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Test bank for Marketing 11th Edition Kerin Hartley

Rudelius 0077441842 9780077441845

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CHAPTER 4: MASTER TEST BANK


ETHICAL AND SOCIAL RESPONSIBILITY IN MARKETING

Test Item Table by Major Section of the Chapter and Bloom’s Level of Learning

Bloom’s Level of Learning (LL)


Level 1 Level 2 Level 3
Major Section
Knowledge Comprehension Application
of the Chapter
(Knows Basic (Understands (Applies
Terms & Facts) Concepts & Principles)
Principles)
Chapter Opener: 2, 3, 4 1, 5, 6
Anheuser-Busch 186
(pp. 88-89)
Nature and 7, 8, 9, 10 11, 12, 13, 18, 19, 20 14, 15, 16, 17
Significance of 187, 188 189
Marketing Ethics
(pp. 90-91)
Understanding Ethical 25, 26, 27, 30, 35, 21, 22, 23, 24, 28, 29, 31, 32, 33, 34, 41,
Marketing Behavior 38, 39, 40, 43, 44, 36, 37, 53, 54, 62, 65, 42, 55, 56, 57, 58,
(pp. 91-98) 45, 46, 47, 48, 49, 66, 67, 71, 72, 73, 74, 59, 60, 68, 69, 81,
50, 51, 52, 61, 63, 76, 77, 80, 86, 87, 88, 89, 90, 93, 94, 99,
64, 70, 75, 78, 79, 95, 98, 102, 103, 104, 100, 101, 112, 113,
82, 83, 84, 85, 91, 108, 109, 110, 111, 115, 117
92, 96, 97, 105, 116 196
106, 107, 114 190, 192, 193, 194
191, 195
Understanding Social 118, 119, 127, 128, 120, 121, 124, 125, 126, 122, 123, 130, 134,
Responsibility in 131, 132, 136, 137, 129, 133, 145, 155, 156, 135, 138, 139, 146,
Marketing 140, 141, 142, 143, 164, 155, 156, 164, 165, 147, 148, 149, 157,
(pp. 98-103) 144, 150, 151, 152, 168, 169, 170, 173, 175, 158, 159, 160, 161,
153, 154, 163, 166, 176, 177, 178, 179, 180 162, 174
167, 171, 172, 181, 197, 200, 201, 203, 204 198, 199, 202
182
Video Case 4: Toyota 183, 184, 185
(pp. 105-107)

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

Test Item Table by Learning Objective and Bloom’s Level of Learning

Bloom’s Level of Learning (LL)

Learning Objective Level 1 Level 2 Level 3


(LO) Knowledge Comprehension Application
(Knows Basic (Understands Concepts (Applies Principles)
Terms & Facts) & Principles)
LO1 Explain the 7, 8, 9, 10 11, 12, 13, 18, 19, 20 1, 14, 15, 16, 17
differences 187, 188 189
between legal
and ethical
behavior in
marketing.
(pp. 90-91)
LO2 Identify factors 25, 26, 27, 30, 35, 21, 22, 23, 24, 28, 29, 31, 32, 33, 34, 41,
that influence 38, 39, 40, 43, 44, 36, 37, 53, 54, 62, 65, 42, 55, 56, 57, 58,
ethical and 45, 46, 47, 48, 49, 66, 67, 71, 72, 73, 74, 59, 60, 68, 69, 81,
unethical 50, 51, 52, 61, 63, 76, 77, 80, 86, 87, 88, 89, 90, 93, 94, 99,
marketing 64, 70, 75, 78, 79, 95, 98, 102, 103, 104, 100, 101, 112, 113,
decisions. 82, 83, 84, 85, 91, 108, 109, 110, 111, 115, 117
(pp. 91-98) 92, 96, 97, 105, 116 196
106, 107, 114 190, 192, 193, 194
191, 195
LO3 Describe the 118, 119, 127, 128, 2, 3, 4, 120, 121, 124, 5, 6, 122, 123, 130,
different 131, 132, 136, 137, 125, 125, 126, 129, 133, 134, 135, 138, 139,
concepts of 140, 141, 142, 143, 145, 155, 156, 164, 165, 146, 147, 148, 149,
social 144, 150, 151, 152, 168, 169, 170, 173, 183, 157, 158, 159, 160,
responsibility. 153, 154, 163, 166, 184, 185 161, 162, 174
(pp. 98-102) 167, 171, 172 186, 197, 200, 201, 203 198, 199, 202
LO4 Recognize 181, 182 175, 176, 177, 178, 179,
unethical and 180
socially 204
irresponsible
consumer
behavior.
(pp. 102-103)

