Deck 3: Brand Communication and Society

Question 1

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 1

C

Question 2

________ 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 2

A

Question 3

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 3

B

Question 4

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

Question 5

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

Question 6

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

Question 7

Which of the following states a message that is untrue?

A) puffery
B) comparative advertising
C) image advertising
D) product demonstrations
E) false advertising

Question 8

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

Question 9

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.

Question 10

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

Question 11

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

Question 12

________ 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

Question 13

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

Question 14

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.

Question 15

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

Question 16

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

Question 17

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

Question 18

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

Question 19

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

Question 20

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

Question 21

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

Question 22

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.

Question 23

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

Question 24

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

Question 25

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

Question 26

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

Question 27

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

Question 28

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

Question 29

Adbusters.org 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

Question 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

Question 31

Many professions write a code of ________ to help guide practitioners toward ethical behavior.

A) morals
B) ethics
C) laws
D) regulations
E) missions

Question 32

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

Question 33

________ are the "shoulds" and "oughts" of behavior.

A) Missions
B) Ethics
C) Regulations
D) Customs
E) Traditions

Question 34

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

Question 35

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

Question 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

Question 37

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

Question 38

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.

Question 39

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

Question 40

________ are frameworks for right actions and are primarily the domain of religion and philosophy.

A) Missions
B) Ethics
C) Morals
D) Customs
E) Traditions

Question 41

________ advertising features a product other than the primary,and usually controversial,product.

A) Deceptive
B) Unfair
C) Comparative
D) Injurious
E) Indirect

Question 42

The Federal Communications Commission (FCC)can take action against ________.

A) the media
B) advertisers
C) advertising agencies
D) manufacturers
E) suppliers

Question 43

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)

Question 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

Question 45

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

Question 46

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

Question 47

What is the primary agency governing marketing communications?

A) FCC
B) FTC
C) FDA
D) National Advertising Review Council
E) National Advertising Division

Question 48

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

Question 49

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

Question 50

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

Question 51

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

Question 52

Which of the following CANNOT be copyrighted?

A) an advertisement
B) an idea
C) a package design
D) an illustration
E) a photograph

Question 53

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

Question 54

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

Question 55

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

Question 56

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

Question 57

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

Question 58

________ speech is speech that promotes buying and/or selling products.

A) Political
B) Free
C) Unregulated
D) Commercial
E) Regulated

Question 59

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

Question 60

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

Question 61

One potential benefit to shockvertising is that the controversy attracts attention and buzz.

Question 62

According to federal regulations,a spokesperson who endorses a brand must use the brand.

Question 63

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)

Question 64

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

Question 65

People who accuse advertisements of causing demand creation believe that advertisements cause people to buy things they do not need and cannot afford.

Question 66

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

Question 67

Critics of advertising tend to argue that advertising has the power to shape social trends and the way people think and act.

Question 68

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

Question 69

The Children's Food and Beverage Advertising Initiative is a federal law regulating the marketing of so-called "junk food" to children.

Question 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)

Question 71

An understanding of local culture and customs is important in international advertising.

Question 72

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

Question 73

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

Question 74

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.

Question 75

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.

Question 76

An advertisement that is considered offensive in one context is considered offensive in all contexts.

Question 77

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

Question 78

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)

Question 79

In comparison to the United States,Thailand and Hungary have stronger restrictions against tobacco advertising.

Question 80

A code of ethics identifies how a professional in the industry must respond when faced with ethical questions.