Chapter 16 Marketing Ethics and Social Responsibility

GENERAL CONTENT: Multiple-Choice Questions 1. a. b. c. d. e. The marketing concept is a philosophy of customer satisfaction and _____. mutual interest mutual gain innovation needs met none of the above (Answer: b; p. 495; Moderate) 2. You have just read the latest survey about consumers’ attitudes toward current marketing practices. It reveals that consumers in general hold _____ attitudes. mixed slightly unfavorable moderate A and B belligerent (Answer: d; p. 495; Easy) 3. Many critics charge that the American marketing system causes _____ to be higher than they would be under more “sensible” systems. distribution costs advertising costs prices markups employee morals (Answer: c; p. 496; Moderate) 4. A long-standing charge against intermediaries is that they mark up prices beyond the _____. value of their services delivery charges going market price range most Americans can afford to pay C and D (Answer: a; p. 496; Easy)

a. b. c. d. e.

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5. Critics charge that some companies mark up goods excessively. Marketers respond by explaining that most consumer abuses are _____ and that most consumers do not understand the _____ high markups. rare; business concepts of unintentional; reasons for rare; reasons for unintentional; business concepts of none of the above (Answer: b; p. 496; Easy) 6. Deceptive promotion differs from deceptive pricing in that deceptive promotion overstates the product’s _____ or _____. true price; performance features; performance packaging; costs design; features availability; performance (Answer: b; p. 497; Moderate) 7. A major step in regulating unfair and deceptive business acts and practices was the creation of the _____ in 1938. Robinson-Patman Act Wheeler-Lea Act Interstate Commerce Commissions Taft-Hartley Act Stamp Act (Answer: b; p. 497; Moderate) 8. Marketers argue that most companies avoid deceptive practices because such practices _____. deliver only short-term profits create more competition harm their business in the long run are illegal create long-term negative feelings among consumers (Answer: c; p. 498; Moderate) 9. Theodore Levitt claims that some advertising puffery is bound to occur and that it may even be desirable. People do not buy _____. pure functionality solely because of the situation presented in the ad emotionally features only B or C (Answer: a; p. 497; Challenging)

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a. b. c. d. e.

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10. What is the third typical product criticism besides lack of quality and delivers little benefit? Priced too high. Promotion is deceptive. Lacks complete safety. Lacks company backing of warranty. Bad consumer connotations. (Answer: c; p. 499; Easy) 11. Consumers Union, the nonprofit testing and information organization, has published _____ to assist the consumer in choosing products to purchase. Consumer Digest Buyers Weekly Home & Garden Consumer Reports Sports Illustrated (Answer: d; p. 499; Easy) 12. Critics have charged that some companies follow a program of causing their products to need to be replaced before they actually should need replacement. What is this called? Product failure. Short-term planning. Planned obsolescence. Nonfunctional warranties. Expressed satisfaction. (Answer: c; p. 499; Easy) 13. Marketers explain that planned obsolescence is in general not a problem for all of the following reasons except one. Which one? Consumers like change. No one is forced to buy the new product. It will eventually wear out anyway. For most technical products, customers want the latest innovations. None of the above. (Answer: c; p. 501; Moderate) 14. The _____ marketing system has been accused of poorly serving disadvantaged consumers. European Union American GATT WTO NAFTA (Answer: b; p. 502; Easy)

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p. These untrue criticisms include _____. a. d. a. A type of economic discrimination in which major chain retailers avoid placing stores in disadvantaged neighborhoods is called _____. 503. 503. d. p. 502. c. Moderate) 17. e. Critics have charged that the marketing system urges too much interest in _____. material possessions the push strategy meeting a quota new product invention entering the global market arena (Answer: a. b. d. p. Easy) 216 . e. b. e. Easy) 18. 19. e. e. A Consumers Union study found that the _____ pay more for inferior goods. c.15. b. The American marketing system has been accused of adding to several “evils” in American society at large. c. 502. supermarkets super centers discount stores large national chain stores factory outlets (Answer: d. embargo licensing redlining tariff scrambled merchandise (Answer: c. Moderate) 16. d. c. b. creating false wants creating excessive materialism promoting too few social goods creating cultural pollution all of the above (Answer: e. Easy) a. c. p. a. d. a. b. A Consumers Union study suggested that the presence of _____ in low-income neighborhoods made a big difference in keeping prices down. wealthy uneducated poor Jews Asian Americans (Answer: c. p. 502.

c. Easy) a. 217 . Environmental Deficient Pleasing Salutary Desirable (Answer: d. d. In the new millennium. stronger infatuation with material things strong need to buy reaction against waste A and B none of the above (Answer: c. 503. c. a. e. c. a. b. when phrases such as “greed is good” and “shop till you drop” seemed to characterize the times. b. are own do eat avoid (Answer: b. _____ products give high immediate satisfaction but may hurt consumers in the long run. d. Challenging) 24. Easy) 21. e. e. p. 1950s 1960s 1980s 1990s C and D (Answer: e. Critics of the American economic marketing system have charged that people are judged by what they _____. d. d. p. b. b. a. e. p. c. social scientists have noted a _____. p. 503. _____ products have low appeal but may benefit consumerism in the long run. 516. Moderate) 23. d. 503.20. A drive for wealth and possessions hit new highs in the _____. 516. e. Environmental Deficient Pleasing Salutary Desirable (Answer: c. Moderate) 22. p. c. b. a.

