Question 1

Unethical practices in the marketplace are related to all elements of the marketing mix except:

Accepted Answer

A)  packaging. 
B)  pricing. 
C)  distribution. 
D)  all of the above.

Question 2

Employee surveys reveal that superiors often reward those employees who engage in ethical behaviour.

Accepted Answer

A) True 
 B)False

Question 3

Because compliance costs are ultimately borne by the consumer, legislators and governments now actively weigh the costs and benefits of enacting and enforcing consumer legislation.

Accepted Answer

A) True 
 B)False

Question 4

A)What is deceptive advertising? Describe the three categories of deception identified. Which category is the most difficult to determine and why?
B)What is corrective advertising? Is it effective?

Accepted Answer

The answer of A)What is deceptive advertising? Describe the three...

Question 5

Codes of ethics are developed by many organisations as they recognise that self-regulation:

Accepted Answer

A)  is more profitable in the short-term. 
B)  deters government from imposing its own regulations. 
C)  is the way we do business now. 
D)  none of the above.

Question 6

Unethical practices can be related to all elements of the marketing mix.

Accepted Answer

A) True 
 B)False

Question 7

According to _____, to be ethical a decision should be based on what is best for everyone involved.

Accepted Answer

A)  teleology 
B)  golden rule theory 
C)  Kantianism 
D)  deontology

Question 8

A firm that keeps the price of its product constant while reducing the amount of product in a package and purposefully making the package look as much like it did before the reduction would most likely be guilty of:

Accepted Answer

A)  packaging-to-price deception. 
B)  misleading labelling. 
C)  misleading advertising. 
D)  exploitative advertising.

Question 9

Teleological theory deals with the methods and intentions involved with a particular behaviour.

Accepted Answer

A) True 
 B)False

Question 10

Smith Computing Company wishes to lodge a complaint about their competitor's advertising. They should contact the:

Accepted Answer

A)  Advertising Claims Board. 
B)  Advertising Standards Bureau. 
C)  Australian Broadcasting Authority. 
D)  ACCC.

Question 11

Australian research demonstrates that parents and teachers play a key role in building the nutritional expertise of children.

Accepted Answer

A) True 
 B)False

Question 12

Jayde, a young university student, decides to produce a range of casual clothing from her home and put the name 'Billabong' on them. She is engaging in:

Accepted Answer

A)  brand transference. 
B)  brand 'knock-off'. 
C)  fraudulent discounts. 
D)  deceptive advertising.

Question 13

Research suggests that low-income consumers are more interested in the amount of interest they were charged, rather than the size and frequency of their loan repayments.

Accepted Answer

A) True 
 B)False

Question 14

Cooperating with the government agencies, non-profit organisations and consumer groups in their consumer education programs is not one of the strategies available to businesses to reduce the impact of consumer activism.

Accepted Answer

A) True 
 B)False

Question 15

New public policies that affect marketing are usually the outcome of marketplace abuses brought to the attention of policymakers through the media, consumer advocacy groups and professional or industry associations.

Accepted Answer

A) True 
 B)False

Question 16

Of the three classifications of deception, the one which is most blatant is a(n):

Accepted Answer

A)  unconscionable lie. 
B)  unfair discrepancy. 
C)  claim/fact discrepancy. 
D)  claim/belief discrepancy.

Question 17

Consumer research priorities for the new millennium include:

Accepted Answer

A)  how the marketplace can be improved so consumers can make better decisions. 
B)  in what ways economic and social welfare transactions can lead to greater consumer satisfaction. 
C)  how the market can be improved so consumers can be more satisfied with their consumption. 
D)  all of the above are priorities.

Question 18

Because consumer legislation is always based on empirical consumer research findings, the effectiveness of consumer legislation in safeguarding consumer rights has proven to be highly successful.

Accepted Answer

A) True 
 B)False

Question 19

In the United States, the consumers' bill of rights set the stage for the consumer movement.

Accepted Answer

A) True 
 B)False

Question 20

A tax deduction is an example of the form of governmental intervention known as:

Accepted Answer

A)  legislation. 
B)  consumer education. 
C)  provision of incentives. 
D)  promotional constraints.

Exam 16: Public policy and consumer protection

Unethical practices in the marketplace are related to all elements of the marketing mix except:

Employee surveys reveal that superiors often reward those employees who engage in ethical behaviour.

Because compliance costs are ultimately borne by the consumer, legislators and governments now actively weigh the costs and benefits of enacting and enforcing consumer legislation.

A)What is deceptive advertising? Describe the three categories of deception identified. Which category is the most difficult to determine and why? B)What is corrective advertising? Is it effective?

Codes of ethics are developed by many organisations as they recognise that self-regulation:

Unethical practices can be related to all elements of the marketing mix.

According to _____, to be ethical a decision should be based on what is best for everyone involved.

A firm that keeps the price of its product constant while reducing the amount of product in a package and purposefully making the package look as much like it did before the reduction would most likely be guilty of:

Teleological theory deals with the methods and intentions involved with a particular behaviour.

Smith Computing Company wishes to lodge a complaint about their competitor's advertising. They should contact the:

Australian research demonstrates that parents and teachers play a key role in building the nutritional expertise of children.

Jayde, a young university student, decides to produce a range of casual clothing from her home and put the name 'Billabong' on them. She is engaging in:

Research suggests that low-income consumers are more interested in the amount of interest they were charged, rather than the size and frequency of their loan repayments.

Cooperating with the government agencies, non-profit organisations and consumer groups in their consumer education programs is not one of the strategies available to businesses to reduce the impact of consumer activism.

New public policies that affect marketing are usually the outcome of marketplace abuses brought to the attention of policymakers through the media, consumer advocacy groups and professional or industry associations.

Of the three classifications of deception, the one which is most blatant is a(n) :

Consumer research priorities for the new millennium include:

Because consumer legislation is always based on empirical consumer research findings, the effectiveness of consumer legislation in safeguarding consumer rights has proven to be highly successful.

In the United States, the consumers' bill of rights set the stage for the consumer movement.

A tax deduction is an example of the form of governmental intervention known as: