Deck 3: Advertising and Society

Question 1

________ is when an external message drives people to feel a need or want to buy a product.

A) Demand creation
B) Manipulation
C) Indirect advertising
D) Want creation
E) Need creation

Answer 1

Demand creation

Question 2

Advertising's economic role has been criticized in the way it creates ________, which means people want or feel a need to buy and use a product.

A) desires
B) demand
C) motives
D) markets
E) profit

Answer 2

demand

Question 3

All EXCEPT which of the following are key ethical issues discussed in this chapter?

A) targeting strategies
B) problems with advertising claims and other message strategies
C) taste and offensive advertising
D) unfair acts and practices
E) stereotyping

Answer 3

unfair acts and practices

Question 4

Marketing imperialism, or cultural imperialism, are terms used to describe ________.

A) what happens when advertising is effective in creating demand
B) how an external message drives people to feel a need or want for a product
C) what happens when people in other cultures adopt Western culture
D) how marketers attempt to be ethical
E) what happens when Western culture is imposed on others

Question 5

Which is NOT an organization with oversight responsibility for advertising?

A) government
B) media
C) competition
D) public or community groups
E) all of the above have oversight responsibility for advertising

Question 6

________ legislate(s) laws while ________ interpret(s) those laws in specific situations.

A) Courts; Congress
B) Congress; courts
C) The president; courts
D) The president; Congress
E) Congress; the FTC

Question 7

Which arm of the federal government interprets laws regarding advertising?

A) executive (the president)
B) courts
C) Federal Communications Commission
D) Congress
E) Federal Trade Commission

Question 8

Which is FALSE regarding the Children's Television Advertising Practice Act of 1990?

A) It placed a 10.5-minute-per-hour ceiling for commercials in children's weekend television programming.
B) All TV stations must air three hours of children's educational shows a week.
C) Commercial breaks must be clearly distinguished from programming.
D) It bars the use of program characters to promote products.
E) It placed a 12-minute-per-hour limit for commercials in children's weekday television programming.

Question 9

Under the ________ companies/plaintiffs are required to prove five elements to win a false advertising lawsuit about an ad making a comparative claim.

A) Uniform Commercial Code
B) Pure Food and Drug Act
C) Wheeler-Lea Amendment
D) Lanham Act
E) Magnuson-Moss Warranty Act

Question 10

Businesses can seek damages from an advertiser who "misrepresents the nature, characteristics, qualities, or geographic origin in comparative advertising" under the ________.

A) Uniform Commercial Code
B) Pure Food and Drug Act
C) Wheeler-Lea Amendment
D) Lanham Act
E) Magnuson-Moss Warranty Act

Question 11

The ethical responsibility for selling a controversial or unsafe product lies with the ________.

A) CEO of the organization
B) marketing department
C) advertising director
D) Federal Trade Commission
E) advertising agency

Question 12

Before an advertising agency can create an ad for a client, it must consider which of the following concerning the client company?

A) the nature of the client company and its mission
B) its available resources
C) its reputation
D) its product line
E) all of the above

Question 13

Cigarette advertising on television and radio has been banned since ________.

A) 1961
B) 1971
C) 1981
D) 1991
E) 2001

Question 14

Why has the amount of prescription drug advertising skyrocketed in the past few years?

A) The FTC loosened its controls on pharmaceutical companies.
B) The FCC loosened its controls on pharmaceutical companies.
C) Demographic shift in U.S. population reflects an aging population, and they tend to be heavy users of prescription drugs causing more competition in the industry and thus more advertising.
D) The FDA loosened its controls on pharmaceutical companies.
E) Patents held by many pharmaceutical companies expired, resulting in price competition and heavy advertising.

Question 15

Which of the following statements is FALSE regarding commercial speech?

A) It is speech that promotes commercial activity.
B) It is often restricted.
C) Its protection under the U.S. Constitution is absolute.
D) It is legal to ban false or misleading commercial speech.
E) It is legal to ban truthful commercial speech.

Question 16

The Supreme Court's ruling in Central Hudson Gas & Electric Corporation v. Public Service Commission of New York is significant because ________.

A) it is the first commercial speech case heard by the Supreme Court
B) the Supreme Court decided that the First Amendment does not protect purely commercial advertising because that type of advertising does not contribute to decision-making in a democracy
C) the Supreme Court ruled that states cannot prohibit businesses from advertising prices
D) the Supreme Court signaled strong protection for companies under the First Amendment
E) the Supreme Court established a test that determines to what extent the government can restrict advertising

Question 17

Which is NOT a responsibility of the Federal Trade Commission?

