Deck 20: Marketing Regulation and Consumer Behavior

Question 1

What is the oldest age of a child that most regulation attempts to protect with respect to marketing practices?

A) 2
B) 5
C) 8
D) 10
E) 12

Answer 1

E
Explanation: Children lack the ability to fully process and understand information, including marketing messages, until around 12 years of age.

Question 2

When Rose Art Industries changed its packaging due to concerns that size of the product relative to the size of the child shown on the package picture could lead a child to believe that the Super Lite toy was larger than it was, this is related to _____.

A) CARU's guidelines linked to possible information-processing deficits of children
B) CARU's guidelines linked to concerns about the health/safety/value effects of commercial messages on children
C) COPPA's guidelines regarding processing deficits of children
D) all of the above
E) none of the above

Answer 2

A
Explanation: This particular guideline refers to whether an advertisement leaves a misleading impression with a child.

Question 3

What is the concern regarding the limited ability of children to comprehend advertising messages?

A) Do children understand the selling intend of commercials?
B) Can children understand specific aspects of commercials?
C) Do children like commercials?
D) A and B
E) A, B, and C

Answer 3

D
Explanation: CARU and others are interested in the impact that the content of children's advertising has, as well as the ability of children to process advertising messages.

Question 4

One basis for the concern over marketing to children is based on _____.

A) attribution theory
B) Piaget's stages of cognitive development
C) the multiattribute model of cognitive development
D) dissonance theory
E) mental development theory

Question 5

Which of the following is NOT an information-processing-related guideline of the CARU?

A) Claims should not unduly exploit a child's imagination.
B) Ads should demonstrate the performance and use of the product in a way that can be duplicated by the child for whom the product is intended.
C) Representation of food products should be made so as to encourage sound use of the product with a view toward healthy development of the child and development of good nutritional practices.
D) Program personalities, live or animated, should not be used to sell products, premiums, or services in or adjacent to programs primarily directed to children under 12 years of age in which the same personality or character appears.
E) All disclosures and disclaimers material to children should be understandable to the children in the intended audience and account for their limited vocabulary and language skills.

Question 6

Cathy was babysitting her two nieces on a Saturday morning, and they were watching cartoons together. She noticed that every time a commercial pod came on, there was a little jingle telling the kids that "after these messages, we'll be right back." This is an example of _____.

A) a discriminator
B) a warning
C) a separator
D) a primer
E) corrective advertising

Question 7

Margaret wants to complain about an advertisement targeting children that she saw on a program her children were watching. Which self-regulatory organization should she contact?

A) Children's Advertising Review Unit (CARU)
B) National Advertising Review Board (NARB)
C) National Children's Advertising Division (NCAD)
D) National Children's Advertising Review Board (NCARB)
E) Federal Trade Commission (FTC)

Question 8

The regulation of marketing activities aimed at children focuses primarily on which of the following?

A) product safety
B) advertising
C) promotion
D) privacy protection
E) all of the above

Question 9

According to Piaget's stages of cognitive development, children lack the ability to fully process and understand information, including marketing messages, until around age _____.

A) 5
B) 8
C) 10
D) 12
E) 15

Question 10

How many of the CARU's general guiding principles relate to a child's ability to comprehend commercial messages?

A) 1
B) 4
C) 5
D) 6
E) all of them

Question 11

The food industry has responded to concerns regarding children's health by

A) providing healthier meal options for kids.
B) removing diet sodas and replacing them with diet and other healthier drinks on menus.
C) committing to advertising healthy dietary choices to children under 12.
D) A and B
E) all of the above

Question 12

Which of the following statements is FALSE regarding marketing practices?

A) Marketing practices are sometimes controversial.
B) Regulating marketing activities requires a higher level of understanding of consumer behavior than does managing marketing programs.
C) There are many issues where the appropriate ethical action for marketers is not clear-cut.
D) Society has declared that some marketing actions are clearly inappropriate.
E) There are laws and regulations that prohibit or require specific marketing actions.

Question 13

"Part of a nutritious breakfast," "Each sold separately," and "Batteries not included" are examples of _____.

A) disclaimers
B) primers
C) warning labels
D) deception
E) corrective advertising

Question 14

Which of the following is the American advertising industry's primary self-regulatory body?

A) Federal Trade Commission
B) National Advertising Division of the Council of Better Business Bureaus
C) Food and Drug Administration
D) Congress
E) media

Question 15

Which of the following is(are) a major area of concern regarding the large amount of time children devote to watching television?

