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Test Item Table by Major Section of the Chapter and Bloom’s Level of Learning
NOTE: Bold numbers indicate short essay questions. Underlined numbers indicate visually enhanced questions.
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CHAPTER 4: MASTER TEST BANK
ETHICAL AND SOCIAL RESPONSIBILITY IN MARKETING
NOTE: Bold numbers indicate short essay questions. Underlined numbers indicate visually enhanced questions.
CHAPTER 4: MASTER TEST BANK
ETHICAL AND SOCIAL RESPONSIBILITY IN MARKETING
The Family Talk about Drinking guidebook developed by Anheuser-Busch to help parents
address the topic of underage drinking is an example of
a. consumerism.
b. preemptive marketing.
c. ethical behavior in marketing.
d. the social marketing concept.
e. cause marketing.
Anheuser-Busch acts on what it views as an ethical obligation to its customers and the general
public with its
a. development of a low-carb beer.
b. annual sponsorship of the Super Bowl.
c. exclusive use of ingredients from American manufacturers and suppliers.
d. alcohol awareness and education programs.
e. commitment to maintaining the lowest prices possible without sacrificing taste.
-4-
Answer: b Page(s): 88-89 LO: 3 AACSB: Ethics QD: Medium
Rationale: Corporate Social Responsibility (CSR) Department was established within Anheuser-
Busch to develop and implement programs, advertising and partnerships that promote responsible
drinking, prevent alcohol abuse, and curb underage drinking before it starts.
Anheuser-Busch is trying to meet the needs of a very diverse group: its customers who drink
beer, environmentalists, ABRC, shareholders, and underage children who might think “drinking
is cool.” The primary reason for its desire to satisfy these needs is consistent with the idea of
social responsibility because
a. all of these people or groups are its stakeholders.
b. if Anheuser-Busch is not profitable, too many people will lose their jobs.
c. the larger Anheuser-Busch’s profits, the more taxes they will be able to pay.
d. contrary to popular belief, alcohol can be good for you if consumed in moderation.
e. the more highly thought of by potential consumers, the higher company’s sales would be.
-5-
Rationale: Stakeholders is defined in Chapter 1. The term stakeholder refers to any group or
organization that has a stake in the performance of the company. Social responsibility is a key
term in Chapter 4—the idea that organizations are part of a larger society and are accountable to
that society for their actions. By preserving the natural environment, Anheuser-Busch is
appealing to the environmentalists. And ABRC, by its alcohol awareness and education
initiatives, appeals to people who drink beer and those who try to educate children from thinking
drinking beer would make them cool.
The moral principles and values that govern the actions and decisions of an individual or group
are referred to as
a. social norms.
b. cultural values.
c. ethics.
d. societal philosophy.
e. religion.
Laws refer to
a. a specific set of behaviors a given society considers ethical.
b. society’s values and standards that are enforceable in the courts.
c. the agreed upon codes of behavior for a given nation, community, religious group, or family.
d. written documentation of a prescribed set of attitudes, beliefs, and values.
e. a code of ethics that defines what may be done in specific business circumstances.
Society’s values and standards that are enforceable in the courts are referred to as
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a. situational ethics.
b. cultural norms.
c. industry practices.
d. laws.
e. the Consumer Bill of Rights
Which of the following statements accurately distinguishes between laws and ethics?
a. Laws reflect the beliefs of the majority of society while ethics reflect the beliefs of the
minority of society.
b. Ethics deal with religious and moral beliefs while laws deal with social, economic, and
environmental behaviors.
c. Ethics deal with internal (personal) issues while laws deal with external (social) issues.
d. There is no significant difference between laws and ethics; these terms can be used
interchangeably.
e. Ethics deal with personal and moral principles whereas laws are society’s values that are
enforceable in the courts.
More than 70 percent of the physicians in the Maricopa County (Arizona) Medical Society agreed
to establish a maximum fee schedule for health services to curb rising medical costs. All
physicians were required to adhere to this schedule as a condition for membership in the society.
The U.S. Supreme Court ruled that this agreement violated the Sherman Act and represented
price fixing. This example illustrates that the physician’s actions were
a. ethical but illegal.
b. ethical and legal.
c. unethical and illegal.
d. unethical but legal.
e. altruistic but naïve.
China is the world’s largest tobacco-producing country and has 300 million smokers.
