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The Federal Trade Commission has filed a complaint against Provide Commerce,the parent company of Pro-Flowers,for "false and misleading" advertising.Pro-Flowers claim that it ships inventory "directly from the fields".The ads imply that the flowers are not picked until they are ordered.Pro-Flowers actually stores flowers in refrigerated warehouses and ships from these warehouses.The FTC can order Pro-Flowers to run _____ and inform its customers that its flowers do not come fresh from the field.


A) substantiated advertisement
B) corrective advertisement
C) cease-desist orders
D) consent orders
E) cessation order

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List and explain briefly the three courses of action open to the Federal Trade Commission (FTC)once it has determined an ad is deceptive or unfair.

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When the FTC determines that an ad is de...

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Which of the following statements about consumer privacy issues is true?


A) Concern about privacy is declining from a high reached during the 1990s.
B) The fact Web sites gather information about visitors without knowledge of the visitors is a privacy concern.
C) Internet companies use the information they gather about consumers to create personalized files about each individual.
D) The Federal Communications Commission regulates privacy rights.
E) Enabling cookies help the Internet users to safeguard their personal information.

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The largest of the U.S.business-monitoring organizations is the Better Business Bureau.

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The basic premise of _____ is that advertisers intentionally create ads with sexual messages that are hidden in the illustrations just below the limen.


A) suggestive selling
B) hidden attribution communication
C) subliminal advertising
D) periliminal communication
E) faux marketing

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Adherence to ethical and socially responsible principles is the moral obligation of advertisers.

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What is ethical advertising?

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Ethical advertising means doin...

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Distinguish between primary demand and selective demand?

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Primary demand: Consumer deman...

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Good Housekeeping magazine places its "Seal of Approval" on all the products advertised in it.If any of the products are later found to be defective,Good Housekeeping promises to refund the money paid for the products.This kind of careful screening:


A) is required by the Federal Trade Commission.
B) is a way for a medium to monitor its advertisements.
C) was required by legislation passed during the Great Depression and Good Housekeeping has continued the practice.
D) is used by most print media,including the tabloids.
E) is redundant given the watchfulness of federal regulatory agencies.

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Which of the following is the largest of the U.S.business-monitoring organizations?


A) Office of Consumer Affairs
B) Better business bureau
C) Consumer protection agency
D) American Association of Consumers
E) U.S.Chamber of commerce

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How has the U.S.Supreme Court intervened in the rights of advertisers under the First Amendment?


A) It has supported the ban against professional advertising.
B) It has established strict control over packaged-goods advertising.
C) It has banned all cigarette advertisements from the broadcast media.
D) It has distinguished between "speech" and "commercial speech" and offered significant protection for truthful commercial speech.
E) It has made social responsibility mandatory for publicly traded firms.

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The National Advertising Division (NAD) of the National Advertising Review Council (NARC) :


A) promotes the benefits of advertising to its critics.
B) serves as the appeal board for decisions made by the National Advertising Review Board.
C) is a monitoring and investigative body.
D) protect consumers from unfair and deceptive advertising.
E) guides new businesses in the development of ethical advertising codes.

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What are the four parts of the Central Hudson test?

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The Central Hudson test includes the fol...

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How does the Library of Congress help regulate advertising?

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The Library of Congress protec...

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What is consumerism?

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The consumer movement gave ris...

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According to the abundance principle,what two important functions does advertising perform?

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Advertising keeps consumers in...

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In a 1940 issue of Time magazine,the Chesapeake and Ohio train lines advertised that riding its trains would provide travelers with "the most pleasant trip they have ever known." This advertiser is using:


A) unfair advertising.
B) hyperbole.
C) deceptive advertising.
D) puffery.
E) exploitative advertising.

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What effect does advertising have on consumer demand?


A) Advertising creates trade barriers that prevent new competitors from entering the marketplace.
B) Advertising slows the rate of product decline.
C) Advertising moves the product quickly to the point in the product life cycle where it can be replaced by more efficient IMC.
D) Advertising slows the adoption process and thus,lengthens the product life cycle.
E) Advertising is intended to provide a smooth layoff to products in the latter stages of their PLC.

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In 2005,Adolph Coors Co.ran an ad which featured a purported taste test between Aspen Edge and Anheuser-Busch's Michelob Ultra.A taste-tester downed a glass of Aspen Edge and took only a sip of Michelob Ultra.A print version of the ad said,"Beer drinkers agree that Aspen Edge has more taste than Michelob Ultra".Coors was forced to remove the television advertisements after Anheuser-Busch said it made unsubstantiated claims about consumer preferences.Anheuser-Busch:


A) was exercising its right to protect its trademark.
B) accused Coors of violating copyright laws.
C) was using laws designed to protect protects from gray marketing.
D) wanted to see the research data that supported this claim of superior taste.
E) issued an unsupported cease-and-desist order.

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Maria is very upset because the writers' strike has caused her to have to live without learning what's to come with the women on Desperate Housewives and how dangerous the secret organization depicted in Heroes is.Her husband is happy as long as something mindless is on television.Maria is exhibiting _____ demand.


A) primary
B) kinked
C) secondary
D) seasoned
E) selective

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