A) the impact of commercial messages on children's values
B) the impact of commercial messages on children's health and safety
C) the impact of commercial messages on children's education
D) A and B
E) A, B, and C

Question 16

Government regulatory bodies _____.

A) include the FDA and USDA
B) have increased consumer satisfaction with counterfeit goods
C) ensure the safety of counterfeit consumer goods
D) require manufacturers of branded goods to reimburse consumers who find they have gotten a counterfeit version
E) all of the above

Question 17

Which of the following is a special unit of the National Advertising Division of the Council of Better Business Bureaus that specifically reviews advertising aimed at children?

A) Children's Advertising Review Unit (CARU)
B) National Advertising Review Board (NARB)
C) National Children's Advertising Division (NCAD)
D) National Children's Advertising Review Board (NCARB)
E) Federal Trade Commission (FTC)

Question 18

Conor is 15 years old. Which of the following statements is TRUE regarding him and other children his age?

A) He most likely still lacks the ability to fully process and understand information, including marketing messages.
B) Most marketing programs aimed at him deliberately attempt to exploit him.
C) He most likely has the ability to fully process and understand information, including marketing messages.
D) While he has the ability to process information, he does not yet have the ability to understand the information.
E) Most regulation regarding marketing to children includes him.

Question 19

Piaget's theory of cognitive development holds that _____.

A) children must be taught how to be consumers
B) marketing stimuli play a critical role in child socialization
C) intellectual capabilities can continue to expand throughout the lifecycle
D) intellectual capabilities continue to expand until late middle age
E) none of the above

Question 20

CARU and others are interested in the impact that the _____ of children's advertising has, as well as the ability of children to process advertising messages.

A) content
B) quantity
C) quality
D) tone
E) all of the above

Question 21

Estimates of the number of TV ads that children are exposed to per year range from _____.

A) 1,000 to 5,000
B) 8,500 to 15,000
C) 18,000 to 40,000
D) 48,000 to 60,000
E) 73,000 to 100,000

Question 22

At Marci's school, there are logos for McDonald's, Coca-Cola, and Sprint around the football stadium's scoreboard. She was also given pencils that had Gap written on them and a notebook with the Nike swoosh. These are examples of _____.

A) in-school ads
B) ads in classrooms
C) corporate-sponsored educational materials and programs
D) corporate-sponsored contests and incentive programs
E) mobile games

Question 23

Which of the following is a classification of commercialization of schools?

A) in-school ads
B) ads in classrooms
C) corporate-sponsored educational materials and programs
D) corporate-sponsored contests and incentive programs
E) all of the above

Question 24

Channel One is an example of _____.

A) in-school ads
B) ads in classrooms
C) corporate-sponsored educational materials and programs
D) corporate-sponsored contests and incentive programs
E) mobile games

Question 25

How many of CARU's basic principles focus on the concern regarding the impact of commercial messages on children's values and their health and safety?

A) 1
B) 2
C) 3
D) 4
E) 5

Question 26

Which of the following CARU principles addresses the impact of commercial messages on children's values and their health and safety?

A) Although there are many influences that affect a child's personal and social development, it remains the prime responsibility of the parents to provide guidance for children. Advertisers should contribute to this parent-child relationship in a constructive manner.
B) Advertisers are encouraged to capitalize on the potential of advertising to serve an educational role and influence positive personal qualities and behaviors in children.
C) Advertisers should avoid social stereotyping and appeals to prejudice and are encouraged to incorporate minority and other groups in ads and to present positive role models whenever possible.
D) Products and content which are inappropriate for children should not be advertised or promoted directly to them.
E) All of the above address the impact of messages on children's values and their health and safety.

Question 27

Which of the following is NOT a classification of commercialization of schools?

A) in-school ads
B) ads in classrooms
C) corporate-sponsored educational materials and programs
D) corporate-sponsored contests and incentive programs
E) mobile games

Question 28

Cindy is bothered about the amount of advertising her 10-year-old daughter sees for cosmetics and designer clothes that she feels are too suggestive in nature. Which is Cindy's major area of concern regarding advertising to children?

A) the impact of commercial messages on children's values
B) the impact of commercial messages on children's health and safety
C) the impact of commercial messages on the economy
D) the impact of commercial messages on her children's cognitive development
E) the impact of commercial messages on her budget

Question 29

A soft-drink manufacturer is running a promotion in which consumers text message from their cell phone a code that they can find under the bottle cap. Consumers entering can win various prizes. This is an example of which type of marketing activity aimed at children that is considered controversial?

A) violent entertainment products
B) kids' clubs
C) mobile marketing
D) commercialization in schools
E) Internet marketing

Question 30

Advertising is frequently criticized for fostering which type of values in children?