503. a. Marketers are most effective when they appeal to _____ rather than when they _____. Straight product extenders Albertsons Madison Avenue Fifth Avenue Michigan Avenue (Answer: c. b. b. p. _____ is hired to use mass media to create materialistic models of the good life. a. The critics do not view this interest in material things as _____. d. critics say marketing is seen as benefiting _____ more than _____. c. c. e. e. consumers stores. p. e. d. 504. appeal to market segments (Answer: c. a. Easy) 218 . Easy) a. use old ones teenagers.25. p. a. 504. exciting new inventions. industry industry. p. appeal to actual needs the mass market. 28. manufacturers managers. attempt to create new ones emotions. d. consumers. 503. 503. do not rely on television ads change their minds rely on their relatives’ advice do not rely on single sources avoid their parents in doing so (Answer: d. b. p. Moderate) People seek information when making important purchases and often _____. Moderate) 27. target older people existing wants. adults (Answer: b. Easy) 26. When Madison Avenue steps in. stores children. b. d. c. c. e. 29. b. c. e. d. a natural state of mind hurting society helping society A and C necessary (Answer: d.

c. A practice that can be used to combat the criticism that competition is reduced and firms are harmed when companies expand by acquiring competitors is to _____ instead. our wants and values are influenced not only by marketers but also by _____. Easy) 32. p. e. d. c. Moderate) 34. b. family peer groups ethnic background religion all of the above (Answer: e. such as cars causing traffic jams. d. 504. expand into new markets develop their own new products export more enter into foreign joint ventures focus solely on a single product (Answer: b. d. b. 219 . a. e. c. d. b. The overselling of private goods results in _____. b. c. c. p. waste misdirected funding social costs materialism opportunity costs (Answer: c. On a deeper level. a. e. The high failure rate of new products shows that companies are not able to _____. injuries. b.30. 505. a. 504. control demand advertise enough find manufacturers find outlets none of the above (Answer: a. Easy) 31. a. p. Challenging) a. e. p. e. product selection advertising product positioning consumer attitudes the morale level (Answer: b. 506. 504. p. Easy) 33. A major way to reverse the cultural pollution caused by marketing is to adjust _____. d. and deaths. air pollution.

507. The right to be well informed about important product aspects. b. 39. d. a. e. Easy) 38. protection. c. d. Critics believe that buyers have too little education. Environmentalism The Bill of Rights Grassroots politics Consumerism The Human Relations Movement (Answer: d. Scandals in the drug industry. Easy) 36. b. Moderate) a. c. p. d. None of the above. e. b. d. Consumer advocates call for which of the following additional consumer rights? a. c. It was fueled by all of the following conditions except one. 507. Conditions in the meat industry. 507. e. a. (Answer: d. and _____ to make wise decisions when facing sophisticated sellers. c. B and D (Answer: c. c. d. Many people believe that the balance of power in consumerism lies on the seller’s side. money information skills bargaining power credit (Answer: b. 507. The right to influence products and marketing practices in ways that will improve the quality of life. e. Which one? Rising prices. b. p. The right to be protected against questionable products and marketing practices. a. p. 507. Challenging) 220 . The first organized consumer movement in the United States took place in the early 1900s. All of the above. Moderate) 37. e. _____ is an organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers. p.35. The two major movements to keep business in line are environmentalism and _____. consumerism protectionism antimonopoly legislation regulating interstate commerce none of the above (Answer: a. Unsafe products. p. b.

b. 509. Easy) 41. sustainable global economy long-term sustainability new world order economy environmental sustainability green marketing (Answer: a. c. 221 . a. Easy) 43. a. c. Moderate) 42. 509. d. p. c. or _____. d. Moderate) 44. 507.a. ecologically safer products recyclable and biodegradable packaging more energy-efficient operations a concern for nature all of the above (Answer: d. b. p. The challenge of developing an economy that the planet is capable of supporting indefinitely is referred to as _____. _____ is a management approach that involves developing strategies that both sustain the environment and produce profits for the company. p. e. Consumerism Environmentalism Environmental sustainability Social responsibility Ethical decision making (Answer: c. 509. 40. disintegrate resell recover export store (Answer: c. Companies emphasizing prevention of pollution have developed “green marketing” programs that develop _____. c. a. d. d. recycle. e. e. e. p. consumer protection protection of the environment the quality of life efficient use of our resources the welcoming of diversity (Answer: c. 509. d. Environmentalists assert that the marketing system’s goal should be to maximize _____. Design for environment (DFE) involves thinking ahead in the design stage to create products that are easier to reuse. p. c. Easy) a. e. b. b. b.

