Prin. of Marketing 3 and 4 Quiz

A potato chip company advertises that its newly launched product can lower cholesterol, although the company cannot provide evidence to substantiate this claim. This situation involves an ethical issue related to which element of the marketing mix?

Promotion

Which of the following is the best example of strategic philanthropy for Office Depot, the large office supply chain?

Providing low-income families with school supplies and computer training

If all the gas stations in a city collaborated to determine what gas prices should be charged, they would be violating the

Sherman Antitrust Act.

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.

PepsiCo introduced the "Customizer," a new freestanding soft drink dispenser where consumers can choose from over 120 different types of soft drinks and customize their drinks. Customizers would take the place of typical dispensers where there are only a few different types of soft drink brands available. To develop the new dispenser, PepsiCo collected information on the soft drink consumption habits of individuals in several different age groups, as well as information about new technologies for dispensing liquids from vending machines and the sales of its "fountain" syrup for national restaurant chains to use in their soft drink machines. PepsiCo's collection of this information is an example of _____ while the assessment of its impact on the potential for the new "Customizer" is an example of

environmental scanning; environmental analysis

Transformations Salon is part of the hair and personal care service industry located in a large city. In what type of competitive environment is Transformations Salon most likely operating? You Answered

monopolistic competition.

The Better Business Bureau is probably the best-known

nongovernmental regulatory group.

The four major competitive structures are

oligopolies, monopolies, monopolistic competition, and pure competition.

Mollie, a new salesperson for Snook Foods, calls in an order for twice the amount of merchandise that El Rincon Market requested because she knows that it will increase her sales and will not be noticed by El Rincon Market. This is an example of how ____ influences ethical decision making.

opportunity

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

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

reducing marketing costs.

The most basic principles of marketing ethics are _____________ to encourage marketers to conform to society's expectations for conduct.

written as laws and regulations

Your marketing team has started the analysis of your company's marketing environment. Competition has been very intense in recent years in your industry, so you decide to place more emphasis on analyzing the competitive forces in your industry. You group your competitors into the four types that a firm normally faces.

​Brand competitors

Greenwashing is what type of marketing ethics issue? ​

​Promotion-related

Social responsibility is an organization's obligation to maximize its positive impact and minimize its negative impact on society.

True

Top management sets the ethical tone for the entire organization.

True

Wealth is an accumulation of past income, natural resources, and financial resources.

True

Which category of income are marketers most interested in?

Disposable income

A monopoly exists when a firm with many potential competitors attempts to develop a marketing strategy to differentiate its products.

False

A recession is characterized by extremely high unemployment, very low wages, minimal total disposable income, and lack of consumer confidence in the economy.

False

At the most basic level of marketing citizenship, marketers have an obligation to contribute funds to philanthropic causes.

False

Cause-related marketing refers to the specific development, pricing, promotion, and distribution of products that do not harm the natural environment.

False

During a recession, it is advisable for a firm to slash their marketing efforts to ensure survival until the economy improves.

False

Firms always adopt and use new technology.

False

Naomi sees her coworkers take long lunch breaks. Despite this fact, her parents had always told her that it was important not to take advantage of others. As a result, she refuses to go past an hour lunch. In this case, the organizational culture is influencing Naomi's behavior.

False

Pure competition is a common competitive environment.

False

There are few costs associated with being socially responsible and satisfying society's demands.

False

Which of the following are the most frequently sentenced organizational crimes?

Fraud and antitrust violations

Which of the following statements about social responsibility is correct?

Social responsibility refers to a company's obligation to maximize its positive impact and minimize its negative impact on society.

An individual can have a high income and very little wealth.

True

Brand competitors market products with similar features, benefits, and prices to the same customers.

True

Monitoring the competitive environment guides marketers in developing competitive advantages.

True

Once trust is lost in marketing relationships, it can take a lifetime to rebuild.

True

A marketing ethics issue likely exists when

an individual or organization must choose from among several actions that must be evaluated as right or wrong.

Nick Clark is managing director for Southern Mutual Company, a financial services firm. Nick firmly believes that dress and grooming are important elements in creating a positive first impression and provides training to his account managers regarding the dress code and grooming policy. Southern Mutual does not allow any facial hair for men and stresses that women should pull their hair back away from their face because research suggests they will be perceived negatively. The Southern Mutual Company dress and grooming policies are an example of the importance of ______ in influencing ethical decision making.

corporate culture

Consumer confidence is at a low during periods of

depression.

The best approach for a company to take when monitoring its competitors is

developing a system for gathering ongoing information about competitors.

Kristen was reviewing her bank statement for last month. She had paid her rent, her car payment, electric and phone bills, and made three trips to the grocery store. Kristen had also bought tickets to a Beyoncé concert and a new outfit to wear to the concert. The money spent on Kristen's rent, car, electric, and phone bills was likely from her ____, while the money spent on the concert tickets and new clothes was from her _____.

disposable income; discretionary income

Consumerism is

the efforts of independent individuals, groups, and organizations to protect the rights of consumers.

​Critics of the financial services industry, and Wall Street in particular, argue that a major cause of the financial crisis of 2008 was the flawed compensation and incentive structure that exists in the industry. They argue that this incentive structure encourages and often rewards unethical behavior by professionals in the industry.

the opportunity factors that influence ethical decision making.