Social Responsibility and Ethics - Practice Problems

Sustainable Marketing: Social Responsibility and Ethics 1) ________ marketing calls for socially and environmentally responsible actions that meet the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs. A) Sustainable B) Customer driving C) Mass D) Customer-driven E) Differential Answer: A Diff: 1 LO: 16-1: Define sustainable marketing and discuss its importance. AACSB: Ethical understanding and reasoning 2) The ________ concept specifically focuses on future company needs, but not the future welfare of customers. A) societal marketing B) strategic planning C) sustainable marketing D) global marketing E) cause marketing Answer: B Diff: 1 LO: 16-1: Define sustainable marketing and discuss its importance. AACSB: Ethical understanding and reasoning 3) The ________ concept specifically focuses on the future welfare of customers, but not on future company needs. A) societal marketing B) strategic planning C) sustainable marketing D) marketing E) selling Answer: A Diff: 1 LO: 16-1: Define sustainable marketing and discuss its importance. AACSB: Ethical understanding and reasoning 4) The ________ concept focuses on meeting the company's short-term sales, growth, and profit needs by engaging customers and fulfilling their needs and wants more effectively and efficiently than the competition. A) societal marketing B) strategic planning C) sustainable marketing D) marketing E) cause marketing Answer: D Diff: 1 LO: 16-1: Define sustainable marketing and discuss its importance. AACSB: Application of knowledge 5) The ________ concept focuses on the future welfare of consumers and future company needs. A) societal marketing B) strategic planning C) sustainable marketing D) marketing E) cause marketing Answer: C Diff: 1 LO: 16-1: Define sustainable marketing and discuss its importance. AACSB: Ethical understanding and reasoning 6) Truly sustainable marketing requires a smooth-functioning marketing system in which consumers, companies, public policy makers, and others work together to ensure socially and environmentally responsible marketing actions. Answer: TRUE Diff: 2 LO: 16-1: Define sustainable marketing and discuss its importance. AACSB: Ethical understanding and reasoning 7) While the societal marketing concept considers the future welfare of consumers and the sustainable marketing concept considers future company needs, the strategic planning concept considers both. Answer: FALSE Diff: 2 LO: 16-1: Define sustainable marketing and discuss its importance. AACSB: Ethical understanding and reasoning 8) Describe the concept of sustainable marketing. How is it different from the marketing concept, the societal marketing concept, and the strategic planning concept? Answer: Sustainable marketing calls for socially and environmentally responsible actions that meet the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs. The marketing concept recognizes that organizations thrive from day to day by determining the current needs and wants of target customers and fulfilling those needs and wants more effectively and efficiently than competitors do. It focuses on meeting the company's short-term sales, growth, and profit needs by giving customers what they want now. However, satisfying consumers' immediate needs and desires does not always serve the future best interests of either customers or the business. Whereas the societal marketing concept considers the future welfare of consumers and the strategic planning concept considers future company needs, the sustainable marketing concept considers both. Sustainable marketing calls for socially and environmentally responsible actions that meet both the immediate and future needs of customers and the company. Diff: 3 LO: 16-1: Define sustainable marketing and discuss its importance. AACSB: Ethical understanding and reasoning 9) A common criticism of the marketing system is that intermediaries ________. A) are too few in number B) mark up prices beyond the value of their services C) provide only essential services D) undervalue their service costs E) are overly protective of manufacturers' interests Answer: B Diff: 1 LO: 16-2: Identify the major social criticisms of marketing. AACSB: Ethical understanding and reasoning 10) Critics charge that high advertising and promotion costs unnecessarily increase retail prices. Marketers most likely respond to this criticism by arguing that advertising ________. A) provides essential psychological benefits about products B) adds value by giving consumers product information C) generates tax breaks for small businesses D) applies a functional value to the product E) lowers prices by increasing competition Answer: B Diff: 2 LO: 16-2: Identify the major social criticisms of marketing. AACSB: Ethical understanding and reasoning 11) A toothbrush that costs ten cents to manufacture may cost a consumer $3.00 to buy. According to critics, this is an example of ________. A) deceptive advertising B) redlining C) excessive markup D) high-pressure selling E) shoddy manufacturing Answer: C Diff: 2 LO: 16-2: Identify the major social criticisms of marketing. AACSB: Ethical understanding and reasoning; Analytical thinking 12) ________ includes practices such as misrepresenting