a. d. The philosophy of _____ holds that a company’s marketing should support the best long-run performance of the marketing system. Easy) 49. p. a. a. b. b. d. environmental issues are having _____ impact on international trade. e. c. c. e. Citizen concerns about marketing practices will usually lead to public attention and _____. Moderate) 47. Practicing product stewardship. c. d. b. b. Easy) 48. (Answer: a. p. c. Investing heavily in environmental technology. such strategies are too expensive many countries do not recognize the importance of environmental standards such policies currently vary too widely between countries markets are too dissimilar C and D (Answer: e. p. b. 513. p. 512. e. a neutral the same a lower a greater more impact on cultural differences among people and less (Answer: d. c. d. e. corporate social responsibility marketing sustainability enlightened marketing the free enterprise system NAFTA (Answer: c.a. d. As international trade barriers come down and global markets expand. 512. 222 . Easy) a. 45. Moderate) 46. p. 512. 512. Biodegradability. What do most companies today focus on when it comes to protecting the environment? Investing heavily in pollution prevention. debates legislative proposals workable laws all of the above none of the above (Answer: d. Uniform worldwide environmental standards are not expected to be put into place soon because _____. Developing a sustainable vision. e.

a. b. c. Desirable. 51. e. green (Answer: b. value employees’. (Answer: a. the company’s requirements. c. p. Easy) What are deficient products? a. Easy) a. b. When a company makes products that give high immediate satisfaction but may hurt consumers in the long run. e. deficient pleasing salutary desirable threatening (Answer: b. Challenging) 52. Products that have neither immediate appeal nor long-run benefits. d. 516. The challenge for their product is to add long-run benefits without reducing the product’s pleasing qualities. 516. societal society’s.a. c. d. What kind of product is it? Salutary. The ideal goal for all companies to have for their products and society should be to turn all of them into _____. b. e. When an enlightened company makes marketing decisions by considering consumers’ wants and interests. Durable. Any product in the decline stage of the product life cycle. 50. 516. salutary ones desirable ones pleasing ones durable ones serviceable ones (Answer: b. e. value society’s. 516. Easy) 54. b. Pleasing. Moderate) 53. it is practicing ______ marketing. (Answer: c. b. c. p. p. a. the federal government’s. and _____ long-run interests. e. p. d. None of the above. Products that are either unsafe or inferior. c. 223 . d. Products that have low appeal but may benefit consumers in the long run. they are called _____. 516. Products that give high immediate satisfaction but only hurt consumers in the long run. d. sense-of-mission society’s. p.

It is important to make a commitment to a common set of shared standards worldwide for the sake of _____. c. b. 519. (Answer: d. 517. p. e. b. d. Pleasing. a. (Answer: a. Challenging) 57. None of the above. 55. Moderate) 58. Companies must decide upon what principle they should use as a guide on issues of ethics and social responsibility. Let individual managers or companies decides. p. The American Marketing Association (AMA) has created a code of ethics that includes three of these four topics. Which one of the following is not a common philosophy to accomplish this end? Let the free market decide. d. e. The challenge for this product is to add some pleasing qualities so that it will become more desirable in the consumers’ minds. Durable. Fairness. Let society decide. futuristic approach total corporate commitment separate budget time commitment that most firms do not have lot of money to implement (Answer: b. What is it called? Salutary. customers suppliers employees our posterity all of the company’s stakeholders (Answer: e. Easy) 59. b. Which on is incorrect? Honesty. 224 . d. e. Moderate) 56. b. Desirable. Limit selling or fundraising during research. p. a. c. c. 519. Aesthetic. Not knowingly doing harm. d. 520. Let the legal system decide. p.a. A and B (Answer: c. e. Ethics and social responsibility require a _____. c. d. c. Easy) a. e. 516. a. p. b.

businesses want to build customer relationships businesses want to justify their prices businesses want repeat business all of the above A and C (Answer: e. Planned obsolescence may involve _____. 497. Ethics and social responsibility must be a component of the _____. e. pp. c. product. there are not enough intermediaries intermediaries are inefficient intermediaries provide only necessary services intermediaries underprice their services C and D (Answer: b. the use of components that will break soon after purchase e. mission statement value statement competencies statement overall corporate culture NAFTA agreement (Answer: d. a. Easy) 225 . b. 62. placement (Answer: c. 496. b. d. Moderate) Critics charge that _____. packaging packaging. p. a. b. and deceptive _____. Moderate) 63. c. e. Moderate) Most businesses try to deal fairly with consumers because _____. b. 502. d. deceptive_____. Easy) a. producers’ continually changing consumer styles b. the holding back of attractive functional features. e. placement pricing. then introducing them later to make older models obsolete c. Deceptive practices fall into three groups: deceptive _____. p. promotion. 64. 499–500. p. c. a. d. the use of material that will rust sooner than they should d. a. promotion product.60. p. 61. promotion pricing. promotion. packaging. product. e. d. c. pricing. 496. all of the above (Answer: e.

