Deck 20: Sustainable Marketing: Social Responsibility and Ethics

Question 1

Critics charge that intermediaries ________.

A) are too few in number
B) are inefficient
C) provide only necessary services
D) underprice their services
E) are too competitive

Answer 1

B

Question 2

Deceptive practices fall into three groups: pricing, promotion, and ________.

A) product
B) placement
C) packaging
D) publicity
E) service

Answer 2

C

Question 3

Deceptive promotion includes practices such as misrepresenting the product's ________.

A) price or packaging
B) features or performance
C) size or quantity
D) wholesale or retail price
E) packaged contents

Answer 3

B

Question 4

Critics charge that promotion adds only ________ to a product.

A) functional value
B) psychological value
C) moderate value
D) strategic value
E) qualitative value

Question 5

Briefly define the four marketing concepts.

Question 6

Sustainable marketing calls for meeting the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs.

Question 7

Marketers respond to charges of high advertising and promotion costs that unnecessarily increase retail prices, by arguing that advertising and promotion ________.

A) support consumerism
B) standardize the product
C) add quality to the product
D) provide information about a product
E) help increase competition in the market

Question 8

McDonald's "Plan to Win" strategy has added healthy food options to its menu, phased out traditional artery-clogging trans fats, launched a major multifaceted education campaign, and addressed environmental issues. "Plan to Win" best exemplifies the ________ concept.

A) sustainable marketing
B) direct marketing
C) mercantilism
D) strategic planning
E) consumer business

Question 9

Critics point to which of the following factors when they accuse marketing of harming consumers through high prices?

A) quotas
B) nontrade tariffs
C) excessive markups
D) government taxes
E) changes in currency values

Question 10

A long-standing charge against intermediaries is that they mark up prices beyond the ________.

A) value of their services
B) delivery charges
C) going market price
D) promotion cost
E) resale value

Question 11

The ________ concept is specifically focused on future company needs.

A) societal marketing
B) strategic planning
C) direct marketing
D) telemarketing
E) consumer business

Question 12

________ calls for meeting the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs.

A) Sustainable marketing
B) Ambush marketing
C) Consumerism
D) Environmentalism
E) Strategic planning

Question 13

Dan's Drugstore sells medicine to consumers for $20 that only cost $2 to produce. Critics accuse Dan's of ________.

A) deceptive promotion
B) deceptive packaging
C) false advertising
D) excessive markups
E) redlining

Question 14

The BeautyShop, a manufacturer of skin care products, uses only plant-based materials for its cosmetic products. It supports several environmental protection movements and movements defending human rights. This accounts for the company's efforts to build good will and corporate social responsibility. This exemplifies the ________ concept.

A) consumer business
B) strategic planning
C) consumerism
D) direct marketing
E) sustainable marketing

Question 15

Critics point out that in the stationery industry, a pen that costs fifty cents to make costs the consumer $10 to buy. This is an example of ________.

A) deceptive advertising
B) redlining
C) excessive markups
D) high-pressure selling
E) shoddy products

Question 16

The marketing concept is a philosophy of ________.

A) sales and profit maximization
B) customer value and mutual gain
C) serving short term interests over long term gains
D) serving the company's interests over the consumers'
E) promotion value and company gain

Question 17

Hart's Department Store was accused of deceptive promotion. Which of the following best explains what might have happened?

A) Hart's refused to advertise sale prices in the local paper.
B) Hart's advertised a bargain price on an out-of-stock product.
C) Hart's advertised a large price reduction from a phony high retail list price.
D) Hart's used misleading labeling on certain products.
E) Hart's exaggerated its package contents through subtle design.

Question 18

Consumer advocates, government agencies, and other critics have accused marketing of harming consumers through ________.

A) technological obsolescence
B) sales promotion tactics
C) viral marketing
D) anti-trust laws
E) planned obsolescence

Question 19

Cybertron Inc. was accused of deceptive pricing. Which of the following explains what most likely occurred?

