Ch20 Marketing Regulation and Consumer Behavior Test Bank

Chapter 20 Test Bank

Multiple Choice Questions

1. Government regulatory bodies

A. include the FDA and USDA

B. have increased consumer satisfaction with counterfeit goods

C. ensure the safety of counterfeit consumer goods

D. require manufacturers of branded goods to reimburse consumers who find they have gotten a counterfeit version

E. All of these choices are correct.

2. Which of the following statements is false regarding marketing practices?

A. Marketing practices are sometimes controversial.

B. Regulating marketing activities requires a higher level of understanding of consumer behavior than does managing marketing programs.

C. There are many issues where the appropriate ethical action for marketers is not clear-cut.

D. Society has declared that some marketing actions are clearly inappropriate.

E. There are laws and regulations that prohibit or require specific marketing actions.

3. The regulation of marketing activities aimed at children focuses primarily on which of the following?

A. product safety

B. advertising

C. promotion

D. privacy protection

E. All of these choices are correct.

4. One basis for the concern over marketing to children is based on

A. attribution theory.

B. Piaget's stages of cognitive development.

C. the multiattribute model of cognitive development.

D. dissonance theory.

E. mental development theory.

5. The food industry has responded to concerns regarding children’s health by

A. providing healthier meal options for kids.

B. removing diet sodas and replacing them with diet and other healthier drinks on menus.

C. committing to advertising healthy dietary choices to children under 12.

D. providing healthier meal options for kids. and removing diet sodas and replacing them with diet and other healthier drinks on menus.

E. All of these choices are correct.

6. According to Piaget's stages of cognitive development, children lack the ability to fully process and understand information, including marketing messages, until around age

A. 5.

B. 8.

C. 10.

D. 12.

E. 15.

7. What is the oldest age of a child that most regulation attempts to protect with respect to marketing practices?

A. 2

B. 5

C. 8

D. 10

E. 12

8. Conor is 15 years old. Which of the following statements is true regarding him and other children his age?

A. He most likely still lacks the ability to fully process and understand information, including marketing messages.

B. Most marketing programs aimed at him deliberately attempt to exploit him.

C. He most likely has the ability to fully process and understand information, including marketing messages.

D. While he has the ability to process information, he does not yet have the ability to understand the information.

E. Most regulation regarding marketing to children includes him.

9. Which of the following is the American advertising industry's primary self-regulatory body?

A. Federal Trade Commission

B. National Advertising Division of the Council of Better Business Bureaus

C. Food and Drug Administration

D. Congress

E. media

10. Which of the following is a special unit of the National Advertising Division of the Council of Better Business Bureaus that specifically reviews advertising aimed at children?

A. Children's Advertising Review Unit (CARU)

B. National Advertising Review Board (NARB)

C. National Children's Advertising Division (NCAD)

D. National Children's Advertising Review Board (NCARB)

E. Federal Trade Commission (FTC)

11. Margaret wants to complain about an advertisement targeting children that she saw on a program her children were watching. Which self-regulatory organization should she contact?

A. Children's Advertising Review Unit (CARU)

B. National Advertising Review Board (NARB)

C. National Children's Advertising Division (NCAD)

D. National Children's Advertising Review Board (NCARB)

E. Federal Trade Commission (FTC)

12. How many of the CARU's general guiding principles relate to a child's ability to comprehend commercial messages?

A. one

B. four

C. five

D. six

E. All of these choices are correct.

13. Which of the following is not an information-processing related guideline of the CARU?

A. Claims should not unduly exploit a child’s imagination.

B. Ads should demonstrate the performance and use of the product in a way that can be duplicated by the child for whom the product is intended.

C. Representation of food products should be made so as to encourage sound use of the product with a view toward healthy development of the child and development of good nutritional practices.

D. Program personalities, live or animated, should not be used to sell products, premiums, or services in or adjacent to programs primarily directed to children under 12 years of age in which the same personality or character appears.

E. All disclosures and disclaimers material to children should be understandable to the children in the intended audience and account for their limited vocabulary and language skills.

