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A STUDY ON ETHICS IN ADVERTISING A PROJECT REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF BACHELOR OF MANAGEMENT STUDIES SUBMITTED TO DON BOSCO COLLEGE, KURLA SUBMITTED BY NIGEL D’SOUZA [University Roll No. ] PROJECT GUIDE PROF. PUNIT D’SOUZA SUBMITTED TO

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Page 1: services offered by HDFC bank

A STUDY ON

ETHICS IN ADVERTISING

A PROJECT REPORT

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF

BACHELOR OF MANAGEMENT STUDIES

SUBMITTED TO

DON BOSCO COLLEGE, KURLA

SUBMITTED BY

NIGEL D’SOUZA

[University Roll No. ]

PROJECT GUIDE

PROF. PUNIT D’SOUZA

SUBMITTED TO

UNIVERSITY OF MUMBAI

ACADEMIC YEAR 2014-15

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A STUDY ON

ETHICS IN ADVERTISING

A PROJECT REPORT

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF

BACHELOR OF MANAGEMENT STUDIES

SUBMITTED TO

DON BOSCO COLLEGE, KURLA

SUBMITTED BY

NIGEL D’SOUZA

[University Roll No. ]

PROJECT GUIDE

PROF. PUNIT D’SOUZA

SUBMITTED TO

UNIVERSITY OF MUMBAI

ACADEMIC YEAR 2014-15

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CERTIFICATE

I hereby certify that the work which is being presented in the BMS Project Report entitled “Ethics

in Advertising”, in partial fulfillment of the requirements for the award of the Bachelor of

Management Studies and submitted to University of Mumbai is an authentic record of my own

work carried out in the academic year 2014-15 under the supervision of Prof. Punit D’Souza,

Department of Management Studies.

The matter presented in this Project Report has not been submitted by me for the award of any

other degree elsewhere.

Signature of Student

Nigel D’Souza ( )

This is to certify that the above statement made by the student is correct to the best of my

knowledge.

Signature of Guide Signature of External Guide

Name Name

Date Date

Signature of HOD Signature of Principal

Name Name

Date Date

SEAL OF COLLEGE

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ACKNOWLEDGEMENT

I would like to place on record my deep sense of gratitude to Prof. Mamatha D’Souza, HOD-Dept.

of Management Studies, Don Bosco College, Kurla, India, for her generous guidance, help and

useful suggestions.

I express my sincere gratitude to Guide Prof. Punit D’Souza, Dept. of Management Studies, Don

Bosco College, Kurla, India, for her stimulating guidance, continuous encouragement and

supervision throughout the course of the present work.

I am sincerely grateful to my teachers, my family and friends who have been very supportive with their

encouragement and valuable advice, due to which this Project has seen fruition.

Signature of Student

Nigel D’souza ( )

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ABSTRACT

This project is entitled “Ethics in Advertising” and it aims at educating the consumer on

importance of ethical advertising, and at the same time creating an awareness of the harmful

effects of unethical advertising.

In the Introductory chapter the researcher highlights the high levels of consumerism prevalent in

our society today. These high levels of consumerism have been sparked off by the Advertisement

and Publicity Media. Through advertisements, Buyers are enticed to buy products which may not

be needed. Unethical advertisements woo gullible customers. On the one hand, advertising makes

the buyer aware of the products available in the market and on the other, it can turn ugly due to its

unethicalness. This chapter goes on to explains in detail the Meaning of Advertising, Importance

of Ethics in Advertising, Guidelines for ethical advertising, Types of Unethical Advertising and

Ethical Advertising vis-à-vis Unethical Advertising. The role of the Advertising Standards

Council of India and the code of ethics laid down by the ASCI are explained in detail.

The Researcher has done Literature review of three articles dealing with unethical issues in

advertising, how advertisements exploit women & Subliminal advertising. These articles are

explained in an interesting manner through the use of examples.

Four interesting case studies of reputed companies highlight issues such as use of unethical

advertising slogan, brand wars and use of comparative advertising.

A Survey was conducted on the basis of a Questionnaire, to find out various opinions on the

ethicalness of advertisements. Based on this survey, analysis and conclusions were drawn.

The wide research via the internet and the survey has made the Researcher wiser and he hopes that

this article will be a source of wisdom and knowledge to the consumers on the unethicalness

followed by Advertisers. Buyer Beware is the watchword !!!!

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TABLE OF CONTENTS

Chapte

r No.

Title Page No.

CERTIFICATE i

ACKNOWLEDGEMENT ii

ABSTRACT iii

1.0

1.1

1.2

1.3

1.4

1.5

1.6

1.7

INTRODUCTION

ASCI and its role

Unethical Advertising and its types

Code of Ethics in Advertising

Precautions against the indiscriminate use of Advertising

Ethical Advertising V/s. Unethical Advertising

Guidelines for Ethical Advertising

Importance of Ethics in Advertising

1

2

3

5

8

9

11

12

2.0

2.1

2.2

2.3

LITERATURE REVIEW

“Advertising Ethics : A Review”

“How Advertisements exploit women”

“Subliminal Advertising – An Indian Perspective”

14

18

20

3.0

3.1

3.2

3.3

3.4

3.5

3.6

RESEARCH METHODOLOGY

Objectives of the Study

Limitations of the Study

Sample Location

Sample Size

Data Collection Method

Research Instrument

23

23

23

23

23

23

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4.0

4.1

4.2

4.3

4.4

CASE STUDIES

Unethical Advertising Slogan : Reebok Shoes

Brand War : Pepsodent V/s. Colgate

The Battle : Rin V/s. Tide

Ariel V/s. Surf Excel

24

25

26

27

5.0 DATA INTERPRETATION & ANALYSIS 28

6.0 OBSERVATIONS & CONCLUSIONS 40

7.0 BIBLIOGRAPHY 41

8.0 APPENDIX 42

9.0 UNETHICAL ADVERTISEMENT PICTURES 45

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CHAPTER 1

INTRODUCTION

We are living in an age of Consumerism. Consumerism is a social and economic order and

ideology that encourages the acquisition of goods and services in ever-greater amounts. Man’s

wants are unlimited. He is unhappy with what he has and wants to acquire more and more. He

wants to compete with his fellow human beings, to stay ahead in the race for acquisition of

material goods.

