IMC Chapter 14
175) Although there are many disagreements about what is right and wrong, an overriding constant may be that ethical actions, moral correctness, and social responsibility all boil down to: A) common sense B) religious beliefs C) the legal system D) materialistic attitudes
) common sense
100) The law states that advertising to children cannot exceed 12 minutes per hour during weekdays. Which organization is responsible for making sure this time limit is not exceeded? A) Federal Communications Commission B) Federal Trade Commission C) Food and Drug Administration D) United States Postal Service
A) Federal Communications Commission
99) Public complaints about the amount of violence on television would be sent to the: A) Federal Communications Commission B) Food and Drug Administration C) Federal Trade Commission D) Bureau of Alcohol, Tobacco, and Firearms
A) Federal Communications Commission
102) The agency with the greatest degree of jurisdiction over marketing and advertising is the: A) Federal Trade Commission B) Federal Communications Commission C) United States Postal Service D) Food and Drug Administration
A) Federal Trade Commission
123) Occasionally, the Federal Trade Commission (FTC) bypasses the normal steps and uses the court system to stop an unfair or marketing practice. This occurs when: A) a company violates an FTC cease and desist order B) a full commission of the FTC is not available to hear a case C) a company violates a consent order D) a company appeals a consent order
A) a company violates an FTC cease and desist order
118) An administrative complaint is: A) a formal proceeding before an administrative law judge used by the Federal Trade Commission B) a formal hearing before the Court of Appeals C) a formal hearing before the full Federal Trade Commission D) used by the Advertising Self-Regulatory Council when the National Advertising Division cannot solve a complaint
A) a formal proceeding before an administrative law judge used by the Federal Trade Commission
179) In terms of ethical frameworks for reasoning, justice approach is: A) a method of decision making based on treating all people fairly and consistently B) the degree to which society values personal goals, personal autonomy, privacy over group loyalty, commitments to group norms, involvements in collective activities, social cohesiveness, and intense socialization C) a means of making decisions based on what is the greatest good for the greatest number of people D) a means of making decisions based on the belief that each person has fundamental rights, that should be respected and protected
A) a method of decision making based on treating all people fairly and consistently
162) When an organization creates an impression that it is a sponsor of a major event when it is not, it is: A) allusion marketing B) incidental marketing C) distractive marketing D) saturation marketing
A) allusion marketing
163) If Coca-Cola runs an advertisement that suggests the company sponsors the Super Bowl when it does not, which form of ambush marketing is being used? A) allusion marketing B) incidental marketing C) distractive marketing D) saturation marketing
A) allusion marketing
151) When a company creates a brand name that closely resembles a popular or successful brand, it is: A) brand infringement B) domain infringement C) domain squatting D) brand parity
A) brand infringement
133) The National Advertising Division (NAD) of the Council of Better Business Bureaus becomes involved in all of the following, except: A) cases of mail fraud B) collecting information about misleading advertising C) negotiating modification of ads deemed to be misleading D) dismissing unsubstantiated complaints about an advertisement
A) cases of mail fraud
120) In a Federal Trade Commission (FTC) case, if at the end of an administrative hearing the judge feels a violation of the law has taken place, the judge will issue a: A) cease and desist order B) consent agreement C) corrective advertising directive D) trade regulation ruling
A) cease and desist order
140) If the Advertising Self-Regulatory Council (ASRC) rules against an advertiser, it will issue an order that will be very similar to a: A) consent order of the Federal Trade Commission B) cease and desist order of the Federal Trade Commission C) corrective advertising order of the Federal Trade Commission D) judgment of the U.S. Court of Appeals
A) consent order of the Federal Trade Commission
158) Direct ambush marketing occurs when: A) firms intentionally design advertising or marketing campaigns to capitalize on a major sporting event B) a brand is associated with a major sporting event without any intentional or indirect effort on the part of the brand C) a brand suggests or hints it is associated with a major sporting event when it is not D) consumers are enticed to look at a product by individuals without the individuals realizing the person making the sales pitch is being paid or compensated by the brand
