Deck 2: The Marketing Environment, social Responsibility, and Ethics

Question 1

A human resources manager is creating a code of ethics for the employees of the retirement home she works for.Which of the following is an ethics principle she should keep in mind as she creates this code?

A)The principles should not upset current retirement home workers and future job applicants.
B)The principles should be fair to administrative staff.
C)The principles of the code should be a result of input from senior management
D)Principles can deviate from common practices because of the prestigious nature of the facility.

Answer 1

A
An unethical code would presume that the company is an exception to a common practice in the industry.

Question 2

Which of the following statements best characterizes the theory of sustainability?

A)Sustainability is an internal process in which companies match resources and objectives.
B)Sustainability is the idea that socially responsible companies will outperform their peers when they focus on the world's problems as marketing opportunities.
C)Sustainability cannot be socially responsible without a code of ethics and managerial support of that code.
D)Sustainability and ethical behaviour should never be viewed as the means of obtaining a competitive advantage.

Answer 2

B
Sustainability is the idea that socially responsible companies will outperform their peers by focusing on the world's social problems and viewing them as opportunities to build profit and help the world at the same time.

Question 3

Cheetera Johnson is a calculating,self-centred salesperson.She never engages in relationship marketing.She looks on any sales situation as a "win-lose" situation,and she believes any legal method she can use is justified when she wins.At which stage of ethical development is Johnson most likely to be?

A)Pre-conventional morality
B)transformationalism
C)conventional morality
D)egocentrism

Answer 3

A
Preconventional morality is the most basic level of morality.

Question 4

Which of the following sayings best describes how people with conventional morality act?

A)Don't put all of your eggs in one basket.
B)When in Rome,do as the Romans do.
C)Be wary of strangers bearing gifts.
D)A rolling stone gathers no moss.

Question 5

Like many other professional organizations and businesses,the Society of Civil Engineers has developed a formal,written guideline to help its members make better ethical decisions.This document would be best described by which of the following terms?

A)behavioural practice
B)moral ruling
C)code of ethics
D)direction of value

Question 6

What is the term for the concern of business for the long-range welfare of both the company and its relationships to the society within which it operates?

A)consumerism
B)corporate social responsibility
C)cultural sensitivity
D)conventional morality

Question 7

Shannon Ross is a sales manager for Pampered Chef,a company that sells,through parties,kitchen tools and other aids for cooking.She is very concerned about making sure her salespeople understand the importance of treating each customer fairly and developing long-term relationships with them.She asks that before a sale is made,the salesperson should make sure customers can afford the items and are not buying due to social pressures.At which stage of ethical development is Ross most likely to be?

A)preconventional morality
B)traditional morality
C)conventional morality
D)postconventional morality

Question 8

Which of the following best describes the effect corporate social responsibility has had on the business environment?

A)many firms are finding it easy to implement
B)it requires companies to sacrifice economic performance for the sake of their stakeholders
C)it does not influence competition
D)it may not always result in profit and growth

Question 9

How is corporate social responsibility defined?

A)as the belief that the legal system defines ethical behaviour
B)as the development of inclusive codes of ethics
C)as the rules by which social rewards are attained
D)as the concern for social welfare by businesses

Question 10

What is the term for a defined group that managers believe is most likely to buy a firm's product?

A)target market
B)buying centre
C)aggregated unit
D)demographic sample

Question 11

Which of the following statements best describes ethics?

A)Ethics are the moral principles or values that generally govern the conduct of an individual.
B)Ethics is the standard of behaviour upon which legal actions will be made.
C)Ethics are unrelated to social behaviour.
D)Ethics and values are only situation-specific

Question 12

Novartis created the Novartis Research Institute for Tropical Diseases in Singapore.The institute is unique because it is a not-for-profit organization that focuses on the discovery of new drugs for the treatment of neglected diseases,such as dengue fever and tuberculosis.This is not only good business,but also which of the following?

A)mandated by local court rulings
B)socially responsible
C)unrelated to any ethical motivation
D)environmental marketing

Question 13

Maple Gas and Electric (MG&E)Company has donated almost $300,000 to 9 provincial governments and community-based organizations for local economic development projects.Recipients of these grants include the Manitoba Economic Development Corporation's Business Outreach Program,the New Brunswick Affordable Single-Family Housing Project,and the Alberta Business Development Training Program.This sort of donation indicates MG&E was operating at which responsibility level?

A)legal
B)philanthropic
C)ethical
D)economic

Question 14

What is the term for the idea that socially responsible companies will outperform their peers by focusing on the world's social problems and viewing them as opportunities to build profit and help the world at the same time?