It is here that the Seller takes advantage of the Buyer’s weakness and entices him into buying

expensive products. Advertising steps in here and plays a very important role in promoting a

product. Advertising is done to promote goods, services, ideas and / or events. Advertising

creates an awareness by informing consumers of the products and services available in the market.

Advertising arouses an interest in the consumer about the advertised products or services. This

interest creates demand in the market. The growing demand soon results into higher sales.

The seller is interested in boosting sales and hence will go to any length to sell his products. He

targets children and youth who are vulnerable and easily susceptible. The current trend shows that

advertisements are exaggerated and a lot of puffing is used to promote a product. As a result,

youth and children are mislead and misguided into buying the product. Advertisers are resorting

to unethical advertising such as Deceptive Advertising, Surrogate Advertising, Puffery, Subliminal

Advertising, etc. to woo the gullible customers.

Hence, we see that though Advertising plays a key role in promoting a product and boosting sales,

it can turn ugly due to its unethicalness. It is important that the Advertiser resorts to ethical

advertising so as to win the consumer’s confidence and create in him a brand loyalty. Unethical

advertising is harmful and will create a feeling of mistrust and repulsion in the consumer towards a

product.

BUYER BEWARE !!!!!! Ethical Advertising is the need of the hour !!

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Meaning of Ethics

According to the Oxford Dictionary,“Ethics” refers to the moral principles that govern a person’s

behavior or the conducting of an activity. It is the branch of knowledge concerned with moral

principles.

Advertising means a mode of communication between a seller and a buyer.

Hence “Ethics in Advertising” means a set of well defined principles which govern the ways of

communication taking place between the seller and the buyer.

An ethical advertisement is one which doesn’t lie, doesn’t make false claims and is within decency

limits. Ethical advertising is legal, honest and truthful. Ethical advertising is reliable and

trustworthy. It is believed that Good advertising is Ethical advertising.

In short, Advertising ethics refers to what is morally right and wrong, good and bad in Advertising.

1.1 ASCI & its role

Advertising Standards Council of India

ASCI is a voluntary self-regulation council, registered as a not-for-profit company under the

section 25 of the Indian Companies Act. The sponsors of the ASCI, who are its principal

members, are firms of considerable repute within industry in India, nd comprise Advertisers,

Media, Advertising Agencies and other Professional/Ancillary services connected with

advertising practice. The ASCI is not a Government body, nor does it formulate rules for the

public or the relevant industries.

1.2 Unethical Advertising and its types

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Advertising which fails to conform to an accepted code of behavior is Unethical Advertising

There are various types of unethical advertising techniques resorted to by present day Advertisers. A few are explained below :-

1. Misleading advertisements :

Misleading advertisements / false advertisements refers to use of false statements in

advertising the product and thereby misleading the prospective customers.

Example: Nivea “Bio-slim complex” had claimed that “regular use significantly

reduces body size” which was a false claim. Boost claims to provide "three times more

stamina than sadharan chocolate drink”. Complan Memory claims to contain "memory

chargers" to ensure that your kid is a better ratta-baaz than the next. Horlicks will make

your laadla "taller, stronger, sharper".

2. Surrogate advertising :

Surrogate advertising is a form of advertising which is used to promote banned

products like cigarettes and alcohol, in the disguise of another product. The banned

product(cigarettes or alcohol) may not be projected directly to customers but rather

presented under another product under the same brand name, so that whenever there

is mention of that brand, people start associating it with its main product. Example:

In India , there is large number of companies doing surrogate advertising such

Bagpiper club soda, McDowell’s soda, Kingfisher mineral water, etc.

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3. Subliminal advertising :

One of the most controversial ethical issues is regarding subliminal advertisements.

Subliminal Advertising refers to the use, by advertisers, of images and sounds, to

influence consumers' responses without their being consciously aware of it.

Subliminal messages affect the subconscious mind. We're talking visual messages

that can be flashed very quickly in a film or buried within a print image and audio

messages that are masked by other sounds, played below audible levels or recorded

backwards to hide the message.

Inserting subliminal messages in an advertisement is a misleading action. It leads to

manipulating a person’s thinking without the person even realizing

it.Example:McDonald's resorts to subliminal advertising tactics to get you to want

their food. And it works.

4. Vulgarity in Advertisements :

Nowadays, there is lot of vulgarity in advertisements. Such vulgarity passes a

wrong message to the society and degrades moral and social values. Example:

Advertisements by Axe Deodorant

5. Use of children in advertisements :

Nowadays, Marketers are using children in advertisements in order to push sales.

As marketers are using children in their advertisements, it influences Indian

children to push their parents for particular products.

Some of the advertisements are very relevant to children such as ads for Horlicks,

Johnson & Johnson, etc. But apart from this, marketers use children even for

products not meant for children, like Flipkart, Super Nirma, etc.

1.3 Code of Ethics in Advertising

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To ensure the Truthfulness and Honesty of Representations and Claims made by

Advertisements and to safeguard against misleading Advertisements :

1. Advertisements must be truthful

All descriptions, claims and comparisons which relate to matters of objectively

ascertainable fact should be capable of substantiation. Advertisers and advertising

agencies are required to produce such substantiation as and when called upon to do

so by The Advertising Standards Council of India (ASCI).

2. Where advertising claims are expressly stated to be based on or supported by

independent research or assessment, the source and date of this should be indicated

in the advertisement.