NOTE: Bold numbers indicate short essay questions. Underlined numbers indicate visually enhanced questions.
CHAPTER 4: MASTER TEST BANK
ETHICAL AND SOCIAL RESPONSIBILITY IN MARKETING

MULTIPLE CHOICE QUESTIONS

4-1 CHAPTER OPENER: ANHEUSER-BUSCH APPLICATION

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.

Answer: c Page(s): 88-89 LO: 1 AACSB: Ethics QD: Hard


Rationale: The Anheuser-Busch guidebook, Family Talk about Drinking, was developed to help
parents address the topic of underage drinking. It is an example of ethics in marketing since
ethics are the moral principles and values that govern the actions and decisions of an individual or
group that serve as guidelines on how to act rightly when faced with moral dilemmas such as
underage drinking.

4-2 CHAPTER OPENER: ANHEUSER-BUSCH COMPREHENSION

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.

Answer: d Page(s): 88-89 LO: 3 AACSB: Ethics QD: Medium


Rationale: Anheuser-Busch has worked to convince people not to abuse its products. It acts on
what it views as an ethical obligation to its customers and the general public with its alcohol
awareness and education programs.

4-3 CHAPTER OPENER: ANHEUSER-BUSCH COMPREHENSION

Anheuser-Busch established its Corporate Social Responsibility (CSR) Department to


a. promote the positive aspects of moderate beer consumption.
b. promote responsible drinking and deter underage drinking and alcohol abuse.
c. encourage recycling of both aluminum cans and glass bottles by ultimate consumers and
suppliers.
d. educate employees about the importance of serving as role models by drinking responsibly
themselves.
e. promote Anheuser-Busch as more socially responsible than its competitors.

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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.

4-4 CHAPTER OPENER: ANHEUSER-BUSCH COMPREHENSION

By preserving the natural environment, Anheuser-Busch is appealing to environmentalists


through its alcohol abuse awareness initiatives; it is attempting to persuade underage children
from thinking that drinking beer makes them cool. Anheuser-Busch is exhibiting which of the
following?
a. stockholder responsibility
b. profit responsibility
c. utilitarianism
d. cause marketing
e. social responsibility

Answer: e Page(s): 88-89 LO: 3 AACSB: Ethics QD: Medium


Rationale: Social responsibility is the view that organizations are part of a larger society and are
accountable to that society for their actions.

4-5 CHAPTER OPENER: ANHEUSER-BUSCH APPLICATION

Anheuser-Busch’s commitment preserving the natural environment caused Fortune magazine to


rank it among the top companies for __________.
a. utilitarianism
b. social responsibility
c. moral idealism
d. green marketing
e. cause marketing

Answer: b Page(s): 88-89 LO: 3 AACSB: Ethics QD: Hard


Rationale: Anheuser-Busch’s efforts to preserve the environment reflect its broader social
responsibility, which was recognized by Fortune magazine.

4-6 CHAPTER OPENER: ANHEUSER-BUSCH APPLICATION

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.

Answer: a Page(s): 88-89 LO: 3 AACSB: Ethics QD: Hard

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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.

4-7 ETHICS KNOWLEDGE

Ethics refers to the


a. religious tenets of a country or ethnic region that shape its culture.
b. social norms of a nation, community, or family.
c. society’s values and standards that are enforceable in the courts.
d. moral principles and values that govern the actions and decisions of an individual or group.
e. universal laws of man that go beyond individual or a group’s beliefs of nations or religions.

Answer: d Page(s): 90 LO: 1 AACSB: Ethics QD: Easy


Rationale: Key term definition—ethics.

4-8 ETHICS KNOWLEDGE

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.

Answer: c Page(s): 90 LO: 1 AACSB: Ethics QD: Easy


Rationale: Key term definition—ethics.

4-9 LAWS KNOWLEDGE

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.

