Q&A Hero

Q: Business's response to consumerism has consistently been to meet consumers' demands as quickly and effectively as possible. a. True b. False

Q: Traditionally, the Food and Drug Administration's primary concern has been the "War on Drugs." a. True b. False

Q: The Food and Drug Administration and the CPSC have been controversial over the decades. a. True b. False

Q: The Food and Drug Administration grew out of the work of one man. a. True b. False

Q: The Consumer Product Safety Commission plays an important role for consumers regarding unsafe products a. True b. False

Q: The Consumer Product Safety Commission's power and budgets have been subject to the administration in office. a. True b. False

Q: The Consumer Product Safety Commission is an independent laboratory that has power of persuasion only. a. True b. False

Q: The debate over product liability law continues. a. True b. False

Q: Market share liability is rarely used today due to the absence of punitive damages. a. True b. False

Q: The standard of absolute liability is less demanding than that of strict liability. a. True b. False

Q: Under the doctrine of strict liability, there is no legal defense for placing on the market a product that is dangerous to a consumer because of a known or knowable defect unless an argument of due diligence is allowed. a. True b. False

Q: One concern about product liability is the size of the financial awards won in court. a. True b. False

Q: U.S. residents, more than people in other countries, tend to sue when they are harmed. a. True b. False

Q: No matter how careful business is regarding the safety of its products, product liability suits are inevitable. a. True b. False

Q: The challenge that management faces is to make products as safe as possible and affordable to consumers. a. True b. False

Q: Court cases and legal doctrine now make it clear that business is responsible for product safety. a. True b. False

Q: By definition, quality does not include service. a. True b. False

Q: The "subjective calculation" for value is a comparison of quality received for the price spent. a. True b. False

Q: Quality and safety of products are central to consumers' concerns. a. True b. False

Q: The origin of consumer activism can be traced back to the late 1700s, to the Boston Tea Party. a. True b. False

Q: As the economy struggles to come out of the recession, consumers have become more cautious and selective about spending. a. True b. False

Q: Customer relationship management (CRM) is the ability of an organization to retain profitable customers. a. True b. False

Q: What role do you think the Warranty Act should play in new extended warranty scams.

Q: In 2010, Pepsi announced a plan to promote healthy foods. What is the status of the program? Have they expanded the idea to other countries?

Q: Describe the different types of self-regulation in advertising. Which type do you think is most effective? Why?

Q: Imagine purchasing a backpack with a "lifetime" warranty. What does a "lifetime" warranty imply? Is it deceptive in any way?

Q: Charges have been leveled against liquor companies for targeting their ads toward children. One commercial series is the Budweiser frog sequence. Evaluate the accuracy of these charges.

Q: Is the advertising practice of product placement unethical?

Q: Some people say that even uninformative advertising is beneficial to consumers and the economy. Evaluate this argument.

Q: What role are the cigarette companies now playing in the ethical issues surrounding smokeless tobacco?

Q: What is wrong with Verizon's ad "Guaranteed to Never Go Up" as well as other listed advertising absurdities in the text?

Q: From a business person's perspective, evaluate L. L. Bean's warranty, "Our products are guaranteed to give 100 percent satisfaction in every way. Return anything purchased from us at any time if it proves otherwise. We will replace it, refund your purchase price or credit your credit card, as you wish. We do not want you to have anything from L. L. Bean that is not completely satisfactory."

Q: The textbook claims that warranties have become more important as e-commerce has become more popular. Why might this be true?

Q: Explain how digital video recorders such as TiVo have contributed to ad creep.

Q: Why is advertising to children particularly troubling to ethicists?

Q: Young children seldom have any money of their own to spend, nor can they get to the store to buy things. Why, then, are marketers so anxious to advertise to children?

Q: Why is the role of business's social responsibility so central to the question of advertising?

Q: In your opinion, is the use of American flags and patriotic themes appropriate in advertising?

Q: Describe the main issues related to using psychological appeals in advertising.

Q: What is the basic reason for the ethical issues surrounding product information?

Q: Describe the ways in which the Internet has facilitated the consumer movement.

Q: The Consumer Financial Protection Bureau: a. enforces consumer financial protection laws. b. takes consumer complaints. c. promotes financial education. d. The CFPB does all of these things.

Q: The Credit Card Act of 2009: a. has reduced the cost of credit cards. b. has been mostly beneficial to consumers. c. has provided universal opportunity for rate increases. d. has provided availability of cards to young people.

Q: The Federal Trade Commission (FTC) a. achieves free and fair completion in the economy. b. protects misleading practices. c. issues trade regulation rules. d. Monitors competitive practices.

Q: The Warranty Act a. sets standards for what must be contained in a warranty and ease with which consumers must be able to understand it. b. says that any unconditional assurance must be promoted as a full warranty. c. says that full warranties do not have to include repair. d. says that shipping charges do not have to be included in a full warranty.

Q: All of the following are "green watchdogs" groups seeking to monitor green advertising and certify green products except a. Green-e b. Forest Stewardship Council c. Energy Star d. EcoNogo

Q: "Functional foods" are all the following except a. yogurts that claim to ease constipation b. butter substitutes that reduce your cholesterol c. Tomato extracts that keep your skill young and ward off cancer d. foods that claim to negatively affect your health functioning

Q: Neuromarketers have concluded that the most effective sounds in terms of psychological appeals include all the following except a. babies giggling b. packages being opened c. vibrating cell phones d. soda being popped and poured

Q: Plot placement is a response to a. the TiVo effect. b. consumer reports. c. age compression. d. self-regulatory guidelines.

