MKTG ch 4, MKTG Ch 4
Codes of conduct are also frequently known as a) ethics mandates. b) codes of ethics. c) corporate culture. d) ethics compliance programs. e) moral codes.
b
Which of the following is not a dimension of social responsibility and marketing citizenship?
environmental
There are few costs associated with being socially responsible and satisfying society's demands.(true or false)
false
Cause related marketing
involves linking a firm's products to a particular social cause on a sort-term basis.
Cameron Inc. is a very profitable automobile repair shop. The company is well known for its great service and involvement in the community, but it fails to properly dispose of its used oil as outlined in environmental regulations. Cameron is failing in its ______ responsibilities.
legal
The adoption of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities expected by stakeholders is called
marketing citizenship
As a firm fulfills its basic economic responsibilities, it must simultaneously
obey laws and regulations
Social responsibility
organization's obligation to maximize its positive impact and minimize its negative impact on society.
A business that contributes resources to the community to improve the quality of life is taking on a(n) ___________ responsibility.
philanthropic
Actions that promote human health and welfare address the _______ dimension of the pyramid of social responsibility.
philanthropic
At the top of the pyramid of social responsibility for business are ___________ responsibilities.
philanthropic
McDonald's supports and funds Ronald McDonald houses for the families of terminally-ill children to stay in to be near their loved ones. McDonald's action demonstrates the fulfillment of ______ responsibility.
philanthropic
The most basic principles of marketing ethics are
written as laws and regulations.
Which of the following is a primary difference between cause-related marketing and strategic philanthropy? a) Cause-related marketing is short term only while strategic philanthropy is an ongoing approach that lasts for years or even decades. b) Strategic philanthropy fulfills a firm's primary social responsibilities while cause- related marketing does not. c) Cause-related marketing is unlikely to have a positive effect on society while strategic philanthropy always benefits society. d) Strategic philanthropy can take on both a financial and nonfinancial format while cause-related marketing only involves financial contributions. e) Customers are likely to feel good about themselves when supporting a cause- related marketing campaign but are unlikely to notice strategic philanthropy.
D
Which of the following refers to a firm's specific development, pricing, promotion, and distribution of products that do not harm the environment? a) Marketing ethics b) Social responsibility c) Environmental marketing d) Green marketing e) Conservation marketing
D
According to President Kennedy's consumer bill of rights, the idea that consumers' interests should receive full and sympathetic consideration in the formulation of government policy is known as the right to a) be heard. b) be informed. c) choose. d) performance. e) safety
a
Avon's Breast Cancer Awareness Crusade, which has raised nearly $400 million for community-based breast cancer education and early detection services, illustrates the positive consequences of a) social responsibility. b) corporate benevolence. c) green marketing. d) legal responsibility. e) economic responsibility.
a
Companies that incorporate ethics and social responsibility into their strategic plans are likely to experience a) improved marketing performance. b) increased lawsuits. c) negative publicity. d) reduced costs. e) disappointed shareholders.
a
If Hefty Bags expresses concern that its products are having too great an impact on the pollution of ground water under landfills, this concern is directly related to the firm's a) social responsibility. b) marketing concept. c) profitability. d) ethics. e) distribution system.
a
Sometimes business must find a balance between society's demand for social responsibility and investors' desires for profits. This is an example of a(n) ___________ responsibility. a) Economic b) Ethical c) Legal d) Cost e) Philanthropic
a
The adoption of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities expected by stakeholders is called a) marketing citizenship. b) social responsibility. c) stakeholders. d) cause-related marketing. e) strategic philanthropy.
a
The interaction between _____ and _____ helps determine the ethical value system of the firm. a) corporate culture; executive leadership b) front-line employees; customers c) customers; executive leadership d) managers; executive leadership e) front-line employees; management
a
Various stakeholders and _______ determine the acceptable standards of conduct involving ethics. a) the organizations' ethical climate b) the federal government c) various self-regulating bodies d) governmental agencies e) the industry leaders' ethics
a
According to the text, marketing ethics refers to principles and standards that define
acceptable conduct in marketing
Product testing for reliability and quality helps to ensure a consumer's right to a) be heard. b) be informed. c) choose. d) performance. e) safety
e
Socially responsible business practices have provided all of the following benefits except
reducing market costs
Marketing ethics
refers to principles and standards that define acceptable conduct in marketing.
