marketing test one Chapter Four

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.
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.
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.
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.
Socially responsible business practices have provided all of the following benefits except
reducing market costs
The adoption of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic
social responsibilities expected by stakeholders is called
marketing citizenship
Employees, customers, communities, and investors are all considered ______ in relation to
marketing.
stakeholders
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
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.
Which of the following is not a dimension of social responsibility and marketing citizenship?
environmental
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
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
What is the base level on which social responsibility is built?
being profitable
As a firm fulfills its basic economic responsibilities, it must simultaneously
obey laws and regulations
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
According to the text, marketing ethics refers to principles and standards that define
acceptable conduct in marketing
Marketing ethics
refers to principles and standards that define acceptable conduct in marketing.
The most basic principles of marketing ethics are
written as laws and regulations.
A business that contributes resources to the community to improve the quality of life is taking
on a(n) ___________ responsibility.
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
At the top of the pyramid of social responsibility for business are ___________
responsibilities.
philanthropic
Actions that promote human health and welfare address the _______ dimension of the
pyramid of social responsibility.
philanthropic
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
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
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
A synergistic use of businesses’ core competencies to address stakeholders’ interests and
achieve both organizational and social benefits is known as
strategic philanthropy
Who are the primary recipients of the benefits of strategic philanthropy?
companies and society
Which of the following is a primary difference between cause-related marketing and strategic
philanthropy?
Strategic philanthropy can take on both a financial and nonfinancial format
while cause-related marketing only involves financial contributions.
Which of the following is the best example of strategic philanthropy for Staples, the large
office supply chain?
Providing low-income families with school supplies and computer training
Which of the following refers to a firm’s specific development, pricing, promotion, and
distribution of products that do not harm the environment?
green marketing
Products that may do harm to the natural environment are inconsistent with
green marketing
Which of the following is the best definition of green marketing?
Developing, pricing, promoting, and distributing products that do not harm the natural environment
Merck develops a better way to package and distribute its pharmaceutical products that
requires less materials and waste. What major social responsibility issue is Merck
addressing?
The natural environment
StarKist Tuna has frequently extolled its dolphin-safe methods of catching tuna. This is an
example of
green marketing
In Europe, companies can voluntarily apply for a designation to indicate that their product is
less harmful to the environment than competing products. This label is known as the
eco-label
Which of the following is not one of the four objectives that environmentalists believe
companies should implement in order to sustain the natural environment?
Educate consumers on ways to recycle products.
All of the following are goals of green marketing except
making the work force match the population in terms of diversity.
Instead of addressing the question_______, many environmentalists and marketers believe
the question should be ______.
“What should we do with our waste?”; “How can we produce products without
waste?”
According to some environmentalists, what are the three types of products that all products
should be reduced to?
Consumables, durable goods, and unsalables
Honda produces a variety of automobiles which makes the company a producer of
durable goods
As far as prices are concerned, environmentalists believe prices should
reflect the direct cost as well as the cost of air, water, and soil used.
What do environmentalists set as an objective for profitability?
Environmentalism should be made profitable, and companies attempting to protect the environment should not have to compete with those harming it in the
marketplace.
Synergy Tech has a program that offers consumers money back for their old Synergy computers so that the materials used to make the computer can be retained within a closed
system. Which of the primary environmental goals does Synergy’s program address?
Reinvent the concept of a product
Consumerism is
the efforts of independent individuals, groups, and organizations to protect the rights of consumers.
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
consumerism.
The Browardton Quilters’ Guild has contacted all the major networks to try to warn people about the poor performance of miniature, hand-held sewing machines. These quilters are engaging in
consumerism
Who of the following is a famous consumer activist?
Ralph Nader
Who drafted the Consumer Bill of Rights?
JFK
The four basic rights outlined in the Consumer Bill of Rights include the right to safety, the right to be heard, the right to
choose, and the right to be informed.
Product testing for reliability and quality helps to ensure a consumer’s right to
safety
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.
be informed
According to President Kennedy’s consumer bill of rights, the right to choose means that
consumers should have access to a variety of products and services at competitive prices.
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.
choose
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
be heard
How would marketers most likely benefit from the consumer’s right to be heard?
The company can use the information to make its products better.
According to President Kennedy’s consumer bill of rights, the right to be informed means that
consumers should have access to and the opportunity to review all relevant information about a product before buying it.
Target’s Take Charge of Education program donates 1 percent of a customer’s total purchase to the school of his or her choice. What social responsibility issue does this
program address?
community relations
Various stakeholders and _______ determine the acceptable standards of conduct involving
ethics.
the organizations’ ethical climate
Ethical standards for acceptable conduct for a company should
be based on company, industry, government, customer, and society viewpoints.
When is the best time to deal with marketing exchange problems concerning ethics?
During the strategic planning process
The boundary between legal and ethical issues is
blurred
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.
Reese is facing an ethical issue at work and has determined four possible courses of action
he could take. He knows he should evaluate each possible action as _____ in order to choose the most appropriate action.
right or wrong
An ethical issue is
an identifiable problem, situation, or opportunity requiring an individual to choose from among several actions that must be evaluated as right or wrong.
_____ ethical issues generally surface when companies fail to disclose risks associated with a product or information regarding its function, value, or use.
product-related
Product-related ethical issues arise when marketers
fail to disclose information to consumers about the risks associated with using a product.
If Firestone failed to inform consumers of design problems associated with its Wilderness AT
tires, it would have been engaging in unethical behavior in regard to which of the following
marketing issue areas?
product
If a potato chip manufacturer introduces a new, bigger size bag of chips according to the