3. Advertisements shall not, without permission from the person, firm or institution

under reference, contain any reference to such person, firm or institution which

confers an unjustified advantage on the product advertised or tends to bring the

person, firm or institution into ridicule or disrepute. If and when required to do so

by the ASCI, the advertiser and the advertising agency shall produce explicit

permission from the person, firm or institution to which reference is made in the

advertisement.

4. Advertisements shall neither distort facts nor mislead the consumer by means of

implications or ommissions. Advertisements shall not contain statements or visual

presentation which directly or by implication or by ommission or by ambiguity or

by exaggeration are likely to mislead the consumer about the product advertised or

the advertiser or about any other product or advertiser.

5. Advertisement should not be so framed as to abuse the trust of consumers or exploit

their lack of experience or knowledge. No advertisement shall be permitted to

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contain any claim so exaggerated as to lead to grave or widespread disappointment

in the minds of consumers.

For example :-

(a) Products shall not be described as ‘free’ where there is any direct cost to the

consumer other than the actual cost of any delivery, freight, or postage. Where such

costs are payable by the consumer, a clear statement that this is the case shall be

made in the advertisement.

(b) Where a claim is made that if one product is purchased another product will be

provided ‘free’, the advertiser is required to show, as and when called upon by the

The Advertising Standards Council of India, that the price paid by the consumer for

the product which is offered for purchase with the advertised incentive is no more

than the prevelant price of the product without the advertised incentive.

(c) Claims which use expressions such as “Upto five years gurantee” or of the

consumer being mislead either as to the extent of the availibility or as to the

applicability of the benefits offered.

(d) Special care and restraint has to be exercised in advertisements addressed to those

suffering from weakness, any real or perceived inadequacy of any physical

attributes such as height or bust development, obesity, illness, impotence, infertility,

baldness and the like, to ensure that claims or representations directly or by

implication, do not exceed what is considered prudent by generally accepted

standards of medical practice and the actual efficacy of the product.

(e) Advertisements inviting the public to invest money shall not contain statements

which may mislead the consumer in respect of the security offered, rates of return

or terms of amortization, where any of the foregoing elements are contingent upon

the continuance of our change in existing conditions, or any other assumptions, such

conditions or assumptions must be clearly indicated in the advertisement.

(f) Advertisements inviting the public to take part in lotteries or prize competitions

permitted under law or which hold out the prospect of gifts shall state clearly all

material conditions as to enable the consumer to obtain a true and fair view of their

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prospects in such activities. Further, such advertisers shall make adequate

provisions for the judging of such competitions, announcement of the results and

the fair distribution of prizes or gifts according to the advertised terms and

conditions within a reasonable period of time. With regard to the announcement of

results, it is clarified that the advertiser’s responsibility under this section of the

Code is discharged adequately if the advertiser publicices the main results in the

media used to announce the competition as far as practicable, and advises the

individual winners by post.

6. Obvious untruths or exaggerations intended to amuse or to catch the eye of the

consumer are permissible provided that they are clearly to be seen as humorous or

hyperbolic and not likely to be understood as making literal or misleading claims

for the advertised product.

7. In mass manufacturing and distribution of goods and services it is possible that

there may be an occasional, unintentional lapse in the fulfillment of an advertised

promise or claim. Such occasional, unintentional lapses may not invalidate the

advertisement in terms of this Code.

In judging such issues, due regard shall be given to the following :

(a) Whether the claim or promise is capable of fullfilment by a typical specimen of the

product advertised.

(b) Whether the proportion of product failures is within generally acceptable limits.

(c) Whether the advertise has taken prompt action to make good the deficiency to the

consumer.

The Code applies to advertisers, advertising agencies and media.

1.4 Precautions against the indiscriminate use of advertising

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To safeguard against the indiscriminate use of Advertising in situations or of the Promotion

of Product which are regarded as Hazardous or Harmful to society or to individuals,

particularly minors, to a degree or of a type which is unacceptable to society at large.

1. No advertisement shall be permitted which :

(a) Tends to incite people to crime or to promote disorder and violence or intolerance.

(b) Derides any race, caste, colour, creed or nationality.

(c) Presents criminality as desirable or directly or indirectly encouragespeople –

particularly minors – to emulate it or conveys the modus operandi of any crime.

(d) Adversely affects friendly relations with a foreign State.

2. Advertisements addressed to minors shall not contain anything, whether in

illustration or otherwise, which might result in their physical, mental or moral harm

or which exploits theirvulnerability.

3. Advertisements shall not without, without justifiablereason, show or refer to

dangerous practices or manifest a disregard for safety or encourage negligence.

4. Advertisements should not contain nothing which is in breach of the law nor omit

anything which the law requires.

5. Advertisements shall not propogate products, the use of whch is banned under the

law.

6. Advertisements for products whose advertising is prohibited or restricted by law or

by this code must not circumvent such restrictions by purporting to be

advertisements for other products the advertising of which is not prohibited or

restricted by the law or by this code. In judging whether or no any particular

advertisement is an indirect advertisement for product whose advertising is

restricted or prohibited, due attention shall be paid to the following:

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7. Visual content of the advertisement must depict only the product being advertised

and not the prohibited or restricted product in any form or manner :

(a) The advertisement must not make any direct or indirect reference to the

prohibited or restricted products.

(b) The advertisement must not create any nuances or phases promoting

prohibited products.

(c) The advertisement must not use particular colours and layout or

presentations associated with prohibited or restricted products.

(d) The advertisement must not use situations typical for promotion of

prohibited or restricted products when advertising the other products.

1.5 Ethical Advertising V/s. Unethical Advertising

Advertising plays a major role in promoting sales of a product and consequent increase in

sales turnover. However advertising could be harmful or gainful, depending on various

factors. So what differentiates Ethical Advertising from Unethical Advertising ? The

following are key distinctions.