14. Piaget's theory of cognitive development holds that

A. children must be taught how to be consumers.

B. marketing stimuli play a critical role in child socialization.

C. intellectual capabilities can continue to expand throughout the lifecycle.

D. intellectual capabilities continue to expand until late middle age.

E. None of these choices are correct.

15. When Rose Art Industries changed its packaging due to concerns that size of the product relative to the size of the child shown on the package picture could lead a child to believe that the Super Lite toy was larger than it was, this is related to

A. CARU's guidelines linked to possible information-processing deficits of children

B. CARU's guidelines linked to concerns about the health/safety/value effects of commercial messages on children.

C. COPPA's guidelines regarding processing deficits of children.

D. All of these choices are correct.

E. None of these choices are correct.

16. CARU and others are interested in the impact that the __________ of children's advertising has, as well as the ability of children to process advertising messages.

A. content

B. quantity

C. quality

D. tone

E. All of these choices are correct.

17. What is the concern regarding the limited ability of children to comprehend advertising messages?

A. Do children understand the selling intend of commercials?

B. Can children understand specific aspects of commercials?

C. Do children like commercials?

D. Do children understand the selling intend of commercials? and Can children understand specific aspects of commercials?

E. Do children understand the selling intend of commercials?, Can children understand specific aspects of commercials?, and Do children like commercials?

18. Cathy was babysitting her two nieces on a Saturday morning, and they were watching cartoons together. She noticed that every time a commercial pod came on, there was a little jingle telling the kids that “after these messages, we'll be right back.” This is an example of

A. a discriminator.

B. a warning.

C. a separator.

D. a primer.

E. corrective advertising.

19. “Part of a nutritious breakfast,” “Each sold separately,” and “Batteries not included” are examples of

A. disclaimers.

B. primers.

C. warning labels.

D. deception.

E. corrective advertising.

20. Which of the following is a major area of concern regarding the large amount of time children devote to watching television?

A. The impact of commercial messages on children's values.

B. The impact of commercial messages on children's health and safety.

C. The impact of commercial messages on children's education.

D. The impact of commercial messages on children's values and the impact of commercial messages on children's health and safety.

E. The impact of commercial messages on children's values, the impact of commercial messages on children's health and safety, and the impact of commercial messages on children's education.

21. How many of CARU's basic principles focus on the concern regarding the impact of commercial messages on children's values and their health and safety?

A. one

B. two

C. three

D. four

E. five

22. Which of the following CARU principles addresses the impact of commercial messages on children's values and their health and safety?

A. Although there are many influences that affect a child’s personal and social development, it remains the prime responsibility of the parents to provide guidance for children. Advertisers should contribute to this parent-child relationship in a constructive manner.

B. Advertisers are encouraged to capitalize on the potential of advertising to serve an educational role and influence positive personal qualities and behaviors in children.

C. Advertisers should avoid social stereotyping and appeals to prejudice, and are encouraged to incorporate minority and other groups in ads and to present positive role models whenever possible.

D. Products and content which are inappropriate for children should not be advertised or promoted directly to them.

E. All of these choices are correct.

23. Which of the following statements regarding marketing and children's health and safety is false?

A. Ensuring that advertisements portray only safe uses of products is sometimes difficult, and it is a controversial area.

B. Even ads clearly not targeting children can have potentially harmful consequences.

C. In many instances, children and teenagers are exposed to advertising directed at adults.

D. Advertising of health-related products, particularly snack foods and cereals, is controversial.

E. Advertising sugared products such as presweetened breakfast cereals does increase their consumption.

24. Cindy is bothered about the amount of advertising her 10 year old daughter sees for cosmetics and designer clothes that she feels are too suggestive in nature. Which is Cindy’s major area of concern regarding advertising to children?

A. the impact of commercial messages on children's values

B. the impact of commercial messages on children's health and safety

C. the impact of commercial messages on the economy

D. the impact of commercial messages on her children's cognitive development

E. the impact of commercial messages on her budget

25. Hale noticed in a commercial that his children were watching that children riding bikes were shown not wearing a helmet. He always makes his children wear helmets while riding their bikes, but he's concerned about other children seeing this ad and thinking it's ok to not wear one. What is Hale’s major area of concern regarding advertising to children?