A) Cybertron refused to advertise sale prices in the local paper.
B) Cybertron sold only defective products at the advertised price.
C) Cybertron advertised a large price reduction from a phony high retail list price.
D) Cybertron misrepresented a product's features in an ad.
E) Cybertron used misleading labeling.

Question 20

The ________ concept is specifically focused on the future welfare of consumers.

A) strategic planning
B) direct marketing
C) societal marketing
D) consumer business
E) telemarketing

Question 21

The following quote best describes ________. "The marvels of modern technology include the development of a soda can which, when discarded, will last forever, and a car, which when properly cared for, will rust out in two or three years."

A) planned obsolescence
B) product failure
C) deceptive promotions
D) deceptive packaging
E) excessive markups

Question 22

The success of the Tom Dennis Ford dealership has been built largely on return customers and word-of-mouth recommendations. The majority of sales are made to customers who previously purchased a vehicle at the dealership or who know someone who had a positive experience of purchasing a vehicle there. The sales force at the Tom Dennis Ford dealership most likely knows that using high-pressure selling is ineffective if the dealership wants to ________.

A) achieve short-term gains
B) move last year's models
C) obey local and federal law
D) build long-term customer relationships
E) maintain a database of local customers

Question 23

________ refers to the practice of continually changing consumer concepts of acceptable styles to encourage more and earlier buying.

A) Perceived obsolescence
B) Technological obsolescence
C) Bait-and-switch advertising
D) Functional obsolescence
E) High-pressure selling

Question 24

Critics claim that companies in the ________ industries introduce planned streams of new products that make older models obsolete, a form of planned obsolescence that harms consumers.

A) car and truck
B) housing and construction
C) food and beverage
D) consumer electronics
E) financial and entertainment

Question 25

The high failure rate of new products shows that companies are not able to ________.

A) control demand
B) advertise enough
C) understand international laws
D) find outlets
E) identify consumer needs

Question 26

A major step in regulating "unfair or deceptive business acts and practices" was the enactment of the ________ in 1938.

A) Robinson-Patman Act
B) Wheeler-Lea Act
C) Interstate Commerce Commissions
D) Taft-Hartley Act
E) Stamp Act

Question 27

A federal agency ordered a fast food chain to stop running ads with false claims that its fried chicken is compatible with certain weight loss programs. Which agency had the authority to issue this order?

A) the Federal Trade Commission
B) the Food and Drug Administration
C) the Consumer Product Safety Commission
D) the Environmental Protection Agency
E) the American Marketing Association

Question 28

Which of the following advertising situations would LEAST likely be considered "puffery"?

A) Mr. Clean coming to a housewife's rescue
B) instantly toned thighs and legs as a result of using the Thigh Master for only 15 minutes
C) children immediately growing into attractive adults as a result of drinking milk
D) a retired couple drinking a vitamin and protein shake and then going bicycling
E) a sleepy mom who wakes up to a gray day, drinks a cup of coffee, and then looks out her window to see golden sunshine, beautiful flowers blooming, songbirds singing, and a rainbow on the horizon

Question 29

Critics say marketing benefits ________ more than ________.

A) consumers; manufacturers
B) industry; consumers
C) stores; manufacturers
D) exporters; importers
E) independent sellers; chain stores

Question 30

Recently, a class-action lawsuit was brought against BigBurger, a fast food chain, charging that its food has contributed to the nationwide obesity epidemic. The suit was eventually dismissed, but many critics continue to point out the health dangers of typical "fast food" menu items. These critics are most likely concerned that the fast food industry has used ________.

A) high-pressure selling
B) deceptive promotions
C) deceptive pricing
D) deceptive packaging
E) harmful products

Question 31

How do marketers respond to charges of planned obsolescence?

A) Consumers dislike constant style changes.
B) It promotes the all-American value of consumerism.
C) The product will eventually wear out anyway.
D) Most consumers are materialistic.
E) Consumers get tired of old goods.

Question 32

When critics argue that insurance, real estate, and used cars are sold, not bought, they are accusing marketers of ________.

