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Advertising and Integrated Brand Promotion 8th Edition By Thomas O’Guinn – Test Bank

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Advertising and Integrated Brand Promotion 8th Edition By Thomas O’Guinn – Test Bank

 Sample Questions

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Ch_04__Social__Ethical__and_Regulatory_Aspects_of_Advertising_and_Promotion_8e

 

 

1. Societies tend to monitor advertising to determine what is irresponsible, unethical, or illegal. Despite social shifts and technological advances, a culture’s views on what is acceptable and unacceptable change.

  a. True
  b. False

 

ANSWER:   True
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-1
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Comprehension
DATE CREATED:   12/12/2017 2:42 AM
DATE MODIFIED:   12/12/2017 2:44 AM

 

2. As a promotional tool and an industry, advertising does not get a lot of attention, scrutiny, and criticism because it is so conspicuous and has established a global presence.

  a. True
  b. False

 

ANSWER:   False
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-1
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Promotio
KEYWORDS:   Bloom’s: Comprehension
DATE CREATED:   12/12/2017 2:46 AM
DATE MODIFIED:   12/12/2017 2:48 AM

 

3. The social aspects of advertisements are not important to consider.

  a. True
  b. False

 

ANSWER:   False
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-1
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Comprehension
DATE CREATED:   12/12/2017 2:48 AM
DATE MODIFIED:   12/12/2017 2:50 AM

 

4. Critics of advertising claim that advertising carries too much product information and that most advertising is unbiased, comprehensive, and inherently transparent.

  a. True
  b. False

 

ANSWER:   False
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-1
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Comprehension
DATE CREATED:   12/12/2017 2:50 AM
DATE MODIFIED:   12/12/2017 2:52 AM

 

5. Proponents of advertising claim that advertisements do much more than just “shuffling of total demand,” but contribute to the increase of total demand—showing that advertising is good for the economy.

  a. True
  b. False

 

ANSWER:   True
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-1
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Comprehension
DATE CREATED:   12/12/2017 2:52 AM
DATE MODIFIED:   12/12/2017 2:54 AM

 

6. Critics of advertising claim that advertising addresses a wide variety of basic human needs.

  a. True
  b. False

 

ANSWER:   False
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-1
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Comprehension
DATE CREATED:   12/12/2017 2:54 AM
DATE MODIFIED:   12/12/2017 2:56 AM

 

7. Advertisers of “controversial products” attempt to show social responsibility in advertising, such as beer companies spending millions a year addressing responsible drinking.

  a. True
  b. False

 

ANSWER:   True
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-1
NATIONAL STANDARDS:   United States – BUSPROG: Ethics
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Comprehension
DATE CREATED:   12/12/2017 2:56 AM
DATE MODIFIED:   12/12/2017 2:58 AM

 

8. Critics of advertising argue that advertising reduces a tendency to conformity and cuts down on status-seeking behavior.

  a. True
  b. False

 

ANSWER:   False
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-1
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Comprehension
DATE CREATED:   12/12/2017 2:58 AM
DATE MODIFIED:   12/12/2017 3:00 AM

 

9. The massive consumption that advertising upholds and glorifies is actually quite good for American society, and for other cultures around the world.

  a. True
  b. False

 

ANSWER:   True
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-1
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Customer
KEYWORDS:   Bloom’s: Comprehension
DATE CREATED:   12/12/2017 3:00 AM
DATE MODIFIED:   12/12/2017 3:02 AM

 

10. Subliminal advertisement relates with embedding images and messages into an advertisement that influence the unconscious minds of people; however, it is not proven to be effective.

  a. True
  b. False

 

ANSWER:   True
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-1
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Comprehension
DATE CREATED:   12/12/2017 3:02 AM
DATE MODIFIED:   12/12/2017 3:04 AM

 

11. Advertising contributes to art and culture, and art and culture can be seen in advertising, too.

  a. True
  b. False

 

ANSWER:   True
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-1
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Comprehension
DATE CREATED:   12/12/2017 3:04 AM
DATE MODIFIED:   12/12/2017 3:05 AM

 

12. In advertising, deception refers to making transparent statements in advertisements.

  a. True
  b. False

 

ANSWER:   False
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-2
NATIONAL STANDARDS:   United States – BUSPROG: Ethics
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   12/12/2017 3:06 AM
DATE MODIFIED:   12/12/2017 3:07 AM

 

13. There are reasons it would be hard to make laws against emotional appeals in ads, since even if they seem exaggerated or inaccurate, they are unquantifiable; thus, there is no way to prove this.

  a. True
  b. False

 

ANSWER:   True
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-2
NATIONAL STANDARDS:   United States – BUSPROG: Ethics
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Comprehension
DATE CREATED:   12/12/2017 3:08 AM
DATE MODIFIED:   12/12/2017 3:09 AM

 

14. The calls for restrictions on advertising to children over the years have been based on very few concerns.

  a. True
  b. False

 

ANSWER:   False
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-2
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Customer
KEYWORDS:   Bloom’s: Comprehension
DATE CREATED:   12/12/2017 3:52 AM
DATE MODIFIED:   12/12/2017 3:54 AM

 

15. The FTC has regularly issued warnings to tobacco companies about ads that have been shown to cause young people to start smoking, backed up by decades of substantial evidence to this effect published by reputable medical journals.

  a. True
  b. False

 

ANSWER:   False
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-2
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Custome
KEYWORDS:   Bloom’s: Comprehension
DATE CREATED:   12/12/2017 3:54 AM
DATE MODIFIED:   12/12/2017 3:56 AM

 

16. The primary area of advertising regulation is unsolicited or direct marketing.

  a. True
  b. False

 

ANSWER:   False
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-3
NATIONAL STANDARDS:   United States – BUSPROG: Ethics
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   12/12/2017 3:56 AM
DATE MODIFIED:   12/12/2017 3:57 AM

 

17. The FTC’s regulations on deception have no authority over omissions or missing information about a product; they only cover false statements or misleading claims made by the advertiser.

  a. True
  b. False

 

ANSWER:   False
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-3
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   12/12/2017 3:57 AM
DATE MODIFIED:   12/12/2017 3:59 AM

 

18. Vertical cooperative advertising is an advertising technique whereby a manufacturer and dealer share the expense of advertising.

  a. True
  b. False

 

ANSWER:   True
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-3
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   12/12/2017 3:59 AM
DATE MODIFIED:   12/12/2017 4:00 AM

 

19. An advertisement for a smartphone that compares itself to the smartphone of another firm is legal in the U.S., even if the ad mentions brand-name goods produced by another firm.

  a. True
  b. False

 

ANSWER:   True
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-3
NATIONAL STANDARDS:   United States – BUSPROG: Ethics
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Comprehension
DATE CREATED:   12/12/2017 4:01 AM
DATE MODIFIED:   12/12/2017 4:02 AM

 

20. Consumer groups have been much less successful as the FTC in restricting children’s advertising.

  a. True
  b. False

 

ANSWER:   False
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-3
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Customer
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   12/12/2017 4:02 AM
DATE MODIFIED:   12/12/2017 4:04 AM

 