the product's features or performance or luring customers to the store for a bargain that is out of stock. A) Deceptive packaging B) Deceptive promotion C) Deceptive pricing D) Deceptive distribution E) Deceptive branding Answer: B Diff: 2 LO: 16-2: Identify the major social criticisms of marketing. AACSB: Ethical understanding and reasoning 13) A major step in regulating unfair or deceptive acts or practices was the enactment of the ________ in 1938. A) Robinson-Patman Act B) Wheeler-Lea Act C) Consumer Product Safety Act D) Taft-Hartley Act E) Sherman Act Answer: B Diff: 1 LO: 16-2: Identify the major social criticisms of marketing. AACSB: Ethical understanding and reasoning 14) In advertising, puffery refers to ________. A) broadcasting a straightforward promotional message B) including innocent exaggeration for effect C) creating emotional appeals for a brand D) creating subliminal appeals for a brand E) providing value-added promotions Answer: B Diff: 2 LO: 16-2: Identify the major social criticisms of marketing. AACSB: Written and oral communication 15) Insurance, real estate, and used cars salespeople are trained to deliver smooth, canned talks to entice purchases. This is known as ________. A) sustainable marketing B) high-pressure selling C) customer-driven marketing D) redlining E) reverse redlining Answer: B Diff: 1 LO: 16-2: Identify the major social criticisms of marketing. AACSB: Written and oral communication 16) High-pressure selling may work in situations that involve ________. A) valued customers B) repeat customers C) service-based sales D) one-time sales E) complex products Answer: D Diff: 2 LO: 16-2: Identify the major social criticisms of marketing. AACSB: Analytical thinking 17) A company should avoid high-pressure selling if it wants to ________. A) achieve short-term gains B) move a previous year's product models C) comply with local and federal laws D) build long-term relationships with valued customers E) maintain an accurate customer database Answer: D Diff: 3 LO: 16-2: Identify the major social criticisms of marketing. AACSB: Interpersonal relations and teamwork 18) A class-action lawsuit was brought against a national burger chain, charging that its food contributed to the nationwide obesity epidemic. The suit was eventually dismissed, but critics continue to point out the health dangers of many fast food menu items. From the description, it can be concluded that these critics are concerned that the fast food industry is ________. A) using high-pressure sales tactics B) creating deceptive promotions C) engaging in deceptive pricing D) utilizing misleading packaging E) selling harmful products Answer: E Diff: 3 LO: 16-2: Identify the major social criticisms of marketing. AACSB: Ethical understanding and reasoning 19) Some companies intentionally manufacture their products with materials or components that will break, wear, rust, or rot sooner than they should. This practice is called ________. A) perceived obsolescence B) redlining C) planned obsolescence D) puffery E) reverse redlining Answer: C Diff: 2 LO: 16-2: Identify the major social criticisms of marketing. AACSB: Ethical understanding and reasoning 20) Trendy Teens manufactures fashionable clothing and accessories for the tween and teen female markets. New merchandise with a very different look is rolled out each season and heavily promoted as the "must-have" style in a variety of media. For which of the following could Trendy Teens be easily criticized in this scenario? A) deceptive promotion B) redlining C) high-pressure selling D) planned obsolescence E) perceived obsolescence Answer: E Diff: 3 LO: 16-2: Identify the major social criticisms of marketing. AACSB: Analytical thinking 21) Critics claim that companies in the ________ industry are more likely to introduce planned streams of new products that make older models obsolete. A) automotive B) housing C) food and beverage D) consumer electronics E) music Answer: D Diff: 1 LO: 16-2: Identify the major social criticisms of marketing. AACSB: Ethical understanding and reasoning 22) Critics claim that the urban poor often have to shop in smaller stores that carry inferior goods and charge higher prices because the large, national chain stores refuse to establish stores. This is known as the discriminatory practice of ________. A) perceived obsolescence B) reverse redlining C) redlining D) puffery E) planned obsolescence Answer: C Diff: 2 LO: 16-2: Identify the major social criticisms of marketing. AACSB: Ethical understanding and reasoning 23) The nation's poor areas have 30 percent fewer supermarkets than do affluent areas. As a result, many low-income consumers find themselves ________. A) buying due to high-pressure methods B) in food deserts C) redlining D) being influenced by heavy advertising and promotion E) influenced by predatory pricing tactics Answer: B Diff: 3 LO: 16-2: Identify the major social criticisms of marketing. AACSB: Ethical understanding and reasoning 24) Critics who assert that the marketing system promotes too much interest in material possessions are most likely concerned that the result of successful marketing will be ________. A) high-pressure selling tactics B) unsustainable overconsumption C) perceived