Deck 21: Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion

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Question
Defenders of advertising say it is unrealistic to attribute a firm's market dominance and barriers to entry solely to advertising.
Defenders of advertising say it is unrealistic to attribute a firm's market dominance and barriers to entry solely to advertising. There are a number of other factors, such as price, product quality, distribution effectiveness, production efficiencies, competitive strategies and even government legislations.
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Question
Critics of advertising argue that consumers ignore ads for products and services they do not really need or that fail to interest them.
Proponents of advertising argue that consumers ignore ads for products and services they do not really need or that fail to interest them. Critics argue that advertising creates needs that do not exist.
Question
Advertising not only informs customers of available goods and services but also facilitates entry into markets for a firm or a new product or brand.
Advertising not only informs customers of available goods and services but also facilitates entry into markets for a firm or a new product or brand; leads to economies of scale in production, marketing, and distribution, which in turn lead to lower prices.
Question
Critics argue that a major contributor to materialism is advertising that shows no direct link between the ownership of a product and social acceptance.
Critics argue that a major contributor to materialism is advertising that suggests material possessions are symbols of status, success, and accomplishment and/or will lead to greater social acceptance, popularity, sex appeal, and so on.
Question
Large advertisers usually sell more of a product or service and have lower production costs.
Large advertisers usually sell more of a product or service, which means they may have lower production costs and can allocate more monies to advertising, so they can afford the costly but more efficient media like network television.
Question
Critics argue that advertising plays a major role in influencing and transmitting social values.
While a number of factors influence the cultural values, lifestyles, and behavior of a society, the overwhelming amount of advertising and its prevalence in the mass media lead many critics to argue that advertising plays a major role in influencing and transmitting social values.
Question
Which of the following statements is true of advertising and promotion?

A)They are the most visible of all business activities.
B)They are less common in a free-market economy.
C)They are not subject to governmental regulation.
D)The methods they use are less prone to scrutiny.
E)They are the least prevalent of all marketing tools.
Question
An action that is legal is always ethical.
Ethics are moral principles and values that govern the actions and decisions of an individual or group. A particular action may be within the law and still not be ethical.
Question
Which of the following statements is true of the relationship between law and ethics?

A)All ethical actions are legal.
B)An action may be within the law and still not be ethical.
C)Legal actions are typically not treated as ethical actions.
D)Ethical actions will not have legal implications.
E)All legal actions are ethical.
Question
There is a general agreement that advertising questions existing stereotypes and creates greater social awareness.
While there is general agreement that advertising is an important social influence agent, opinions as to the value of its contribution are often negative. Advertising is criticized for encouraging materialism, manipulating consumers to buy things they do not really need, perpetuating stereotypes, and controlling the media.
Question
The global campaign launched by the American Advertising Federation (AAF) was targeted at members of the creative teams in ad agencies who were primarily responsible for the message and presentation.
The global campaign launched by the AAF was targeted at corporate executives who were responsible for establishing and maintaining budget levels for advertising. The theme of the campaign, "Advertising. The way great brands get to be great brands," cautions corporate executives not to neglect their brand development.
Question
The American Advertising Federation requires that members of the team creating ads should be given permission to express internally their ethical concerns.
The American Advertising Federation (AAF) requires that advertisers and their agencies, and online and offline media, should discuss privately potential ethical concerns, and members of the team creating ads should be given permission to express internally their ethical concerns.
Question
Most advertisers do not design their messages with the intention to mislead or deceive consumers or run sweepstakes with no intention of awarding prizes.
Most advertisers do not design their messages with the intention to mislead or deceive consumers or run sweepstakes with no intention of awarding prizes. Not only are such practices unethical, but the culprits would damage their reputation and risk prosecution by regulatory groups or government agencies.
Question
According to the Children's Advertising Review Unit (CARU), parents, and not advertisers, are responsible for protecting children from their own susceptibilities while viewing advertisements.
Younger children have a limited capability for evaluating the credibility of information they receive. According to the Children's Advertising Review Unit (CARU), advertisers have a special responsibility to protect children from their own susceptibilities.
Question
Those who believe that materialism is a part of the Protestant ethic are likely to deny material possessions as evidence of success.
Many believe materialism is an acceptable part of the Protestant ethic, which stresses hard work and individual effort and initiative and views the accumulation of material possessions as evidence of success.
Question
The decrease in newspaper subscriptions has led some papers to reduce their publication schedules and begin charging or increasing rates for online subscriptions.
The decrease in newspaper subscriptions has led some papers to reduce their publication schedules and begin charging or increasing rates for online subscriptions.
Question
Advertising has been guilty of stereotyping women and ethnic groups in the past and, in some cases, still does so.
Advertising has been guilty of stereotyping women and ethnic groups in the past and, in some cases, still does so. But as the role of women changes, advertisers are changing their portrayals to remain accurate; they are also trying to increase the incidence of minority groups in ads while avoiding stereotypes.
Question
_____ are moral principles and values that govern the actions and decisions of an individual or group.

A)Regulations
B)Guidelines
C)Policies
D)Ethics
E)Norms
Question
The International Advertising Association has been running a campaign for several years to convince consumers around the world of the economic value of advertising.
The International Advertising Association has been running a campaign for several years to convince consumers around the world of the economic value of advertising.
Question
The problem of untruthful or fraudulent advertising and promotion hardly exists in specific areas at the local level such as mail order or telemarketing.
The problem of untruthful or fraudulent advertising and promotion exists more at the local level and in specific areas such as mail order, telemarketing, and other forms of direct marketing.
Question
Which of the following are critics of advertising likely to state as a reason for marketers to engage in deceptive advertising?

A)Most products in the market are not of good quality.
B)Advertisers usually present only information that is favorable to their position.
C)The National Advertising Review Council does not regulate deceptive advertisements.
D)Studies have found that deceptive advertisements increase sales drastically.
E)Unlike other unethical practices, deceptive advertising has no legal implications.
Question
Attitudes toward the use of sex in advertising is a polarizing issue because:

A)sexual ads promote a deterioration of moral and social values.
B)the use of sex in ads is demeaning for the actors.
C)sexual ads have high stopping power and easily attract attention.
D)everyone agrees that some sexual ads are inappropriate while some aren't.
E)different people have different values and religious orientations.
Question
Advertisers use shock advertising primarily to:

A)increase the brand association of certain products.
B)get consumers' attention amid the clutter.
C)create an ethical model of shock advertising for others to follow.
D)avoid controversy and scrutiny and deliver a direct message.
E)reach conservative or older audiences.
Question
When advertisers make false or misleading claims or fail to award prizes promoted in a contest or sweepstakes, their ads are likely to be labeled as _____.