A)sustainability
B)philanthropy
C)cause marketing
D)creative ethics

Question 15

Which of the following factors tends to influence ethical decision making and judgments?

A)probability of a harmful outcome
B)length of time between the onset of consequences and legal action
C)level of multiculturalism
D)number of employees to be affected

Question 16

The use of ethical decision making is affected by which of the following?

A)the influence of junior managers
B)the probability of harmful outcomes
C)depends on the number of countries to be affected
D)depends on the magnitude of possible consequences

Question 17

Which of the following statements best describes the effect a code of ethics has on employees?

A)A code helps employees avoid confusion when determining whether their decisions are ethical.
B)A code can be an effective external control on behaviour.
C)The process of formulating the code facilitates discussions that ultimately create weakened decisions.
D)A code helps employees identify what the law recognizes to be acceptable business practices.

Question 18

For every home built by Habitat for Humanity,Whirlpool Corporation has given and continues to give free kitchen appliances to the deserving family.This donation of appliances is an example of how companies assume which of the following?

A)corporate social responsibility
B)ethical conveyance
C)a duty to engage in cause marketing
D)a right to engage in social marketing

Question 19

What are the four components of the pyramid of corporate social responsibility?

A)sustainability,creativity,profit,and culture
B)economic,legal,ethical,and philanthropic
C)organizational,financial,social,and cultural
D)sustainability,legality,creativity,and competition

Question 20

Johnson Publishing Company,the world's largest Caribbean-owned publishing company and home of Rumpunch magazine,has forged an alliance with Dan River,Inc. ,to create luxury bed and bath products for the newly developed Rumpunch Home brand.Rumpunch Home will use the publisher's long history and expertise to market to various demographics of the Caribbean market.Which of the following terms best describes who Rumpunch wants to sell to?

A)target market
B)buying centre
C)aggregated unit
D)consumer cluster

Question 21

What are the environmental factors concerned with the changes in people's values,lifestyles,and family roles?

A)social
B)economic
C)political
D)demographic

Question 22

Colourific is a relatively new competitor for Crayola colouring products.At the beginning of the new year for elementary students,the people buying school supplies is whom Colourific wants to sell to,they would be classified as which of the following?

A)target market
B)buying centre
C)mass market
D)consumer sample

Question 23

A target market is best characterized by which of the following statements?

A)Target markets will remain stable over time,considering economic climates.
B)Target markets change over time as consumers drop in or out of the market,and as tastes change.
C)Target markets are not strongly affected by changes in the external environment.
D)Target markets cannot be specifically defined according to age,income,or location because these factors are continually changing.

Question 24

The newest Coca-Cola vending machines have interactive screens that run advertisements and allow users to obtain free photos of themselves and ringtones after they have bought a drink.The reason for the introduction of this new-style vending machine is to "allow the company to interact more directly with its digital-age customers." Around the world,Coke and junk food,in general,are facing television advertising bans.By developing this machine,and by modifying its external environment through the use of technology,what has Coke engaged in?

A)re-engineering
B)environmental management
C)social machinations
D)technology diversity

Question 25

The external environment is a strong influence on a target market.What can it be a source of for the marketing manager?

A)opportunities and threats
B)threats and strengths
C)environmental loopholes
D)opportunities and weaknesses

Question 26

What can marketing managers often influence,but NOT control?

A)where advertising is placed
B)the external environment
C)the sales force
D)the distribution strategy

Question 27

Which of the following is the most accurate description of the external environment?

A)can be controlled in much the same manner as the internal marketing mix
B)cannot be influenced by marketing managers
C)only changes very slowly over time
D)must be continually monitored by marketing managers

Question 28

Coolsavings.com is one of the largest online distributors of in-store coupons,sales announcements,and mail-in rebates offered by national retailers and Internet commerce sites.Its marketing department keeps track of current external environmental changes.Although some information is relatively easy to collect,analyzing and forecasting trends is difficult.Which trends are most important for a company to understand and extremely difficult to forecast?

A)demographic trends
B)economic trends
C)social trends
D)technological trends

Question 29

In Asia,Procter & Gamble (P&G)discovered consumers like to experiment with different brands of shampoos,so most shoppers shy away from the family-size bottles so popular with Americans.Now,most of the shampoo the company sells in the Far East is packaged in single-use sachets.Which factors did P&G respond to when it changed its Asian packaging?

A)demographic
B)competitive
C)technological
D)social

Question 30

Many people in Canada choose to drink light beer because Canadians value thin and fit bodies.In Europe,light beers have had little success because flavour is valued more highly.For international beer manufacturers,what does this difference illustrate?

