Chapter 16
Marketing Ethics and Social Responsibility
GENERAL CONTENT: Multiple-Choice Questions
1. The marketing concept is a philosophy of customer satisfaction and _____.
a. mutual interest
b. mutual gain
c. innovation
d. needs met
e. none of the above
(Answer: b; p. 495; Moderate)
2. You have just read the latest survey about consumers’ attitudes toward current marketing practices. It reveals that consumers in general hold _____ attitudes.
a. mixed
b. slightly unfavorable
c. moderate
d. A and B
e. belligerent
(Answer: d; p. 495; Easy)
3. Many critics charge that the American marketing system causes _____ to be higher than they would be under more “sensible” systems.
a. distribution costs
b. advertising costs
c. prices
d. markups
e. employee morals
(Answer: c; p. 496; Moderate)
4. A long-standing charge against intermediaries is that they mark up prices beyond the _____.
a. value of their services
b. delivery charges
c. going market price
d. range most Americans can afford to pay
e. C and D
(Answer: a; p. 496; Easy)
5. Critics charge that some companies mark up goods excessively. Marketers respond by explaining that most consumer abuses are _____ and that most consumers do not understand the _____ high markups.
a. rare; business concepts of
b. unintentional; reasons for
c. rare; reasons for
d. unintentional; business concepts of
e. none of the above
(Answer: b; p. 496; Easy)
6. Deceptive promotion differs from deceptive pricing in that deceptive promotion overstates the product’s _____ or _____.
a. true price; performance
b. features; performance
c. packaging; costs
d. design; features
e. availability; performance
(Answer: b; p. 497; Moderate)
7. A major step in regulating unfair and deceptive business acts and practices was the creation of the _____ in 1938.
a. Robinson-Patman Act
b. Wheeler-Lea Act
c. Interstate Commerce Commissions
d. Taft-Hartley Act
e. Stamp Act
(Answer: b; p. 497; Moderate)
8. Marketers argue that most companies avoid deceptive practices because such practices _____.
a. deliver only short-term profits
b. create more competition
c. harm their business in the long run
d. are illegal
e. create long-term negative feelings among consumers
(Answer: c; p. 498; Moderate)
9. Theodore Levitt claims that some advertising puffery is bound to occur and that it may even be desirable. People do not buy _____.
a. pure functionality
b. solely because of the situation presented in the ad
c. emotionally
d. features only
e. B or C
(Answer: a; p. 497; Challenging)
10. What is the third typical product criticism besides lack of quality and delivers little benefit?
a. Priced too high.
b. Promotion is deceptive.
c. Lacks complete safety.
d. Lacks company backing of warranty.
e. Bad consumer connotations.
(Answer: c; p. 499; Easy)
11. Consumers Union, the nonprofit testing and information organization, has published _____ to assist the consumer in choosing products to purchase.
a. Consumer Digest
b. Buyers Weekly
c. Home & Garden
d. Consumer Reports
e. Sports Illustrated
(Answer: d; p. 499; Easy)
12. Critics have charged that some companies follow a program of causing their products to need to be replaced before they actually should need replacement. What is this called?
a. Product failure.
b. Short-term planning.
c. Planned obsolescence.
d. Nonfunctional warranties.
e. Expressed satisfaction.
(Answer: c; p. 499; Easy)
13. Marketers explain that planned obsolescence is in general not a problem for all of the following reasons except one. Which one?
a. Consumers like change.
b. No one is forced to buy the new product.
c. It will eventually wear out anyway.
d. For most technical products, customers want the latest innovations.
e. None of the above.
(Answer: c; p. 501; Moderate)
14. The _____ marketing system has been accused of poorly serving disadvantaged consumers.
a. European Union
b. American
c. GATT
d. WTO
e. NAFTA
(Answer: b; p. 502; Easy)
15. A Consumers Union study found that the _____ pay more for inferior goods.
a. wealthy
b. uneducated
c. poor
d. Jews
e. Asian Americans
(Answer: c; p. 502; Moderate)
16. A Consumers Union study suggested that the presence of _____ in low-income neighborhoods made a big difference in keeping prices down.
a. supermarkets
b. super centers
c. discount stores
d. large national chain stores
e. factory outlets
(Answer: d; p. 502; Moderate)
17. A type of economic discrimination in which major chain retailers avoid placing stores in disadvantaged neighborhoods is called _____.
a. embargo
b. licensing
c. redlining
d. tariff
e. scrambled merchandise
(Answer: c; p. 502; Easy)
18. The American marketing system has been accused of adding to several “evils” in American society at large. These untrue criticisms include _____.
