Chapter 4 Quiz Questions

According to the text, which of the following is not one of the factors that influence the ethical decision-making processes in a marketing organization?

- Global environment

In order to justify direct-response marketing, a product really needs to be priced above Answers: a. $20. b. $50. c. $100. d. $10. e. $5.

a

4. Subway sells its food items through company-owned stores and through franchises. Subway uses ____ as a channel strategy.

a. multichannel distribution

With respect to retailing, what is the "party plan"? A consumer acts as a host and invites friends to view merchandise in a group setting, where a

salesperson demonstrates the products.

If Hefty Bags expresses concern that its products are having too great an impact on the pollution of groundwater under landfills, this concern is directly related to the firm's

social responsibility

Bundle pricing may be perceived to be of value by customers because

they prefer buying a combination of bundled products in a single transaction, which saves time, effort, and perhaps money.

1. If a microchip in a computer at the Pentagon failed, which method of transportation would be most appropriate to use to replace the chip immediately if one could get the new chip only from New York City?

airway

Socially responsible business practices have provided all of the following benefits except

reducing marketing costs.

According to the text, marketing ethics refers to principles and standards that define

- acceptable conduct in marketing.

One way in which marketers can demonstrate social responsibility is through programs in sustainability. Which of the following is not included as a goal of sustainability?

Answer: Focusing primarily on the external environment of the company

Any constituent who has a claim in some aspect of a company's products, operations, markets, industry, or outcomes is known as a(n)

Answer: Stakeholder

Home Depot's synergistic use of organizational core competencies and resources to address key stakeholders' interests and achieve both social initiatives and its business goals is an example of

Answer: strategic philanthropy

Sherri McRae wants to establish a fashion wholesaling firm. Because of the risks involved in the rapid obsolescence of high-fashion items, Sherri does not want to establish an organization in which she has title to the garments. Which of the following types of wholesale establishments has she ruled out?

Merchant wholesaler

An example of an emerging type of power shopping center might contain

Michael's, Office Depot, T.J. Maxx, and Best Buy

Priya knows that her company has a formal code of conduct, but she does not see this code being equally and consistently applied to all employees. Priya believes that this sporadic enforcement of the formal code only enhances the ____ for committing unethical acts.

Opportunity

The Transportation Division of the GE Corporation is located in a small city that has limited economic growth at this time. Due to the condition of the local school system, GE contributed $2 million to repair and revive it, stating that GE believed in education for the community. This action would imply that GE is in which level of the pyramid of social responsibility?

Philanthropic

Greenwashing is what type of marketing ethics issue?

Promotion-related

Which type of retail outlet can have up to 200,000 square feet?

Superstores

Which of the following is not a dimension of social responsibility and marketing citizenship?

Technological

The effect that coworkers have on the ethical decision-making process depends on a person's exposure to ethical and unethical behavior. Which of the following statements about ethical decision making is true?

The more a person is exposed to unethical activity in the organization, the more likely he or she will behave unethically.

____ adds time and place utility to a product by moving it from where it is made to where it is purchased and used.

Transportation

Apple makes its computers available through its own stores, its website, and some major retailers. This is an example of Answers: a. multichannel distribution. b. tying agreements. c. vertical integration. d. horizontal integration. e. exclusive dealing.

a

Which of the following statements about implementing an ethics and legal compliance program is false? Answers: a. It rarely needs to be revised. b. It requires taking reasonable steps in response to violations of standards. c. It requires open communication. d. It helps create a buffer zone on issues that could trigger serious legal complications for the company. e. It requires consistent enforcement of standards from the code of conduct.

a

​________________ promote ethical behavior by reducing opportunities for unethical behavior; employees know what is expected of them and what kind of punishment follows if rules are violated. Answers: a. Codes of conduct b. Mission statements C.​ Corporate objectives D. ​Human resources policies e. Compensation plans

a

3. Kolder Inc. is using a new just-in-time inventory management system that requires ordering smaller quantities of parts more frequently. The success of its business depends significantly on receiving these parts very quickly, so like many other companies using just-in-time, Kolder Inc. is relying more on the ____ mode of transportation despite its expense

airway

All companies have a responsibility to ____ so they can provide a return on investment to their owners and investors, create jobs for the community, and contribute goods and services to the economy.