1. Honesty :

Honesty has a key role to play in Advertising. Advertising which is truthful and

honest about its product is ethical advertising. It never distorts the product’s

capabilities, or hides its defects. Ethical advertising is also clear about its

intentions, refraining from concealed messages or hidden agendas. Generally, big

companies never lie as they have to prove their points to various ad regulating

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bodies. Truth is always said but not completely. On the other hand, Unethical

advertising often distorts or misrepresents its product and seeks secretive means of

influencing its target audience.

2. Distinction :

International Charter states that ethical advertising seeks to distinguish its product

from those of its competitors. Its logos are unique and easily identifiable, its

products can be easily discerned. On the other hand Unethical advertising seeks to

demolish the distinction between it and other products – capitalizing on the

resulting confusion by selling products to customers who can’t distinguish between

it and an alternate product.

3. Social Consciousness

Ethical advertising refrains from appealing to “base” human emotions such as fear,

greed or lust, according to Carroll College. It remains positive and optimistic and

does not exploit race, gender, etc. On the other hand, Unethical advertising preys

upon the baser emotions of its target audience. For example, it will raise fears for

the audience’s health if they do not purchase the product. Unethical advertising will

also make use of socially reprehensible imagery : depicting minorities as

incompetent, for example - Women are portrayed as sexual objects.

4. Environmental Consciousness

Ethical advertising operates with due respect to Nature and refrains from causing

undue harm to environment. Also, the means with which the advertising is created

should ahere to environmental standards, for example, using recyclable

components; or non-polluting creation methods and thus refrain from excessive

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waste. On the other hand, Unethical advertisements are created without concern for

the Environment and encourages environmentally destructive behavior.

1.6 Guidelines for Ethical Advertising

1. All advertisements should be legal, decent, honest and truthful. It should not

mislead the prospective customers.

2. No advertisement should impair public confidence in advertising.

3. Every advertisement should be prepared with a due sense of social responsibility

and should conform to the principles of fair competition, as generally accepted.

4. Advertisements should not contain statements or visual presentations which offend

prevailing standards of decency. There should be no vulgarity in advertisements.

5. Advertisements should not harm anyone’s religion, culture, caste, creed etc.

6. Advertisements should be not based on any superstition.

7. Advertisements should not promote any unlawful behavior.

1.7 Importance of Ethics in Advertising

Ethics is the most essential feature of the Advertising Agency. Advertising has manifold

benefits, however there are some points which don’t match the ethical norms of advertising.

It is important for the Advertiser to discern what is right and wrong. Advertisers should be

aware of ethical norms to be adopted which will win the confidence of the consumers. In

order to attract a wide range of consumers, advertisements should be honest and truthful.

False and puffed advertisements will make them repulsive.

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The current trend shows that advertisements are exaggerated and a lot of puffing is used to

promote a product. Hence consumers are misled and misguided. If the Advertiser uses

wrong techniques to sell a product, he will have to face legal implications.

The main reason that Advertisers do not follow ethical norms is that they are more

interested in increasing sales of their product by targeting a wide range of consumers. This

is done by presenting a well-decorated, puffed and colorful advertisement. They claim that

their product is much better, beneficial, cheaper and having unique qualities in comparison

with their competitor’s products. They are more interested in making the fast buck.

It is important to appeal to the largest audience possible and be politically correct. One

unethical choice could cost advertisers, not only money but their reputation and clientele.

There have been countless cases in which advertisers and the companies in which they

represent have been deemed unethical for their advertisements. It is crucial for advertisers

to take this into account during the creative process. It is also important to ensure that the

general public is not affected negatively.

The greatest benefit of ethical advertising is to build consumer trust and confidence. This

creates a strong relationship between the consumer and the brand, thus leading to brand

loyalty.

Ethics are important to consumers in the following ways :

1. Price : Advertising provides a vehicle for product innovation. Ethics can determine

the price consumers are willing to pay for a product.

2. Boycott of an unethical product : If consumers feel that a product or service goes

against their moral values, or is harmful to society, they will boycott that product

and influence their friends against purchasing that product.

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3. Online information : Advertising provides consumers with commercial information

on a product, service or organization in making purchase decisions. People share if

they like or dislike ads, especially with the introduction of the Internet and social

media.

Recently, the Vatican issued an article which says that ads should follow three moral

principles - Truthfulness, Social Responsibility and Upholding Human Dignity.

Hence in order to gain consumer trust, advertisers must create ethical and legal

advertisements. Advertisers must be truthful and non-misleading. It is very important to

understand the target audience and refrain from communicating offensive material.

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CHAPTER 2

LITERATURE REVIEW

This chapter pertains to review of literature pertaining to unethical issues in advertising.

2.1 Advertising Ethics : A Review

- By Mohammad Noorizzuddin Nooh, Sr. Lecturer, Islamic Science University of Malaysia

In this article, the author has given an underlying perspective of the present scenario of the

advertising industry. The author has covered various core issues pertaining to ethics in advertising,

ranging from unethical advertising, deceptive advertising, advertisements targeted at children,

subliminal advertising, Sex and gender exploitation, etc.

The author has introduced Advertising as the most fundamental part of a business organization.

Organizations all over the globe spend billions of dollars on advertising in order to market their

products. Since businesses go beyond borders, advertising plays a magnanimous role, which has

consequently led to a soaring expenditure on marketing. To stay ahead in the race, Advertisers

need to be updated with the latest media such as advertising through web sites and cell phones. An

interesting statistics shows that the global advertising market had a value of 90.4 billion dollars in

2011, which was an increase of 28% since 2006 (Datamonitor Plc, Oct 2007).

In olden days, man was self-sufficient, and hence did not depend on others to meet his needs. As

times went by, man’s self-sufficient production showed signs of surplus and this surplus

sometimes could not fulfill other necessities. Hence they had to resort to trading to fulfill their

needs and cash in on their production surplus. They realized that they had to compete with other

individuals with same products, and thus Advertising came into the picture.