a. creating false wants
b. creating excessive materialism
c. promoting too few social goods
d. creating cultural pollution
e. all of the above
(Answer: e; p. 503; Easy)
19. Critics have charged that the marketing system urges too much interest in _____.
a. material possessions
b. the push strategy
c. meeting a quota
d. new product invention
e. entering the global market arena
(Answer: a; p. 503; Easy)
20. Critics of the American economic marketing system have charged that people are judged by what they _____.
a. are
b. own
c. do
d. eat
e. avoid
(Answer: b; p. 503; Easy)
21. A drive for wealth and possessions hit new highs in the _____, when phrases such as “greed is good” and “shop till you drop” seemed to characterize the times.
a. 1950s
b. 1960s
c. 1980s
d. 1990s
e. C and D
(Answer: e; p. 503; Moderate)
22. In the new millennium, social scientists have noted a _____.
a. stronger infatuation with material things
b. strong need to buy
c. reaction against waste
d. A and B
e. none of the above
(Answer: c; p. 503; Moderate)
23. _____ products give high immediate satisfaction but may hurt consumers in the long run.
a. Environmental
b. Deficient
c. Pleasing
d. Salutary
e. Desirable
(Answer: c; p. 516; Challenging)
24. _____ products have low appeal but may benefit consumerism in the long run.
a. Environmental
b. Deficient
c. Pleasing
d. Salutary
e. Desirable
(Answer: d; p. 516; Easy)
25. The critics do not view this interest in material things as _____.
a. a natural state of mind
b. hurting society
c. helping society
d. A and C
e. necessary
(Answer: d; p. 503; Easy)
26. _____ is hired to use mass media to create materialistic models of the good life.
a. Straight product extenders
b. Albertsons
c. Madison Avenue
d. Fifth Avenue
e. Michigan Avenue
(Answer: c; p. 503; Moderate)
27. When Madison Avenue steps in, critics say marketing is seen as benefiting _____ more than _____.
a. consumers; industry
b. industry; consumers
c. stores; manufacturers
d. managers; stores
e. children; adults
(Answer: b; p. 503; Easy)
28. Marketers are most effective when they appeal to _____ rather than when they _____.
a. exciting new inventions; use old ones
b. teenagers; target older people
c. existing wants; attempt to create new ones
d. emotions; appeal to actual needs
e. the mass market; appeal to market segments
(Answer: c; p. 504; Moderate)
29. People seek information when making important purchases and often _____.
a. do not rely on television ads
b. change their minds
c. rely on their relatives’ advice
d. do not rely on single sources
e. avoid their parents in doing so
(Answer: d; p. 504; Easy)
30. The high failure rate of new products shows that companies are not able to _____.
a. control demand
b. advertise enough
c. find manufacturers
d. find outlets
e. none of the above
(Answer: a; p. 504; Easy)
31. On a deeper level, our wants and values are influenced not only by marketers but also by _____.
a. family
b. peer groups
c. ethnic background
d. religion
e. all of the above
(Answer: e; p. 504; Easy)
32. The overselling of private goods results in _____, such as cars causing traffic jams, air pollution, injuries, and deaths.
a. waste
b. misdirected funding
c. social costs
d. materialism
e. opportunity costs
(Answer: c; p. 504; Easy)
33. A major way to reverse the cultural pollution caused by marketing is to adjust _____.
a. product selection
b. advertising
c. product positioning
d. consumer attitudes
e. the morale level
(Answer: b; p. 505; Moderate)
34. A practice that can be used to combat the criticism that competition is reduced and firms are harmed when companies expand by acquiring competitors is to _____ instead.
a. expand into new markets
b. develop their own new products
c. export more
d. enter into foreign joint ventures
e. focus solely on a single product
(Answer: b; p. 506; Challenging)
35. The two major movements to keep business in line are environmentalism and _____.
a. consumerism
b. protectionism
c. antimonopoly legislation
d. regulating interstate commerce
e. none of the above
(Answer: a; p. 507; Easy)
36. The first organized consumer movement in the United States took place in the early 1900s. It was fueled by all of the following conditions except one. Which one?
a. Rising prices.
b. Conditions in the meat industry.
c. Unsafe products.
d. Scandals in the drug industry.
e. B and D
(Answer: c; p. 507; Moderate)
37. _____ is an organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers.
a. Environmentalism
b. The Bill of Rights
c. Grassroots politics
d. Consumerism
e. The Human Relations Movement
(Answer: d; p. 507; Easy)
38. Many people believe that the balance of power in consumerism lies on the seller’s side. Critics believe that buyers have too little education, protection, and _____ to make wise decisions when facing sophisticated sellers.
a. money
b. information
c. skills
d. bargaining power
e. credit
(Answer: b; p. 507; Moderate)
39. Consumer advocates call for which of the following additional consumer rights?
a. The right to be well informed about important product aspects.
b. The right to be protected against questionable products and marketing practices.
c. The right to influence products and marketing practices in ways that will improve the quality of life.
d. All of the above.
e. None of the above.