A) overly materialistic
B) self-focused
C) short-term
D) A and B
E) A, B, and C

Question 31

If consumers call a specific number, they can access games on their cell phones. The games usually involve a branded product or an event, such as the release of a movie. This is an example of which type of marketing activity aimed at children that is considered controversial?

A) violent entertainment products
B) kids' clubs
C) mobile marketing
D) commercialization in schools
E) Internet marketing

Question 32

Which of the following is a marketing activity targeted at children that is considered controversial?

A) violent entertainment products
B) kids' clubs
C) mobile marketing
D) commercialization in schools
E) all of the above

Question 33

Scott participated in a promotion that allowed him to download a ringtone for his cell phone that played the Stars Wars theme song. This is an example of which type of marketing activity aimed at children that is considered controversial?

A) violent entertainment products
B) kids' clubs
C) mobile marketing
D) commercialization in schools
E) Internet marketing

Question 34

Which of the following is referred to as the "Third Screen"?

A) television
B) computer
C) video games
D) cell phone
E) iPod

Question 35

Ads in such places as school buses, scoreboards, and bulletin boards, as well as coupons and free samples, represent which of the following?

A) in-school ads
B) ads in classrooms
C) corporate-sponsored educational materials and programs
D) corporate-sponsored contests and incentive programs
E) mobile games

Question 36

CARU reviews thousands of ads every year and has a(n) _____ success rate in resolving issues related to children's advertising.

A) 10 percent
B) 25 percent
C) 50 percent
D) 80 percent
E) over 95 percent

Question 37

Which of the following statements regarding marketing and children's health and safety is FALSE?

A) Ensuring that advertisements portray only safe uses of products is sometimes difficult, and it is a controversial area.
B) Even ads clearly not targeting children can have potentially harmful consequences.
C) In many instances, children and teenagers are exposed to advertising directed at adults.
D) Advertising of health-related products, particularly snack foods and cereals, is controversial.
E) Advertising sugared products such as presweetened breakfast cereals does increase their consumption.

Question 38

Hale noticed in a commercial that his children were watching that children riding bikes were shown not wearing a helmet. He always makes his children wear helmets while riding their bikes, but he's concerned about other children seeing this ad and thinking it's okay to not wear one. What is Hale's major area of concern regarding advertising to children?

A) the impact of commercial messages on children's values
B) the impact of commercial messages on children's health and safety
C) the impact of commercial messages on the economy
D) the impact of commercial messages on childrens cognitive development
E) the impact of commercial messages on family's budgets

Question 39

Ringtones, mobile games, and text-in contests are various types of promotional efforts regarding which controversial marketing activity aimed at children?

A) violent entertainment products
B) kids' clubs
C) mobile marketing
D) commercialization of schools
E) Internet marketing

Question 40

Corporate-sponsored educational materials and programs are also called _____.

A) propaganda programs (PPs)
B) biased educational materials (BEMs)
C) sponsored educational materials (SEMs)
D) commercial educational materials (CEMs)
E) marketing educational materials (MEMs)

Question 41

Which of the following is a major concern regarding legal and ethical behavior with respect to marketing communications?

A) the tastefulness of the ad
B) the accuracy of the information provided
C) the media used to deliver the ad
D) the creativity of the ad
E) the effectiveness of the ad

Question 42

Which of the following statements is TRUE regarding the Children's Online Privacy Protection Act (COPPA)?

A) It does not apply to nonprofits.
B) Information cannot be collected from children, used, or disclosed unless the website operator has obtained verifiable parental consent after the information has been collected.
C) The COPPA rules don't appear to be working.
D) It authorizes CARU to develop specific rules to implement the provisions of the act.
E) All of the above are true.

Question 43

Nat wants to comply with the FTC's recommendations regarding consumer-oriented commercial websites that collect personal identifying information from or about consumers. Which of the following is NOT one of the recommendations made by the FTC?

A) provide notice to consumers that are transparent
B) allow consumers to choose how information concerning them will be used in a simplified manner
C) require parental consent when collecting information from children under the age of 18
D) offer consumers reasonable access to the information a website has collected about them
E) privacy by design

Question 44

What year did the rules based on the guidelines in the Children's Online Privacy Protection Act go in to effect?

A) 1990
B) 1995
C) 1998
D) 2000
E) 2002

Question 45

Which of the following are teaching materials provided by corporations, usually for free, that come in various forms, including posters, activity sheets, and multimedia teaching aids?