A. the impact of commercial messages on children's values

B. the impact of commercial messages on children's health and safety

C. the impact of commercial messages on the economy

D. the impact of commercial messages on children's cognitive development

E. the impact of commercial messages on family's budgets

26. Advertising is frequently criticized for fostering which type of values in children?

A. overly materialistic

B. self-focused

C. short-term

D. overly materialistic and self-focused

E. overly materialistic, self-focused, and short-term

27. Estimates of the number of TV ads that children are exposed to per year range from

A. 1,000 to 5,000.

B. 8,500 to 15,000.

C. 18,000 to 40,000.

D. 48,000 to 60,000.

E. 73,000 to 100,000.

28. CARU reviews thousands of ads every year and has __________ success rate in resolving issues related to children's advertising.

A. a 10 percent

B. a 25 percent

C. a 50 percent

D. an 80 percent

E. over a 95 percent

29. Which of the following is a marketing activity targeted at children that is considered controversial?

A. violent entertainment products

B. kids' clubs

C. mobile marketing

D. commercialization in schools

E. All of these choices are correct.

30. Which of the following is referred to as the “Third Screen”?

A. television

B. computer

C. video games

D. mobile device

E. movie theater

31. Ringtones, mobile games, and text-in contests are various types of promotional efforts regarding which controversial marketing activity aimed at children?

A. violent entertainment products

B. kids' clubs

C. mobile marketing

D. commercialization of schools

E. online marketing

32. A soft drink manufacturer is running a promotion in which consumers text message from their cell phone a code that they can find under the bottle cap. Consumers entering can win various prizes. This is an example of which type of marketing activity aimed at children that is considered controversial?

A. violent entertainment products

B. kids' clubs

C. mobile marketing

D. commercialization in schools

E. online marketing

33. If consumers call a specific number, they can access games on their cell phones. The games usually involve a branded product or an event, such as the release of a movie. This is an example of which type of marketing activity aimed at children that is considered controversial?

A. violent entertainment products

B. kids' clubs

C. mobile marketing

D. commercialization in schools

E. online marketing

34. Scott participated in a promotion that allowed him to download a ringtone for his cell phone that played the Stars Wars theme song. This is an example of which type of marketing activity aimed at children that is considered controversial?

A. violent entertainment products

B. kids' clubs

C. mobile marketing

D. commercialization in schools

E. online marketing

35. Which of the following is a classification of commercialization of schools?

A. in-school ads

B. ads in classrooms

C. corporate-sponsored educational materials and programs

D. corporate-sponsored contests and incentive programs

E. All of these choices are correct.

36. Which of the following is not a classification of commercialization of schools?

A. in-school ads

B. ads in classrooms

C. corporate-sponsored educational materials and programs

D. corporate-sponsored contests and incentive programs

E. mobile games

37. Ads in such places as school buses, scoreboards, bulletin boards, as well as coupons and free samples represent which of the following?

A. in-school ads

B. ads in classrooms

C. corporate-sponsored educational materials and programs

D. corporate-sponsored contests and incentive programs

E. mobile games

38. At Marci's school, there are logos for McDonald's, Coca-Cola, and Sprint around the football stadium's scoreboard. She was also given pencils that had Gap written on them and a notebook with the Nike swoosh. These are examples of

A. in-school ads.

B. ads in classrooms.

C. corporate-sponsored educational materials and programs.

D. corporate-sponsored contests and incentive programs.

E. mobile games.

39. Channel One is an example of

A. in-school ads.

B. ads in classrooms.

C. corporate-sponsored educational materials and programs.

D. corporate-sponsored contests and incentive programs.

E. mobile games.

40. Corporate-sponsored educational materials and programs are also called

A. propaganda programs (PPs).

B. biased educational materials (BEMs).

C. sponsored educational materials (SEMs).

D. commercial educational materials (CEMs).

E. marketing educational materials (MEMs).

41. Which of the following are teaching materials provided by corporations, usually for free, and come in various forms including posters, activity sheets, and multimedia teaching aids?

