Deck 4: Ethical and Social Responsibility in Marketing

Question 1

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 1

C

Question 2

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)U.S.congresspeople
E)the news media

Answer 2

C

Question 3

Anheuser-Busch is trying to meet the needs of a very diverse group: its customers who drink beer,environmentalists,shareholders,regulators,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 3

A

Question 4

There has been a public outcry about the ethical practices of businesspeople.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.
E)fair or poor.

Question 5

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)values and standards of society 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.

Question 6

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.

Question 7

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.

Question 8

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.

Question 9

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.

Question 10

Society's values and standards that are enforceable in the courts are referred to as

A)situational ethics.
B)cultural norms.
C)industry practices.
D)laws.
E)the Consumer Bill of Rights

Question 11

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.

Question 12

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 describe 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.

Question 13

In 2012,Anheuser-Busch donated over 1.4 million cans of emergency drinking water to support disaster relief efforts.Anheuser-Busch is exhibiting which of the following?

A)stockholder responsibility
B)profit responsibility
C)utilitarianism
D)cause marketing
E)social responsibility

Question 14

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)pre-emptive marketing.
C)ethical behavior in marketing.
D)the social marketing concept.
E)cause marketing.

Question 15

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)both illegal and unethical.
E)sanctioned by the Business Software Alliance since only one copy was transferred.

Question 16

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.

Question 17

Anheuser-Busch's commitment preserving the natural environment by using renewable fuels such as biogas and landfill gas is an example of __________.

A)utilitarianism
B)social responsibility
C)moral idealism
D)profit responsibility
E)cause marketing

Question 18

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 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.

Question 19

Which of the following statements most 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.

Question 20

Laws refer to

A)a specific set of behaviors a given society considers to be 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 both what may be done in specific business circumstances.

Question 21

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

Question 22

Which of the following is considered one of the major factors that influences an individual's personal moral philosophy and ethical behavior?

A)organizational structures
B)legislation
C)federal regulatory agencies
D)a nation's moral philosophy
E)business culture and industry practices

Question 23

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.

Question 24

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.

Question 25

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,they are minimal,typically consisting of confiscation,a warning,a public apology,and perhaps a fine.Moreover,copying enjoys a long tradition in China that 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

Question 26

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.
C)both parties to the exchange being better off after a transaction.
D)the seller offering buyers its products and services at cost,especially during a period of recession.
E)the buyer forming a strategic alliance with the seller.

Question 27

The Latin phrase caveat emptor is a legal concept that means

A)"Cash on delivery."
B)"Let the buyer beware."
C)"Let's make a deal."
D)"Be informed."
E)"Such is life."

Question 28

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
E)organizational core values

Question 29

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

Question 30

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

Question 31

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.

Question 32

Caveat emptor refers to

A)the legal concept of "let the buyer beware," which was pervasive in the American business culture prior to the 1960s.
B)the marketing concept of "be first or be last," implying that the first company to the marketplace wins.
C)the Latin term meaning that "all is fair in love and war," an attitude that was held by most marketers prior to the 1990s.
D)the legal concept of "such is life," which created many illegal as well as legal but unethical business practices during the 1980s.
E)the Latin phrase meaning "empty promises," which was a charge placed upon many firms during the period after WWII when products failed to meet their marketing claims.

Question 33

The legal concept of "let the buyer beware," which was pervasive in the American business culture prior to the 1960s,is referred to as __________.

A)ad nauseum
B)mea culpa
C)quid pro quo
D)ćest la vie
E)caveat emptor

Question 34

Which of the following is considered one of the major factors that influences an individual's personal moral philosophy and 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

Question 35

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.

Question 36

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

Question 37

The unauthorized use of intellectual property can severely affect the owners of that property.This practice also

A)levels the playing ground for less 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.

Question 38

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 5 years.
D)limited to books,music,and software.
E)subject to ISO 14000 requirements.

Question 39

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

Question 40

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

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

Question 41

A law that codified the ethics of exchange between buyers and sellers,including the rights to safety,to be informed,to choose,and to be heard,is referred to as the

A)Lanham Act
B)Fair Practices Act
C)Caveat Emptor Decree
D)Consumer Bill of Rights
E)Customer Consent Decree

Question 42

In the private purchase of a used or "pre-owned" car,__________ places the burden on the buyer to make sure the car is worth the purchase price,so it is advisable to take the car first to a mechanic.This is because once the transaction is complete the buyer will not receive a warranty or return option from the seller.