Answer: b Page(s): 90 LO: 1 AACSB: Ethics QD: Easy


Rationale: Key term definition—laws.

4-10 LAWS KNOWLEDGE

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

Answer: d Page(s): 90 LO: 1 AACSB: Ethics QD: Easy


Rationale: Key term definition—laws.

4-11 ETHICAL/LEGAL FRAMEWORK IN MARKETING COMPREHENSION

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.

Answer: e Page(s): 90-91 LO: 1 AACSB: Ethics QD: Medium


Rationale: Ethics deal with personal and moral principles while laws are society’s values that are
enforceable in the courts.

4-12 ETHICAL/LEGAL FRAMEWORK IN MARKETING COMPREHENSION

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.

Answer: a Page(s): 90-91 LO: 1 AACSB: Ethics QD: Medium


Rationale: The physicians were acting ethically by trying to keep their fees down; however, the
U.S. Supreme Court ruled they were acting illegally because they were engaged in price fixing, a
behavior that is outlawed by the Sherman Act. See Figure 4-1 in the textbook.

4-13 ETHICAL/LEGAL FRAMEWORK IN MARKETING COMPREHENSION

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

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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.

Answer: d Page(s): 90-91 LO: 1 AACSB: Ethics QD: Medium


Rationale: Smoking has been found to cause cancer and death for many people. Because the
U.S. trade negotiators know this, they are acting unethically. They are acting legally because
there is no law preventing U.S. tobacco companies from marketing their products in China. See
Figure 4-1 in the textbook.

4-14 ETHICAL/LEGAL FRAMEWORK IN MARKETING APPLICATION

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.

Answer: d Page(s): 90-91 LO: 1 AACSB: Ethics QD: Hard


Rationale: Ethics are the moral principles and values that govern the actions and decisions of an
individual or group. Laws are society’s values and standards that are enforceable in the courts.
When software is purchased, the user agrees not to share the software with others. Not only is
this behavior unethical, it is also illegal. The Business Software Alliance has repeatedly run ads
denouncing software piracy. See Figure 4-1 in the textbook.

4-15 ETHICAL/LEGAL FRAMEWORK IN MARKETING APPLICATION

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.

Answer: c Page(s): 90-91 LO: 1 AACSB: Ethics QD: Hard


Rationale: Fastow pleaded guilty to two counts of wire and securities fraud, thus acting illegally.
He asked an employee to do something illegal and because of his position as her boss, the illegal
request was also unethical. See Figure 4-1 in the textbook.

4-16 ETHICAL/LEGAL FRAMEWORK IN MARKETING APPLICATION

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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.

Answer: d Page(s): 90-91 LO: 1 AACSB: Ethics QD: Hard


Rationale: The use of pay-to-vote polls is legal. However, if viewers believe the polls are
scientifically valid or statistically representative of the population, their use may be misleading,
and therefore, unethical. See Figure 4-1 in the textbook.

4-17 ETHICAL/LEGAL FRAMEWORK IN MARKETING APPLICATION

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.

Answer: e Page(s): 90-91 LO: 1 AACSB: Ethics QD: Hard


Rationale: The boycott is unethical because it inflicts damage on others needlessly. Ethics are
the moral principles and values that govern the actions and decisions of an individual or group.
They serve as guidelines on how to act rightly and justly when faced with moral dilemmas. There
are many examples of companies that have been boycotted on the basis of unfounded rumors,
causing short- and long-term harm to its stakeholders until the truth became widely known. See
Figure 4-1 in the textbook.

4-18 CURRENT PERCEPTIONS OF ETHICAL BEHAVIOR COMPREHENSION

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.

Answer: e Page(s): 91 LO: 1 AACSB: Ethics QD: Medium


Rationale: Public opinion surveys show that 58 percent of U.S. adults rate the ethical standards
of business executives as fair or poor.

4-19 CURRENT PERCEPTIONS OF ETHICAL BEHAVIOR COMPREHENSION

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

Answer: c Page(s): 91 LO: 1 AACSB: Ethics QD: Medium


Rationale: Advertising practitioners are considered to be among the least ethical occupations in
the United States.

4-20 CURRENT PERCEPTIONS OF ETHICAL BEHAVIOR COMPREHENSION

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.