obsolescence D) planned obsolescence E) deceptive pricing Answer: B Diff: 2 LO: 16-2: Identify the major social criticisms of marketing. AACSB: Ethical understanding and reasoning 25) Which of the following most likely suggests that marketers lack the power to create consumer needs and control market demand? A) consumer acceptance of changing clothing styles B) affordable products in disadvantage communities C) use of social media in product comparisons D) consumer interest in modern technology E) high failure rate of new products Answer: E Diff: 3 LO: 16-2: Identify the major social criticisms of marketing. AACSB: Analytical thinking 26) ________ includes practices such as misrepresenting the product's features or performance or luring customers to the store for a bargain that is out of stock. A) Deceptive packaging B) Deceptive pricing C) Deceptive promotion D) Puffery E) Alluring imagery Answer: C Diff: 1 LO: 16-2: Identify the major social criticisms of marketing. AACSB: Analytical thinking 27) Carboi is a company that offers consumers the opportunity to buy carbon offsets, which are contributions to projects that combat global warming by reducing carbon emissions. Carboi offers contribution packages for driving, flying, and home energy use. Through Carboi, consumers can pay some of the ________ costs of their private goods and services. A) promotional B) safety C) recovery D) distribution E) social Answer: E Diff: 3 LO: 16-2: Identify the major social criticisms of marketing. AACSB: Ethical understanding and reasoning 28) People who buy magazines that they like or who opt in to e-mail, social media, or mobile marketing programs rarely complain about the ads because they involve products and services of interest. This is counter to the claim that the marketing system creates ________. A) minimalistic social costs B) the creation of false wants C) excessive materialism D) high promotion costs E) cultural pollution Answer: E Diff: 2 LO: 16-2: Identify the major social criticisms of marketing. AACSB: Ethical understanding and reasoning 29) Jeremy Clarkson, a marketing critic, is concerned about the pervasiveness of marketing. He points to advertising messages everywhere, from websites and e-mails to unwanted direct mail and catalogs to television commercials and product tie-ins to billboards and store signs. From the description given, it can be concluded that Jeremy is concerned about ________. A) high promotion costs B) cultural pollution C) deceptive practices D) false wants and too much materialism E) the balance between private goods and social goods Answer: B Diff: 3 LO: 16-2: Identify the major social criticisms of marketing. AACSB: Ethical understanding and reasoning 30) Which of the following is not a social criticism of marketing? A) High prices B) Deceptive practices costs C) Branding D) Planned obsolescence increases cultural pollution. E) High-pressure selling Answer: C Diff: 2 LO: 16-2: Identify the major social criticisms of marketing. AACSB: Information technology 31) The European Commission recently accused Google of abusing its Web-search dominance, harming both competitors and consumers in European Union markets. The Commission also began investigating antitrust issues related to Google's Android mobile operating system. This is an example of ________. A) planned obsolescence B) excessive materialism C) predatory competition D) acquisition E) redlining Answer: C Diff: 2 LO: 16-2: Identify the major social criticisms of marketing. AACSB: Ethical understanding and reasoning 32) Deceptive pricing practices include misrepresenting the product's features or performance or luring customers to the store for a bargain that is out of stock. Answer: FALSE Diff: 1 LO: 16-2: Identify the major social criticisms of marketing. AACSB: Ethical understanding and reasoning 33) Critics charge that large marketing companies can use patents and heavy promotion spending to drive out competitors. Answer: TRUE Diff: 2 LO: 16-2: Identify the major social criticisms of marketing. AACSB: Ethical understanding and reasoning 34) Though marketers may make long-term gains with high-pressure selling tactics, this approach can do serious damage to short-term customer relationships. Answer: FALSE Diff: 2 LO: 16-2: Identify the major social criticisms of marketing. AACSB: Ethical understanding and reasoning 35) It's easy to differentiate predatory practices from effective competitive strategy and tactics. Answer: FALSE Diff: 2 LO: 16-2: Identify the major social criticisms of marketing. AACSB: Ethical understanding and reasoning 36) Many low-income consumers find themselves in food deserts, which are plentiful in fruits and vegetables, fresh fish, and chicken but lack products like frozen pizzas, Cheetos, Moon Pies, and Cokes. Answer: FALSE Diff: 1 LO: 16-2: Identify the major social criticisms of marketing. AACSB: Ethical understanding and reasoning 37) Marketers respond that most businesses try to price fairly to consumers because they want to build customer relationships and repeat business. Answer: TRUE Diff: 1 LO: 16-2: Identify the major social criticisms of marketing. AACSB: Ethical understanding and reasoning 38) An increase in private goods, such as cars, typically leads to an