A)deceptive
B)playful
C)childish
D)intrusive
E)ineffective
Question
Studies conducted by Forrester Research reveal that consumers ignore most ads because:

A)the number and intrusiveness of the ads is too high.
B)they lack time to pay attention to ads.
C)most ads contain violent and offensive information.
D)they are broadcast through traditional media.
E)the ads are too specific to be of help.
Question
Manufacturers of products such as beers often use nudity, sexual suggestiveness, or other startling images to get consumers' attention. Which of the following terms best represents this practice?

A)Covert advertising
B)Surrogate advertising
C)Open advertising
D)Shock advertising
E)Hidden advertising
Question
ScH. Corp., a pharmaceutical company, launches a new painkiller. It claims that the product provides relief within two minutes due to its unique ingredients. Tests reveal that ScH's painkiller contains the same ingredients as those of its competitors and that relief is not guaranteed in all cases. Critics of advertising would classify this as a(n) _____ advertisement.

A)ethical
B)odious
C)deceptive
D)offensive
E)asocial
Question
Stall 5 Inc. claims to be a marketing services provider. It posts online ads that offer freebies to viewers who are willing to sign up for its newsletter. It tricks viewers into providing personal information and delivers no freebies or services in return. Critics of advertising are likely to call this a(n) _____.

A)offensive ad
B)distasteful ad
C)boring ad
D)ethical ad
E)deceptive ad
Question
The type of advertising appeals that have received the most criticism for being in poor taste are:

A)ads targeted at children.
B)fear appeals used to sell beauty products.
C)ill-humored ads that make fun of the socially inept.
D)ads that use sex or nudity.
E)unfair comparative ads used by competing brands.
Question
Which of the following is true of advertising for condoms?

A)The State prohibits advertising for condoms unless it is part of a health campaign.
B)Ads for condoms are permitted on cable television but not on the major networks.
C)Ads for condoms are considered offensive and are legally prohibited from appearing in print media.
D)Health-oriented ads are not as well received by conservatives as are entertaining ads.
E)Condom ads were shown only in late-night time slots until recently.
Question
Tara argues that ads with sex appeals are in bad taste and ineffective in influencing the target audience. Amy disagrees and is of the opinion that these ads are effective as long as they fulfill the marketing objective. Which of the following statements is likely to strengthen Amy's argument?

A)Ads with sex appeal have high stopping power.
B)Ads with sex appeal are enjoyed by men and women equally.
C)Ads with sex appeal are dismissed by conservatives.
D)Ads with sex appeal objectify women and demean them.
E)Ads with sex appeal could distract viewers from the product.
Question
A common criticism of inappropriate sexual appeals in advertisements is that they:

A)are deceptive in nature.
B)mislead consumers.
C)are conservative and boring.
D)make false claims.
E)demean women.
Question
Which of the following is the right classification for advertisements that project sexually appealing images that don't have much relevance to the products that they advertise?

A)Deceptive advertising
B)Misleading advertising
C)Offensive advertising
D)Untruthful advertising
E)Ethical advertising
Question
According to research, which of the following products have the reputation of producing the most irritating commercials?

A)Soft drinks
B)Industrial machinery
C)Alcoholic beverages
D)Hemorrhoid treatments
E)Insurance services
Question
Advertisers continue to use sexual appeals to advertise products such as beer, cigarettes, and cosmetics despite increased criticism from all corners. Which of the following reasons best explains this advertising trend?

A)Sexual appeals in ads can help draw consumers' attention to the brands being advertised.
B)Sexual appeals have a strong association with these kinds of products.
C)Sexual appeals in ads are perceived as relevant and acceptable by men and women equally.
D)Sexual appeals are common in movies and TV shows and have thus become necessary in ads.
E)Sexual appeals offer a strong positioning strategy that results in greater brand loyalty.
Question
An automobile dealer gives away promotional calendars to customers. The calendars show scantily clad female models posing in suggestive poses alongside expensive cars. Critics of advertising would argue that such calendars are:

A)untruthful.
B)misleading.
C)deceptive.
D)in poor taste.
E)antisocial.
Question
The advertising appeals that have received the most criticism for being in poor taste are those using:

A)misrepresentations.
B)violence.
C)sexual appeals.
D)deceptive claims.
E)celebrities.
Question
Jake argues that ads with sex appeals are offensive and ineffective. Dan disagrees and feels that creativity must be respected in all art forms. Which of the following statements is likely to strengthen Jake's argument?

A)Ads with sex appeal have high stopping power.
B)Ads with sex appeal are enjoyed by men and women equally.
C)Ads with sex appeal reach only a focused audience.
D)Ads with sex appeal objectify women and demean them.
E)Ads with sex appeal increase the strength of brand identity.
Question
A lapse in ethical standards or judgment in advertising and promotion can be more damaging to a company than a lapse in other disciplines. Which of the following is a reason for this?

A)Advertising and promotional actions are highly visible and subject to scrutiny.
B)Advertising and promotion are the least expensive of all marketing efforts.
C)Customers are more aware of the activities within an organization than they are of its marketing techniques.
D)Governments do not regulate the flow of information in the other disciplines.
E)There is a two-way interaction between marketers and audience in advertising and promotion.
Question
In _____, marketers use nudity, sexual suggestiveness, or other startling images to get consumers' attention.

A)surrogate advertising
B)open advertising
C)shock advertising
D)covert advertising
E)classified advertising
Question
Advertisements often seek to create needs rather than merely show how a product or service fulfills them. Many critics claim that this aspect of advertising has an adverse effect on consumers' values. Which of the following is the main reason for this claim?

A)Creating needs is likely to discontinue social stereotyping.
B)Consumers are always aware of the difference between needs and wants.
C)Creating needs encourages materialism in people.
D)Advertising leads to easily-content individuals.
E)Marketers who create needs are likely to gain a greater market sharE.Critics argue that a major contributor to materialism is advertising that seeks to create needs rather than merely showing how a product or service fulfills them.
Question
Those who stress on individual effort and hard work and believe that material possessions are evidence of success are likely to accept materialism as a part of _____.