A) firms intentionally design advertising or marketing campaigns to capitalize on a major sporting event
171) In terms of a foundation and framework for ethical guidelines, hedonism: A) involves maximizing pleasure and minimizing pain B) offers a version of philosophy based on the Golden Rule, which means do unto others what you would have them do unto you C) involves balancing a variety of urges throughout a person's life D) offers guidelines regarding right and wrong as well as what is acceptable and what is not acceptable, within a geographic area
A) involves maximizing pleasure and minimizing pain
114) In terms of substantiation, if an advertiser uses expert endorsements, then statements in the advertisement must be based on: A) legitimate tests performed by experts in the field B) the opinion of "typical persons" who would use the product C) truthful statements that represent the experts personal experience D) lab or engineering tests
A) legitimate tests performed by experts in the field
127) The Federal Trade Commission orders corrective advertising in: A) only the most severe instances of deceptive and misleading advertising B) cases involving advertising to children C) cases that are appealed to the U.S. Court of Appeals D) most cases that are investigated
A) only the most severe instances of deceptive and misleading advertising
139) If the Advertising Self-Regulatory Council rules against an advertiser, it will: A) order the firm to discontinue the ad in a manner similar to the consent order of the Federal Trade Commission B) ask the firm to modify the ad or discontinue using it C) refer the case to the Federal Trade Commission (FTC) D) refer the case to the National Advertising Division (NAD)
A) order the firm to discontinue the ad in a manner similar to the consent order of the Federal Trade Commission
124) Occasionally, the Federal Trade Commission (FTC) bypasses the normal steps and uses the court system to stop an unfair or deceptive marketing practice. This occurs when: A) the actions of a company are so severe that immediate action is needed B) a full commission of the FTC is not available to hear a case C) a company violates a consent order D) a company appeals a consent order
A) the actions of a company are so severe that immediate action is needed
155) The rise in the use of ambush marketing can be attributed to: A) the increase in expenditures on sponsorships and the use of athletes as endorsers B) the increased usage of cause-related marketing C) a relaxation in ethical standards by society D) changes in regulatory policies of the Federal Trade Commission
A) the increase in expenditures on sponsorships and the use of athletes as endorsers
182) In terms of ethical frameworks for reasoning, making decisions based on what is the greatest good for the greatest number of people is: A) utilitarianism B) individualism C) the justice approach D) the rights approach
A) utilitarianism
184) The rights and needs of minorities would most likely be overlooked under which ethical framework? A) utilitarianism B) individualism C) the justice approach D) the rights approach
A) utilitarianism
142) The industry agency that monitors all forms of advertising directed toward children is the: A) National Advertising Division (NAD) B) Children's Advertising Review Unit (CARU) C) Federal Trade Commission (FTC) D) Council of Better Business Bureaus (CBBB)
B) Children's Advertising Review Unit (CARU)
125) Which agency has the authority to order corrective advertising? A) Federal Communications Commission B) Federal Trade Commission C) Food and Drug Administration D) Bureau of Alcohol, Tobacco, and Firearms
B) Federal Trade Commission
98) If a customer is concerned about the labeling on a bag of potato chips, the regulatory agency that should be contacted is the: A) Federal Communications Commission B) Food and Drug Administration C) Federal Trade Commission D) United States Postal Service
B) Food and Drug Administration
167) Incidental ambush marketing occurs when: A) firms intentionally design advertising or marketing campaigns to capitalize on a major sporting event B) a brand is associated with a major sporting event without any intentional or indirect effort on the part of the brand C) a brand suggests or hints it is associated with a major sporting event when it is not D) consumers are enticed to look at a product by individuals without the individuals realizing the person making the sales pitch is being paid or compensated by the brand
B) a brand is associated with a major sporting event without any intentional or indirect effort on the part of the brand
147) Concerns and criticisms regarding advertising include the following, except: A) advertising causes people to buy more than they can afford B) advertising leads to socialism C) advertising overemphasizes materialism D) advertising increases the costs of goods and services
B) advertising leads to socialism
156) A brand's attempt to associate itself with a team or event without buying the official rights to do so is: A) stealth marketing B) ambush marketing C) brand infringement D) puffery
