Advertising and IMC Principles and Practice 10th Edition By Moriarty - Test Bank

Advertising & IMC: Principles and Practice, 10e (Moriarty) Chapter 3 Brand Communication and Society 1) ________ results when an external message drives people to feel a need or want to buy a product. A) Demand creation B) Direct marketing C) Social marketing D) Cause marketing E) Mission marketing Answer: A Difficulty: Easy Chapter LO: 3-1 Course LO: Identify and analyze the major social criticisms of marketing 2) The question of whether advertising creates social values rather than merely reflecting them is known as the ________. A) social-versus-economic debate B) competitive-versus-market power debate C) personal-versus-corporate debate D) personal-versus-social debate E) shape-versus-mirror debate Answer: E Difficulty: Moderate Chapter LO: 3-1 Course LO: Identify and analyze the major social criticisms of marketing 3) A ________ is a representation of a cultural group that emphasizes a trait or group of traits that may or may not communicate an accurate representation of the group. A) norm B) reference group C) symbol D) mean E) stereotype Answer: E Difficulty: Easy Chapter LO: 3-1 Course LO: Identify and analyze the major social criticisms of marketing AACSB: Ethical understanding and reasoning 4) Which of the following states a message that is untrue? A) puffery B) comparative advertising C) image advertising D) product demonstrations E) false advertising Answer: E Difficulty: Easy Chapter LO: 3-1 Course LO: Identify and analyze the major social criticisms of marketing AACSB: Ethical understanding and reasoning 5) Which of the following is a term that describes what happens when Western culture is imposed on others? A) marketing imposition B) cultural imposition C) cultural imperialism D) demand creation E) marketing elitism Answer: C Difficulty: Easy Chapter LO: 3-1 Course LO: Identify and analyze the major social criticisms of marketing 6) Some Asian and Middle Eastern countries are critical of what they see as America's materialism and disrespectful behavior toward women and elders and are worried that advertising will encourage their young people to adopt these viewpoints. It is most accurate to say that these countries are concerned about ________. A) marketing ethics B) deceptive advertising C) social decline D) social responsibility E) marketing imperialism Answer: E Difficulty: Moderate Chapter LO: 3-1 Course LO: Identify and analyze the major social criticisms of marketing 7) ________ refers to advertising or other sales representations that praise the item to be sold with subjective opinions, superlatives, or exaggerations, stating no specific facts. A) Puffery B) Manipulative advertising C) Deceptive advertising D) Comparative advertising E) Endorsement Answer: A Difficulty: Easy Chapter LO: 3-1 Course LO: Identify and analyze the major social criticisms of marketing AACSB: Ethical understanding and reasoning 8) Which of the following is true regarding customs? A) Customs can be stronger than laws. B) Customs are easily identified and explained. C) Customs are basically the same around the world. D) Customs have little impact on the effectiveness of advertising. E) Only natives of a culture can ever understand local customs. Answer: A Difficulty: Moderate Chapter LO: 3-1 Course LO: Identify and analyze the major social criticisms of marketing 9) Which of the following does NOT describe a claim that uses puffery? A) a claim that is obviously exaggerated B) a claim supported by a set of facts C) a claim that is vague D) a claim supported by subjective opinions E) a claim that can't be proven or disproven Answer: B Difficulty: Moderate Chapter LO: 3-1 Course LO: Identify and analyze the major social criticisms of marketing AACSB: Ethical understanding and reasoning 10) Advertisements for which of the following types of products are most heavily criticized for using misleading claims? A) automobiles B) weight loss products C) travel packages D) over-the-counter medicines E) snack foods Answer: B Difficulty: Moderate Chapter LO: 3-1 Course LO: Identify and analyze the major social criticisms of marketing AACSB: Ethical understanding and reasoning 11) Under U.S. law, businesses can seek damages from a competitor who misrepresents the nature, characteristics, qualities, or geographic origin of the company's product in ________. A) puffery B) mission advertising C) demand creation D) comparative advertising E) claim advertising Answer: D Difficulty: Moderate Chapter LO: 3-1 Course LO: Identify and analyze the major social criticisms of marketing AACSB: Ethical understanding and reasoning 12) According to U.S. law, which of the following is NOT an element a company/plaintiff is required to prove to win a false advertising lawsuit about an ad containing a comparative claim? A) False statements have been made about either product. B) The ads actually deceived or had the tendency to deceive a substantial segment of the audience. C) The offending advertiser intended to damage the complaining company's business. D) The deception was "material" and likely to influence purchasing decisions. E) Falsely advertised goods are sold in interstate commerce. Answer: C Difficulty: Difficult Chapter LO: 3-1 Course LO: Identify and analyze the major social criticisms of marketing AACSB: Ethical understanding and reasoning 13) A(n) ________ is any advertising message that consumers believe reflects the opinions, beliefs, or experiences of an individual, group, or institution. A) endorsement B) comparative ad C) puffed ad D) one-sided message E) two-sided message Answer: A Difficulty: Easy Chapter LO: 3-1 Course LO: Describe the steps involved in developing an advertising campaign AACSB: Written and oral communication 14) A company that pays bloggers to pose as customers and post customer reviews online is using ________. A) green marketing B) cause marketing C) shockvertising D) flogging E) networking Answer: D Difficulty: Moderate Chapter LO: 3-1 Course LO: Identify and analyze the major social criticisms of marketing AACSB: Ethical understanding and reasoning 15) Which of the following prohibits consumers from taking cash from manufacturers, suppliers, or their representatives for making recommendations, reviews, or endorsements, unless full disclosure is provided? A) the Word of Mouth Marketing Association's ethics code B) the Council of Better Business Bureaus C) the American Association of Advertising Agencies' Creative Code D) the TARES Test of Ethical Advertising E) the Federal Trade Commission Answer: A Difficulty: Moderate Chapter LO: 3-1 Course LO: Identify and analyze the major social criticisms of marketing AACSB: Ethical understanding and reasoning 16) Verbal or written words in an advertisement that indicate exceptions to the advertising claim made are known as ________. A) ethics B) puffs C) endorsements D) testimonials E) disclaimers Answer: E Difficulty: Moderate Chapter LO: 3-1 Course LO: Identify and analyze the major social criticisms of marketing 17) The main concern the FTC has when an advertiser makes substitutes for products during a demonstration (such as using a mixture of glue and water instead of ice cream) is whether the ________. A) substitution is necessary B) demonstration uses puffery C) advertiser indicates that substitutes are used in the demonstration D) consumer knows substitutes are used in the demonstration E) demonstration falsely upgrades the consumers' perception of the advertised brand Answer: E Difficulty: Difficult Chapter LO: 3-1 Course LO: Identify and analyze the major social criticisms of marketing AACSB: Ethical understanding and reasoning 18) Cigarette advertising on ________ has been banned since 1971. A) radio only B) television only C) the Internet only D) radio and television only E) radio, television, and the Internet Answer: D Difficulty: Moderate Chapter LO: 3-1 Course LO: Identify and analyze the major social criticisms of marketing 19) Which of the following is NOT an element of the FDA's 1996 restrictions on tobacco advertising? A) a ban on all in-store advertising located within 1,000 feet of a school B) a ban on outdoor ads within 1,000 feet of a school C) ads limited to black-and-white, text only, in magazines with 55 percent readership under the age of 18 D) $150 million provided to fund antismoking ads targeting children E) a ban on outdoor ads within 1,000 feet of a playground Answer: A Difficulty: Difficult Chapter LO: 3-1 Course LO: Identify and analyze the major social criticisms of marketing 20) Which of the following best explains why the amount of prescription drug advertising has increased since 1997? A) The American Medical Association approved the use of advertising to promote prescription drugs. B) The federal government loosened its controls on the production of prescription drugs. C) Pharmaceutical companies realized that a pull strategy would be more effective than a push strategy. D) The federal government loosened its controls on pharmaceutical advertising. E) Patents held by many pharmaceutical companies expired, resulting in price competition and heavy advertising. Answer: D Difficulty: Difficult Chapter LO: 3-1 Course LO: Identify and analyze the major social criticisms of marketing 21) Which of the following refers to the ethically questionable practice of companies paying or providing incentives for bloggers to post positive comments about products? A) blogola B) puffery C) comparative advertising D) commercial speech E) substantiated claims Answer: A Difficulty: Easy Chapter LO: 3-1 Course LO: Identify and analyze the major social criticisms of marketing AACSB: Ethical understanding and reasoning 22) As a part of new health care reform efforts, the United States government now requires health insurance companies to ________. A) discontinue broadcast advertising B) discontinue direct advertising C) provide coverage for brand name medications only D) provide coverage for generic medications only E) spend at least 80% of the premiums they receive on medical care, not other costs such as advertising Answer: E Difficulty: Moderate Chapter LO: 3-1 Course LO: Identify and analyze the major social criticisms of marketing 23) ________ are the "shoulds" and "oughts" of behavior. A) Missions B) Ethics C) Regulations D) Customs E) Traditions Answer: B Difficulty: Easy Chapter LO: 3-2 Course LO: Identify and analyze the major social criticisms of marketing AACSB: Ethical understanding and reasoning 24) ________ are frameworks for right actions and are primarily the domain of religion and philosophy. A) Missions B) Ethics C) Morals D) Customs E) Traditions Answer: C Difficulty: Easy Chapter LO: 3-2 Course LO: Identify and analyze the major social criticisms of marketing AACSB: Ethical understanding and reasoning 25) Personal judgment and moral reasoning rest on ________. A) explicit laws governing practice B) membership in a professional association C) an understanding of the law D) a sense of right and wrong E) a code of standards Answer: D Difficulty: Moderate Chapter LO: 3-2 Course LO: Identify and analyze the major social criticisms of marketing AACSB: Ethical understanding and reasoning 26) Many professions write a code of ________ to help guide practitioners toward ethical behavior. A) morals B) ethics C) laws D) regulations E) missions Answer: B Difficulty: Easy Chapter LO: 3-2 Course LO: Identify and analyze the major social criticisms of marketing AACSB: Ethical understanding and reasoning 27) Which of the following codes is designed to help marketers and advertising specialists create transparent advertising in a fair, honest, and forthright manner? A) FTC Improvement Act B) Principles and Practices for Advertising Ethics C) The Distilled Spirits Council Model D) National Advertising Review Board Rules E) Better Business Bureau of Practices Answer: B Difficulty: Moderate Chapter LO: 3-2 Course LO: Identify and analyze the major social criticisms of marketing AACSB: Ethical understanding and reasoning 28) A is an example of a(n) ________. A) professional advertising association B) anti-consumerist organization C) regulatory government agency D) public relations agency E) advertising institute Answer: B Difficulty: Moderate Chapter LO: 3-2 Course LO: Identify and analyze the major social criticisms of marketing 29) Which of the following organizations monitors and regulates direct-mail advertising material such as personal loan and credit card offers? A) U.S. Patent and Trademark Office B) States' Attorney Generals C) U.S. Postal Service D) FCC E) FDA Answer: C Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 30) Unfair methods of competition in commerce were declared unlawful by the ________. A) 1906 Pure Food and Drug Act B) 1914 Federal Trade Commission Act C) 1938 Wheeler-Lea Amendment D) 1946 Lanham Act E) 1980 FTC Improvement Act Answer: B Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 31) The FTC's policy on ________relies on the likelihood that the advertisement is misleading, the reasonability of the consumer's interpretation, and the probability of material injury. A) puffery B) comparative advertising C) competitive advertising D) deceptive advertising E) corrective advertising Answer: D Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Ethical understanding and reasoning 32) Government oversight responsibility with respect to advertising includes ________. A) professional discipline B) self-regulation C) laws and regulations D) right to refuse E) community group regulation Answer: C Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 33) Which of the following gives the House of Representatives and the Senate joint veto power over FTC regulations? A) 1980 FTC Improvement Act B) 1938 Wheeler-Lea Amendment C) 1946 Lanham Act D) 1906 Pure Food and Drug Act E) 1975 Magnuson-Moss Warranty/FTC Improvement Act Answer: A Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 34) According to the Supreme Court, commercial speech could be restricted for all of the following reasons EXCEPT which one? A) It is untruthful. B) It is harmful to the public. C) It is deceptive. D) It makes a political statement. E) It is misleading. Answer: D Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Ethical understanding and reasoning 