21. The FTC’s advertising substantiation program, set up in the 1970s, requires that documented evidence supporting any claims is not to be available to consumers.

  a. True
  b. False

 

ANSWER:   False
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-3
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   12/12/2017 4:04 AM
DATE MODIFIED:   12/12/2017 4:05 AM

 

22. In a cease-and-desist order by the FTC, an advertiser agrees voluntarily to stop running the ad but doesn’t have to

admit any guilt or wrongdoing.

  a. True
  b. False

 

ANSWER:   False
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-3
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   12/12/2017 4:05 AM
DATE MODIFIED:   12/12/2017 4:07 AM

 

23. When a professional athlete begins endorsing a line of energy bars and protein drinks, he is required to genuinely demonstrate using the product in the advertisement, although he does not have to utilize the product in day-to-day life.

  a. True
  b. False

 

ANSWER:   False
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-3
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Application
DATE CREATED:   12/12/2017 4:08 AM
DATE MODIFIED:   12/12/2017 4:09 AM

 

24. State governments have a lot of authority over promotional activities of firms, and since most companies conduct interstate commerce, any violations are federal issues.

  a. True
  b. False

 

ANSWER:   False
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-3
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   12/12/2017 4:10 AM
DATE MODIFIED:   12/12/2017 4:11 AM

 

25. Supporters of industry self-regulation claim that self-regulation helps avoid unnecessary government meddling.

  a. True
  b. False

 

ANSWER:   True
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-4
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Comprehension
DATE CREATED:   12/12/2017 4:11 AM
DATE MODIFIED:   12/12/2017 4:13 AM

 

26. The National Advertising Division (NAD) was empowered to create and enforce strict standards for packaging, labeling, distribution, and merchandising through its National Advertising Review Board (NARB).

  a. True
  b. False

 

ANSWER:   False
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-4
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   12/12/2017 4:13 AM
DATE MODIFIED:   12/12/2017 4:14 AM

 

27. Examples of divisions within a local Better Business Bureau—merchandise, financial, and solicitations—investigate

advertising practices of companies in their geographic area.

  a. True
  b. False

 

ANSWER:   True
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-4
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   12/12/2017 4:18 AM
DATE MODIFIED:   12/12/2017 4:20 AM

 

28. Consumer and industry groups are free to make attempts at shaping and restricting the advertising process, but in reality have little voice or power.

  a. True
  b. False

 

ANSWER:   True
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-4
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Comprehension
DATE CREATED:   12/12/2017 4:20 AM
DATE MODIFIED:   12/12/2017 4:21 AM

 

29. The CAN SPAM Act outlaws all unsolicited emails.

  a. True
  b. False

 

ANSWER:   False
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-4
NATIONAL STANDARDS:   United States – BUSPROG: Technology
STATE STANDARDS:   United States – OH – DISC: Online/Computer
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   12/12/2017 4:21 AM
DATE MODIFIED:   12/12/2017 4:22 AM

 

30. The main restriction of direct mail sweepstakes, as imposed by Congress, involves the requirement that they are randomly and fairly distributed to a wide range of communities and addresses throughout the 50 states.

  a. True
  b. False

 

ANSWER:   False
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-4
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   12/12/2017 4:23 AM
DATE MODIFIED:   12/12/2017 4:24 AM

 

31. The first government restriction on telemarketing required companies to remove households from their dialing lists when residents requested this.

  a. True
  b. False

 

ANSWER:   False
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-4
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   12/12/2017 4:30 AM
DATE MODIFIED:   12/12/2017 4:31 AM

 

32. The field of public relations is not restricted by the same types of laws as other business elements of the promotional and marketing mix.

  a. True
  b. False

 

ANSWER:   True
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-4
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   12/12/2017 4:31 AM
DATE MODIFIED:   12/12/2017 4:33 AM

 

33. Which of the following is one of the four major aspects of advertising that lower the overall cost of products, according to proponents?

  a. Market segmentation
  b. Operating costs
  c. Inelasticity of demand
  d. Economies of scale

 

ANSWER:   d
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-1
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Pricing
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   12/12/2017 4:33 AM
DATE MODIFIED:   12/12/2017 4:35 AM

 

34. The cost of products is lowered:

  a. when there are high success rates of a product.
  b. by lowering the economies of scale of a product.
  c. when there is a high inelasticity of demand for a product.
  d. when there are little or no competitors with a similar product.

 

ANSWER:   a
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-1
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Pricing
KEYWORDS:   Bloom’s: Comprehension
DATE CREATED:   12/12/2017 4:35 AM
DATE MODIFIED:   12/12/2017 4:37 AM

 

35. Which of the following forms the lowest order of needs in Maslow’s hierarchy of needs theory?

  a. Physiological needs
  b. Needs for affiliation
  c. Self-actualization needs
  d. Intrinsic needs

 

ANSWER:   a
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-1
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Customer
KEYWORDS:   Bloom’s: Comprehension
DATE CREATED:   12/12/2017 4:37 AM
DATE MODIFIED:   12/12/2017 4:40 AM

 

36. According to Maslow’s hierarchy of needs structure, ads for food or health care products can be thought of as promotions for products that address:

  a. physiological needs.
  b. love and belonging needs.
  c. self-actualizing needs.
  d. esteem needs.

 

ANSWER:   a
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-1 4-1c
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Product
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   12/12/2017 4:40 AM
DATE MODIFIED:   12/12/2017 4:42 AM

 

37. Many consumers buy products that they perceive to have recognition, prestige and status, which would be considered ________ needs under Maslow’s hierarchy theory.

  a. growth
  b. affiliation
  c. self-actualization
  d. esteem

 

ANSWER:   d
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-1
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Comprehension
DATE CREATED:   12/12/2017 4:42 AM
DATE MODIFIED:   12/12/2017 4:44 AM

 

38. A high-end specialty store, recognized nationwide for its prestigious reputation, is busy with customers eyeing and buying costly items of clothing with designer labels. They’re also adding $400 purses, $500 shoes, and $1,000 bracelets and necklaces to their ensembles. Which of the following basic needs of Maslow’s Hierarchy are most likely being fulfilled by these purchases?

  a. Extrinsic needs
  b. Need for affiliation
  c. Esteem needs
  d. Physiological needs

 

ANSWER:   c
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-1
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Customer
KEYWORDS:   Bloom’s: Application
DATE CREATED:   12/12/2017 4:45 AM
DATE MODIFIED:   12/12/2017 4:47 AM

 

39. According to Maslow’s hierarchy of needs theory, which of the following is the highest order of all human needs?

  a. Esteem needs
  b. Physiological needs
  c. Safety needs
  d. Self-actualization needs

 

ANSWER:   d
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-1
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Customer
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   12/12/2017 4:48 AM
DATE MODIFIED:   12/12/2017 4:50 AM

 

40. Stephen Fox, a history and social observer, concludes that the history of American advertisement has been:

  a. genuine and trustworthy.
  b. simple and smart.
  c. irrelevant and incoherent.
  d. money-mad and hedonistic.