B) ambush marketing
157) When a firm intentionally designs advertisements or marketing campaigns to capitalize on a major sporting event, such as the Olympics, it is: A) stealth marketing B) direct ambush marketing C) incidental ambush marketing D) indirect ambush marketing
B) direct ambush marketing
105) The following are components of the Wheeler-Lea Amendment to the FTC Act, except: A) expanded the authority of the FTC to prohibit false and misleading advertising practices B) granted the FTC power to monitor the amount of time television stations advertise to children C) gave the FTC power to levy fines when necessary D) granted the FTC access to the courts to enforce the law and ensure compliance with FTC rulings
B) granted the FTC power to monitor the amount of time television stations advertise to children
121) If after an administrative hearing a company is still not satisfied with the ruling of the Federal Trade Commission (FTC), the next step is to: A) appeal the decision to the Court of Appeals B) hold a hearing before the full FTC C) appeal the decision to the Supreme Court D) hold a hearing before an administrative law judge
B) hold a hearing before the full FTC
181) In terms of ethical frameworks for reasoning, the degree to which society values personal goals, personal autonomy, privacy over group loyalty, commitments to group norms, involvements in collective activities, social cohesiveness, and intense socialization is: A) utilitarianism B) individualism C) the justice approach D) the rights approach
B) individualism
185) Socialized medicine would be criticized the most under which of the following ethical guidelines? A) utilitarianism B) individualism C) the justice approach D) the rights approach
B) individualism
95) Skechers and Reebok paid fines for: A) using unsubstantiated puffery in advertisements B) making misleading claims in advertisements C) hiding the fact that the companies employed child laborers D) paying bribes to enter countries in Europe
B) making misleading claims in advertisements
174) In terms of a foundation and framework for ethical guidelines, most religions: A) involve maximizing pleasure and minimizing pain B) offer a version of philosophy based on the Golden Rule, which means do unto others what you would have them do unto you C) involve balancing a variety of urges throughout a person's life D) offer guidelines regarding right and wrong as well as what is acceptable and what is not acceptable, within a geographic area
B) offer a version of philosophy based on the Golden Rule, which means do unto others what you would have them do unto you
101) The Food and Drug Administration regulates and oversees: A) mailed marketing materials B) packaging and labeling of products, advertising on food products, and advertising of drugs C) television, radio, and the telephone industries D) the amount of time that television stations are permitted to advertise to children
B) packaging and labeling of products, advertising on food products, and advertising of drugs
104) The Wheeler-Lea Amendment to the FTC Act: A) regulates excessive advertising to children B) prohibits deceptive and misleading advertising C) prohibits puffery and comparative advertising D) sets the substantiation requirements that an ad must meet when claims are made about a product
B) prohibits deceptive and misleading advertising
134) Chase files a complaint with his local Better Business Bureau (BBB) about an advertisement he feels is misleading and deceptive. The BBB would: A) keep a copy of the complaint in the company's file for future use if someone asked about that particular company B) refer the complaint to the National Advertising Division C) refer the complaint to the National Advertising Review Board D) refer the complaint to the Federal Trade Commission
B) refer the complaint to the National Advertising Division
115) In terms of substantiation of claims in the advertisements, the Federal Trade Commission and courts tend to use each of the following principles, except: A) the federal government assumes consumers read ads "broadly" and do not notice details hidden in fine print B) tests have to be with the actual product or one that is considered similar C) evidence should come from individuals or companies that would be considered experts by others in the field D) the courts and FTC will consider the totality of evidence concerning a claim, not just one particular study that may support a claim
B) tests have to be with the actual product or one that is considered similar
177) In terms of ethical frameworks for reasoning, individualism is: A) a method of decision making based on treating all people fairly and consistently B) the degree to which society values personal goals, personal autonomy, privacy over group loyalty, commitments to group norms, involvements in collective activities, social cohesiveness, and intense socialization C) a means of making decisions based on what is the greatest good for the greatest number of people D) a means of making decisions based on the belief that each person has fundamental rights, that should be respected and protected