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It was realised that changes and improvements in advertising do not come without a price. Some

scholars felt that ethical issues concerning advertising could prop up (Drumwright, 1993;

Indrayana, 2004; Tinarbuko, 2002; Kunkel, Wilcox, Cantor, Palmer, Linn & Dowrick, 2004;

Aitchison, 2002; Tanudjaja, 2002). These issues include women exploitation, advertising to

children, women portral in advertisements, indecent advertising, subliminal advertising, etc. which

would consequently lead to a detriment in the moral values in society (Shabbir & Thwaites, 2007;

Murpy, 1998).

The author has explained the various unethical issues in advertising in detail :

Deceptive Advertising

Deception is defined as a false or misleading claim in Advertising (Hyman M., 1990). There are

three important components of salient deception such as belief, falsity and relevance. An

advertisement is considered deceptive if it the persons exposed to it would hold false beliefs as a

result of exposure to it (Attas, 1999).

Deception in advertising such as price misleading advertisements will create negativity in the

consumers reaction towards the products.

Russo, Metcalf and Stephens suggested three alternative views such as fraud, falsity and

misleadingness in order to identify deceptive advertising. Misleading or deceptive advertisements

is mostly prominent during festive seasons when retailers offer various bargains and discounts to

entice consumers into buying their products. An interesting example is quoted how the airline

companies compete with each other to offer “cheapest” fares to travellers during the holiday

seasons. In one instance in New Zealand, Qantas was fined NZD 380,000 because customers had

to pay much more than the advertised price since there were many hidden costs not included by the

Airlines in the advertisement (Reed Business Information, 2006). According to Kessler, published

in 1992, a study was done on 109 prescription drugs advertisement published in major medical

journals and the study showed that most of these advertisements contained misleading information.

A study done by Frazer emphasizes that advertising ethics should be instilled in the students. A

reasearch done by Drumwright and Murphy (2004) found that advertising practitioners rarely talk

about ethics, hence they are suffering from “Moral Myopia” This could be a very dangerous

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situation since advertising practitioners are the ones who shape and execute the advertising

scenario in society.

Advertising to Children :

Advertisements which depict nutrition and obesity on television and print media have adversely

affected food consumption habits in children (Schmitt, Wagner & Kirch, 2007) Example : Fast

food advertising in Malaysia - The teenagers and youth have developed unhealthy eating habits,

this is mainly because of advertising sponsorship of television programmes for children where

childred became easy soft targets of the Advertisers. Since children watch comparatively more

television than adults, they are exposed to more advertising intended for adults (O’Sullivan, 2005).

A study by Mittal in 1994 on public assessment of TV advertising showed that 90 per cent of

respondents believed that TV advertisements play on the emotions of children and take undue

advantage of children thus leading to children making unreasonable purchase demands on their

parents.

Another issue of concern is the advertising on kid-based websites for parents, since children tend

to make unreasonable demands of their parents.

Children are further exposed to violent actions by commercials sponsoring upcoming programmes

(A study by Violent Commercials in Television Programs for Childrend in 2003).

Subliminal Advertising :

One of the most important areas that interest researchers the most is the area of Subliminal

Advertising. Some scholars argue that subliminal advertising can come in the forms of product

placement in which the products are seen as being a part of the movie or a TV program without

being referred to.

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Sex and Gender Exploitation

This is another area which is of great interest to researchers and scholars. The trend is that women

are being projected as things or sexual objects for promoting sales. However a study by Blair,

Stephenson, Hill & Green in 2006 argues that advertisements can be successful in promoting sales

without portraying women as sexual objects. A study by Henthorne & LaTour in 1995 shows that

the use of erotic content in advertisements has become increasingly frequent. According to a

study by Kaur in 2007, advertisers failed to portray women as smart and independent as men.

There are advertising codes that goven the issue of tobacco advertising, however 17 percent of the

models used in these ads are under the age of 25 because irrespective of the viewers’ age, the

younger models are considered more attracting and appealing as compared to older models.

The author concludes the article by presenting a fresh look on the issue of advertising ethics

through the theological interpretations. The author believes that the area of theological approaches

to advertising ethics is a new area to venture into and in need of a thorough study.

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2.2 “How advertisements exploit women”

- By Shoma Chatterjee

This article was published by Shoma Chatterjee in December 2005 and it quotes a paper by Deepa

Dhanraj, a Bangalore Based activist and documentary film maker, thus,

“In Indian advertising, women are used as models in sexist ads for diverse products from

tyre to ceiling fans. Women, by contrast, are cast either in auxiliary roles or as feather-headed

clients who have to be convinced at length to purchase X product, in pseudo-scientific

terminology. These images bear no relationship whatsoever to the reality of Indian women or their

on-going struggles to achieve economic and political autonomy.”

The most guilty culprits are the toiletries and the cosmetic ads, as if to sell the idea that the be-all

and end-all of a woman’s existence is the attentive male. It is uncomfortable to note that even

when using the successful woman image, the prized catch remains a man.

A feminist group in Delhi formed by Ritu Menon and Kamla Bhasin called “The Committee of

Portrayal of Women in the Media” rightly claims that it is not only the physical exposure of

women that is derogatory but also the reinforcements of other stereotypes that are more damaging

to the image and the dignity of womanhood. There are television advertisements that falsely boast

about good mothers who feed their children with health drinks and instant noodles and claim that

wives are ideal who take care of their husband’s shirts and cholestrol, advertisements portray

mothers who wash their babies with soap to ensure soft bottoms, some advertisements show little

girls who choose a certain soap to look as beautiful as their mother.

These are damaging, insulting and humiliating to the woman-image The reason is that these ads

are reinforcing a lifestyle, an attitude of sexist bias in housework which confines the woman to

housework and the man to being her master.