A)how demography influences marketing
B)how competition influences marketing
C)how social factors influence marketing
D)how economic conditions influence marketing

Question 31

Quaker Oats and other cereal manufacturers have developed what they call "breakfast-with-one-hand" products,which are breakfast bars and drinks that can be consumed on the way to work without leaving any mess.This type of food that can be eaten on the go is largely the result of changes in which factors?

A)natural environmental
B)demographic
C)technological
D)social

Question 32

What is apparently the most difficult external variable for marketing managers to forecast,influence,or integrate into marketing plans?

A)technology
B)social factors
C)demography
D)competition

Question 33

As technology continues to offer more methods for shopping on the Internet,manufacturers and traditional retailers are finding themselves in direct competition with each other.In this case,manufacturers and retailers cannot intelligently plan for the future unless marketing managers understand which of the following?

A)their competitive advantage
B)the lastest technological innovations
C)how consumers are assimilating new technology
D)changing social attitudes toward shopping

Question 34

What is the term for the practice of choosing goods and services that meet one's diverse needs and interests rather than conforming to a single,traditional lifestyle?

A)aggregated lifestyle
B)component lifestyle
C)psychographic lifestyle
D)demographically defined lifestyle

Question 35

Cigarette manufacturers have had to eliminate the use of vending machines due to the machine's inability to check the buyers' ages.A cigarette manufacturer has developed vending machines that operate only after the user inserts a card verifying his or her age.By developing this machine,and by modifying its external environment through the use of technology,what has the cigarette manufacturer engaged in?

A)re-engineering
B)environmental management
C)social machinations
D)technology diversity

Question 36

When a company implements strategies that attempt to shape the external environment in which it operates,what is it engaging in?

A)synergistic control
B)environmental management
C)transactional management
D)market control

Question 37

What do self-sufficiency,upward mobility,and conformity have in common?

A)These are no longer valued attitudes.
B)They are attitudes that can easily be changed.
C)These are three perceptions that Canadians have of the Asian lifestyle.
D)These are three of the core values that have influenced lifestyles in North America.

Question 38

Consumers buying lumber are increasingly asking the retailers from whom they are buying the products if the lumber is from a nation that is destroying its environment.As a result,commercial buyers are asking Indonesian suppliers the same questions.Approximately 80 percent of the lumber produced in Indonesia is illegally logged.Two logging companies in Indonesia are putting computerized bar codes on their logs to show they were legally harvested.The companies hope this coding will provide evidence that they are engaging in which of the following?

A)proactive evaluation
B)transactional control
C)synergistic control
D)environmental management

Question 39

Politicans tried to pass a bill requiring concert promoters and venue operators to print parental warnings on tickets and advertisements for concerts and shows by performers whose recordings have already been given content advisory labels.Promoters and venue operators prevented the passage of this bill that would have required them to make value judgments they felt ill equipped to make.What were the concert promoters and venue operators engaging in?

A)internal marketing
B)illegal practices
C)environmental management
D)corporate espionage

Question 40

Consumer preference for low-carb diets has greatly modified the way food is being marketed.This concern with health issues is an example of which type of factor?

A)economic
B)social
C)technological
D)demographic

Question 41

Field Entertainment was given the task of distilling 75 years of Disney Magic into a two-hour show.While the task was formidable,the company described the results as multigenerational (meaning the newly created show appeals to children,parents,and grandparents).Which factors did Field Entertainment rely heavily on to develop a new show that would be appreciated by potential audiences of all ages?

A)technological
B)cultural
C)demographic
D)competitive

Question 42

Zimmer Centralpulse is the world's largest producer of replacement hips and knees for orthopaedic surgery.
Refer to Zimmer Centralpulse.The company is particularly interested in the market in southern British Columbia,where a large aging population lives.Which external environmental element most directly influences the continued growth of Zimmer Centralpulse?

A)economics
B)political
C)culture
D)demography

Question 43

Girls between the ages of 8 and 14 are one of the growing markets for high-end shoe manufacturers.But doctors are finding that many of these girls are developing grown-up foot problems that once affected only women over 50.
Which girls are experiencing problems because they wanted to be fashionable?

A)members of Generation X
B)a cohort generation
C)tweens
D)members of Generation Y

Question 44

What is the study of people's vital statistics,such as their ages,births,deaths,and locations?

A)cultural sociology
B)psychometrics
C)demography
D)ethnography

Question 45

Anderson owns three dogs,loves to cook,is a member of a city arts commission,enjoys talk radio,likes to ride motorcycles,and is a rodeo competitor.All of these diverse needs and interests influence his choices of the goods and services he buys.What does Anderson have?