B) the degree to which society values personal goals, personal autonomy, privacy over group loyalty, commitments to group norms, involvements in collective activities, social cohesiveness, and intense socialization
190) A form of law present in many Islamic countries is: A) moral law B) theocratic law C) civil law D) common law
B) theocratic law
191) A form of law based on religious teachings is: A) moral law B) theocratic law C) civil law D) common law
B) theocratic law
131) If Megan wants to know if people have complained about a particular health club being unsafe or unclean, she should contact the: A) National Advertising Division (NAD) B) Federal Trade Commission (FTC) C) Council of Better Business Bureau (BBB) D) National Advertising Review Board (NARB)
C) Council of Better Business Bureau (BBB
141) If a case is appealed from the Advertising Self-Regulatory Council (ASRC), it would go to the: A) National Advertising Division (NAD) of the Council of Better Business Bureaus B) U.S. Court of Appeals C) Federal Trade Commission D) administrative board of the Council of Better Business Bureaus
C) Federal Trade Commission
137) An appeal of a decision by the National Advertising Division (NAD) goes to the: A) United States Court of Appeals B) Federal Trade Commission C) National Advertising Review Board D) Federal Communications Commission
C) National Advertising Review Board
161) Indirect ambush marketing occurs when: A) firms intentionally design advertising or marketing campaigns to capitalize on a major sporting event B) a brand is associated with a major sporting event without any intentional or indirect effort on the part of the brand C) a brand suggests or hints it is associated with a major sporting event when it is not D) consumers are enticed to look at a product by individuals without the individuals realizing the person making the sales pitch is being paid or compensated by the brand
C) a brand suggests or hints it is associated with a major sporting event when it is not
122) Company leaders that are not satisfied with the ruling of the full Federal Trade Commission (FTC) can appeal to the U.S. Court of Appeals. The danger in appealing to the Court of Appeals is: A) the company does not have the opportunity to present oral arguments B) the cease and desist orders are normally upheld C) a company may be ordered to pay civil penalties D) the decision is not binding
C) a company may be ordered to pay civil penalties
176) In terms of ethical frameworks for reasoning, utilitarianism is: A) a method of decision making based on treating all people fairly and consistently B) the degree to which society values personal goals, personal autonomy, privacy over group loyalty, commitments to group norms, involvements in collective activities, social cohesiveness, and intense socialization C) a means of making decisions based on what is the greatest good for the greatest number of people D) a means of making decisions based on the belief that each person has fundamental rights that
C) a means of making decisions based on what is the greatest good for the greatest number of people
106) An advertisement or communication is deemed to be deceptive or misleading when: A) the misrepresentation induces anyone to make a purchase B) a substantial number of people make a purchase C) a substantial number of people or the "typical person" is left with a false impression or misrepresentation that relates to the product D) a competing firm makes the same claim
C) a substantial number of people or the "typical person" is left with a false impression or misrepresentation that relates to the product
128) A trade regulatory ruling by the Federal Trade Commission applies to: A) wholesalers B) international companies C) an industry D) retailers
C) an industry
188) A form of law based on a broad set of legal principles and where decisions are made based on legal codes that have been written over time is: A) moral law B) theocratic law C) civil law D) common law
C) civil law
189) A form of law present in many European countries is: A) moral law B) theocratic law C) civil law D) common law
C) civil law
135) If a business files a complaint with the National Advertising Division (NAD) of the Council of Better Business Bureaus claiming that one of its competitors has unfairly and deceptively depicted the business in an ad, the NAD will: A) issue a cease and desist order if it finds the ad is indeed deceptive and misleading B) investigate the ad to determine if the FTC Act has been violated C) collect information and evaluate data concerning the complaint to determine if the advertiser's claims can be substantiated. D) refer the case to the Federal Trade Commission since it involves a business filing the complaint
C) collect information and evaluate data concerning the complaint to determine if the advertiser's claims can be substantiated.
