Deck 5: Ethical Selling, Marketing, and Advertising
Full screen (f)
Question
A soft drink manufacturer claims its new soda has half the caffeine of leading brands. An independent scientific study supports this statement. This is an example of
A)substantiation.
B)comparisons.
C)a warranty.
D)a testimonial.
A)substantiation.
B)comparisons.
C)a warranty.
D)a testimonial.
Use Space or 
to flip the card.
Question
The _____ regulates advertising in the United States.
A)American Advertising Federation
B)Federal Communications Commission
C)Federal Trade Commission
D)Consumer Financial Protection Bureau
A)American Advertising Federation
B)Federal Communications Commission
C)Federal Trade Commission
D)Consumer Financial Protection Bureau
Question
In sales, elevating the goal means
A)trying to make a bigger sale.
B)striving to get a promotion.
C)developing customer relationships.
D)none of the above
A)trying to make a bigger sale.
B)striving to get a promotion.
C)developing customer relationships.
D)none of the above
Question
A famous athlete endorses a new running shoe. This is an example of
A)substantiation.
B)a testimonial.
C)a guarantee.
D)bait advertising.
A)substantiation.
B)a testimonial.
C)a guarantee.
D)bait advertising.
Question
Which advertising practice is illegal?
A)making false claims about competitors
B)advertising character action figures during a children's cartoon
C)including clearly exaggerated statements in an ad
D)both a and b
A)making false claims about competitors
B)advertising character action figures during a children's cartoon
C)including clearly exaggerated statements in an ad
D)both a and b
Question
Advertisers must be licensed and are required to follow the AAF Code of Ethics.
Question
Match between columns
Premises:
Responses:
Before a blizzard, a hardware store offers snow shovels at three times what they usually cost.
puffery
Before a blizzard, a hardware store offers snow shovels at three times what they usually cost.
bait and switch
Before a blizzard, a hardware store offers snow shovels at three times what they usually cost.
false prizes
Before a blizzard, a hardware store offers snow shovels at three times what they usually cost.
false advertising
Before a blizzard, a hardware store offers snow shovels at three times what they usually cost.
price gouging
A fast-food chain claims it uses 100 percent grain-fed beef in its burgers, but it does not.
puffery
A fast-food chain claims it uses 100 percent grain-fed beef in its burgers, but it does not.
bait and switch
A fast-food chain claims it uses 100 percent grain-fed beef in its burgers, but it does not.
false prizes
A fast-food chain claims it uses 100 percent grain-fed beef in its burgers, but it does not.
false advertising
A fast-food chain claims it uses 100 percent grain-fed beef in its burgers, but it does not.
price gouging
A popular music player is advertised at 60 percent below the usual price. When shoppers get to the store, only a few of these players are available. Salesclerks try to convince them to purchase a more expensive music player.
puffery
A popular music player is advertised at 60 percent below the usual price. When shoppers get to the store, only a few of these players are available. Salesclerks try to convince them to purchase a more expensive music player.
bait and switch
A popular music player is advertised at 60 percent below the usual price. When shoppers get to the store, only a few of these players are available. Salesclerks try to convince them to purchase a more expensive music player.
false prizes
A popular music player is advertised at 60 percent below the usual price. When shoppers get to the store, only a few of these players are available. Salesclerks try to convince them to purchase a more expensive music player.
false advertising
A popular music player is advertised at 60 percent below the usual price. When shoppers get to the store, only a few of these players are available. Salesclerks try to convince them to purchase a more expensive music player.
price gouging
A pizzeria advertises that it has "the tastiest pizza on the planet!"
puffery
A pizzeria advertises that it has "the tastiest pizza on the planet!"
bait and switch
A pizzeria advertises that it has "the tastiest pizza on the planet!"
false prizes
A pizzeria advertises that it has "the tastiest pizza on the planet!"
false advertising
A pizzeria advertises that it has "the tastiest pizza on the planet!"
price gouging
Kendra is told she'll win a valuable reward if she listens to a sales talk. The reward turns out to be a cheap digital camera that breaks the first time she uses it.
