Question 1

If a person is rewarded for developing a deceptive advertisement, he or she probably will not engage in such behavior in the future.

Accepted Answer

A) True 
 B)False  False

Question 2

There is no evidence that being socially responsible and ethical is worthwhile.

Accepted Answer

A) True 
 B)False  False

Question 3

The tobacco industry in the United States is dominated by three large companies. When any one of these companies changes its price on tobacco products, the other two companies quickly adjust their prices to match it. From these characteristics, the tobacco industry could best be described as

Accepted Answer

A)   price sensitive.
B)   opportunistic.
C)   monopolistic competition.
D)   an oligopoly.
E)   a monopoly. D

Question 4

If political officials have positive feelings toward particular firms or industries, they are less likely to create or enforce laws and regulations that are unfavorable for business organizations.

Accepted Answer

A) True 
 B)False

Question 5

Price discrimination is prohibited by the ____ Act.

Accepted Answer

A)   Sherman Antitrust
B)   Wheeler-Lee
C)   Robinson-Patman
D)   Celler-Kefauver
E)   Consumer Goods Pricing

Question 6

A bribe offered to benefit an organization is generally considered acceptable.

Accepted Answer

A) True 
 B)False

Question 7

Since most ethical choices pertaining to marketing decisions are jointly made, an organization must ensure the ____ reflects the organization's values, beliefs and norms.

Accepted Answer

A)   code of ethics
B)   code of conduct
C)   enforcement of ethical standards and screening techniques
D)   employee self-regulation and screening procedures
E)   organizational or corporate culture

Question 8

Several mothers in Atlanta wanted to get the message to their city government that they were not happy with the nutritional quality of the food the city's school system served their children, especially at the current cost for a lunch. One of the mothers suggested they organize a protest at City Hall to get the lawmakers' attention. Another mother in the group suggested they all use their smart phones to go on Twitter and let others know the time and date of the protest. This small group was surprised at the number of other parents who were equally concerned about the food program, and so this small group decided to organize a flash mob. Over two hundred people showed up in a flash mob in front of City Hall - many of them with signs and banners. These mothers and other individuals are engaging in

Accepted Answer

A)   a publicity stunt.
B)   their right to know.
C)   consumerism.
D)   lobbying.
E)   political action.

Question 9

Any time an activity causes managers or consumers to feel manipulated or cheated, a marketing ethics issue exists, regardless of the legality of that activity.

Accepted Answer

A) True 
 B)False

Question 10

The Food and Drug Administration influences marketing activities the most.

Accepted Answer

A) True 
 B)False

Question 11

Marketing ethics refers to principles and standards that define acceptable conduct in marketing.

Accepted Answer

A) True 
 B)False

Question 12

Pure competition is a common competitive environment.

Accepted Answer

A) True 
 B)False

Question 13

L'Oreal, a manufacturer of personal care and beauty products has a focus on sustainability. It has developed eco-packaging, eliminated many potentially harmful chemicals from its products, and has improved its production systems to reduce waste. What major social responsibility issue is L'Oreal addressing?

Accepted Answer

A)   The natural environment
B)   Consumerism
C)   Marketing ethics
D)   Legal obligations
E)   Community relations

Question 14

Which of the following statements about social responsibility is correct?

Accepted Answer

A)   Social responsibility dimensions do not include philanthropic concerns.
B)   Social responsibility does not deal with the total effect of all marketing decisions on society.
C)   Social responsibility refers to a company's obligation to maximize its positive impact and minimize its negative impact on society.
D)   Social responsibility dimensions do not include economic concerns.
E)   Social responsibility refers to principles and standards that define acceptable conduct in marketing as determined by various stakeholders.

Question 15

Fraud and antitrust violations are the most frequently sentenced organizational crimes.

Accepted Answer

A) True 
 B)False

Question 16

International Office Supplies Wholesaler charges different prices to its various customers without any legal justification. This company is in violation of the

Accepted Answer

A)   Sherman Antitrust Act.
B)   Wheeler-Lea Act.
C)   Lanham Act.
D)   Federal Trade Commission Act.
E)   Robinson-Patman Act.

Question 17

The Coca-Cola Company has recognized the significant increase in population diversity within the U.S. soft-drink market. Which one of the following best illustrates the company's integration of this knowledge into its marketing strategy?

Accepted Answer

A)   Ads featuring nostalgic Americana
B)   Bonus coupons in Coca-Cola twelve-packs
C)   Ads featuring Hispanic actors and Tejano music
D)   Ads in The New Yorker and Reader's Digest
E)   Ads aimed at children

Question 18

Marketing ethics goes beyond legal issues, although ethical disputes must sometimes be resolved in court.

Accepted Answer

A) True 
 B)False

Question 19

During which stage of the business cycle is unemployment low and total income relatively high?

Accepted Answer

A)   Repression
B)   Prosperity
C)   Recovery
D)   Recession
E)   Depression

Question 20

Jared Bledsoe hired Green Gardens, a local landscape firm to plant trees and shrubs in his front yard. The landscape is beautiful when the company is done; however, in just a few days many of the plants begin to die. When Jared complained to the manager of Green Gardens, the manager says that Jared must have done something to them that caused the plants to die, such as overwatering them. Green Gardens doesn't have any money-back guarantees. Jared is angry that he can't get a refund or replacement. At this time, Jared's best course of action would be to contact the

Accepted Answer

A)   local Chamber of Commerce.
B)   Federal Trade Commission.
C)   Sherman Commission.
D)   Better Business Bureau.
E)   local Small Claims Court.

Exam 3: The Marketing Environment, Social Responsibility, and Ethics

If a person is rewarded for developing a deceptive advertisement, he or she probably will not engage in such behavior in the future.

There is no evidence that being socially responsible and ethical is worthwhile.

The tobacco industry in the United States is dominated by three large companies. When any one of these companies changes its price on tobacco products, the other two companies quickly adjust their prices to match it. From these characteristics, the tobacco industry could best be described as

If political officials have positive feelings toward particular firms or industries, they are less likely to create or enforce laws and regulations that are unfavorable for business organizations.

Price discrimination is prohibited by the ____ Act.

A bribe offered to benefit an organization is generally considered acceptable.

Since most ethical choices pertaining to marketing decisions are jointly made, an organization must ensure the ____ reflects the organization's values, beliefs and norms.

Any time an activity causes managers or consumers to feel manipulated or cheated, a marketing ethics issue exists, regardless of the legality of that activity.

The Food and Drug Administration influences marketing activities the most.

Marketing ethics refers to principles and standards that define acceptable conduct in marketing.

Pure competition is a common competitive environment.

Which of the following statements about social responsibility is correct?

Fraud and antitrust violations are the most frequently sentenced organizational crimes.

International Office Supplies Wholesaler charges different prices to its various customers without any legal justification. This company is in violation of the

The Coca-Cola Company has recognized the significant increase in population diversity within the U.S. soft-drink market. Which one of the following best illustrates the company's integration of this knowledge into its marketing strategy?

Marketing ethics goes beyond legal issues, although ethical disputes must sometimes be resolved in court.

During which stage of the business cycle is unemployment low and total income relatively high?