21.The FTC holds a degree of regulatory power over advertising aimed at children. In general, its efforts have been

a.more successful than the efforts of industry groups and consumer groups.

b.more successful than the efforts of industry groups, but not as successful as those of consumer groups.

c.more successful than the efforts of consumer groups, but not as successful as those of industry groups.

d.not as successful as the efforts of industry groups and consumer groups.

22.The passage of the Wheeler-Lea Amendment in 1938 had a substantial impact on advertising regulation in the United States. The passage of the amendment

a.established the Federal Trade Commission.

b.granted the FTC control over the effects of advertising on competition.

c.allowed the FTC to regulate practices that it considered misleading to consumers.

d.granted industries the right to form self-regulatory organizations.

23.Which of the following is true of consumerism

a.Can be traced to 17th-century England

b.Comes from the fact that consumers want a greater voice in the process of product development, distribution and information dissemination

c.Consumers create pressures on firms through boycotts of brands as well as organizing to bring about regulation

d.All of these are aspects of consumerism

24.Which of the following are regulatory issues in PR, direct marketing and e-commerce?

a.privacy, spam, sweepstakes and telemarketing practices

b.premium offers, trade allowances and product/brand placement

c.image appropriation, copyright infringement, defamation, slander and libel

d.all of these are part of regulatory issues in direct marketing, PR and e-commerce

25.This act does not outlaw all unsolicited email, but rather targets fraudulent, deceptive, and pornographic messages, which is estimated to make up about two-thirds of all commercial unsolicited email. Violators face jail time and fines up to $1 million.

a.Regulatory Reference Actc.Can Spam Act

b.The Wheeler Lea Actd.Free Trade Act

Scenario 6-1

A group that calls itself Adbusters has a site on the World Wide Web. The site contains 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/)

26.(Scenario 6-1) Some of the statements made by Adbusters echo the words of advertising historian Stephen Fox when he wrote, "One may build a compelling case that American culture is--beyond redemption--money-mad, hedonistic, superficial and rushing needlessly down a track called Progress." Fox concluded that

a.advertising must be held accountable for its transgressions.

b.all cultures are as consumption oriented as America.

c.terms like money-mad, hedonistic, and superficial were used to describe America before the dawn of national advertising.

d.advertisers are hidden persuaders who serve a malevolent purpose.

27.(Scenario 6-1) Adbusters faults cigarette companies for targeting billboard campaigns at ethnic and minority groups. In the same vein, advertisers are criticized as portraying women:

a.as superior to menc.as the head of government agencies.

b.as homemakers or objects of desire.d.as intermediate formularies for agencies.

28.(Scenario 6-1) Organizations like "Adbusters" encourage consumers to be proactive and contact government agencies to enforce regulations. This organization would want you to contact the FTC, because it:

a.is the most powerful government agency regulating advertising.

b.is a consumer-regulated board.

c.is a crucial participant in advertising self-regulation.

d.is a state organization directly tied to the federal government.

29.(Scenario 6-1) In the past, Adbusters cited 12 magazines that it said are responsible for pushing "a clean, exciting image for one of the dirtiest products around: tobacco." They suggested that Americans cancel their subscriptions to these magazines until the magazines stopped accepting this advertising. This is an example of

a.a yet-to-be-proved-effective tool called a boycott.

b.the activities of one of the three most powerful consumer organizations in the United States.

c.a group of consumers functioning as a regulatory agent.

d.a recently emerging phenomenon called consumerism.

Scenario 6-2

When the Rally's hamburger chain's Big Buford ad campaign -- "It's not the size; it's the taste" -- began running a few years ago, Louisville's Southeast Christian Church's weekly newspaper, The Southeast Outlook, quickly responded with a series of columns and editorials, all vehemently denouncing the ads as obscene and urging a boycott of Rally's. They included the telephone numbers of Rally's corporate offices and of local television stations. The Outlook later reported that each station received several hundred calls and that Rally's prematurely ended the campaign. (Henry Hoenig, “The Gospel of Growth”, Louisville.com, http://www.louisville.com/loumag/oct98/sec.shtml, 01/08/05).

30.(Scenario 6-2) The Big Buford example is evidence that

a.taste is not a personal and subjective evaluation.

b.fast food must be considered a highly controversial product category.

c.small segments of the population can cause considerable controversy over matters of taste.

d.the concept of political correctness has not been embraced by franchise owners.