Question 1

Which of the following would be an example of subliminal advertising?

Accepted Answer

A)   choosing ethnically diverse actors for a commercial that will appear in urban areas
B)   relying on gender role stereotypes in an advertisement
C)   airbrushing naked figures into ice cubes in a liquor ad
D)   repeating a slogan frequently to embed it in consumers' minds
E)   using puffery instead of factual claims that can be substantiated

Question 2

The National Advertising Division (NAD) of the Advertising Self-Regulatory Council (ASRC)

Accepted Answer

A)   promotes the benefits of advertising to the Better Business Bureau and other major critics.
B)   serves as the appeal board for decisions made by the National Advertising Review Board.
C)   monitors advertising practices and reviews complaints about advertising from consumers.
D)   sets up and maintains an all-consumer review board to evaluate all advertising.
E)   guides new businesses in the development of ethical advertising codes.

Question 3

Advertising can add value to a brand by educating customers about new uses for a product.

Accepted Answer

A) True 
 B)False

Question 4

The Federal Trade Commission (FTC) regulates the marketplace by

Accepted Answer

A)   eliminating practices that are deceptive or unfair.
B)   reducing the number of sellers in the marketplace.
C)   enforcing state consumer protection laws.
D)   expanding externalities in the marketing process.
E)   limiting the information that is provided to consumers.

Question 5

Lori and Juana are going to the mall.Lori wants to buy a pair of athletic shoes,and Juana wants to buy a pair of Reebok cross-trainers.Lori illustrates _____ demand while Juana illustrates _____ demand.

Accepted Answer

A)   secondary; primary
B)   longitudinal; secondary
C)   external; internal
D)   primary; selective
E)   selective; primary

Question 6

List out the elements of Fair Information Practice Principles.

Accepted Answer

The "Fair Information Practice Principles" consist of five core elements: 
1)Notice,which requires that the website clearly post its privacy policy.
2)Choice,which relates to consumers' level of control over being profiled and how their information is used 
3)Access,the ability for consumers to access information collected about them and make amendments to it.
4)Security,which requires that network advertisers make reasonable efforts to protect the data they collect from loss,misuse,or improper access.
 5)Enforcement,a requirement that all industry members subject themselves to monitoring by an independent third party to ensure compliance with the Fair Information Practice Principles.

Question 7

List and explain briefly the three courses of action open to the Federal Trade Commission (FTC)once it has determined an ad is deceptive or unfair.

Accepted Answer

When the FTC determines that an ad is de...

Question 8

Good Housekeeping magazine places its "Seal of Approval" on all the products advertised in it.If any of the products are later found to be defective,Good Housekeeping promises to refund the money paid for the products.This kind of careful screening

Accepted Answer

A)   is required by the Federal Trade Commission.
B)   is a way for a medium to monitor its advertisements.
C)   was required by legislation passed during the Great Depression.
D)   is used by most print media, including the tabloids.
E)   is redundant given the watchfulness of federal regulatory agencies.

Question 9

To promote responsible children's advertising and to respond to public concerns,the Council of Better Business Bureaus established the

Accepted Answer

A)   Children's Protection Agency (CP
A)  .
B)   Children's Advertising Review Unit (CARU) .
C)   Children's Board of Information.
D)   Board of Advertising Review.
E)   Code for Ethical Children's Advertising (CEC
A)  .

Question 10

The broadcast standards department at a network or affiliated station approves and rejects commercials.

Accepted Answer

A) True 
 B)False

Question 11

The Better Business Bureau operates primarily at the national level and is funded by the dues of media groups.

Accepted Answer

A) True 
 B)False  False

Question 12

Nike's Air Jordan XX3,the 23rd edition of the series of shoes endorsed by retired basketball star Michael Jordan,differs from its predecessors because it is the first basketball shoe shaped by what Nike calls "Nike Considered," an approach to design that favors environmentally preferable materials,reduces toxic chemicals,and curbs waste.By adopting such environmentally supportive standards to make its products,Nike is

Accepted Answer

A)   manipulating the consumer.
B)   behaving in a socially responsible fashion.
C)   perpetuating a materialistic viewpoint.
D)   complying with federal regulations.
E)   initiating a market development strategy.