 

ANSWER:   d
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-1
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   12/12/2017 4:50 AM
DATE MODIFIED:   12/12/2017 4:52 AM

 

41. In their “Campaign for Real Beauty,” the people creating the Dove ads attempted to be realistic, show sensitivity, and fight stereotypes by featuring:

  a. plus-size models who do not fit the narrow norm of beauty.
  b. women, who were not models, displaying various ethnicities, looks, and sizes.
  c. both men and women using Dove products.
  d. endorsements by famous elderly actresses with young-looking skin.

 

ANSWER:   b
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-1
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Application
DATE CREATED:   12/12/2017 4:52 AM
DATE MODIFIED:   12/12/2017 4:55 AM

 

42. Subliminal advertising refers to:

  a. influencing people to buy things via word of mouth advertisement.
  b. providing offers to the public that would stimulate them to buy their products.
  c. exaggerating the features of a product and providing assurances to stimulate people to buy a product.
  d. embedding hidden messages or images within an advertisement.

 

ANSWER:   d
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI: 19.4-1
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Customer
KEYWORDS:   Bloom’s: Comprehension
DATE CREATED:   12/12/2017 4:55 AM
DATE MODIFIED:   12/12/2017 5:03 AM

 

43. Well-known illustrator Andy Warhol felt strongly that:

  a. visual manifestations of a sick society were being overtaken with consumerism and greed.
  b. art was for the people and the most accessible form of art is advertising.
  c. pioneering graphic innovations visually displayed the power of elitism.
  d. flashy images and tasteless visuals cluttered the cultural landscape.

 

ANSWER:   b
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-1
NATIONAL STANDARDS:   United States – BUSPROG: Diversity
STATE STANDARDS:   United States – OH – DISC: Customer
KEYWORDS:   Bloom’s: Comprehension
DATE CREATED:   12/12/2017 5:03 AM
DATE MODIFIED:   12/12/2017 5:06 AM

 

44. Which of the following best describes stealth sponsorship?

  a. It is when corporations pay journalists to give negative opinions about their competitors in their editorials.
  b. It is when corporations embed hidden messages in social media advertisements to unconsciously stimulate people to want something.
  c. It is when journalists are paid by corporations to receive favorable treatment in their editorials.
  d. It is when corporations partner with ancillary firms that they deal with to receive monetary favors from them.

 

ANSWER:   c
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-1
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   12/12/2017 5:06 AM
DATE MODIFIED:   12/12/2017 5:09 AM

 

45.            are moral standards and principles against which behavior is judged.

  a. Ethics
  b. Appropriations
  c. Sects
  d. Dailies

 

ANSWER:   a
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-2
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   12/12/2017 5:09 AM
DATE MODIFIED:   12/12/2017 5:11 AM

 

46. Which of the following is true about ethics?

  a. It is largely based on personal judgment.
  b. It is applicable to business alone.
  c. It is strongly looked down upon in society.
  d. It is the basic structure of business.

 

ANSWER:   a
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-2
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Marketing Plan
KEYWORDS:   Bloom’s: Comprehension
DATE CREATED:   12/12/2017 5:38 AM
DATE MODIFIED:   12/12/2017 5:40 AM

 

47. What is the most fundamental ethical issue in advertising?

  a. Exaggeration, which is a serious but increasingly common practice
  b. Taste, particularly regarding society’s exposure to offensive messages
  c. Materialism, which also is a key legal issue
  d. Deception, particularly false or misleading statements

 

ANSWER:   d
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-2
NATIONAL STANDARDS:   United States – BUSPROG: Ethics
STATE STANDARDS:   United States – OH – DISC: Strategy
KEYWORDS:   Bloom’s: Comprehension
DATE CREATED:   12/12/2017 5:40 AM
DATE MODIFIED:   12/12/2017 5:42 AM

 

48. Which of the following claims demonstrates puffery in advertising?

  a. “Only Crest Earns the Dental Seal of Approval Among All Major Brands!”
  b. “Ford Trucks Have Lower MPG than Chevy Trucks!”
  c. “Tide Beats Cheer in Sales 8th Year in a Row!”
  d. “World’s Best Cup of Coffee Served with a Smile Here!”

 

ANSWER:   d
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-2
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Application
DATE CREATED:   12/12/2017 5:42 AM
DATE MODIFIED:   12/12/2017 5:44 AM

 

49. Which aspects of advertising are legal but fall into an ethical gray area, making them almost impossible to legislate against?

  a. Disclaimers
  b. Emotional appeals
  c. Testimonials
  d. Contests and sweepstakes

 

ANSWER:   b
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-2
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Comprehension
DATE CREATED:   12/12/2017 5:45 AM
DATE MODIFIED:   12/12/2017 5:47 AM

 

50. What was one of the government’s earliest restrictions that targeted specific techniques and policies being used in programming and advertising designed for children?

  a. The Children’s Food and Beverage Advertising Initiative
  b. The Nutrition Labeling and Education Act
  c. The “Cheeseburger Bill”
  d. The Children’s Television Act

 

ANSWER:   d
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-2
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Customer
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   12/12/2017 5:47 AM
DATE MODIFIED:   12/12/2017 5:49 AM

 

51. Three teenage girls who hang around together all start to smoke cigarettes, and eventually start to drink beer on weekends. With reference to recent research results of the Federal Trade Commission, the cause for the teenage girls’ habits:

  a. have been most strongly influenced by families, friends, and peers.
  b. have been influenced by advertisements portraying it as cool.
  c. stem from hereditary traits.
  d. directly relate to advertising campaigns of criminally negligent firms.

 

ANSWER:   a
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-2
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Application
DATE CREATED:   12/12/2017 5:50 AM
DATE MODIFIED:   12/12/2017 5:52 AM

 

52. Which of the following is true about advertising of alcohol and cigarettes?

  a. Brands in these categories don’t spend a lot of money on advertisements to truly influence consumers.
  b. These ads are usually designed to be subliminal, suggesting but not causing behavior.
  c. Brands in these categories are only advertised as part of other programs which do not interest children.
  d. Advertising cannot create primary demand in mature product categories such as these.

 

ANSWER:   d
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-2
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Comprehension
DATE CREATED:   12/12/2017 5:52 AM
DATE MODIFIED:   12/12/2017 5:55 AM

 

53. Which of the following best describes primary demand?

  a. It is the demand for an entire range of various products.
  b. It is the demand for a specific brand.
  c. It is the demand for a specific product.
  d. It is the demand for an entire product category.

 

ANSWER:   d
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-2
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   12/12/2017 5:56 AM
DATE MODIFIED:   12/12/2017 5:58 AM

 

54. Sarah, a 13-year-old girl, came across an advertisement that displayed a new trendy hair color aimed at a mature audience. Intrigued by the advertisement, Sarah goes out and buys the product. This is an example of       .

  a. primary demand stimulation
  b. subliminal advertising
  c. vertical cooperative advertising
  d. phishing

 

ANSWER:   a
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-2
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking
STATE STANDARDS:   United States – OH – DISC: Customer
KEYWORDS:   Bloom’s: Application
DATE CREATED:   12/12/2017 5:58 AM
DATE MODIFIED:   12/12/2017 6:00 AM

 

55. The Cheeseburger Bill passed by the U.S. House of Representatives:

  a. restricts advertisements featuring high calorie and high fat foods during children’s programming.
  b. prevents falsifying nutrition information for fast foods.
  c. bars the promotion of toys to children that tie in with fast foods, sugary drinks, and salty snacks.
  d. blocks people from suing food companies for their obesity.