35) The ________ prohibits unfair and deceptive acts and practices regardless of whether the competition is injured. A) Lanham Act B) Wheeler-Lea Amendment C) National Advertising Review Council D) Pure Food and Drug Act E) Magnuson-Moss Warranty Answer: B Difficulty: Difficult Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Ethical understanding and reasoning 36) A brand, a corporate or store name, or a distinctive symbol that identifies the seller's brand and thus differentiates it from the brands of other sellers is called a ________. A) trademark B) copyright C) logo D) patent E) brand name Answer: A Difficulty: Easy Chapter LO: 3-3 Course LO: Describe the fundamental concepts of marketing 37) Which of the following is true regarding a trademark? A) It gives an organization the exclusive right to use or reproduce original work, such as an advertisement or package design, for a period of time. B) Controls for protection are provided by the Library of Congress. C) The Department of Labor protects unique trademarks from infringement by competitors. D) It identifies the seller's brand and differentiates it from the brands of other sellers. E) It must be registered with the Federal Trade Commission, which gives the organization exclusive use of the mark, as long as the trademark is maintained as an identification for a specific product. Answer: D Difficulty: Moderate Chapter LO: 3-3 Course LO: Describe the fundamental concepts of marketing 38) Under which of the following are unique trademarks protected from infringement by competitors? A) Pure Food and Drug Act B) Wheeler-Lea Amendment C) Lanham Act D) Federal Trade Commission Act E) FTC Improvement Act Answer: C Difficulty: Difficult Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 39) A recent trademark issue is protection for URLs, which are ________. A) patents B) trademarks C) Internet domain names D) self-regulating agencies E) consumer-interest groups Answer: C Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Information technology 40) A ________ gives an organization the exclusive right to use or reproduce original work, such as an advertisement or package design, for a specified period of time. A) trademark B) servicemark C) copyright D) patent E) brand name Answer: C Difficulty: Easy Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 41) Which of the following CANNOT be copyrighted? A) an advertisement B) an idea C) a package design D) an illustration E) a photograph Answer: B Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 42) Which of the following gave the FTC the authority to provide consumers methods for seeking redress or restitution for deceptive marketing practices? A) Federal Trade Commission Act B) Telemarketing and Consumer Fraud Act and Abuse Protection Act C) Magnuson-Moss Warranty/FTC Improvement Act D) Wheeler-Lea Amendment E) 1980 Supreme Court ruling on Central Hudson Gas and Electric v. Public Service Commission of New York Answer: C Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Ethical understanding and reasoning 43) The most basic federal law that governs advertising is the ________ Amendment to the U.S. Constitution. A) First B) Second C) Third D) Fourth E) Fifth Answer: A Difficulty: Easy Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 44) Which Amendment to the U.S. Constitution states that Congress shall make no law "abridging the freedom of speech or of the press"? A) First B) Second C) Third D) Fourth E) Fifth Answer: A Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 45) ________ speech is speech that promotes buying and/or selling products. A) Political B) Free C) Unregulated D) Commercial E) Regulated Answer: D Difficulty: Easy Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 46) In which case did the Supreme Court establish a test that determines to what extent the government can restrict advertising? A) Valentine v. Chrestensen (1942) B) Virginia State Board of Pharmacy v. Virginia Citizens Consumer Council (1976) C) Central Hudson Gas & Electric Corporation v. Public Service Commission of New York (1980) D) Cincinnati v. Discovery Network (1993) E) 44 Liquormart, Inc. v. Rhode Island (1995) Answer: C Difficulty: Difficult Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 47) ________ advertising features a product other than the primary, and usually controversial, product. A) Deceptive B) Unfair C) Comparative D) Injurious E) Indirect Answer: E Difficulty: Easy Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 48) What is the primary agency governing marketing communications? A) FCC B) FTC C) FDA D) National Advertising Review Council E) National Advertising Division Answer: B Difficulty: Easy Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 49) Which federal agency oversees package labeling, ingredient listing, and advertising for food and drugs? A) Federal Trade Commission B) Food and Drug Administration C) Federal Communications Commission D) Bureau of Alcohol, Tobacco, and Firearms E) National Advertising Division Answer: B Difficulty: Easy Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 50) Which federal agency was formed to protect the public interest in radio and television broadcast communications? A) Federal Trade Commission B) Food and Drug Administration C) Federal Communications Commission D) Bureau of Alcohol, Tobacco, and Firearms E) National Advertising Division Answer: C Difficulty: Easy Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 51) The Federal Communications Commission (FCC) can take action against ________. A) the media B) advertisers C) advertising agencies D) manufacturers E) suppliers Answer: A Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 52) Which of the following federal agencies has control over lotteries and mail fraud? A) U.S. Postal Service B) FCC C) FDA D) U.S. Patent and Trademark Office E) Library of Congress Answer: A Difficulty: Easy Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 53) Which of the following does NOT have governmental authority concerning some form of advertising regulation? A) Bureau of Alcohol, Tobacco, and Firearms B) Federal Communications Commission C) U.S. Postal Service D) National Advertising Division E) Food and Drug Administration Answer: D Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 54) Which of the following was NOT required by the Children's Television Advertising Practice Act of 1990? A) a 10.5-minute-per-hour ceiling for commercials in children's weekend television programming B) three hours of children's educational shows aired by all TV stations each week C) commercial breaks that are clearly distinguished from programming D) prohibiting the use of children's program characters to promote products in commercials E) a 12-minute-per-hour limit for commercials in children's weekday television programming Answer: B Difficulty: Difficult Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 55) Which of the following was the agreement reached in 1996 between broadcasters, children's advocates, and the federal government? A) limiting advertising to 10 minutes per hour in children's weekend television programming