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Q:
When a brand is associated with a major sporting event without any intentional or indirect effort on the brand's part, it is ________ marketing.
A) stealth
B) direct ambush
C) incidental ambush
D) indirect ambush
Q:
When a company increases its advertising and marketing during a major event, such as the Olympics, to capitalize on individuals watching the event, yet is not an official sponsor, it is ________ marketing.
A) allusion
B) incidental
C) distractive
D) saturation
Q:
When a company designs a promotion or event near a major sporting event to capitalize on the attendees to the event without being an official sponsor, it is ________ marketing.
A) allusion
B) incidental
C) distractive
D) saturation
Q:
If Coca-Cola runs an advertisement that suggests the company sponsors the Super Bowl when it does not, which form of ambush marketing is being used?
A) Allusion marketing
B) Incidental marketing
C) Distractive marketing
D) Saturation marketing
Q:
When an organization creates an impression that it is a sponsor of a major event when it is not, it is ________ marketing.
A) allusion
B) incidental
C) distractive
D) saturation
Q:
Indirect ambush marketing occurs when:
A) firms intentionally design advertising or marketing campaigns to capitalize on a major sporting event.
B) a brand is associated with a major sporting event without any intentional or indirect effort on the part of the brand.
C) a brand suggests or hints it is associated with a major sporting event when it is not.
D) consumers are enticed to look at a product by individuals without the individuals realizing the person making the sales pitch is being paid or compensated by the brand.
Q:
Pepsi creates an advertisement suggesting it sponsors the U.S. Olympic basketball team by showing a basketball game in a commercial. This is a form of ________ marketing.
A) stealth
B) direct ambush
C) incidental ambush
D) indirect ambush
Q:
If a firm suggests or hints that it is associated with a major sporting event when it is not, it is:
A) stealth.
B) direct ambush.
C) incidental ambush.
D) indirect ambush.
Q:
Direct ambush marketing occurs when:
A) firms intentionally design advertising or marketing campaigns to capitalize on a major sporting event.
B) a brand is associated with a major sporting event without any intentional or indirect effort on the part of the brand.
C) a brand suggests or hints it is associated with a major sporting event when it is not.
D) consumers are enticed to look at a product by individuals without the individuals realizing the person making the sales pitch is being paid or compensated by the brand.
Q:
When a firm intentionally designs advertisements or marketing campaigns to capitalize on a major sporting event it is ________ marketing.
A) stealth
B) direct ambush
C) incidental ambush
D) indirect ambush
Q:
A brand's attempt to associate itself with a team or event without buying the official rights to do so is:
A) stealth marketing.
B) ambush marketing.
C) brand infringement.
D) puffery.
Q:
The rise in the use of ambush marketing can be attributed to:
A) the increase in expenditures on sponsorships and the use of athletes as endorsers.
B) the increased usage of cause-related marketing.
C) a relaxation in ethical standards by society.
D) changes in regulatory policies of the Federal Trade Commission.
Q:
From a company's perspective, the primary benefit of using cookie technology is it allows the marketing team to:
A) gather information about where a consumer has been on the company's website, how long they were there, and what they did.
B) know what other sites a person has visited on the internet.
C) prepare specific marketing messages and emails to consumers based on their browsing behavior.
D) know who has visited the company's website.
Q:
Although giving or receiving bribes in business-to-business interactions is illegal in the United States, in some countries, such as France and Germany, bribes are:
A) permitted for international firms doing business in France or Germany.
B) permitted for French- or German-owned companies.
C) accepted if it involves a contract with the government, but not allowed for companies doing business with each other.
D) accepted, and companies may even be able to deduct them as business expenses on their taxes.
Q:
The practice of purchasing internet domains that are valuable to other people, companies, or organizations is:
A) brand infringement.
B) domain infringement.
C) domain squatting.
D) brand parity.
Q:
When a company creates a brand name that closely resembles a popular or successful brand, it may be:
A) brand infringement.
B) domain infringement.
C) domain squatting.
D) brand parity.
Q:
Identify the primary concerns and criticisms of advertising.
Q:
One reason marketing professionals target ads to children is that they can be easily influenced.
Q:
Children are an attractive market segment for advertisers because children spend so much money each year.
Q:
While sex sells, marketers must be careful and use good judgment in creating ads that are not offensive.
Q:
Ads featuring underwear, condoms, and feminine hygiene products may be offensive to some people, which has led to regulations restricting when and where the ads can be placed.
Q:
The practice of restricting advertising of alcohol and tobacco products raises the questions of free speech and the freedom for a business to advertise its products, regardless of what those products are.
Q:
Many social commentators suggest that advertising and other forms of marketing perpetuate negative stereotypes of males, females, and minorities.
Q:
One common complaint of advertising is that it causes people to buy more than they can afford.
Q:
Ethics are moral principles that serve as guidelines for both individuals and organizations.
Q:
Morals are beliefs or principles that serve as guidelines for both individuals and organizations.
