Deck 11: Consumer Stakeholders: Information Issues and Responses

Question 1

Advertising Standards Canada is the not-for-profit industry body that aims to maintain community confidence in advertising by encouraging the integrity of advertising through industry self-regulation.

Answer 1

True

Question 2

When an advertiser presents facts so as to create false beliefs in consumers, ethical questions are likely to be raised.

Answer 2

True

Question 3

Supporters of advertising contend that it is an efficient way to inform consumers of the wide range of available products and services in our economy.

Answer 3

False

Question 4

Customer satisfaction is a central goal of some firms in some industries, but can be peripheral for others in the long run.

Question 5

During the 1980s, consumer groups have made significant unparalleled advances in many areas of consumer interest, including auto safety and food additives.

Question 6

Some advertisers have agreed to follow self-regulatory guidelines when addressing concerns regarding advertising to children.

Question 7

Cases of unfair or deceptive advertising are handled through such government regulatory bodies as the Competition Bureau.

Question 8

As long as an advertiser does not intend to deceive customers, there is not likely to be any legal or ethical responsibility associated with communicating questionable claims to customers through advertising.

Question 9

The effect Ralph Nader had on the North American consumer movement can be characterized as a mediating force within a relatively short-lived period of consumerism and socially oriented legislation.

Question 10

Consumerism is a social movement seeking to augment the rights and powers of sellers in relation to buyers.

Question 11

The use of sex as an advertising theme is a major ethical issue, especially for some women's groups, because such advertising can be perceived as degrading and dehumanizing to women.

Question 12

The Competition Bureau is responsible for maintaining free and fair competition and for protecting consumers from unfair or misleading business practices.

Question 13

Consumer orientation is at the heart of the current marketing concept.

Question 14

Both the Federal and the Provincial governments have responsibilities in dealing with marketplace issues.

Question 15

One of the aims of the Canadian Cope of Advertising Standards is to serve as a guide to those creating commercial messages for children.

Question 16

Consumer stakeholders as a group have substantially common interests and, therefore, can be considered to have similar goals, expectations, and strengths.

Question 17

The major problem with the use of psychological appeals in advertising is that these tend to confuse consumers to the extent that they pay far more for some goods and services than they otherwise would.

Question 18

Self-regulation can be considered synonymous with market regulation and is not influenced by government regulation.

Question 19

The "consumer's Magna Carta" consists of four basic rights spelled out by President John F. Kennedy.

Question 20

Over the years the government has given the Competition Bureau, enforcement responsibility in a variety of consumer-related fields.

Question 21

A consumer survey indicated that

A) in general, consumers have only mild concerns about their relationship with business.
B) there are a variety of strengths and weaknesses in the regulation of consumer advertising.
C) about one-third of the complaints made by those surveyed were not resolved satisfactorily.
D) few accept the fact that businesses advertise to sell their goods and services.

Question 22

The paradox of the marketing concept is that

A) while many business experts proclaim a consumer orientation, consumers as a group express serious dissatisfaction with business practices.
B) even though many business leaders proclaim a family orientation, they do not believe in government regulation of children's television programming.
C) the government both protects and regulates the marketing activities of business.
D) consumers are both amused by and angry with marketers who make exaggerated product claims.

Question 23

A central question in the "kid-vid" issue is

A) whether advertisers can advertise whatever they want to whomever they want.
B) the existence and/or extent of harm done to children watching television commercials.
C) whether the government has any regulatory authority regarding Saturday morning programming.
D) whether children influence their parents in purchasing advertised goods and services.

Question 24

A social movement seeking to augment the rights and powers of buyers in relation to sellers is referring to

A) global codes of conduct.
B) consumerism.
C) ethical norms.
D) none of the above

Question 25

One of the arguments supporting the idea that advertising is wasteful is that

A) many advertisements offend public tastes.
B) advertising interrupts consumers from other more important tasks.
C) significant amounts of money are spent that produce no net consumer benefit.
D) business uses advertising tactics such as "bait-and-switch."

Question 26

Claims that simply cannot be substantiated by any kind of evidence falls under which one of the following advertising abuses?

A) ambiguous advertising
B) concealed facts
C) exaggerated claims
D) psychological appeals

Question 27

Consumers have identified which of the following as major problems they have with business?

A) lack of resolution of consumer complaints
B) inaccurate claims, packaging, and labeling
C) low quality goods and services
D) all of the above

Question 28

One description of the evolution of business in North America identifies which of the following progressive pattern shifts in the orientation of business problems?

A) product, marketing control, sales, and marketing
B) marketing, product, sales, and marketing control
C) marketing, marketing control, sales, and product
D) product, sales, marketing, and marketing control

Question 29

Regarding the advertising of alcoholic beverages on TV,

A) advertisements should not be directed at persons under the legal drinking age.
B) a poll found that over half of those surveyed want beer and wine ads on the airwaves.
C) the brewing industry does not see a proposed alcohol ban as a threat.
D) the networks have gotten more lenient with what firms may get away with.