puffery
Kendra is told she'll win a valuable reward if she listens to a sales talk. The reward turns out to be a cheap digital camera that breaks the first time she uses it.
bait and switch
Kendra is told she'll win a valuable reward if she listens to a sales talk. The reward turns out to be a cheap digital camera that breaks the first time she uses it.
false prizes
Kendra is told she'll win a valuable reward if she listens to a sales talk. The reward turns out to be a cheap digital camera that breaks the first time she uses it.
false advertising
Kendra is told she'll win a valuable reward if she listens to a sales talk. The reward turns out to be a cheap digital camera that breaks the first time she uses it.
price gouging
Question
Part of ethical selling is learning to listen.
Question
Match between columns
Premises:
Responses:
A method of compensation in which salespeople are rewarded with a percentage of the money from the sales they make, in addition to a salary or hourly wage
code of ethics
A method of compensation in which salespeople are rewarded with a percentage of the money from the sales they make, in addition to a salary or hourly wage
commission
A method of compensation in which salespeople are rewarded with a percentage of the money from the sales they make, in addition to a salary or hourly wage
testimonial
A method of compensation in which salespeople are rewarded with a percentage of the money from the sales they make, in addition to a salary or hourly wage
warranty
A method of compensation in which salespeople are rewarded with a percentage of the money from the sales they make, in addition to a salary or hourly wage
substantiation
A method of compensation in which salespeople are rewarded with a percentage of the money from the sales they make, in addition to a salary or hourly wage
straight commission
A method of compensation in which salespeople are rewarded with a percentage of the money from the sales they make, in addition to a salary or hourly wage
telemarketing
The validation of advertising claims with objective data from independent research
code of ethics
The validation of advertising claims with objective data from independent research
commission
The validation of advertising claims with objective data from independent research
testimonial
The validation of advertising claims with objective data from independent research
warranty
The validation of advertising claims with objective data from independent research
substantiation
The validation of advertising claims with objective data from independent research
straight commission
The validation of advertising claims with objective data from independent research
telemarketing
A method of compensation in which income is based entirely on what a person sells
code of ethics
A method of compensation in which income is based entirely on what a person sells
commission
A method of compensation in which income is based entirely on what a person sells
testimonial
A method of compensation in which income is based entirely on what a person sells
warranty
A method of compensation in which income is based entirely on what a person sells
substantiation
A method of compensation in which income is based entirely on what a person sells
straight commission
A method of compensation in which income is based entirely on what a person sells
telemarketing
A written set of principles and rules intended to serve as a guideline for ethical behavior for individuals under an organization's authority
code of ethics
A written set of principles and rules intended to serve as a guideline for ethical behavior for individuals under an organization's authority
commission
A written set of principles and rules intended to serve as a guideline for ethical behavior for individuals under an organization's authority
testimonial
A written set of principles and rules intended to serve as a guideline for ethical behavior for individuals under an organization's authority
warranty
A written set of principles and rules intended to serve as a guideline for ethical behavior for individuals under an organization's authority
substantiation
A written set of principles and rules intended to serve as a guideline for ethical behavior for individuals under an organization's authority
straight commission
A written set of principles and rules intended to serve as a guideline for ethical behavior for individuals under an organization's authority
telemarketing
The practice of selling directly to individuals through unsolicited phone calls, e-mails, or faxes
code of ethics
The practice of selling directly to individuals through unsolicited phone calls, e-mails, or faxes
commission
The practice of selling directly to individuals through unsolicited phone calls, e-mails, or faxes
testimonial
The practice of selling directly to individuals through unsolicited phone calls, e-mails, or faxes
warranty
The practice of selling directly to individuals through unsolicited phone calls, e-mails, or faxes
substantiation
The practice of selling directly to individuals through unsolicited phone calls, e-mails, or faxes
straight commission
The practice of selling directly to individuals through unsolicited phone calls, e-mails, or faxes
telemarketing
A written promise to repair or replace a product if it breaks or becomes defective within a specified period of time
code of ethics
A written promise to repair or replace a product if it breaks or becomes defective within a specified period of time
commission
A written promise to repair or replace a product if it breaks or becomes defective within a specified period of time
testimonial
A written promise to repair or replace a product if it breaks or becomes defective within a specified period of time
warranty
A written promise to repair or replace a product if it breaks or becomes defective within a specified period of time
substantiation
A written promise to repair or replace a product if it breaks or becomes defective within a specified period of time
straight commission
A written promise to repair or replace a product if it breaks or becomes defective within a specified period of time
telemarketing
An endorsement of a product by someone claiming to have benefited from its use
code of ethics
An endorsement of a product by someone claiming to have benefited from its use
commission
An endorsement of a product by someone claiming to have benefited from its use
testimonial
An endorsement of a product by someone claiming to have benefited from its use
warranty
An endorsement of a product by someone claiming to have benefited from its use
substantiation
An endorsement of a product by someone claiming to have benefited from its use
straight commission
An endorsement of a product by someone claiming to have benefited from its use
telemarketing
Question
Advertisers are free to run many kinds of deceptive ads.
