
10. Subliminal advertisement has been proved to be an effective way of embedding images and messages into an advertisement that influences the unconscious minds of people. a. True b. False
b. False
11. Even those who view advertising positively for other reasons often admit that it rarely contributes to art and culture, and art and culture have little room for advertising. a. True b. False
b. False
12. Advertisers have historically been responsible for buying air time on educational and cultural programs despite their smaller audiences, thereby boosting the overall quality of American television. a. True b. False
b. False
16. The Children's Food and Beverage Advertising Initiative is a voluntary commitment, signed by many wellknown corporations, to stop advertising on children's television programs. a. True b. False
b. False
17. The FTC has regularly issued warnings to tobacco companies about ads that have been shown to cause young people to start smoking, backed up by decades of substantial evidence to this effect published by reputable medical journals. a. True b. False
b. False
18. The three primary areas of advertising regulation are obscenity and profanity, deception, and unsolicited or direct marketing. a. True b. False
b. False
19. The FTC's regulations on deception have no authority over omissions or missing information about a product, but only cover those false statements or misleading claims actually made by the advertiser. a. True b. False
b. False
21. An advertisement for a peanut butter product, of one firm, that compares itself to the peanut butter product, of another firm, would be considered illegal because it mentions brand-name goods produced by another firm. a. True b. False
b. False
24. In a ceaseanddesist order by the FTC, an advertiser agrees voluntarily to stop running the ad but doesn't have to admit any guilt or wrongdoing. a. True b. False
b. False
25. When an NFL football player begins endorsing a line of energy bars and protein drinks, he is required to genuinely demonstrate using the product in the advertisement although does not have to utilize the product in day to day life. a. True b. False
b. False
28. A relatively new federal agency is the National Advertising Division (NAD), empowered to create and enforce strict standards for packaging, labeling, distribution, and merchandising through its National Advertising Review Board (NARB). a. True b. False
b. False
31. Consumer and industry groups are free to make attempts at shaping and restricting the advertising process, but in reality have little voice or power compared to the federal government. a. True b. False
b. False
33. The main restriction of direct mail sweepstakes, as imposed by Congress, involves the requirement that they are randomly and fairly distributed to a wide range of communities and addresses throughout the 50 states. a. True b. False
b. False
34. The first government restriction on telemarketing required companies to remove households from their dialing lists when residents requested this. a. True b. False
b. False
5. Critics of advertising claim that advertisements do much more than just "shuffling of total demand," but contribute to the increase of total demand. a. True b. False
b. False
7. Advertisers of "controversial products" are in danger of deceiving the public when they attempt to show social responsibility, such as beer companies spending millions a year promoting responsible drinking. a. True b. False
b. False
94. (Scenario 4-3) The competitor who filed a complaint with the FTC also had the option of working with the media self-regulatory organization that evaluates ethical issues, the , which has the authority to review concerns over issues of truth, fairness, or good taste and make recommendations based on its findings. a. Consumer Federation of America b. NAB's Code Authority c. Family Research Council d. Better Business Bureau
b. NAB's Code Authority
78. are unsolicited commercial messages sent through the e-mail system. a. Blogs b. Spam c. Premiums d. Infomercials
b. Spam
70. Wrinkle Free were served a notice by the FTC for releasing a deceptive advertisement regarding a cream they had launched. However, the advertising agents of Wrinkle Free failed to comply to the notice. Which of the following remedies would FTC employ following noncompliance by Wrinkle Free? a. The FTC will dissolve the firm for non-compliance. b. The FTC would issue a cease-and-desist order to Wrinkle Free. c. The FTC would allow Wrinkle Free to continue airing the advertisement if it agrees to add a disclaimer to all their products. d. The FTC would order that Wrinkle Free pay a fine and double the fee to air the advertisement.
b. The FTC would issue a cease-and-desist order to Wrinkle Free.
104. (Scenario 4-5) If Fritters had removed the advertisement soon after receiving a court order it would be an example of _____. a. a stealth sponsorship b. a consent order c. monopoly power d. puffery
b. a consent order
87. (Scenario 4-1) In the past, Adbusters has cited 12 magazines that it said are responsible for pushing "a clean, exciting image for one of the dirtiest products around: tobacco." It suggested that Americans cancel their subscriptions to these magazines until they stopped accepting these ads. This is an example of: a. the social phenomenon called corrective advertising. b. a strategic tool for pressuring advertisers called boycott. c. a push for consumers to mobilize and take certain actions called behavioral targeting. d. the self-regulatory practice called corrective advertising.
b. a strategic tool for pressuring advertisers called boycott.
