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11)
Dan’s Drugstore sells consumers medicine for twenty dollars that only costs two
dollars to make. The store is guilty of
________.
A)
deceptive promotion
B)
deceptive packaging
C)
false advertising
D)
excessive markups
E)
redlining
12)
Albatross Enterprises was accused of deceptive pricing. Which of the following
explains what might have happened?
A)
Albatross refused to advertise sale prices in the local paper.
B)
Albatross lured customers to the store for a bargain that is out of stock.
C)
Albatross advertised a large price reduction from a phony high retail list
price.
D)
Albatross misrepresented a product’s features in an ad.
E)
Albatross used misleading labeling.
13)
Hart’s Department Store was accused of deceptive promotion. Which of the
following best explains what might have happened?
A)
Hart’s refused to advertise sale prices in the local paper.
B)
Hart’s lured customers to the store for a bargain that is out of stock.
C)
Hart’s advertised a large price reduction from a phony high retail list price.
D)
Hart’s used misleading labeling.
E)
Hart’s exaggerated its package contents through subtle design.
14)
Marketers claim that consumers often don’t understand the reasons for high
markups. All of the following are
reasons a pharmaceutical company claims they must markup prices EXCEPT
________.
A)
to cover cost of purchasing
B)
to cover cost of promoting
C)
to cover cost of distributing existing medicines
D)
to test new medicines
E)
to gain a profit
15)
Deceptive practices fall into three groups: deceptive ________, deceptive
________, and deceptive ________.
A)
product; pricing; promotion
B)
pricing; promotion; placement
C)
pricing; promotion; packaging
D)
packaging; product; promotion
E)
product; packaging; placement
16)
Deceptive promotion differs from deceptive pricing in that deceptive promotion
overstates the product’s ________ or ________.
A)
true price; performance
B)
features; performance
C)
packaging; costs
D)
design; features
E)
availability; package contents
17)
A major step in regulating “unfair or deceptive business acts and
practices” was the enactment of the ________ in 1938.
A)
Robinson-Patman Act
B)
Wheeler-Lea Act
C)
Interstate Commerce Commissions
D)
Taft-Hartley Act
E)
Stamp Act
18)
Advertising “puffery” is a term for ________.
A)
a straightforward promotional message
B)
innocent exaggeration for effect
C)
emotional appeals to consumers
D)
subliminal appeals to consumers
E)
value-added promotions
19)
Which of the following advertising situations would LEAST likely be considered
“puffery”?
A)
Mr. Clean coming to a housewife’s rescue
B)
instantly toned thighs and legs as a result of using the Thigh Master for only
15 minutes
C)
children immediately growing into attractive adults as a result of drinking
milk
D)
a retired couple drinking a vitamin and protein shake and then going bicycling
E)
a sleepy mom who wakes up to a gray day, drinks a cup of coffee, and then looks
out her window to see golden sunshine, beautiful flowers blooming, songbirds
singing, and a rainbow on the horizon
20)
When critics claim that insurance, real estate, and used cars are sold, not
bought, they are making accusations of the use of ________.
A)
deceptive promotions
B)
excessive markups
C)
high-pressure selling
D)
shoddy products
E)
excessive materialism
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