 

ANSWER:   d
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-2
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Customer
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   12/12/2017 6:01 AM
DATE MODIFIED:   12/12/2017 6:03 AM

 

56. Although the courts and the FTC have been quite specific about defining many other practices, the definition of     has always been relatively vague.

  a. unfairadvertising
  b. copyright infringement in advertising
  c. false labeling and packaging
  d. phishing in online advertising

 

ANSWER:   a
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-3
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   12/12/2017 6:03 AM
DATE MODIFIED:   12/12/2017 6:05 AM

 

57.             is an advertising technique whereby a manufacturer and wholesaler share the expense of advertising.

  a. Differentiation
  b. Subliminal advertising
  c. Market segmentation
  d. Vertical cooperative advertising

 

ANSWER:   d
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-3
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   12/12/2017 6:06 AM
DATE MODIFIED:   12/12/2017 6:08 AM

 

58. Vertical cooperative advertising is usually legal, though there is a concern from competitors when:

  a. unquantifiable emotional appeals are involved.
  b. a representation, omission, or practice is misleading.
  c. firm uses monopoly power to dominate the other.
  d. bogus advertising allowances are given in the form of hidden price concessions.

 

ANSWER:   d
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-3
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Comprehension
DATE CREATED:   12/12/2017 6:08 AM
DATE MODIFIED:   12/12/2017 6:11 AM

 

59. If firms decide to use comparison advertisements, they:

  a. must convey a fair comparison in the ad.
  b. share the costs of advertising with local dealers and distributors.
  c. are acting in opposition to the recommendations of the American Association of Advertising Agencies.
  d. cannot legally mention a competing firm or brand by name.

 

ANSWER:   a
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-3
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Comprehension
DATE CREATED:   12/12/2017 6:11 AM
DATE MODIFIED:   12/12/2017 6:14 AM

 

60. _____ was established by the Better Business Bureau to evaluate ads directed at children based on guidelines that encourage sensitivity to their level of sophistication and knowledge, as well as emphasis on positive social traits such as friendship and kindness.

  a. The Family Research Council
  b. The Children’s Food and Beverage Advertising Initiative
  c. The Children’s Advertising Review Unit
  d. The Children’s Television Act

 

ANSWER:   c
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-3
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Customer
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   12/12/2017 6:14 AM
DATE MODIFIED:   12/13/2017 12:15 AM

 

61. The ________ gives broad oversight over consumer products such as credit cards, money transfers, and payday loans.

  a. Monetary Exchange Regulatory Board
  b. Federal Communications Commission
  c. Consumer Finance Protection Agency
  d. National Consumer Fiscal Agency

 

ANSWER:   c
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-3
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   12/12/2017 6:30 AM
DATE MODIFIED:   12/20/2017 6:47 AM

 

62. The Wheeler-Lea Amendment in 1938 greatly influenced the future of advertising in America by:

  a. establishing the powerful Federal Trade Commission (FTC).
  b. allowing the FTC to stop practices that were misleading, regardless of their impact on competition.
  c. granting industries the right to form self-regulatory organizations to reduce FTC interference.
  d. broadening the FTC’s power to practices that were unfair to competitors alone.

 

ANSWER:   b
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-3
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   DISC: Promotion
DATE CREATED:   12/12/2017 6:33 AM
DATE MODIFIED:   12/12/2017 6:35 AM

 

63. The Fair Packaging and Labeling Act regulating advertising focuses on:

  a. a way for consumers to compare the cost of household commodities and to prevent deceptive packaging.
  b. regulation of direct mail advertising and prohibiting lotteries.
  c. preventing obscenity, fraud, and the ability to deny or revoke licenses.
  d. direct mail.

 

ANSWER:   a
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-3
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   12/12/2017 6:35 AM
DATE MODIFIED:   12/12/2017 6:38 AM

 

64. The _________ of the FTC was initiated in 1971 with the intention of ensuring that advertisers make supporting evidence for claims available to consumers.

  a. Wheeler-Lea Amendment
  b. advertising substantiation program
  c. Robinson-Patman Act
  d. Federal Communications Commission

 

ANSWER:   b
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-3
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Customer
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   12/12/2017 6:38 AM
DATE MODIFIED:   12/13/2017 12:15 AM

 

65. A company received one of the most basic remedies used by the FTC. What is one of the FTC’s most basic remedies in their regulatory programs?

  a. The FTC will dissolve the company for noncompliance.
  b. The FTC will issue a cease-and-desist order to the company.
  c. The FTC will sue the company so they cannot advertise for one month, if it is a first violation.
  d. The FTC will order that the company enroll in a corrective advertising program for one month.

 

ANSWER:   b
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-3
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Application
DATE CREATED:   12/12/2017 6:41 AM
DATE MODIFIED:   12/12/2017 6:43 AM

 

66. A food manufacturer is being investigated by the FTC for claims that its food can prevent liver disease. Its executives are aware that if the claims are found to be false, the firm may receive the FTC’s most severe penalty, which involves:

  a. ordering corrective advertising.
  b. issuing a cease-and-desist order.
  c. an order to insert a disclaimer.
  d. dissolving the corporation.

 

ANSWER:   a
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-3
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Application
NOTES:   Bloom’s: Application
DATE CREATED:   12/12/2017 6:43 AM
DATE MODIFIED:   12/12/2017 6:45 AM

 

67. The __________ outlines the responsibilities and social impact of advertising and promotes high ethical standards of honesty and decency.

  a. Advertising Substantiation Program
  b. American Association of Advertising Agencies’ Creative Code
  c. Federal Communications Commission
  d. Code Authority of the NAB

 

ANSWER:   b
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-4
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   12/12/2017 6:46 AM
DATE MODIFIED:   12/12/2017 6:48 AM

 

68. Which of the following is best describes the concept of “consumerism”?

  a. It is a relatively recent concept to explain the movement towards mobile marketing and location-based services.
  b. It involves consumer-oriented promotions such as coupons, premiums, and sweepstakes.
  c. It defines the actions that individuals and groups use to enact power in the marketplace.
  d. It refers to the ongoing expansion of contemporary marketing beyond traditional production of ads and commercials, including e-commerce and behavioral targeting.