112) The substantiation test for false and misleading advertising requires: A) scientific tests B) consumer testimonials C) competent and reliable evidence D) the average person to be convinced it is not false and misleading
C) competent and reliable evidence
117) In terms of a judgment by the Federal Trade Commission against a company for false or misleading advertising, which of the following would come first? A) administrative complaint B) cease and desist order C) consent order D) court-ordered reparations
C) consent order
113) The Federal Trade Commission (FTC) test of substantiation requires: A) a comparison of marketing claims made by competing firms B) the use of a code of ethics C) data, facts, or competent and reliable evidence D) testimony from an expert in the field
C) data, facts, or competent and reliable evidence
164) When a company designs a promotion or event near a major sporting event to capitalize on the attendees to the event without being an official sponsor, it is: A) allusion marketing B) incidental marketing C) distractive marketing D) saturation marketing
C) distractive marketing
152) The practice of purchasing Internet domains that are valuable to other people, companies, or organizations is: A) brand infringement B) domain infringement C) domain squatting D) brand parity
C) domain squatting
103) The original role of the Federal Trade Commission (FTC) was to: A) provide protection for consumers from big businesses B) oversee the marketing industry C) enforce antitrust laws and protect businesses from one another D) regulate advertising and marketing communications
C) enforce antitrust laws and protect businesses from one another
169) In terms of foundations and frameworks for ethical guidelines, the philosophy of life that believes in maximizing pleasure and minimizing pain is: A) utilitarianism B) individualism C) hedonism D) homeostasis
C) hedonism
166) When a brand is associated with a major sporting event, such as the Olympics, without any intentional or indirect effort on the brand's part, it is: A) stealth marketing B) direct ambush marketing C) incidental ambush marketing D) indirect ambush marketing
C) incidental ambush marketing
172) In terms of a foundation and framework for ethical guidelines, homeostasis: A) involves maximizing pleasure and minimizing pain B) offers a version of philosophy based on the Golden Rule, which means do unto others what you would have them do unto you C) involves balancing a variety of urges throughout a person's life D) offers guidelines regarding right and wrong as well as what is acceptable and what is not acceptable, within a geographic area
C) involves balancing a variety of urges throughout a person's life
146) Ethics are: A) beliefs or principles that individuals hold concerning what is right and what is wrong B) moral principles that individuals hold concerning what is right and what is wrong C) moral principles that serve as guidelines for both individuals and organizations D) beliefs or principles that serve as guidelines for both individuals and organizations
C) moral principles that serve as guidelines for both individuals and organizations
154) From a company's perspective, the primary benefit of using computer cookies is it allows the marketing team to: A) gather information about where a consumer has been on the company's website, how long they were there, and what they did B) know what other sites a person has visited on the Internet C) prepare specific marketing messages and e-mails to consumers based on their browsing behavior D) know who has visited the company's website
C) prepare specific marketing messages and e-mails to consumers based on their browsing behavior
109) When McDonald's makes an advertising claim that the company offers the best-tasting hamburgers, the practice is known as: A) a code of ethics violation B) misleading and deceptive advertising C) puffery D) cross-promotions
C) puffery
110) The Federal Trade Commission, National Advertising Division, and the courts would consider the word "better" used in an advertisement to be: A) deceptive and misleading advertising B) puffery C) puffery, but it also implies a comparison, which if challenged may require substantiation D) a violation of the Federal Trade Commission Act
C) puffery, but it also implies a comparison, which if challenged may require substantiation
180) In terms of ethical frameworks for reasoning, a method of decision making based on treating all people fairly and consistently is: A) utilitarianism B) individualism C) the justice approach D) the rights approach
C) the justice approach
144) In addition to handling complaints about advertising to children, which agency also prescreens ads directed to children? A) Advertising Self-Regulatory Council B) Federal Communications Commission C) National Advertising Division D) Children's Advertising Review Unit
D) Children's Advertising Review Unit
143) Which industry agency monitors online privacy practices of websites that involve children younger than 13 years of age? A) Advertising Self-Regulatory Council (ASRC) B) Federal Communications Commission (FCC) C) National Advertising Division (NAD) D) Children's Advertising Review Unit (CARU)
D) Children's Advertising Review Unit (CARU)
96) The agency that would be concerned with the salt content in foods would be the: A) Federal Trade Commission B) Federal Communications Commission C) United States Postal Service D) Food and Drug Administration
D) Food and Drug Administration
97) The agency that monitors advertising on food packages and advertisements for medicines is the: A) Federal Trade Commission B) Federal Communications Commission C) United States Postal Service D) Food and Drug Administration
D) Food and Drug Administration
111) Of the following taglines or slogans, which would most likely trigger an investigation by the Federal Trade Commission or National Advertising Division? A) For the finest Asian food come to China Garden B) Eat at Wendy's, the best hamburgers in town C) Tree Top apple juice is twice as good D) For better looking skin, use Avon
D) For better looking skin, use Avon
150) Which statement below about the advertising of underwear, sexually-related products, feminine hygiene products, and male enhancement products is FALSE? A) In Islamic countries, the advertising of personal hygiene and sexually-related products would be highly offensive. B) It is important for marketing professionals to create advertisements that are not offensive. C) The use of nudity and sexuality featuring teens and children has been highly criticized. D) In recent years, there has been a decline in sensitivity towards child molestation, child pornography, and related sexual issues.
