Chapter 4 Intro to Marketing Fallin KSU

Which right from the Consumer Bill of Rights in 1962: The practice of limiting new products (using slotting allowances).

Right to choose

Which right from the Consumer Bill of Rights in 1962: Federal safety standards for most products sold in the United States.

Right to safety

What are the top two most common unethical behavior?

1. Economic espionage 2. Corruption (Bribes, Kickbacks)

What are the four ways to classify marketing decisions according to ethical and legal relationships?

1. Ethical but illegal 2. Ethical and legal 3. Unethical and illegal 4. Unethical but legal

Here are the five parts of a social audit.

1.Recognize firm's social expectations. 2.Identify causes consistent with mission. 3.Determine objectives and priorities. 4.Specify resources. 5.Evaluate programs.

What two statements are TRUE of bribery? A. It is more common in countries in the earlier stages of economic development. B. Bribes are a form of corruption that provide personal benefit to an authority figure. C. It is more common in consumer marketing than in government marketing. D. It is more common in industries experiencing low levels of competition.

A. It is more common in countries in the earlier stages of economic development. B. Bribes are a form of corruption that provide personal benefit to an authority figure.

Societal responsibility extends the concept of social responsibility to which of the following? (Select all that apply) A. The general public B. Government institutions C. Preservation of the ecological environment D. Cultural preservation

A. The general public C. Preservation of the ecological environment

Select two reasons for the state of perceived ethical business conduct being at its present level. A. The publics' expectations of ethical business behavior have increased. B. There has been a rapid proliferation of business regulation. C. Ethical business conduct may have declined. D. There is decreased diversity of value systems in society.

A. The publics' expectations of ethical business behavior have increased. C. Ethical business conduct may have declined.

Public opinion surveys indicate that most people feel the ethical standards of business executives ______. A. are not "very high" B. are "non-existent" C. are "extremely high"

A. are not "very high"

Economic espionage and corruption are unethical behaviors that negatively affect ______. A. competitors B. consumers C. suppliers D. government institutions

A. competitors

Select the three items that are economic espionage activities. A. fraud B. bribery C. electronic hacking D. illegal trespassing E. corruption

A. fraud C. electronic hacking D. illegal trespassing

The broadest concept of social responsibility is ______. A. societal responsibility B. stakeholder responsibility C. universal ethics D. global responsibility

A. societal responsibility

Ethics deal with ________ moral principles and values, while laws are ________ values and standards that are enforceable in the courts. A. global; local B. personal; society's C. permanent; flexible D. unconscious; formalized

B. personal; society's

The first and most central concept of social responsibility is ______ responsibility. A. stakeholder B. profit C. societal D. altruistic

B. profit

The practice of making an unsubstantiated or misleading claim about the environmental benefits of a product, service, technology, or company practice is termed ______. A. green marketing B. cause marketing C. greenwashing D. social auditing

C. greenwashing

Toyota's more than 30 hybrid vehicles, investment in zero-emission vehicles, and work on developing hydrogen fuel cell vehicles not only protects the natural environment but also furthers overall economic progress. Customers generally has positive feelings towards companies that focus on _______ efforts such as Toyota's. A. supplier development B. stakeholder development C. sustainable development D. triple bottom line E. social welfare

C. sustainable development

_______ occurs when the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products.

Cause marketing

The legal concept of "let the buyer beware" that was pervasive in the American business culture before the 1960s.

Caveat emptor

Here are the six ethical values established by the American Marketing Association Statement of Ethics: 1. Honesty - to be truthful and forthright in our dealings with customers and stakeholders. 2. Responsibility - to accept the consequences of our marketing decisions and strategies. 3. Fairness - to try to balance justly the needs of the buyer with the interests of the seller. 4. Respect - to acknowledge the basic human dignity of all stakeholders. 5. Openness - to create transparency in our marketing operations. 6. ________ - to fulfill the economic, legal, philanthropic, and societal responsibilities that serve stakeholders in a strategic manner.

Citizenship

A formal statement of ethical principles and rules of conduct.

Code of ethics

A law that codified the ethics of exchange between buyers and sellers, including the rights to safety, to be informed, to choose, and to be heard.

Consumer Bill of Rights (1962)

Values, ideas, and attitudes shared among an organization.

Corporate culture

Values, ideas, and attitudes that are learned and shared among members of a group.

Culture

The Toyota Effect describes Toyota's desire to use its resources and knowledge to benefit society, and people, and the planet. The Toyota Effect demonstrates the company's dedication to ________. A. profit responsibility B. corporate responsibility C. green responsibility D. stakeholder responsibility E. societal responsibility

E. societal responsibility

The clandestine collection of trade secrets or proprietary information about a company's competitors.

Economic espionage

The moral principles and values that govern the actions and decisions of an individual or group.

Ethics

Here are the six ethical values established by the American Marketing Association Statement of Ethics: 1. Honesty - to be truthful and forthright in our dealings with customers and stakeholders. 2. Responsibility - to accept the consequences of our marketing decisions and strategies. 3. _______ - to try to balance justly the needs of the buyer with the interests of the seller. 4. Respect - to acknowledge the basic human dignity of all stakeholders. 5. Openness - to create transparency in our marketing operations. 6. Citizenship - to fulfill the economic, legal, philanthropic, and societal responsibilities that serve stakeholders in a strategic manner.