Question
Advertising is considered a form of free speech.
Question
Which is a provision of the AAF Advertising Ethics and Principles?
A)truth
B)price claims
C)taste and decency
D)all of the above
A)truth
B)price claims
C)taste and decency
D)all of the above
Question
The foundation of ethical advertising is that ads should tell the truth.
Question
An ad is illegal if it contains or omits information that
A)is likely to mislead a reasonable consumer.
B)is key to the consumer's decision to buy.
C)both a and b
D)neither a nor b
A)is likely to mislead a reasonable consumer.
B)is key to the consumer's decision to buy.
C)both a and b
D)neither a nor b
Question
Most unethical business actions are based on long-term thinking.
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Deck 5: Ethical Selling, Marketing, and Advertising
1
A soft drink manufacturer claims its new soda has half the caffeine of leading brands. An independent scientific study supports this statement. This is an example of
A)substantiation.
B)comparisons.
C)a warranty.
D)a testimonial.
A)substantiation.
B)comparisons.
C)a warranty.
D)a testimonial.
A
2
The _____ regulates advertising in the United States.
A)American Advertising Federation
B)Federal Communications Commission
C)Federal Trade Commission
D)Consumer Financial Protection Bureau
A)American Advertising Federation
B)Federal Communications Commission
C)Federal Trade Commission
D)Consumer Financial Protection Bureau
C
3
In sales, elevating the goal means
A)trying to make a bigger sale.
B)striving to get a promotion.
C)developing customer relationships.
D)none of the above
A)trying to make a bigger sale.
B)striving to get a promotion.
C)developing customer relationships.
D)none of the above
C
4
A famous athlete endorses a new running shoe. This is an example of
A)substantiation.
B)a testimonial.
C)a guarantee.
D)bait advertising.
A)substantiation.
B)a testimonial.
C)a guarantee.
D)bait advertising.
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Unlock for access to all 15 flashcards in this deck.
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5
Which advertising practice is illegal?
A)making false claims about competitors
B)advertising character action figures during a children's cartoon
C)including clearly exaggerated statements in an ad
D)both a and b
A)making false claims about competitors
B)advertising character action figures during a children's cartoon
C)including clearly exaggerated statements in an ad
D)both a and b
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6
Advertisers must be licensed and are required to follow the AAF Code of Ethics.
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7
Match between columns
Premises:
Responses:
Before a blizzard, a hardware store offers snow shovels at three times what they usually cost.
puffery
Before a blizzard, a hardware store offers snow shovels at three times what they usually cost.
bait and switch
Before a blizzard, a hardware store offers snow shovels at three times what they usually cost.
false prizes
Before a blizzard, a hardware store offers snow shovels at three times what they usually cost.
false advertising
Before a blizzard, a hardware store offers snow shovels at three times what they usually cost.
price gouging
A fast-food chain claims it uses 100 percent grain-fed beef in its burgers, but it does not.
puffery
A fast-food chain claims it uses 100 percent grain-fed beef in its burgers, but it does not.
bait and switch
A fast-food chain claims it uses 100 percent grain-fed beef in its burgers, but it does not.
