Chapter 21 (Ethics)
105) Which of these is an effect noted in the chapter that digital devices have had on the sustainability movement?
A) Consumers have increasingly turned to digital devices to learn about the environment and share their green experiences.
30) ________ aims to further a cause and is not directly related to a particular business activity.
A) Social marketing
35) Which of these is one of the reasons Tata's Nano car model did not succeed as hoped, even though it provided good value for low-income consumers looking to make the switch from scooters and motorcycles?
A) The stigma attached to buying a "cheap" car
96) Why did Patagonia once run an ad encouraging consumers not to buy one of its jackets?
A) To highlight the environmental impact of garment manufacturing
42) After Barnum's Animal Crackers launched a campaign to raise awareness of endangered species and to help protect the Asian tiger by issuing special-edition packaging and collaborating with the World Wildlife Fund, the Nabisco brand saw a "healthy lift in sales." This was an example of ________.
A) cause marketing
57) The Ronald McDonald Houses that McDonald's operates to help families while their children are hospitalized is an example of ________.
A) corporate philanthropy
90) Levi Strauss's Waste < Less jeans incorporate ________ in the garment fabric.
A) recycled plastic bottles
108) Younger consumers consistently show more concern for the environment than older consumers.
Answer: FALSE
110) Amazon has concluded that it can't achieve "net zero" carbon emissions.
Answer: FALSE
136) Routine business practices rarely pose ethical dilemmas.
Answer: FALSE
139) Although salespeople are legally prohibited from saying things about their products that are not true, they may legally suggest things about competitors' products that are not true.
Answer: FALSE
140) Deceptive advertising, exclusive dealing, and predatory competition sharply divide critics regarding whether they are clearly unethical or illegal.
Answer: FALSE
65) Social marketing programs take little time to develop and are generally easy to implement.
Answer: FALSE
66) Endearment gives products the appearance of being environmentally friendly without living up to that promise.
Answer: FALSE
10) The most admired—and most successful—companies in the world abide by high standards of business and marketing conduct that dictate serving consumer interests as well as their own
Answer: TRUE
11) Raising the level of socially responsible marketing calls for a three-pronged approach that focuses on the community, the environment, and the marketplace.
Answer: TRUE
111) One of the environmental issues that marketers need to stay on top of is the changing role of governments.
Answer: TRUE
112) Often the more committed a company is to sustainability and environmental protection, the more dilemmas that can arise.
Answer: TRUE
137) Bait-and-switch advertising attracts buyers under false pretenses.
Answer: TRUE
138) Teachers and parents are divided about the ethics of the increasingly heavy marketing push involving children
Answer: TRUE
24) Which of these terms has been used to express worries about the negative consequences of cause marketing?
B) Consumption philanthropy
41) How does the shoe firm TOMS use cause marketing?
B) Donating a pair of shoes to needy children for every pair sold
122) Marketing communication that attracts buyers under false pretenses is known as ________.
B) bait-and-switch advertising
94) Providing misleading information or giving a false impression that products or practices are environmentally friendly without living up to that promise is known as ________.
B) greenwashing
32) How has Nokia been able to maintain its market share lead in many developing economies while losing its lead in parts of the developed world?
C) Low-cost products with the right functionality
101) Which of these is identified in the chapter as one of the factors holding back progress toward more environmentally friendly products?
C) Many consumers are unwilling to sacrifice product performance and quality for genuinely green products
99) Amazon's $2 billion internal venture-capital fund focused on technology investments in transportation, energy generation, battery storage, manufacturing, and food and agriculture is an example of which domain of corporate social responsibility?
C) Promoting sustainability
28) ________ adopts successful solutions developed to meet the needs and constraints of a developing market to create an inexpensive product that can be introduced as a cheaper alternative in developed markets.
C) Reverse innovation
124) If a car dealership advertises a $32,000 price for a certain model but then tells customers who come in to buy it that they are required to buy a $6,000 upgrade package, the dealership's communication qualifies as ________.
C) bait-and-switch advertising
134) "The tastiest pizza in the universe" is an example of ________.
C) puffery
39) When the Centers for Disease Control and Prevention promoted mask-wearing, social distancing, and other steps to mitigate the spread of Covid-19, it was engaged in ________.
C) social marketing
92) How have Whole Foods, Wegmans, Target, and Walmart helped preserve worldwide fish populations?
D) By longer selling fish caught in areas subject to overfishing or in a manner likely to harm other marine life or habitats
19) Which of these is NOT a focus of corporate social responsibility in the workplace?
D) Community education
132) Which of these marketing practices does NOT cross the line into unethical or illegal behavior?
