Question 1

Issues related to product information include all of the following except
A) advertising.
B) warranties.
C) labeling.
D) website design.

Accepted Answer

Website design is not directly related to product information issues. Product information issues typically involve how a product is advertised, the warranties provided with it, and how it is labeled, rather than the design of a website.

Question 2

The power held by consumers comes from
A) umbrella organizations.
B) trade associations.
C) company lobbying.
D) grassroots involvement.

Accepted Answer

The power held by consumers comes from grassroots involvement, where individual consumers or groups actively participate in advocating for changes in policies or practices of companies or government organizations. This can include social media campaigns, petitions, boycotts, or other forms of collective action by consumers. Umbrella organizations and trade associations may represent the interests of consumers, but it is ultimately the consumers themselves who have the power to drive change through their actions. Company lobbying may have an influence on government policies, but it does not necessarily represent the interests of consumers.

Question 3

The ability of an organization to effectively identify, acquire, foster, and retain loyal profitable customers is
A) customer service.
B) effective marketing.
C) customer relationship management.
D) ethical marketing.

Accepted Answer

Customer relationship management, or CRM, refers to the strategies and technologies that companies use to manage interactions with customers and to analyze data about customer behavior and preferences. A company that is able to effectively use CRM to identify, acquire, foster, and retain loyal customers is likely to be more successful than one that does not prioritize CRM. While customer service and effective marketing are important components of a successful business, they do not necessarily involve the same level of holistic focus on customer relationships as CRM. Ethical marketing is also important, but it is focused more on ensuring that marketing campaigns are honest, transparent, and socially responsible rather than on building and maintaining lasting customer relationships.

Question 4

Which of the following is not an activity of the CFPB?
A) Taking consumer complaints
B) Researching consumer behavior
C) Promoting political education
D) Restricting unfair, deceptive, or abusive acts or practices

Accepted Answer

The CFPB's primary activities include taking consumer complaints, researching consumer behavior, and restricting unfair, deceptive, or abusive acts or practices. While the agency may have some involvement in educating consumers about their financial rights, it does not promote political education.

Question 5

A consumer's right to choose refers to
A) his right to have an inventory of more than one to choose from.
B) her right to decide what store to buy from.
C) his right to eliminate products that do not meet his needs.
D) the assurance that competition is working effectively.

Accepted Answer

The right to choose ensures that consumers have access to a variety of products and services at competitive prices, indicating that competition is functioning effectively.

Question 6

Which of the following is not one of the rights in the consumer's Magna Carta?
A) right to safety
B) right to be informed
C) right to be protected
D) right to choose

Accepted Answer

The consumer's Magna Carta includes the right to safety, the right to be informed, and the right to choose. However, the right to be protected is not explicitly mentioned as a separate right in the consumer's Magna Carta.

Question 7

Which of the following is not a commonly recognized benefit of advertising?
A) It stimulates competition.
B) It provides information useful in comparison shopping.
C) It provides competitors with information.
D) It lowers the price of goods and services.

Accepted Answer

Advertising is not usually associated with lowering the price of goods and services. Instead, it is often used to persuade consumers to pay a higher price for a particular product or service. The other options listed (A, B, and C) are commonly recognized benefits of advertising.

Question 8

The social movement that seeks to augment the rights and powers of buyers in relation to sellers is
A) caveat emptor.
B) buyer beware.
C) consumerism.
D) purchaser power.

Accepted Answer

Consumerism is a social movement aimed at promoting the rights and interests of consumers. Its focus is on empowering buyers and ensuring that they are protected from unethical practices by sellers. The movement strives to ensure that consumers have access to accurate information, safe products, and fair treatment in the marketplace. The other options, caveat emptor and buyer beware, refer to the traditional legal concept that puts the responsibility on buyers to be informed and cautious when purchasing goods and services. Purchaser power is not a widely recognized term in the context of consumer rights and activism.

Question 9

The consumer movement is still absolutely essential for achieving a fair and just marketplace for all consumers.

Accepted Answer

The consumer movement plays an important role in advocating for consumer rights, promoting product safety, and holding companies accountable for their actions. Despite advancements in technology and regulations, there are still issues that need to be addressed to create a fair and just marketplace for all consumers, making the consumer movement an essential force in achieving this goal.

Question 10

Information that provides potential purchasers with enough information to make the best choice among the options available is
A) adequate.
B) ambivalent.
C) minimal.
D) realistic.

Accepted Answer

Adequate information is necessary for potential purchasers to make informed decisions about their purchases. Providing more than minimal information can help ensure that they have a better understanding of their options and can make the best choice for their needs. Ambivalent or unrealistic information can be confusing or misleading and may not provide potential purchasers with the information they need to make informed decisions.

Question 11

Common consumer complaints include all of the following except
A) poor quality of products.
B) lack of consumer credit.
C) high prices.
D) misleading packaging or labeling.