label, when in actuality, the new bag is slightly smaller in contents, a _____ ethical issue
exists.
product-related
In testing her firm’s new TV ads for Transformer action figures, Beth discovers the ads make
children think many of the action figures can actually fly. Beth now faces an ethical decision
regarding which element of the marketing mix?
promotion
A cereal 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
When a purchasing agent for Intel is offered a bribe by a silicon manufacturer salesperson,
a promotion-related ethical issue has been created.
What are some of the common price-related ethical issues?
Predatory pricing and price fixing
Pharmaceutical companies have at times been accused of acting unethically by taking advantage of customers in the area of
pricing
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.
pricing
Distribution-related ethical issues arise when marketers
force channel intermediaries to behave in a specific manner.
At times, large retailers such as Wal-Mart may be accused of coercion in dealing with intermediaries because of the amount of power and control these large companies have over many of their suppliers. This is most potentially a ______ related ethical issue.
distribution
According to the text, which of the following is not one of the factors that influence the ethical
decision-making processes in a marketing organization?
Attitudes toward religion
All of the following are factors that influence the ethical decision-making process except
salary or wages.
Three factors that influence the ethical decision-making process in marketing include
individual factors, organizational factors, and opportunity.
When Shawna attempts to resolve ethical conflicts in her daily life, she bases her decisions
on her own values. This influence on the ethical decision-making process is called
individual factors
Ethical choices in business situations are most often made
jointly in work groups and committees.
At his new job, Chris notices that everyone places high values on their families and each
others’ families, birthdays are always celebrated, and flexible schedules are permitted to
facilitate family involvement as long as the work is still getting done. Everyone is very relaxed
and friendly. Chris has made several observations about the
corporate culture
Tasha recently changed employers within the same industry. At her old company, employees
routinely took home company pens, pencils, paperclips, and note pads, and they frequently
made personal long-distance calls on company phones. Tasha observes that employees do
not engage in such practices at her new company. What Tasha sees is best described as a
difference in
corporate culture
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
Which of the following employees is most responsible for setting the ethical tone for the
entire marketing organization?
Chief executive officer
The interaction between _____ and _____ helps determine the ethical value system of the
firm.
corporate culture; executive leadership
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?
The more a person is exposed to unethical activity in the organization, the more likely he or she will behave unethically.
Opportunity provides a pressure that may determine ethical decisions in marketing.
Opportunity is best thought of as
a favorable set of conditions that limit barriers or provide rewards.
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.
opportunity
In response to organizational pressure to perform, Barry used a deceptive sales tactic to
obtain a major sales contract. He was surprised that he wasn’t punished for his behavior and
even received a substantial bonus for securing the contract. Given the same opportunity in
the future, Barry will most likely
use similar sales tactic again
Karrie, a new salesperson for Brenham Foods, calls in an order for twice the amount of merchandise that Corner Market requested because she knows that it will increase her sales and will not be noticed by Corner Market. This is an example of how ___________ influences
ethical decision making.
opportunity
As a media buyer for the Angelo Agency, Chloe knows that no one ever checks to see if her phone calls are business related or personal. With regard to ethical behavior, this situation relates most closely to
opportunity
Which of the following statements best summarizes the perspective that most marketing managers have on unethical behavior?
Most do not believe that unethical conduct will lead to success and refrain from taking unethical opportunities.
___________ is (are) most likely to improve ethical behavior in a marketing organization.
Eliminating unethical individuals and improving the organization’s ethical standards
Which of the following would be consistent with Johnson Chemicals’ understanding of the “bad apple” concept of improving the ethical conduct of salespeople?
Firing unethical salespeople
It is possible to improve ethical behavior in an organization by
improving the organization’s ethical standards and eliminating unethical persons.
___________ are formalized rules and standards that describe what a company expects of its employees in terms of ethical behavior.
codes of conduct
Codes of conduct are also frequently known as
codes of ethics
Which of the following statements about codes of conduct is true?
Most large corporations have formal codes of conduct.
Which one of the following statements about codes of conduct (ethics) is false?
They must be detailed enough to take into account many possible situations.
Who is typically responsible for creating, distributing, and enforcing a formal code of conduct?
Ethics officer
Within the scope of her job, Sue Hanson gives ethics advice, disseminates a code of ethics,
reviews the code of ethics, and takes action on ethics violations. Sue is the ____________ in
her company.
Ethics officer
Beth knows that her company has a formal code of conduct, but she does not see this code
being equally and consistently applied to all employees. Beth believes that this sporadic
enforcement of the formal code only enhances the _____ for committing unethical acts.
opportunity
Which of the following is not usually a responsibility of an ethics officer?
Drafting, disseminating, and updating a mission statement
Because laws are often difficult to interpret and understand, company codes of conduct and
compliance programs should
incorporate both legal and ethical concerns that the company deems most appropriate.
Which of the following statements about implementing an ethics and legal compliance program is false?
It rarely needs to be revised.
What is the major difference between social responsibility and marketing ethics?
Social responsibility deals with the total effect of marketing decisions on society, whereas marketing ethics relates to individual and group evaluations in marketing situations.
Which of the following statements is false?
Social responsibility and marketing ethics are the same thing and can be used interchangeably.
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
monitor changes and trends in society’s values.
In a classroom discussion, Jacob agrees with Marcie that consumers generally want biodegradable beverage cups. However, he says that businesses in that industry must
evaluate whether
consumers are willing to pay higher prices for them.
Companies that incorporate ethics and social responsibility into their strategic plans are likely
to experience
improved marketing performance
Hershey Foods was founded in the nineteenth century by Milton Hershey, who had a strong ethical value system always show integrity, be honest, and respect others. Hershey felt it was important to provide high-quality goods and services of real value at competitive prices that provide an adequate return on investment. He also founded the Milton Hershey School, operating today as a cost-free, private home and school dedicated to helping children with social needs and limited resources. The company also focuses on environmental issues, such as reducing waste by 360,000 pounds annually by redesigning Hershey’s Syrup caps. Hershey Foods has an ethics compliance program that includes a code of ethics and training, guidelines for handling legal and ethical issues, an 800 number for assistance with ethical issues, and support from supervisors and human resource managers in dealing with
ethical issues.