 

ANSWER:   c
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-4
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Customer
KEYWORDS:   Bloom’s: Comprehension
DATE CREATED:   12/12/2017 6:48 AM
DATE MODIFIED:   12/12/2017 6:50 AM

 

69. Which nonprofit consumer organization was established in 1936 and is known for its publication of Consumer Reports?

  a. Consumer Federation of America
  b. Consumers Union
  c. Consumer Alert
  d. Commercial Alert

 

ANSWER:   b
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-4
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Customer
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   12/12/2017 6:51 AM
DATE MODIFIED:   12/12/2017 6:53 AM

 

70. The ____________ is dedicated to one dedicated idea—“unleashing the world-changing power of consumers.”

  a. Consumer Finance Protection Agency
  b. Consumer Federation of America
  c. Consumers Union
  d. Consumer Review Unit

 

ANSWER:   c
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-4
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Customer
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   12/12/2017 6:53 AM
DATE MODIFIED:   12/13/2017 12:17 AM

 

71. A social networking site could sell information regarding its users’ online behavior to a soft drink manufacturing and advertising firm. This relates most to ___________.

  a. nonprofit marketing
  b. appropriation
  c. phishing
  d. behavioral targeting

 

ANSWER:   d
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-4
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking
STATE STANDARDS:   United States – OH – DISC: Online/Computer
KEYWORDS:   Bloom’s: Application
DATE CREATED:   12/12/2017 6:55 AM
DATE MODIFIED:   12/12/2017 6:57 AM

 

72. An area of advertising and IBP subject to privacy topics is when advertisers:

  a. make products more expensive.
  b. bring communities closer.
  c. vote in the Consumers Union.
  d. use geofencing to identify smartphone users within area and serve ads accordingly.

 

ANSWER:   d
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-4
NATIONAL STANDARDS:   United States – BUSPROG: Technology
STATE STANDARDS:   United States – OH – DISC: Customer
KEYWORDS:   Bloom’s: Comprehension
DATE CREATED:   12/12/2017 6:58 AM
DATE MODIFIED:   12/12/2017 7:00 AM

 

73.             refers to unsolicited commercial messages, usually sent through e-mail.

  a. Behavioral targeting
  b. Spam
  c. Premiums
  d. Infomercials

 

ANSWER:   b
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-4
NATIONAL STANDARDS:   United States – BUSPROG: Technology
STATE STANDARDS:   United States – OH – DISC: Online/Computer
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   12/12/2017 7:00 AM
DATE MODIFIED:   12/12/2017 7:03 AM

 

74. ________ is an insidious version of spam where Web users are enticed into entering personal information on a fake website that is forged to look like it is from a bank, the IRS, or other organizations.

  a. Click-Fraud
  b. Appropriation
  c. Geofencing
  d. Phishing

 

ANSWER:   d
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-4
NATIONAL STANDARDS:   United States – BUSPROG: Technology
STATE STANDARDS:   United States – OH – DISC: Online/Computer
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   12/12/2017 7:04 AM
DATE MODIFIED:   12/12/2017 7:06 AM

 

75. Marketers have to be particularly cautious about using without legal protection, as fraud abounds.

  a. coupons
  b. billboards
  c. premiums
  d. trade allowances

 

ANSWER:   a
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-4
NATIONAL STANDARDS:   United States – BUSPROG: Technology
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   12/12/2017 7:10 AM
DATE MODIFIED:   12/12/2017 7:13 AM

 

76. The Telephone Consumer Fraud and Abuse Prevention Act of the mid-1990s:

  a. required telemarketers to maintain a list of customers who do not want to be called.
  b. banned recorded messages and robocalls.
  c. restricted telemarketers from calling customers more than twice a month.
  d. allowed the use of “robocalls” that contain recorded messages.

 

ANSWER:   a
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-4
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Customer
KEYWORDS:   Bloom’s: Comprehension
DATE CREATED:   12/12/2017 7:13 AM
DATE MODIFIED:   12/12/2017 7:19 AM

 

77. Despite being registered under the Do Not Call Registry, a person can receive calls from:

  a. businesses they’ve contacted in the last six months.
  b. charities, political groups, market research firms, and companies you do business with.
  c. companies that have delivered something to the person in the last 24 months.
  d. co-operatives and insurance firms.

 

ANSWER:   b
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-4
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Customer
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   12/12/2017 7:19 AM
DATE MODIFIED:   12/12/2017 7:21 AM

 

78.             is the use of pictures or images owned by someone else without permission.

  a. Defamation
  b. Spamming
  c. Phishing
  d. Appropriation

 

ANSWER:   d
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-4
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   12/12/2017 7:22 AM
DATE MODIFIED:   12/12/2017 7:24 AM

 

79. What concept is involved when a statement that occurs in print is untrue and damages the reputation of a person, based on words found in magazine, newspaper, direct mail, or Internet reports?

  a. Libel
  b. Slander
  c. Larceny
  d. Appropriation

 

ANSWER:   a
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-4
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   12/12/2017 7:24 AM
DATE MODIFIED:   12/12/2017 7:26 AM

 

Scenario 4-1

A group called Adbusters has a website containing many pages that address issues of consumption and culture, media practices, and corporate responsibilities. For example, “The momentum has clearly accelerated. By some measures humans have used more physical resources since World War II than in all of history before it. It’s now taking a toll beyond anything we could ever have imagined. What does it mean when one sixth of the world’s population consumes without any real restraint?”

 

Throughout the website, there are many references to advertising’s role in creating and maintaining this situation. Not surprisingly, virtually all of the references to the practice of advertising are negative.

 

(http://www.adbusters.org/home/)

 

80. (Scenario 4-1) Organizations like Adbusters see advertising as superficial. This view of advertising says that it:

  a. is not entertaining, or even interesting, to consumers.
  b. has no effect on demand for specific brands of products.
  c. offers little information based on function or performance.
  d. ignores the hedonic aspects of products.

 

ANSWER:   c
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
PREFACE NAME:   New Preface
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-1
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Comprehension
DATE CREATED:   12/12/2017 7:26 AM
DATE MODIFIED:   12/12/2017 7:28 AM

 

81. (Scenario 4-1) Some philosophies regarding our path to overconsumption proposed by Adbusters echo the words of advertising historian Stephen Fox when he wrote, “One may build a compelling case that American culture is— beyond redemption—money-mad, hedonistic, superficial, rushing heedlessly down a railroad track called Progress.” Fox then concluded that advertisers:

  a. are not creating the American way of life, but just reflecting it, good or bad.
  b. have nothing to do with the fact that all modern cultures have essentially become obsessed with consumption, not just America.
  c. are the self-serving manipulators and hidden persuaders who have created this situation.
  d. are to be blamed for the reckless lifestyle and behavior of modern day youth.

 

ANSWER:   a
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-1
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking
STATE STANDARDS:   United States – OH – DISC: Customer
KEYWORDS:   Bloom’s: Application
DATE CREATED:   12/12/2017 7:29 AM
DATE MODIFIED:   12/12/2017 7:31 AM

 

82. (Scenario 4-1) In the past, Adbusters has cited 12 magazines that it said are responsible for pushing “a clean, exciting image for one of the dirtiest products around: tobacco.” It suggested that Americans cancel their subscriptions to these magazines until they stopped accepting these ads. This is an example of:

  a. the social phenomenon called corrective advertising.
  b. a strategic tool for pressuring advertisers called boycott.
  c. a push for consumers to mobilize and take certain actions called behavioral targeting.
  d. the self-regulatory practice called corrective advertising.