c. e. c. p. a. b. b. c. Two major grassroots movements that have arisen to keep business in line include _____ and _____. a. 506. e. p. c. b. For cars.65. b. 504. p. a. Problems involved include all of the following except _____. “social costs” may include _____. 507. environmentalism industrialization. acquisitions of competitors marketing practices that create barriers to entry marketing practices that confuse consumers unfair competitive marketing practices B and D (Answer: c. Critics charge that a company’s marketing practices can harm other companies and reduce competition among companies. 508. ethnocentrism consumerism. d. hooliganism (Answer: b. Easy) Cultural pollution could be referred to as _____. e. d. e. traffic congestion air pollution gasoline shortages A and B all of the above (Answer: e. 505. e. Easy) 67. environmentalism perennialism. Moderate) 68. Easy) 69. consumerism. d. 226 . p. c. Easy) a. d. d. 66. Environmentalism is an organized movement of concerned _____ to protect people’s living environment. citizens businesses government agencies all of the above none of the above (Answer: d. b. favoritism consumerism. p. commercial noise air pollution language barriers a marketer’s inability to identify a target market zipping or zapping (Answer: a. a.

B. Environmental sustainability includes _____. p. b. Challenging) a. 72.70. b. 516. “Green marketing” includes _____. a. b. Moderate) The best examples of pleasing products include _____. cigarettes and junk food dental services and medications seat belts and air bags fruits and vegetables none of the above (Answer: a. B. 74. c. and C (Answer: e. Easy) 227 . e. and C (Answer: d. 509. 73. d. 509. c. a. c. p. d. 509. e. c. e. b. d. e. d. p. a. e. d. Minimizing pollution from production and all environmental impacts throughout the full product life cycle is called _____. c. a principle of enlightened marketing based on the consumer’s point of view the attempt to continuously seek product and marketing improvements A and C A. Easy) Innovative marketing is _____. Moderate) 71. making safer products recycling biodegradability pollution controls all of the above (Answer: e. p. green marketing design for environment (DFE) product stewardship environmental sustainability pollution prevention (Answer: c. a. 514. p. b. protecting the environment extracting environmental materials to their lowest levels producing profits A and C A.

(True. 502. deceptive practices. p. healthy breakfast food front-loading washing machines compact fluorescent light bulbs all of the above none of the above (Answer: d. (True. 516. the company should put most of its resources into customer value-building marketing investments. 515. shoddy or unsafe products.75. When responding to consumer complaints about high prices. 498. Jones Toy Company has been accused of producing shoddy and unsafe children’s toys. p. (True. Moderate) 228 . (True. There are two forms of product obsolescence. Marketers argue that most companies avoid deceptive practices because such practices harm their business in the long run. Two common accusations aimed at consumer advertising are that it is full of lies and that it makes you buy things you don’t need. p. b. The other results form a company holding back attractive functional features of a product. Moderate) 82. increased production complexity. Moderate) True/False 76. 503. p. (False. then introducing them later to make older products obsolete. e. a. p. 496. (False. marketers often explain that consumers do not understand the costs involved that justify the prices. (True. the complaints will center around manufacturer indifference. and poor service to disadvantaged countries. p. Moderate) 77. Easy) 81. Easy) 83. 499. p. and poor quality materials. Easy) 79. Desirable products may include _____. The major criticisms of marketing include harming consumers through high prices. If Jones is typical of most companies. poorly trained labor. c. 496. high-pressure selling. A recent Consumer Union study suggests that the poor pay more for superior goods. p. (True. With customer-value marketing. One results from a product becoming obsolete before it needs replacement. Easy) 78. 498. d. Challenging) 80. p. planned obsolescence.

conditions in the meat industry. Its early beginnings were fueled by rising prices. p. p. p. (True. Each basic consumer right has led to more specific proposals and laws fueled by consumers. Easy) 88. Challenging) 92. The major reason that marketers have been accused of overselling private goods at the expense of public goods is because they require more public services that are usually not forthcoming. 512. Consumerism did not originate with Ralph Nader. such as debating over new bills that will be defeated. p. 512. 507. Environmentalism has led the way for developing the strategy of environmental sustainability. p. Enlightened marketing consists of five principles: consumer-oriented. The problem with doing business with countries such as Denmark and Germany is that they are only in the beginning stages of policy formulation. 503. innovative. Therefore. or made into law. Moderate) 93. (True. p.84. Moderate) 86. 504. Moderate) 229 . 513. 505. American industries do not promote but do protect their own interests. p. 509. modified. (False. 509. Critics of marketing view consumer interest in material things as a natural state of mind and a matter of false wants created by marketing. (True. p. Moderate) 90. (True. resulting in new ways to sustain the environment and allowing companies to make a profit at the same time. and scandals in the drug industry beginning in the early 1930s. p. Environmentalism creates some special challenges for global marketers. Easy) 85. (True. In the progress toward environmental sustainability. 507. (False. and societal marketing. a company strives for the first level of pollution prevention followed by product stewardship. Moderate) 91. Easy) 89. value. (True. sense-of-mission. (False. Citizen concerns about marketing practices will usually lead to public attention and legislative proposals. they cannot be accused of wielding too much political power. Moderate) 87. (True. p.