B) limiting advertising to 12.5 minutes per hour in children's weekday television programming C) limiting advertising to 10 minutes per hour in all children's television programming D) requiring all TV stations to air three hours of children's educational shows a week E) banning all advertising during children's television programming Answer: D Difficulty: Difficult Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 56) Advertising intended to mislead consumers by making claims that are false or by failure to make full disclosure of important facts, or both, is called ________. A) puff advertising B) indirect advertising C) deceptive advertising D) unsubstantiated advertising E) injurious advertising Answer: C Difficulty: Easy Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Ethical understanding and reasoning 57) For an advertisement to be ruled deceptive, the deception must influence consumers' decision making about products and services, which is known as ________. A) misdirection B) puffery C) material injury D) substantiation E) double jeopardy Answer: C Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Ethical understanding and reasoning 58) Which of the following is NOT considered by the FTC when determining the reasonableness of a claim in an advertisement? A) type and specificity of claim made B) type of product C) possible consequences of a false claim D) degree of reliance on the claims by consumers E) price of the product Answer: E Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Ethical understanding and reasoning 59) A ________ is the first step in the regulation process after the FTC determines that an ad is deceptive. A) consent decree B) cease-and-desist order C) corrective advertising campaign D) consumer redress order E) deposition Answer: A Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 60) Which of the following is NOT an FTC course of action for deception and unfair advertising? A) consent decrees B) cease-and-desist orders C) incarceration D) corrective advertising E) consumer redress Answer: C Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Ethical understanding and reasoning 61) Which of the following statements regarding cease-and-desist orders issued by the Federal Trade Commission is FALSE? A) A cease-and-desist order requires that the deceptive or unfair practice by a business be stopped. B) An advertiser accused of using deceptive advertising is entitled to legal representation in front of the presiding judge. C) An advertiser can appeal the order to a full five-member commission. D) A cease-and-desist order is the first step in the regulation process after the FTC determines that an ad is deceptive. E) The process leading to the issuance of a cease-and-desist order is similar to a court trial. Answer: D Difficulty: Difficult Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 62) Which of the following is the landmark corrective advertising case? A) Valentine v. Chrestensen B) Warner-Lambert v. FTC C) 44 Liquormart, Inc. v FTC D) Nike v. FTC E) Cincinnati v. Discovery Network Answer: B Difficulty: Difficult Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 63) Which type of self-regulation occurs when an organization, such as an advertising agency, develops, uses, and enforces norms within its own practices? A) industry self-regulation B) self-discipline C) social ethics D) self-regulation by public groups E) personal ethics Answer: B Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Ethical understanding and reasoning 64) Several companies, such as AT&T, General Foods, and Colgate-Palmolive, have their own codes of behavior and criteria that determine whether advertisements are acceptable. Which type of self-regulation is this? A) industry self-regulation B) self-discipline C) self-regulation by public groups D) personal ethics E) social ethics Answer: B Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Ethical understanding and reasoning 65) When an industry develops, uses, and enforces norms, this is known as which type of self-regulation? A) industry self-regulation B) self-discipline C) social ethics D) professional ethics E) personal ethics Answer: A Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Ethical understanding and reasoning 66) In 1971, what organization did several professional advertising associations, in conjunction with the Council of Better Business Bureaus, establish to negotiate voluntary withdrawal of national advertising that professionals consider deceptive? A) Public Citizen B) American Legacy Foundation C) American Association of Advertising Agencies D) National Advertising Review Council E) American Advertising Federation Answer: D Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Ethical understanding and reasoning 67) The two operating arms of the Advertising Self-Regulatory Council are the ________. A) NAD and the NARB B) NAD and the AAAA C) AAF and the AAAA D) FTC and the FCC E) FTC and the NAD Answer: A Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 68) Which arm of the National Advertising Review Council is made up of people from the field of advertising who evaluate complaints submitted by consumers, consumer groups, industrial organizations, and advertising firms? A) National Advertising Division (NAD) B) National Advertising Review Board (NARB) C) American Association of Advertising Agencies (AAAA) D) Federal Trade Commission (FTC) E) American Advertising Federation (AAF) Answer: A Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 69) If the National Advertising Division (NAD) and an allegedly deceptive advertiser cannot reach a satisfactory resolution, the case is referred to the ________. A) National Advertising Review Board (NARB) B) American Association of Advertising Agencies (AAAA) C) Federal Trade Commission (FTC) D) American Advertising Federation (AAF) E) Federal Communications Commission (FCC) Answer: A Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 70) If the National Advertising Review Board (NARB) and an allegedly deceptive advertiser cannot reach a satisfactory resolution, the case is most likely referred to the ________. A) National Advertising Division (NAD) B) American Association of Advertising Agencies (AAAA) C) Advertising Review Council (ARC) D) American Advertising Federation (AAF) E) Federal Trade Commission (FTC) Answer: E Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 71) Critics of advertising tend to argue that advertising has the power to shape social trends and the way people think and act. Answer: TRUE Difficulty: Moderate Chapter LO: 3-1 Course LO: Identify and analyze the major social criticisms of marketing 72) An advertisement that is considered offensive in one context is considered offensive in all contexts. Answer: FALSE Difficulty: Moderate Chapter LO: 3-1 Course LO: Identify and analyze the major social criticisms of marketing 73) In comparison to the United States, Thailand and Hungary have stronger restrictions against tobacco advertising. Answer: TRUE Difficulty: Moderate Chapter LO: 3-1 Course LO: Identify and analyze the major social criticisms of marketing 74) People who accuse