 

ANSWER:   b
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-4
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking
STATE STANDARDS:   United States – OH – DISC: Customer
KEYWORDS:   Bloom’s: Application
DATE CREATED:   12/12/2017 7:31 AM
DATE MODIFIED:   12/12/2017 7:33 AM

 

Scenario 4-2

Purple Inc. has recently been sued for the following reasons. The CEO has stated in a radio broadcast that Purple Inc.’s sunglasses are better than its rivals and that its main competitor’s glasses are nothing but cheap plastic. It has also published an article stating that its competitor’s glasses are “fake” and “aren’t good enough for the customer’s dog, let alone a human.”

 

83. (Scenario 4-2) Purple Inc. launched an advertisement displaying an image of a model of its competitor’s sunglasses. However, it had not received consent from the party to utilize the picture. This is an example of  _____.

  a. puffery
  b. appropriation
  c. spamming
  d. libel

 

ANSWER:   b
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
PREFACE NAME:   New Preface
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-4
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Application
DATE CREATED:   12/12/2017 7:34 AM
DATE MODIFIED:   12/12/2017 7:37 AM

 

84. (Scenario 4-2) The CEO of Purple Inc. stated that its competitor’s sunglasses are nothing but “a fake piece of plastic.” This is an example of             .

  a. spam
  b. puffery
  c. appropriation
  d. slander

 

ANSWER:   d
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-4
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Application
DATE CREATED:   12/12/2017 7:38 AM
DATE MODIFIED:   12/12/2017 7:40 AM

 

85. (Scenario 4-2) Purple Inc. published an advertisement stating that its competitor’s glasses were fake and would not be good for the customer’s dog, let alone a human. This is an example of         .

  a. libel
  b. accommodation
  c. puffery
  d. appropriation

 

ANSWER:   a
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-4
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking
STATE STANDARDS:   United States – OH – DISC: Customer
KEYWORDS:   Bloom’s: Application
DATE CREATED:   12/12/2017 7:40 AM
DATE MODIFIED:   12/12/2017 7:42 AM

 

Scenario 4-3

The Lightning Rod is a fishing rod being introduced by Castaway Sports. At a preliminary meeting with its agency, the president of Castaway Sports mentions that the rod can improve casting distance for an average individual by more than 20 percent. The account executive asks if the president has data to support this, and the president says “Yes.” The agency proceeds to produce a series of television spots featuring a well-known sports celebrity using the rod and rating it as excellent. The spots run on network television and trumpet the improved casting distance that the rod provides. The slogan of the spots is “Lightning Rod—The Finest Rod Ever Cast.” After about a week, a competitor questions whether the rods really offer the improved performance Castaway Sports claims, and decides to file a complaint with the FTC.

 

86. (Scenario 4-3) The slogan for the spot, “Lightning Rod—The Finest Rod Ever Cast,” would be considered by U.S. courts to be:

  a. a false and misleading statement, which needs to be retracted.
  b. a superlative, which must be provable.
  c. unethical, but not truly deceptive.
  d. puffery, which doesn’t need to be proved or disproved.

 

ANSWER:   d
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
PREFACE NAME:   New Preface
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-2
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Application
DATE CREATED:   12/12/2017 7:43 AM
DATE MODIFIED:   12/12/2017 7:46 AM

 

87. (Scenario 4-3) The FTC investigates the claim of “20 percent more casting distance” when using the Lightning Rod. Castaway Sports admits that it has no actual data to support the claim but believes it to be true. However, the FTC rules that Castaway Sports should stop airing the ads, and in response the Lightning Rod advertisement is removed. This is an example of a(n):

  a. dissolution.
  b. cease-and-desist order.
  c. consent order.
  d. appropriation.

 

ANSWER:   c
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-3
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Application
DATE CREATED:   12/12/2017 7:46 AM
DATE MODIFIED:   12/12/2017 7:48 AM

 

88. (Scenario 4-3) In the commercial, a sports star is shown in a sailboat on a beautiful lake, sending a long cast into the water, then listing the excellent features of the Lightning Rod. It closes with this well-known celebrity happily reeling in a fish. To meet FTC standards for this type of endorsement, the celebrity must:

  a. be considered an expert in the field of sport fishing.
  b. share 2 per cent of the expenses involved in the advertisement.
  c. actually use the Lightning Rod when fishing on his own.
  d. write the statements that he makes in the ad.

 

ANSWER:   c
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-3
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Application
DATE CREATED:   12/12/2017 7:49 AM
DATE MODIFIED:   12/12/2017 7:51 AM

 

89. (Scenario 4-3) The competitor who filed a complaint with the FTC also had the option of working with the media self-regulatory organization that evaluates ethical issues, the __________ which has the authority to review concerns over issues of truth, fairness, or good taste and makes recommendations based on its findings.

  a. ConsumerFederationofAmerica
  b. NAB’s Code Authority
  c. Family Research Council
  d. Better Business Bureau

 

ANSWER:   b
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-4
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Application
DATE CREATED:   12/12/2017 11:08 PM
DATE MODIFIED:   12/12/2017 11:12 PM

 

Scenario 4-4

Joe Rowan walked into Pederson Toyota one day and began looking at price stickers on Toyota Camrys. He was interested in that model because he had seen a number of television and magazine ads describing the car’s features and reputation for reliability, and the fact that it displayed the slogan “The best car in the world” urged him to look at the cars. After closely examining the stickers, Joe noticed a line that said “Dealer Promotion Allowance—$125.00.” Joe asked a salesperson what that meant. The salesman replied that it was a charge that helped the dealership pay for local advertising to encourage consumers to shop at that particular dealer. After further discussion, Joe learned that almost 5 percent of the cost of the vehicle comes from expenses for national and local advertising.

 

90. (Scenario 4-4) After Joe complained, the salesperson replied, “If our industry didn’t do so much advertising you probably couldn’t afford to buy that computer to do your own research.” Which of the following “pros” of advertising is the salesperson likely using to support his comment?

  a. Advertising fosters a diverse and affordable mass media.
  b. Advertising fosters new product success and lowers costs.
  c. Advertising reflects the priorities of a society.
  d. Advertising contributes to art and culture in a society.

 

ANSWER:   b
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
PREFACE NAME:   New Preface
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-1
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Application
DATE CREATED:   12/12/2017 11:12 PM
DATE MODIFIED:   12/12/2017 11:15 PM

 

91. (Scenario 4-4) The first time Joe saw the Toyota Camry was in a magazine that displayed the slogan “The best car in the world.” This slogan is an example of        .

  a. unfair advertising
  b. slander
  c. subliminal advertising
  d. puffery

 

ANSWER:   d
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-2
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Application
DATE CREATED:   12/12/2017 11:15 PM
DATE MODIFIED:   12/12/2017 11:18 PM

 

92. (Scenario 4-4) Joe saw a television ad that stated the Toyota Camry was “the world’s best car for reliability.” The use of such absolute superlatives in advertising is:

  a. an illegal use of advertising language.
  b. unethical but legal.
  c. a legal and quite common use of exaggeration.
  d. unfair advertising but not deceptive advertising.

