Deck 4: Environmental, Regulatory and Ethical Issues

Question 1

Marketing communicators in their various capacities rarely are faced with decisions that have ethical ramifications.

Answer 1

False

Question 2

Costs of regulation include cost of complying,enforcement costs,and costs resulting from unintended side effects.

Answer 2

True

Question 3

The FDA regulates the brewing and liquor industries.

Answer 3

False

Question 4

One criticism of advertising is that it creates and perpetuates stereotypes.

Question 5

Over 60 percent of advertising is found to be deceptive.

Question 6

Especially open to ethical debate is the practice of targeting products and communications efforts to segments that,for various psychosocial and economic reasons,are vulnerable to marketing communications,such as children and economically disadvantaged groups.

Question 7

The FTC believes that the entertainment industry to regulate itself regarding the targeting of children with advertisements for violent films,video games,and music,even if the ads are not deemed deceptive or unfair.

Question 8

Publicity differs from advertising because it is not a form of mass communication.

Question 9

A slotting allowance is a standard business practice that benefits retailers and manufacturers equally.

Question 10

The Golden Rule test states that you should take actions that would be viewed as proper by an objective panel of your professional colleagues.

Question 11

Four aspects of packaging that involve ethical issues include label information,packaging graphics,packaging safety,and environmental implications of packaging.

Question 12

Big Tech store is required to pay a slotting allowance to manufacturers for each item sold so that the retailer is allowed to restock the manufacturer's products.

Question 13

Billboard advertising of alcohol products is restricted under the Master Settlement Agreement between the federal government and firms in the alcohol industry.

Question 14

The mission of the National Association of Advertising (NAA)is to improve and strengthen the ad agency business,to advocate advertising,to influence public policy,to resist advertising-related legislation that it regards as unwise or unfair,and to work with government regulators to achieve desirable social and civic goals.

Question 15

Regulation is justified when consumer decisions are based on false information.

Question 16

The FTC is the U.S.government agency with primary responsibility for regulating advertising at both the federal and state levels.

Question 17

Consumer privacy is an ethical issue that transcends all marcom activities.

Question 18

Growing evidence indicates that much human behavior is not under conscious control.

Question 19

For marketing communicators,ethics involves matters of right and wrong,or moral,conduct pertaining to any aspect of marketing communications.

Question 20

A regulatory disadvantage is increased prices resulting from a reduction in a seller's "informational market power." 

Question 21

The FTC is responsible for regulating information on the packages of food and drug products.

Question 22

According to the FTC,a misrepresentation is said to occur when qualifying information necessary to prevent a practice,claim,representation,or reasonable expectation or belief from being misleading is not disclosed.

Question 23

The major green communications efforts involve advertisements that promote green products,environmentally friendly packaging,seal-of-approval programs that promote green products,cause-oriented communication efforts that support green products,and point-of-purchase display materials that are environmentally efficient.

Question 24

A false claim is,by definition,deceptive.

Question 25

In the past,billboards advertising tobacco and alcohol were disproportionately more likely to appear in _____.

A) Southern states 
B) rural areas 
C) California 
D) inner-city areas 
E) suburban areas

Question 26

Many critics consider it unethical to market food products to children,especially through practices using cartoon characters to sell sugared cereals and non-nutritious snacks because _____.

A) obesity is a major problem with America's children 
B) these products are expensive 
C) children do not have the maturity to make nutritious food choices 
D) children believe everything they see and hear 
E) the ads are deceptive

Question 27

There is considerable concern regarding the marketing of beer and other alcoholic beverages to teens and young adults.A study by a watchdog group at Georgetown University reported that _____ of alcohol advertising was more likely seen by youths than adults.

A) three-quarters 
B) less than five percent 
C) seventy percent 
D) one-half 
E) one-quarter

Question 28

The _____ has issued a regular series of reports,titled Marketing Violent Entertainment to Children,that criticizes the entertainment industry for targeting children with advertisements for violent films,video games,and music.

A) FDA 
B) NAD 
C) CARU 
D) FTC 
E) NARC

Question 29

A material representation involves information that is important to consumers and that is likely to influence their choice or conduct regarding a product.