Question 13

The U.S.Supreme Court has ruled that "commercial speech" is not entitled to any First Amendment protections.

Accepted Answer

A) True 
 B)False

Question 14

Verizon,a provider of cell phone service,frequently runs TV ads that feature a series of maps.One map shows how much of the country is covered by Verizon's service.The other maps show how much of the country is covered by Verizon's major competitors.These commercials are an example of

Accepted Answer

A)   corrective advertising.
B)   unfair advertising.
C)   comparative advertising.
D)   testimonial advertising.
E)   segmented-market advertising.

Question 15

Which of the following is the largest of the U.S.business-monitoring organizations?

Accepted Answer

A)   the Office of Consumer Affairs
B)   the Better Business Bureau
C)   the Consumer Protection Agency
D)   the American Association of Consumers
E)   the U.S. Chamber of Commerce

Question 16

Much of the state legislation that deals with advertising is based on the

Accepted Answer

A)   U.S. Chamber of Commerce handbook.
B)   self-regulation codes of advertising organizations.
C)   "truth-in-advertising" model developed by Printer's Ink.
D)   U.S. Supreme court's "code of commercial speech."
E)   federal government's "General Code of Advertising Ethics." C

Question 17

Adherence to ethical and socially responsible principles is the moral obligation of advertisers.

Accepted Answer

A) True 
 B)False

Question 18

Distinguish between primary demand and selective demand by giving an example of each.

Accepted Answer

Primary demand is consumer demand for a ...

Question 19

Which of the following is a common way that advertising increases the value of a product?

Accepted Answer

A)   Advertised products meet higher quality standards than non-advertised products.
B)   Advertising eliminates all perceptual barriers to purchase a product or service.
C)   Advertising makes the product better known and thus more desirable.
D)   Advertising usually causes the prices of products to increase significantly.
E)   Advertising stresses one primary use for a product.

Question 20

A government agency in the United Kingdom reprimanded Safeway,a UK-based supermarket chain,because it distributed a leaflet titled "More reasons to shop at Morrisons." (Morrisons is one of Safeway's primary competitors in the UK) .In the leaflet,Safeway depicted two shopping receipts,one for Safeway and one for Morrisons.The Safeway receipt claimed goods purchased at Safeway were much cheaper than the same goods purchased at Morrisons.Morrisons said that the goods on the imaginary receipt were not typical purchases and that the reason they were cheaper on the Safeway receipt was that the goods were on sale in the Safeway store.The FTC would have most likely found Safeway guilty of

Accepted Answer

A)   puffery.
B)   pro bono advertising.
C)   deceptive advertising.
D)   an ethical dilemma.
E)   non-competitive advertising.

Exam 2: The Environment of Advertising

Which of the following would be an example of subliminal advertising?

Correct Answer
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The National Advertising Division (NAD) of the Advertising Self-Regulatory Council (ASRC)

Correct Answer
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Advertising can add value to a brand by educating customers about new uses for a product.

Correct Answer
verified

The Federal Trade Commission (FTC) regulates the marketplace by

Correct Answer
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Lori and Juana are going to the mall.Lori wants to buy a pair of athletic shoes,and Juana wants to buy a pair of Reebok cross-trainers.Lori illustrates _ demand while Juana illustrates _ demand.

Correct Answer
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List out the elements of Fair Information Practice Principles.

List and explain briefly the three courses of action open to the Federal Trade Commission (FTC)once it has determined an ad is deceptive or unfair.

Correct Answer
verified
When the FTC determines that an ad is de...
View Answer

Good Housekeeping magazine places its "Seal of Approval" on all the products advertised in it.If any of the products are later found to be defective,Good Housekeeping promises to refund the money paid for the products.This kind of careful screening

Correct Answer
verified

To promote responsible children's advertising and to respond to public concerns,the Council of Better Business Bureaus established the

Correct Answer
verified

The broadcast standards department at a network or affiliated station approves and rejects commercials.