A) deceptive promotions
B) excessive markups
C) high-pressure selling
D) shoddy products
E) excessive materialism

Question 33

When major chain retailers avoid placing stores in disadvantaged neighborhoods, they are likely to be accused of the discriminatory practice of ________.

A) embargo
B) licensing
C) redlining
D) puffery
E) scrambled merchandising

Question 34

________ involves persuading people to buy goods they had no thought of buying.

A) Sustainable marketing
B) High-pressure selling
C) Strategic marketing
D) Redlining
E) Reverse redlining

Question 35

In which of the following scenarios would high-pressure selling tactics typically be most advantageous for marketers?

A) selling situations with long-time customers
B) selling situations with new customers with a high likelihood of becoming repeat customers
C) selling situations with a company's most highly valued customers
D) selling situations with one-time customers
E) selling situations with dissatisfied customers

Question 36

In advertising, "puffery" is a term that refers to ________.

A) a straightforward promotional message
B) innocent exaggeration for effect
C) hidden advertising messages to consumers
D) subliminal appeals to consumers
E) value-added promotions

Question 37

Trendy Teens manufactures fashionable clothing and accessories for the tween and teen female markets. New merchandise with a very different look is rolled out each season and heavily promoted as the "must-have" style in a variety of media. This information indicates that Trendy Teens is most likely to be criticized for ________.

A) deceptive promotions
B) shoddy products
C) high-pressure selling
D) poor service to disadvantaged consumers
E) perceived obsolescence

Question 38

It is most accurate to say that the recession of 2008/2009 has resulted in ________.

A) an overselling of private goods
B) a disbelief in the American dream
C) a decline in conspicuous spending
D) an increase in materialism
E) the elimination of false wants

Question 39

Critics have accused some producers of practicing ________ by using materials and components that will break, wear, rust, or rot sooner than they should.

A) high-pressure selling
B) short-term planning
C) planned obsolescence
D) nonfunctional warranty
E) deceptive promotion

Question 40

Marketers are most effective when they appeal to ________ rather than when they ________.

A) short-term needs; focus on long-term needs
B) teenagers; target older people
C) existing wants; attempt to create new ones
D) emotions; appeal to actual needs
E) the mass market; appeal to market segments

Question 41

Refer to the scenario below to answer the following question(s).
Bryant and Anne are the owners of the Good Green Grocer, a small but successful chain of organic food stores. The organic food sold by Good Green Grocer is of good quality. Also, it is tasty and has long-term health benefits. Bryant and Anne's business has expanded as more and more consumers are interested in eating organic foods. What started as one shop in Vermont has expanded to 15 stores in Vermont, New Hampshire, Massachusetts, and Maine. Much to their delight, Bryant and Ann have found that many people are willing to pay a bit more for food that is organically grown.
Sunday ads for the Good Green Grocer run in area newspapers, with special promotional prices offered for a list of the "Top Ten Take Homes" each week. Regular customers of the Good Green Grocer know that the promotional items often run out of stock by mid-week, so the store typically sees its heaviest traffic on Sunday and Monday.
Consumers can never buy functional versions of highly promoted branded products at lower prices.

Question 42

Refer to the scenario below to answer the following question(s).
Bryant and Anne are the owners of the Good Green Grocer, a small but successful chain of organic food stores. The organic food sold by Good Green Grocer is of good quality. Also, it is tasty and has long-term health benefits. Bryant and Anne's business has expanded as more and more consumers are interested in eating organic foods. What started as one shop in Vermont has expanded to 15 stores in Vermont, New Hampshire, Massachusetts, and Maine. Much to their delight, Bryant and Ann have found that many people are willing to pay a bit more for food that is organically grown.
Sunday ads for the Good Green Grocer run in area newspapers, with special promotional prices offered for a list of the "Top Ten Take Homes" each week. Regular customers of the Good Green Grocer know that the promotional items often run out of stock by mid-week, so the store typically sees its heaviest traffic on Sunday and Monday.
The major criticisms of marketing include harming consumers through high prices, deceptive practices, high-pressure selling, shoddy or unsafe products, planned obsolescence, and poor service to disadvantaged countries.

