ADPR exam 3 notes- UGA nate evans test questions and answers.

Substantiation What can be measurable or proven Deception vs Puffery Deception is actionable. - illegal Puffery is not actionable - legal - statements can neither be proven or disproven Deception Lie likely to mislead. A consumer acting reasonably. Must be "material" example. Duracell "lasts even longer" (cost more and did not last longer than others) Puffery Exaggeration or overstatement. Expressed in broad, vague language. Not An advertisers opinion of a product that is considered a legitimate expression of biased opinion. Not misdescriptions or false representations of specific characteristics. FTC Federal Trade Commission created in 1914 to prevent unfair competition and monitor and deter false, fraudulent, misleading, or deceptive advertising. FTC 3 part test 1) There must be a representation, omission, or practice that is likely to mislead the consumer. 2) The act or practice must be evaluated from the perspective of a reasonable consumer. 3) The representation, omission, or practice must be material- that is, likely to affect a consumer's choice or use of a product or service. Material Impactful to behaviors. (attitudes and thoughts) What will the FTC make you do if you make deceptive ads? -Stop/Change ads - "cease and desist" $10,000/a day -Publicize corrective -ads -Pay fines How does the FTC become aware of deceptive practices? Consumers, other advertisers, or FTC staff. Consent Decree What the FTC will ask a deceptive advertiser to sign. A document that does not admit to deception, yet acknowledges that the advertiser will stop running the sanctioned ad. What happens if an Advertiser doesn't sign the Decent Decree, breaks it, or continues running the ad? FTC has power to: -issue a "CEASE AND DESIST" ORDER- $10,000 a day until the sign decree. -Mandate for advertiser to run CORRECTIVE ADVERTISEMENTS. -If agreement is not met with the FTC, the case can go to FEDERAL COURT- asked to pay consumers back Rank speech in order of constitutional protection (highest to lowest) 1)Artistic speech 2)Political speech 3)Commercial Speech 4)Corporate Speech 5)Slander/Hate Speech Are Product Placements deceptive or misleading? No, it is considered artistic expression and gets highest level of free speech protection in the U.S. Social Marketing The process of using marketing techniques to persuade consumers to adopt the behaviors advocated by a social cause. Ex: Stopping smoking, obesity prevention, recycling. What does a for-profit partner want to gain from teaming up with a non-profit organization? 1) Associate its product with a perceived social good, boosting its appeal to a market segment that shares that perception. 2) Increase a broader market segment's perceptions of the enterprise as socially engaged and responsible. 3) Derive bottom line benefits from increasing market share in the targeted segment. What is the difference between social marketing and socially responsible advertising? It lies in the message. -Social marketing is encouraging people to do better for a cause. Ex: Telling people to recycle. -Socially responsible marketing is selling a product that is good for a cause. Ex: Product made with 100% recycled parts Stakeholders recognized by companies that employ socially responsible advertising: -Employees -Stockholders -Communities (where the product is sold) -Consumers In what ways can advertisers demonstrate they are socially responsible? 1) Social issues linked with products. (Tom's Shoes) 2) Social issues linked with corporations. (Subaru and environment) 3) Corporate donations to social issues. What do causes gain by joining forces with corporations? -Direct financial support -Increased awareness -Validation What is greenwashing? An attempt by an organization to seem more good for the environment than they are. Usually to cover up poor corporate practices. (BP) What is Pinkwashing? An attempt by an organization to seem like it does more good to breast cancer than it really does. Usually to cover up poor corporate practices. (NFL) What percentage of Americans found "advertising practitioners to be unethical and untrustworthy in 2013? 38% What % of Americans found advertisers to be on the up-and-up? 14% What does the AAAA(American Association of Advertising Agencies blame the lack of respect for advertisers on? 1) Pressure for short-term earnings. 2) Client pressures. 3) Pressures to get and keep new business, which can cause agencies to treat other agencies with a lack of respect. Commons Dilemma A phenomenon in which members of a specific group (Advertisers) face choices in which selfish, individualistic, or uncooperative decisions seem rational by virtue of short-term benefits, yet produce undesirable long-term consequences for the group as a whole. Legal responsibilities vs. Ethical Reponsibilities Legal: -Deception, demonstrable, provable lies Ethical: -Manipulation, legal but unethical Capitalist Realism "advertising depicts life as timeless and placeless, models and actors are meant to be representations of a social type or demographic category so consumers could identify as a member of that category" Ethically questionable advertising practices -Advertising ethically questionable products (cigarettes, fast food, sex toys) -Targeting specific populations (children, elderly, etc.) - Sensitive subjects (death, rape, abortion, war) -Sexism and sexual imagery -Advertising in schools Moral Myopia (Nearsightedness) A distortion of moral vision ranging from shortsightedness to near blindness, which affects an individual's perception of an ethical dilemma. Moral Muteness (silence) The absence of communicating moral concerns in settings where such