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Exam 4: Social Ethical and Regulatory Aspects of Advertising and Promotion

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Question 21

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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 one­sixth 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. HYPERLINK http://www.adbusters.org/home/) (http://www.adbusters.org/home/) -(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 a 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.

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Question 22

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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

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Question 23

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An established cereal manufacturer is being investigated by the FTC for claims that its oatmeal can repair damaged arteries and prevent heart 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:

The was established as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.

When an NFL football player begins endorsing a line of energy bars and protein drinks, he is required to genuinely demonstrate using the product in the advertisement although does not have to utilize the product in day to day life.

It is believed that advertisers deceive via subliminal advertising by:

In recent years, the U.S.Senate has approved a tenfold increase in fines for advertising situations that are determined to step over the line regarding American society's basic ethical principles.What issues are being regulated in this way?

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

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 .

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

Which of the four primary consumer protection organizations was the first to be established, and is best known for its publication of Consumer Reports?

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 is for a designer wear firm depicting 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) According to Maslow's Hierarchy theory, which of the following needs would the third advertisement most likely satisfy?

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.

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 one­sixth 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. HYPERLINK http://www.adbusters.org/home/) (http://www.adbusters.org/home/) -(Scenario 4-2) The CEO of Purple Inc.stated that it's competitors sun glasses is nothing but a fake piece of plastic. This is an example of .

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

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

are moral standards and principles against which behavior is judged.

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

The three primary areas of advertising regulation are obscenity and profanity, deception, and unsolicited or direct marketing.

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.