advertisements of causing demand creation believe that advertisements cause people to buy things they do not need and cannot afford. Answer: TRUE Difficulty: Moderate Chapter LO: 3-1 Course LO: Identify and analyze the major social criticisms of marketing 75) The Children's Food and Beverage Advertising Initiative is a federal law regulating the marketing of so-called "junk food" to children. Answer: FALSE Difficulty: Moderate Chapter LO: 3-1 Course LO: Identify and analyze the major social criticisms of marketing 76) An understanding of local culture and customs is important in international advertising. Answer: TRUE Difficulty: Moderate Chapter LO: 3-1 Course LO: Identify and analyze the major social criticisms of marketing 77) According to federal regulations, a spokesperson who endorses a brand must use the brand. Answer: TRUE Difficulty: Moderate Chapter LO: 3-1 Course LO: Identify and analyze the major social criticisms of marketing AACSB: Ethical understanding and reasoning 78) A code of ethics identifies how a professional in the industry must respond when faced with ethical questions. Answer: FALSE Difficulty: Moderate Chapter LO: 3-2 Course LO: Identify and analyze the major social criticisms of marketing AACSB: Ethical understanding and reasoning 79) One potential benefit to shockvertising is that the controversy attracts attention and buzz. Answer: TRUE Difficulty: Moderate Chapter LO: 3-2 Course LO: Identify and analyze the major social criticisms of marketing 80) A copyright is a brand, corporate or store name, or distinctive symbol that identifies the seller's brand and thus differentiates it from the brands of other sellers. Answer: FALSE Difficulty: Easy Chapter LO: 3-3 Course LO: Discuss the fundamental concepts of marketing 81) A copyright gives an organization the exclusive right to use or reproduce original work, such as an advertisement or package design, indefinitely. Answer: FALSE Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 82) Common designs or symbols can be copyrighted. Answer: FALSE Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 83) Under the First Amendment to the U.S. Constitution, protection of commercial speech is absolute. Answer: FALSE Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 84) The government can ban truthful commercial speech if it can be proven that the public good demands such restrictions. Answer: TRUE Difficulty: Difficult Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 85) The Federal Trade Commission (FTC) is the primary agency governing the advertising industry. Answer: TRUE Difficulty: Easy Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 86) The corrective advertising required by the Warner-Lambert v. FTC case shows how corrective advertising can change consumers' impressions created by deceptive advertising. Answer: FALSE Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Ethical understanding and reasoning 87) With respect to prescription drugs, the Food and Drug Administration's primary job is to determine whether the drugs are marketed in a responsible way. Answer: FALSE Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Ethical understanding and reasoning 88) The Federal Communications Commission (FCC) has the power to ban the airing of messages, including ads, that are deceptive or in poor taste. Answer: TRUE Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Ethical understanding and reasoning 89) The Federal Communications Commission (FCC) has the authority to take legal actions against advertisers and advertising agencies. Answer: FALSE Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 90) To be considered deceptive under FTC policy, a false or misleading advertisement must influence consumers' decision making about the product or service advertised. Answer: TRUE Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Ethical understanding and reasoning 91) The current FTC policy on deception is clear and easy for advertisers to measure. Answer: FALSE Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 92) An advertiser should have data on file to substantiate any claims it makes in its advertisements. Answer: TRUE Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 93) Advertisers must comply with a consent decree and stop the deceptive practice. Answer: FALSE Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 94) The first step in the regulation process after the FTC determines that an ad is deceptive is the issuance of a cease-and-desist order. Answer: FALSE Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Ethical understanding and reasoning 95) The process leading to the issuance of a cease-and-desist order is similar to that of a court trial. Answer: TRUE Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 96) An advertising agency can be held liable along with the advertiser for deceptive advertising. Answer: TRUE Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Ethical understanding and reasoning 97) The media can reject ads that violate their standards of truth and good taste. Answer: TRUE Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Ethical understanding and reasoning 98) Virtually all major advertisers and advertising agencies have in-house ad review procedures, typically including reviews by agency and client attorneys. Answer: TRUE Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 99) The National Advertising Division (NAD) and the National Advertising Review Board (NARB) are government agencies that negotiate the voluntary withdrawal of national advertising that professionals consider deceptive. Answer: FALSE Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 100) The Better Business Bureau is a government agency with the power to oversee advertising, particularly local advertising. Answer: FALSE Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 101) Because standards of good taste are generally consistent across a culture, creating general guidelines for good taste in advertising is straightforward. Answer: FALSE Difficulty: Moderate Chapter LO: 3-1 Course LO: Identify and analyze the major social criticisms of marketing 102) A cereal maker that advertises its product as "the one that will make you smile" is using an exaggerated claim, not puffery. Answer: FALSE Difficulty: Difficult Chapter LO: 3-1 Course LO: Identify and analyze the major social criticisms of marketing AACSB: Analytical thinking 103) In advertising, an action that is legal is by definition ethical. Answer: FALSE Difficulty: Difficult Chapter LO: 3-2 Course LO: Identify and analyze the major social criticisms of marketing 104) A radio host who makes gender stereotyped references that are in poor taste could face action from the FTC. Answer: FALSE Difficulty: Difficult Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Analytical thinking 105) The concern that children may be exploited by certain advertising messages could be addressed by both the FTC and the FCC. Answer: TRUE Difficulty: Difficult Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 106) Discuss the key ethical issues of taste, stereotyping, use of sex appeal, and targeting