 

ANSWER:   c
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-2
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Application
DATE CREATED:   12/12/2017 11:18 PM
DATE MODIFIED:   12/12/2017 11:20 PM

 

93. (Scenario 4-4) The Pederson dealership and Toyota share the expense of local advertising in this market. This is an example of      advertising.

  a. subliminal
  b. vertical cooperative
  c. corporate
  d. institutional

 

ANSWER:   b
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-3
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Application
DATE CREATED:   12/12/2017 11:20 PM
DATE MODIFIED:   12/12/2017 11:22 PM

 

94. (Scenario 4-4) Which government agency might eventually be reviewing the case if Joe feels he should file a complaint about advertising in the automotive industry?

  a. The Consumer Finance Protection Agency
  b. The Consumer Union
  c. The Federal Trade Commission
  d. The Consumer Federation of America

 

ANSWER:   c
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-3
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Application
DATE CREATED:   12/12/2017 11:22 PM
DATE MODIFIED:   12/12/2017 11:24 PM

 

Scenario 4-4

Olive’s, a fast food restaurant chain known for its quick meals, encountered an instance where a customer had blamed its food for his weight gain. Later in the same year, they launched an advertisement comparing its burgers with a close rival’s, which were very similar. This ad was asked to be corrected by the court. However, a second advertisement depicting a supermodel eating its fries and an obese person eating the fries of its competitor’s food chain was deemed unethical and was ordered by the court to be removed, although Olive’s continued airing the ad.

 

95. (Scenario 4-4) The       would prevent Olive’s from being sued by the customer blaming it for his obesity.

  a. Advertisement Substantiation Program
  b. Cheeseburger Bill
  c. Robinson-Patman Act
  d. Wheeler-Lea Amendment

 

ANSWER:   b
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
PREFACE NAME:   New Preface
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-2
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking
STATE STANDARDS:   United States – OH – DISC: Customer
KEYWORDS:   Bloom’s: Application
DATE CREATED:   12/12/2017 11:25 PM
DATE MODIFIED:   12/12/2017 11:27 PM

 

96. (Scenario 4-4) Which of the following actions would help Olive’s prove the fairness of its first comparison ad?

  a. By entering a stealth sponsorship with its competitor
  b. By including a disclaimer
  c. By sharing the profits of the ad with its competitor
  d. By mentioning the contents of the meals

 

ANSWER:   b
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-3
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Application
DATE CREATED:   12/12/2017 11:27 PM
DATE MODIFIED:   12/12/2017 11:29 PM

 

97. (Scenario 4-4) Olive’s second advertisement is an example of          advertising.subliminal.

  a. subliminal
  b. comparison
  c. vertical cooperative
  d. corporate

 

ANSWER:   b
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-3
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Application
DATE CREATED:   12/12/2017 11:29 PM
DATE MODIFIED:   12/12/2017 11:32 PM

 

98. (Scenario 4-4) Olive’s continued airing its advertisement despite being asked to remove it by court. As a result, they were asked by the court to remove the ad in 30 days. This is an example of            .

  a. accommodation
  b. appropriation
  c. a consent order
  d. a cease-and-desist order

 

ANSWER:   d
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-3
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Application
DATE CREATED:   12/12/2017 11:32 PM
DATE MODIFIED:   12/12/2017 11:34 PM

 

99. (Scenario 4-4) If Olive’s had removed the advertisement soon after receiving the court order, this would be an example of _____.

  a. a stealth sponsorship
  b. a consent order
  c. monopoly power
  d. puffery

 

ANSWER:   b
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-3
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Application
DATE CREATED:   12/12/2017 11:35 PM
DATE MODIFIED:   12/12/2017 11:37 PM

 

Scenario 4-6

Rad Productions has launched a series of advertisements. The first advertisement for a restaurant features an image of a child enjoying a burger. The second advertisement for a real estate firm depicts a cozy living room in a good locality in town. The third advertisement for a designer wear firm depicts the sale of designer dresses and shoes. The fourth advertisement is for a university, depicting college students in business suits at a marketing class.

 

100. (Scenario 4-6) According to Maslow’s Hierarchy theory, the first advertisement would satisfy a person’s ____.

  a. existence needs
  b. physiological needs
  c. growth needs
  d. intrinsic motives

 

ANSWER:   b
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
PREFACE NAME:   New Preface
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-1
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Application
DATE CREATED:   12/12/2017 11:37 PM
DATE MODIFIED:   12/12/2017 11:41 PM

 

101. (Scenario 4-6) While some argue that advertising promotes materialism, others argue that it addresses a number of basic human needs. With reference to Maslow’s Hierarchy, an advertisement for a high-end clothing company would likely be appealing to which of these needs?

  a. Physiological needs
  b. Safety needs
  c. Self-actualization needs
  d. Esteem needs

 

ANSWER:   d
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-1
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking
STATE STANDARDS:   United States – OH – DISC: Customer
KEYWORDS:   Bloom’s: Application
DATE CREATED:   12/12/2017 11:41 PM
DATE MODIFIED:   12/12/2017 11:44 PM

 

102. (Scenario 4-6) According to Maslow’s hierarchy theory, which of the following needs would the third advertisement most likely satisfy?

  a. Esteem needs
  b. Need for affiliation
  c. Extrinsic needs
  d. Self-actualization needs

 

ANSWER:   a
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-1
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Application
DATE CREATED:   12/12/2017 11:44 PM
DATE MODIFIED:   12/12/2017 11:46 PM

 

103. (Scenario 4-6) With reference to Maslow’s hierarchy theory, which of the following needs would the fourth advertisement most likely satisfy?

  a. Self-actualization needs
  b. Need for affiliation
  c. Growth needs
  d. Psychological needs

 

ANSWER:   a
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-1
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Application
DATE CREATED:   12/12/2017 11:46 PM
DATE MODIFIED:   12/12/2017 11:48 PM

 

104. (Scenario 4-6) Rad Productions is in the process of airing an advertisement which depicts a sports drink that provides athletes with more energy than other drinks. However, it is not stated what causes the added energy. It is most likely that the FTC would require a(n)          from the manufacturing firm.

  a. appropriation
  b. stealth sponsorship
  c. disclaimer
  d. affirmative disclosure

 

ANSWER:   d
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-3
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Application
DATE CREATED:   12/12/2017 11:48 PM
DATE MODIFIED:   12/12/2017 11:50 PM

 

105. Advertising educates consumers. In an essay, describe the pros of adverting with reference to educating consumers.

ANSWER:   Advertising Informs – Supporters of advertising argue that advertising educates consumers, equipping them with the information they need to make informed purchase decisions. By regularly assessing information and advertising claims, consumers become more educated regarding the features, benefits, functions, and value of products. Further, consumers can become more aware of their own tendencies

toward being persuaded by certain types of product information. Historically, the very positive position has been offered that advertising is “clearly an immensely powerful instrument for the elimination of ignorance.” Now, that might be a little bit overstated, but according to this argument, better educated consumers enhance their lifestyles

and economic power through astute marketplace decision making—can’t argue with

that!

 

A related argument is that advertising reduces product search time—that is, the amount of time an individual spends to search for desired products and services is reduced because of advertising, access to the Web, and mobile messages from advertisers. The large amount of information readily available through advertising and Web Sites allows consumers to easily assess information about the potential value of brands without spending time and effort traveling from retail store to retail store trying to evaluate each one. The information contained in an advertisement “reduces drastically the cost of search.”