D) In recent years, there has been a decline in sensitivity towards child molestation, child pornography, and related sexual issues.
178) In terms of ethical frameworks for reasoning, the rights approach is: A) a method of decision making based on treating all people fairly and consistently B) the degree to which society values personal goals, personal autonomy, privacy over group loyalty, commitments to group norms, involvements in collective activities, social cohesiveness, and intense socialization C) a means of making decisions based on what is the greatest good for the greatest number of people D) a means of making decisions based on the belief that each person has fundamental rights, that should be respected and protected
D) a means of making decisions based on the belief that each person has fundamental rights, that should be respected and protected
153) Although giving or receiving bribes in business-to-business interactions is illegal in the United States, in some countries, such as France and Germany, bribes are: A) permitted for international firms doing business in France or Germany B) permitted for French- or German-owned companies C) accepted if it involves a contract with the government, but not allowed for companies doing business with each other D) accepted, and companies may even be able to deduct them as business expenses on their taxes
D) accepted, and companies may even be able to deduct them as business expenses on their taxes
119) If a consent agreement cannot be reached with a company, the Federal Trade Commission (FTC) would then issue a(n): A) cease and desist order B) corrective advertising directive C) appeal to the Court of Appeals D) administrative complaint
D) administrative complaint
183) In terms of ethical frameworks for reasoning, making decisions based on the belief that each person has fundamental rights that should be respected and protected is: A) utilitarianism B) individualism C) the justice approach D) the rights approach
D) the rights approach
148) Concerns and criticisms regarding advertising include the following, except: A) advertising to children is unethical B) advertising is often offensive C) advertising perpetuates stereotyping of males, females, and minority groups D) advertising leads to greater levels of governmental regulation
D) advertising leads to greater levels of governmental regulation
138) The Advertising Self-Regulatory Council (ASRC) of the Council of Better Business Bureau is composed of: A) consumers and legal experts on advertising law B) judges and law professors from various universities C) advertising professionals and CEOs of major corporations D) advertising professionals and civic individuals
D) advertising professionals and civic individuals
107) Puffery is: A) a deliberate attempt to mislead and deceive B) any illegal marketing activity C) increased product prices to cover advertising costs D) an exaggerated claim with no overt attempt to mislead or deceive
D) an exaggerated claim with no overt attempt to mislead or deceive
136) If the National Advertising Division (NAD) finds an advertisement has not been properly substantiated, the NAD normally will: A) issue a consent order B) issue a cease and desist order C) refer the case to the FTC for regulatory action D) ask the advertiser to modify the ad or discontinue using the ad
D) ask the advertiser to modify the ad or discontinue using the ad
132) If Isabelle contacted a local Better Business Bureau about a particular landscaping service, she would receive a: A) detailed report of all complaints filed against the company B) report about any complaints that were filed against the company by individuals C) copy of all communications the BBB had with the particular firm D) carefully worded report about any complaints that have been filed with the BBB against the company
D) carefully worded report about any complaints that have been filed with the BBB against the company
186) The United States and many Western countries use the form of law known as: A) moral law B) theocratic law C) civil law D) common law
D) common law
187) A form of law based on local customs, traditions, and precedents is: A) moral law B) theocratic law C) civil law D) common law
D) common law
116) When the Federal Trade Commission (FTC) insists that a company stop making a false claim in an advertisement and that company agrees to stop, it is an example of a(n): A) legal review B) cease and desist order C) administrative complaint D) consent order
D) consent order