Answer: e Page(s): 91 LO: 1 AACSB: Ethics QD: Medium


Rationale: The current low perception of ethical business behavior can be explained by a number
of reasons. Alternative “e” has not been shown to be the case; in fact the reverse may be true.

4-21 ETHICAL MARKETING BEHAVIOR COMPREHENSION

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

Answer: b Page(s): 91-92 LO: 2 AACSB: Ethics QD: Medium


Rationale: Figure 4-2 in the textbook shows a framework with three influences that can have an
effect on one’s personal moral philosophy and ethical marketing behavior. These include societal

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culture and norms, business culture and industry practices, and corporate culture and
expectations.

4-22 ETHICAL MARKETING BEHAVIOR COMPREHENSION

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

Answer: b Page(s): 91-92 LO: 2 AACSB: Ethics QD: Medium


Rationale: Figure 4-2 in the textbook shows a framework with three influences that can have an
effect on one’s personal moral philosophy and ethical marketing behavior. These include societal
culture and norms, business culture and industry practices, and corporate culture and
expectations.

4-23 ETHICAL MARKETING BEHAVIOR COMPREHENSION

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

Answer: e Page(s): 91-92 LO: 2 AACSB: Ethics QD: Medium


Rationale: Figure 4-2 in the textbook shows a framework with three influences that can have an
effect on one’s personal moral philosophy and ethical marketing behavior. These include societal
culture and norms, business culture and industry practices, and corporate culture and
expectations.

4-24 ETHICAL MARKETING BEHAVIOR COMPREHENSION

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

Answer: b Page(s): 91-92 LO: 2 AACSB: Ethics QD: Medium


Rationale: Figure 4-2 in the textbook shows a framework with three influences that can have an
effect on one’s personal moral philosophy and ethical marketing behavior. These include societal
culture and norms, business culture and industry practices, and corporate culture and
expectations.

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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.

Answer: a Page(s): 91 LO: 2 AACSB: Ethics QD: Easy


Rationale: Text term definition—culture.

4-26 CULTURE KNOWLEDGE

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

Answer: d Page(s): 91 LO: 2 AACSB: Ethics QD: Easy


Rationale: Text term definition—culture.

4-27 CULTURE KNOWLEDGE

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.

Answer: e Page(s): 91 LO: 2 AACSB: Ethics QD: Easy


Rationale: Text term definition—culture.

4-28 CULTURE COMPREHENSION

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

Answer: d Page(s): 91 LO: 2 AACSB: Ethics QD: Medium


Rationale: Culture refers to the set of values, ideas, and attitudes that are learned and shared
among members of a group and serves as a socializing force that dictates what is morally right
and just.

4-29 CULTURE COMPREHENSION

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

Answer: a Page(s): 91-92 LO: 2 AACSB: Ethics QD: Medium


Rationale: Moral standards are relative to particular societies. These standards often reflect the
laws and regulations that affect social and economic behavior, which can create ethical dilemmas.

4-30 SOCIETAL CULTURE AND NORMS KNOWLEDGE

Copyrights, trademarks, and patents are


a. public goods.
b. intellectual property.
c. rights granted to individuals or organizations by the WTO for a period of five years.
d. limited to books, music, and software.
e. subject to ISO 14000 requirements.

Answer: b Page(s): 92 LO: 2 AACSB: Ethics QD: Easy


Rationale: Copyrights, trademarks, and patents are intellectual property. Unauthorized use,
reproduction, or distribution of intellectual property is illegal in the United States and most
countries.

4-31 SOCIETAL CULTURE AND NORMS APPLICATION

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.

Answer: c Page(s): 92 LO: 2 AACSB: Ethics QD: Hard

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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.

4-32 SOCIETAL CULTURE AND NORMS APPLICATION

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

Answer: e Page(s): 91-92 LO: 2 AACSB: Ethics QD: Hard


Rationale: Differences in societal culture and norms affect the view of ethical behavior held in
both the U.S., where infringing on intellectual property is illegal, and in China, where it is legal.

4-33 SOCIETAL CULTURE AND NORMS APPLICATION

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

Answer: c Page(s): 91-92 LO: 2 AACSB: Ethics QD: Hard


Rationale: 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. This means that moral standards, like the right to privacy, are relative to
particular societies.