Question 30

The advertising clearance process is a form of self-regulation undertaken by ad media that takes place behind the scenes before a commercial or other advertisement reaches consumers.

Question 31

AAAA is a self-regulatory group that monitors children's television programming and commercials.

Question 32

Corrective advertising is designed to punish a firm for deceiving consumers.

Question 33

One of the FTC's guidelines for environmental marketing claims states that "claims should not overstate an environmental attribute or benefit,either expressly or by implication." 

Question 34

State attorneys general have played an active role in the regulation of marketing communications.

Question 35

Cause-oriented marketing is practiced when companies sponsor or support worthy causes.

Question 36

The NAD cannot impose fines on deceptive advertisers,but the NARB can.

Question 37

In Germany,the White Angel seal represents a promise to consumers that a product carrying an environment claim is in fact legitimate.

Question 38

In a marketing communications context,_____ involves matters of right and wrong,or moral,conduct pertaining to any aspect of marketing communications.

A) regulation 
B) responsibility 
C) social responsibility 
D) social awareness 
E) ethics

Question 39

Green Seal,a Washington,D.C.,nonprofit organization,has developed standards and awarded seals to companies that meet environmental standards.

Question 40

Unfair advertising is also deceptive advertising.

Question 41

Which of the following ads targets a vulnerable population? 

A) a compact car that fits into small parking spaces for city dwellers 
B) e-cigarettes for adults 
C) nutritious breakfast cereal for children 
D) sports equipment for athletes 
E) strollers for new parents with infants

Question 42

In large part,ethical behavior is a matter of an individual's _____.

A) education 
B) age 
C) gender 
D) income 
E) integrity

Question 43

In the AAAA's Code of Ethical Standards,it is stated that "...we will not knowingly create advertising that contains _____.

A) false, or misleading statements or exaggerations, visual or verbal 
B) statements, suggestions, or pictures offensive to public decency or minority segments of the population 
C) price claims that are misleading 
D) testimonials that do not reflect the real opinion of the individual(s) involved 
E) All of these are correct.

Question 44

Regulation of advertising may result in buyers switching to another product or reducing their level of consumption after regulation is imposed.This is an example of _____ regulation.

A) unfair practices 
B) covert marketing practices 
C) information regulation in 
D) unintended side effects of 
E) Federal Trade Commission

Question 45

The Golden Rule ethical test states that _____.

A) you should take only actions that would be viewed as proper by an objective panel of your professional colleagues 
B) you would, regardless of the circumstances, always view certain acts or decisions as unethical and others as ethical 
C) you should act in a way you would want others to act toward you 
D) you would examine the expected outcome of an act, and if it creates more good than bad, then the act is ethical 
E) an act is ethical if you would feel comfortable explaining it on television

Question 46

Which of the following is considered an ethical issue in advertising? 

A) creation and perpetuation of stereotypes 
B) waste of economic resources 
C) prices that earn a profit 
D) product quality and performance 
E) release of a new product

Question 47

Which of the following statements is true regarding advertising's manipulative power? 

A) Bad consumption decisions are proof of advertising's manipulative power over consumers. 
B) The only way marketing communications can actually influence consumers is through overt, non-subtle ways. 
C) A primed goal state generated by advertising remains an active driver of judgments and behavior over the long run. 
D) Advertising practitioners do not have any ability to influence consumers in very subtle ways. 
E) People, when consciously aware that attempts are being made to persuade or influence them, have the cognitive capacity to resist efforts to motive them in a direction they wish not to be moved.

Question 48

Target marketing could be considered unethical when the targeting is concerned not with fulfilling consumers' needs and wants,but rather with exploiting consumers' _____.

A) economic status 
B) lack of information 
C) vulnerability 
D) demographic profiles 
E) social status

Question 49

According to the _____ test,you should take only actions that would be viewed as proper by an objective panel of your colleagues.

A) Golden Rule 
B) professional ethics 
C) TV 
D) moral idealism 
E) relativity

Question 50

Ethical issues in packaging can involve _____.

A) label information 
B) packaging graphics 
C) packaging safety 
D) environmental implications of packaging 
E) All of these are correct.