168) Stealth marketing occurs when: A) firms intentionally design advertising or marketing campaigns to capitalize on a major sporting event B) a brand is associated with a major sporting event without any intentional or indirect effort on the part of the brand C) a brand suggests or hints it is associated with a major sporting event when it is not D) consumers are enticed to look at a product by individuals without the individuals realizing the person making the sales pitch is being paid or compensated by the brand
D) consumers are enticed to look at a product by individuals without the individuals realizing the person making the sales pitch is being paid or compensated by the brand
126) When a company must pay for ads that refute false claims it had made in previous ads, it is called a(n): A) consent order B) administrative ruling C) cease and desist order D) corrective advertisement
D) corrective advertisement
170) In terms of foundations and frameworks for ethical guidelines, the philosophy of life that believes in a balance of a variety of urges throughout life is: A) utilitarianism B) individualism C) hedonism D) homeostasis
D) homeostasis
159) If a firm suggests or hints it is associated with a major sporting event, such as the Olympics, when it is not, it is: A) stealth marketing B) direct ambush marketing C) incidental ambush marketing D) indirect ambush marketing
D) indirect ambush marketing
160) Pepsi creates an advertisement suggesting it sponsors the U.S. Olympic basketball team by showing a basketball game in a commercial. This is a form of: A) stealth marketing B) direct ambush marketing C) incidental ambush marketing D) indirect ambush marketing
D) indirect ambush marketing
145) The advantages of using industry-based agencies to resolve advertising complaints rather than the governmental agencies, such as the FTC, include the following, except: A) cases are normally heard sooner and at a lower cost B) the disputes are resolved quicker and are seldom referred to the Federal Trade Commission C) cases are heard by judges with experience in handling advertising cases D) it does not involve any civil penalties and no legal action can be taken
D) it does not involve any civil penalties and no legal action can be taken
173) In terms of a foundation and framework for ethical guidelines, the law: A) involves maximizing pleasure and minimizing pain B) offers a version of philosophy based on the Golden Rule, which means do unto others what you would have them do unto you C) involves balancing a variety of urges throughout a person's life D) offers guidelines regarding right and wrong as well as what is acceptable and what is not acceptable, within a geographic area
D) offers guidelines regarding right and wrong as well as what is acceptable and what is not acceptable, within a geographic area
108) Words such as "best," "greatest," and "finest" used in advertising are examples of: A) deceptive advertising B) misleading advertising C) standard industry practices D) puffery
D) puffery
165) When a company increases its advertising and marketing during a major event, such as the Olympics, to capitalize on individuals watching the event, yet is not an official sponsor, it is: A) allusion marketing B) incidental marketing C) distractive marketing D) saturation marketing
D) saturation marketing
149) Critics of the beer industry and marketers agree on the following statements about alcohol and underage individuals, except A) many beer commercials encourage underage drinking B) many beer commercials encourage brand loyalty or brand switching to a population that should not even be drinking C) the use of sex and humor in beer ads has made alcohol appealing to underage individuals D) the public service announcements do discourage underage drinking
D) the public service announcements do discourage underage drinking
129) The funeral industry was sanctioned by the Federal Trade Commission (FTC) in 1984 and 1994 for practices common in the industry. To correct these misleading practices, the FTC would issue a: A) cease and desist order B) consent order C) corrective advertising order D) trade regulation ruling
D) trade regulation ruling
130) Recently the FTC investigated bloggers who were being sponsored to pitch products. The FTC ruled that the blogger must disclose any type of compensation that is being received. This is an example of a: A) cease and desist order B) consent order C) corrective advertising order D) trade regulation ruling
D) trade regulation ruling
