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

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Question 51

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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

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Question 52

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

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Question 53

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What is the most fundamental ethical issue in advertising? 

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.  -(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 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? 

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

Which of the following claims demonstrates puffery in advertising? 

Subliminal advertising refers to: 

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." -(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             .

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 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.

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

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) The       would prevent Olive's from being sued by the customer blaming it for his obesity.

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.

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: 

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       .

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." -(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         .

Examples of divisions within a local Better Business Bureau-merchandise,financial,and solicitations-investigateadvertising practices of companies in their geographic area.

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. 

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.