Question 51

The regulation of the brewing and liquor industries is done by the _____.

A) Federal Trade Commission 
B) Food and Drug Administration 
C) Bureau of Alcohol, Tobacco, and Firearms 
D) National Advertising Division 
E) National Advertising Review Board

Question 52

Bill purchased camping equipment that he didn't really need.Which of the following ethical areas did Bill blame for his purchase? 

A) targets economically disadvantaged consumers 
B) creates and perpetuates stereotypes 
C) is untruthful and deceptive 
D) is manipulative 
E) plays on people's fears and insecurities

Question 53

The practice of marketers in one country using brand names for their products that are virtually the same as the names of established brands from another country is known as _____.

A) piracy 
B) trade dress violation 
C) private label branding 
D) ambush marketing 
E) guerilla branding

Question 54

Joan works at a major advertising agency and uses the code of ethical standards promulgated by the American Association of Advertising Agencies to guide her in making ethical decisions when developing ads for her agency's clients.What test is she applying to guide her behavior? 

A) Golden Rule test 
B) professional ethics test 
C) TV test 
D) peer test 
E) generally-accepted practices test

Question 55

Jose Ortega considered his options carefully to decide how his company should respond to a customer's complaint.In the end,he decided to treat the customer like he hoped a company would treat him if he reported a problem with a product he bought.He gave the customer a refund.He is using the _____ test.

A) utilitarianism 
B) Golden Rule 
C) professional ethics 
D) TV 
E) moral idealism

Question 56

_____ is the most important ethical issue that is unique to the online medium.

A) Privacy 
B) Slotting fees 
C) Negative publicity 
D) Piracy 
E) Short filling

Question 57

General Mills is introducing a new line of barbecue sauce,and grocery retailers are requiring that General Mills pay them a per-store fee for their willingness to handle the new product.This fee is known as a _____ fee.

A) placing 
B) purchasing 
C) selling 
D) slotting 
E) security

Question 58

Regulators have been most active in the area of _____.

A) advertising 
B) personal selling 
C) sales promotion 
D) packaging 
E) publicity

Question 59

When are sweepstakes and contests unethical? 

A) The prize has no monetary value. 
B) The prize is a new product. 
C) Everyone receives a prize of some sort. 
D) Consumers think their odds of winning are greater than they really are. 
E) The sweepstakes or contests are used for publicity.

Question 60

The organization that promulgated a code of high ethical standards for advertising in 1924,and updated the code in 1990 is the _____.

A) Federal Trade Commission 
B) National Advertising Review Council 
C) American Advertising Federation 
D) Children's Advertising Review Unit 
E) American Association of Advertising Agencies

Question 61

A(n)_____ involves information that is important to consumers and that is likely to influence their choice or conduct regarding a product.

A) reasonable representation 
B) material representation 
C) factual representation 
D) objective representation 
E) unfair representation

Question 62

Which of the following is an element of the definition of unfair advertising? 

A) It is not profitable for the advertiser. 
B) It causes an injury that is not reasonably avoidable by consumers. 
C) It is misleading from the viewpoint of a reasonable consumer. 
D) It is beneficial for the consumer. 
E) It would not encourage a reasonable consumer to purchase the product. 

Question 63

Jake and thousands of others like him purchased a product advertised on TV that claimed instant hair growth with one application.Jake is representative of the many purchasers of this product in that he is highly sensitive about his recent balding.Because the advertised product is ineffective,the FTC would likely consider this a case of _____ advertising.

A) unfair 
B) deceptive 
C) unreasonable 
D) unrepresentative 
E) unethical

Question 64

The FTC's policy on deception is that the act or practice must be considered from the perspective of a _____.

A) reasonable consumer 
B) probable consumer 
C) competitor 
D) government agency 
E) child

Question 65

The Bamboozle Corporation was finally indicted for years of deceptive advertising.The FTC required the company to spend $5 million on television commercials over the next six months to rectify any deceptive impressions it created in consumers' minds.In other words,the FTC required Bamboozle Corporation to undertake a(n)_____ program.