children. How do advertising professionals deal with these issues? Answer: (1) Taste and offensive advertising: Advertisers need to consider what might be considered bad taste or offensive by the target audience. The context in which the ads are viewed is also relevant. (2) Stereotyping: Though stereotypes can be useful, this is a delicate area in advertising. Ads should not use stereotypes that rely on a characteristic that is so negative and exaggerated that it reduces the group to a caricature. (3) Body image and sex appeal: Advertising that portrays women or men as sex objects can be considered demeaning and sexist, particularly if sex is unrelated to the product. Advertisements also influence cultural concepts of beauty; a focus on body perfection in advertising can lead to men and women placing their health at risk in order to look like models. (4) Targeting children: Children are seen as more vulnerable than adult consumers. A current issue is related to selling soft drinks, candy, and food with high fat and sugar content to children. Many believe that heavy advertising of such products has added to the growing obesity rate among the country's children. Difficulty: Difficult Chapter LO: 3-1 Course LO: Identify and analyze the major social criticisms of marketing AACSB: Ethical understanding and reasoning 107) Bob is a brand manager for a national brand laundry detergent and noticed a claim made in a competitor's advertisement that falsely indicates that its brand performed better than his company's brand. What must Bob's company prove to win a false advertising lawsuit over this comparative claim? Answer: According to federal law, companies/plaintiffs are required to prove five elements to win a false advertising lawsuit about an ad containing a comparative claim: (1) False statements have been made about either product. (2) The ads actually deceived or had the tendency to deceive a substantial segment of the audience. (3) The deception was "material" or meaningful (i.e., likely to influence purchasing intentions). (4) Falsely advertised goods are sold in interstate commerce. (5) The suing company has been or likely will be injured as a result of the false statements, either by loss of sales or loss of goodwill. Difficulty: Difficult Chapter LO: 3-1 Course LO: Identify and analyze the major social criticisms of marketing AACSB: Application of knowledge 108) Compare and contrast a trademark and a copyright. Explain the importance of each and how each is protected. Answer: A trademark is a brand, corporate or store name, or distinctive symbol that identifies the seller's brand and thus differentiates it from the brands of other sellers. A trademark that is registered through the Patent and Trademark Office of the Department of Commerce gives the organization exclusive use of the mark, as long as the trademark is maintained as identification for a specific product. Because trademarks are critical communication devices for products and services, they are important to advertising. A copyright gives an organization the exclusive right to use or reproduce original work, such as an advertisement or package design, for a period of time. Controls for copyright protection are provided by the Library of Congress. Advertising is a competitive business in which copycat ads abound, and copyrighting of coined words, phrases, illustrations, characters, and photographs can offer some protection from other advertisers who borrow too heavily from their competitors. Difficulty: Difficult Chapter LO: 3-3 Course LO: Discuss the fundamental concepts of marketing AACSB: Reflective thinking 109) Describe three specific responsibilities of the Federal Trade Commission. Answer: FTC responsibilities include the following: (1) Initiate investigations against companies that engage in unfair competition or deceptive practices. (2) Regulate acts and practices that deceive businesses or consumers. (3) When a violation is found, mandate a cease-and-desist order, an affirmative disclosure, and/or corrective advertising. Difficulty: Difficult Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 110) Name and describe four FTC remedies for deception and unfair advertising. Answer: The FTC can follow several courses of actions: (1) Consent Decrees—The first step in the regulation process after the FTC determines that an ad is deceptive. The FTC notifies the advertiser of its finding and asks the advertiser to sign a consent decree agreeing to stop the deceptive practice. Most advertisers do sign the decree to avoid bad publicity. (2) Cease-and-Desist Orders—Issued when the advertiser refuses to sign the consent decree and the deception is determined to be substantial. The process leading to the issuance of a cease-and-desist order is similar to a court trial, in which an administrative law judge presides and lawyers represent both parties. (3) Corrective Advertising—May be required when consumer research determines that an advertising campaign has perpetuated lasting false beliefs. The FTC orders the offending advertiser to produce messages for consumers that correct the false impressions the ad made. (4) Consumer Redress—The FTC can order cancellation or reformation of contracts, refund of money or return of property, payment of damages, and/or public notification. Difficulty: Difficult Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Ethical understanding and reasoning 111) Some claim advertising has actively created a society that is overly concerned with personal hygiene. Advertising has bombarded consumers with so many ads for products that remove our body odors, make our teeth white, or make our hair shine that we have become obsessed with outer appearances. Which side of the social debate on advertising do believers of this statement most likely take? A) advertising mirrors social values B) advertising mimics social values C) advertising shapes social values D) advertising is deceptive E) advertising is offensive Answer: C Difficulty: Moderate Chapter LO: 3-1 Course LO: Identify and analyze the major social criticisms of marketing AACSB: Ethical understanding and reasoning 112) In a focus group of women in their 50s, participants objected to health care ads showing older women with arthritis in sedentary positions. They would prefer to see the women working out in a gym. This is an example of ________. A) marketing imperialism B) cultural differences C) deceptive advertising D) ethnic stereotyping E) age-related stereotyping Answer: E Difficulty: Moderate Chapter LO: 3-1 Course LO: Identify and analyze the major social criticisms of marketing AACSB: Analytical thinking 113) John works for an advertising agency whose client wants to reach Hispanic consumers living in Florida and Texas. He decides that one ad execution is sufficient because he believes that all Hispanics are the same. John is using a(n) ________ to make his decision. A) heuristic B) shortcut C) unethical basis D) stereotype E) substantiation Answer: D Difficulty: Moderate Chapter LO: 3-1 Course LO: Identify and analyze the major social criticisms of marketing AACSB: Analytical thinking 114) Charley's Fish