be profitable

What is the major difference between social responsibility and marketing ethics? Answers: a. Marketing ethics varies by industry whereas social responsibility involves universal rules of conduct. b. There is legislation that deals with marketing ethics, but none for socially responsible practices. c. Social responsibility deals with the total effect of marketing decisions on society, whereas marketing ethics relates to individual and group evaluations in marketing situations. d. Marketing ethics is concerned with organizational practices, and social responsibility is concerned with individual behavior. e. There is no difference; they are synonymous terms.

c

When Gabriella logs on to Dell's website, she sees a notebook model priced well below $1,000. As she continues through the site to view the other options, she realizes the first one she saw was the cheapest model available, but she of course wants more features. Dell is utilizing Answers: a. penetration pricing. b. captive pricing. c. bait pricing. d. bait and switch. e. price lining.

c

Competition-based pricing is Answers: a. not able to increase sales. b. used when competing products are heterogeneous. c. not useful as a method of increasing market share. d. used when costs and revenues are secondary to competitors' prices. e. not useful if the competing products are homogeneous.

d

Which of the following is least likely to be a factor affecting the selection of marketing channels? Answers: a. Product attributes b. Competition c. Environmental forces d. Product packaging e. Customer characteristics

d

Various stakeholders and ____ determine the acceptable standards of conduct involving ethics. Answers: a. the federal government b. governmental agencies c. the industry leader's ethics d. various self-regulating bodies e. the organization's ethical climate

e

Which of the following is not one of the four objectives that environmentalists believe companies should implement in order to sustain the natural environment? Answers: a. Make prices reflect the true cost of a product. b. Eliminate the concept of waste. c. Make environmentalism profitable. d. Reinvent the concept of a product. e. Force consumers to recycle products.

e

5. When Zappos, Inc., an online marketer of shoes, accessories, and clothing, contracts out the physical distribution task to third parties such as UPS, this arrangement is called ____. This is due to the fact that UPS does not have managerial authority within the Zappos marketing channel.

outsourcing

The pricing strategy that assumes that demand is relatively inelastic over certain price ranges is called

price lining.

Consumers receive the benefits of place utility when

products are available in locations where consumers want to buy them.

​Target has worked closely with suppliers such as Calphalon to offer customers a high-quality, branded product that is only available in Target stores. Due to these partnerships, Target has established a high level of perceived _______ among their customers since they provide a large range of brand-name merchandise at reasonable or below-competition prices.

value

During the 1990s, Nike was sharply criticized after it was discovered that some of its global suppliers and contractors were using child labor in their factories. Nike itself did not use child labor and had ethical policies that forbade the use of child labor. Why did consumers still hold Nike accountable?

​It is the most visible and powerful member of the supply chain.

______________ have special expertise in core physical distribution activities such as warehousing, transportation, inventory management, and information technology and can often perform these activities more efficiently.

​Third-party logistics firms

While marketing ethics creates ___________, philanthropic activities create ______________.

​trust; goodwill

George is excited because he has obtained the price list of his company's major competitor. His supervisor, Homer, is also optimistic. However, he has much more experience in the industry than George and cautions him that just because they have access to their competitor's price list Answers: a. ​doesn't mean their firm will be able to match their competitor's prices. b. doesn't mean they reflect the actual prices at which competitive products are sold. c.​doesn't mean the list has not been completely fabricated. d. doesn't entail actually using the price list when establishing prices. e.​doesn't mean that knowing competitor prices is important.

b

​All of the following are differences between warehouse clubs and discount stores, except Answers: a. products in warehouse clubs are usually stacked on pallets, but not in discount stores b. ​warehouse clubs carry a deeper selection of fewer product categories than discount stores c. ​warehouse clubs offer fewer products than discount stores d. ​warehouse clubs spend less on advertising than discount stores e. warehouse clubs require a membership and discount stores do not

b

According to the text, which of the following is not one of the factors that influence the ethical decision-making processes in a marketing organization? Answers: a. Opportunity b. Individual factors c. Global environment d. Organizational relationships e. Organizational pressure

c

All of the following are factors that influence the ethical decision-making process except Answers: a. organizational pressure. b. individual factors. c. salary or wages. d. opportunity. e. organizational culture.