A. in-school ads

B. ads in classrooms

C. corporate-sponsored educational materials and programs

D. corporate-sponsored contests and incentive programs

E. mobile games

42. Marilyn is a recent college graduate teaching junior high school science. She has several courses she has to prepare, so she was very pleased when Alcoa Corporation provided her with a teaching unit on recycling. This teaching unit is an example of

A. in-school ads.

B. ads in classrooms.

C. corporate-sponsored educational materials and programs.

D. corporate-sponsored contests and incentive programs.

E. mobile games.

43. The fourth grade class at Westview Elementary School won $10,000 for their school's music program because they entered a contest sponsored by Oscar Mayer bologna in which they sang the famous jingle for that brand (i.e., “my bologna has a first name, it's O-S-C-A-R....”) and won it for their state. This is an example of

A. in-school ads.

B. ads in classrooms.

C. corporate-sponsored educational materials and programs.

D. corporate-sponsored contests and incentive programs.

E. mobile games.

44. What is a major concern that has emerged regarding online marketing and children?

A. invading children's privacy

B. exploitation of children through manipulative sales techniques

C. inappropriate pop-up ads

D. invading children's privacy and exploitation of children through manipulative sales techniques

E. invading children's privacy, exploitation of children through manipulative sales techniques, and inappropriate pop-up ads

45. James is 12 years old and likes to play games on the Internet, and several of these games can be found on marketers' websites that feature characters related to their brands. Some sites require that he gives information such as his name and address, and his mother is very concerned about this. Which major concern regarding online marketing and children does this highlight?

A. invading children's privacy

B. exploitation of children through manipulative sales techniques

C. inappropriate pop-up ads

D. inappropriate site content

E. child pornography

46. Customized games which are placed on a company's website and prominently feature or integrate the company's brands and products as part of the game itself are known as

A. brand games.

B. adver-games.

C. promo-games.

D. interactive games.

E. convergent games.

47. Which of these provisions is not included in The Rule under COPPA?

A. privacy policy

B. parental notice

C. parental consent

D. confidentiality

E. All of these choices are included.

48. __________ relates to the collection and use of information from websites.

A. Online privacy

B. Online security

C. Online research

D. Online commerce

E. Online marketing

49. Which of the following is the result of concern regarding the invasion of children's privacy?

A. Telephone Consumer Protection Act

B. Children's Online Privacy Protection Act

C. Federal Do Not Call Registry

D. Children's Internet Protection Act

E. Children's Internet Act

50. Which of the following statements is true regarding the Children's Online Privacy Protection Act (COPPA)?

A. It does not apply to nonprofits.

B. Information cannot be collected from children, used or disclosed unless the website operator has obtained verifiable parental consent after the information has been collected.

C. The COPPA rules don’t appear to be working.

D. It authorizes CARU to develop specific rules to implement the provisions of the act.

E. All of these choices are correct.

51. What year did the rules based on the guidelines in the Children's Online Privacy Protection Act go in to effect?

A. 1990

B. 1995

C. 1998

D. 2000

E. 2002

52. Rita has noticed when she goes to children-oriented websites with her daughter, that there are clear and prominent links to privacy policies, and whenever an attempt to request information appeared, it required her consent. These things that Rita has noticed are the result of which law?

A. Telephone Consumer Protection Act

B. Children's Online Privacy Protection Act

C. Federal Do Not Call Registry

D. Children's Internet Protection Act

E. Children's Internet Act

53. Regulation of marketing activities aimed at adults has focused on

A. product features.

B. marketing communications.

C. pricing practices.

D. product features and marketing communications.

E. product features, marketing communications, and pricing practices.

54. Which part of the FTC Privacy Protection Framework relates to data security, reasonable collection units, sound retention practices, and data accuracy?

A. simplified consumer choice

B. transparency

C. privacy by design

D. Internet Privacy Act

E. None of these choices are correct.

55. Which of the following are part of the FTC Privacy Protection Framework.

A. privacy by design

B. simplified consumer choice

C. transparency

D. privacy by design and Transparency

E. All of these choices are correct.

56. The FTC has put forth a Privacy Protection Framework, which includes

A. incorporating consumer privacy throughout the organization.

B. simplifying consumer choice.

C. increasing transparency of data practices.

D. incorporating consumer privacy throughout the organization and increasing transparency of data practices.

E. All of these choices are correct.

57. Nat wants to comply with the FTC's recommendations regarding consumer-oriented commercial websites that collect personal identifying information from or about consumers. Which of the following is not one of the recommendations made by the FTC?

