Deck 20: Sustainable Marketing: Social Responsibility and Ethics

Question 1

The American Marketing Association (AMA)has created a code of ethics that includes all of the following ethical values EXCEPT .

A)respect
B)honesty
C)competitiveness
D)fairness
E)transparency

Answer 1

C

Question 2

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)barriers to entering a market
B)acquisitions
C)excessive materialism
D)predatory competition
E)routine competition

Answer 2

D

Question 3

Many critics charge that the American marketing system causes to be higher than they would be under more "sensible" systems.

A)imports
B)employee morals
C)prices
D)exports
E)product safety measures

Answer 3

C

Question 4

Companies must decide what principle they should use as a guide on issues of ethics and social responsibility.All of the following are common philosophies to accomplish this end EXCEPT which one?

A)Let individual managers decide.
B)Let individual companies decide.
C)Let the free market decide.
D)Let society decide.
E)Let the legal system decide.

Question 5

Dan's Drugstore sells consumers medicine for twenty dollars that only costs two dollars to make.The store is guilty of .

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

Question 6

Some firms define their purpose in narrow product terms.Others that define their purpose in broad social terms follow .

A)consumerism
B)consumer- oriented marketing
C)societal marketing
D)customer- value marketing
E)sense- of- mission marketing

Question 7

When critics claim that insurance,real estate,and used cars are sold,not bought,they are making accusations of the use of .

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

Question 8

Xerox Corporation's Equipment Remanufacture and Parts Reuse Program converts end- of- life office equipment into new products and parts.This not only helps sustain the environment,but it is also highly profitable for the company.Such a practice is known as .

A)design for environment (DFE)
B)green marketing
C)new environmental technology
D)a sustainability vision
E)pollution prevention

Question 9

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

A)children immediately growing into attractive adults as a result of drinking milk
B)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
C)instantly toned thighs and legs as a result of using the Thigh Master for only 15 minutes
D)a retired couple drinking a vitamin and protein shake and then going bicycling
E)Mr.Clean coming to a housewife's rescue

Question 10

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

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

Question 11

In response to charges of ,marketers point out that advertising makes much of television and radio free to users and also keeps down the cost of magazines and newspapers.

A)too few private goods
B)creating false wants
C)cultural pollution
D)high promotion costs
E)creating too much materialism

Question 12

Environmentalists assert that the marketing system's goal should be to maximize .

A)life quality
B)consumer choice
C)consumer satisfaction
D)consumer protection
E)consumption

Question 13

Large marketing companies can use patents and heavy promotion spending to .

A)offset cultural pollution
B)set up barriers for others wanting to enter the industry
C)acquire smaller companies
D)achieve economies of scale
E)bear the social costs of their operations

Question 14

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 which concept?

A)marketing concept
B)strategic planning concept
C)societal marketing concept
D)consumer business concept
E)sustainable marketing concept

Question 15

All of the following are concepts that define the needs of consumers and/or businesses EXCEPT which one?

A)societal marketing concept
B)strategic planning concept
C)consumer business concept
D)sustainable marketing concept
E)marketing concept

Question 16

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

Question 17

persuades people to buy goods they had no thought of buying.

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

Question 18

Companies can develop ,which serves as a guide to the future.It shows how the company's products and services,processes,and policies must evolve and what new technologies must be developed to get there.

A)new clean technology
B)a sustainability vision
C)a cradle- to- cradle practice
D)product stewardship
E)pollution prevention

Question 19

Companies emphasizing are developing "green marketing" programs that develop ecologically safer products,recyclable and biodegradable packaging,more energy- efficient operations,and better pollution controls.

A)product stewardship
B)new clean technology
C)pollution prevention
D)sustainability vision
E)"beyond greening"

Question 20

The is specifically focused on the future welfare of consumers.

A)sustainable marketing concept
B)consumer business concept
C)societal marketing concept
D)marketing concept
E)strategic planning concept

Question 21

It is most accurate to say that recent recession has resulted in which of the following?

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

Question 22

A company that produces and heavily markets cigarettes,with many promotions aimed at young (although legal age)nonsmokers,most likely follows which of the following as a guiding principle?

A)the philosophy of environmentalism
B)the philosophy that companies can do in good conscience whatever the market and legal systems allow
C)the philosophy that companies should have a social conscience
D)the philosophy of consumerism
E)the philosophy of consumer- oriented marketing

Question 23

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

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

Question 24

Critics of the American economic marketing system have charged that marketers have created a culture in which people are judged by what they .

A)are
B)own
C)do
D)avoid
E)eat

Question 25

The in the United States came about because of concern for the loss of the atmosphere's ozone layer,toxic waste,litter,and the damage caused by strip mining and forest depletion.

