Reference no: EM132210297
1. In countering the criticism that marketing capitalizes on human weaknesses, marketers would state that
marketing is only responding to human needs, wants, and desires
they have to advertise because their competitors advertise
people have the freedom to make decisions and marketing never forces anyone to choose a product
marketing is only providing information, so consumers can make an intelligent decision
2. The Consumer Product Safety Commission (CPSC) is responsible for ensuring that food is safely processed and packaged.
True
False
3. When complaints about advertising are received by the National Advertising Division (NAD) or the Children’s Advertising Review Unit (CARU) of the BBB, the respective agency will
investigate the complaint, then turn it over to the National Advertising Review Board (NARB) for a decision
collect information and evaluate data concerning the case to determine if the complaint is legitimate
examine the case for substantiation and issue a cease-and-desist order if a violation is found
appoint three judges to evaluate the case
4. The danger to a company in appealing an FTC case to the Court of Appeals is that
the Court has power to issue cease-and-desist orders
it is harder to convince the Court that a violation has not occurred
the Court has power to provide consumer redress, i.e. to levy civil penalties
the Court can require corrective advertising
5. In evaluating claims made in advertisements and marketing communications, one of the principles the FTC uses in the evaluation is substantiation, which means the firm must be able to prove or backup any claim with independent, scientific evidence.
True
False
6. A trade regulation ruling is a ruling made by the Food and Drug Administration concerning a marketing practice and applies to all of the firms within the industry.
True
False
7. The federal agency that oversees the manufacture, sale, and distribution of tobacco and alcohol is the
Federal Communications Commission (FCC)
Bureau of Alcohol, Tobacco, and Firearms (BATF)
U.S. Post Service (USPS)
Food and Drug Administration (FDA)
8. A cease and desist order is issued by an administrative law judge and requires a company to
refrain from any similar practices in the future
immediately stop the disputed practice and to refrain from any similar practices in the future
immediately stop the disputed practice and to run corrective advertisements
immediately stop the disputed practice
9. While marketing has at times been conducted in unfair and unethical ways, if conducted ethically, marketing can be a powerful force in the success of organizations and provide consumers the opportunity to become more enlightened about product purchases.
False
True
10. The two overriding principles behind a number of pieces of legislation designed to regulate marketing and business activities is 1) to ensure free trade and open competition among firms and 2) to ensure firms do not mislead consumers with false and misleading marketing activities.
False
True
11. Teenagers are an attractive target market to companies because they make up a large demographic group and it is possible for marketers to create brand loyalty at a young age.
True
False
12. Lynne is the marketing director for a national toy company. When faced with an ethically questionable issue, her decision will be influenced by all of the following factors except
social influences
personal background and experiences
consequences of previous actions she took in similar ethically questionable situations
individual consumers who purchase the toys
13. _____ is(are) personal beliefs or standards to guide an individual’s actions.
Puffery
Culture
Ethics
Morals
14. When marketers face the criticism that marketing overemphasizes materialism, a common defense is that
materialism is only a problem in free-world countries
materialism is caused by easy access to credit cards
marketing is just responding to the materialistic desires of society
materialism is a product of a society’s culture, not of marketing
15. Advertisements that offer male consumers products that will enhance their personal appearance and sexual performance are subject to the criticism that marketing
causes people to buy more than they can afford
shapes inappropriate cultural values
capitalizes on human weaknesses
increases the prices of goods and services
16. The federal agency that is responsible for ensuring free trade among businesses and which investigates false, deceptive, and misleading claims in advertising and other marketing material is the
Consumer Product Safety Commission (CPSC)
Bureau of Alcohol, Tobacco, and Firearms (BATF)
Federal Trade Commission (FTC)
Federal Communications Commission (FCC)
17. Sandra believes that one reason she owes over $12,000 on her credit cards is all of the advertising she sees on television for various products. This is an example of the ethical concern that marketing
increases the prices of goods and services
capitalizes on human weaknesses
causes people to buy more than they can afford
shapes inappropriate cultural values
18. In an investigation of misleading or deceptive advertising, if the FTC feels a violation has occurred, the first step in resolving the issue will be to issue a consent order.
False
True
19. The federal agency that regulates and oversees the manufacturing, distribution, and labeling of food and drugs is the
Federal Communications Commission (FCC)
U.S. Post Service (USPS)
Bureau of Alcohol, Tobacco, and Firearms (BATF)
Food and Drug Administration (FDA)
20. The legislation that prohibits charging different prices to different buyers of the same merchandise and requires sellers that offer a service to one buyer to make the same offer of service available to all buyers is the
Clayton Act
Federal Trade Commission Act
Robinson-Patman Act
Lanham Act
21. In bait and switch legal cases, the most difficult test of a bait and switch tactic to prove is that
the retailer intentionally did not stock enough of a sale item with the intent of running out, thus causing customers to switch to a higher-priced model
the advertisement used deceptive and misleading information
salespeople used undue pressure to influence customers to purchase a higher-priced model
the salespeople made false claims about the advertised model
22. According to the FTC, an advertisement or marketing communication is deemed to be deceptive or misleading when a substantial number of people or the “typical person” is left with a false impression or misrepresentation of the product and/or the misrepresentation induces people or the typical person to make a purchase.
True
False
23. Advertisers spend more than _____ a year on marketing products to children ages 4 to 12.
$5 billion
$15 billion
$9 billion
$25 billion
24. Advertisements that focus on a person’s physical appearance, such as a person’s weight, are an example of which ethical issue that has been raised about marketing?
marketing capitalizes on human weaknesses
marketing causes people to buy more than they can afford
marketing shapes inappropriate cultural values
marketing overemphasizes materialism
25. Personal beliefs used as standards in guiding an individual’s actions are also known as values.
True
False
26. Underlying the criticism that marketing overemphasizes materialism is the assumption that
people cannot control their spending
materialism is wrong
bankruptcy is easy to obtain
credit cards and debt is bad for society
27. When faced with the criticism that marketing violates a consumer’s right to privacy, marketers’ typical response is that
collecting information about consumers is legal
they are not interested in a single individual but groups of people who have similar interests and characteristics
consumers have already given the information out, they are just collecting what has already been given by the consumer
they are protected by the first amendment to the constitution
28. Companies not satisfied with the ruling of the full FTC Commission can appeal the case to the U.S. Court of Appeals and even to the U.S. Supreme Court.
False
True