Fairness

_______ consists of marketing efforts to produce, promote, and reclaim environmentally sensitive products.

Green marketing

Here are the six ethical values established by the American Marketing Association Statement of Ethics: 1. _______ - to be truthful and forthright in our dealings with customers and stakeholders. 2. Responsibility - to accept the consequences of our marketing decisions and strategies. 3. Fairness - to try to balance justly the needs of the buyer with the interests of the seller. 4. Respect - to acknowledge the basic human dignity of all stakeholders. 5. Openness - to create transparency in our marketing operations. 6. Citizenship - to fulfill the economic, legal, philanthropic, and societal responsibilities that serve stakeholders in a strategic manner.

Honesty

Here are the six ethical values established by the American Marketing Association Statement of Ethics: 1. Honesty - to be truthful and forthright in our dealings with customers and stakeholders. 2. Responsibility - to accept the consequences of our marketing decisions and strategies. 3. Fairness - to try to balance justly the needs of the buyer with the interests of the seller. 4. _______ - to acknowledge the basic human dignity of all stakeholders. 5. Openness - to create transparency in our marketing operations. 6. Citizenship - to fulfill the economic, legal, philanthropic, and societal responsibilities that serve stakeholders in a strategic manner.

Respect

Society's values and standards that are enforceable in the courts.

Laws

A personal moral philosophy that considers certain individual rights or duties as universal, regardless of the outcome.

Moral idealism

Here are the six ethical values established by the American Marketing Association Statement of Ethics: 1. Honesty - to be truthful and forthright in our dealings with customers and stakeholders. 2. ________ - to accept the consequences of our marketing decisions and strategies. 3. Fairness - to try to balance justly the needs of the buyer with the interests of the seller. 4. Respect - to acknowledge the basic human dignity of all stakeholders. 5. Openness - to create transparency in our marketing operations. 6. Citizenship - to fulfill the economic, legal, philanthropic, and societal responsibilities that serve stakeholders in a strategic manner.

Responsibility

Which right from the Consumer Bill of Rights in 1962: Consumers must have access to public-policy makers regarding complaints.

Right to be heard

Which right from the Consumer Bill of Rights in 1962: Marketers must give consumers complete and accurate information.

Right to be informed

Here are the six ethical values established by the American Marketing Association Statement of Ethics: 1. Honesty - to be truthful and forthright in our dealings with customers and stakeholders. 2. Responsibility - to accept the consequences of our marketing decisions and strategies. 3. Fairness - to try to balance justly the needs of the buyer with the interests of the seller. 4. Respect - to acknowledge the basic human dignity of all stakeholders. 5. _______ - to create transparency in our marketing operations. 6. Citizenship - to fulfill the economic, legal, philanthropic, and societal responsibilities that serve stakeholders in a strategic manner.

Openness

What type of responsibility: Maximize profits for stockholders.

Profit responsibility

The idea that organizations are part of a larger society and are accountable to that society for their actions.

Social responsibility

What type of responsibility: Obligations to the environment and public.

Societal responsibility

What type of responsibility: Obligations to those who can affect achievement of company objectives.

Stakeholder responsibility

Involves conducting business in a way that protects the natural environment while making economic progress.

Sustainable development

The recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth.

Triple bottom line

A personal moral philosophy that focuses on the "greatest good for the greatest number" by assessing the costs and benefits of the consequences of ethical behavior.

Utilitarianism

Employees who report unethical or illegal actions of their employers.

Whistle-blowers

Here are the three general norms established by the American Marketing Association Statement of Ethics: 1. Marketers should do no harm. 2. Marketers must foster trust in the marketing system. 3. Marketers must _________

embrace, communicate, and practice the fundamental ethical values.

Here are the six _______ established by the American Marketing Association Statement of Ethics: 1. Honesty - to be truthful and forthright in our dealings with customers and stakeholders. 2. Responsibility - to accept the consequences of our marketing decisions and strategies. 3. Fairness - to try to balance justly the needs of the buyer with the interests of the seller. 4. Respect - to acknowledge the basic human dignity of all stakeholders. 5. Openness - to create transparency in our marketing operations. 6. Citizenship - to fulfill the economic, legal, philanthropic, and societal responsibilities that serve stakeholders in a strategic manner.

ethical values

Here are the three ______ established by the American Marketing Association Statement of Ethics: 1. Marketers should do no harm. 2. Marketers must foster trust in the marketing system. 3. Marketers must embrace, communicate, and practice the fundamental ethical values.

general norms

Here are the three general norms established by the American Marketing Association Statement of Ethics: 1. Marketers should do no _____. 2. Marketers must foster trust in the marketing system. 3. Marketers must embrace, communicate, and practice the fundamental ethical values.

harm

Societal values and attitudes are _______ and they affect ______ and _______ relationships.

relative; ethical and legal

A _________ consists of a systematic assessment of a firm's objectives, strategies, and performance in terms of social responsibility.

social audit

Here are the three general norms established by the American Marketing Association Statement of Ethics: 1. Marketers should do no harm. 2. Marketers must foster ______ in the marketing system. 3. Marketers must embrace, communicate, and practice the fundamental ethical values.

trust

What were four rights given to consumers by the Consumer Bill of Rights in 1962?

•The right to safety •The right to choose •The right to be informed •The right to be heard