A)second wave of modern environmentalism
B)current wave of environmentalism
C)second wave of consumerism
D)first wave of modern environmentalism
E)first wave of enlightened marketing

Question 26

All of the following are potential advantages of acquisition EXCEPT which one?

A)Acquisitions require little government oversight.
B)The acquisition may result in lower costs,leading to lower prices for consumers.
C)An acquiring company may improve the efficiency of an acquired company.
D)An industry might become more competitive after an acquisition.
E)The acquiring company can gain economies of scale.

Question 27

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.Trendy Teens could most easily be criticized for which of the following?

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

Question 28

products give both high immediate satisfaction and high long- run benefits.

A)Pleasing
B)Threatening
C)Desirable
D)Salutary
E)Deficient

Question 29

A heavily promoted brand of flu medicine sells for much more than a virtually identical store- brand product.Critics would likely charge that promotion for the branded flu medicine adds only _ _ to the product rather than functional value.

A)consistency
B)strength
C)informational value
D)quality
E)psychological value

Question 30

Karl Lagaros,a marketing critic,is concerned about the pervasiveness of marketing.He points to advertising messages 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)the balance between private goods and social goods
B)deceptive practices
C)high packaging costs
D)false wants and too much materialism
E)cultural pollution

Question 31

Dales Drugstore sells cough medicine that is sour and ineffective.This is an example of a product.

A)societal
B)deficient
C)salutary
D)pleasing
E)desirable

Question 32

Consumer advocates call for all of the following additional consumer rights EXCEPT .

A)the right to be well informed about important product aspects
B)the right to be protected from unwanted marketing messages
C)the right to influence products in ways that will improve the quality of life
D)the right to be protected against questionable products and marketing practices
E)the right to influence marketing practices in ways that will improve the quality of life

Question 33

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

A)The Bill of Rights
B)Environmentalism
C)Consumerism
D)Grassroots politics
E)The Human Relations Movement

Question 34

Dove wanted to do more than just sell its beauty care products.The company was on a quest to discover "real beauty" and help women be happy just the way they are.As a result,the Dove Campaign for Real Beauty was successfully launched in 2004.Dove was practicing which type of marketing?

A)social
B)consumer- oriented
C)innovative
D)customer- value
E)sense- of- mission

Question 35

Critics have charged that some companies intentionally manufacture their products with materials or components that cause the product to need to be replaced before it actually should need replacement.What is this called?

A)nonfunctional warranty
B)product failure
C)planned obsolescence
D)short- term planning
E)expressed dissatisfaction

Question 36

Examples of pleasing products include .

A)dental services and medications
B)cigarettes and junk food
C)bicycle helmets and elbow pads
D)seat belts and air bags
E)fruits and vegetables

Question 37

Several companies,some of them operating through the Internet,offer "paycheck advances." Consumers are encouraged to take out a loan against a paycheck they expect to receive in the near future.These short- term loans with high- interest rates,and high penalties for late payments,are often marketed to consumers who do not have traditional bank accounts.These companies could most easily be criticized for which of the following?

A)shoddy products
B)high- pressure selling
C)poor service to disadvantaged consumers
D)excessive markups
E)high advertising and promotion costs

Question 38

Critics say marketing is seen as benefiting _ more than .

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

Question 39

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

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

Question 40

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 have purchased a vehicle at the dealership before or who know someone who had a positive experience purchasing a vehicle there.The sales force at the Tom Dennis Ford dealership most likely knows that using high- pressure selling does not work if the dealership wants to .

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

Question 41

Deceptive practices fall into three groups: deceptive ,deceptive ,and deceptive .

A)pricing;promotion;packaging
B)packaging;product;promotion
C)product;packaging;placement
D)product;pricing;promotion
E)pricing;promotion;placement

Question 42

Deceptive promotion differs from deceptive pricing in that deceptive promotion overstates the product's or _ .

A)true price;performance
B)features;performance
C)brand;package contents
D)packaging;costs
E)availability;package contents

Question 43

is a management approach that involves developing strategies that both sustain the environment and produce profits for the company.

A)Environmental sustainability
B)Ethical decision making
C)New clean technology
D)Social responsibility
E)Consumerism

Question 44

As international trade barriers come down and global markets expand,environmental issues are having impact on international trade.

A)a decreased
B)a neutral
C)a uniform
D)a stabilizing
E)a greater

Question 45

In societal marketing,the ideal goal for companies is to turn all of their products into ones.

A)salutary
B)durable
C)pleasing
D)serviceable
E)desirable

Question 46

The challenge for makers of which type of product is to add long- run benefits without reducing the product's pleasing qualities?