A) in-school ads
B) ads in classrooms
C) corporate-sponsored educational materials and programs
D) corporate-sponsored contests and incentive programs
E) mobile games

Question 46

What is a major concern that has emerged regarding Internet marketing and children?

A) invading children's privacy
B) exploitation of children through manipulative sales techniques
C) inappropriate pop-up ads
D) A and B
E) A, B, and C

Question 47

Regulation of marketing activities aimed at adults has focused on _____.

A) product features
B) marketing communications
C) pricing practices
D) A and B
E) A, B, and C

Question 48

James is 12 years old and likes to play games on the Internet, and several of these games can be found on marketers' websites that feature characters related to their brands. Some sites require that he give information such as his name and address, and his mother is very concerned about this. Which major concern regarding Internet marketing and children does this highlight?

A) invading children's privacy
B) exploitation of children through manipulative sales techniques
C) inappropriate pop-up ads
D) inappropriate site content
E) child pornography

Question 49

Which of the following is(are) part of the FTC Privacy Protection Framework?

A) privacy by design
B) simplified choice
C) greater transparency
D) A and C
E) all of the above

Question 50

Which part of the FTC Privacy Protection Framework relates to data security, reasonable collection units, sound retention practices, and data accuracy?

A) simplified choice
B) greater transparency
C) privacy by design
D) Internet Privacy Act
E) none of the above

Question 51

The fourth grade class at Westview Elementary School won $10,000 for their school's music program because they entered a contest sponsored by Oscar Mayer bologna in which they sang the famous jingle for that brand (i.e., "my bologna has a first name, it's O-S-C-A-R....") and won it for their state. This is an example of _____.

A) in-school ads
B) ads in classrooms
C) corporate-sponsored educational materials and programs
D) corporate-sponsored contests and incentive programs
E) mobile games

Question 52

The FTC has recently put forth a new Privacy Protection Framework that includes _____.

A) incorporating consumer privacy throughout the organization
B) simplifying consumer choice
C) increasing transparency of data practices
D) A and C
E) all of the above

Question 53

What are the three major concerns regarding legal and ethical behavior with respect to marketing communications?

A) the accuracy of the information provided, the adequacy of the information provided, and the cumulative impact of marketing information on society's values
B) the accuracy of the information provided, the tastefulness of the ad, and the creativity of the ad
C) the media used, the prevalence of advertising, and the tastefulness of the ad
D) the amount of information provided, the tastefulness of the ad, and the cumulative impact of marketing information on society's values
E) the media used, the accuracy of the information provided, and the manner in which the information is provided

Question 54

Customized games that are placed on a company's website and prominently feature or integrate the company's brands and products as part of the game itself are known as _____.

A) brand games
B) adver-games
C) promo-games
D) interactive games
E) convergent games

Question 55

_____ relates to the collection and use of information from websites.

A) Online privacy
B) Online security
C) Online research
D) Online commerce
E) Online marketing

Question 56

"Royal makes tires for the Jeep Liberty" is an example of a(n) _____.

A) direct claim
B) logical implication
C) pragmatic implication
D) inferred claim
E) none of the above

Question 57

Marilyn is a recent college graduate teaching junior high school science. She has several courses she has to prepare, so she was very pleased when Alcoa Corporation provided her with a teaching unit on recycling. This teaching unit is an example of _____.

A) in-school ads
B) ads in classrooms
C) corporate-sponsored educational materials and programs
D) corporate-sponsored contests and incentive programs
E) mobile games

Question 58

Which of these provisions is NOT included in The Rule under COPPA?

A) privacy policy
B) parental notice
C) parental consent
D) confidentiality
E) All of the above are included.

Question 59

Rita has noticed when she goes to children-oriented websites with her daughter that there are clear and prominent links to privacy policies and that whenever an attempt to request information appeared, it required her consent. These things that Rita has noticed are the result of which law?

A) Telephone Consumer Protection Act
B) Children's Online Privacy Protection Act
C) Federal Do Not Call Registry
D) Children's Internet Protection Act
E) Children's Internet Act

Question 60

Which of the following is the result of concern regarding the invasion of children's privacy?

A) Telephone Consumer Protection Act
B) Children's Online Privacy Protection Act
C) Federal Do Not Call Registry
D) Children's Internet Protection Act
E) Children's Internet Act

Question 61

For years, Doan's Pills advertised that this medication is superior for relieving back pain. The FTC found this claim to be deceptive and ordered Doan's to run advertising that informed consumers of this deception in an attempt to cause consumers to unlearn the inaccurate information. What type of advertising is this known as?

A) controvertible advertising
B) redundant advertising
C) conforming advertising
D) corrective advertising
E) retractive advertising

Question 62

While government and businesses want consumers to have full disclosure, which of the following might result for consumers?