D) Factual comparisons of competitive products
131) Why did the Federal Trade Commission issue a cease-and-desist order against the makers of POM Wonderful pomegranate juice?
D) For making unsubstantiated health claims for the juice
135) ________ technology enables marketers to track consumers' daily routines, frequently visited establishments, and even their movements within a retail store.
D) Geolocation
93) How did an acquisition put Green Mountain Coffee Roasters in a sustainability quandary?
D) It acquired Keurig and the dilemma of its nonrecyclable coffee pods
3) Which of these is NOT identified as a reason companies engage in prosocial activities and invest in corporate social responsibility?
D) Maximizing social capital return for angel investors, the first group of investors to help launch the company
53) Which of these is NOT one of the benefits firms can realize from investing in corporate social responsibility in their workplaces?
D) Reduced employee benefit costs
97) Which of these is NOT one of the five behaviors encouraged by the Common Threads Initiative?
D) Refuse
59) ________ marketing by nonprofit or government organizations aims to further a cause.
D) Social
47) Social marketing is similar to cause marketing in that both aim to ________.
D) benefit the community in which the company operates
40) Eyewear marker Luxottica's OneSight family of charitable vision-care programs, which provide free vision screenings, eye exams, and glasses to millions of needy people in North America and developing countries around the world, is an example of ________.
D) cause marketing
8) United Way focuses its efforts on programs that deliver ________ that benefit(s) specific communities.
D) measurable outcomes
6) In addition to the environment and the marketplace, the three-pronged approach of socially responsible marketing focuses on ________.
D) the community
31) ________ entails a company taking a stand on an important-typically controversial-social, economic, environmental, or political issue.
E) Brand activism
125) Which of these tactics are advertisers legally allowed to use in the United States?
E) Puffery
36) Nike's decision to prominently feature former San Francisco 49ers quarterback Colin Kaepernick in support of his stance against police killings of Black Americans was an example of ________.
E) brand activism
50) A successful cause marketing program can accomplish all these laudable goals EXCEPT ________.
E) reducing a firm's fixed costs
21) Firms of Endearment, the term coined by Raj Sisodia, David Wolfe, and Jag Sheth, refers to companies that succeed in doing well ________.
A) by doing good
61) Implementing workplace corporate social responsibility programs can be accomplished by a company's management alone.
Answer: FALSE
109) Once a firm touts an environmental initiative, it can become a target for criticism.
Answer: TRUE
60) If employees think that the company takes the principles of corporate social responsibility to heart, they are more likely to do so themselves.
Answer: TRUE
62) Beloved companies often spend less on marketing than their peers because admiring customers do most of the marketing for them.
Answer: TRUE
63) Corporate philanthropy as a whole is on the rise
Answer: TRUE
64) Cause-related marketing can backfire if consumers question the link between the product and the cause
Answer: TRUE
127) How many U.S. households does the data-tracking firm Acxiom have in its database that tracks the behavior of people offline, online, and on their mobile devices?
B) 126 million
133) What is advertising "puffery"?
B) Simple exaggerations that are not meant to be believed
22) Which of these behaviors is NOT characteristic of senior management in well-loved companies?
B) Using themselves as examples of the rewards of success
44) Given the complexity of developing and implementing a successful social marketing campaign, organizations should ________.
B) approach these campaigns in a systematic and disciplined fashion
1) Taking a more active, strategic role in corporate social responsibility is thought to benefit every one of these groups EXCEPT ________.
B) competitors
49) Associating a company's brands with a relevant cause can benefit the company in all these ways EXCEPT ________.
B) insulating executives from criticism
17) In addition to creating value for the company, its customers, and its collaborators, corporate social responsibility involves creating value for ________.
B) the community in which a company operates
37) Coca-Cola's collectible Polar Bear aluminum bottle in support of the World Wildlife Fund is an example of ________.
C) social marketing
58) Which of the following is true regarding cause marketing?
D) Most firms choose causes that fit their corporate or brand image and matter to their employees and shareholders.
45) Companies that speak out against legislative efforts that they believe will suppress votes are engaging in ________.
D) brand activism
52) Marketers refer to the largest but poorest group of the world's population as ________.
D) the bottom of the pyramid
27) Bottom of the pyramid (BOP) refers to ________
D) the largest but poorest group of the world's population
7) ________ are all entities directly or indirectly influenced by the actions of the company, rather than just with shareholders, who actually own the firm.
E) Stakeholders
123) If a retailer advertises $29 blue jeans that it doesn't actually have in stock and when consumers arrive they are told the $29 jeans were returned to the factory, then store clerks steer them to $69 jeans, the company is guilty of ________.
E) bait-and-switch advertising
128) What privacy objection did some Nordstrom customers raise that prompted the clothing retailer to drop a mobile app technology it was developing?
B) Being tracked via geolocation
34) ________ blends corporate social responsibility initiatives with marketing activities.
B) Cause marketing
5) Which three elements make up the triple bottom line?
C) People, planet, profit
48) Which of these is a potential disadvantage of a firm contributing to a cause with widespread corporate support, such as Susan G. Komen for the Cure?
A) A brand may find its contribution overlooked in a crowded field of supporters.
129) Why do some parents object to free branded materials such as Care Bear worksheets being available in daycare centers?
A) Concern that young children are too susceptible to such branding and advertising efforts
33) What market research technique did Nokia use to determine which features to include in mobile phones aimed at the bottom of the pyramid market?
A) Ethnography
55) Business efforts to improve work-life balance fall under which domain of corporate social responsibility?
A) Improving the workplace
4) Which of these moves did Stonyfield Farm make to mitigate the environmental impact of its manufacturing operations?
A) Offsetting its energy usage with an equivalent investment in environmental projects
46) For-profit companies define value in monetary terms, whereas nonprofits define it in terms of ________.
A) benefiting society
102) A company that touts the recyclability of its batteries without mentioning that one of the battery's chemicals is mined in an unsustainable manner could reasonably be accused of ________.
B) greenwashing
26) A company's reputation for social responsibility can affect customers' ongoing relationship with the firm in all these ways EXCEPT ________.
B) increased price sensitivity
103) Which of these is NOT one of the ways that Levi Strauss promotes water conservation with its Water <Less line of jeans?
C) Advocating for a ban on bottled-water sales
95) Which of these factors helped Clorox succeed with its Green Works household cleaning products?
C) An eco-friendly product with a very modest price premium
25) Corporate philanthropy influence consumers' opinions of a company in a variety of ways. Which of these is NOT one of the positive changes to a company's reputation that philanthropy can engender?
C) Being perceived as more innovative
43) How does the PRODUCT(RED) campaign help in the global fight against AIDS, tuberculosis, and malaria?
C) By donating profits from PRODUCT(RED)-branded products
106) According to one study, how many labels on allegedly green products focus on an eco-friendly benefit while omitting information about significant environmental drawbacks?
C) Half
18) Which of these is NOT a domain in which community-based corporate social responsibility typically occurs?
C) Promoting industry growth
54) Which of these is NOT one of the domains in which community-based corporate social responsibility typically occurs?
C) Supporting organized labor
23) Which of these is NOT one of the core principles of the Fair Trade foundation?
C) Sustainable investor returns
130) Which of these is a major concern about the 8- to 12-year-old tween market regarding privacy?
C) Their willingness to disclose their locations via mobile devices
91) Single-use coffee pods in the Keurig system have generated a lot of concern about their lack of recyclability, even though the disposal of used pods makes up ________ of their total environmental impact.
C) about 5 percent
2) Procter & Gamble has made ________ a key component of the company's marketing strategies.
C) brand purpose
56) The assertion that corporate social responsibility is not only the "right thing" but the "smart thing to do" means that ________.
C) it benefits companies that embrace it
20) Commitment to socially responsible causes is also likely to increase a company's ability to ________, motivate, and retain key employees.
C) recruit
9) Corporate social responsibility has become a priority for many organizations and is ingrained in their business models.
Answer: TRUE
126) What is the name of the European Union regulation that gives consumers control over their personal data?
B) General Data Protection Regulation
100) Which of these is part of the damage that greenwashing can cause?
B) Increasing consumer skepticism about green initiatives
51) Dawn dishwashing liquid has an unusual side benefit that makes it a natural for particular cause marketing campaigns. What is this product attribute?
B) It is the only product recommended by the U.S. Fish and Wildlife Service for cleaning birds caught in oil spills
98) Which of these was NOT listed in the chapter as one of the environmental trends that marketers need to be aware of?
B) Proliferation of virtual digital trash
121) ________ involves simple exaggerations that are not meant to be believed and that are permitted by law
B) Puffery
38) Which of these is NOT an example of a social marketing initiative?
B) Reducing regulatory burdens on manufacturing
29) When Nestlé repositioned its low-fat Maggi brand dried noodles—a popular, low-priced meal in rural Pakistan and India—as a budget-friendly health food in Australia and New Zealand, it was practicing ________.
B) Reverse innovation
107) ________ refers to the ability to meet humanity's needs without harming future generations.
B) Sustainability
104) Why would a clothing chain such as France's FAGUO decide to engage in such a seemingly unrelated effort such as planting trees?
B) To offset its carbon footprint
16) Healthy long-term growth requires marketers to satisfy a broad set of ________ and objectives.
B) constituents