Accepted Answer

While consumer credit may be a concern for some individuals, it is not typically cited as one of the most common complaints among consumers. Poor quality of products, high prices, and misleading packaging or labeling are much more frequently cited consumer complaints.

Question 12

Advertising abuses include all of the following types except
A) ambiguity.
B) concealed facts.
C) psychological appeals.
D) cynical depictions.

Accepted Answer

Cynical depictions are not typically categorized as an advertising abuse. The other options are recognized forms of misleading or unethical advertising practices.

Question 13

Ambiguous advertising that leaves it to the viewer to infer the message is the use of
A) concealed facts.
B) weasel words.
C) plot placements.
D) exaggerated claims.

Accepted Answer

Ambiguous advertising that leaves it to the viewer to infer the message is the use of weasel words. Weasel words are words or phrases that suggest a positive meaning but are actually meaningless or ambiguous, making it difficult for consumers to determine the truth of the product's claims.

Question 14

Information that is direct and straightforward, that is not deceptive or manipulative is
A) clear.
B) concise.
C) convincing.
D) creative.

Accepted Answer

Clear information is easily understood and does not confuse or mislead the audience. This is important in ethical communication. Choice B (concise) and D (creative) are also important qualities in communication, but they do not address the issue of deceptive or manipulative information. Choice C (convincing) can imply that the information is being influenced to persuade the audience, which can also be seen as misleading. Therefore, A is the best choice.

Question 15

Information that communicates truths, and avoids exaggeration and innuendo is
A) adequate.
B) accurate.
C) ascetic.
D) antithetical.

Accepted Answer

The word "exaggeration" in the question implies that accuracy is needed in the information being communicated. Therefore, the correct choice is accurate.

Question 16

The right to be heard was listed as part of the consumer's Magna Carta because
A) consumers should have a say in a store's hours of operations.
B) many consumers felt that they could not effectively communicate their desires and grievances to businesses.
C) everyone wants to feel that others listen to them.
D) because business has refused to listen to customers.

Accepted Answer

The right to be heard was included in the consumer's Magna Carta because many consumers felt that they could not effectively communicate their desires and grievances to businesses. This right aimed to ensure that businesses would listen and respond to the needs of their customers.

Question 17

Consumers are readily pursuing green products.

Accepted Answer

The answer of Consumers are readily pursuing green products....

Question 18

The father of the consumer movement is
A) Ralph Nader.
B) Dan Murtaugh.
C) Michael Moore.
D) Richard Nixon.

Accepted Answer

Ralph Nader is widely recognized as the father of the consumer movement. As an activist and author in the 1960s and 1970s, Nader brought attention to consumer safety and protection issues, leading to the creation of organizations such as the Consumer Product Safety Commission and the Environmental Protection Agency. His book "Unsafe at Any Speed" was a major catalyst for the passage of automobile safety laws in the United States.

Question 19

The two major classifications of issues in the business/consumer relationship are
A) cost and safety.
B) product information and the product itself.
C) warranties and advertising.
D) customer service and product safety.

Accepted Answer

The two major classifications of issues in the business/consumer relationship are related to the product itself and the product information. This means that consumers are concerned about the quality and effectiveness of the product, as well as accurate and complete information about the product's features, benefits, and potential drawbacks. These issues are closely related, as inaccurate or incomplete product information can lead to misunderstandings and dissatisfaction with the product itself.

Question 20

Obesity researchers say they have data proving that the most sugary, calorie-laden breakfast cereals are marked to children most aggressively.

Accepted Answer

The statement claims that obesity researchers have data proving that sugary cereals are marketed more aggressively to children, which suggests that the statement is true.

Quiz 13: Consumer Stakeholders: Information Issues

Issues related to product information include all of the following except

The power held by consumers comes from

The ability of an organization to effectively identify, acquire, foster, and retain loyal profitable customers is

Which of the following is not an activity of the CFPB?

A consumer's right to choose refers to

Which of the following is not one of the rights in the consumer's Magna Carta?

Which of the following is not a commonly recognized benefit of advertising?

The social movement that seeks to augment the rights and powers of buyers in relation to sellers is

The consumer movement is still absolutely essential for achieving a fair and just marketplace for all consumers.

Information that provides potential purchasers with enough information to make the best choice among the options available is

Common consumer complaints include all of the following except

Advertising abuses include all of the following types except

Ambiguous advertising that leaves it to the viewer to infer the message is the use of

Information that is direct and straightforward, that is not deceptive or manipulative is

Information that communicates truths, and avoids exaggeration and innuendo is

The right to be heard was listed as part of the consumer's Magna Carta because

Consumers are readily pursuing green products.

The father of the consumer movement is

The two major classifications of issues in the business/consumer relationship are

Obesity researchers say they have data proving that the most sugary, calorie-laden breakfast cereals are marked to children most aggressively.