false prizes
A fast-food chain claims it uses 100 percent grain-fed beef in its burgers, but it does not.
false advertising
A fast-food chain claims it uses 100 percent grain-fed beef in its burgers, but it does not.
price gouging
A popular music player is advertised at 60 percent below the usual price. When shoppers get to the store, only a few of these players are available. Salesclerks try to convince them to purchase a more expensive music player.
puffery
A popular music player is advertised at 60 percent below the usual price. When shoppers get to the store, only a few of these players are available. Salesclerks try to convince them to purchase a more expensive music player.
bait and switch
A popular music player is advertised at 60 percent below the usual price. When shoppers get to the store, only a few of these players are available. Salesclerks try to convince them to purchase a more expensive music player.
false prizes
A popular music player is advertised at 60 percent below the usual price. When shoppers get to the store, only a few of these players are available. Salesclerks try to convince them to purchase a more expensive music player.
false advertising
A popular music player is advertised at 60 percent below the usual price. When shoppers get to the store, only a few of these players are available. Salesclerks try to convince them to purchase a more expensive music player.
price gouging
A pizzeria advertises that it has "the tastiest pizza on the planet!"
puffery
A pizzeria advertises that it has "the tastiest pizza on the planet!"
bait and switch
A pizzeria advertises that it has "the tastiest pizza on the planet!"
false prizes
A pizzeria advertises that it has "the tastiest pizza on the planet!"
false advertising
A pizzeria advertises that it has "the tastiest pizza on the planet!"
price gouging
Kendra is told she'll win a valuable reward if she listens to a sales talk. The reward turns out to be a cheap digital camera that breaks the first time she uses it.
puffery
Kendra is told she'll win a valuable reward if she listens to a sales talk. The reward turns out to be a cheap digital camera that breaks the first time she uses it.
bait and switch
Kendra is told she'll win a valuable reward if she listens to a sales talk. The reward turns out to be a cheap digital camera that breaks the first time she uses it.
false prizes
Kendra is told she'll win a valuable reward if she listens to a sales talk. The reward turns out to be a cheap digital camera that breaks the first time she uses it.
false advertising
Kendra is told she'll win a valuable reward if she listens to a sales talk. The reward turns out to be a cheap digital camera that breaks the first time she uses it.
price gouging
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Unlock for access to all 15 flashcards in this deck.
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8
Part of ethical selling is learning to listen.
Unlock Deck
Unlock for access to all 15 flashcards in this deck.
Unlock Deck
k this deck
9
Match between columns
Premises:
Responses:
A method of compensation in which salespeople are rewarded with a percentage of the money from the sales they make, in addition to a salary or hourly wage
code of ethics
A method of compensation in which salespeople are rewarded with a percentage of the money from the sales they make, in addition to a salary or hourly wage
commission
A method of compensation in which salespeople are rewarded with a percentage of the money from the sales they make, in addition to a salary or hourly wage
testimonial
A method of compensation in which salespeople are rewarded with a percentage of the money from the sales they make, in addition to a salary or hourly wage
warranty
A method of compensation in which salespeople are rewarded with a percentage of the money from the sales they make, in addition to a salary or hourly wage
substantiation
A method of compensation in which salespeople are rewarded with a percentage of the money from the sales they make, in addition to a salary or hourly wage
straight commission
A method of compensation in which salespeople are rewarded with a percentage of the money from the sales they make, in addition to a salary or hourly wage
telemarketing
The validation of advertising claims with objective data from independent research
code of ethics
The validation of advertising claims with objective data from independent research
commission
The validation of advertising claims with objective data from independent research
testimonial
The validation of advertising claims with objective data from independent research
warranty
The validation of advertising claims with objective data from independent research
substantiation
The validation of advertising claims with objective data from independent research
straight commission
The validation of advertising claims with objective data from independent research
telemarketing
A method of compensation in which income is based entirely on what a person sells
code of ethics
A method of compensation in which income is based entirely on what a person sells
commission
A method of compensation in which income is based entirely on what a person sells
testimonial
A method of compensation in which income is based entirely on what a person sells
warranty
A method of compensation in which income is based entirely on what a person sells