c

Assuming everything else is equal, the most cost-efficient way for British Petroleum to transport crude oil from remote oil drilling sites in central Alaska to shipping terminals on the Alaskan coast would be Answers: a. intermodal transportation. b. railroads. c. pipelines. d. tanker trucks. e. waterways.

c

StarKist Tuna has frequently extolled its dolphin-safe methods of catching tuna. This is an example of Answers: a. cause-related marketing b. community relations. c. sustainability marketing. d. strategic philanthropy. e. consumerism.

c

The best way to reduce overall distribution costs is to Answers: a. find the cheapest price for each function and use them to create the system. b. lower the service standards that the company has. c. use a total-cost approach to analyze and evaluate the entire system. d. reduce the number of distribution functions that are necessary. e. minimize the costs associated with materials handling and transportation.

c

The most basic principles of marketing ethics are _____________ to encourage marketers to conform to society's expectations for conduct. Answers: a. philanthropic responsibilities b. economic responsibilities c. written as laws and regulations d. universally accepted behaviors e. included in the marketing code of ethics

c

Which of the following may include special attractions such as amusement parks or skating rinks? Answers: a. Community shopping centers b. Regional shopping centers c. Superregional shopping centers d. Neighborhood shopping centers e. Convenience shopping centers

c

Which of the following statements about social responsibility is correct? Answers: a. Social responsibility dimensions do not include economic 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 philanthropic concerns. e. Social responsibility refers to principles and standards that define acceptable conduct in marketing as determined by various stakeholders.

c

____ ethical issues generally surface when companies fail to disclose risks associated with a product or information regarding its function, value, or use. Answers: a. Promotion-related b. Corporate c. Product-related d. Safety

c

If Hefty Bags expresses concern that its products are having too great an impact on the pollution of groundwater under landfills, this concern is directly related to the firm's Answers: a. ethical responsibility. b. corporate benevolence. c. social responsibility. d. marketing concept.1 e. legal responsibility.

c

2. WTA is a manufacturer of very large blades used in energy-reducing wind turbines. What is most likely the most expensive physical distribution function associated with the WTA product?

a. Transportation of the product

For the Christmas season, a major toy retailer decided to donate to Angel Tree, an organization that provides gifts to the families of those who are incarcerated. The retailer claimed that it would donate 10 percent of the proceeds of all toys sold in the month of December to the Angel Tree organization. This is an example of:

cause related marketing

Codes of conduct are also frequently known as

codes of ethics

The three primary bases for developing prices are

demand, competition, and cost.

When establishing prices, a marketer's first step is to

develop pricing objectives.

If a retailer needed help with store design and training sales personnel, it would most likely use the services of a Answers: a. cash-and-carry wholesaler. b. full-price wholesaler. c. rack jobber. d. technical wholesaler. e. full-service wholesaler.

e

An open-air shopping center that features upscale specialty, dining, and entertainment stores, usually owned by national chains, is generally called a(n)

lifestyle shopping center

If Purina forced Kroger's grocery chain to place all of its products in the stores' most favorable locations, it would be

exercising channel power.

Supplier ABC requires all its channel members to purchase all of its products in order to be able to purchase any of its products. This is an example of

full-line forcing

Actions that promote human health and welfare address the ____ dimension of the pyramid of social responsibility

-philanthropic

Honeybees are disappearing at an alarming rate, and since they pollinate about a third of all foods we eat, it is an important concern. That's why Haagen-Dazs launched a microsite to E2increase the awareness of the issue. In addition, it launched a "Twitcause" campaign on Twitter, raising $7,000 in two days. This example illustrates the positive consequences of

-social responsibility.

Which of the following employees is most responsible for setting the ethical tone for the entire marketing organization?

Chief executive officer

​________________ promote ethical behavior by reducing opportunities for unethical behavior; employees know what is expected of them and what kind of punishment follows if rules are violated.

Codes of Conduct

Target's Take Charge of Education program donates 1% of a customer's total purchase to the school of his or her choice. What social responsibility issue does this program address?

Community relations

According to some environmentalists, what are the three types of products that all products should be reduced to?

Consumables, durable goods, and unsalables