MKTG 409 Ch. 4 Questions

Which of the following is an example of a price-related ethical issue?

Bait and switch practices

Every year Walgreens sells red noses and other merchandise for Red Nose Day, which is a national fundraising campaign run by Comic Relief USA, a non-profit devoted to raising money and awareness to end child poverty. This event that Walgreens hosts each year is most likely which of the following?

Cause-related marketing

Which of the following is a primary difference between cause-related marketing and strategic philanthropy?

Cause-related marketing is short term, while strategic philanthropy is a long-term approach that uses its strengths to achieve organizational and social benefits.

Which of the following statements best reflects environmentalists' concerns regarding pricing?

Companies implementing sustainability practices must do so profitably and price products so that production costs as well as use of natural resources are recaptured.

The European Union (EU) has been more proactive in adopting sustainability practices and encouraging organizations to be better corporate citizens. Organizations in Europe may apply for the _______ designation to indicate their products are less harmful to the environment than competing products based upon scientifically determined criteria.

EU Ecolabel

The Garlic Press is a locally owned retailer who specializes in products for the home chef and a variety of gift items. It prides itself on offering products that are not available in the big box stores and like to partner with suppliers who are committed to social responsibility. At the recent wholesale market in Atlanta, Georgia, the buyer for linens, Tabitha Ringenberger was interested in purchasing table cloths, napkins, and placemats from a firm who produces the products from recycled materials. The suggested retail prices for placemats were $9.99 each and the wholesale price was $7.99—providing a small markup of only $2 on each placemat. Although Tabitha liked the products, she didn't feel the investment would be appropriate since she typically likes to achieve a 100% markup on wholesale prices. Which dimension of social responsibility is illustrated by Tabitha's decision?

Economic

Amanda believes that the corporate culture at her company is best conveyed in informal ways. What are some informal ways that corporate culture is most likely to be expressed?

Extracurricular activities and work habits

Bribery is a pricing-related ethical issue.

False

Codes of conduct (ethics) must be detailed enough to take every situation into account.

False

Individual values are more likely to influence organizational ethical decision making than organizational culture.

False

Strategic philanthropy involves linking a firm's products to a particular social cause on a short-term basis.

False

Evaluate the truthfulness of this statement: Strong ethical standards are necessary to completely eliminate misconduct from the organization.

False: Some people always do things in their own self-interest, regardless of organizational goals or accepted moral standards.

Which of the following tactics can improve ethical conduct within an organization?

Fire employees who engage in unethical behaviors

Frito-Lay developed a bag for its chips that was biodegradable. While praised by environmentalists, soon it received many complaints that the bags were too loud when they crinkled. Frito-Lay ended up abandoning the packaging. What does this situation demonstrate about socially responsible behavior?

It can be difficult to balance all of society's demands.

The Federal Trade Commission (FTC) is an organization that plays a significant role in defining the principles and standards that define acceptable conduct in the marketing, promotion and advertising of products and services in the United States. Which one of the following statements is true about the organization?

Its primary mission is to protect consumers and promote competition.

Four basic rights are included in the consumer "bill of rights," which was included in a speech to Congress by President _______ in a special message about protecting the consumer interest.

John F. Kennedy

The government has provided tax credits toward individuals who purchase electric vehicles. This is an attempt to do which of the following?

Make prices reflect the cost

Which of the following is often a better predictor of unethical activities than are personal values?

Opportunity

Which of the following is one of the three factors that influence the ethical decision-making process?

Organizational culture

What are some of the common price-related ethical issues?

Predatory pricing and price fixing

Many consumer product manufacturers include information on their labels that the products are cholesterol free and low fat. These claims, which are prominently displayed on products such as cookies and crackers, provides an inference that the product is "healthy" or "good" for the consumer. This practice involves an ethical dilemma related to which marketing mix element?

Product

Bridgewater, Inc. produces its industrial components in several developing countries outside the United States. The majority of Bridgewater's customers are in the U.S. and Canada. One of Bridgewater's customers is Craft Care, who uses Bridgewater components in the production of child car seats. Recently, there was a recall of Craft Care's car seats due to serious injuries, which the company has traced back to Bridgewater's components. If Bridgewater knew about the faulty components, but failed to notify Craft Care, it would have been engaging in unethical behavior with regard to which of the following marketing issue areas?

Product-related

Which of the following is true about social responsibility?

Social responsibility improves marketing performance.

Which of the following is an informal way of expressing organizational culture?

Stories

Which of the following best defines marketing citizenship?

The adoption of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities that their stakeholders expect of them.

When an ethical issue arises in the supply chain, which of the following is most likely to be held accountable for misconduct?

The channel member managing the product

What is the greatest determinant of ethical conduct in the organization?