A)the socialist culture
B)the Protestant ethic
C)the communist ideal
D)the spiritualist way of life
E)the feminist movement
Question
Maya argues that advertising to children is unethical. If Talia disagrees with her, which of the following arguments offered by Talia is the most plausible?

A)Young children can differentiate between advertisements and programs.
B)Children can differentiate between reality and fantasy.
C)Children can use their cognitive defenses against misleading ads.
D)Existing restrictions are enough to control children's advertising.
E)Market knowledge and experience allow teens to evaluate ads effectively.
Question
From an advertising perspective, which of the following best explains why critics might be opposed to the use of commercial characters or brand mascots as stars of TV shows?

A)Preschool children cannot differentiate between commercials and programs.
B)Such shows come with requirements for parental guidance and control.
C)Such shows contain violence that is unsuitable for preschool children.
D)There are too many commercial slots in these shows.
E)Children needn't understand advertising to use their cognitive defenses against them.
Question
Which of the following best describes the consumer socialization process?

A)It refers to how marketers influence consumers to move from need recognition to final purchase.
B)It explains why consumers will never completely abandon department store shopping for online shopping.
C)It explains how marketers engage consumers in relationship marketing.
D)It refers to consumers acquiring the skills needed to function in the marketplace.
E)It refers to marketers studying consumers' social skills to understand the market.
Question
Advertisers spend billions of dollars each year to reach children because:

A)they are not vulnerable to advertising.
B)their direct purchases are influenced by television.
C)they can easily interpret the selling intent of a message.
D)they do not have much influence on their family's spending.
E)products made for children are more saleablE.Advertisers spend billions of dollars a year to reach children because TV is an important source of information for them and influences their direct purchases as well as their influence over other family members.
Question
The Children's Advertising Review Unit (CARU) guidelines urge that products and content inappropriate for children should not be advertised or promoted:

A)directly to children.
B)through mainstream channels.
C)to children or their parents.
D)through traditional media.
E)during prime timE.The Children's Advertising Review Unit guidelines urge that products and content inappropriate for children should not be advertised or promoted directly to children.
Question
Critics state that advertising to children is inherently unfair and deceptive and should be banned or severely restricted. Which of the following statements support this argument?

A)Most advertisements shown in traditional media contain nudity.
B)Children have a limited ability to interpret the selling intent of a message.
C)Most advertisements shown in traditional media contain violence.
D)Children do not have spending power though they can identify products.
E)The consumer socialization process is slower in children than in adults.
Question
Critics say that by surrounding consumers with images of extravagant lifestyles and by showing products as symbols of status and success, advertising is likely to:

A)promote a sense of patriotism.
B)initiate positive consumer socialization.
C)raise awareness against stereotypes.
D)reduce people's needs and wants.
E)encourage materialism.
Question
The print ads of Brooke's Clothing Inc. often include nude pictures and content that is sexually suggestive. Which of the following types of advertising is Brooke's using?

A)Shock advertising
B)Surrogate advertising
C)Open advertising
D)Covert advertising
E)Hidden advertising
Question
Which of the following is a condition that exists in the Children's Advertising Review Unit (CARU) guidelines for advertising?

A)Manufacturers of baby-care products should not advertise their products through fictional characters.
B)Children's toys should be advertised only in print media.
C)Advertisers should be cautious not to run baby-care advertisements during prime time.
D)Advertisements targeting children should be withdrawn from mainstream channels.
E)Care should be taken to incorporate minority and other groups in advertisements.
Question
There is a consensus among all groups that advertising:

A)does not create false needs in consumers.
B)attempts to discourage materialism in society.
C)has a more positive social influence than a negative one.
D)is an important social influence agent.
E)minimizes stereotypes about people and groups.
Question
PlayNet Inc., a toy manufacturer, believes that it is important to communicate directly with children rather than their parents. Which of the following considerations should PlayNet keep in mind while advertising to avoid ethical issues?

A)Ads should be such that children's cognitive defenses are required to screen messages.
B)Fantasy characters must be used to sell products that children may not desire as much.
C)The same tools used to reach adults must be used for children for an effective reach.
D)The advertisement must be sensitive to the naiveté of children as consumers.
E)Communication that creates a strong need for the product must be designed.
Question
Which of the following is true of the Children's Advertising Review Unit (CARU)?

A)It is a division of the Federal Trade Commission.
B)It limits its review to print media; it does not cover special effects and animation.
C)It has strict regulatory guidelines for product presentations directed to children.
D)It supervises the advertisements in the United States rather than issuing self-regulatory guidelines.
E)It bases its regulations on the protection of children's rights as defined by the Constitution.
Question
Which of the following justifications did marketing and advertising trade groups use to defend themselves against the American Psychological Association's (APA's) restrictions on advertising?

A) Parents of younger children, rather than the children themselves, make purchase decisions.
B) Products for children are also commercial merchandise that requires advertising.
C) Products for children require more awareness than other commercial products.
D) Children are less aware of their needs compared to adults.
E) Viewing such advertisements is a part of the consumer socialization process in children.
Question
The Children's Advertising Review Unit (CARU) guidelines urge that care should be taken to incorporate minority and other groups in advertisements:

A)to encourage racial and ethnic stereotypes.
B)in order to project a nonracial image of the United States.
C)as a means of controlling the number of advertisements that are shown on TV channels.
D)in order to present positive and pro-social roles and role models wherever possible.
E)as a means to promote appeals to prejudice toward gender roles.
Question
One of the criticisms of advertising is that:

A)it perpetuates stereotypes.
B)it is not aggressive enough.
C)it lacks detailed information.
D)it discourages capitalism.
E)it is unable to control other media content.
Question
_____ is a preoccupation with accumulating possessions rather than intellectual or spiritual concerns.

A)Idealism
B)Naturalism
C)Ethnocentrism
D)Materialism
E)Mysticism
Question
For which of the following product categories is the advertising most likely to be criticized as promoting materialistic values?

A)Consumer goods
B)Industrial machinery
C)Health products
D)Transportation services
E)Alcoholic beverages
Question
Nina argues that it is unfair and deceptive to advertise to children. Which of the following statements is likely to strengthen her argument?