A)pleasing
B)desirable
C)deficient
D)salutary
E)durable

Question 47

The is specifically focused on future company needs.

A)marketing concept
B)consumer business concept
C)strategic planning concept
D)societal marketing concept
E)sustainable marketing concept

Question 48

Which of the following is the best example of a desirable product?

A)junk food
B)dental insurance
C)cigarettes
D)healthy and delicious breakfast food
E)effective but bad- tasting medicine

Question 49

is an organized movement of concerned citizens,businesses,and government agencies to protect and improve people's living environment.

A)Consumerism
B)Environmentalism
C)Social responsibility
D)Sense- of- mission marketing
E)Enlightened marketing

Question 50

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

A)influence products and marketing practices in ways that will improve the "quality of life"
B)be protected against questionable marketing practices
C)not buy a product that is offered for sale
D)expect the product to perform as claimed
E)be well informed about important aspects of the product

Question 51

Proposals related to the consumer's right to be informed include knowing all of the following EXCEPT _ .

A)product safety
B)ingredient labeling
C)unit pricing
D)product freshness (open dating)
E)nutritional labeling

Question 52

All of the following are choices for internal and external "greening" and "beyond greening" activities EXCEPT .

A)product stewardship
B)new clean technology
C)sustainability vision
D)pollution prevention
E)consumerism

Question 53

Jacob Engineering Group views and organizes its marketing activities from the viewpoint of its buyers.Management works hard to sense,serve,and satisfy the needs of its well- defined group of buyers.What does Jacob Engineering Group practice?

A)customer- value marketing
B)innovative marketing
C)sense- of- mission marketing
D)societal marketing
E)consumer- oriented marketing

Question 54

Albatross Enterprises was accused of deceptive pricing.Which of the following explains what might have happened?

A)Albatross used misleading labeling.
B)Albatross advertised a large price reduction from a phony high retail list price.
C)Albatross lured customers to the store for a bargain that is out of stock.
D)Albatross refused to advertise sale prices in the local paper.
E)Albatross misrepresented a product's features in an ad.

Question 55

Critics claim that mortgage lenders used .Instead of staying away from people in poor urban areas,they targeted and exploited them by steering them toward subprime loans even though many qualified for safer fixed- rate loans.

A)licensing
B)reverse redlining
C)puffery
D)redlining
E)the push strategy

Question 56

All of the following are sustainable marketing principles EXCEPT .

A)societal marketing
B)innovative marketing
C)consumer- oriented marketing
D)value marketing
E)customer- value marketing

Question 57

For cars,"social costs" include all of the following EXCEPT .

A)gasoline shortages
B)traffic accidents
C)traffic congestion
D)air pollution
E)congestion tolls

Question 58

Monica Carey is a conscientious marketing manager.Sometimes it is unclear what decisions to make when she and her staff are faced with moral dilemmas.Monica and other managers could create broad guidelines that everyone in the organization must follow in the form of _ .

A)a company mission statement
B)a company vision statement
C)a company value statement
D)a financial statement
E)corporate marketing ethics policies

Question 59

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

A)advertise enough
B)identify consumer needs
C)find manufacturers
D)control demand
E)find outlets

Question 60

Refer to the scenario below to answer the following questions.
Bryant and Aniyah Small are the owners of the Good Green Grocer,a small but successful chain of natural food and health stores.Bryant and Aniyah'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 college towns throughout Vermont,New Hampshire,Massachusetts,and Maine.Much to their delight,the Smalls have found that many people are willing to pay a bit more for food that is organically grown.
Bryant and Aniyah want the Good Green Grocer to be associated with environmental responsibility,so they offer discounts to customers who bring their own reusable shopping bags and take measures to reduce the company's carbon footprint.They even hold environmental workshops in their stores,with topics ranging from organic farming and composting to at- home energy conservation.
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 is true,then the Good Green Grocer would most likely be accused of _ .

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

Question 61

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

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

Question 62

Critics point out that in the drug industry,a pill that costs five cents to make may cost the consumer $2 to buy.This is an example of which of the following?

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

Question 63

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

A)innovation
B)interstate commerce
C)antimonopoly legislation
D)protectionism
E)consumerism

Question 64

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

A)redlining
B)scrambling merchandise
C)puffery
D)licensing
E)embargo

Question 65

All of the following are components of "green marketing" EXCEPT .

A)making ecologically safer products
B)pollution controls
C)recycling
D)cradle- to- cradle practices
E)biodegradability

Question 66

A company that makes products that give high immediate satisfaction but may hurt consumers in the long run makes products.

A)deficient
B)threatening
C)pleasing
D)salutary
E)desirable

Question 67

What are deficient products?