A)modus operandi
B)caveat emptor
C)de facto marketing
D)ćest la vie
E)anguis in herba

Question 43

The FTC is concerned about the amount of personal information that is collected through websites because the consumer is not made aware of how this information is being used.Over 92 percent of websites collect personal information,yet only about __________ make their customers aware of how that information is being used.

A)25%
B)33%
C)50%
D)66%
E)75%

Question 44

Companies need to be vigilant in product quality testing not simply from an ethical perspective but from a financial one as well.Personal claims and property damage from consumer product safety incidents cost companies more than __________ annually.

A)$100 million
B)$900 million
C)$300 billion
D)$500 billion
E)$700 billion

Question 45

When shopping on the Internet,most consumers assume their personal information is confidential.Subscribers to America Online (AOL)were upset when AOL proposed giving member information to its partners without telling them.This is related most directly to consumers' right to

A)be heard.
B)be treated courteously.
C)safety.
D)happiness.
E)be informed.

Question 46

The Securities and Exchange Commission (SEC)works hard to prevent unscrupulous companies from "cooking" their books to paint investors and regulators a better financial picture than they really have.Yet,in the end,it is up to investors to research the companies in which they want to invest because __________ is the norm when investing in the stock market.

A)modus operandi
B)caveat emptor
C)de facto marketing
D)ćest la vie
E)anguis in herba

Question 47

In 1962,President John F.Kennedy outlined a Consumer Bill of Rights that codified the ethics of exchange between buyers and sellers.These were the right: (1)__________; (2)to be informed; (3)to choose;and (4)to be heard.

A)to privacy
B)to be compensated for product defects
C)to be treated with respect
D)be treated without prejudice
E)to safety

Question 48

The Consumer Bill of Rights refers to a law that

A)codified the ethics of exchange between manufacturers,distributors,and suppliers,including the right to be paid.
B)codified the ethics of exchange between manufacturers,distributors,and suppliers,including the rights to safe working conditions,fair pay,and collaborative decision making.
C)codified the ethics of exchange between buyers and sellers,including the rights to safety,to be informed,to choose,and to be heard.
D)guaranteed consumers the right to be compensated through replacement,repair,or reimbursement for products that fail to perform as promised by the manufacturer.
E)guaranteed consumers the rights that are enumerated in the First Amendment to the U.S.Constitution.

Question 49

Recently,a project team for Cosco,the world's largest children's products company,developed a high chair that could be used as an infant feeding seat,a youth chair,a play chair,a booster chair,and when reclined,an infant bed.Its design could be made and sold for $49.The marketing manager,in consultation with other middle managers,decided to have the prototypes checked out by Cosco employees who had small children.This was the only product testing performed on the product.Before Cosco pulled the unsafe chair from the market,several children were injured and some died as a result of using the chair.Cosco was charged with being unconcerned about consumers' right to

A)choose.
B)be informed.
C)be treated courteously.
D)safety.
E)happiness.

Question 50

In 1962,President John F.Kennedy outlined a Consumer Bill of Rights that codified the ethics of exchange between buyers and sellers.These were the right: (1)to safety; (2)__________; (3)to choose;and (4)to be heard.

A)to privacy
B)to be informed
C)to be treated with respect
D)to be treated without prejudice
E)to receive fair prices for both products and services

Question 51

The Consumer Bill of Rights codified the ethics of exchange between buyers and sellers.It was outlined by __________ in __________.

A)President John Kennedy;1962.
B)President Ronald Reagan;1983.
C)President Bill Clinton;1996.
D)President George W.Bush;2003.
E)President Barack Obama;2009.

Question 52

In 1962,President John F.Kennedy outlined a Consumer Bill of Rights that codified the ethics of exchange between buyers and sellers.These were the right: (1)to safety; (2)to be informed; (3)to choose;and (4)__________.

A)to have legal representation in a court of law
B)to exchange or return products and services within a reasonable period of time
C)to receive fair prices for both products and services
D)to be heard
E)to be compensated for product defects

Question 53

Mattel's Cabbage Patch Snacktime Kids doll was designed to eat plastic toys that were drawn into the doll's motorized mouth.However,despite extensive testing,the doll was found to "eat" the child's hair and was subsequently recalled and discontinued.Mattel discontinued the item because of consumers' right to

A)choose.
B)be informed.
C)be treated courteously.
D)safety.
E)happiness.

Question 54

Dell Inc.learned that the lithium-ion batteries in its notebook computers posed a fire hazard to consumers.The company recalled 2.7 million batteries and gave consumers a replacement before any personal injuries resulted.Dell was most likely concerned with consumers' right to

A)choose.
B)be informed.
C)safety.
D)be heard.
E)happiness.