A. provide notice to consumers that are transparent

B. allow consumers to choose how information concerning them will be used in a simplified manner

C. require parental consent when collecting information from children under the age of 18

D. offer consumers reasonable access to the information a website has collected about them

E. privacy by design

58. “Royal makes tires for the Jeep Cherokee” is an example of

A. a direct claim.

B. a logical implication.

C. a pragmatic implication.

D. an inferred claim.

E. None of these choices are correct.

59. Which of the following is a major concern regarding legal and ethical behavior with respect to marketing communications?

A. the tastefulness of the ad

B. the accuracy of the information provided

C. the media used to deliver the ad

D. the creativity of the ad

E. the effectiveness of the ad

60. What are the three major concerns regarding legal and ethical behavior with respect to marketing communications?

A. the accuracy of the information provided, the adequacy of the information provided, and the cumulative impact of marketing information on society's values

B. the accuracy of the information provided, the tastefulness of the ad, and the creativity of the ad

C. the media used, the prevalence of advertising, and the tastefulness of the ad

D. the amount of information provided, the tastefulness of the ad, and the cumulative impact of marketing information on society's values

E. the media used, the accuracy of the information provided, and the manner in which the information is provided

61. Critics of ads that emphasize beauty or sex appeal as major benefits feel that the harmful effects may be most severe for which consumers?

A. young men

B. young women

C. minorities

D. older men

E. older women

62. Implied meanings that consumers derive when interpreting language in a practical way are known as

A. false claims.

B. indirect claims.

C. pragmatic implications.

D. practical meanings.

E. direct claims.

63. Which of the following is the most difficult to regulate?

A. the explicit verbal content of ads

B. the subtle meanings implied by the visual content of ads

C. the adequacy of the information provided in ads

D. a website's privacy policy with respect to children

E. the use of corrective advertising

64. Advertising run by a firm to cause consumers to unlearn inaccurate information they acquired as a result of the firm's earlier advertising is called

A. controvertible advertising.

B. redundant advertising.

C. conforming advertising.

D. corrective advertising.

E. retractive advertising.

65. For years, Doan's Pills advertised that this medication is superior for relieving back pain. The FTC found this claim to be deceptive and ordered Doan's to run advertising that informed consumers of this deception in an attempt to cause consumers to unlearn the inaccurate information. What type of advertising is this known as?

A. controvertible advertising

B. redundant advertising

C. conforming advertising

D. corrective advertising

E. retractive advertising

66. Which of the following statements is false regarding corrective advertising?

A. Firms injured by false claims of competitors can request it as a remedy from the FTC.

B. It has been shown to be a useful tool in protecting the public.

C. It is run by a firm to cause consumers to unlearn inaccurate information they acquired as a result of the firm's earlier advertising.

D. A court ruling has challenged the conditions under which the FTC can require it.

E. The effectiveness of it has been debated.

67. In several ads for Listerine over a period of more than a year, the company made statements that previous ads were not true in that Listerine cannot kill the germs that cause a cold. Which type of advertising does this illustrate?

A. controvertible advertising

B. redundant advertising

C. conforming advertising

D. corrective advertising

E. retractive advertising

68. Which of the following has the purpose of ensuring that consumers are provided with adequate information?

A. Telephone Consumer Protection Act

B. truth-in-lending legislation

C. FTC Corrective Advertising Act

D. Internet Protection Act

E. FTC's unfairness authority

69. Which of the following consumers are least likely to be able to use the information provided by marketers?

A. men

B. women

C. those who are relatively disadvantaged in terms of education and income

D. baby boomers

E. professionals who are too busy to attend to the information

70. Which law deals with nutrition labeling on products' packages?

A. Truth-in-Labeling Law

B. Nutritional Labeling and Education Act

C. Trans Fat Labeling Act

D. Fair Packaging and Labeling Act

E. U.S. Packaging and Labeling Law

71. The rule that requires marketers to list the number of grams of trans fat on a product's package is an amendment of which law?