Although openness is not the solution to ethics issues, it does create trust and facilitates learning relationships.(true or false)
true
Opportunity is a favorable set of conditions that limit barriers or provide rewards.(true or false)
true
Top management sets the ethical tone for the entire organization. (true or false)
true
When marketing activities deviate from accepted standards, the exchange process can break down, resulting in customer dissatisfaction, lack of trust, and lawsuits.
True
Which of the following is not one of the four dimensions of social responsibility presented in your text?
Consumerism
Kaitlyn understands that her local catering business has certain responsibilities to society. She knows that she must abide by the laws that apply to her business and try to make a profit. What are the other obligations Kaitlyn should know?
Ethical and philanthropic
Codes of conduct (ethics) must be detailed enough to take every situation into account. (true or false)
False
Employees can easily determine what behavior is acceptable even in organizations that do not have ethics compliance programs and policies on conduct.(true or false)
False
Marketing citizenship refers to an organization's obligation to maximize its positive impact and minimize its negative impact on society. (true or false)
False, Marketing citizenship is the adoption of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities expected by stakeholders.
Strategic philanthropy involves linking a firm's products to a particular social cause on a sort-term basis.(true or false)
False, Strategic Philanthropic is the synergistic use of organizational core competencies and resources to address key stakeholders interests and achieve both organizational and social benefits
Which of the following statements about social responsibility is not correct?
Social responsibility refers to principles and standards that define acceptable conduct in marketing as determined by various stakeholders.
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.(true or False)
True
Who of the following is a famous consumer activist? a) Ralph Nader b) Jack Williams c) Ross Perot d) Abraham Maslow e) Adam Smith
a
What is the base level on which social responsibility is built?
being profitable
According to some environmentalists, what are the three types of products that all products should be reduced to? a) Durable goods, natural resources, and unsalables b) Nondurable goods, durable goods, and consumables c) Consumables, durable goods, and unsalables d) Environmental goods, recyclables, and salables e) Permanents, temporaries, and renewable resources
c
A synergistic use of businesses' core competencies to address stakeholders' interests and achieve both organizational and social benefits is known as a) cause-related marketing. b) marketing ethics. c) economic responsibility. d) strategic philanthropy. e) financial assistance.
d
A business that contributes resources to the community to improve the quality of life is taking on a(n) ___________ responsibility. a) Economic b) Ethical c) Legal d) Cost e) Philanthropic
e
All of the following are factors that influence the ethical decision-making process except a) opportunity. b) individual factors. c) organizational culture. d) organizational pressure. e) salary or wages.
e
When is the best time to deal with marketing exchange problems concerning ethics? a) Right before the problem is made public b) After the problem has received extensive media attention c) Immediately after the problem is discovered d) When lawsuits are brought against the company e) During the strategic planning process
e
After news reports that pharmaceutical giant Merck was aware that its arthritis-fighting drug Vioxx may cause heart problems, the firm's stock plummeted and hundreds of lawsuits were filed against the company. This demonstrates what can occur if firms ignore
social responsibility.
Avon's Breast Cancer Awareness Crusade, which has raised nearly $400 million for community-based breast cancer education and early detection services, illustrates the positive consequences of
social responsibility.
If Hefty Bags expresses concern that its products are having too great an impact on the pollution of ground water under landfills, this concern is directly related to the firm's
social responsibility.