Milton Hershey contributed resources to the community to improve the overall quality of life
for consumers, employees, and the community in general. This reflected his ____________
responsibility.

philanthropic
Question
Hershey Foods was founded in the nineteenth century by Milton Hershey, who had a strong ethical value system always show integrity, be honest, and respect others. Hershey felt it was important to provide high-quality goods and services of real value at competitive prices that provide an adequate return on investment. He also founded the Milton Hershey School, operating today as a cost-free, private home and school dedicated to helping children with social needs and limited resources. The company also focuses on environmental issues, such as reducing waste by 360,000 pounds annually by redesigning Hershey’s Syrup caps.
Hershey Foods has an ethics compliance program that includes a code of ethics and training, guidelines for handling legal and ethical issues, an 800 number for assistance with ethical issues, and support from supervisors and human resource managers in dealing with ethical issues.

The fact that the Hershey company has recently reduced its waste by 360,000 pounds
through a packaging redesign is evidence of its focus on

social responsibility.
Hershey Foods was founded in the nineteenth century by Milton Hershey, who had a strong ethical value system always show integrity, be honest, and respect others. Hershey felt it was important to provide high-quality goods and services of real value at competitive prices that provide an adequate return on investment. He also founded the Milton Hershey School, operating today as a cost-free, private home and school dedicated to helping children with social needs and limited resources. The company also focuses on environmental issues, such as reducing waste by 360,000 pounds annually by redesigning Hershey’s Syrup caps. Hershey Foods has an ethics compliance program that includes a code of ethics and training, guidelines for handling legal and ethical issues, an 800 number for assistance with ethical issues, and support from supervisors and human resource managers in dealing with ethical issues.