A) Information overload could occur.
B) There might be increased time to make a decision.
C) There may be an inability to make a decision.
D) All purchases become high-involvement situations.
E) Inferior choices will be made.

Question 63

The primary federal agency involved in regulating pricing activities is the _____.

A) FTA
B) FTC
C) FDA
D) FPC
E) FPA

Question 64

Implied meanings that consumers derive when interpreting language in a practical way are known as _____.

A) false claims
B) indirect claims
C) pragmatic implications
D) practical meanings
E) direct claims

Question 65

Which of the following has the purpose of ensuring that consumers are provided with adequate information?

A) Telephone Consumer Protection Act
B) truth-in-lending legislation
C) FTC Corrective Advertising Act
D) Internet Protection Act
E) FTC's unfairness authority

Question 66

New FDA package designs for cigarettes in 2012 will _____.

A) show half the package covered with verbal warnings
B) show half the package covered with visual warnings
C) state that the incidence of smoking has declined since 2005
D) A and B
E) all of the above

Question 67

What is the health risk of trans fat that prompted to government to require that the number of grams of trans fat be provided in nutrition labels on packages?

A) It raises the level of LDL (bad) cholesterol.
B) It lowers the level of HDL (good) cholesterol.
C) It raises blood sugar levels.
D) A and B
E) A, B, and C

Question 68

In several ads for Listerine over a period of more than a year, the company made statements that previous ads were not true in that Listerine cannot kill the germs that cause a cold. Which type of advertising does this illustrate?

A) controvertible advertising
B) redundant advertising
C) conforming advertising
D) corrective advertising
E) retractive advertising

Question 69

Which of the following statements is FALSE regarding corrective advertising?

A) Firms injured by false claims of competitors can request it as a remedy from the FTC.
B) The FTC believes it to be a useful tool in protecting the public.
C) It is run by a firm to cause consumers to unlearn inaccurate information they acquired as a result of the firm's earlier advertising.
D) A court ruling has challenged the conditions under which the FTC can require it.
E) The effectiveness of corrective advertising has not been debated.

Question 70

A new rule that requires marketers to list the number of grams of trans fat on a product's package is an amendment of which law?

A) Truth-in-Labeling Law
B) Nutritional Labeling and Education Act
C) Fat Labeling Act
D) Fair Packaging and Labeling Act
E) U.S. Packaging and Labeling Law

Question 71

Advertising run by a firm to cause consumers to unlearn inaccurate information they acquired as a result of the firm's earlier advertising is called _____.

A) controvertible advertising
B) redundant advertising
C) conforming advertising
D) corrective advertising
E) retractive advertising

Question 72

Marketing practices are sometimes controversial.

Question 73

Which of the following is a major issue consumer groups have concerning products?

A) Are they safe?
B) Are they environmentally sound?
C) Do they meet consumers' needs?
D) A and B
E) A, B, and C

Question 74

What are trans fats?

A) hydrogenated oils
B) fats found in animal fat
C) healthy fats
D) fats found in olive and other plant oils
E) synthetic fats

Question 75

Which law deals with nutrition labeling on products' packages?

A) Truth-in-Labeling Law
B) Nutritional Labeling and Education Act
C) Trans Fat Labeling Act
D) Fair Packaging and Labeling Act
E) U.S. Packaging and Labeling Law

Question 76

The regulation of marketing activities aimed at children focuses primarily on product safety, advertising and promotions, and child pornography.

Question 77

Which of the following consumers are LEAST likely to be able to use the information provided by marketers?

A) men
B) women
C) those who are relatively disadvantaged in terms of education and income
D) baby boomers
E) professionals who are too busy to attend to the information

Question 78

Critics of ads that emphasize beauty or sex appeal as major benefits feel that the harmful effects may be most severe for which consumers?

A) young men
B) young women
C) minorities
D) older men
E) older women

Question 79

Which of the following is the MOST difficult to regulate?

A) the explicit verbal content of ads
B) the subtle meanings implied by the visual content of ads
C) the adequacy of the information provided in ads
D) a website's privacy policy with respect to children
E) the use of corrective advertising

Question 80

Susan picked up a package of potato chips and noticed on the front of the package the words, "0 grams of trans fat." She looked at the nutrition label and noticed that listed beneath the number of total grams of fat was the number of grams of trans fat, which was zero in this case. The trans fat information appearing on the nutritional label is a result of the new label rule enacted by the ______.

A) NAD
B) FTC
C) NLEA
D) OPPA
E) FDA