A)Children can differentiate between commercials and programs.
B)Children can perceive the selling intent of commercials.
C)Children require no guidance to distinguish between reality and fantasy.
D)Children require cognitive defenses against misleading advertisements.
E)Children require their parents to make the actual purchasE.Research has shown that children cannot differentiate between commercials and programs, do not perceive the selling intent of commercials, and cannot distinguish between reality and fantasy.Studies also reveal that children must understand how advertising works in order to use their cognitive defenses against it effectively.
Question
Most critics of advertising tolerate informative advertisements better than persuasive advertisements. Which of the following reasons best explains why it is hard to engage in only informational advertising?

A)Customers also want to obtain information from sources other than advertising.
B)Information presented in advertisements often lacks credibility.
C)It is difficult to separate informational advertising from persuasive advertising.
D)Customers would not buy products or services without being persuaded.
E)Advertisements should create needs for marketers to reach their profit objectives.
Question
_____ advertising is criticized for fostering discontent among consumers and encouraging them to purchase products and services as a way of dealing with deeper problems.

A)Educative
B)Social-awareness
C)Persuasive
D)Informational
E)Knowledge-based
Question
Which of the following groups in the United States argues that advertising that portrays women as sex objects contributes to violence against women?

A)The Advertising Research Foundation
B)The American Advertising Federation
C)The American Women's Association
D)The American Psychological Association
E)The National Organization for Women
Question
Which of the following has had a profound impact in reducing sexism and stereotyping in advertising?

A)Decrease in the purchasing power of American women
B)Increase in portrayal of women as submissive
C)Increase in the number of working women
D)Decrease in portrayal of women as independent
E)Increase in the number of economically dependent women
Question
Which of the following is a component most likely to be present in a persuasive advertisement?

A)Price
B)Performance
C)Social status
D)Availability
E)Specifications
Question
Which of the following statements supports defenders of persuasive advertising in terms of Maslow's hierarchy of needs theory?

A)It is natural for individuals to move to higher-order needs such as self-esteem.
B)The basic needs of all individuals are not met in society.
C)Advertising determines how well people can satisfy their basic needs.
D)Consumers lack the ability to defend themselves against persuasive advertisements.
E)Consumers do not have the freedom to make their own purchase decisions.
Question
Persuasive advertising is criticized for:

A)ignoring the psychological needs of consumers.
B)fostering discontent among consumers.
C)encouraging people to focus on intellectual growth.
D)providing too much information in advertisements.
E)ignoring consumers' emotions and anxieties.
Question
Which of the following groups in the United States has been critical of advertisers for the way they portray women in advertisements for clothing, cosmetics, and other products?

A)Advertising Research Foundation
B)American Advertising Federation
C)American Association of Advertising Agencies
D)American Women's Association
E)National Organization for Women
Question
Track Inc., a bike manufacturer, decides to launch a new model. If Track decides to use a persuasive rather than informational strategy, which of the following components is likely to be the focus of the advertisement?

A)Price
B)Performance
C)Durability
D)Specifications
E)Attractiveness
Question
Which of the following products' advertisements is least likely be criticized for encouraging materialism?

A)Lower-end cars
B)Diamond jewelry
C)Wind turbines
D)Specialty foods
E)Furniture
Question
Portrayals of adult women on American television and in print advertising emphasize _____.

A)passivity
B)credibility
C)self-dependence
D)need for power
E)intelligence
Question
Which of the following statements supports the idea that advertisements do not promote materialism?

A)Advertisements create brand loyalty.
B)Material possessions are indicators of status and success.
C)Advertisements can increase or decrease the price elasticity.
D)Consumers' values are defined by the society in which they live.
E)Advertising can create needs that did not exist beforE.Supporters of advertising say that advertising merely reflects the values of society rather than shaping them.They argue that consumers' values are defined by the society in which they live and are the results of extensive, long-term socialization or acculturation.
Question
Critics argue that a major contributor to materialism is advertising that:

A)seeks to fulfill existing needs rather than creating new needs.
B)implies that accumulation of possessions can lead to a content life.
C)promotes equality of ethnic and racial minorities.
D)states that physical goods cannot be symbols of respect and dignity.
E)voices against social stereotypes and gender inequalities.
Question
Research has shown that nonverbal behaviors involving _____ are associated more with boys than girls.

A)passivity and knowledge
B)dominance and control
C)aggression and lack of credibility
D)passivity and trustworthiness
E)aggression and lack of knowledge
Question
Which of the following components is most likely to be reflected in an informational advertisement?

A)Elevation of social status from using the product
B)Celebrities who use the product
C)Performance and availability of the product
D)Attractive appearance of the product
E)Emotional fulfillment from using the product
Question
American television and print advertising have portrayed men as _____.

A)passive
B)deferent
C)achieving
D)lacking intelligence
E)dependent
Question
Space-it-out Design Inc. launches a new range of furniture. The marketing head, Sana, wants to change the advertising strategy from persuasive to informational. Which of the following components is she most likely to remove from the existing advertisement?

A)Price
B)Performance
C)Comfort
D)Availability
E)Attractiveness
Question
Which of the following statements can proponents of advertising use against the charge that advertising makes people buy things they do not need?

A)Customers can be benefitted by the economies of scale that occur due to persuasive advertising.
B)Consumers have the freedom to make their own choices when confronted with persuasive advertising.
C)Materialism is an important freedom of choice in an individualistic society.
D)Advertising provides information on basic needs to customers rather than persuading them.
E)Most persuasive advertisements do not use emotional appeals to persuade customers.
Question
Which of the following supports the view that advertising encourages materialism?

A)Most advertisements are shown during prime time.
B)Ads seek to create needs rather than show how a product fulfills needs.
C)Advertising seeks to promote intellectual rather than materialistic growth.
D)Many ads are broadcast through non-traditional media.
E)Advertisements promote violence rather than showing images of the good lifE.Many critics share the view that advertising is a major contributor to materialism because it creates needs rather than merely showing how a product or service fulfills the needs.
Question
Which of the following statements is true of advertising targeted to African-American and Hispanic consumers?