Approximately 700,000 Chinese die annually from smoking-related illnesses. This figure is
expected to rise to more than 2 million by 2025. China restricts tobacco imports. U.S. trade
-7-
negotiators advocate free trade, thus allowing U.S. tobacco companies to market their products in
China. The U.S. trade negotiators are acting
a. ethically but illegally.
b. ethically and legally.
c. unethically and illegally.
d. unethically but legally.
e. in ways that cannot be determined by the information provided.
An owner of a small publishing company allowed a friend who was starting a machine
embroidery business to load the publishing company’s copy of Microsoft Word on her friend’s
computer. This activity is
a. both legal and ethical.
b. caveat emptor.
c. illegal but ethical.
d. illegal and unethical.
e. sanctioned by the Business Software Alliance since only one copy is to be transferred.
Enron’s Chief Financial Officer Andrew Fastow was indicted and then pleaded guilty on a
charges of securities fraud in the Enron case and was accused of enriching himself and his family
at the company’s expense. Fastow, in his tenure with Enron, acted
a. ethically but illegally.
b. ethically and legally.
c. unethically and illegally.
d. unethically but legally.
e. in a socially responsible manner.
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Many media today use pay-to-vote polls, in which respondents use a 900-telephone number to
vote “yes” or “no” on a current issue, as a means of generating viewer or listener interest. The
Research Industry Coalition (RIC) has asked all media to inform viewers or listeners that the
validity of such polls is questionable and the results are NOT statistically representative of the
population but are just a frequency distribution of those who happen to call. If a television station
chooses not to make viewers aware of the shortcomings of a pay-to-vote poll, its business practice
would fall into which of the following categories?
a. ethical but illegal.
b. ethical and legal.
c. unethical and illegal.
d. unethical but legal
e. in today’s media age, this practice has become universal; any bias is implied and need not be
directly stated under the caveat emptor doctrine.
A recent poll by Environics International, a public-opinion research firm, found that 67 percent of
North Americans are willing to boycott products on ethical grounds. This survey did not ask if
the person who was acting on ethical grounds would first see if the boycott was based on facts.
Which of the following statements describes a conclusion that should be drawn from this
information?
a. If you are an ethical person, you should act according to your instincts.
b. Realistically speaking, in order to stay in business, all businesses must occasionally behave
unethically.
c. All businesses will act unethically unless forced by consumers to act morally.
d. There is nothing consumers can do to stop unethical business activities.
e. Boycotting a product without knowing the facts can be viewed as unethical.
Public opinion surveys show that 58 percent of U.S. adults rate the ethical standards of business
executives as
a. outstanding.
b. above average.
c. similar to other professions.
d. typical of businesspeople around the world.
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e. fair or poor.
According to public opinion surveys, __________ are considered to be among the LEAST ethical
occupations in the United States.
a. insurance company professionals
b. legal professionals
c. advertising practitioners
d. members of the U.S. Congress
e. the news media
All of the following are reasons for the state of perceived ethical business conduct EXCEPT:
a. a growing tendency for business decisions to be judged publicly by groups with different
values and interests.
b. the increased pressure on business people to make decisions in a society with diverse value
systems.
c. an increase in the public’s expectations of ethical business behavior.
d. ethical business conduct may have declined.
e. businesses are behaving more ethically during these difficult economic times.
Factors influencing personal moral philosophy and ethical behavior include __________,
business culture and industry practices, and corporate culture and expectations.
a. religious beliefs and practices
b. societal culture and norms
c. national and regional legislation
d. universal core values
e. the universal concept of good vs. evil
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culture and norms, business culture and industry practices, and corporate culture and
expectations.
Which of the following is considered one of the major factors that influences ethical behavior?
a. organizational structures
b. societal culture and norms
c. national and local legislation
d. the U.S. Supreme Court
e. a nation’s moral philosophy
Which of the following is considered one of the major factors that influences ethical behavior?
a. organizational structures
b. legislation
c. federal regulatory agencies
d. a nation’s moral philosophy
e. business culture and industry practices
Factors influencing personal moral philosophy and ethical behavior include societal culture and
norms, business culture and industry practices, and __________.
a. religious beliefs and practices
b. corporate culture and expectations
c. national and regional legislation
d. universal core values
e. the universal concept of good vs. evil
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4-25 CULTURE KNOWLEDGE
Culture refers to
a. the set of values, ideas, and attitudes that are learned and shared among members of a group.
b. the music, art, theater, etc. that reflects the values of an entire nation.
c. the learned behaviors of a specific racial, ethnic, or religious group based on commonly
shared ethical principles and protected by laws.
d. the combination of beliefs and behaviors accepted as correct regardless of a person’s age, sex,
race, or religion.
e. the set of values, ideas, attitudes, and norms of behavior that is learned and shared among the
members of an organization.