Any constituent who has a claim in some aspect of a company's products, operations, markets, industry, or outcomes is known as a(n)
stakeholder
Companies that are considered to be good corporate citizens and consider the diverse perspectives of different groups affected by their operations are said to have a ___________ orientation.
stakeholder
Employees, customers, communities, and investors are all considered ______ in relation to marketing.
stakeholders
A synergistic use of businesses' core competencies to address stakeholders' interests and achieve both organizational and social benefits is known as
strategic philanthropy
Consumerism is a) the efforts of independent individuals, groups, and organizations to protect the rights of consumers. b) President John F. Kennedy's consumer bill of rights. c) marketers' efforts to contribute to the satisfaction and growth of the communities in which they operate. d) the right to be informed. e) the specific development, pricing, promotion, and distribution of products that do not harm the environment.
A
An ethical issue is a) likely to arise when an employee's moral philosophy is consistent with the organization's expectations of the employee's behavior. b) an identifiable problem, situation, or opportunity requiring an individual to choose from among several actions that must be evaluated as right or wrong. c) most often found in personal selling situations. d) easily resolved by consulting written laws and regulations. e) characterized by a blatant disregard for human rights and equality.
B
Sharese wants to buy a new couch, but there is only one place in her town that sells them, and she lives in an isolated area. Sharese most likely feels her consumer right to ______ has been violated. a) know. b) be informed. c) choose. d) performance. e) safety
C
Which of the following is not one of the four objectives that environmentalists believe companies should implement in order to sustain the natural environment? a) Eliminate the concept of waste. b) Reinvent the concept of a product. c) Educate consumers on ways to recycle products. d) Make prices reflect the true cost of a product. e) Make environmentalism profitable.
C
Instead of addressing the question_______, many environmentalists and marketers believe the question should be ______. a) "How can we reduce costs?"; "How can we keep prices low?" b) "Where should we dispose of waste?"; "How can we protect society?" c) "How can we make products better?"; "How can we reduce waste?" d) "How can environmentalism be profitable?"; "Where is the benefit of environmental efforts?" e) "What should we do with our waste?"; "How can we produce products without waste?"
E
Which of the following is the best definition of cause-related marketing?
Linking a firm's products to a particular social cause either short term or long term
___________ are formalized rules and standards that describe what a company expects of its employees in terms of ethical behavior. a) Job descriptions b) Ethics clauses c) Behavior contracts d) Codes of conduct e) Ethics contracts
d
When a purchasing agent for Intel is offered a bribe by a silicon manufacturer salesperson, a) a promotion-related ethical issue has been created. b) the purchasing agent is free to accept the bribe without consequences. c) an ethical issue primarily related to the pricing of products exists. d) there is an ethical dilemma for the purchasing agent that is product related. e) no ethical issue exists under these circumstances.
a
Which of the following statements best summarizes the perspective that most marketing managers have on unethical behavior? a) Most do not believe that unethical conduct will lead to success and refrain from taking unethical opportunities. b) They believe that unethical behavior is useful in the short run but detrimental in the long run. c) They feel that codes of conduct will eliminate any unethical behavior from occurring in their organizations. d) They believe that unethical behavior will be harmful in the short run but have little impact in the long run. e) Most do not see ethical or unethical behavior as a concern to their organization because the opportunities do not exist.
a
When operating on a daily basis, employees and managers at Bank of America consider the perspectives of all individuals and groups that might be affected by their decisions. This is known as
a stakeholder orientation.
According to President Kennedy's consumer bill of rights, the right to choose means that a) consumers' interests will receive full and sympathetic consideration in the formulation of government policy. b) consumers should have access to a variety of products and services at competitive prices. c) consumers should have access to and the opportunity to review all relevant information about a product before buying it. d) marketers have an obligation not to knowingly market a product that could harm consumers. e) consumers should be able to buy products at prices they are willing to pay.
b
After a hurricane strikes the U.S. Gulf Coast, a tremendous demand for gas-powered generators occurs. Ace's Hardware, which stocks a large inventory of these items, faces major ethical decisions with regard to the ___________ issue. a) advertising. b) pricing. c) publicity. d) product. e) personal selling.