A)For many years, advertisers ignored African-Americans and Hispanics as identifiable subcultures and viable markets.
B)Over the past two decades, marketing and advertising programs targeted at African-American consumers have decreased.
C)Hispanics or African-Americans have always appeared more in TV advertisements than white people.
D)The use of Hispanic people as spokespersons has been prevalent since the conception of print ads.
E)Hispanics and African-Americans together constitute the largest consumer group in the United States.
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Deck 21: Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion
1
Defenders of advertising say it is unrealistic to attribute a firm's market dominance and barriers to entry solely to advertising.
Defenders of advertising say it is unrealistic to attribute a firm's market dominance and barriers to entry solely to advertising. There are a number of other factors, such as price, product quality, distribution effectiveness, production efficiencies, competitive strategies and even government legislations.
True
2
Critics of advertising argue that consumers ignore ads for products and services they do not really need or that fail to interest them.
Proponents of advertising argue that consumers ignore ads for products and services they do not really need or that fail to interest them. Critics argue that advertising creates needs that do not exist.
False
3
Advertising not only informs customers of available goods and services but also facilitates entry into markets for a firm or a new product or brand.
Advertising not only informs customers of available goods and services but also facilitates entry into markets for a firm or a new product or brand; leads to economies of scale in production, marketing, and distribution, which in turn lead to lower prices.
True
4
Critics argue that a major contributor to materialism is advertising that shows no direct link between the ownership of a product and social acceptance.
Critics argue that a major contributor to materialism is advertising that suggests material possessions are symbols of status, success, and accomplishment and/or will lead to greater social acceptance, popularity, sex appeal, and so on.
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5
Large advertisers usually sell more of a product or service and have lower production costs.
Large advertisers usually sell more of a product or service, which means they may have lower production costs and can allocate more monies to advertising, so they can afford the costly but more efficient media like network television.
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6
Critics argue that advertising plays a major role in influencing and transmitting social values.
While a number of factors influence the cultural values, lifestyles, and behavior of a society, the overwhelming amount of advertising and its prevalence in the mass media lead many critics to argue that advertising plays a major role in influencing and transmitting social values.
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7
Which of the following statements is true of advertising and promotion?

A)They are the most visible of all business activities.
B)They are less common in a free-market economy.
C)They are not subject to governmental regulation.
D)The methods they use are less prone to scrutiny.
E)They are the least prevalent of all marketing tools.
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8
An action that is legal is always ethical.
Ethics are moral principles and values that govern the actions and decisions of an individual or group. A particular action may be within the law and still not be ethical.
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9
Which of the following statements is true of the relationship between law and ethics?

A)All ethical actions are legal.
B)An action may be within the law and still not be ethical.
C)Legal actions are typically not treated as ethical actions.
D)Ethical actions will not have legal implications.
E)All legal actions are ethical.
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10
There is a general agreement that advertising questions existing stereotypes and creates greater social awareness.
While there is general agreement that advertising is an important social influence agent, opinions as to the value of its contribution are often negative. Advertising is criticized for encouraging materialism, manipulating consumers to buy things they do not really need, perpetuating stereotypes, and controlling the media.
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11
The global campaign launched by the American Advertising Federation (AAF) was targeted at members of the creative teams in ad agencies who were primarily responsible for the message and presentation.
The global campaign launched by the AAF was targeted at corporate executives who were responsible for establishing and maintaining budget levels for advertising. The theme of the campaign, "Advertising. The way great brands get to be great brands," cautions corporate executives not to neglect their brand development.
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12
The American Advertising Federation requires that members of the team creating ads should be given permission to express internally their ethical concerns.
The American Advertising Federation (AAF) requires that advertisers and their agencies, and online and offline media, should discuss privately potential ethical concerns, and members of the team creating ads should be given permission to express internally their ethical concerns.
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13
Most advertisers do not design their messages with the intention to mislead or deceive consumers or run sweepstakes with no intention of awarding prizes.
Most advertisers do not design their messages with the intention to mislead or deceive consumers or run sweepstakes with no intention of awarding prizes. Not only are such practices unethical, but the culprits would damage their reputation and risk prosecution by regulatory groups or government agencies.
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14
According to the Children's Advertising Review Unit (CARU), parents, and not advertisers, are responsible for protecting children from their own susceptibilities while viewing advertisements.
Younger children have a limited capability for evaluating the credibility of information they receive. According to the Children's Advertising Review Unit (CARU), advertisers have a special responsibility to protect children from their own susceptibilities.
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15
Those who believe that materialism is a part of the Protestant ethic are likely to deny material possessions as evidence of success.
Many believe materialism is an acceptable part of the Protestant ethic, which stresses hard work and individual effort and initiative and views the accumulation of material possessions as evidence of success.
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16
The decrease in newspaper subscriptions has led some papers to reduce their publication schedules and begin charging or increasing rates for online subscriptions.
The decrease in newspaper subscriptions has led some papers to reduce their publication schedules and begin charging or increasing rates for online subscriptions.
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17
Advertising has been guilty of stereotyping women and ethnic groups in the past and, in some cases, still does so.
Advertising has been guilty of stereotyping women and ethnic groups in the past and, in some cases, still does so. But as the role of women changes, advertisers are changing their portrayals to remain accurate; they are also trying to increase the incidence of minority groups in ads while avoiding stereotypes.
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18
_____ are moral principles and values that govern the actions and decisions of an individual or group.

A)Regulations
B)Guidelines
C)Policies
D)Ethics
E)Norms
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19
The International Advertising Association has been running a campaign for several years to convince consumers around the world of the economic value of advertising.
The International Advertising Association has been running a campaign for several years to convince consumers around the world of the economic value of advertising.
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20
The problem of untruthful or fraudulent advertising and promotion hardly exists in specific areas at the local level such as mail order or telemarketing.
The problem of untruthful or fraudulent advertising and promotion exists more at the local level and in specific areas such as mail order, telemarketing, and other forms of direct marketing.
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21
Which of the following are critics of advertising likely to state as a reason for marketers to engage in deceptive advertising?

A)Most products in the market are not of good quality.
B)Advertisers usually present only information that is favorable to their position.
C)The National Advertising Review Council does not regulate deceptive advertisements.
D)Studies have found that deceptive advertisements increase sales drastically.
E)Unlike other unethical practices, deceptive advertising has no legal implications.
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22
Attitudes toward the use of sex in advertising is a polarizing issue because:

A)sexual ads promote a deterioration of moral and social values.
B)the use of sex in ads is demeaning for the actors.
C)sexual ads have high stopping power and easily attract attention.
D)everyone agrees that some sexual ads are inappropriate while some aren't.
E)different people have different values and religious orientations.
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23
Advertisers use shock advertising primarily to:

A)increase the brand association of certain products.
B)get consumers' attention amid the clutter.
C)create an ethical model of shock advertising for others to follow.
D)avoid controversy and scrutiny and deliver a direct message.
E)reach conservative or older audiences.
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24
When advertisers make false or misleading claims or fail to award prizes promoted in a contest or sweepstakes, their ads are likely to be labeled as _____.