Q:
Which statement below about the advertising of underwear, sexually-related products, feminine hygiene products, and male enhancement products is false?
A) In Islamic countries, the advertising of personal hygiene and sexually-related products would be highly offensive.
B) It is important for marketing professionals to create advertisements that are not offensive.
C) The use of nudity and sexuality featuring teens and children has been highly criticized.
D) In recent years, there has been a decline in sensitivity towards child molestation, child pornography, and related sexual issues.
Q:
Critics of the beer industry and marketers agree on all of the following statements about alcohol and underage individuals except:
A) many beer commercials encourage underage drinking.
B) many beer commercials encourage brand loyalty or brand switching to a population that should not even be drinking.
C) the use of sex and humor in beer ads has made alcohol appealing to underage individuals.
D) the public service announcements discourage underage drinking.
Q:
Concerns and criticisms regarding advertising include all of the following except advertising:
A) to children is unethical.
B) is often offensive.
C) perpetuates stereotyping of males, females, and minority groups.
D) leads to greater levels of governmental regulation.
Q:
Concerns and criticisms regarding advertising include the following except advertising:
A) causes people to buy more than they can afford.
B) leads to socialism.
C) overemphasizes materialism.
D) increases the costs of goods and services.
Q:
Business ethics are:
A) beliefs or principles that individuals hold concerning what is right and what is wrong.
B) moral principles that individuals hold concerning what is right and what is wrong.
C) moral principles that serve as guidelines for both individuals and organizations.
D) beliefs or principles that serve as guidelines for both individuals and organizations.
Q:
Identify the primary industry agencies that assist in regulating the marketing and advertising industry. Explain the primary function of each.
Q:
Cases filed with one of the agencies in the Council of Better Business Bureaus are normally heard sooner and are less costly than cases filed with the FTC.
Q:
In addition to handling complaints about advertising to children, the National Advertising Review Board (NARB) now prescreens ads directed to children.
Q:
The Children's Advertising Review Unit of the CBBB operates in a manner similar to the National Advertising Division of the CBBB in terms of handling complaints.
Q:
The CARU of the Council of Better Business Bureaus monitors online privacy practices of websites that involve children younger than 13 years of age.
Q:
The Children's Advertising Review Unit (CARU) of the CBBB investigates and monitors all forms of advertising in all media directed toward children younger than 18 years of age.
Q:
The National Advertising Review Board seldom refers cases to the FTC.
Q:
If the National Advertising Review Board rules that a firm's advertisements are not substantiated, then the NARB orders the firm to discontinue the ads. This is very similar to the cease and desist order of the FTC.
Q:
The National Advertising Review Board is composed of advertising professionals and prominent civic individuals.
Q:
Cases that are not settled by the NAD are referred to the Federal Trade Commission.
Q:
If a complaint concerning false or misleading advertising is referred to the Better Business Bureau, the complaint would first be heard by the National Advertising Review Board (NARB).
Q:
In investigating a complaint about deceptive advertising, the role of the NAD is to collect information and evaluate data concerning the complaint to determine whether the advertiser's claim is properly substantiated.
Q:
A complaint filed with the National Advertising Division of the Council of Better Business Bureaus regarding an unsubstantiated advertising claim would be dismissed because substantiation is not a criterion.
Q:
The Council of Better Business Bureaus is an industry regulatory resource that is available to consumers, but not businesses. Businesses must use the FTC to file complaints.
Q:
The most common and well-known advertising and marketing industry regulatory agencies are all part of the FTC.
Q:
The advantages of using industry-based agencies to resolve advertising complaints rather than governmental agencies, such as the FTC, include all of the following except:
A) cases are normally heard sooner and at a lower cost.
B) the disputes are resolved quicker and are seldom referred to the FTC.
C) cases are heard by judges with experience in handling advertising cases.
D) it does not involve any civil penalties and no legal action can be taken.
Q:
In addition to handling complaints about advertising to children, which agency also prescreens ads directed to children?
A) Advertising Self-Regulatory Council
B) Federal Communications Commission
C) National Advertising Division
D) Children's Advertising Review Unit
Q:
Which agency monitors websites that involve children younger than 13 years of age?
A) National Advertising Review Board
B) Federal Communications Commission
C) National Advertising Division
D) Children's Advertising Review Unit
Q:
Which industry agency monitors all forms of advertising directed toward children?
A) National Advertising Division
B) Children's Advertising Review Unit
C) Federal Trade Commission
D) Council of Better Business Bureaus
Q:
If a case is appealed from the National Advertising Review Board, it would go to the:
A) NAD.
B) U.S. Court of Appeals.
C) FTC.
D) administrative board of the CBBB.
Q:
If the NARB rules against an advertiser, it will issue an order that will be very similar to a:
A) consent order of the Federal Trade Commission.
B) cease and desist order of the Federal Trade Commission.
C) corrective advertising order of the Federal Trade Commission.
