Chapter 4

Question 1

Advertising Educates Consumers: Pros

Answer 1

Advertising informs

educates consumers, equipping w/info needed to make informed purchase decisions

consumers enhance their lifestyles and economic power because they are better educated

consumers can become more aware of their own tendencies toward being persuaded by certain types of product information.

reduces product search time

good for storytelling

communicates important issues such as environmental protection and healthy lifestyles

Question 2

Advertising Educates Consumers: Cons

Answer 2

Advertising Is Superficial and Intrusive

Many ads don’t carry enough actual product information, biased

can be intrusive

can be clutter

Question 3

Advertising Improves the Standard of Living: Pros

Answer 3

The Economic Effects of Advertising Lower the Cost of Products

economies of scale (ads stimulate demand)

greater variety of choice (bc advertising increases the probability of new product success) and firms will incur less failed product introductions, making products cost less

competition pressures - have to have fresh, marketable brands - motivates firms

diffusion of innovation - new products can be delivered to large audiences quickly

Question 4

Advertising Improves the Standard of Living: Cons

Answer 4

Advertising Wastes Resources and Raises the Standard of Living Only for Some

can be inefficient and wasteful - shuffle existing demand instead of creating new demand

brand differences may be trivial - so no greater variety of choice rather a waste of resources

only widens the gap between rich and poor

Question 5

Advertising Affects Happiness and General Well-Being: Con

Answer 5

Advertising Creates Needs

makes people buy things they don’t really need or want - creates needs and wants

advertising could create perceived “needs” that are not for things but for unobtainable standards

Question 6

Advertising Affects Happiness and General Well-Being: Pro

Answer 6

Advertising Addresses a Wide Variety of Basic Human Needs

advertising does not create basic human needs - people turn to goods and services to satisfy needs such as hunger

Can remind us of 5 types of needs that we all share

Question 7

5 Types of needs

Answer 7

Physiological needs - biological needs, hunger, thirst, etc.

Safety needs - need to provide shelter, smoke sectors, etc.

Love and belonging needs - affiliation and affection, giving and receiving of love, ex. giving flowers can symbolize love

Esteem needs - recognition, status and prestige + self-respect ex. expensive cars

Self-actualization needs - highest need state - max. fulfillment, education pursuits, high-intensity leisure activity

Question 8

Advertising Affects Happiness and General Well-Being: Con

Answer 8

Advertising Promotes Materialism

wants and aspirations may be distorted bc of advertising

tendency for conformity and status seeking

advertising portrays brands as symbols of status, success and happiness - wants that are artificial and self-centred

Question 9

Advertising Affects Happiness and General Well-Being: Pro

Answer 9

Advertising Only Reflects Society’s Priorities

consumption culture existed in America long before advertising

Question 10

Advertising: Demeaning and Deceitful or Liberating and Artful?
Con: Advertising Perpetuates Stereotypes

Answer 10

portraying people in ads that look like the people of their target audience - perpetuating stereotypes

older people (shown as sick), minorities (athletes) and women (objects of desire)

Question 11

Advertising: Demeaning and Deceitful or Liberating and Artful? Pro: Advertisers Are Showing Much More Sensitivity

Answer 11

advertisers are realizing the diversity needed that ads have done harm to in the past
on its way to become the past

change stereotypes - older people being active, disabilities, LGBTQ consumers, boys in makeup commercials, gender stereotypes, redefining beauty

Question 12

Advertising: Demeaning and Deceitful or Liberating and Artful? Con: Advertising Is Often Offensive

Answer 12

poor taste

being rude, crude, lewd as a trend in ads
taste is personal - one person might find is offensive when someone else finds it funny

Question 13

Pro: Advertising Is a Source Advertising: Demeaning and Deceitful or Liberating and Artful? of Fulfillment and Liberation

Answer 13

most people appreciate modern conveniences

Modern advertising has helped bring about a “democratization” of goods - consumption of many goods were restricted by social class

there is a liberating quality to advertising and consumption that should be appreciate and encouraged

Question 14

Advertising: Demeaning and Deceitful or Liberating and Artful? Con: Advertisers Deceive via Subliminal Stimulation

Answer 14

subliminal communication - not true

unconscious ad processing - short lived

Question 15

Advertising: Demeaning and Deceitful or Liberating and Artful? Pro: Advertising Is Democratic Art

Answer 15

art just as much as business

“Advertising is anti-elitist, pro-democratic, widely accessible art.”

Question 16

Advertising Has a Powerful Effect on the Mass Media: Pros

Answer 16

Pro: Advertising Fosters a Diverse and Affordable Mass Media

advertising is often the mechanism for purportedly unbiased media

media is financially supported by ads
tv and radio, social media would not be free without ads

ads provide exposures to issues

Question 17

Advertising Has a Powerful Effect on the Mass Media: Cons

Answer 17

can shape content of info contained in the media, sometimes in an unethical way
ex. influencing a story put out in a paper to gain goodwill

mass market programs where advertisers buy airtime on lower tv quality because cultural and educational programs draw smaller audiences are dropped in favour of mass-market programs

tv programs that deal with important issues might not be able to get advertisers bc of association of controversy

Question 18

Ethics

Answer 18

Moral standards and principles against which behaviour is judge

Question 19

deception

Answer 19

making false or misleading statements in an advertisement

Question 20

puffery

Answer 20

the use of absolute superlatives like “Number One” and “Best in the World” in advertisements

Question 21

Primary demand

Answer 21

The demand for an entire product category

Question 22

Behavioural targeting =

Answer 22

The process of database development made possible by online tracking markers that advertisers place on a Web surfer’s hard drive to track that person’s online surfing and shopping behaviour

Question 23

Geofencing

Answer 23

The ability to track consumers’ locations within a certain geographic area via their smartphones and offer them special deals in the area

Question 24

spam

Answer 24

Unsolicited bulk email sent to a large number (often millions) of personal and commercial email addresses

Question 25

phishing

Answer 25

form of email spam with which spammers try to entice Web users to enter personal information on fake websites that are forged to look like authentic sites such as a bank, the IRS, or other organizations that will get the email users’ attention

Question 26

Click fraud

Answer 26

occurs when a company’s ads are clicked not by actual humans but by bots designed to mimic what Internet users do, causing the advertiser to overpay.

Question 27

Click fraud

Answer 27

occurs when a company’s ads are clicked not by actual humans but by bots designed to mimic what Internet users do, causing the advertiser to overpay

Question 28

premiums

Answer 28

items that feature the logo of a sponsor and that are offered free, or at a reduced price, with the purchase of another item

Question 29

Appropriation

Answer 29

the use of pictures or images owned by someone else without permission

Question 30

defamation

Answer 30

when a communication occurs that damages the reputation of an individual because the information was untrue

Question 31

Slander

Answer 31

oral defamation that in the context of promotion would occur during television or radio broadcast of an event involving a company and its employees

Question 32

Libel

Answer 32

defamation that occurs in print and would relate to magazine, newspaper, direct mail, or Internet reports