A. Truth-in-Labeling Law

B. Nutritional Labeling and Education Act

C. Fat Labeling Act

D. Fair Packaging and Labeling Act

E. U.S. Packaging and Labeling Law

72. What is paid advertising that looks like the media format in which it appears?

A. sponsored advertising

B. native advertising

C. local advertising

D. media advertising

E. foreign advertising

73. Susan picked up a package of potato chips and noticed on the front of the package the words, “0 grams of trans fat.” She looked at the nutrition label and noticed that listed beneath the number of total grams of fat was the number of grams of trans fat, which was zero in this case. The trans fat information appearing on the nutritional label is a result of the label rule enacted by the

A. NAD.

B. FTC.

C. NLEA.

D. OPPA.

E. FDA.

74. Which of the following is true regarding the FDA’s mandated changes to nutrition labels on packaged foods?

A. the government covers the costs of label redesign

B. the changes reflect the link between diet and chronic diseases

C. the changes make it easier for consumers to make better informed food choices

D. the changes reflect the link between diet and chronic diseases and the changes make it easier for consumers to make better informed food choices

E. the government covers the costs of label redesign, the changes reflect the link between diet and chronic diseases, and the changes make it easier for consumers to make better informed food choices

75. While government and businesses want consumers to have full disclosure, which of the following might result for consumers?

A. information overload

B. increased time to make a decision

C. inability to make a decision

D. all purchases become high-involvement situations

E. inferior choices will be made

76. Which of the following is a major issue consumer groups have concerning products?

A. Are they safe?

B. Are they environmentally sound?

C. Do they meet consumers' needs?

D. Are they safe? and Are they environmentally sound?

E. Are they safe?, Are they environmentally sound?, and Do they meet consumers' needs?

77. The primary federal agency involved in regulating pricing activities is the

A. FTA.

B. FTC.

C. FDA.

D. FPC.

E. FPA.

78. The latest FDA package designs for cigarettes will

A. show half the package covered with verbal warnings.

B. show half the package covered with visual warnings.

C. state that the incidence of smoking has declined since 2005.

D. show half the package covered with verbal warnings and show half the package covered with visual warnings.

E. All of these choices are correct.

79. Marketing practices are sometimes controversial.

80. The regulation of marketing activities aimed at children focuses primarily on product safety, advertising and promotions, and child pornography.

81. Piaget's stages of cognitive development indicate that children lack the ability to fully process and understand information, including marketing messages, until around 12 years of age.

82. The Children's Advertising Review Unit (CARU) is part of the FTC’s regulation of marketing practices aimed at children.

83. CARU guidelines allow for the use of price minimizations such as “only $19.99.”

84. CARU guidelines that prohibit price minimizations such as “only $19.99” are related to concerns regarding advertising effects on health/safety/values.

85. Research indicates that disclaimers such as “Part of a nutritious breakfast” or “Each sold separately” are fully understood even by children as young as three years old.

86. Four of the basic principles that underlie the CARU's guidelines for advertising directed at children focus on the concerns over the impact of commercial messages on children's health and safety and on their values.

87. Even ads clearly not targeting children can have potentially harmful consequences for them.

88. Advertising is frequently criticized as fostering overly materialistic, self-focused, and short-term values in children.

89. Ads in such places as school buses, scoreboards, and bulletin boards are classified by Consumers Union as in-school ads.

90. Concern over the invasion of children's privacy prompted Congress to pass the Children's Internet Protection Act in October 1998.

91. Regulation of marketing activities aimed at adults focuses on marketing communications, product features, pricing practices, and privacy.

92. There are three major concerns focused on the information that marketers provide to consumers, generally in the form of advertisements—the accuracy of the information provided, the adequacy of the information provided, and the cumulative impact of marketing information on society's values.

93. Native advertising raises concerns related to consumer information accuracy.

94. Determining the exact meaning of a marketing message is a simple process.

95. Corrective advertising is advertising run by the government to cause consumers to unlearn inaccurate information they acquired as a result of a firm's earlier advertising.

96. Perhaps the most controversial pricing area today is the use of reference prices.

97. Discuss the concerns about the ability of children to comprehend commercial messages.

98. You just graduated from college and started a new job at a consumer packaged goods manufacturer. You will be involved with marketing activities aimed at children. Briefly describe the controversial marketing activities aimed at children that you should be aware of.

99. List the key provisions of the Children's Online Privacy Protection Act (COPPA).