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

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Question 41

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Scenario 4-5 Students from several organizations on campus sponsored a forum to debate the pros and cons of advertising.Student organizations representing consumers, journalists, marketers, entrepreneurs, and political scientists all had members in attendance.Following are some of the comments made at the forum. -(Scenario 4-5) One student stood up at the forum and said, "I bought a bike because the ads for this brand said it was 'the best on the planet.' I just don't think that is true.I've had quite a few problems with this bike compared to other brands that some of my friends own." The courts have ruled that when an advertiser uses absolute superlatives in ads like this, consumers

A) are purposefully deceived.
B) should understand that it is merely exaggerated language.
C) should file complaints concerning unethical advertising practices.
D) are unwitting victims of comparative advertising.

E) A) and B)
F) A) and D)

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Question 42

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Even those who view advertising positively for other reasons often admit that it rarely contributes to art and culture, and art and culture have little room for advertising.

A) True
B) False

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Question 43

Multiple Choice

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Scenario 4-4 Joe Rowan walked into Pederson Toyota one day and began looking at price stickers on Toyota Camrys.He was interested in that model because he had seen a number of television and magazine ads describing the car's features and reputation for reliability.After closely examining the stickers, Joe noticed a line that said "Dealer Promotion Allowance-$125.00." Joe asked a salesperson what that meant.The salesman replied that it was a charge that helped the dealership pay for local advertising to encourage consumers to shop at that particular dealer.After further discussion, Joe learned that almost 5 percent of the cost of the vehicle comes from expense for national and local advertising. -(Scenario 4-4) Which government agency might eventually be reviewing the case if Joe felt he should file a complaint about advertising in the automotive industry?

Scenario 4-6 In late 2010, renowned actress Rachel Leigh Cook spoke out against the entertainment industry and the way it portrays celebrities in advertising. Cook, who starred in the popular 90s hit She's All That, claimed that the airbrushing of celebrities that often takes place before an advertisement is published is a clear case of false advertising. Cook told FoxNews.com, "It breaks my heart to be part of an industry and part of a machine that really pushes out these images and propagates these really terrible standards that are false." Cook went so far in her criticism to question how falsely editorializing is not considered a crime, and stating that so many young women struggle with identity issues in today's society because they are striving to be something that does not exist.(John Dorian, "Rachel Leigh Cook Against Air Brushing, Calls it False Advertising." International Business Times, October 25, 2010.) -(Scenario 4-6) One of the major issues regarding advertising to children is that

Though some are legitimate, many criticisms of advertising prove to be uninformed and simplistic, based on emotion rather than fact, and ignoring complex social and legal factors.

Which of the following depicts advertising as it plays its most important role, and demonstrates its most powerful influence, in our society and around the world?

Scenario 4-1 A group called Adbusters has a website containing many pages that address issues of consumption and culture, media practices, and corporate responsibilities.For example, "The momentum has clearly accelerated.By some measures humans have used more physical resources since World War II than in all of history before it.It's now taking a toll beyond anything we could ever have imagined.What does it mean when one-sixth of the world's population consumes without any real restraint?" Throughout the website, there are many references to advertising's role in creating and maintaining this situation.Not surprisingly, virtually all of the references to the practice of advertising are negative.(http://www.adbusters.org/home/) -(Scenario 4-1) Organizations like Adbusters see advertising as superficial.This view of advertising says that it

Which of the following is true regarding the concept of consumerism?

Although the courts and the FTC have been quite specific about defining many other practices, the definition of ____ has always been relatively vague.

The field of public relations is not restricted by the same types of laws as other business elements of the promotional and marketing mix.

Scenario 4-3 The Lightning Rod is a fishing rod being introduced by Castaway Sports.At a preliminary meeting with its agency, the president of Castaway Sports mentions that the rod can improve casting distance for an average individual by more than 20 percent.The account executive asks if the president has data to support this, and the president says "Yes." The agency proceeds to produce a series of television spots featuring a well-known sports celebrity using the rod and rating it as excellent.The spots run on network television and trumpet the improved casting distance that the rod provides.The slogan of the spots is "Lightning Rod-The Finest Rod Ever Cast." After about a week, a competitor questions whether the rods really offer the improved performance Castaway Sports claims, and decides to file a complaint with the FTC. -(Scenario 4-3) The FTC investigates the claim of 20 percent more casting distance when using the Lightning Rod.Castaway Sports admits that it has no actual data to support the claim but believes it to be true.Still, the FTC rules that should stop running the ads.This is an example of

Critics of advertising claim that advertising carries little if any good product information and that most advertising is biased, limited, and inherently deceptive.

The first government restriction on telemarketing required companies to remove households from their dialing lists when residents requested this.

Scenario 4-3 The Lightning Rod is a fishing rod being introduced by Castaway Sports.At a preliminary meeting with its agency, the president of Castaway Sports mentions that the rod can improve casting distance for an average individual by more than 20 percent.The account executive asks if the president has data to support this, and the president says "Yes." The agency proceeds to produce a series of television spots featuring a well-known sports celebrity using the rod and rating it as excellent.The spots run on network television and trumpet the improved casting distance that the rod provides.The slogan of the spots is "Lightning Rod-The Finest Rod Ever Cast." After about a week, a competitor questions whether the rods really offer the improved performance Castaway Sports claims, and decides to file a complaint with the FTC. -(Scenario 4-3) Based on the FTC decision, the claim of 20 percent extra casting distance is now found to be undocumented and lacking believable evidence.Who is held responsible for making this unsubstantiated claim?

Which aspects of advertising are legal but fall into an ethical gray area, making them almost impossible to legislate against?

Scenario 4-6 In late 2010, renowned actress Rachel Leigh Cook spoke out against the entertainment industry and the way it portrays celebrities in advertising. Cook, who starred in the popular 90s hit She's All That, claimed that the airbrushing of celebrities that often takes place before an advertisement is published is a clear case of false advertising. Cook told FoxNews.com, "It breaks my heart to be part of an industry and part of a machine that really pushes out these images and propagates these really terrible standards that are false." Cook went so far in her criticism to question how falsely editorializing is not considered a crime, and stating that so many young women struggle with identity issues in today's society because they are striving to be something that does not exist.(John Dorian, "Rachel Leigh Cook Against Air Brushing, Calls it False Advertising." International Business Times, October 25, 2010.) -(Scenario 4-6) While some argue that advertising promotes materialism, others argue that advertising addresses a number of basic human needs. An advertisement for a high-end clothing company would likely be appealing to which of these needs?

The text poses questions about whether advertising causes people to smoke and drink.How does it answer these questions?

The calls for restrictions on advertising to children over the years have been based on a number of concerns, one of which is the promotion of superficial material things as necessary and valuable.

Marketers have to be particularly cautious about using ____ as a form of promotion, because fraud abounds in this area.

What is the most fundamental ethical issue in advertising?