substantiation
A method of compensation in which income is based entirely on what a person sells
straight commission
A method of compensation in which income is based entirely on what a person sells
telemarketing
A written set of principles and rules intended to serve as a guideline for ethical behavior for individuals under an organization's authority
code of ethics
A written set of principles and rules intended to serve as a guideline for ethical behavior for individuals under an organization's authority
commission
A written set of principles and rules intended to serve as a guideline for ethical behavior for individuals under an organization's authority
testimonial
A written set of principles and rules intended to serve as a guideline for ethical behavior for individuals under an organization's authority
warranty
A written set of principles and rules intended to serve as a guideline for ethical behavior for individuals under an organization's authority
substantiation
A written set of principles and rules intended to serve as a guideline for ethical behavior for individuals under an organization's authority
straight commission
A written set of principles and rules intended to serve as a guideline for ethical behavior for individuals under an organization's authority
telemarketing
The practice of selling directly to individuals through unsolicited phone calls, e-mails, or faxes
code of ethics
The practice of selling directly to individuals through unsolicited phone calls, e-mails, or faxes
commission
The practice of selling directly to individuals through unsolicited phone calls, e-mails, or faxes
testimonial
The practice of selling directly to individuals through unsolicited phone calls, e-mails, or faxes
warranty
The practice of selling directly to individuals through unsolicited phone calls, e-mails, or faxes
substantiation
The practice of selling directly to individuals through unsolicited phone calls, e-mails, or faxes
straight commission
The practice of selling directly to individuals through unsolicited phone calls, e-mails, or faxes
telemarketing
A written promise to repair or replace a product if it breaks or becomes defective within a specified period of time
code of ethics
A written promise to repair or replace a product if it breaks or becomes defective within a specified period of time
commission
A written promise to repair or replace a product if it breaks or becomes defective within a specified period of time
testimonial
A written promise to repair or replace a product if it breaks or becomes defective within a specified period of time
warranty
A written promise to repair or replace a product if it breaks or becomes defective within a specified period of time
substantiation
A written promise to repair or replace a product if it breaks or becomes defective within a specified period of time
straight commission
A written promise to repair or replace a product if it breaks or becomes defective within a specified period of time
telemarketing
An endorsement of a product by someone claiming to have benefited from its use
code of ethics
An endorsement of a product by someone claiming to have benefited from its use
commission
An endorsement of a product by someone claiming to have benefited from its use
testimonial
An endorsement of a product by someone claiming to have benefited from its use
warranty
An endorsement of a product by someone claiming to have benefited from its use
substantiation
An endorsement of a product by someone claiming to have benefited from its use
straight commission
An endorsement of a product by someone claiming to have benefited from its use
telemarketing
Unlock Deck
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10
Advertisers are free to run many kinds of deceptive ads.
Unlock Deck
Unlock for access to all 15 flashcards in this deck.
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k this deck
11
Advertising is considered a form of free speech.
Unlock Deck
Unlock for access to all 15 flashcards in this deck.
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k this deck
12
Which is a provision of the AAF Advertising Ethics and Principles?
A)truth
B)price claims
C)taste and decency
D)all of the above
A)truth
B)price claims
C)taste and decency
D)all of the above
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Unlock for access to all 15 flashcards in this deck.
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13
The foundation of ethical advertising is that ads should tell the truth.
Unlock Deck
Unlock for access to all 15 flashcards in this deck.
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k this deck
14
An ad is illegal if it contains or omits information that
A)is likely to mislead a reasonable consumer.
B)is key to the consumer's decision to buy.
C)both a and b
D)neither a nor b
A)is likely to mislead a reasonable consumer.
B)is key to the consumer's decision to buy.
C)both a and b
D)neither a nor b
Unlock Deck
Unlock for access to all 15 flashcards in this deck.
Unlock Deck
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15
Most unethical business actions are based on long-term thinking.
Unlock Deck
Unlock for access to all 15 flashcards in this deck.
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k this deck
Unlock Deck
Unlock for access to all 15 flashcards in this deck.

