Chapter 4

Question 1

Corporate Social Responsibility

Answer 1

Philanthropic,
Ethical,
Legal,
Economic/Profit

Question 2

Social responsibility issues

Answer 2

Natural environment,
Consumerism –Ralph Nader, President Kennedy: consumer safety–
Community relations –giving back to benefit society–

Question 3

Ethics

Answer 3

principles of conduct govern individual/group

Question 4

Ethical issues in marketing

Answer 4

Product,
Price,
Place,
Promotion

Question 5

Federal Trade Commission (FTC)

Answer 5

controls unfair competition in advertising, credit claims, labeling & packaging;
1938 Wheller-Lea Amendment
1971 Advertising Substaniation Act: endorser must be user or expert

Question 6

Federal Communications Commission (FCC)

Answer 6

prohibits obscenity, fraud, lotteries on radio and television;
grans broadcast licenses

Question 7

Food and Drug Administration (FDA)

Answer 7

regulates advertising of food, drug, cosmetic, medical products

Question 8

Securities and Exchange Commission (SEC)

Answer 8

regulates advertising of securities –stocks, bonds, mutual funds–

Question 9

Regulation of advertising

Answer 9

False testimonials: endorser not user or expert;
Bait-and-switch;
“Free Offers”: can’t charge exorbitant fees such as postage & handling;
Puffery: bold statements, opinion;
Misleading demonstrations/deceptive advertising

Question 10

Miscomprehension

Answer 10

meaning conveyed to hearer (received reality) different from literal content of message

Question 11

Deceptiveness

Answer 11

conveyed meaning inconsistent with facts about product, regardless of ad’s statement

Question 12

Miscomprehend without being deceived

Answer 12

False, but not interpreted as true –cookies made by elves in trees–

Question 13

True-But-Deceptive Ads (Induced Miscomprehension)

Answer 13

Literally true, but miscomprehend it; most dangerous/damaging –mouth wash kills germs but customer thinks it kills all bacteria in mouth–

Question 14

Elliptical comparatives

Answer 14

comparison made largely vacuous –Budlight gives you more–

Question 15

Implied causation

Answer 15

A caused B –help child excel, buy an apple computer–

Question 16

Implied slur on competition

Answer 16

consumerists infer company is special when it is not –file taxes with us, we go to court if you get audited–

Question 17

Pseudoscience

Answer 17

–4 out of 5 doctors agree–