The company's ethical culture

Which of the following is true about codes of ethics?

They should be updated periodically.

Which of the following do codes of ethics NOT do?

They take every situation into account

A rule of thumb for resolving ethical and social responsibility issues is that if an issue can withstand open discussion that results in agreement or limited debate, an acceptable solution may exist.

True

Many environmentalists and marketers believe that companies should attempt to reinvent the concept of a product as part of their sustainability goals. Which of the following includes the specification or classification of products that companies should have?

Unsalables, consumables, and durable goods

Merrill Lynch Wealth Management demonstrates _______ marketing through its partnership with Water.org that develops clean water solutions for communities around the globe.

cause-related

If Starbucks were to donate 5 percent of every coffee purchase to shelters for victims of domestic abuse for one month, this would be an example of _______.

cause-related marketing

Most experts agree that the _______ sets the ethical tone for the entire marketing organization.

chief executive officer

Ethical standards for a company should _______.

conform to industry and societal norms of ethical conduct

Ethics relates to individual and group decisions whereas social responsibility _______.

deals with the total effect of marketing decisions on society

Counterfeit beauty products have been found to contain harmful chemicals, arsenic, mercury, and even urine. These counterfeit products can be harmful to consumers. Counterfeit products are a _______ issue.

distribution

Meredith Downs, a marketing consultant to organizations regarding corporate social responsibility always emphasizes that firms must first recognize their _______ responsibility to be profitable and provide a return on investment to their owners and investors as well as create jobs and contribute goods and services to the economy.

economic

As discussed in the text, the most basic levels of social responsibility are _______ and _______.

economic; legal

A(n) is an identifiable problem, situation, or opportunity that requires an individual or organization to choose from among several actions that must be evaluated as right or wrong, ethical or unethical.

ethical issue

According to your text, a well-implemented _______ and a strong _______ result in the greatest decrease in ethical risks for an organization.

ethics program; corporate culture

Research into marketing ethics suggests that the _______ associated with an issue, the more likely it will be recognized as an ethics issue and the more important it will be in making an ethical decision.

greater the consequences

An ethical issue in the area of promotion is _______, which occurs when products are promoted as being more environmentally friendly than they really are.

greenwashing

Jared Williams was raised in a family that put others first and from a young age, Jared witnessed his family participate in a variety of community-oriented events through their service on the school board, dedication to help raise funds for the American Cancer Society through its Relay for Life event, and care and concern they showed all people. Jared learned that humility and generosity were desired qualities since his parents were well-liked and respected members of the community. Jared is a sales manager and often partners with local nonprofit organizations as a way to involve his sales staff and other members of the company in community service activities, which build cohesiveness and camaraderie among staff members. The influence of Jared's family illustrates the role of _______ in determining ethical decisions in marketing while his leadership in organizing community service activities illustrates the role of _______ in ethical decision-making.

individual factors; organizational relationships

Ethical choices in marketing are most often made _______.

jointly

The most basic principles related to marketing ethics, which encourage marketers to conform to society's expectations for conduct are _______.

laws and regulations

ACME Corp. is adopting a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities that its stakeholders expect of it. This best describes _______.

marketing citizenship

Principles and standards that define acceptable conduct in marketing as determined by various stakeholders are known as _______.

marketing ethics

Principles and standards that define acceptable marketing conduct as determined by various stakeholders is referred to as _______.

marketing ethics

As a firm fulfills its basic economic responsibilities, it must simultaneously _______.

obey laws and regulations

In the absence of ethics and compliance programs, employees will generally make decisions based primarily on their _______.

observations of how coworkers and superiors behave

April works as a sales representative for a regional snack foods company that specializes in various flavors of potato chips cooked in peanut oil. The snacks are preferred over the major brands in grocery and convenience stores in the regional market. April has been hoping to qualify for a special incentive contest and is very close to reaching her sales goal to qualify for an all-expense paid cruise to the Caribbean. April decides to slightly adjust the amount of product ordered by each of her customers since she knows that the chips will sell and it's likely the customers won't notice the slight increase in quantity ordered. This is an example of how _______ influences ethical decision-making.

opportunity

At Shania's job, promptness is heavily stressed. However, Shania's supervisor never punishes anyone for being tardy, no matter how late they come in. Shania therefore takes advantage of this to sleep in an extra hour each day. This failure on the part of Shania's supervisor is an example of how _______ factors can influence employee conduct.