A) corrective advertising 
B) rectification 
C) unfairness removal 
D) anti-deception 
E) make-good

Question 66

_____ is based on the premise that a firm that misleads consumers should have to use future advertisements to rectify the deceptive impressions it has created in consumers' minds.

A) Rectification advertising 
B) Unfairness removal 
C) Anti-deception advertising 
D) Regulated advertising 
E) Corrective advertising

Question 67

What are the three basic elements of the FTC's current policy determining whether or not an ad is deceptive? 

A) misleading, reasonable consumer, and material 
B) misleading, typical consumer, and injury 
C) comparative ad, misleading, and reasonable consumer 
D) injury, not avoidable, and material 
E) injury, reasonable consumer, and false

Question 68

The XYZ Brewery Corporation undertook an advertising campaign which appeared to encourage pre-legal-drinking-aged teenagers to consume its high-powered malt liquor.The FTC can take action against XYZ on grounds that the advertising campaign is in violation of the _____ doctrine.

A) substantiation 
B) ethics 
C) unfairness 
D) responsibility 
E) deceptive

Question 69

Which of the following is a step in the advertising clearance process? 

A) regulation by the FTC 
B) regulation by state agencies 
C) media approval 
D) corrective advertising 
E) legal appeals after the ad is found to be deceptive

Question 70

The _____ is the U.S.government agency that has primary responsibility for regulating information on the packages of food and drug products.

A) NARB 
B) NAD 
C) FTC 
D) FDA 
E) BBB

Question 71

The self-regulatory monitoring of children's television programs and commercials is done by the _____.

A) FTC 
B) FDA 
C) NAD 
D) CARU 
E) NARB

Question 72

The criteria used to evaluate whether a business act is unfair includes the consideration of whether the act is _____.

A) profitable 
B) time-consuming 
C) immoral 
D) difficult 
E) popular

Question 73

The _____ is a form of self-regulation undertaken by ad media that takes place behind the scenes before a commercial or other advertisement reaches consumers.

A) ad review process 
B) advertising clearance process 
C) NAD review process 
D) NARB review process 
E) advertising screening process

Question 74

What did Kraft state as its defense when the FTC judged the ad for Kraft Singles deceptive? 

A) The claim made in the ad was not false. 
B) Reasonable consumers wouldn't believe the claim regardless of whether it was true or false. 
C) The claim was merely puffery and did not state a fact. 
D) The claim was immaterial. 
E) They agreed the claim made in the ad was false, but other competitors were making the same false claim.

Question 75

Advertising of prescription drugs that is directed toward consumers is known as _____.

A) direct marketing 
B) direct-to-consumer advertising 
C) direct-response advertising 
D) balanced-perspective advertising 
E) missionary advertising

Question 76

The _____ is the U.S.government agency that has primary responsibility for regulating advertising at the federal level.

A) Food and Drug Administration (FDA) 
B) National Advertising Review Board (NARB) 
C) Better Business Bureau (BBB) 
D) National Advertising Division (NAD) 
E) Federal Trade Commission (FTC)

Question 77

In which country has advertising self-regulation flourished? 

A) Canada 
B) France 
C) United States 
D) United Kingdom 
E) All of these are correct.

Question 78

Elyssa notices an advertisement with information that is contrary to fact.According to the FTC,this is _____.

A) deceptive 
B) a misrepresentation 
C) misguided 
D) material 
E) unfair

Question 79

The advertising clearance process involves which groups of people? 

A) advertising agency, advertiser, media, and the audience 
B) advertiser, FTC, FCC, and FDA 
C) advertiser, lawyers, NAD, and possibly the NARB 
D) advertiser, lawyers, FTC, and the NAD 
E) advertiser, lawyers, advertising agency, and the media

Question 80

Campbell's Soup used glass marbles to displace the chicken,vegetables,and star-shaped noodles in advertisements for it Chicken and Stars soup because,without them,all the solid matter sank to the bottom and consumers couldn't see the "stars." The ad was ruled deceptive because Campbell's did not tell consumers that the soup really did not contain as much meat,vegetables,and noodles as it appeared due to the prop used to photograph the ads.This ad was most likely be considered misleading due to _____.

A) immateriality 
B) hyperbole 
C) exaggeration 
D) omission 
E) unreasonableness