Question 43

How are acquisitions good for society?

A) Acquisitions eliminate barriers to entry.
B) Acquisitions require little government oversight.
C) An acquiring company may improve the efficiency of an acquired company.
D) An industry may become less competitive after an acquisition.
E) The acquisition may result in higher costs, leading to higher prices for consumers.

Question 44

Refer to the scenario below to answer the following question(s).
Bryant and Anne are the owners of the Good Green Grocer, a small but successful chain of organic food stores. The organic food sold by Good Green Grocer is of good quality. Also, it is tasty and has long-term health benefits. Bryant and Anne's business has expanded as more and more consumers are interested in eating organic foods. What started as one shop in Vermont has expanded to 15 stores in Vermont, New Hampshire, Massachusetts, and Maine. Much to their delight, Bryant and Ann have found that many people are willing to pay a bit more for food that is organically grown.
Sunday ads for the Good Green Grocer run in area newspapers, with special promotional prices offered for a list of the "Top Ten Take Homes" each week. Regular customers of the Good Green Grocer know that the promotional items often run out of stock by mid-week, so the store typically sees its heaviest traffic on Sunday and Monday.
Brand name products give buyers assurances of consistent quality.

Question 45

Karl Harris, a marketing critic, is concerned about the pervasiveness of marketing. He points out that advertising messages are everywhere, from Web sites and e-mails to unwanted direct mail and catalogs to television commercials and product tie-ins to billboards and store signage. Karl is concerned about ________.

A) high packaging costs
B) cultural pollution
C) deceptive practices
D) false wants and too much materialism
E) the balance between private goods and social goods

Question 46

Marketers are the least effective when they appeal to existing wants rather than when they attempt to create new ones.

Question 47

The overselling of private goods results in ________.

A) cultural pollution
B) misdirected funding
C) social costs
D) materialism
E) opportunity expenses

Question 48

Which of the following is an example of cultural pollution?

A) gasoline shortages
B) congestion tolls
C) street signs in cities
D) overpasses in suburban areas
E) billboards marring beautiful scenery

Question 49

Critics of marketing view consumer interest in material things as a natural state of mind rather than as a matter of false wants created by marketing.

Question 50

Critics claim that firms are harmed and competition is reduced when companies expand by ________.

A) developing their own new products
B) diversifying into new industries
C) acquiring competitors
D) developing new markets
E) initiating joint ventures

Question 51

In response to charges of ________, marketers point out that because of ads, many television and radio sites are free to users and also keep down the cost of magazines and newspapers.

A) deceptive pricing
B) creating false wants
C) creating materialism
D) high promotion costs
E) cultural pollution

Question 52

Which of the following leads to cultural pollution?

A) commercial noise
B) air pollution
C) language barriers
D) inflation
E) redlining

Question 53

Critics argue that large marketing companies use patents and heavy promotion spending to ________.

A) acquire smaller companies
B) bear the social costs of their operations
C) bar new companies from entering an industry
D) achieve economies of scale
E) offset cultural pollution

Question 54

Though marketers may make long-term gains with high-pressure selling tactics, this approach can do serious damage to short-term customer relationships.

Question 55

TerraPass is a company that offers consumers the opportunity to buy carbon offsets, which are contributions to projects that combat global warming by reducing carbon emissions. TerraPass offers contribution packages for driving, flying, and home energy use. Through TerraPass, consumers can pay some of the ________ costs of their private goods and services.

A) promotional
B) safety
C) health
D) distribution
E) social

Question 56

Which of the following is one of the social costs associated with cars?

A) traffic congestion
B) water pollution
C) new highways
D) new automobile models
E) cleaner roads

Question 57

The American marketing system never has been accused of poorly serving disadvantaged consumers.

Question 58

Perceived obsolescence involves continually changing consumer concepts of acceptable styles to encourage more and earlier buying.