Question 55

Recently,certain toys that were manufactured in China were found to have very high levels of lead in the paint and were recalled.This action protected consumers' right to

A)safety.
B)be informed.
C)be heard.
D)choose.
E)be treated courteously.

Question 56

The Children's Online Privacy Protection Act (1998)is a law designed to protect consumers' right to

A)choose.
B)be informed.
C)be treated courteously.
D)safety.
E)be heard.

Question 57

A Pressure-Assist Flushing System for toilets,which uses air and water pressure to ensure a powerful flush,can burst inside toilet tanks,"releasing stored pressure," according to the Consumer Product Safety Commission.It was recently recalled following 14 reports of injuries.This action protected consumers' right to

A)safety.
B)be informed.
C)be heard.
D)choose.
E)be treated courteously.

Question 58

The right to safety manifests itself in industry and federal safety standards for most products sold in the United States.The U.S.__________ routinely monitors the safety of 15,000 consumer products.

A)Chamber of Commerce
B)Better Business Bureau
C)Consumer Product Safety Commission
D)Department of Commerce
E)Consumer Protection Agency

Question 59

Investors should understand that when purchasing stock,the principle of __________ is in effect.It is in the best interests of investors to do research on the company,so they will make a wise purchase.

A)modus operandi
B)e pluribus unum
C)de facto marketing
D)ćest la vie
E)caveat emptor

Question 60

In 1962,President John F.Kennedy outlined a Consumer Bill of Rights that codified the ethics of exchange between buyers and sellers.These were the right: (1)to safety; (2)to be informed; (3)__________;and (4)to be heard.

A)to have legal representation in a court of law
B)to exchange or return products within a reasonable period of time
C)to choose
D)to demand "rain checks" if advertised goods are out of stock
E)to be compensated for product defects

Question 61

Bribery is most likely to occur when

A)a monopoly exists in the industry.
B)industries experience intense competition.
C)the country has reached a high level of economic development.
D)industries are high-tech in nature.
E)industries operate in an oligarchic competitive environment.

Question 62

Consider the Coke-Pepsi photo above.Thirty three percent of Pepsi's marketing and advertising executives say they would decline an offer to buy one of Coke's marketing plans and samples.Most said that they

A)thought they might go to work for Coke one day and didn't want to spoil their employment chances.
B)would prefer competing ethically so they could sleep at night.
C)were afraid the media would find out.
D)knew they would get fired.
E)didn't want to disappoint their co-workers.

Question 63

Jay Bloom's Pet Assure,a national pet health-care provider network based in Dover,N.J. ,recently took advantage of a rival's naïveté.When a West Coast provider of catastrophic pet coverage "preannounced" the addition of a wellness component (Pet Assure's specialty)in an interview with a tiny community newsweekly six months prior to launching it,Bloom was notified immediately through a web-based news monitoring service.This not only gave him time to add catastrophic benefits to one of his own wellness products,but also enabled him to get his offering to the market first.Jay Bloom relied on __________ to keep him abreast of his competitors' activities.

A)legitimate environmental scanning
B)economic espionage
C)kickbacks
D)corporate piracy
E)primary market research

Question 64

Michael Smolensky is CEO of Lifeway Foods,Inc. ,based in Skokie,IL.The company sells kefir,a cultured milk product popular in Smolensky's native Russia.Recently,Smolensky,who had developed his own secret recipe,got a call from his supplier,saying,"Michael,someone is trying to steal your secrets." Smolensky discovered later that a rival had called to ask the supplier for certain ingredients by their secret codes,known only to Smolensky and the supplier.The rival had picked them out of Lifeway's refuse.This is an example of

A)corporate intelligence.
B)economic espionage.
C)clandestine trade secrets.
D)industrial sleuthing.
E)competitive surveillance.

Question 65

The FTC established the Do Not Call Registry in 2003 for consumers who do not want to receive unsolicited telemarketing calls.Today,a telemarketer can be fined up to __________ for each call made to a telephone number posted on the registry.

A)$500
B)$750
C)$1,250
D)$8,750
E)$16,000

Question 66

Economic espionage is MOST LIKELY to occur in which type of industries?

A)fashion
B)entertainment
C)high-tech
D)consumer packaged goods
E)beverage

Question 67

Business culture affects ethical behavior in competition.Two kinds of unethical behavior are most common:

A)economic espionage and bribery.
B)price fixing and copyright infringement.
C)bribery and extortion.
D)price fixing and economic espionage.
E)economic espionage and antitrust infractions.

Question 68

Bribery is most likely to occur when

A)industries experience little competition.
B)the country has reached a high level of economic development.
C)industries are high-tech in nature.
D)industries operate in an oligarchic competitive environment.
E)industries experience intense competition.