opportunity

Conditions that limit barriers or provide rewards are known as

opportunity

Roberta is the social media manager for a regional hospital and has participated in several training sessions focused on ethics and ethical behavior. The hospital prominently displays its mission and vision statement and has a formalized code of ethics, which is communicated to employees. One of the ethical principles that's part of the hospital's code of ethics is to be honest and truthful and to tell the truth in all circumstances. Roberta has heard that sometimes medication errors occur and that patients may not be informed if no adverse or negative outcomes result from the administration of the incorrect medication. Roberta is concerned about the application and enforcement of the code of ethics and believes that the _______ could impact employees' ethical decisions.

opportunity factor

Citibank was recently fined $35 million by the Consumer Financial Protection Bureau and ordered to refund $700 million to customers who were affected by the organization's use of deceptive marketing practices which resulted in overcharging customers. Between 2003 and 2012, the bank's telemarketing sales representatives misrepresented fees, used leading questions and provided ambiguous answers to customers' questions. Citibank is reevaluating the compensation and incentive-based bonus system that's used to motivate and reward employees who serve as account representatives in telemarketing positions. The behavior of Citibank employees to act unethically was most likely a result of _______.

opportunity factors that influence ethical decision-making

ACME Corp. is striving to foster a set of ethical values, beliefs, goals, norms, and rituals that members of an organization share. This is best described as _______.

organizational culture

Carmella Rodriguez is employed as an inside sales representative at a company that provides information technology products, expertise, and services to small, medium, and large businesses. Carmella works in the education sector and is working hard to qualify for a sales contest sponsored by Apple to promote its iPad to the K-12 education market. Carmella was speaking with Nicole, another sales representative at the firm who is close to reaching the contest goal. Nicole tells Carmella that she's going to have one of her friends place an order for the iPads and then cancel the order after the contest date ends. Carmella asks Nicole whether this is really OK, but Nicole says that people do it all the time! The interaction between Carmella and Nicole illustrates the important role of _______ in influencing ethical decisions in marketing.

organizational relationship factors

Businesses that promote human welfare or goodwill and engage in efforts to improve the quality of life are fulfilling the _______ responsibility related to corporate social responsibility.

philanthropi

Microsoft has been recognized as one of the World's Most Ethical Companies and the Bill and Melinda Gates Foundation's mission states: "At the Gates Foundation, we believe every person deserves the chance to live a healthy, productive life." The foundation supports organizations that serve causes related to poverty, health, and education. The Microsoft organization is operating at the _______ level of the pyramid of corporate social responsibility.

philanthropic

The _______ dimension is at the top of the corporate social responsibility pyramid and includes a company's commitment to be a good corporate citizen and promote human welfare or goodwill.

philanthropic

Automobile manufacturers may sometimes issue recalls due to quality problems. BMW, which produces Mini Coopers, issued a product recall in 2012 after the National Highway and Traffic Safety Administration (NHTSA) had an alarming number of reports related to electrical fires. BMW-Mini Cooper first learned of engine fires in 2009 and suspected water pump failures might be the source of the problem. BMW-Mini Cooper's failure to act more quickly in response to the water pump issue causing electrical fires is an example of a _______ related ethical issue.

quality

Patagonia is a clothing manufacturer based in California and encourages consumers who purchase their products to donate the items to local charitable organizations or to return the used products back to Patagonia so it can be repurposed or recycled. This initiative supports Patagonia's efforts to implement the _______ goal of sustainability.

reinvent the concept of a product

The consumer "bill of rights" included four basic rights: _______.

right to be heard, right to safety, right to be informed, and the right to choose

Panera Bread advertises that it bakes bread before sunrise and donates after sunset. The company is committed to "live consciously" and makes donations of leftover product to food banks and shelters in the local community. Panera's action of donating leftover product demonstrates it is concerned about the _______ dimension of corporate social responsibility.

social philanthropic

Engineers at Caterpillar, Inc. have been working to design their products so that they are more fuel efficient and have lower emissions to enable their customers to reduce their carbon footprint and improve air quality. Caterpillar's concern about air quality, fuel economy, and the carbon footprint of its customers is related to the firm's _______.

social responsibility

A _______ orientation is one where organizations consider the diverse perspectives of different groups in their daily operations and strategic planning.

stakeholder

A _______ approach involves the synergistic use of organizational core competencies and resources to address key stakeholders' interests and to achieve both organizational and social benefits.

strategic philanthropy

Sabastian Richer was excited about joining a major insurance brokerage company as an account executive since the company partnered with one of his favorite charities—an organization that raises funds to support research related to pediatric cancer as well as provide services to patients and their families. Sabastian knows the importance of research and support to children with cancer since he lost his younger sister to a rare form of brain cancer. In addition, the company encourages employees to give their time to charitable causes and employees can volunteer up to three days each month. The company also matches employee contributions to charitable organizations and provides payroll deduction to participate in the annual United Way campaign. The insurance brokerage company has adopted a _______ approach to social responsibility.

strategic philanthropy