A)deceptive
B)playful
C)childish
D)intrusive
E)ineffective
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25
Studies conducted by Forrester Research reveal that consumers ignore most ads because:

A)the number and intrusiveness of the ads is too high.
B)they lack time to pay attention to ads.
C)most ads contain violent and offensive information.
D)they are broadcast through traditional media.
E)the ads are too specific to be of help.
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26
Manufacturers of products such as beers often use nudity, sexual suggestiveness, or other startling images to get consumers' attention. Which of the following terms best represents this practice?

A)Covert advertising
B)Surrogate advertising
C)Open advertising
D)Shock advertising
E)Hidden advertising
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27
ScH. Corp., a pharmaceutical company, launches a new painkiller. It claims that the product provides relief within two minutes due to its unique ingredients. Tests reveal that ScH's painkiller contains the same ingredients as those of its competitors and that relief is not guaranteed in all cases. Critics of advertising would classify this as a(n) _____ advertisement.

A)ethical
B)odious
C)deceptive
D)offensive
E)asocial
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28
Stall 5 Inc. claims to be a marketing services provider. It posts online ads that offer freebies to viewers who are willing to sign up for its newsletter. It tricks viewers into providing personal information and delivers no freebies or services in return. Critics of advertising are likely to call this a(n) _____.

A)offensive ad
B)distasteful ad
C)boring ad
D)ethical ad
E)deceptive ad
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29
The type of advertising appeals that have received the most criticism for being in poor taste are:

A)ads targeted at children.
B)fear appeals used to sell beauty products.
C)ill-humored ads that make fun of the socially inept.
D)ads that use sex or nudity.
E)unfair comparative ads used by competing brands.
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30
Which of the following is true of advertising for condoms?

A)The State prohibits advertising for condoms unless it is part of a health campaign.
B)Ads for condoms are permitted on cable television but not on the major networks.
C)Ads for condoms are considered offensive and are legally prohibited from appearing in print media.
D)Health-oriented ads are not as well received by conservatives as are entertaining ads.
E)Condom ads were shown only in late-night time slots until recently.
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31
Tara argues that ads with sex appeals are in bad taste and ineffective in influencing the target audience. Amy disagrees and is of the opinion that these ads are effective as long as they fulfill the marketing objective. Which of the following statements is likely to strengthen Amy's argument?

A)Ads with sex appeal have high stopping power.
B)Ads with sex appeal are enjoyed by men and women equally.
C)Ads with sex appeal are dismissed by conservatives.
D)Ads with sex appeal objectify women and demean them.
E)Ads with sex appeal could distract viewers from the product.
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32
A common criticism of inappropriate sexual appeals in advertisements is that they:

A)are deceptive in nature.
B)mislead consumers.
C)are conservative and boring.
D)make false claims.
E)demean women.
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33
Which of the following is the right classification for advertisements that project sexually appealing images that don't have much relevance to the products that they advertise?

A)Deceptive advertising
B)Misleading advertising
C)Offensive advertising
D)Untruthful advertising
E)Ethical advertising
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34
According to research, which of the following products have the reputation of producing the most irritating commercials?

A)Soft drinks
B)Industrial machinery
C)Alcoholic beverages
D)Hemorrhoid treatments
E)Insurance services
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35
Advertisers continue to use sexual appeals to advertise products such as beer, cigarettes, and cosmetics despite increased criticism from all corners. Which of the following reasons best explains this advertising trend?

A)Sexual appeals in ads can help draw consumers' attention to the brands being advertised.
B)Sexual appeals have a strong association with these kinds of products.
C)Sexual appeals in ads are perceived as relevant and acceptable by men and women equally.
D)Sexual appeals are common in movies and TV shows and have thus become necessary in ads.
E)Sexual appeals offer a strong positioning strategy that results in greater brand loyalty.
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36
An automobile dealer gives away promotional calendars to customers. The calendars show scantily clad female models posing in suggestive poses alongside expensive cars. Critics of advertising would argue that such calendars are:

A)untruthful.
B)misleading.
C)deceptive.
D)in poor taste.
E)antisocial.
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37
The advertising appeals that have received the most criticism for being in poor taste are those using:

A)misrepresentations.
B)violence.
C)sexual appeals.
D)deceptive claims.
E)celebrities.
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38
Jake argues that ads with sex appeals are offensive and ineffective. Dan disagrees and feels that creativity must be respected in all art forms. Which of the following statements is likely to strengthen Jake's argument?

A)Ads with sex appeal have high stopping power.
B)Ads with sex appeal are enjoyed by men and women equally.
C)Ads with sex appeal reach only a focused audience.
D)Ads with sex appeal objectify women and demean them.
E)Ads with sex appeal increase the strength of brand identity.
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39
A lapse in ethical standards or judgment in advertising and promotion can be more damaging to a company than a lapse in other disciplines. Which of the following is a reason for this?

A)Advertising and promotional actions are highly visible and subject to scrutiny.
B)Advertising and promotion are the least expensive of all marketing efforts.
C)Customers are more aware of the activities within an organization than they are of its marketing techniques.
D)Governments do not regulate the flow of information in the other disciplines.
E)There is a two-way interaction between marketers and audience in advertising and promotion.
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40
In _____, marketers use nudity, sexual suggestiveness, or other startling images to get consumers' attention.

A)surrogate advertising
B)open advertising
C)shock advertising
D)covert advertising
E)classified advertising
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41
Advertisements often seek to create needs rather than merely show how a product or service fulfills them. Many critics claim that this aspect of advertising has an adverse effect on consumers' values. Which of the following is the main reason for this claim?

A)Creating needs is likely to discontinue social stereotyping.
B)Consumers are always aware of the difference between needs and wants.
C)Creating needs encourages materialism in people.
D)Advertising leads to easily-content individuals.
E)Marketers who create needs are likely to gain a greater market sharE.Critics argue that a major contributor to materialism is advertising that seeks to create needs rather than merely showing how a product or service fulfills them.
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42
Those who stress on individual effort and hard work and believe that material possessions are evidence of success are likely to accept materialism as a part of _____.