p. (True. p. Sunset Lawn Service puts most of its resources into value-building marketing investments. Easy) 98. 514. You are listening to the 10 o’ clock news. The finest guidelines can generally be relied upon to resolve all the difficult ethical situations that marketers face. 516. A societally oriented marketer wants to develop products that are not only pleasing but also beneficial to consumers. let individual mangers and companies choose. Marketers produce pleasing products when they have low appeal but may benefit consumers in the long run. Moderate) 96. 514. Easy) 102. (False. Challenging) 97.94. (False. The company must be practicing consumer-oriented marketing. p. Easy) 104. New World is involved in consumer-oriented marketing. (False. Moderate) 99. (False. Two common philosophies that guide a company in choosing what principle to follow on issues of ethics and social responsibility include let the free market and legal system decide. (False. (True. Challenging) 103. When a company views and organizes its marketing activities from only the consumer’s point of view. 517. 517. p. Conscientious marketers face many moral dilemmas. 516. Easy) 95. 516. The newscaster is telling about a company that makes marketing decisions by considering consumers’ wants and long-run interests. p. New World Food Supplements continuously seeks real product and marketing improvements. Its industry identifies it as a pleasing product. p. (True. (True. The management at Sunset is practicing customer-value marketing. Easy) 230 . (False. Xorbate Blue is a relatively new food supplement that has given both high immediate satisfaction and high long-run benefits. It is important for an international marketer to develop a common set of shared standards worldwide for use in all of its markets. After gathering the data. Moderate) 100. the best thing to do is often unclear rather than obvious. Obviously. Seatbelts are considered to be salutary products. p. p. (True. and society’s long-run interest. it is practicing societal marketing. and secondly. Challenging) 101. the company’s requirements. 514. 518–519. pp. p. 516. 517. p.

Identify the major social criticisms of marketing. They are practicing environmental sustainability by developing strategies that both sustain the environment and produce profits for the company. too few social goods. What are the ways marketing is accused of harming the consumer? Marketers are charged with causing prices to be higher than they need to be. Easy) Essay 106. marketers are accused of delivering poor service to disadvantaged consumers or not making products available to them. and have helped pass legislation to protect the environment. and unfair competitive marketing practices. (p. Others are blamed for developing products that become obsolete before they actually need replacement. 507–508. a company defines its mission in broad social terms rather than narrow product terms. Environmental groups have improved conditions in many industries. (pp. (p. including the meat and drug industries. They are sometimes accused of deceptive practices that lead consumers to believe they will get more value than they actually do. 503. p.105. and protection. Others are accused of selling shoddy or unsafe products. How do consumerism and environmentalism affect marketing strategies? Alert marketers view consumerism as an opportunity to serve consumers better by providing more consumer information. Sometimes salespeople pressure consumers to purchase products they neither want nor can afford. practices that create barriers to entry. The latest move is for companies to be proactive and take the responsibility for not doing environmental harm. Moderate) 107. Last. 496. and too much political power. Critics have also criticized marketing’s impact on other business for harming competitors and reducing competition through acquisitions. Marketing’s impact on society has been criticized for creating false wants and too much materialism. cultural pollution. Challenging) 108. 514. (True. Moderate) 231 . education. In sense-of-mission marketing.

Management must decide what to do about bribery and kickbacks. Consumer-oriented marketing acts from the consumers’ point of view. They must develop a set of principles that will help them figure out the moral importance and implications of each situation and decide how far they can go in good conscience. 517. Explain some basics that international marketers can follow to act ethically? It is important to make a commitment to a common set of shared standards worldwide. (p. When a company defines its mission in broad social terms rather than narrow product terms. They should cover distributor relations.–516 Challenging) 110. and general ethical standards. What can conscientious marketers do to act ethically when faced by ethical dilemmas? Companies can develop corporate marketing ethics policies to provide broad guidelines for everyone in the organization to follow. (p. Challenging) 112. All stakeholders must be considered in all designs. Lastly. pricing product development. Consumer-value marketing exists when a firm puts most of its resources into value-building investments. advertising standards. Desirable products are at the top because they give both high immediate satisfaction and high long-run benefits. and society’s long-run interests. (p. itself. customer service. 519. exists when the company makes its decisions by considering consumers. In between are pleasing products that give high immediate satisfaction but may hurt consumers in the long run. (pp. Easy) 232 . 513. In general. Management must decide if its standards should be lowered in countries with existing low standards in order to compete effectively. Compare and contrast the five forms of enlightened marketing. or societal marketing. 516. Moderate) 111. it is better to act more ethically than less ethically. And we also find salutary products that have low appeal but may benefit consumers in the long run.109. Innovative marketing seeks real product and marketing improvements. it is practicing sense-of-mission marketing. the pinnacle. How do the four types of products in the societal classification of products stack up against each other? Deficient products are at the bottom because they have neither immediate appeal nor long-run benefits.