 

Another aspect of informing the public has to do with the role advertising can play in communicating about important social issues.

POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Essay
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-1
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Customer
KEYWORDS:   Bloom’s: Comprehension
DATE CREATED:   12/12/2017 11:51 PM
DATE MODIFIED:   12/12/2017 11:53 PM

 

106. List and describe four aspects of how advertising lowers the cost of products.

ANSWER:   Four aspects of the nature of advertising, supporters argue, help lower the cost of products are:

 

1. Due to the economies of scale (it costs less to produce products in large quantities), partly created by advertising’s contribution to stimulating demand, products cost less than if there were no advertising at all. As broad-based demand stimulation results in lower production and administrative costs per unit produced, lower prices are passed on to consumers.

 

2. Consumers have a greater variety of choice in products and services because advertising increases the probability of success that new products will succeed. The more products that succeed, the fewer losses firms incur from failed product introductions. In the end, this should make products cost less.

 

3. The pressures of competition and the desire to have fresh, marketable brands motivate firms to produce improved products and brands and introduce lower-priced brands.

 

4. The speed and reach of the advertising process aids in the diffusion of innovations. This means that new discoveries can be delivered to a large percentage of the marketplace very quickly. Innovations succeed when advertising communicates their benefits to the customer.

POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Essay
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-1
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Pricing
KEYWORDS:   Bloom’s: Knowledge
DATE CREATED:   12/12/2017 11:53 PM
DATE MODIFIED:   12/12/2017 11:55 PM

 

107. What are the three elements that declare an ad to be “deceptive”? What elements declare an ad to be “unfair”? How is “puffery” related to these concepts?

ANSWER:   While any instance of a possibly unethical advertising message can always be debated, the law is quite clear about deception, but it is much vaguer regarding unfairness.

 

An ad is considered “deceptive” if the following three elements are present, based on the FTC’s ruling: if it involves a representation, omission, or practice that may mislead the consumer; if this representation, omission, or practice is judged from the perspective of a consumer acting reasonably; and if the representation, omission, or practice is a material one that would affect the consumer’s conduct or decision making about the advertised product or service. Very broadly, deception is defined as the presence of false or misleading statements in an advertisement.

 

An ad is considered “unfair” based on 1990s legislation that says it needs to cause substantial injury to consumers that is not avoidable by consumers, and is not outweighed by benefits to consumers or competitors. This allows the FTC to assess both the benefits and costs of advertising, and it rules out reckless behaviors on the part of consumers, before a ruling can be made calling an ad unfair.

 

An ad includes “puffery” when superlatives or exaggerations are used that most reasonable people would understand as harmless claims or slogans. While such claims may not be technically “true” (“World’s Best Coffee!”), they are totally legal and are not considered to be either deceptive or unfair.

POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Essay
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-2
AIBP.OGUI.19.4-3
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Comprehension
DATE CREATED:   12/12/2017 11:55 PM
DATE MODIFIED:   12/12/2017 11:58 PM

 

108. What are the three broad areas of advertising that are affected by federal regulation? Briefly identify and explain each.

ANSWER:   The three areas affected by federal regulation involve deception and unfairness, competition, and children.

 

Issues involving “deception and unfairness” have historically been difficult to identify and prove. While most people would agree that both of these elements are unacceptable, there will always be differences in opinion as to exactly what is considered deceptive and exactly what is considered unfair. By the 1990s, the FTC and Congress worked together to more adequately define these concepts and the criteria involved.

 

Issues involving “competition” involve unfair practices among competitors, including cooperative advertising, comparison advertising, and monopoly power.

 

Issues involving children involve the nature and content of ads aimed at children, the volume of advertising within children’s programming, and the limits and sensitivities involved in pitching products to those who are unsophisticated regarding consumption and are unaware of the power of persuasion.

POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Essay
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-3
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Customer
KEYWORDS:   Bloom’s: Comprehension
DATE CREATED:   12/12/2017 11:58 PM
DATE MODIFIED:   12/13/2017 12:03 AM

 

109. What are the four types of rulings that the FTC might enact in response to claims of unfairness or deception in an advertisement? Name and briefly define them, beginning with the most lenient and moving on to the strongest response.

ANSWER:   The FTC has four options when it responds to claims of unfairness or deception in an advertisement:

consent order, cease and desist order, affirmative disclosure, and corrective advertisement.

 

A consent order allows an advertiser to agree to stop running a questionable ad without having to admit guilt. It is the simplest and least serious of responses that the FTC can enact.

 

A cease-and-desist order requires that the advertiser stop running the questionable ad, usually within 30 days so a hearing can be held to determine whether it is truly deceptive or unfair. If a product may have a direct effect on consumer’s health or safety, an immediate cease-and-desist order can be enacted.

 

An affirmative disclosure requires that the advertiser add important information that had been missing from previous ads, information that might cause consumers to make false assumptions about the product.

 

An order for corrective advertising requires that the advertiser run new ads that clarify misleading claims or that retract erroneous information that the consumer has been led to believe as true. This is the strongest and most extensive response that the FTC can enact.

POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Essay
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-3
NATIONAL STANDARDS:   United States – BUSPROG: Analytic
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Comprehension
DATE CREATED:   12/13/2017 12:04 AM
DATE MODIFIED:   12/13/2017 12:06 AM

 

110. A complaint concerning an allegedly misleading advertising practice by a carpet-cleaning service in the Houston area is filed with the local Better Business Bureau (BBB). Apparently, homeowners are expecting the price shown on the company’s direct mailings and newspaper coupons (a price confirmed at the time the appointment is made) but are quoted a much higher fee once the crew arrives and “inspects” the carpets. The company’s ads promise the latest in “green” cleaning materials and industrial techniques, but the cleaning fluids and equipment used by the crew are also suspect. Outline the path the complaint would take if it were to eventually arrive at the FTC. Specifically, list the organizations it would pass through, and in general terms, the actions that would need to be taken by each organization for the complaint to be forwarded on to federal regulators.

ANSWER:   In a situation like this, the local BBB reviews the issue, often sent in the form of a complaint by consumers or competitors. It sends the complaint to the National Advertising Division (NAD) of the Council of Better Business Bureaus. If the NAD staff cannot resolve the complaint with the advertiser, in this case the carpet-cleaning service, it is passed along to the National Advertising Review Board (NARB). Its review panel hears the advertiser’s case, reviews other evidence, and deliberates. It may dismiss the case, or it may convince the cleaning service to change the wording

in its advertising. If it does neither, it will then publicly identify the case, the advertiser, and its findings, and then forward the complaint to the FTC.

POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Essay
HAS VARIABLES:   False
LEARNING OBJECTIVES:   AIBP.OGUI.19.4-4
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking
STATE STANDARDS:   United States – OH – DISC: Promotion
KEYWORDS:   Bloom’s: Application
DATE CREATED:   12/13/2017 12:07 AM
DATE MODIFIED:   12/13/2017 12:09 AM

 

 

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