A)a component lifestyle
B)a demographically oriented lifestyle
C)a multicultural orientation
D)a fragmented-market orientation

Question 46

Shoe manufacturers who develop and market adult-styled shoes to this group but put warnings of potential future problems are operating at which of the following responsibility levels?

A)legal
B)philanthropic
C)ethical
D)cultural

Question 47

One of the favourite foods in Thailand is shark fin soup.A San Francisco-based organization claimed the soup made by its leading producer contained mercury poison.
Refer to Shark Fin Soup.Sales for this company have plummeted.The popularity of this soup in Thailand represents which of the following factors?

A)economic
B)technological
C)social
D)competitive

Question 48

Ashley Kreeger is the director of marketing for a company that operates several assisted-living centres.The company is developing a marketing plan to cover the next five years of business.Kreeger must be sure she considers which of the following uncontrollable factors in her plan?

A)place or distribution factors
B)media buying factors
C)demographic factors
D)inventory factors

Question 49

What has the growth of dual-income families resulted in?

A)burnout
B)a sense of entitlement
C)decreased time to shop
D)increased purchasing power

Question 50

Generation Y is best characterized as which of the following?

A)Its members are people who were born between 1965 and 1978.
B)It is one and a half times larger than Generation X.
C)The members of Generation Y are pressed for time and spend more on personal services than any other age group.
D)Members of Generation Y are the first generation of latchkey kids.

Question 51

Zimmer Centralpulse is the world's largest producer of replacement hips and knees for orthopaedic surgery.
Refer to Zimmer Centralpulse.The company has developed a new sturdier joint that will extend the life of the average replacement joint by five years.What did this longer-lasting joint result from?

A)applied research
B)experiential research
C)demographically oriented research
D)value-added research

Question 52

Which of the following statements best characterizes the changing demographics in Canada today?

A)Marketers are modifying products to appeal to different ethnicities.
B)Marketers are mainly focusing on the aging baby boomers.
C)Marketers are making separate ethnic ads for the same products.
D)Marketers are advertising more to the older demographic groups than the younger ones.

Question 53

Donna Lassiter is a college teacher.She is also a rock climbing expert,a foster parent,and an accomplished violinist.Her other interests include glass blowing,gourmet cooking,and classic movies.How would marketers categorize Lassiter?

A)as fitting into a caregiver segment
B)as a member of the typical education-based target segment
C)as not belonging to any target market
D)as having a component lifestyle

Question 54

Which of the following events has had a greater effect on marketing than any other social change?

A)the growing number of one-child families
B)the growing number of couples without children
C)the growing number of people on the Internet
D)the increasing number of employed women

Question 55

Why has the component lifestyle of many of today's consumers proven to be such a challenge to marketers?

A)People with component lifestyles expect multi-tiered pricing.
B)The needs of people with component lifestyles are in constant flux.
C)Communication with people who have component lifestyles is very difficult.
D)There are no specialized lifestyle magazines that reach small segments of markets.

Question 56

Which of the following is a demographic characteristic of a population?

A)retirement income level
B)volunteering
C)values
D)education

Question 57

More and more people piecing together a variety of interests,products,and services and not conforming to traditional stereotypes.What are they enjoying?

A)well-defined segments
B)component lifestyles
C)simple multipurpose products
D)conformity and cohesiveness

Question 58

One of the favourite foods in Thailand is shark fin soup.A San Francisco-based organization claimed the soup made by its leading producer contained mercury poison.
Refer to Shark Fin Soup.The leading producer of shark fin soup wanted to continue selling the soup because it believes it has a responsibility to its investors to be profitable.Which responsibility level is the soup manufacturer operating at?

A)legal
B)philanthropic
C)ethical
D)economic

Question 59

Riot Media is a media and toy company that capitalizes on the "gross-out" humour factor that boys between the ages of 8 and 14 so love.Whom does it target?

A)members of Generation X
B)a cohort generation
C)tweens
D)members of Generation Y

Question 60

If you were to ask most Canadians what they most desired to make their life easier,a surprising number of them will say more time.This perception of "time poverty" has led to the use of high-tech communications everywhere.It is almost as if there are no boundaries between work and the rest of our lives.This feeling that there are not enough hours in a day has strongly influenced the marketing environment.What type of factor is this an example of?

A)social
B)economic
C)legal
D)demographic

Question 61

What is the term for a period of economic activity when income,production,and employment tend to fall,reducing overall demand?

A)stagflation
B)an inflation
C)a recession
D)a depression

Question 62

You are a marketing consultant to a firm that would like to target members of Generation X.Which of the following would you advise it to do?