Question 59

Refer to the scenario below to answer the following question(s).
Bryant and Anne are the owners of the Good Green Grocer, a small but successful chain of organic food stores. The organic food sold by Good Green Grocer is of good quality. Also, it is tasty and has long-term health benefits. Bryant and Anne's business has expanded as more and more consumers are interested in eating organic foods. What started as one shop in Vermont has expanded to 15 stores in Vermont, New Hampshire, Massachusetts, and Maine. Much to their delight, Bryant and Ann have found that many people are willing to pay a bit more for food that is organically grown.
Sunday ads for the Good Green Grocer run in area newspapers, with special promotional prices offered for a list of the "Top Ten Take Homes" each week. Regular customers of the Good Green Grocer know that the promotional items often run out of stock by mid-week, so the store typically sees its heaviest traffic on Sunday and Monday.
Some customers believe that the Good Green Grocer purposefully runs weekly promotional prices on items that are low in stock, leaving most customers who come to the store hoping for lower prices but unable to buy the out-of-stock sale items. If this were true, then the Good Green Grocer would most likely be accused of ________.

A) using puffery
B) deceptive pricing
C) deceptive promotions
D) deceptive packaging
E) green washing

Question 60

Setting prices below cost, threatening to cut off business with suppliers, and discouraging the purchase of a competitor's products are all examples of ________.

A) oligopolistic competition
B) social costs
C) predatory competition
D) acquisitions
E) cultural pollution

Question 61

Consumer advocates call for additional consumer rights, including ________.

A) the right to be protected from unwanted marketing messages
B) the right to be well informed about important product aspects
C) the right not to pay any taxes included in the final price
D) the right to resell the product
E) the right to exchange the product if it is of the wrong size or style

Question 62

Proposals related to ________ include controlling the ingredients that go into certain products and packaging as well as reducing the level of advertising "noise."

A) the right to be informed
B) consumer protection
C) preserving the world for future consumption
D) the right to charge any price for the product
E) quality of life

Question 63

Explain the practice of redlining and why it is criticized.

Question 64

How do marketers respond to charges of "commercial noise"?

Question 65

The proposed right to ________ includes the right to know the unit pricing, the ingredients in a product, the nutritional value of foods, product freshness, and the true benefits of a product.

A) charge any price for the product
B) be protected against questionable products
C) influence products and marketing practices in ways that will improve "quality of life"
D) expect the product to perform as claimed
E) be well informed about a product

Question 66

Discuss the ways in which critics accuse marketing of harming the consumer.

Question 67

Which of the following is a traditional buyers' right?

A) the right to resell the product
B) the right not to buy a product that is offered for sale
C) the right not to pay any taxes included in the final price
D) the right to exchange the product if it is of the wrong size or style
E) the right to demand a discount on the product

Question 68

Why might salespeople use high-pressure selling tactics that do not lead to long-term relationships with customers?

Question 69

Explain how marketers and marketing critics disagree about the psychological value of advertising.

Question 70

How do marketers respond to critics' accusations of planned obsolescence?

Question 71

What are the various risks a company takes when producing shoddy, harmful, or unsafe products?

Question 72

Identify the social costs of increased automobile ownership, and then describe two options for restoring the balance between private and public goods. Give specific examples.

Question 73

Describe and compare the three different categories of deceptive marketing practices.

Question 74

________ is an organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers.

A) Environmentalism
B) Protectionism
C) Liberalism
D) Consumerism
E) Capitalism

Question 75

What is meant by cultural pollution? Give two examples.

Question 76

The two major citizen movements to keep businesses in line are environmentalism and ________.

A) consumerism
B) protectionism
C) liberalism
D) capitalism
E) materialism

Question 77

How do resellers answer criticism of the high costs of distribution?

Question 78

Explain why most marketers avoid deceptive practices.

Question 79

Why are critics concerned about companies acquiring competitors?

Question 80

Which of the following is a traditional sellers' right?

A) the right to create a monopoly in the market
B) the right to acquire competitors to prevent competition
C) the right to promote any product to any audience
D) the right to add additional taxes if necessary
E) the right to introduce any product in any size and style