Emily, Hershey’s ethics officer, is responsible for creating and distributing a(n) ___________,
enforcing the code, and meeting with organizational members to discuss or provide advice
about ethical issues.

code of conduct
Hershey Foods was founded in the nineteenth century by Milton Hershey, who had a strong ethical value system always show integrity, be honest, and respect others. Hershey felt it was important to provide high-quality goods and services of real value at competitive prices that provide an adequate return on investment. He also founded the Milton Hershey School, operating today as a cost-free, private home and school dedicated to helping children with social needs and limited resources. The company also focuses on environmental issues, such as reducing waste by 360,000 pounds annually by redesigning Hershey’s Syrup caps. Hershey Foods has an ethics compliance program that includes a code of ethics and training, guidelines for handling legal and ethical issues, an 800 number for assistance with ethical issues, and support from supervisors and human resource managers in dealing with ethical issues.

Hershey and its employees benefit in many ways from its strong ethics compliance program.
Which of the following is not one of the benefits of such a program?

Costly programs to develop and maintain
WhiteWave Foods, producer of brands such as Silk Soymilk, specializes in manufacturing innovative and nutritious food products. Silk Soymilk was first launched in 1996, and is committed to the health of its customers, as well as the health of the planet. At Silk, they have offset all of their energy consumption with wind power, preventing over 16,000 tons of greenhouse gasses from entering the atmosphere each year. Silk Soymilk is made from a mixture of organic and natural, non-genetically modified soy beans, reducing the amount of pesticides in the air, soil, and water. Since 2002 they have been sponsoring the FarmAid concert, whose mission is to is to keep family farmers on their land and ensure a safe, healthy food supply for all Americans.

Silk Soymilk’s sponsorship of the FarmAid concert is best thought of as an example of its

philanthropic activities
WhiteWave Foods, producer of brands such as Silk Soymilk, specializes in manufacturing innovative and nutritious food products. Silk Soymilk was first launched in 1996, and is committed to the health of its customers, as well as the health of the planet. At Silk, they have offset all of their energy consumption with wind power, preventing over 16,000 tons of greenhouse gasses from entering the atmosphere each year. Silk Soymilk is made from a mixture of organic and natural, non-genetically modified soy beans, reducing the amount of pesticides in the air, soil, and water. Since 2002 they have been sponsoring the FarmAid concert, whose mission is to is to keep family farmers on their land and ensure a safe, healthy food supply for all Americans.

Silk Soymilk’s use of organic, non-genetically modified soybeans in its product is an example
of

green marketing
WhiteWave Foods, producer of brands such as Silk Soymilk, specializes in manufacturing innovative and nutritious food products. Silk Soymilk was first launched in 1996, and is committed to the health of its customers, as well as the health of the planet. At Silk, they have offset all of their energy consumption with wind power, preventing over 16,000 tons of greenhouse gasses from entering the atmosphere each year. Silk Soymilk is made from a mixture of organic and natural, non-genetically modified soy beans, reducing the amount of pesticides in the air, soil, and water. Since 2002 they have been sponsoring the FarmAid concert, whose mission is to is to keep family farmers on their land and ensure a safe, healthy food supply for all Americans.

The use of windpower to offset energy consumption by Silk Soymilk’s parent company
demonstrates its commitment to

social responsibility
WhiteWave Foods, producer of brands such as Silk Soymilk, specializes in manufacturing innovative and nutritious food products. Silk Soymilk was first launched in 1996, and is committed to the health of its customers, as well as the health of the planet. At Silk, they have offset all of their energy consumption with wind power, preventing over 16,000 tons of greenhouse gasses from entering the atmosphere each year. Silk Soymilk is made from a mixture of organic and natural, non-genetically modified soy beans, reducing the amount of pesticides in the air, soil, and water. Since 2002 they have been sponsoring the FarmAid concert, whose mission is to is to keep family farmers on their land and ensure a safe, healthy food supply for all Americans.

Silk Soymilk’s parent company, WhiteWave Foods, is currently operating at the _____ level
of the social responsibility pyramid.

philanthropic