Fry restaurant claims it has the "best seafood in town." What type of claim does the Federal Trade Commission consider this to be? A) deceptive B) comparative C) puffery D) endorsement E) indirect Answer: C Difficulty: Moderate Chapter LO: 3-1 Course LO: Identify and analyze the major social criticisms of marketing AACSB: Analytical thinking 115) Bayer Aspirin claims that it relieves headache pain three times faster than does Tylenol. What type of advertising is this? A) comparative B) testimonial C) endorsement D) indirect E) substantiated Answer: A Difficulty: Moderate Chapter LO: 3-1 Course LO: Identify and analyze the major social criticisms of marketing AACSB: Analytical thinking 116) Recently, a class-action lawsuit was brought against McDonald's charging that its food has contributed to the nationwide obesity epidemic. The suit was eventually dismissed, but many critics continue to point out the health dangers of typical "fast food" menu items. These critics are concerned that the fast food industry has used ________. A) high-pressure selling B) deceptive promotions C) deceptive pricing D) deceptive packaging E) harmful products Answer: E Difficulty: Moderate Chapter LO: 3-1 Course LO: Identify and analyze the major social criticisms of marketing AACSB: Analytical thinking 117) In New York City, a series of advertisements seen on billboards and subway cars conveys the image of soda into bottles of fat. Many of these images also include people trying to drink the fatty contents of the bottle. The advertisements, sponsored by the NYC Health Department, ask "Are you pouring on the pounds?" Looking at the images is unsettling for many viewers. This is an example of ________. A) shockvertising B) false advertising C) flogging D) indirect advertising E) corrective advertising Answer: A Difficulty: Moderate Chapter LO: 3-2 Course LO: Identify and analyze the major social criticisms of marketing AACSB: Analytical thinking 118) Which of the following is the best example of the type of advertising self-regulation referred to as self-discipline? A) AT&T adopting a code of marketing ethics B) an individual making choices based on her moral guidelines C) the Distilled Spirits Council's Code of Responsible Practices designed for producers and marketers of distilled spirits D) a company making special efforts to hire a multicultural staff E) Duracell consenting to add a disclaimer to one of its ads Answer: A Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Analytical thinking 119) In 2007, syndicated radio host Don Imus made sexist and racist comments about players on the Rutgers women's basketball team during his radio show. Radio stations that aired the program would most likely have been concerned about regulatory action from which of the following as a result of the comments that were broadcast? A) FTC B) FCC C) Better Business Bureau D) FDA E) U.S. Patent and Trademark Office Answer: B Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Analytical thinking 120) Nike's longtime symbol on its products and in its ads is the Nike "Swoosh," which looks like a curved checkmark. If another athletic shoemaker used that symbol on its products or in its ads, that company would most likely be guilty of ________. A) comparative advertising B) competitive infringement C) misleading advertising D) trademark infringement E) deceptive advertising Answer: D Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Analytical thinking 121) Malaysia has banned many forms of tobacco advertising. However, the name Salem, a major cigarette manufacturer, can be found in advertisements for a line of clothing sponsored by the company. Salem is using which of the following to work around the tobacco advertising bans? A) stealth advertising B) deceptive advertising C) indirect advertising D) unfair advertising E) imperialistic advertising Answer: C Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Analytical thinking 122) Lovely Locks, a maker of shampoos, is considering entering the cosmetics market. The company has a line of mascara and eyeliner it wants to introduce. However, first Lovely Locks must obtain approval from the ________. A) U.S. Patent and Trademark Office B) Interstate Commerce Commission C) Food and Drug Administration D) Federal Trade Commission E) Federal Communications Commission Answer: C Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Application of knowledge 123) The Federal Trade Commission investigated a claim made in an ad for Ultra Slimfast and determined that the ad is deceptive. What's the first remedy that will be taken by the FTC? A) issue a cease-and-desist order B) fine the advertiser $10,000 for every day the ad has run C) require the advertiser to run corrective advertising D) order the advertiser to refund consumers' money E) issue a consent decree Answer: E Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Application of knowledge 124) A new weight loss program called Keep It Off advertises that dieters who have used the program have maintained their weight loss for more than three years. However, Keep It Off does not have any record of independent research that shows these results. The company may encounter problems with the FTC because it ________. A) cannot provide claim substantiation B) did not sign a mandated consent decree C) has not allowed for consumer redress D) has run corrective advertising E) has used misleading endorsements Answer: A Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Application of knowledge 125) A federal agency ordered KFC to stop running ads with false claims that its fried chicken is compatible with certain weight loss programs. Which agency had the authority to issue this order? A) Federal Trade Commission B) Food and Drug Administration C) Consumer Product Safety Commission D) U.S. Patent and Trademark Office E) American Association of Advertising Agencies Answer: A Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Application of knowledge 126) When Kraft foods made a claim that their processed cheese slices contained as much calcium as contained in 5 ounces of milk, the Federal Trade Commission pursued it as a deceptive claim. Although Kraft admitted that a cheese slice did not actually contain as much calcium as claimed due to processing, the company argued that its ad was not deceptive because consumer research indicated that calcium content was not important to consumers when deciding among brands of cheese. Basically, Kraft's defense was based on its belief that the misleading claim ________. A) did not lead to material injury to consumers, and thus it was not deceptive B) did not claim anything different from other cheese manufacturers C) was not technically misleading if consumers didn't think it was D) was not reasonable from the consumers' point of view E) did not omit any important information Answer: A Difficulty: Difficult Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Application of knowledge Use the passage below to answer the following questions. Prior to 1997, broadcast ads for prescription drugs could not mention both the ailment for which the drug received FDA approval and the name of the drug in the same advertisement. That is, only one or the other could be mentioned, which led to much confusion on the part of consumers. In 1997, the Food and Drug Administration loosened its controls on pharmaceutical companies, and as a result, the amount of prescription drug advertising on television has skyrocketed. Now both the ailment and the name of the drug can be mentioned, but major side effects must also be mentioned and there must be an indication where the consumer can get more information, such as from a magazine ad or a website. Some have been quite critical of this direct-to-consumer prescription advertising, claiming it has led to an increase in requests for costlier drugs when the less expensive generic drugs would be just as effective. 