A)the socialist culture
B)the Protestant ethic
C)the communist ideal
D)the spiritualist way of life
E)the feminist movement
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43
Maya argues that advertising to children is unethical. If Talia disagrees with her, which of the following arguments offered by Talia is the most plausible?

A)Young children can differentiate between advertisements and programs.
B)Children can differentiate between reality and fantasy.
C)Children can use their cognitive defenses against misleading ads.
D)Existing restrictions are enough to control children's advertising.
E)Market knowledge and experience allow teens to evaluate ads effectively.
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44
From an advertising perspective, which of the following best explains why critics might be opposed to the use of commercial characters or brand mascots as stars of TV shows?

A)Preschool children cannot differentiate between commercials and programs.
B)Such shows come with requirements for parental guidance and control.
C)Such shows contain violence that is unsuitable for preschool children.
D)There are too many commercial slots in these shows.
E)Children needn't understand advertising to use their cognitive defenses against them.
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45
Which of the following best describes the consumer socialization process?

A)It refers to how marketers influence consumers to move from need recognition to final purchase.
B)It explains why consumers will never completely abandon department store shopping for online shopping.
C)It explains how marketers engage consumers in relationship marketing.
D)It refers to consumers acquiring the skills needed to function in the marketplace.
E)It refers to marketers studying consumers' social skills to understand the market.
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46
Advertisers spend billions of dollars each year to reach children because:

A)they are not vulnerable to advertising.
B)their direct purchases are influenced by television.
C)they can easily interpret the selling intent of a message.
D)they do not have much influence on their family's spending.
E)products made for children are more saleablE.Advertisers spend billions of dollars a year to reach children because TV is an important source of information for them and influences their direct purchases as well as their influence over other family members.
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47
The Children's Advertising Review Unit (CARU) guidelines urge that products and content inappropriate for children should not be advertised or promoted:

A)directly to children.
B)through mainstream channels.
C)to children or their parents.
D)through traditional media.
E)during prime timE.The Children's Advertising Review Unit guidelines urge that products and content inappropriate for children should not be advertised or promoted directly to children.
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48
Critics state that advertising to children is inherently unfair and deceptive and should be banned or severely restricted. Which of the following statements support this argument?

A)Most advertisements shown in traditional media contain nudity.
B)Children have a limited ability to interpret the selling intent of a message.
C)Most advertisements shown in traditional media contain violence.
D)Children do not have spending power though they can identify products.
E)The consumer socialization process is slower in children than in adults.
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49
Critics say that by surrounding consumers with images of extravagant lifestyles and by showing products as symbols of status and success, advertising is likely to:

A)promote a sense of patriotism.
B)initiate positive consumer socialization.
C)raise awareness against stereotypes.
D)reduce people's needs and wants.
E)encourage materialism.
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50
The print ads of Brooke's Clothing Inc. often include nude pictures and content that is sexually suggestive. Which of the following types of advertising is Brooke's using?

A)Shock advertising
B)Surrogate advertising
C)Open advertising
D)Covert advertising
E)Hidden advertising
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51
Which of the following is a condition that exists in the Children's Advertising Review Unit (CARU) guidelines for advertising?

A)Manufacturers of baby-care products should not advertise their products through fictional characters.
B)Children's toys should be advertised only in print media.
C)Advertisers should be cautious not to run baby-care advertisements during prime time.
D)Advertisements targeting children should be withdrawn from mainstream channels.
E)Care should be taken to incorporate minority and other groups in advertisements.
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52
There is a consensus among all groups that advertising:

A)does not create false needs in consumers.
B)attempts to discourage materialism in society.
C)has a more positive social influence than a negative one.
D)is an important social influence agent.
E)minimizes stereotypes about people and groups.
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53
PlayNet Inc., a toy manufacturer, believes that it is important to communicate directly with children rather than their parents. Which of the following considerations should PlayNet keep in mind while advertising to avoid ethical issues?

A)Ads should be such that children's cognitive defenses are required to screen messages.
B)Fantasy characters must be used to sell products that children may not desire as much.
C)The same tools used to reach adults must be used for children for an effective reach.
D)The advertisement must be sensitive to the naiveté of children as consumers.
E)Communication that creates a strong need for the product must be designed.
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54
Which of the following is true of the Children's Advertising Review Unit (CARU)?

A)It is a division of the Federal Trade Commission.
B)It limits its review to print media; it does not cover special effects and animation.
C)It has strict regulatory guidelines for product presentations directed to children.
D)It supervises the advertisements in the United States rather than issuing self-regulatory guidelines.
E)It bases its regulations on the protection of children's rights as defined by the Constitution.
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55
Which of the following justifications did marketing and advertising trade groups use to defend themselves against the American Psychological Association's (APA's) restrictions on advertising?

A) Parents of younger children, rather than the children themselves, make purchase decisions.
B) Products for children are also commercial merchandise that requires advertising.
C) Products for children require more awareness than other commercial products.
D) Children are less aware of their needs compared to adults.
E) Viewing such advertisements is a part of the consumer socialization process in children.
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56
The Children's Advertising Review Unit (CARU) guidelines urge that care should be taken to incorporate minority and other groups in advertisements:

A)to encourage racial and ethnic stereotypes.
B)in order to project a nonracial image of the United States.
C)as a means of controlling the number of advertisements that are shown on TV channels.
D)in order to present positive and pro-social roles and role models wherever possible.
E)as a means to promote appeals to prejudice toward gender roles.
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57
One of the criticisms of advertising is that:

A)it perpetuates stereotypes.
B)it is not aggressive enough.
C)it lacks detailed information.
D)it discourages capitalism.
E)it is unable to control other media content.
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58
_____ is a preoccupation with accumulating possessions rather than intellectual or spiritual concerns.

A)Idealism
B)Naturalism
C)Ethnocentrism
D)Materialism
E)Mysticism
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59
For which of the following product categories is the advertising most likely to be criticized as promoting materialistic values?

A)Consumer goods
B)Industrial machinery
C)Health products
D)Transportation services
E)Alcoholic beverages
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60
Nina argues that it is unfair and deceptive to advertise to children. Which of the following statements is likely to strengthen her argument?