69. The of the FTC was initiated in 1971 with the intention of ensuring that advertisers make supporting evidence for claims available to consumers. a. Wheeler-Lea Amendment b. advertising substantiation program c. Robinson-Patman Act d. fair packaging program
b. advertising substantiation program
67. The Wheeler-Lea Amendment in 1938 greatly influenced the future of advertising in America by: a. establishing the powerful Federal Trade Commission (FTC). b. allowing the FTC to stop practices that were misleading, regardless of their impact on competition. c. granting industries the right to form self-regulatory organizations to reduce FTC interference. d. broadened the FTC's power to practices that were unfair to competitors alone.
b. allowing the FTC to stop practices that were misleading, regardless of their impact on competition.
47. Wellknown illustrator Andy Warhol felt strongly that the American ads that had promoted the nation's most popular products over the decades were: a. visual manifestations of a sick society overtaken with consumerism and greed. b. anti-elitist artworks for the masses depicting ordinary goods used by both rich and poor. c. pioneering graphic innovations that visually displayed the power of elitism. d. flashy images and tasteless visuals that cluttered the cultural landscape.
b. anti-elitist artworks for the masses depicting ordinary goods used by both rich and poor.
88. (Scenario 4-2) Purple Inc. launched an advertisement displaying an image of a model of its competitors sun glasses. However, it had not received consent from the party to utilize the picture. This is an example of . a. puffery b. appropriation c. spamming d. libel
b. appropriation
102. (Scenario 4-5) Fritters's second advertisement is an example of advertising. a. subliminal b. comparison c. vertical cooperative d. corporate
b. comparison
105. (Scenario 4-6) According to Maslow's Hierarchy theory, the first advertisement would satisfy a persons . a. existence needs b. physiological needs c. growth needs d. intrinsic motives
b. physiological needs
82. Despite being registered under the Do Not Call Registry, a person can receive calls from: a. businesses they've contacted in the last six months. b. politicians and pollsters. c. companies that have delivered something to the person in the last 24 months. d. co-operatives and insurance firms.
b. politicians and pollsters.
98. (Scenario 4-4) The Pederson dealership and Toyota share the expense of local advertising in this market. This is an example of advertising. a. subliminal b. vertical cooperative c. corporate d. institutional
b. vertical cooperative
44. In their 2004 "Campaign for Real Beauty," the people creating the groundbreaking Dove ads attempted to be realistic, show sensitivity, and fight stereotypes by featuring: a. plus-size models who do not fit the narrow norm of beauty. b. women, who were not models, displaying various ethnicities, looks, and sizes. c. both men and women using Dove products. d. endorsements by famous elderly actresses with young-looking skin.
b. women, who were not models, displaying various ethnicities, looks, and sizes.
66. The was established as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. a. Library of Congress b. Federal Communications Commission c. Consumer Finance Protection Agency d. National Consumer Agency
c. Consumer Finance Protection Agency
75. The describes itself as "an expert, independent, non-profit organization whose mission is to work for a fair, just, and safe marketplace for all consumers and to empower consumers to protect themselves." a. Consumer Finance Protection Agency b. Consumer Federation of America c. Consumers Union d. Consumer Review Unit
c. Consumers Union
41. A high-end specialty store, recognized nationwide for its prestigious reputation, is busy with customers eyeing and buying costly items of clothing with designer labels. They're also adding $400 purses, $500 shoes, and $1,000 bracelets and necklaces to their ensembles. Which of the following basic needs of Maslow's Hierarchy are most likely being fulfilled by these purchases? a. Extrinsic needs b. Need for affiliation c. Esteem needs d. Physiological needs
c. Esteem needs
73. Which of the following is best describes the concept of "consumerism"? a. It is a relatively recent concept first observed in the 21st century. b. It involves consumer-oriented promotions such as coupons, premiums, and sweepstakes. c. It defines the tactics that individuals and groups use to enact laws, pressure firms, or target unethical practices regarding goods and services. d. It refers to the ongoing expansion of contemporary marketing beyond traditional production of ads and commercials, including e-commerce and behavioral targeting.
c. It defines the tactics that individuals and groups use to enact laws, pressure firms, or target unethical practices regarding goods and services.
48. Which of the following best describes stealth sponsorship? a. It is when corporations pay journalists to give negative opinions about their competitors in their editorials. b. It is when corporations embed hidden messages in newspaper advertisements to unconsciously stimulate people to want something. c. It is when journalists are paid by corporations to receive favorable treatment in their editorials. d. It is when corporations partner with ancillary firms that they deal with to receive monetary favors from them.
c. It is when journalists are paid by corporations to receive favorable treatment in their editorials.