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On the exploitation of women in advertisemens, the author, Shoma Chatterji has this to say, “by

presenting only the more extreme stereotypes, ads tend to underscore and reinforce the already

negative feelings many women have about themselves, thanks to the male-centric society we live

and work in. Exaggerations only add to the guilt, confusion and shame these women might be

trying to overcome. By institutionalising one-dimensional images of women through the media,

ads make it harder for women to break out of sexist modes that cage them. In fact, women models

in advertisements are unwittingly lending themselves to become both the seller and the sold. By

pitching in for particular products that mainly exploit their being pretty and attractive, passive and

docile, women may be selling their own goods and services that, in turn, perpetuate an image and a

lifestyle oppressive to other women. Stretching the same logic a bit further, one might also deduce

that the woman-model could actually be selling a culture which, in its glossy perfection, is an

unattainable fantasy and would lead to greater frustration to an already-disadvantaged segment.

By pitting women against women, the advertising world has succeeded in making a woman more

an enemy of her own creed than she was before advertising began to use her the way it has.”

Shoma Chatterji has also presented findings of a study of 21 womens’s magazines which tried to

find out how women linked their weight to the gendered messages on magazine covers. This study

was conducted by Amy R Malkin and states that

i. Popular magazines for men focus on offering entertainment and suggestions on Improving

one’s life by expanding knowledge, hobbies and activities.

ii. Women’s magazines seem to focus on improving one’s life by changing one’s appearance,

especially by losing weight.

iii. Women’s magazines constantly imply, both through visuals and text that being thin means

being happier, sexier and more lovable.

iv. The consequences of striving for these unrealistic ideals results in a large number of

women taking to aggressive means to control and reduce their weights.

2.3 “Subliminal Advertising : An Indian Perspective”

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- By Dr. S. M. Mariyam Fatima, Asst. Professor, Graphic Era Universit, Dehradun & Puneet Kumar,

Asst. Professor, Institute of Management Studies, Dehradun

Subliminal messages are hidden messages that are made to act on your subconscious mind. They

are an attempt to make you think or want something without you even realizing it. These hidden

messages can be transmitted by images flashing very fast on a screen, in themes or in slogans.

This article talks of the impact of the subliminal messages on the buying behavior of the consumer

and the use of these messages to increase sales of products.

The above article quotes a paper by Demsetz, 1974, p 67, thus,

“The charge that advertising attempts to persuade buyers is surely true”.

One of the works of advertiser is to get a consumer to recognize an ad and motivate consumers to

buy products being advertised. This can be achieved by creating distinct advertisements, or “ads

that pose a change or contrast due to their color, size, intensity, contrast, position, movement, or

isolation.” (Andrews, Akhter, Durvasula & Muehling, 1992). If a consumer easily recognizes a

product, he will be more inclined to recall past experiences with the product and buy the product

again and again (Telser, 1974, p.31). It has been proved that not only subliminal messaging exists,

but it works on consumers.

In a study conducted in London by Beatty and Hawkins study (1989), participants were given

cards that said, “COKE,” “DRINK COKE,” or nothing. Study found that those with messages

telling them to “DRINK COKE,” or just said “COKE” were thirstier than those whose cards said

nothing.

Another experiment was done in 1957 where a researcher named James Vicary flashed messages,

“Drink Coca Cola” and “Hungry? Eat Popcorn” on screen at a movie theatre. This resulted in an

increase of sales of both items. Though messages may not always work, “researchers have shown

that if conditions are right, subliminal advertising to promote a brand can be made to work.”

(Motluk, 2006, p.16)

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University College London has found research that shows that subliminal messages actually do

cause stimulation in brain. This does not show a direct correlation between subliminal advertising

and sales, but it does show that subliminal advertising does have an effect on brain activity.

There are varying views on how Subliminal advertising influences consumers. One school of

thought is that this type of advertising gives advertisers no advantage over consumers. On the

other hand, some people think that subliminal messages can have a great influence on consumers.

Subliminal advertising is used now-a-days by the marketers for a company to advertise their

products compared to their competitors.

The Research Methodology includes filling up of a questionnaire by 100 respondents regarding

various aspects of subliminal advertings and the findings are as follows :

1. The results showed that 50% of the people agree that the marketers are right in actually targeting

their products to the audience using subliminal advertising.

2. 30% think that they are doing ethical advertising by sending such subliminal messages.

3. 10% are of the view that marketers are doing unethical things by sending subliminal messages.

4. 10% have the same perception for all the advertisements.

Another study on subliminal advertising showed that –

1. Out of the 100 people surveyed, 60% felt that subliminal advertisements are highly effective in

communicating their messages.

2. 30% felt that the subliminal messages are having average effect on the minds of the consumers.

3. 10% felt that subliminal advertisements are effective.

In Conclusion, the authors show that all of the information found has showed consistent results and

direct correlations that proves that this type of subliminal advertising works. This kind of

advertising is currently used as a popular tool by Marketers in promoting sales. People are not

interested in knowing the reason for buying a product, however they are buying a product just

because a company tell them to do so. The future work which the paper suggests is to actually

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look at the various opportunities to look whether by using subliminal advertising (through video,

audio, images, visuals) is helping companies to increase the sales of their products.

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CHAPTER 3

RESEARCH METHODOLOGY

3.1 Objectives of the study:

To study the meaning and importance of Ethics in Advertising

To understand the consumer on the importance of ethical advertising.

To study the harmful effects of unethical advertising.

3.2 Limitations of study:

Due to time and other constraints, this study is limited in its scope. The sample size of the

study is small due to time constraint. The smaller size of the sample surveyed reduces its

dependability.

3.3 Sample Location

The location of the study sample was conducted only in Mumbai.

3.4 Sample size

Surveyed a sample class of 40 respondents for the Research.

The sample included students as well as working individuals

3.5 Data Collection Methods :

Primary Sources :

Primary data has been collected directly from sample respondents through a Questionnaire.

Secondary Sources :

Secondary Data has been collected from standard textbooks and various internet articles on

Ethical issues in Advertising.