A)Children can differentiate between commercials and programs.
B)Children can perceive the selling intent of commercials.
C)Children require no guidance to distinguish between reality and fantasy.
D)Children require cognitive defenses against misleading advertisements.
E)Children require their parents to make the actual purchasE.Research has shown that children cannot differentiate between commercials and programs, do not perceive the selling intent of commercials, and cannot distinguish between reality and fantasy.Studies also reveal that children must understand how advertising works in order to use their cognitive defenses against it effectively.
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61
Most critics of advertising tolerate informative advertisements better than persuasive advertisements. Which of the following reasons best explains why it is hard to engage in only informational advertising?

A)Customers also want to obtain information from sources other than advertising.
B)Information presented in advertisements often lacks credibility.
C)It is difficult to separate informational advertising from persuasive advertising.
D)Customers would not buy products or services without being persuaded.
E)Advertisements should create needs for marketers to reach their profit objectives.
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62
_____ advertising is criticized for fostering discontent among consumers and encouraging them to purchase products and services as a way of dealing with deeper problems.

A)Educative
B)Social-awareness
C)Persuasive
D)Informational
E)Knowledge-based
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63
Which of the following groups in the United States argues that advertising that portrays women as sex objects contributes to violence against women?

A)The Advertising Research Foundation
B)The American Advertising Federation
C)The American Women's Association
D)The American Psychological Association
E)The National Organization for Women
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64
Which of the following has had a profound impact in reducing sexism and stereotyping in advertising?

A)Decrease in the purchasing power of American women
B)Increase in portrayal of women as submissive
C)Increase in the number of working women
D)Decrease in portrayal of women as independent
E)Increase in the number of economically dependent women
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65
Which of the following is a component most likely to be present in a persuasive advertisement?

A)Price
B)Performance
C)Social status
D)Availability
E)Specifications
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66
Which of the following statements supports defenders of persuasive advertising in terms of Maslow's hierarchy of needs theory?

A)It is natural for individuals to move to higher-order needs such as self-esteem.
B)The basic needs of all individuals are not met in society.
C)Advertising determines how well people can satisfy their basic needs.
D)Consumers lack the ability to defend themselves against persuasive advertisements.
E)Consumers do not have the freedom to make their own purchase decisions.
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67
Persuasive advertising is criticized for:

A)ignoring the psychological needs of consumers.
B)fostering discontent among consumers.
C)encouraging people to focus on intellectual growth.
D)providing too much information in advertisements.
E)ignoring consumers' emotions and anxieties.
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68
Which of the following groups in the United States has been critical of advertisers for the way they portray women in advertisements for clothing, cosmetics, and other products?

A)Advertising Research Foundation
B)American Advertising Federation
C)American Association of Advertising Agencies
D)American Women's Association
E)National Organization for Women
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69
Track Inc., a bike manufacturer, decides to launch a new model. If Track decides to use a persuasive rather than informational strategy, which of the following components is likely to be the focus of the advertisement?

A)Price
B)Performance
C)Durability
D)Specifications
E)Attractiveness
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70
Which of the following products' advertisements is least likely be criticized for encouraging materialism?

A)Lower-end cars
B)Diamond jewelry
C)Wind turbines
D)Specialty foods
E)Furniture
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71
Portrayals of adult women on American television and in print advertising emphasize _____.

A)passivity
B)credibility
C)self-dependence
D)need for power
E)intelligence
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72
Which of the following statements supports the idea that advertisements do not promote materialism?

A)Advertisements create brand loyalty.
B)Material possessions are indicators of status and success.
C)Advertisements can increase or decrease the price elasticity.
D)Consumers' values are defined by the society in which they live.
E)Advertising can create needs that did not exist beforE.Supporters of advertising say that advertising merely reflects the values of society rather than shaping them.They argue that consumers' values are defined by the society in which they live and are the results of extensive, long-term socialization or acculturation.
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73
Critics argue that a major contributor to materialism is advertising that:

A)seeks to fulfill existing needs rather than creating new needs.
B)implies that accumulation of possessions can lead to a content life.
C)promotes equality of ethnic and racial minorities.
D)states that physical goods cannot be symbols of respect and dignity.
E)voices against social stereotypes and gender inequalities.
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74
Research has shown that nonverbal behaviors involving _____ are associated more with boys than girls.

A)passivity and knowledge
B)dominance and control
C)aggression and lack of credibility
D)passivity and trustworthiness
E)aggression and lack of knowledge
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75
Which of the following components is most likely to be reflected in an informational advertisement?

A)Elevation of social status from using the product
B)Celebrities who use the product
C)Performance and availability of the product
D)Attractive appearance of the product
E)Emotional fulfillment from using the product
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76
American television and print advertising have portrayed men as _____.

A)passive
B)deferent
C)achieving
D)lacking intelligence
E)dependent
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77
Space-it-out Design Inc. launches a new range of furniture. The marketing head, Sana, wants to change the advertising strategy from persuasive to informational. Which of the following components is she most likely to remove from the existing advertisement?

A)Price
B)Performance
C)Comfort
D)Availability
E)Attractiveness
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78
Which of the following statements can proponents of advertising use against the charge that advertising makes people buy things they do not need?

A)Customers can be benefitted by the economies of scale that occur due to persuasive advertising.
B)Consumers have the freedom to make their own choices when confronted with persuasive advertising.
C)Materialism is an important freedom of choice in an individualistic society.
D)Advertising provides information on basic needs to customers rather than persuading them.
E)Most persuasive advertisements do not use emotional appeals to persuade customers.
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79
Which of the following supports the view that advertising encourages materialism?

A)Most advertisements are shown during prime time.
B)Ads seek to create needs rather than show how a product fulfills needs.
C)Advertising seeks to promote intellectual rather than materialistic growth.
D)Many ads are broadcast through non-traditional media.
E)Advertisements promote violence rather than showing images of the good lifE.Many critics share the view that advertising is a major contributor to materialism because it creates needs rather than merely showing how a product or service fulfills the needs.
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80
Which of the following statements is true of advertising targeted to African-American and Hispanic consumers?

A)For many years, advertisers ignored African-Americans and Hispanics as identifiable subcultures and viable markets.
B)Over the past two decades, marketing and advertising programs targeted at African-American consumers have decreased.
C)Hispanics or African-Americans have always appeared more in TV advertisements than white people.
D)The use of Hispanic people as spokespersons has been prevalent since the conception of print ads.
E)Hispanics and African-Americans together constitute the largest consumer group in the United States.
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Unlock Deck
Unlock for access to all 120 flashcards in this deck.