Question 69

The right to be heard means that

A)the U.S.Department of Commerce has the right to hear consumer complaints.
B)the American Marketing Association has the right to discipline marketers based on customer complaints.
C)consumers should have access to public policy makers regarding complaints about products and services.
D)companies should have access to public policy makers regarding complaints about fraudulent consumer practices.
E)consumers should have access to public policy makers regarding new product ideas.

Question 70

Consider the Coke-Pepsi photo above.Suppose you are a senior executive at Pepsi-Cola and a Coca-Cola employee offers to sell you the marketing plan and sample for a new Coke product at a modest price.When asked this question in an online survey,__________ percent of marketing and advertising executives said they would buy the plan and product sample if there were no repercussions.

A)15
B)36
C)52
D)67
E)89

Question 71

Economic espionage includes such activities as __________.

A)two firms hiring the same musician to write their company jingle
B)hiring people who ever worked in an executive capacity at a competitor's firm,especially if they didn't have a noncompete clause
C)offering to accept all competitors' coupons,making their effectiveness as a promotional tool negligible
D)searching through a competitor's trash
E)marrying someone who works for a competitor in an executive position

Question 72

Consider the Coke-Pepsi photo above.Why did 33 percent of Pepsi's marketing and advertising executives say they would decline an offer to buy one of Coke's marketing plans and samples?

A)They would prefer competing ethically so they could sleep at night.
B)They thought they might go to work for Coke one day and didn't want to spoil their employment chances.
C)They were afraid the media would find out.
D)They knew they would get fired.
E)They didn't want to disappoint their co-workers.

Question 73

All of the following are examples of economic espionage EXCEPT:

A)wiretapping.
B)trespassing.
C)bribery.
D)searching a competitor's trash.
E)noncompete clause employment contract violations.

Question 74

The clandestine collection of trade secrets or proprietary information about a company's competitors is referred to as __________.

A)economic espionage
B)industrial espionage
C)marketplace espionage
D)industrial surveillance
E)patent infringement

Question 75

A current practice whereby retailers may demand cash or free goods in exchange for shelf space to stock new products is referred to as

A)slotting allowances.
B)kickbacks.
C)economic espionage.
D)tying arrangements.
E)industrial bribes.

Question 76

Economic espionage refers to

A)the destruction of a competitor's products or services through physical damage of property or damage to their reputation.
B)persuading someone to act in one's favor,typically illegally or dishonestly,by a gift of money or other inducement.
C)an illicit payment made to someone who has facilitated a transaction or appointment.
D)the collection of trade secrets or other intellectual property from foreign countries or governments.
E)the clandestine collection of trade secrets or proprietary information about a company's competitors.

Question 77

__________ is often disguised as gifts,consultant fees,and favors,but is used to gain an unethical advantage over competitors.

A)Economic espionage
B)Utilitarianism
C)Business intelligence
D)Oligopoly
E)Bribery

Question 78

Consider the Coke-Pepsi photo above.An employee of Coca-Cola attempted to share its marketing plan with an employee of Pepsi for a modest price.What should the Pepsi employee do?

A)Buy the marketing plan if assured there would be no legal or ethical repercussions.
B)Ignore the offer to buy the marketing plan and hope the ethical dilemma will go away.
C)Immediately contact Coca-Cola to advise them of the plot to sell the marketing plan.
D)Immediately report the offer to the Better Business Bureau.
E)Advise the Coca-Cola employee that it would be ethical to accept the plan if it was offered for free.

Question 79

Consider the Coke-Pepsi photo above.What was the consequence to the Coca-Cola employee who tried to sell classified information to Pepsi?

A)The employee was fired and no other legal action was taken since the practice is unfortunately too commonplace.
B)The employee was given the choice of quitting or being demoted to a minimum wage job.
C)The employee was arrested for bribery and sentenced to five years house arrest.
D)The employee was sentenced to eight years in prison and ordered to pay $40,000 in restitution.
E)The employee was permitted to keep her original job (minus any bonuses),but had to attend a seminar on ethical behavior.

Question 80

When Toysmart.com filed for bankruptcy in June 2000,it listed its customer database as one of its assets even though it had assured its customers it would never disclose their information to any third party.People who had purchased products from Toysmart and were a part of its database were upset when they learned their private information was being treated as property that was for sale.These customers believed that according to the Consumer Bill of Rights,they should know how their private information would be used.In other words,Toysmart's former customers had a right to

A)choose.
B)be informed.
C)be heard.
D)safety.
E)happiness.