b
Distribution-related ethical issues arise when marketers a) do not provide intermediaries with enough information about how a product is priced. b) force channel intermediaries to behave in a specific manner. c) bribe salespeople to push one product over another. d) fail to disclose information to consumers about the risks associated with using a product. e) distribute a product that is very similar to a competing product.
b
Employees, customers, communities, and investors are all considered ______ in relation to marketing. a) responsibilities b) stakeholders c) shareholders d) constituents d) owners
b
Marketing ethics a) refers to laws and regulations that govern marketing. b) refers to principles and standards that define acceptable conduct in marketing. c) maximizes an organization's positive impact and minimizes its negative impact on society d) is most important for advertising agencies. e) applies well-defined rules for appropriate marketing behavior.
b
Opportunity provides a pressure that may determine ethical decisions in marketing. Opportunity is best thought of as a) unethical behavior found in top management. b) a favorable set of conditions that limit barriers or provide rewards. c) the principles or rules that individuals use to determine the way to behave. d) a person's relationship with others in the organization. e) a problem or situation requiring an individual to choose a course of action.
b
Pharmaceutical companies have at times been accused of acting unethically by taking advantage of customers in the area of a) promotion. b) pricing. c) distribution. d) product. e) manufacturing.
b
The boundary between legal and ethical issues is a) clearly distinguished. b) blurred. c) nonexistent. d) determined by the courts. e) determined by marketing managers.
b
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? a)The more a person is exposed to ethical activity in the organization, the more likely he or she will behave unethically. b) The more a person is exposed to unethical activity in the organization, the more likely he or she will behave unethically. c) The more a person is exposed to unethical activity in the organization, the less likely he or she will pay attention to that activity. d) The more a person is exposed to ethical activity in the organization, the less likely he or she will pay attention to that activity. e) Exposure to ethical and unethical activity has no effect on a person's decision-making process.
b
Warnings on television commercials for prescription drugs include a list of sometimes grotesque side effects that are possible when taking that particular drug. The consumer right to _____ most applies to these commercials. a) know. b) be informed. c) choose. d) performance. e) safety
b
What is the base level on which social responsibility is built? a) Customers b) Being profitable c) Obeying the law d) Being ethical e) Paying employees
b
Who are the primary recipients of the benefits of strategic philanthropy? a) Employees and investors b) Companies and society c) Primary stakeholders d) Managers and companies e) Society and communities
b
According to President Kennedy's consumer bill of rights, the right to be informed means that a) consumers' interests will receive full and sympathetic consideration in the formulation of government policy. b) consumers should have access to a variety of goods and services at competitive prices. c) consumers should have access to and the opportunity to review all relevant information about a product before buying it. d) marketers have an obligation not to knowingly market a product that could harm consumers. e) consumers should be told when the quality of a product has changed.
c
Cameron Inc. is a very profitable automobile repair shop. The company is well known for its great service and involvement in the community, but it fails to properly dispose of its used oil as outlined in environmental regulations. Cameron is failing in its ______ responsibilities. a) Economic b) Ethical c) Legal d) Strategic e) Philanthropic
c
In a meeting with key personnel, Watson Corporation's president speaks to the firm's managers about social responsibility in business today. He suggests that the key to being socially responsible is to a) watch profit impacts very carefully. b) maintain an updated code of ethics. c) monitor changes and trends in society's values. d) carefully interpret all new legislation. e) stay with present programs over the long run.
c
Socially responsible business practices have provided all of the following benefits except a) creating goodwill toward the organization. b) attracting employees. c) reducing marketing costs. d) generating publicity for the firm. e) positively impacting local communities.
c
The four basic rights outlined in the Consumer Bill of Rights include the right to safety, the right to be heard, the right to a) inform, and the right be chosen. b) consumer education, and the right to honesty. c) choose, and the right to be informed. d) redress, and the right to choose. e) honesty, and the right to redress.
c
three factors that influence the ethical decision-making process in marketing include a) individual factors, organizational culture, and peer influence. b) opportunity, personal moral philosophies, and situational variables. c) individual factors, organizational factors, and opportunity. d) social forces, laws, and organizational factors.
