wells03_webreview - Chapter 3 Advertising and Society WEB...

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84 Chapter 3 Advertising and Society WEB REVIEW QUESTIONS 1. Why are social critics concerned about advertising and demand creation? Demand creation, which means an external message drives people to feel this need or want, is an economic force that drives progress and the search for better products. Advertising plays an important role in creating and sustaining that force. Demand creation becomes a question of ethics when social critics charge that the demand is artificial and the products really aren’t needed but that people’s wants are being manipulated unnecessarily. 2. What is cultural imperialism and how does it relate to advertising? Cultural imperialism (or marketing imperialism ) is used to describe what happens when Western culture is imposed on others, particularly cultures such as Middle Eastern, Asian, and African. Some Asian and Mid-Eastern countries are critical of what they see as America’s materialism and disrespectful behavior toward women and elders. They worry that international advertising, as well as international media, will encourage their young people to adopt these viewpoints. Cultural differences are very real. Insensitivity to local customs can make an ad completely ineffective. Customs can be even stronger than laws. 3. How does the First Amendment protect commercial speech? Explain the limits of this protection. The First Amendment states that Congress shall make no law “. . . abridging the freedom of speech, or of the press; . . .” How have courts applied the First Amendment to advertising? First Amendment protection extends to commercial speech, which is speech that promotes commercial activity. However, that protection is not absolute; it is often restricted and the Supreme Court generally applies a different standard to commercial speech. The Supreme Court permits some restrictions on commercial speech. For example, the court has held that false or misleading commercial speech can be banned. Even truthful commercial speech can be restricted if the government can prove the public
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Chapter 3: Advertising and Society 85 good demands such restrictions. The courts have also ruled that such acts as the federal ban on junk faxes is valid and that businesses’ right to commercial speech does not include printing their advertisements on other people’s fax machines. Essentially, the Supreme Court has ruled that only truthful commercial speech is protected, not misleading or deceptive statements. 4. Explain the responsibility of the FTC in regulating advertising. The Federal Trade Commission (FTC) is the primary agency governing the
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This note was uploaded on 11/19/2011 for the course ECON 101 taught by Professor Smith during the Spring '11 term at AIB College of Business.

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wells03_webreview - Chapter 3 Advertising and Society WEB...

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