3.6 Research Instrument :

Research instrument used for the primary data collection is Questionnaire

CHAPTER 4

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CASE STUDIES

4.1 UNETHICAL ADVERTISING SLOGAN - REEBOK SHOES

The popular Shoe company Reebok printed the following slogan for used by an affiliated

gym in Germany, which went viral on the web :

“CHEAT ON YOUR GIRLFRIEND, NOT ON YOUR WORKOUT!”

This advertising slogan by Reebok was considered unethical for the following reasons :

It is disrespectful of women.

It advocates betrayal, dishonesty, disloyalty, infidelity, promiscuity and cheating.

It designates a higher priority to narcissistic self-maintenance over love, commitment, and

stable relationships.

It represents an athletic equipment company giving the stamp of approval to cheating.

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4.2 BRAND WAR : PEPSODENT V/S COLGATE

August 2013 saw the beginning of a brand war in the toothpaste market. Pepsodent, the popular

brand of HUL directly attacked the market leader Colgate with a high profile comparative

advertisement. The ads directly compared Pepsodent Germicheck with Colgate Strong Teeth with

claim that Pepsodent Germicheck is 130% better in fighting germs than Colgate Strong Teeth. This

is an example of Comparative Advertising

It is interesting to note that Pepsodent Germicheck chose to attack Colgate Strong Teeth

rather than Colgate Total. Colgate Strong Teeth is the largest brand in the Colgate portfolio

but this brand is not claiming any germ killing attribute. Colgate Total is the brand which

claims the germ killing attribute. So rather than fighting the Colgate Total, Pepsodent

Germicheck decided to launch the attack on Colgate Strong Teeth.

In India, brands do engage in such direct attacks. Law does allow certain level of

comparative advertising provided it does not disparage the other brands

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4.3 The Battle of Rin V/s. Tide

In India a recent advertisement on TV openly comparing between rival detergent brands

caused an uproar. HUL’s Rin directly compared with P&G’s Tide.

The voice over “Tide se kahin behtar safedi de Rin” (Rin washes much whiter than

Tide) leaves nothing to imagination. It’s war, open and direct.

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4.3 Ariel V/s Surf Excel

Detergent giants Ariel and Surf Excel have been at loggerheads since the beginning of

brand wars. The two have never spared an opportunity to pick on each other. Both the

brands' USP is removing the toughest of stains from clothes, hence the constant war. The

TV commercials of Ariel and Surf Excel had the two derogating the other, which got so

nasty that the two are infamous for encouraging brand wars.

.

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CHAPTER 5

DATA INTERPRETATION & ANALYSIS

TABLE 5.1

Respondent’s classification according to age

Age (in years) No. of respondents Percentage

11-20 22 44

21-40 25 50

41-60 3 6

Total 50 100

No. of Respondents

11-2021-4041-60

Table 5.1 shows that 44% of the respondents are in the age group of 11-20, 50% are in

the age group of 21-40 and 6% are in the age group of 41-60

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TABLE 5.2

Respondent’s classification according to sex

Sex No. of Respondents PercentageMale 30 60

Female 20 40Total 50 100

No. of Respondents

MaleFemale

Table 5.2 shows that 60% of the respondents were male and 40% were female.

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TABLE 5.3

Respondent’s classification according to educational qualification

Qualification No. of Respondents PercentageHigh School 6 12

Graduate 28 56Post-Graduate 16 32

Total 50 100

No. of Respondents

High SchoolGraduatePost-Graduate

Table 5.3 shows that 12% of the Respondents are matriculate, 56% are graduates and 32%

are post-graduates.

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Table 5.4

Advertising shows an accurate view of reality

Advertising shows accurate view of reality No. of Respondents PercentageStrongly Agree 0 0

Agree 0 0No opinion 0 0Disagree 10 20

Strongly Disagree 40 80Total 50 100

No. of Respondents

Strongly AgreeAgreeNo opinionDisagree Strongly Disagree

Table 5.4 shows that a majority of the respondents (80%) strongly disagree that advertising shows an accurate view of reality.

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Table 5.5

Advertising helps to shape society’s views of the world and itself

Advertising shapes society's views of the world No. of Respondents PercentageStrongly Agree 0 0

Agree 5 10No opinion 10 20Disagree 26 52

Strongly Disagree 9 18Total 50 100

No. of Respondents

Strongly AgreeAgreeNo opinion DisagreeStrongly Disagree

Table 5.5 shows that a majority of the respondents disagree that Advertising shapes society’s views of the world

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Table 5.6

Advertisements are treating advertising audiences fairly.

Treating advertising audiences fairly No. of Respondents PercentageStrongly Agree 0 0

Agree 5 10No opinion 4 8Disagree 12 24

Strongly Disagree 29 58Total 50 100

No. of Respondents

Strongly AgreeAgreeNo opinion DisagreeStrongly Disagree

Table 5.6 shows that 58% of the respondents strongly disagree that advertisements are treating audiences fairly

Table 5.7

How do you view the level of ethics in general advertising ?

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Level of Ethics in General Advertising No. of Respondents PercentageVery High 0 0

High 5 10Average 11 22

Low 15 30Very Low 19 38

Total 50 100

No. of Respondents

Very HighHighAverageLowVery Low

Table 5.7 shows that not a single respondent feels that level of ethics in advertising is very high and 38% of the respondents feel that it is very low.

Table 5.8

Advertisers are creating honest, non-misleading, socially desirable advertisements.

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Advertisers are creating honest and non-misleading ads

No. of Respondents Percentage

Strongly Agree 2 4Agree 3 6

No opinion 0 0Disagree 10 20

Strongly Disagree 35 70Total 50 100

No. of Respondents

Strongly AgreeAgreeNo opinion DisagreeStrongly Disagree

Table 5.8 shows that a majority of the respondents disagree that Advertisers are creating honest, non-misleading and socially desirable ads.

Table 5.9

Advertisements represent healthy, useful and ethical products, services and / or ideas.

