Quiz on Financial Markets

Arrington argues that subliminal advertising is a threat to consumers.
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False
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Puffery means that advertisers do not try to exaggerate the qualities of the products that are offered for sale.
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John Kenneth Galbraith argues that advertising is an attempt to create desires, not to make available to the consumer what he/she desires and demands. The producers make both the product and the desire for it.
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By associating a product and our often hidden needs and desires advertisers can push consumers into buying the product for which they have little or no direct need or desire. This strategy is based on the techniques of motivational research.
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Freud’s theory of the interpretation of dreams has influenced the business of advertising.
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The more a product is advertised, the better buy it is for the consumer. This idea of indirect information, developed by Philip Nelson, suggests that the consumer can’t go wrong, if he buys the product advertised most, even if his reason for doing so is silly, for example, he believes an endorsement of the product by the celebrity.
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Arrington argues that the case of the kleptomaniac shows that people may have a non-autonomous desire. A non-autonomous desire is a desire which a person does not acknowledge to be his own. This leads Arrington to the theory that the advertising firms make consumers vulnerable to manipulation.Select one:
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In his discussion of information disclosure in sales Holley recommends the so-called mutual benefit rule when salespeople
offer their products to ordinary consumers.
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When experts do business with one another Holley recommends the so-called fairness rule.
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Holley’s example of a consumer who wants to buy a recliner is an illustration of how to apply the fairness rule.
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False
Holley argues that if an expert who offers a product to another expert realizes that the buyer mistakes the product for
another more expensive product, the seller should inform the buyer about this.
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False

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In his discussion on how to market products to vulnerable consumers Brenkert develops a utilitarian theory that makes it moral to market to the vulnerable in a way which trades upon their vulnerabilities.
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Among vulnerable consumers Brenkert lists new mothers in developing countries.
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Brenkert claims that marketers and consumers or clients are equal parties in the marketplace.
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Subliminal advertising means that we hardly recognize the product when it is advertised.
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In Brenkert’s theory of marketing it follows that it is immoral if market participants are harmed under any circumstances.
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Elliott explains in his discussion on the pharmaceutical industry that drug representatives only occasionally offer gifts or donations to a doctor’s research when they market their products.
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Elliott argues that the pharmaceutical industry respects the doctor’s fiduciary duty towards his patient.
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