(Answer: d; p. 507; Challenging)
40. _____ is a management approach that involves developing strategies that both sustain the environment and produce profits for the company.
a. Consumerism
b. Environmentalism
c. Environmental sustainability
d. Social responsibility
e. Ethical decision making
(Answer: c; p. 509; Easy)
41. Environmentalists assert that the marketing system’s goal should be to maximize _____.
a. consumer protection
b. protection of the environment
c. the quality of life
d. efficient use of our resources
e. the welcoming of diversity
(Answer: c; p. 507; Moderate)
42. The challenge of developing an economy that the planet is capable of supporting indefinitely is referred to as _____.
a. sustainable global economy
b. long-term sustainability
c. new world order economy
d. environmental sustainability
e. green marketing
(Answer: a; p. 509; Easy)
43. Companies emphasizing prevention of pollution have developed “green marketing” programs that develop _____.
a. ecologically safer products
b. recyclable and biodegradable packaging
c. more energy-efficient operations
d. a concern for nature
e. all of the above
(Answer: d; p. 509; Moderate)
44. Design for environment (DFE) involves thinking ahead in the design stage to create products that are easier to reuse, recycle, or _____.
a. disintegrate
b. resell
c. recover
d. export
e. store
(Answer: c; p. 509; Easy)
45. What do most companies today focus on when it comes to protecting the environment?
a. Investing heavily in pollution prevention.
b. Practicing product stewardship.
c. Developing a sustainable vision.
d. Investing heavily in environmental technology.
e. Biodegradability.
(Answer: a; p. 512; Moderate)
46. As international trade barriers come down and global markets expand, environmental issues are having _____ impact on international trade.
a. a neutral
b. the same
c. a lower
d. a greater
e. more impact on cultural differences among people and less
(Answer: d; p. 512; Moderate)
47. Uniform worldwide environmental standards are not expected to be put into place soon because _____.
a. such strategies are too expensive
b. many countries do not recognize the importance of environmental standards
c. such policies currently vary too widely between countries
d. markets are too dissimilar
e. C and D
(Answer: e; p. 512; Easy)
48. Citizen concerns about marketing practices will usually lead to public attention and _____.
a. debates
b. legislative proposals
c. workable laws
d. all of the above
e. none of the above
(Answer: d; p. 512; Easy)
49. The philosophy of _____ holds that a company’s marketing should support the best long-run performance of the marketing system.
a. corporate social responsibility
b. marketing sustainability
c. enlightened marketing
d. the free enterprise system
e. NAFTA
(Answer: c; p. 513; Easy)
50. When an enlightened company makes marketing decisions by considering consumers’ wants and interests, the company’s requirements, and _____ long-run interests, it is practicing ______ marketing.
a. the federal government’s; value
b. society’s; societal
c. society’s; sense-of-mission
d. society’s; value
e. employees’; green
(Answer: b; p. 516; Easy)
51. What are deficient products?
a. Products that have neither immediate appeal nor long-run benefits.
b. Products that give high immediate satisfaction but only hurt consumers in the long run.
c. Products that have low appeal but may benefit consumers in the long run.
d. Products that are either unsafe or inferior.
e. Any product in the decline stage of the product life cycle.
(Answer: a; p. 516; Challenging)
52. When a company makes products that give high immediate satisfaction but may hurt consumers in the long run, they are called _____.
a. deficient
b. pleasing
c. salutary
d. desirable
e. threatening
(Answer: b; p. 516; Moderate)
53. The ideal goal for all companies to have for their products and society should be to turn all of them into _____.
a. salutary ones
b. desirable ones
c. pleasing ones
d. durable ones
e. serviceable ones
(Answer: b; p. 516; Easy)
54. The challenge for their product is to add long-run benefits without reducing the product’s pleasing qualities. What kind of product is it?
a. Salutary.
b. Desirable.
c. Pleasing.
d. Durable.
e. None of the above.
(Answer: c; p. 516; Easy)
55. The challenge for this product is to add some pleasing qualities so that it will become more desirable in the consumers’ minds. What is it called?
a. Salutary.
b. Desirable.
c. Pleasing.
d. Durable.
e. Aesthetic.
(Answer: a; p. 516; Moderate)
56. Companies must decide upon what principle they should use as a guide on issues of ethics and social responsibility. Which one of the following is not a common philosophy to accomplish this end?
a. Let the free market decide.
b. Let the legal system decide.
c. Let society decide.
d. Let individual managers or companies decides.
e. A and B
(Answer: c; p. 517; Challenging)
57. It is important to make a commitment to a common set of shared standards worldwide for the sake of _____.
a. customers
b. suppliers
c. employees
d. our posterity
e. all of the company’s stakeholders
(Answer: e; p. 519; Moderate)
58. The American Marketing Association (AMA) has created a code of ethics that includes three of these four topics. Which on is incorrect?
a. Honesty.
b. Fairness.
c. Not knowingly doing harm.
d. Limit selling or fundraising during research.
e. None of the above.
(Answer: d; p. 519; Easy)
59. Ethics and social responsibility require a _____.
a. futuristic approach
b. total corporate commitment