127) Although some doctors appreciate that the advertising has caused consumers to become more active in managing their own health and more informed about their drug options, some claim that they are being pressured to write inappropriate prescriptions because their patients are influenced by the drug ad claims. What is this called, when an external message, like an advertisement, causes people to feel a need to buy and use a product? A) demand creation B) shockvertising C) indirect advertising D) endorsement advertising E) puffery Answer: A Difficulty: Moderate Chapter LO: 3-1 Course LO: Identify and analyze the major social criticisms of marketing AACSB: Analytical thinking 128) One ad for a drug used to overcome male erectile dysfunction depicted an old man in a nursing home acting like a young man chasing after several women at once. The ad was not allowed to air on the major television networks of NBC, CBS, and ABC. The ad did not contain any deceptive or unsubstantiated claims, so there was nothing untruthful in the ad. Furthermore, the ad followed the guidelines given by the FDA regarding broadcast advertising by indicating the major side effects and referring to a magazine ad for more information. Which of the following best explains why the ad was not allowed to air? A) Stereotypes of "dirty old men" are not allowed in any advertising. B) The National Advertising Division determined the ad was distasteful and disallowed it from being aired on television. C) Not all advertising is given the same protection under the First Amendment of the Constitution. D) The media can reject ads that violate their standards of good taste. E) The behavior portrayed by the old man did not reflect the real behavior of the individual involved. Answer: D Difficulty: Difficult Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Application of knowledge 129) Pfizer is a large pharmaceutical company that has dramatically increased its direct-to-consumer television advertising of prescription drugs. However, Pfizer has stringent in-house ad review procedures, including reviews by agency and client attorneys. Pfizer is concerned that any claim made in an ad is verifiable and that the ad is executed in good taste. What type of advertising self-regulation does this illustrate? A) industry self-regulation B) self-discipline C) self-regulation by community groups D) mandatory self-regulation E) voluntary self-regulation Answer: B Difficulty: Moderate Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Analytical thinking 130) An advertisement by the manufacturer of Flonase, a prescription allergy nasal spray, compared its product with another nasal spray on the market, Nasonex, and claimed that it controlled allergy symptoms for a longer period of time. The ad was effective, resulting in a two percent increase in market share for Flonase. Manufacturers of Nasonex claimed that the advertisement misrepresented their product and basically made a false comparison. Nasonex would have to prove all of the following EXCEPT which one to support its claim? A) False statements had been made about Nasonex or Flonase. B) The ads actually deceived a substantial segment of the audience. C) Both Nasonex and Flonase are sold in interstate commerce. D) Nasonex has been injured or is likely to be injured as a result of the false statements. E) Flonase relied on puffery in the ads. Answer: E Difficulty: Difficult Chapter LO: 3-3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Application of knowledge 131) Kim and her boyfriend were watching a movie on television when a commercial for a feminine hygiene product came on. Kim was actually interested in this product, but being a teenager, she was mortified that her boyfriend was there when this ad came on. She quickly changed the channel. What key ethical issue challenging the standards of advertising professionals does this best illustrate? Answer: This example is a good illustration of the "poor taste and offensive advertising" key ethical issue facing advertising professionals. This ad might not be considered offensive or in poor taste by Kim if her boyfriend were not present, but it made her uncomfortable because he was there when it came on the television. Difficulty: Moderate Chapter LO: 3-1 Course LO: Identify and analyze the major social criticisms of marketing AACSB: Ethical understanding and reasoning 132) What are the arguments against using sex appeals in an advertisement for a product that is not related to sex? Answer: One argument is that the use of sex appeals may be degrading or sexist. Another argument is that the irrelevant use of sex in an ad distracts and hinders communication to the target. Difficulty: Difficult Chapter LO: 3-1 Course LO: Identify and analyze the major social criticisms of marketing AACSB: Ethical understanding and reasoning 133) OfficeMax has an advertisement that shows an African American with a bushy 1970s-era Afro hairdo dancing among office cubicles as he dispenses office supplies to fellow employees. The music he is dancing to is a famous song, "Rubberband Man," recorded by an African American singer. While OfficeMax claims this ad has been received favorably by consumers, it seems as though the response could have gone the other way. Explain why. Answer: This ad illustrates one of the key ethical issues facing advertising professionals: stereotyping. Some could argue that OfficeMax is using a racial and ethnic stereotype of an African American dancing around in a low-level position in an organization. The stereotype is further exaggerated with the 1970s Afro hairdo. Difficulty: Difficult Chapter LO: 3-1 Course LO: Identify and analyze the major social criticisms of marketing AACSB: Ethical understanding and reasoning 134) Why is it important for marketers to avoid the use of race-related stereotypes in advertisements? Answer: Racial stereotypes reduce a segment of the population to a caricature. This can alienate that population and reinforce negative stereotypes. Difficulty: Moderate Chapter LO: 3-1 Course LO: Identify and analyze the major social criticisms of marketing AACSB: Ethical understanding and reasoning 135) Many advertisements for weight-loss products feature before-and-after photos of individuals who have lost an astonishing amount of weight. While these products may work for some people, the results shown in t