In marketing, the set of values, ideas, and attitudes that are learned and shared among members of
a group is referred to as __________.
a. ideals
b. morals
c. ethics
d. culture
e. diversity
Culture refers to the set of values, ideas, and attitudes that are learned and shared among members
of a group. It also serves as a socializing force that
a. reflects the will of the largest or most powerful minority.
b. is determined by the largest generational group at a given point in time.
c. becomes the basis of all legislation—federal, state, and local—in societies around the world.
d. expresses the diverse backgrounds of a nation’s subcultures.
e. dictates what is morally right and just.
Which of the following is a socializing force that dictates what is morally right and just?
a. federal regulatory agencies like the FTC
b. federal, state, and local legislation
c. the U.S. Supreme Court
d. culture
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e. organizational core values
Culture refers to the set of values, ideas, and attitudes that are learned and shared among members
of a group. Culture also serves as a socializing force that dictates what is morally right and just.
The important thing to remember is that moral standards
a. are relative to particular societies.
b. must be universal in order for cross-cultural marketing to be effective.
c. are fluid and very easy to change.
d. are cyclical so it is important to change with the times.
e. are concrete; something is either right or wrong
The unauthorized use of intellectual property can severely affect the owners of that property.
This practice also
a. levels the playing ground for developing nations by eliminating years of research time.
b. accelerates innovation in that industry, as new and improved offerings enter the marketplace.
c. has a negative impact on the economy through the loss of jobs, royalties, wages, or tax
revenue.
d. has a positive impact on an entire nation’s cultural value system.
e. ensures that the prices to consumers are minimized as a result of increased competition.
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Rationale: Differences in societal culture and norms affect the view of ethical behavior. Annual
lost sales from the theft of intellectual property amounts to $12.5 billion in the music industry,
$20.5 billion in the movie industry, and $51.0 billion in the software industry. Lost sales, in turn,
result in lost jobs, royalties, wages, and tax revenue.
Consider the copying of another’s copyright, trademark, or patent. These are viewed as
intellectual property. In the U.S., unauthorized use, reproduction, or distribution of intellectual
property is illegal. Yet in China, copying enjoys a long tradition and does not carry a stigma. For
example, copying a masterpiece was historically considered an art form in its own right. The
difference between the two countries shows that __________ affect(s) the view of ethica1
behavior held in each country.
a. business culture
b. industry practices
c. corporate culture
d. corporate expectations
e. societal culture and norms
As the use of the Internet grows around the world, there must be as easy an exchange of ideas and
information as possible between countries. One important issue is opt-in versus opt-out. In
general, European websites have opt-in policies while U.S. websites have opt-out policies. Opt-
in means customers must ask to be involved in data collection and marketing while opt-out
companies automatically include customers in data collection unless the customer specifically
asks not to be included. Europeans believe it is unethical to invade someone’s privacy.
Americans are not nearly as protective of their right to privacy. What ethical factor is illustrated
by this example?
a. industry practices
b. social legislation
c. societal culture and norms
d. changes it international law
e. organizational culture and expectations
Making counterfeit copies of Gucci purses, Tommy Hilfiger sportswear, and other international
brands is pervasive in China because laws protecting intellectual property are unclear and
sporadically enforced. Even when sanctions are applied, sanctions are minimal, typically
- 14 -
consisting of confiscation, a warning, a public apology, and perhaps a fine. Moreover, copying
enjoys a long tradition in China and does not carry a stigma. A business introducing a product
into China needs to know that its __________ may lead to trademark infringements.
a. religious precepts
b. antecedent states
c. moral idealism
d. societal culture and norms
e. utilitarianism
In marketing, the effective rules of the game, the boundaries between competitive and unethical
behavior, and the codes of conduct in business dealings are referred to as
a. societal norms.
b. societal mores.
c. business cultures.
d. fair trade practices.
e. corporate values.
Business culture affects ethical conduct both in the exchange relationship between sellers and
buyers and in the
a. competitive behavior among sellers.
b. purchase behavior among buyers.
c. price, service, and product responsibility to the ultimate consumer.
d. accountability of buyers and sellers to federal and state regulators.
e. perception of ethical behavior as viewed by employers of business firms, not nonprofit
organizations.
- 15 -
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