c
If Ben and Jerry's were to donate 5 percent of every ice cream purchase to shelters for victims of domestic abuse for one month, this would be an example of
cause-related marketing
The practice of linking a firm's product marketing to a particular social cause on an ongoing or short-term basis is known as
cause-related marketing
According to the text, marketing ethics refers to principles and standards that define a) improper behavior in marketing. b) acceptable conduct in society. c) improper behavior in business. d) acceptable conduct in marketing. e) acceptable conduct in general.
d
If Ben and Jerry's were to donate 5 percent of every ice cream purchase to shelters for victims of domestic abuse for one month, this would be an example of a) economic responsibility. b) social responsibility. c) ethical marketing. d) cause-related marketing. e) corporate benevolence.
d
The most basic principles of marketing ethics are a) philanthropic responsibilities. b) economic responsibilities. c) universally accepted behaviors. d) written as laws and regulations. e) included in the marketing code of ethics.
d
The practice of linking a firm's product marketing to a particular social cause on an ongoing or short-term basis is known as a) economic responsibility. b) social responsibility. c) ethical marketing. d) cause-related marketing. e) corporate benevolence.
d
What are some of the common price-related ethical issues? a) Misleading advertising and predatory pricing b) Additional discounts and price fixing c) Not disclosing the full price and value-pricing d) Predatory pricing and price fixing e) Loss leaders and deceptive pricing
d
Which of the following is not a dimension of social responsibility and marketing citizenship? a) Economic b) Ethical c) Legal d) Environmental e) Philanthropic
d
Which of the following is not one of the four dimensions of social responsibility presented in your text? a) Economic b) Ethical c) Legal d) Consumerism e) Philanthropic
d
Who is typically responsible for creating, distributing, and enforcing a formal code of conduct? a)Chief executive officer b)Vice president of marketing c) Morale manager d) Ethics officer e) Managers and supervisors
d
_____ ethical issues generally surface when companies fail to disclose risks associated with a product or information regarding its function, value, or use. a) Promotion-related B) Distribution c) Corporate d) Product-related e)Safety
d
McDonald's supports and funds Ronald McDonald houses for the families of terminally-ill children to stay in to be near their loved ones. McDonald's action demonstrates the fulfillment of ______ responsibility. a) Economic b) Ethical c) Legal d) Society e) Philanthropic
e
Angela organized a boycott of a local restaurant because of the owner's obvious prejudicial treatment of Hispanics. Angela's action would most likely be called a) lobbying. b) a public service announcement. c) the right to be informed. d) a social demonstration. e) consumerism.
e
Any constituent who has a claim in some aspect of a company's products, operations, markets, industry, or outcomes is known as a(n) a) shareholder. b) customer. c) employee. d) manager. e) stakeholder.
e
At the top of the pyramid of social responsibility for business are ___________ responsibilities. a) Economic b) Ethical c) Legal d) Cost e) Philanthropic
e
Justin believes that certain conditions at his company are very conducive to engaging in unethical behavior because these conditions provide rewards such as faster promotions and better raises for those who bend the rules. Justin's company seems to allow ______ for unethical behavior. a) peer pressure b) individuality c) corporate culture d) exposure e) opportunity
e
What is the major difference between social responsibility and marketing ethics? 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) Marketing ethics is concerned with organizational practices, and social responsibility is concerned with individual behavior. d) There is no difference; they are synonymous terms. e) Social responsibility deals with the total effect of marketing decisions on society, whereas marketing ethics relates to individual and group evaluations in marketing situations.
e
Which of the following statements about social responsibility is not correct a) Social responsibility dimensions include economic, legal, ethical, and philanthropic concerns. b) Social responsibility deals 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 is a vital factor in major marketing strategy decisions. e) Social responsibility refers to principles and standards that define acceptable conduct in marketing as determined by various stakeholders.
e
Sometimes business must find a balance between society's demand for social responsibility and investors' desires for profits. This is an example of a(n) ___________ responsibility.
economic