companies are responding to the need to provide company policies and guidelines to help their managers deal with questions of marketing ethics. b. education. Alert marketers view it as an opportunity to serve consumers better by providing more consumer information. Some companies have followed a policy of enlightened marketing. and protection. Moderate) 115. (pp. managers must look beyond what is legal and allowable and develop standards based on personal integrity. p. Of course even the best guidelines cannot resolve all the difficult ethical decisions that individuals and firms must make. A second. 517. Easy) 114. (p. it will be accused of pushing up prices to finance _____. Challenging) 233 a. Each firm and marketing manager must work out a philosophy of socially responsible and ethical behavior. e. Environmentalism is an organized social movement seeking to minimize the harm done to the environment and quality of life by marketing practices. Moderate) APPLICATION CONTENT: Multiple-Choice Questions 116. sense-ofmission marketing. d. . 496. and societal marketing. customer-value marketing. but most of them now recognize a need for positive consumer information. (p. Under the societal marketing concept. Describe the principles of socially responsible marketing. But there are some principles that marketers can choose among. Enlightened marketing consists of five principles: consumeroriented marketing. One principle states that such issues should be decided by the free market and legal system. which holds that a company’s marketing should support the best long-run performance of the marketing system.113. Increasingly. and long-term consumer welfare. Consumerism is an organized social movement intended to strengthen the rights and power of consumers relative to sellers. puts responsibility not in the system but in the hands of individual companies and managers. rising employee benefits heavy advertising and sales promotion costs rising gasoline prices that affect distribution inflationary costs of doing business none of the above (Answer: b. Explain the role of ethics in marketing. Many companies originally opposed these social movements and laws. innovative marketing. c. education. corporate conscience. 513. Define consumerism and environmentalism strategies. 507–508. and more enlightened principle. If Jolene Cosmetics is typical of consumer attacks. and protection.

b. Unfair competitive marketing practices. costs strength psychological value popularity market image (Answer: c. Which of the following list the one item that is not a problem regarding this? Acquisition of competitors. you work for a major tobacco company. your company has received numerous critical letters stating that it wields too much _____ power.a. Moderate) a. e. e. c. 506. 496. Critics charge that promotion adds only _____ to the products rather than functional value. d. e. d. None of the above. Critics charge that a company’s marketing practices can harm other companies and reduce competition. p. p. b. p. d. c. 234 . c. d. 117. e. b. Marketing practices that create barriers to entry. Moderate) 119. a. c. (Answer: d. Offering more value for less price. a. survive stay competitive obey local and federal law build long-term relationships with customers maintain a database (Answer: d. Moderate) 118. The sales force at Tom Dennis Ford dealership knows that using high-pressure selling does not work if the firm wants to _____. Challenging) 120. Recently. A heavily promoted brand of flu medicine sells for much more than a virtually identical nonbranded or store-branded product. 505. p. economic political social legal all of the above (Answer: e. 498. At this point in your career. b.

Easy) 124. . Inc. 511. Marketing intelligence. Jacob Engineering Group views and organizes its marketing activities from the viewpoint of its buyers. e. What is this practice called? Design for environment. b. 513. b. Sense-of-mission marketing. Moderate) 235 a.. Consumer oriented. but all environmental impacts throughout the full product life cycle. Product stewardship. 509. d. Value. Societal marketing. a. e. p. (Answer: b.a. Green marketing. e. b. p. 514. c. is now looking into the future and working on the third level of environmental sustainability called _____. Value marketing. At the second level of sustaining the environment. c. Innovative. 121. p. Challenging) 123. c. Social responsibility. (Answer: a. Xavier Rentals. and satisfy the needs of its well-defined group of buyers. a. (Answer: b. Moderate) 125. p. This form of enlightened marketing requires that a company seek real product and marketing improvements. Some firms define their purpose in narrow product terms. b. Challenging) 122. e. a. d. d. Sense-of-mission. c. Corporate accountability. Management works hard to sense. Market oriented. 514. b. d. serve. c. p. societal marketing sense-of-mission marketing consumer-oriented marketing value marketing none of the above (Answer: b. d. e. companies can minimize not just pollution from production. sustainable vision new environmental technologies corporate citizenship computer-enhanced environmental control none of the above (Answer: b. What do they practice? Consumer-oriented marketing. Others that define their company’s purpose in broad social terms follow _____.