45. In recent years, the U.S. Senate has approved a tenfold increase in fines for advertising situations that are determined to step over the line regarding American society's basic ethical principles. What issues are being regulated in this way? a. Ad agencies that knowingly make false claims b. Advertisers that lure children into dangerous or unhealthy behaviors c. TV and radio stations that violate rules on airing profanity or sexually explicit materials d. Print media with ads that include erotic images or language
c. TV and radio stations that violate rules on airing profanity or sexually explicit materials
65. was established by the Better Business Bureau to evaluate ads directed at children based on guidelines that encourage sensitivity to their level of sophistication and knowledge, as well as emphasis on positive social traits such as friendship and kindness. a. The Family Research Council b. The Children's Food and Beverage Advertising Initiative c. The Children's Advertising Review Unit d. The Children's Television Act
c. The Children's Advertising Review Unit
99. (Scenario 4-4) Which government agency might eventually be reviewing the case if Joe felt he should file a complaint about advertising in the automotive industry? a. The Consumer Finance Protection Agency b. The Consumer Union c. The Federal Trade Commission d. The Consumer Federation of America
c. The Federal Trade Commission
97. (Scenario 4-4) Joe saw a television ad that stated the Toyota Camry was "the world's best car for reliability." The use of such absolute superlatives in advertising is: a. an illegal use of advertising language. b. unethical but legal. c. a legal and quite common use of exaggeration. d. unfair advertising but not deceptive advertising.
c. a legal and quite common use of exaggeration.
93. (Scenario 4-3) In the commercial, a sports star is shown in a sailboat on a beautiful lake, sending a long cast into the water, then listing the excellent features of the Lightning Rod. It closes with a well-known celebrity happily reeling in a fish. To meet FTC standards for this type of endorsement, the celebrity must: a. be considered an expert in the field of sport fishing. b. share 2 per cent of the expenses involved in the advertisement. c. actually use the Lightning Rod when fishing on his own. d. write the statements that he makes in the ad.
c. actually use the Lightning Rod when fishing on his own.
92. (Scenario 4-3) The FTC investigates the claim of "20 percent more casting distance" when using the Lightning Rod. Castaway Sports admits that it has no actual data to support the claim but believes it to be true. However, the FTC rules that Castaway Sports should stop airing the ads, and in response the Lightning Rod advertisement was removed. This is an example of a(n): a. dissolution. b. cease-and-desist order. c. consent order. d. appropriation.
c. consent order.
85. (Scenario 4-1) Organizations like Adbusters see advertising as superficial. This view of advertising says that it: a. is not entertaining, or even interesting, to consumers. b. has no effect on demand for specific brands of products. c. offers little information based on function or performance. d. ignores the hedonic aspects of products.
c. offers little information based on function or performance.
52. Which of the following claims demonstrates puffery in advertising? a. "Only Crest Earns the Dental Seal of Approval Among All Major Brands!" b. "Ford Trucks Have Lower MPG than Chevy Trucks!" c. "Tide Beats Cheer in Sales 8th Year in a Row!" d. "World's Best Cup of Coffee Served with a Smile Here!"
d. "World's Best Cup of Coffee Served with a Smile Here!"
56. Which of the following is true about advertising of alcohol and cigarettes? a. Brands in these categories don't spend a lot of money on advertisements to truly influence consumers. b. These ads are usually designed to be subliminal, suggesting but not causing behavior. c. Brands in these categories are only advertised as part of other programs which do not interest children. d. Advertising cannot create primary demand in mature product categories such as these.
d. Advertising cannot create primary demand in mature product categories such as these.
83. is the use of pictures or images owned by someone else without permission. a. Defamation b. Spamming c. Phishing d. Appropriation
d. Appropriation
51. What is the most fundamental ethical issue in advertising? a. Exaggeration, which is a serious but increasingly common practice b. Taste, particularly regarding society's exposure to offensive messages c. Materialism, which also is a key legal issue d. Deception, particularly false or misleading statements
d. Deception, particularly false or misleading statements
36. Which of the following is one of the four major aspects of advertising that lower the overall cost of products, according to proponents? a. Market segmentation b. Operating costs c. Inelasticity of demand d. Economies of scale
d. Economies of scale
106. (Scenario 4-6) While some argue that advertising promotes materialism, others argue that advertising addresses a number of basic human needs. With reference to Maslow's Hierarchy, an advertisement for a high-end clothing company would likely be appealing to which of these needs? a. Physiological needs b. Safety needs c. Self-actualization needs d. Esteem needs
d. Esteem needs
57. Which of the following best describes primary demand? a. It is the demand for an entire range of various products. b. It is the demand for a specific brand. c. It is the demand for a specific product. d. It is the demand for an entire product category.
d. It is the demand for an entire product category.