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Advertisements represent healthy, ethical products, services & ideas

No. of Respondents Percentage

Strongly Agree 3 6Agree 8 16

No opinion 6 12Disagree 15 30

Strongly Disagree 18 36Total 50 100

No. of Respondents

Strongly AgreeAgreeNo opinion DisagreeStrongly Disagree

Table 5.9 shows that majority of the respondents strongly disagree that advertisements represent healthy, useful and ethical products, services and / or ideas.

Table 5.10

Which of the following issues in general advertising would you consider being unethical ?

1. Advertising to children

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2. Alcoholic beverages ads3. Cigarette and tobacco ads4. Comparative advertising5. Surrogate advertising6. Disguised advertising7. Lack of truth8. Puffery (increase value or attributes)9. Subliminal advertising

All the respondents were of the opinion that all the issues above were unethical

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Table 5.11

Have you ever decided not to buy a product / service due to an advertisement that you perceived as unethical ?

Decision not to buy a product due to unethical ad

No. of Respondents Percentage

Yes 42 84No 8 16

Total 50 100

No. of Respondents

Yes No

Table 5.11 shows that majority of the respondents decided not to buy a product due to an unethical advertisement.

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Table 5.12

In the future, would you refrain from buying a product / service because you perceive its advertisements as unethical ?

Refrain from buying a product in future due to unethical advertisement

No. of Respondents Percentage

Yes 50 100No 0 0

Total 50 100

No. of Respondents

YesNo

Table 5.12 shows that all the respondents agree to refrain from buying a product due to an unethical advertisement, in future.

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Chapter 6

OBSERVATIONS & CONCLUSION

After completing the Survey I made the following observations :

Majority of the respondents believed that Advertising does not give an accurate view of reality. Advertisers tend to distort the real image and fool the consumer.

Most of the respondents felt that advertisements do not treat consumers fairly, by being dishonest.

Greatest number of respondents felt that the level of ethics in advertising is very low.

Majority of the respondents felt that advertisers are not creating honest and socially desirable advertisements.

All the respondents considered issues such as Advertising to children, comparative advertising, surrogate advertising, disguised advertising, puffery, subliminal advertising as unethical.

Most of the respondents decided not to buy a product due to an unethical advertisement

All respondents agreed that they would refrain from buying a product if they perceived its advertisement as unethical.

On analyzing the data, the following conclusions were drawn :

Advertisers should resort to ethical advertising to win the trust and loyalty of the consumers.

Honest and non-misleading advertisements will increase demand for products

It is very important to understand the target audience and refrain from communicating offensive material.

Advertisers should refrain from unethical issues such as comparative advertising and Surrogate advertising

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BIBLIOGRAPHY

Various websites and articles including the following were referred for the project :

http://joc.hcc.edu.pk/articlepdf/joc201300,%2033-44.pdf

http://shodhganga.inflibnet.ac.in/bitstream/10603/3434/6/06_chapter%202.pdf

http://www.tarj.in/images/download/AJMMR/TAJMMR%20OCTOBER%202012%20%28COMPLETE%29%20PDF/TAJMMR%20OCTOBER%202012%20%28COMPLETE%29%20PDF/10.1,%20Puneet%20Kumar.pdf

http://ethicsalarms.com/2012/03/22/unethical-advertising-slogan-of-the-month-reebok/

http://marketingpractice.blogspot.in/2013/08/brand-wars-pepsodent-vs-colgate.html

Text Book “Marketing Management) by Yogesh Funde & Poonam Kakkad

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APPENDIX

QUESTIONNAIRE

Please answer the following questions by putting an `X’ in the appropriate space :

1. Which age group do you belong to ?a) 11 – 20 (____)b) 21 – 40 (____)c) 41 – 60 (____)

2. What is your gender ?a) Male (____)b) Female (____)

3. What is your Education Qualification ?a) High School (____)b) Graduate (____)c) Post-Graduate (____)

4. “Advertising shows an accurate view of reality.”a) Strongly agree (____)b) Agree (____)c) No opinion (____)d) Disagree (____)e) Strongly Disagree (____)

5. “Advertising helps to shape the society’s views of the world and itself.”a) Strongly agree (____)b) Agree (____)c) No opinion (____)d) Disagree (____)e) Strongly Disagree (____)

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6. “Advertisements are treating advertising audiences fairly.”a) Strongly agree (____)b) Agree (____)c) No opinion (____)d) Disagree (____)e) Strongly Disagree (____)

7. How do you view the level of ethics in general advertising ?a) Very High (____)b) High (____)c) Average (____)d) Low (____)e) Very Low (____)

8. “Advertisers are creating honest, non-misleading, socially desirable advertisements.”a) Strongly agree (____)b) Agree (____)c) No opinion (____)d) Disagree (____)e) Strongly Disagree (____)

9. “Advertisements represent healthy, useful and ethical products, services, and/or ideas.”a) Strongly agree (____)b) Agree (____)c) No opinion (____)d) Disagree (____)e) Strongly Disagree (____)

10. Which of the following issues in general advertising would you consider being unethical? a) Advertising to children (____)b) Alcoholic beverage advertisements (____)c) Cigarette and tobacco advertisements (____)d) Comparative advertising (____)e) Surrogate advertising (____)

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f) Disguised advertising (____)g) Lack of truth (____)h) Puffery (increase value or attributes) (____)i) Subliminal advertising (____)

11. Have you ever decided not to buy a product / service due to an advertisement that you perceived as unethical ? a) Yes (___)b) No (___)

12. In the future, would you refrain from buying a product / service because you perceive its advertisements as unethical ? a) Yes (____)b) No (____)

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UNETHICAL ADVERTISEMENT PICTURES

The above are examples of Puffery in Advertisements

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The above are examples of Surrogate Advertising

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This is an example of Surrogate Advertising

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This is an example of Vulgarity in Advertisements

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The above are examples of using Children in Advertising