Correct Answer
verified

The Better Business Bureau operates primarily at the national level and is funded by the dues of media groups.

Correct Answer
verified
False

Correct Answer
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The U.S.Supreme Court has ruled that "commercial speech" is not entitled to any First Amendment protections.

Correct Answer
verified

Verizon,a provider of cell phone service,frequently runs TV ads that feature a series of maps.One map shows how much of the country is covered by Verizon's service.The other maps show how much of the country is covered by Verizon's major competitors.These commercials are an example of

Correct Answer
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Which of the following is the largest of the U.S.business-monitoring organizations?

Correct Answer
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Much of the state legislation that deals with advertising is based on the

Correct Answer
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C

Adherence to ethical and socially responsible principles is the moral obligation of advertisers.

Correct Answer
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Distinguish between primary demand and selective demand by giving an example of each.

Correct Answer
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Primary demand is consumer demand for a ...
View Answer

Which of the following is a common way that advertising increases the value of a product?

Correct Answer
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Correct Answer
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Exam 2: The Environment of Advertising

Which of the following would be an example of subliminal advertising?

Correct AnswerverifiedShow Answer

The National Advertising Division (NAD) of the Advertising Self-Regulatory Council (ASRC)

Correct AnswerverifiedShow Answer

Advertising can add value to a brand by educating customers about new uses for a product.

Correct AnswerverifiedShow Answer

The Federal Trade Commission (FTC) regulates the marketplace by

Correct AnswerverifiedShow Answer

Lori and Juana are going to the mall.Lori wants to buy a pair of athletic shoes,and Juana wants to buy a pair of Reebok cross-trainers.Lori illustrates _____ demand while Juana illustrates _____ demand.

Correct AnswerverifiedShow Answer

List out the elements of Fair Information Practice Principles.

List and explain briefly the three courses of action open to the Federal Trade Commission (FTC)once it has determined an ad is deceptive or unfair.

Correct AnswerverifiedWhen the FTC determines that an ad is de...View AnswerShow Answer

Good Housekeeping magazine places its "Seal of Approval" on all the products advertised in it.If any of the products are later found to be defective,Good Housekeeping promises to refund the money paid for the products.This kind of careful screening

Correct AnswerverifiedShow Answer

To promote responsible children's advertising and to respond to public concerns,the Council of Better Business Bureaus established the

Correct AnswerverifiedShow Answer

The broadcast standards department at a network or affiliated station approves and rejects commercials.

Correct AnswerverifiedShow Answer

The Better Business Bureau operates primarily at the national level and is funded by the dues of media groups.

Correct AnswerverifiedFalse

Correct AnswerverifiedShow Answer

The U.S.Supreme Court has ruled that "commercial speech" is not entitled to any First Amendment protections.

Correct AnswerverifiedShow Answer

Verizon,a provider of cell phone service,frequently runs TV ads that feature a series of maps.One map shows how much of the country is covered by Verizon's service.The other maps show how much of the country is covered by Verizon's major competitors.These commercials are an example of

Correct AnswerverifiedShow Answer

Which of the following is the largest of the U.S.business-monitoring organizations?

Correct AnswerverifiedShow Answer

Much of the state legislation that deals with advertising is based on the

Correct AnswerverifiedC

Adherence to ethical and socially responsible principles is the moral obligation of advertisers.

Correct AnswerverifiedShow Answer

Distinguish between primary demand and selective demand by giving an example of each.

Correct AnswerverifiedPrimary demand is consumer demand for a ...View AnswerShow Answer

Which of the following is a common way that advertising increases the value of a product?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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Lori and Juana are going to the mall.Lori wants to buy a pair of athletic shoes,and Juana wants to buy a pair of Reebok cross-trainers.Lori illustrates _ demand while Juana illustrates _ demand.

Correct Answer
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When the FTC determines that an ad is de...
View Answer

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False

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C

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Primary demand is consumer demand for a ...
View Answer

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Correct Answer
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