4-34 SOCIETAL CULTURE AND NORMS APPLICATION

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

Answer: d Page(s): 91-92 LO: 2 AACSB: Ethics QD: Hard


Rationale: In China, counterfeiting is viewed as a profitable way of doing business. An
international company doing business there must be vigilant in understanding China’s societal
culture and norms.

4-35 BUSINESS CULTURE KNOWLEDGE

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.

Answer: c Page(s): 92 LO: 2 AACSB: Ethics QD: Easy


Rationale: Text term definition—business cultures.

4-36 BUSINESS CULTURE COMPREHENSION

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.

Answer: a Page(s): 92 LO: 2 AACSB: Ethics QD: Medium


Rationale: Business cultures comprise the effective rules of the game, the boundaries between
competitive and unethical behavior, and the codes of conduct in business dealings. Business
culture affects ethical conduct both in the exchange relationship between sellers and buyers and in
the competitive behavior among sellers.

4-37 ETHICS OF EXCHANGE COMPREHENSION

Ethical exchanges between sellers and buyers should result in


a. the seller making a profit at the expense of the buyer.
b. the buyer getting the product for the best price at the expense of the seller.

- 15 -
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Vertigo in,

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from caries of spinal vertebræ,

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from hysteria,

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from metallic and infectious diseases,

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from spinal congestion, hemorrhage, and meningitis,

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localization of spinal tumors,

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Pathology,

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characters, seat, and varieties of tumors,

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vascular changes,

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Symptoms,

1091

Ataxia and atrophy in,

1094
Bladder, urinary and sexual disorders,

1096

Eye disorders,

1096

Headache in,

1096

Mental disturbances in,

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Pain, seat and characters,

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Paralysis and paresis,

1091-1093
Reflexes, altered in,

1094

Sensation, alterations of,

1091-1093

Sense of constriction about waist,

1091-1093

Spasms and twitchings in,

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1092

1094

Temperature of body in,

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Vomiting in,
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Treatment,

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Tumors, phantom, in hysteria,

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Turpentine, use of, in neuralgia,

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Tympanites, hysterical,

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Typhoid fever as a cause of abscess of the brain,

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of anæmia of the brain,

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Typhus fever as a cause of hyperæmia of the brain,

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Ulcer of foot in tabes dorsalis,

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Ulcerations in nervous diseases,

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Ulcers, perforating, of the foot,

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Unconsciousness, in cerebral meningeal hemorrhage,

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Unilateral catalepsy, symptoms,

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epilepsy,

482

facial atrophy, progressive,

693

preponderance of symptoms in cerebral anæmia,

784
spinal paralysis,

1165

Urine, state of, in brain tumors,

1045

in cerebral hemorrhage and hemiplegia,

961

in chronic lead-poisoning,

682

in epilepsy,

480

in general paralysis of the insane,

195

in hysteria,
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in myxœdema,

1272

in neuralgia,

1212

1213

in symmetrical gangrene,

1260

in tabes dorsalis,

835

in the chloral habit,

662

in the opium habit,


654

658

659

Uterine and ovarian irritation as a cause of reflex paralysis,

807

Uterus and ovaries, neuralgia of,

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Vaginismus, hysterical,

246
Valleix's painful points in migraine,

408

Varieties of hystero-epilepsy,

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Vaso-constrictors, action of,

1243

Vaso-dilators, action of,

1244

Vaso-motor cerebral disturbances in general paralysis of the insane,

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disturbances in writers' cramp,

520

nerves, origin of,

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1242

Course,

1254

Diagnosis,

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1242

Medullary centres in,

1250

Origin of the vaso-motor nerves,

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Vaso-constrictors,

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Vaso-dilators,
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Vaso-motor reflexes,

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Vaso-motor tracts,

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Prognosis,

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Symptoms,

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Cutaneous angio-neuroses,

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Digiti mortui and gangrene,

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Ruptured capillaries in,

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Sensation, disturbances of,

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Reflexes,

1248

Symptoms of general paralysis of the insane,

189

Theory of pathology of hysteria,

211

Tracts of the spinal cord,

1249

Venous congestion in cerebral hyperæmia,

768

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