A) fine people or companies that violate either a trade regulation rule or a cease-and-desist order given to any other firm in the industry
B) fund participation of consumer groups and other interest groups in rule-making proceedings
C) oversee package labeling and ingredient listings for food and drugs
D) regulate acts and practices that deceive businesses or consumers and issue cease-and-desist orders where such practices exist
E) initiate investigations against companies that engage in unfair competition or deceptive practices

Question 18

Which is NOT a basic element of the current FTC policy on deception?

A) preventable
B) misleading
C) reasonableness
D) injurious
E) all of the above are basic elements of the current FTC policy on deception

Question 19

A relatively new remedy for deceptive and unfair advertising taken by the FTC is to ________.

A) make the deceptive advertiser spend time in prison
B) fine a deceptive advertiser $10,000 per day for every day the deceptive ad ran
C) require corrective advertising to correct the false impressions a deceptive ad made
D) make the advertising agency liable for deceptive advertising along with the advertiser when the agency is an active participant in the preparation of the ad and knows or has reason to know that it is false or deceptive
E) make public specific information about a deceptive advertising case

Question 20

________ is a set of moral principles that guide actions and create a sense of responsible behavior.

A) Social responsibility
B) Ethics
C) Self-regulation
D) Taste
E) Self-discipline

Question 21

With respect to guidelines for determining what is ethical, which is NOT one of the types of criteria for making an advertising decision?

A) moral systems
B) self-discipline
C) professional ethic
D) personal ethic
E) internal moral compass

Question 22

The ________. is an examples of a moral system.

A) The Ten Commandments
B) The Social Ethic
C) The Personal Rule
D) The Golden Ethic
E) The Responsible Rule

Question 23

________ motivates a business to perform a useful function within society and to make its impact on society positive rather than negative.

A) Moral compass
B) Social ethics
C) Social responsibility
D) Professional standards
E) Personal ethics

Question 24

Which is NOT included in the concept of social responsibility?

A) treating employees and other stakeholders with sensitivity
B) avoiding practices that hurt the environment
C) avoiding practices that hurt the community
D) avoiding practices that hurt society
E) treating foreigners in our country as though they are Americans

Question 25

A ________ identifies how professionals in the industry should respond when faced with ethical questions.

A) code of behavior
B) code of standards
C) code of laws
D) code of responsibility
E) code of discipline

Question 26

A misleading claim is a legal problem only in the United States.

Question 27

"Puffing" claims are illegal.

Question 28

A spokesperson who endorses a brand must actually use the product for this to be a legal message strategy.

Question 29

The government can ban truthful commercial speech.

Question 30

Indirect advertising that features a product other than the primary, and usually controversial, product is illegal in most countries.

Question 31

International advertisers do not fear actual laws; they fear not knowing those laws.

Question 32

Advertising that is in poor taste and offensive is easily identified.

Question 33

Define deceptive advertising and explain the three basic elements of the current FTC policy on deception.

Question 34

Discuss three types of ethical criteria that need to be considered when making an advertising decision.

Question 35

Ads that play on women's insecurities by portraying perfect looking women who are unnaturally thin are examples of ________.

A) deceptive advertisements
B) violating another company's trademark
C) body image
D) inexpensive ads to produce
E) effective advertisements

Question 36

Many people objected to an ad that used a style of lighting and staging reminiscent of a porn movie to show prepubescent teens in their underwear because it was ________.

A) in poor taste and offensive
B) too materialistic
C) racial stereotyping
D) too dark
E) humorous

Question 37

A spot for Just for Feet that showed a barefoot black man running through the wilderness tracked by a patrol in a Humvee was considered objectionable ________.

A) because it was offensive and in bad taste
B) because it made viewers feel inferior about their body and self-image
C) because it was a misleading advertisement
D) because it was targeting African Americans
E) because it was racial stereotyping

Question 38

Several countries have banned many forms of tobacco advertising. However, the Salem, Benson & Hedges, and Winston names can found on billboards in one of these countries, but they are not advertising cigarettes. They are advertising their travel, clothing, and restaurant businesses. What type of advertising are these companies using to undermine these tobacco-advertising bans?

A) stealth advertising
B) deceptive advertising
C) indirect advertising
D) unfair advertising
E) imperialistic advertising

Question 39

Ads that present women as obsessed with men treat women ________.

