Question 1

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

Accepted Answer

A)  Market segmentation 
B)  Operating costs 
C)  Inelasticity of demand 
D)  Economies of scale

Question 2

Which of the following best describes stealth sponsorship?

Accepted Answer

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.

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Well-known illustrator Andy Warhol felt strongly that:

Accepted Answer

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.

Question 5

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

Accepted Answer

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.

Question 6

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

Accepted Answer

A)  Differentiation 
B)  Subliminal advertising 
C)  Market segmentation 
D)  Vertical cooperative advertising

Question 7

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

Accepted Answer

A)  unfairadvertising 
B)  copyright infringement in advertising 
C)  false labeling and packaging 
D)  phishing in online advertising

Question 8

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

Accepted Answer

A)  subliminal 
B)  comparison 
C)  vertical cooperative 
D)  corporate

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

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.
-(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?

Accepted Answer

A)  Physiological needs 
B)  Safety needs 
C)  Self-actualization needs 
D)  Esteem needs

Question 11

The ____________ is dedicated to one dedicated idea-"unleashing the world-changing power of consumers."

Accepted Answer

A)  Consumer Finance Protection Agency 
B)  Consumer Federation of America 
C)  Consumers Union 
D)  Consumer Review Unit

Question 12

________ 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.

Accepted Answer

A)  Click-Fraud 
B)  Appropriation 
C)  Geofencing 
D)  Phishing

Question 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.

Accepted Answer

A) True 
 B)False

Question 14

The CAN SPAM Act outlaws all unsolicited emails.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

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.

Question 16

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.
-(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:

Accepted Answer

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.

Question 17

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

Accepted Answer

A)  Disclaimers 
B)  Emotional appeals 
C)  Testimonials 
D)  Contests and sweepstakes

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

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.

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 4: Social, ethical, and Regulatory Aspects of Advertising and Promotion

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

Which of the following best describes stealth sponsorship?

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

Well-known illustrator Andy Warhol felt strongly that:

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

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

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

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

The ____________ is dedicated to one dedicated idea-"unleashing the world-changing power of consumers."

________ 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.

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.

The CAN SPAM Act outlaws all unsolicited emails.

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

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

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

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