Q: Which of the following is a category of top consumer complaints? a. Auto b. Sales c. Airline d. Landlord/Tenant

Q: The federal government's major body for ensuring that business lives up to its responsibilities is the a. Interstate Commerce Commission. b. Federal Communications Commission. c. Federal Trade Commission. d. Consumer Protection Agency.

Q: Which of the following is not a law that addresses information disclosure issues? a. Equal Credit Opportunity Act b. Credit Collection Limitation Act c. Truth-in-Lending Act d. Fair Credit Reporting Act

Q: The Federal Packaging and Labeling Act of 1967 is administered by the a. Federal Trade Commission. b. Consumer Products Council. c. Interstate Commerce Commission. d. Federal Drug Administration.

Q: The purpose of the Federal Packaging and Labeling Act of 1967 was to a. prohibit deceptive labeling of certain consumer products. b. require disclosure of certain important information. c. limit both the type and amount of material used in packaging. d. both prohibit deceptive labeling of certain consumer products and require disclosure of certain important information.

Q: A guarantee that is explicitly offered at the time of sale is called a(n) a. implicit warranty. b. express warranty. c. traditional warranty. d. extended warranty.

Q: An implied warranty is a. available for all new and used products. b. an unspoken promise that there is nothing significantly wrong with the product. c. limited to one year. d. states exactly what is covered and what is not.

Q: The traditional term that was used for advertising located in novel locations (now called ad creep) was a. ambiguous advertising. b. stealth marketing. c. ambient advertising. d. undercover promotion.

Q: Warranties were originally used by manufacturers to a. help sell their products. b. differentiate their products from those of competitors. c. improve the image of their products. d. limit the length of time they were responsible for products.

Q: The fact that advertising can increasingly be found everywhere is referred to as a. the consumer culture. b. expanding markets. c. ad creep. d. evolutionary marketing.

Q: All of the following are significant issues in cigarette advertising except a. promotion of a dangerous product. b. its aim at young audiences. c. its aim at less-educated consumer markets. d. its aim at less-developed countries.

Q: The industry under the greatest attack for its marketing and advertising practices is a. pharmaceuticals. b. liquor. c. automobiles. d. cigarettes.

Q: The basic activity of CARU is a. nominating exceptional children's advertising for national awards. b. to develop guidelines for effective advertising to children. c. to review and evaluate child-directed advertising in all media. d. monitor new developments in ads directed toward children.

Q: CARU was created by: a. Congress. b. the Manufacturer's Self-Advertising Regulation Association. c. the Children's Television Network. d. the Council of Better Business Bureaus.

Q: Age compression is the practice of a. marketing to an older audience. b. airing commercials about products during childrens shows about those products. c. underage consumers responding to alcoholic ads. d. targeting younger children when advertising products meant for older teenagers.

Q: The Children's Television Act was passed to a. prevent violent shows from being broadcast during morning hours. b. prohibit the airing of commercials about products or characters during a show about those products or characters. c. regulate the plotlines of children's shows. d. limit the number of hours children could watch television.

Q: The most recent trend in sex-appeal advertising campaigns is: a. to target the Christian right. b. to target feminists. c. to target sex workers. d. to target younger and younger girls.

Q: The practice of directly contrasting a firm's product with the product of a competitor is called a. comparative advertising. b. puffery. c. the taste test approach. d. denigration.

Q: Advertising that is designed to persuade on the basis of human emotions and emotional needs rather than reason relies on a. puffery. b. concealed facts. c. ambiguous wording. d. psychological appeals.

Q: Which of the following is not a problem associated with psychological appeals? a. Products seldom deliver. b. Stir emotions and manipulate consumers. c. Less memorable than functions or features. d. Take advantage of vulnerability.

Q: Puffery is another way of saying that a statement is an exaggeration that uses a. general superlatives. b. ambiguous praise. c. vague commendations. d. special terminology.

Q: Advertising claims that cannot be substantiated by evidence are termed a. misleading. b. outlandish. c. understatements. d. exaggerated claims.

Q: Use of plot placements involve a. awards given for extraordinarily poor advertisements. b. advertising ideas taken from the storylines of books or movies. c. placement of products part of the storyline of a television show. d. ideas for new products taken from books.

Q: Words that are inherently vague, without being misleading are referred to as a. weasel words. b. mildly deceptive. c. perceptively ambiguous. d. intentionally ambivalent.

Q: Advertising abuses include all of the following types except a. ambiguity. b. concealed facts. c. psychological appeals. d. cynical depictions.

Q: 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.

Q: Information that communicates truths, and avoids exaggeration and innuendo is a. adequate. b. accurate. c. ascetic. d. antithetical.

Q: Information that is direct and straightforward, that is not deceptive or manipulative is a. clear. b. concise. c. convincing. d. creative.

Q: 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.

Q: Issues related to product information include all of the following except a. advertising. b. warranties. c. labeling. d. website design.

Q: 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.