A) fairly
B) as sexual objects
C) as homosexuals
D) as sweetcakes
E) as pumpkins

Question 40

Bayer Aspirin claims that it relieves headache pain three times faster than does Tylenol, but this is not true. Under which law can Tylenol file a false advertising lawsuit about this false claim?

A) Lanham Act
B) Pure Food and Drug Act
C) Wheeler-Lea Amendment
D) FTC Improvement Act
E) Magnuson-Moss Warranty Act

Question 41

Which of the following is NOT one of the American Association of Advertising Agencies' Ten Guidelines for Comparative Advertising?

A) The intent and connotation of the ad should be to inform and never to discredit or unfairly attack competitors, or competing products or services.
B) Should not include statements, suggestions, or pictures offensive to public decency or minority segments of the population if they do not use the competitive product.
C) When a competitive product is named, it should be one that exists in the marketplace as significant competition.
D) The identification should be for honest comparison purposes and not simply to upgrade by association.
E) The property being compared should be significant in terms of value or usefulness of the product to the consumer.

Question 42

MINI-CASE
Prior to 1997, broadcast ads for prescription drugs could not mention the ailment for which the drug received FDA approval for 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 web site. 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 drug would be just as effective.

-Refer to Mini-Case. 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 2 percent increase in market share for Flonase. Manufacturers of Nasonex claimed that the advertisement misrepresented their product and basically made a false comparison. Under which law, can the manufacturer of Nasonex seek damages from the manufacturer of Flonase?

A) Federal Trade Commission Act
B) Pure Food and Drug Act
C) FTC Improvement Act
D) Wheeler-Lea Amendment
E) Lanham Act

Question 43

Explain the importance of avoiding age-related stereotypes that includes presenting mature people in a negative light.

Question 44

Belinda has been invited to speak to an advertising trade group about key ethical issues facing advertising decision makers. List four key ethical issues that challenge the standards of advertising professionals.

Question 45

When an advertisement aimed at males portrays females as sexual objects, is it misuse or good targeting?

Question 46

Todd just took a job as the manager of a television station. What legal concerns must he know about advertising to children?

Question 47

List five of the ten American Association of Advertising Agencies' Ten Guidelines for Comparative Advertising.

Question 48

List the five specific statements of the American Association of Advertising Agencies' Creative Code.

Question 49

MINI-CASE
Amy is seven years old and loves to play with dolls. In fact, she has more than 20 Barbie dolls and lots of clothes and accessories, including three cars, a house with furniture, and an airplane. Mattel, the manufacturer of Barbie, also sells many other products with the Barbie brand, such as games, notebooks, and girls' clothing to name a few.
-Refer to Mini-Case. Amy saw a commercial on television for a newer Barbie house than the one she currently has, and of course, she wanted it. Advertising has been criticized because it is used to drive people to feel a need or want. What is this called and why is advertising criticized?

Question 50

MINI-CASE
Amy is seven years old and loves to play with dolls. In fact, she has more than 20 Barbie dolls and lots of clothes and accessories, including three cars, a house with furniture, and an airplane. Mattel, the manufacturer of Barbie, also sells many other products with the Barbie brand, such as games, notebooks, and girls' clothing to name a few.
-Refer to Mini-Case. One ad for Barbie showed an animated Barbie character diving off of a diving board doing flips and twists before landing in a pool. The ad was advertising a Barbie doll with a diving board that can be attached to the side of a bathtub, and Amy begged her mother for the doll and got it, but she was very disappointed when the doll did not perform like she saw in the commercial. She realized she had to hold on to the doll to make it flip around and dive into the water. What was wrong with this ad?

Question 51

MINI-CASE
Amy is seven years old and loves to play with dolls. In fact, she has more than 20 Barbie dolls and lots of clothes and accessories, including three cars, a house with furniture, and an airplane. Mattel, the manufacturer of Barbie, also sells many other products with the Barbie brand, such as games, notebooks, and girls' clothing to name a few.
-Refer to Mini-Case. What self-regulatory agency monitors national advertising targeted at children?

Question 52

MINI-CASE
Amy is seven years old and loves to play with dolls. In fact, she has more than 20 Barbie dolls and lots of clothes and accessories, including three cars, a house with furniture, and an airplane. Mattel, the manufacturer of Barbie, also sells many other products with the Barbie brand, such as games, notebooks, and girls' clothing to name a few.
-Refer to Mini-Case. Amy's mother limits Amy's television viewing time because she feels there is just too much advertising influencing her child to want more stuff. However, there are restrictions regarding advertising toward children. Name and describe the laws and regulations specific to television advertising targeted at children.