b. consumer-oriented innovative value societal home-based (Answer: b. 514. 236 . 516. Innovative. Value. p. e. Pleasing. Challenging) 127. d. (Answer: c. When Hancock & Dunberry developed new simplified wills for the elderly and less educated markets. e. Desirable. e. Monica could create broad guidelines that everyone in the organization could follow to develop moral sensitivity in the form of _____. Unpleasing. the law firm began practicing _____ marketing. a. and a free statewide legal referral service. less expensive home visits. What type of marketing has Colgate been using recently? Consumer-oriented. Moderate) 129. 126. a. e. c. d. p. Baker Enterprises produces several new products that have low appeal but may benefit consumers in the long run. Sometimes it is unclear what decisions to make when she and her staff are faced with moral dilemmas. Home-based. Monica Carey is a conscientious marketing manager. p. Moderate) 128. b. Challenging) a. b.a. c. while in foreign markets they account or 35 percent of sales. Societal. In recent years. a company value statement a company mission statement a company vision statement corporate marketing ethics policies a financial statement (Answer: d. 517. c. d. d. (Answer: c. 514. How would you classify these products? Deficient. c. Salutary. b. Colgate Company’s new product sales in the United States are 58 percent of total sales. p.

c. 130. Albatross Enterprises was accused of deceptive pricing. Moderate) 132. e. c. B. Children growing into attractive adults as a result of drinking milk. d. B and D (Answer: e. Mr. p. (Answer: c. One major issue in foreign trade is bribery. c. p. 497. a. b. e. Albatross advertised a large price reduction from a phony high retail list price. pollution prevention green marketing product stewardship design for environment (DFE) practices new environmental technologies (Answer: d. worked to design products that are easier to reuse or recycle. Which of the following explains what might have happened? Hart’s refused to advertise sale prices in the local paper. Hart’s misrepresented a product’s features in an advertisement. Easy) a. Which of the following explains what might have happened? Albatross refused to advertise sale prices in the local paper. d. Challenging) 134. a. e. Any of the above. b. 497. Hart’s Department Store was accused of deceptive promotion. Albatross lured customers to the store for a bargain that is out of stock. p. 519. p. b. Hart’s lured customers to the store for a bargain that is out of stock. Inc. Albatross misrepresented a product’s features in an ad. Easy) 131.a. c. The most flagrant bribe-paying firms found in one recent study are located in all of these countries except _____. 133. Hart’s advertised a large price reduction from a phony high retail list price. p. Clean coming to a housewife’s rescue. d. Russia China South Korea Austria none of the above (Answer: d. b. c. b. None of the above. 497. 509. e. Toned thighs and legs as a result of using the Thigh Master for only 15 minutes each day. Moderate) Which of the following situations might be considered “puffery”? a.. e. A. 237 . d. or C (Answer: e. d. ABC was adopting _____. When ABC.

p. Deceptive pricing includes practices such as falsely advertising factory or wholesale prices or a large price reduction from a phony high retail list price. Moderate) Short Answer 136. Easy) 138. Define deceptive pricing. Easy) 139. What is meant by redlining? Redlining is a type of economic discrimination in which major chain retailers avoid placing stores in disadvantaged neighborhoods. What is meant by cultural pollution? Cultural pollution is “commercial noise. The Neptune washer is an example of a _____ product. Maytag’s front-loading Neptune washer provides superior cleaning and energy efficiency. and billboards that mar beautiful scenery. or describing size in misleading terms. Define deceptive promotion. (p. c.a. 502. 516. (p. 497. Examples include: commercials that interrupt serious programs.” in which our senses are constantly being assaulted by advertising. 505. (p. (p. b. deficient pleasing salutary desirable satisfying (Answer: d. d. Deceptive promotion includes practices such as misrepresenting the product’s features or performance or luring customers to the store for a bargain that is out of stock. Moderate) 140. Moderate) 238 . (p. using misleading labeling. 135. Easy) 137. Deceptive packaging includes exaggerating package contents through subtle design. pages of ads that obscure magazine. 497. 497. Define deceptive packaging. e.

508. How does environmentalism contribute to “life quality”? “Life quality” means not only the quantity and quality of consumer goods and services. Consumerism is an organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers. 508. (p. Moderate) 146. or recycle. Green marketing programs involve the development of ecologically safer products. In some cases. (p. businesses. Environmentalism is an organized movement of concerned citizens. 509. Environmental sustainability involves the development of strategies that both sustain the environment and produce profits for the firm. (p. Easy) 147. Easy) 143. 509. It involves the elimination or minimization of waste before it is created. Define green marketing. reuse. Define consumerism. (p. environmentalists want environmental costs included in both producer and consumer decision making. Challenging) 144. Challenging) 145. recyclable and biodegradable packaging. these practices are a part of product stewardship. environmental sustainability may not be totally achievable but it is something worth striving for. and better pollution-control standards. Moderate) 239 . Define environmentalism. 509. What is involved in pollution prevention? Pollution prevention means more than pollution control—or the cleaning up of waste after it has been created. Easy) 142. (p.141. How do design for environment (DFE) practices relate to product stewardship? DFE practices involve thinking ahead to design products that are easier to recover. (p. (p. but also the quality of the environment. and government agencies to protect and improve people’s living environment. 509. Is environmental sustainability possible? Explain. 507.