D) judgment of the U.S. Court of Appeals.
Q:
If the NARB rules against an advertiser, it will:
A) order the firm to discontinue the ad in a manner similar to the consent order of the FTC.
B) ask the firm to modify the ad or discontinue using it.
C) refer the case to the FTC.
D) refer the case to the NAD.
Q:
The NARB of the Council of Better Business Bureau is composed of:
A) consumers and legal experts on advertising law.
B) judges and law professors from various universities.
C) advertising professionals and CEOs of major corporations.
D) advertising professionals and civic individuals.
Q:
An appeal of a decision by the NAD goes to the:
A) United States Court of Appeals.
B) Federal Trade Commission.
C) National Advertising Review Board.
D) Federal Communications Commission.
Q:
If the National Advertising Division finds an advertisement has not been properly substantiated, the NAD normally will:
A) issue a consent order.
B) issue a cease and desist order.
C) refer the case to the FTC for regulatory action.
D) ask the advertiser to modify the ad or discontinue using the ad.
Q:
If a business files a complaint with the NAD of the Council of Better Business Bureaus claiming that one of its competitors has unfairly and deceptively depicted the business in an ad, the NAD will:
A) issue a cease and desist order if it finds the ad is indeed deceptive and misleading.
B) investigate the ad to determine if the FTC Act has been violated.
C) collect information and evaluate data concerning the complaint to determine if the advertiser's claims can be substantiated.
D) refer the case to the Federal Trade Commission since it involves a business filing the complaint.
Q:
Chase files a complaint with his local Better Business Bureau about an advertisement he feels is misleading and deceptive. The BBB would:
A) keep a copy of the complaint in the company's file for future use if someone asked about that particular company.
B) refer the complaint to the National Advertising Division.
C) refer the complaint to the National Advertising Review Board.
D) refer the complaint to the Federal Trade Commission.
Q:
The NAD of the Council of Better Business Bureaus becomes involved in all of the following except:
A) cases of mail fraud.
B) collecting information about misleading advertising.
C) negotiating modification of ads deemed to be misleading.
D) dismissing unsubstantiated complaints about an advertisement.
Q:
If Isabelle contacted a local Better Business Bureau about a particular landscaping service, she would receive a:
A) detailed report of all complaints filed against the company.
B) report about any complaints that were filed against the company by individuals.
C) copy of all communications the BBB had with the particular firm.
D) carefully worded report about any complaints that have been filed with the BBB against the company.
Q:
If Megan wants to know if people have complained about a particular health club being unsafe or unclean, she should contact the:
A) National Advertising Division.
B) Federal Trade Commission.
C) Better Business Bureau.
D) National Advertising Review Board.
Q:
What is a trade regulation?
Q:
Identify the typical steps in an FTC investigation sequence from the initial complaint to a decision that is appealed to the Supreme Court.
Q:
The NARB is supported by the Federal Trade Commission and has legal authority over cases it reviews.
Q:
Federal Trade Commission industry regulation rulings cannot be challenged by an appeal to the U.S. Court of Appeals.
Q:
Before issuing trade regulation rulings, the FTC normally holds a public hearing and accepts both oral and written arguments.
Q:
When the Federal Trade Commission issues a trade regulating ruling, the ruling applies to every firm in an industry, whether the individual company is guilty or not guilty of the marketing practice in question.
Q:
The large number of cases of false and misleading advertising has lead the FTC to order corrective advertising a substantial number of times.
Q:
When the Federal Trade Commission orders a firm to prepare corrective advertisements, the goal is to bring people back to the neutral state that existed before the false and deceptive advertising was used by the company.
Q:
The Federal Trade Commission has the power to order firms to prepare and disseminate corrective advertising.
Q:
The FTC can use the court system to stop unfair and deceptive advertising and communication practices but must go through the normal steps of starting with a consent agreement.
Q:
Cases before the full commission of the FTC can be appealed to the U.S. Court of Appeals and even to the U.S. Supreme Court.
Q:
When the FTC issues an administrative complaint and an administrative judge rules a violation has occurred, the judge issues a cease and desist order.
Q:
If a consent agreement cannot be reached after an investigation by the Federal Trade Commission, the case would next go to the full commission.
Q:
When a company agrees with the Federal Trade Commission and signs a consent order, the company agrees to stop the ad or marketing practice and also agrees to pay civil penalties.
Q:
When a company's management team signs a consent order issued by the FTC they agree to stop the advertisement or marketing practice and they admit they are guilty of false or deceptive advertising.
Q:
When a consent order issued by the Federal Trade Commission is signed, the company has agreed to a corrective advertising program.
Q:
The first step a firm can take to end a FTC investigation of a complaint is the signing of a consent order.
Q:
Complaints that are made to the Federal Trade Commission are made public and registered on the FTC's website.
Q:
Anyone can file a complaint to the FTC concerning what someone deems to be a deceptive or misleading advertising or marketing practice.