Question 30

William Shaw and Vincent Barry have identified four types of advertising abuses in which ethical issues reside. Which one of the following is not one of the four?

A) ambiguous
B) conceal facts
C) exaggerate
D) clear information

Question 31

The practice of not telling the whole truth or deliberately not communicating information the consumer ought to have access to in making an informed choice is referring to which type of advertising abuses?

A) ambiguous advertising
B) concealed facts
C) exaggerated claims
D) employ psychological appeals

Question 32

Which right is concerned with the fact that many products are dangerous?

A) right to safety
B) right to be informed
C) right to choose
D) right to be heard

Question 33

One of the manifestations of 1990s style consumer activism has been the

A) use of credit cards rather than cash.
B) giving consumer goods to charity rather than consuming them for personal use.
C) use of consumer shopping guides to socially responsible companies.
D) rejection of bar code pricing.

Question 34

The practice of comparative advertising

A) is mainly of concern to consumer groups looking to advance their political agendas.
B) was allowed only on an experimental basis during the late 1970s.
C) is directly responsible for improving the quality of goods and services available to consumers.
D) has resulted in stiff competition between traditional rivals.

Question 35

One of the problems caused by exaggerated claims is that

A) they allow disreputable firms to stay just inside the law.
B) consumer groups become more powerful, thereby leading to more regulation.
C) they corrupt the free enterprise system so that consumers no longer wish to support it.
D) those who make such claims set the standard for other advertisers, lowering the efficiency of advertising in general.

Question 36

All of the following have been identified as types of advertising abuses that raise ethical questions except

A) ads in bad taste.
B) ads that conceal facts.
C) ads that exaggerate.
D) ads that are ambiguous.

Question 37

Clarity, accuracy, and adequacy of information are

A) ideals which are very likely to be unattainable.
B) needed by consumers to make intelligent purchasing decisions.
C) currently achieved by most TV commercials.
D) best achieved through radio advertising.

Question 38

Competition policy is aimed at creating equity in the marketplace among potentially competing interests of

A) consumers
B) producers
C) Public interest
D) All of the above

Question 39

Who is considered the father of consumer movement?

A) Ralph Nader
B) John Stimer
C) Philip Kotler
D) Gover T. Fergason

Question 40

Regulations set out by the Consumer Packaging and Labelling Act and the Competition Act, reflect the principle that

A) guarantees that businesses will pay shipping charges on defective items.
B) Environmental claims that are vague or misleading should not be used.
C) all products must be labeled as environmentally friendly.
D) includes all the above concepts.

Question 41

The specific consumer protection statutes enforced by the FTC Credit Practices Division could be characterized by the description that they

A) regulate various components of finance-related transactions between consumers and businesses.
B) may unfairly penalize the consumer in credit transactions involving big-ticket items.
C) are similar in content to the FCC statutes regulating television networks and local stations.
D) completely alter business and consumer financial transactions such that caveat emptor ("let the buyer beware") is no longer a necessary consumer attitude.

Question 42

In a 2002 lawsuit, Shell Canada was accused of

A) Overcharging consumers
B) Spying on Petro Canada
C) Failing to notify consumers about a problem with its gasoline
D) Adding water to its gasoline

Question 43

Claims that simply cannot be substantiated by any kind of evidence are known as

A) False advertising
B) ambiguous advertising
C) exaggerated claims
D) concealed facts

Question 44

Which type of self-regulation in advertising is characterized by the firm itself controlling the advertising?

A) self-discipline
B) negotiated
C) co-opted
D) social regulation

Question 45

Which advertising technique refers to the practice of directly comparing a firm's product with the product of a competitor?

A) comparative advertising
B) advertising to children
C) advertising of alcoholic beverages
D) advertising age

Question 46

It has been said that all the following are tasks that business must perform if advertising behavior is to be considered acceptable, except

A) adequately processing consumer complaints.
B) designing and implementing adequate standards.
C) publicizing violations of standards.
D) working with consumer groups to deregulate.

Question 47

Which type of self-regulation in advertising is characterized by the industry voluntarily working on the development, use, and enforcement of norms with some outside body?

A) self-discipline
B) Pure self-regulation
C) co-opted self-regulation
D) negotiated self-regulation

Question 48

In 2003, the Competition Bureau ruled that Sears Canada

A) was trying to put Walmart out of business
B) Engaged in deceptive marketing of its tires
C) Sold stolen tires
D) Overcharged consumers

Question 49

"King of Beers" and "Breakfast of Champions" are examples of

A) False advertising
B) puffery
C) fraud
D) Beer commercials

Question 50

"The right to safety" and "the right to be informed" are part of

A) puffery
B) commercialism
C) the consumer's magna carta
D) Labeling