(p. (p.148. when a company defines a social mission. Explain the role of sense-of-mission marketing. and satisfy the needs of a defined group of consumers. Enlightened marketing consists of consumer-oriented marketing. (p. environmental issues are having an even greater impact on international trade. (p. Challenging) 149. different environmental standards between and among various countries make environmentalism especially challenging. 514. and societal marketing. (p. This is an extremely proactive approach in which the marketer attempts to stay ahead of competitors. 512. Challenging) 240 . Moderate) 150. 514. and policies must evolve and what new technologies must be developed to get there. 513. innovative marketing. Challenging) 152. Consumer-oriented marketing means that the company should view and organize its marketing activities from the consumer’s point of view. serve. Define consumer-oriented marketing. Why is environmentalism especially challenging for global marketers? As international barriers come down and global marketers expand. employees feel better about their work and have a clearer sense of direction. Sense-of-mission marketing means that the company should define its mission in broad social terms rather than narrow product terms. What types of firms adopt sustainability visions? Such firms use this vision as a guide to the future. Challenging) 151. 513. Challenging) 153. a sustainability vision shows how the company’s products and services. Define enlightened marketing. 512. (p. The company should work to sense. Enlightened marketing holds that a company’s marketing should support the best long-run performance of the marketing system. value marketing. processes. sense-ofmission marketing. How does a firm benefit from innovative marketing? Innovative marketing requires that the company continuously seek real product and marketing improvements.

According to various possibilities highlighted in the textbook. 516. Easy) 155. Eagle admitted. desirable products give both high immediate satisfaction and high long-run benefits. Moderate) 241 . Mr. on the other hand. (p. (p. give high immediate satisfaction but may hurt consumers in the long run. What is the difference between deficient products and pleasing products? Deficient products have neither immediate appeal nor long-run benefits. 156. in what ways might this marketer have previously “harmed” consumers? Benning’s could have charged exorbitantly high prices.” Mr. whereas.154. What is the difference between salutary products and desirable products? Salutary products have low appeal but may benefit consumers in the long run. 497. 516. 495–496. How could this marketer have avoided deceptive promotion? For example. Eagle purchased the distributorship in hopes of turning it around. Assume that Benning’s previously engaged in deceptive promotion. engaged in deceptive practices or high-pressure selling. pleasing products. (p. The distributor of automotive parts and accessories had been criticized for a number of wrongdoings. Benning’s could have represented their products’ features as honestly as possible and avoided luring customers to the store for a bargain that was out of stock or may not have existed. trying to put a sound plan in place that would allow Benning’s to move forward. (pp. Without fully realizing the extent of Benning’s problems. Easy) 157. or provided poor service to disadvantaged consumers. “But the harder I work. sold shoddy or unsafe products. “the more Benning’s earlier problems seem to unfold. Easy) Scenario Donald Eagle acquired Benning’s at a low point.” Donald Eagle began to rethink his strategy.

Explain how this marketer’s mission may change under a sense-of-mission marketing approach. Moderate) 161.158. Sense-of-mission marketing would allow Benning’s to define its mission in broad social terms instead of narrow product terms. Challenging) 242 . such a strategy will take time. 514. disgruntled customers may have blamed Benning’s merely because the firm is a player in the supply chain. Easy) 162. In addition. If this marketer were to adopt a policy of environmental sustainability. what would be Benning’s primary focus? Consumer-oriented marketing would allow Benning’s to view and organize its marketing activities from the consumers’ points of view. Moderate) 163. Benning’s could have suffered from an image standpoint. How could have obsolescence strategies carried out by this distributor’s suppliers have harmed Benning’s? Benning’s could have been left with excess inventory in the event that Benning’s was not made aware of the obsolescence plan. What possible “social costs” may have previously been associated with Benning’s? Benning’s may have oversold “private goods” with a lack of public services to accommodate the sales. or pollution control. (p. For example. Challenging) 159. but all environmental impacts throughout the full product life cycle. DFE practices. on what would its focus be? Benning’s could focus on pollution prevention. Benning’s can work to deliver superior value to carefully chosen customers. (p. Might product stewardship be a major focus for Benning’s? Explain. 499. (p. Challenging) 160. Benning’s automotive parts sales may not have focused on safety features. Yes. (p. Benning’s could work to minimize not just pollution from production. green marketing. efficient engines. 509. based on the negative image of Benning’s in the marketplace. With a consumer-oriented marketing plan. (p. and new environmental technologies. for example. contrary to any costs involved. 513. 504. (p. 509. product stewardship.

Deficient products are those that have neither immediate appeal nor long-run benefits. 516. (p. Easy) 243 . desirable products give high immediate satisfaction and high long-run benefits.164. Describe any deficient or pleasing product types likely associated with this marketer. Describe any salutary or desirable product types likely associated with this marketer. pleasing products give high immediate satisfaction but may hurt consumers in the long run. 516. Easy) 165. (p. Salutary products have low appeal but may benefit consumers in the long run.