A)products that have low appeal but may benefit consumers in the long run
B)products that have neither immediate appeal nor long- run benefits
C)products in the decline stage of the product life cycle
D)products that are either unsafe or inferior
E)products that give high immediate satisfaction but only hurt consumers in the long run

Question 68

Critics who believe that the American marketing system poorly serves disadvantaged consumers claim that the pay more for inferior goods because their shopping options are limited.

A)uneducated
B)urban poor
C)rural middle class
D)suburban middle class
E)wealthy

Question 69

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)excessive markups
D)deceptive packaging
E)deceptive promotions

Question 70

All of the following are traditional sellers' rights EXCEPT _ _.

A)the right to use any buying incentive programs,provided they are not unfair
B)the right to charge any price for the product
C)the right to promote any product to any audience
D)the right to introduce any product in any size and style,provided it is not hazardous
E)the right to spend any amount to promote the product,provided it does not involve unfair competition

Question 71

Recently,a class- action lawsuit was brought against McDonald's,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 concerned that the fast food industry has used .

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

Question 72

Refer to the scenario below to answer the following questions.
Bryant and Aniyah Small are the owners of the Good Green Grocer,a small but successful chain of natural food and health stores.Bryant and Aniyah'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 college towns throughout Vermont,New Hampshire,Massachusetts,and Maine.Much to their delight,the Smalls have found that many people are willing to pay a bit more for food that is organically grown.
Bryant and Aniyah want the Good Green Grocer to be associated with environmental responsibility,so they offer discounts to customers who bring their own reusable shopping bags and take measures to reduce the company's carbon footprint.They even hold environmental workshops in their stores,with topics ranging from organic farming and composting to at- home energy conservation.
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.
Which of the following actions,if taken,would violate the AMA's Code of Ethics?

A)the Good Green Grocer lowering prices in order to better compete with larger supermarkets
B)the Good Green Grocer advertising that its products will help people "feel healthy"
C)the Good Green Grocer labeling as "organic" products that were grown using pesticides
D)the Good Green Grocer raising its prices on its popular items
E)the Good Green Grocer contributing a percentage of its profits to NGOs

Question 73

Marketers respond to charges of high advertising and promotion costs that unnecessarily increase retail prices by arguing all of the following factors EXCEPT which one?

A)Advertising and promotion adds value by informing potential buyers of the availability and merits of a brand.
B)Advertising and promotion make consumers feel wealthy.
C)Advertising and promotion adds quality to the product.
D)Advertising and promotion make consumers feel attractive.
E)Advertising and promotion is necessary for a firm to match competitors' efforts.

Question 74

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

A)exciting new inventions;use old ones
B)existing wants;attempt to create new ones
C)the mass market;appeal to market segments
D)emotions;appeal to actual needs
E)teenagers;target older people

Question 75

After Sony and Microsoft kicked the Mario out of Nintendo's GameCube in the Video Game War of 2001,the smallest of the three game platform makers needed a new plan.The resulting Wii system,with its intuitive motion- sensitive controller and interactive games,appealed not only to teen boys but also to their sisters,moms,dads,and even grandparents.The system immediately outsold both the PlayStation 3 and Xbox 360.This is a successful example of marketing.

A)consumer- oriented
B)sense- of- mission
C)innovative
D)customer- value
E)societal

Question 76

Nike produces PVC- free shoes,recycles old sneakers,and educates young people about conservation,reuse,and recycling.Nike is using the most basic level of environmental sustainability known as .

A)new clean technology
B)"beyond greening"
C)redlining
D)product stewardship
E)pollution prevention

Question 77

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)The strategic planning concept
B)Environmentalism
C)Sustainable marketing
D)Innovation
E)Consumerism

Question 78

All of the following are examples of cultural pollution EXCEPT .

A)street signs in an urban area
B)commercials during serious programs
C)spam in an e- mail inbox
D)billboards marring beautiful scenery
E)ads in magazines

Question 79

Timberland employees get 40 hours paid leave each year to pursue volunteer projects.The company runs a service day that hosts projects in 25 countries,and it supports a nonprofit that brings young people into public service for a year.CEO Jeffrey Swartz sees such service as a powerful differentiator for Timberland with its current and potential customers.Timberland could be most accurately described as practicing _ .

A)a sustainability vision
B)consumerism
C)environmental sustainability
D)sense- of- mission marketing
E)innovative marketing

Question 80

Marketers respond to charges of planned obsolescence with all of the following EXCEPT which one?

A)No one is forced to buy the new product.
B)The product will eventually wear out anyway.
C)Companies do not want to lose customers to other brands.
D)For most technical products,customers want the latest innovations.
E)Consumers like change.