A)Emphasize freedom from work and commitment.
B)Develop a personal service that will appeal to these time-poor consumers.
C)Avoid topics dealing with materialistic possessions.
D)Emphasize the baby boom culture.

Question 63

When income is high relative to the cost of living,consumers will have which of the following?

A)more discretionary income
B)more incentive to buy luxury items
C)less incentive to buy luxury goods and services
D)have significantly less disposable income

Question 64

What type of factors are interest rates,inflation,and consumer income that influence the marketing environment?

A)economic
B)socio-demographic
C)political
D)government

Question 65

Which large group of people in Canada was born between 1946 and 1964?

A)Generation Xers
B)gray markets
C)baby boomers
D)the baby bust generation

Question 66

A furniture retailer that specializes in selling entire rooms of furniture has hired you to identify 25 geographic target markets that can be described as multicultural societies.What types of locations should you offer this firm?

A)cities that have historically had low immigration rates
B)geographic regions that are growing with new immigrants
C)regions that are dominated by one ethnic group and that have multiple smaller ethnic groups
D)locations in which all major ethnic groups in the area are equally represented

Question 67

Which of the following is sometimes an effective weapon for fighting inflation and recession?

A)technology
B)line extensions
C)increased capital gains taxes
D)introducing new product lines

Question 68

When planning marketing strategies during times of inflation,marketers must be aware that inflation causes consumers to do which of the following?

A)put more money into savings accounts because prices are too high
B)consume more meals away from home
C)buy in small quantities until inflation is over
D)decrease their brand loyalty to products they have traditionally used

Question 69

What is the primary determinant of a person's earnings?

A)multiculturalism
B)lifestyle
C)education
D)the aging of the baby boomers

Question 70

An increase in purchasing power is a usually a result of an increase in which of the following?

A)gross income
B)social class
C)disposable income
D)cost of living

Question 71

Which of the following strategies is appropriate for a marketer to use during a time of economic recession?

A)promote product cost
B)maintain and improve customer services
C)emphasize top-of-the-line products in promotions
D)offer products that are expensive

Question 72

China's new 5 percent tax on disposable wooden chopsticks,reflecting concerns about deforestation,has been praised by environmentalists.The move is hitting hard at the Japanese who consume 25 billion sets of wooden chopsticks annually.Almost all of the chopsticks used in Japan come from China.The price of wooden chopsticks in Japan has increased by almost 50 percent.
Refer to Chopsticks.The price increase influences which factor of the external environment of restaurant owners in Japan?

A)economic
B)technological
C)demographic
D)social

Question 73

Shabby Chic fashion boutique has responded to economic trends by placing an emphasis on improving the quality of merchandise it offers,improving customer service,and reducing its cost of goods sold.Shabby Chic is apparently dealing with which level of economic activity?

A)depression
B)recession
C)inflation
D)stagnation

Question 74

The main product for Zamperla Industries is gondola cars for amusement park rides and ski lifts.Its marketing department constantly monitors trends in the external environment that might affect the firm.Which economic factor may pose a major threat to this company?

A)few competitors in this industry
B)technological improvements that are automating production of cars
C)a decline in disposable income
D)increasing interest in the environment and recycling

Question 75

What is measured by comparing the relative cost of a standard of goods and services in different geographic areas?

A)gross individual profit
B)purchasing power
C)net profit
D)relative pricing

Question 76

Which group is strongly attached to technology,tends to be skeptical consumers,and demands the latest fashion trends in record time?

A)Generation Xers
B)the cohort generation
C)the baby bridging generation
D)Generation Yers

Question 77

How is a multicultural society characterized?

A)by a population of recent immigrants who are closely related by custom and tradition
B)by a conglomeration of small and large ethnic groups that have little in common
C)by even distribution of all ethnic groups in a geographic region
D)by clusters of ethnic groups in a geographic region

Question 78

Carissa Ty designs and sells clothes for young working women.She has recently been told that unless she starts designing more to suit the style of the Gen Y market,she is likely to be in financial trouble soon.Why would someone tell her that?

A)Gen Yers don't have a style that they prefer.
B)Gen Yers are more multicultural.
C)Gen Yers are the children of the baby boomers,and echo boomers.
D)Gen Yers,demographically are an extremely large group of consumers.

Question 79

Which of the following is a measure of the decrease in the value of money,expressed as the percentage reduction in value since the previous year?

A)inflation
B)recession
C)depression
D)consumer break-even

Question 80

Which group of consumers was born between 1965 and 1978?

A)tweens
B)yuppies
C)cohort markets
D)Generation X