79. is an insidious version of spam where Web users are enticed into entering personal information on a fake website that is forged to look like it is from a bank, the IRS, or other organizations. a. Puffery b. Appropriation c. Blogging d. Phishing
d. Phishing
42. According to Maslow's hierarchy of needs theory, which of the following is the highest order of all human needs? a. Esteem needs b. Physiological needs c. Safety needs d. Self-actualization needs
d. Self-actualization needs
54. What was one of the government's earliest restrictions that targeted specific techniques and policies being used in programming and advertising designed for children? a. The Children's Food and Beverage Advertising Initiative b. The Nutrition Labeling and Education Act c. The "Cheeseburger Bill" d. The Children's Television Act
d. The Children's Television Act
61. is an advertising technique whereby a manufacturer and dealer share the expense of advertising. a. Differentiation b. Subliminal advertising c. Market segmentation d. Vertical cooperative advertising
d. Vertical cooperative advertising
103. (Scenario 4-5) Fritters continued airing its advertisement despite being asked to remove it by court. As a result, Fritters would be asked by the court to remove the ad in 30 days. This is an example of . a. accommodation b. appropriation c. a consent order d. a cease-and-desist order
d. a cease-and-desist order
109. (Scenario 4-6) Rad productions is in the process of airing an advertisement which depicts a sports drink that provides athletes with more energy than other drinks. However, it is not stated what causes the added energy. It is most likely that the FTC would require a(n) from the manufacturing firm. a. appropriation b. stealth sponsorship c. disclaimer d. affirmative disclosure
d. affirmative disclosure
76. Cloud9, a social networking site, has generated a large amount of revenue from selling information regarding its users preferences of soft drinks to a soft drink manufacturing and advertising firm. This is an example of . a. crowdsourcing b. appropriation c. phishing d. behavioral targeting
d. behavioral targeting
59. The Cheeseburger bill passed by the U.S. House of Representatives: a. restricts advertisements featuring highcalorie and highfat foods during children's programming. b. prevents falsifying nutrition information for fast foods. c. bars the promotion of toys to children that tie in with fast foods, sugary drinks, and salty snacks. d. blocks people from suing food companies for their obesity.
d. blocks people from suing food companies for their obesity.
62. Vertical cooperative advertising is usually legal, except when: a. unquantifiable emotional appeals are involved. b. a representation, omission, or practice is misleading. c. a firm uses monopoly power to dominate the other. d. bogus advertising allowances are given in the form of hidden price concessions.
d. bogus advertising allowances are given in the form of hidden price concessions.
64. TetraCom, a personal computer manufacturer, launched an advertisement comparing its computer with a competitor's computers. However it was found to be an unfair claim. In order to justify its fairness, TetraCom would be required to include a(n) . a. testimonial b. stealth sponsorship c. consent order d. disclaimer
d. disclaimer
46. It is believed that advertisers deceive via subliminal advertising by: a. influencing people to buy things via word of mouth advertisement. b. providing offers to the public that would stimulate them to buy their products. c. exaggerating the features of a product and providing assurances to stimulate people to buy a product. d. embedding hidden messages or images within an advertisement.
d. embedding hidden messages or images within an advertisement.
40. Many consumers buy products that they perceive to have prestige and status which would be considered needs under Maslow's hierarchy theory. a. growth b. affiliation c. self-actualization d. esteem
d. esteem
96. (Scenario 4-4) The first time Joe had seen the Toyota Camry was in a magazine which displayed the slogan "The best car in the world." The slogan is an example of . a. unfair advertising b. slander c. subliminal advertising d. puffery
d. puffery
91. (Scenario 43) The slogan for the spot, "Lightning Rod—The Finest Rod Ever Cast," would be considered by U.S. courts to be: a. a false and misleading statement, which needs to be retracted. b. a superlative, which must be provable. c. unethical, but not truly deceptive. d. puffery, which doesn't need to be proved or disproved.
d. puffery, which doesn't need to be proved or disproved.
89. (Scenario 4-2) The CEO of Purple Inc. stated that it's competitors sun glasses is nothing but a fake piece of plastic. This is an example of . a. spam b. puffery c. appropriation d. slander
d. slander
43. Stephen Fox, a history and social observer, concludes on the history of American advertisement as: a. genuine and trustworthy. b. simple and smart. c. irrelevant and incoherent. d. superficial and hedonistic.
d. superficial and hedonistic.
77. The biggest concern over the future of behavioral targeting involves its growing ability to: a. tap into confidential credit card databanks. b. jam global traffic with billions of unwanted emails. c. hack into sensitive government websites. d. track a person's movement on the Internet.
d. track a person's movement on the Internet.