increased need for public services, such as parking spaces. Answer: TRUE Diff: 2 LO: 16-2: Identify the major social criticisms of marketing. AACSB: Analytical thinking 39) Marketing's purpose is to promote consumption, and the inevitable outcome of successful marketing is sustainable consumption. Answer: FALSE Diff: 2 LO: 16-2: Identify the major social criticisms of marketing. AACSB: Ethical understanding and reasoning 40) When a company expands by developing its own products rather than acquiring a competitor, the company is likely to be accused of reducing competition. Answer: FALSE Diff: 2 LO: 16-2: Identify the major social criticisms of marketing. AACSB: Ethical understanding and reasoning 41) Briefly describe a few ways the American marketing system is accused of harming the consumer. Answer: Many critics charge that the American marketing system causes prices to be higher than they would be under more "sensible" systems. Critics point to three factors—high costs of distribution, high advertising and promotion costs, and excessive markups. A longstanding charge is that greedy marketing channel members mark up prices beyond the value of their services. As a result, distribution costs too much, and consumers pay for these excessive costs in the form of higher prices. Modern marketing is also accused of pushing up prices to finance unneeded advertising, sales promotion, and packaging. Critics charge that much of this promotion and packaging adds only psychological, not functional, value. Critics also charge that some companies mark up goods excessively. Marketers are sometimes accused of deceptive practices that lead consumers to believe they will get more value than they actually do. Deceptive practices fall into three groups: promotion, packaging, and pricing. Deceptive promotion includes practices such as misrepresenting the product's features or performance or luring customers to the store for a bargain that is out of stock. Deceptive packaging includes exaggerating package contents through subtle design, using misleading labeling, or describing size in misleading terms. Deceptive pricing includes practices such as falsely advertising "factory" or "wholesale" prices or a large price reduction from a phony high retail list price. Diff: 2 LO: 16-2: Identify the major social criticisms of marketing. AACSB: Ethical understanding and reasoning 42) What are the three categories of deceptive marketing practices? Briefly describe each. Answer: Deceptive practices fall into three groups: pricing, promotion, and packaging. Deceptive pricing includes practices such as falsely advertising "factory" or "wholesale" prices or advertising a large price reduction from a phony high retail list price. Deceptive promotion includes practices such as misrepresenting the product's features or performance or luring customers to the store for a bargain that is out of stock. Deceptive packaging includes exaggerating package contents through subtle design, using misleading labeling, or describing size in misleading terms. Diff: 2 LO: 16-2: Identify the major social criticisms of marketing. AACSB: Ethical understanding and reasoning 43) Identify and discuss the major social criticisms of marketing. Answer: The impact of marketing on society has been criticized for creating false wants, too much materialism, too few social goods, and excessive cultural pollution. Critics have charged that the marketing system urges too much interest in material possessions, and that America's love affair with worldly possessions is not sustainable. Too often, people are judged by what they own rather than by who they are. The critics do not view this interest in material things as a natural state of mind but rather as a matter of false wants created by marketing. Marketers, they claim, stimulate people's desires for goods and create materialistic models of the good life. Thus, marketers have created an endless cycle of mass consumption based on a distorted interpretation of the "American Dream." Business has also been accused of overselling private goods at the expense of public goods. As private goods increase, they require more public services that are usually not forthcoming. For example, private automobile ownership (private good) requires highways, traffic control, parking spaces, and police services (public goods). The overselling of private goods results in social costs. Critics also charge the marketing system with creating cultural pollution. They feel our senses are being constantly assaulted by marketing and advertising. Commercials interrupt serious programs; pages of ads obscure magazines; billboards mar beautiful scenery; spam fills our email inboxes; flashing display ads intrude on our online and mobile screens. What's more, the critics claim, these interruptions continually pollute people's minds with messages of materialism, sex, power, or status. Diff: 3 LO: 16-2: Identify the major social criticisms of marketing. AACSB: Ethical understanding and reasoning 44) Identify the social costs of increased automobile ownership. Describe two options for restoring the balance between private and public goods. Give specific examples. Answer: Business has been accused of overselling private goods at the expense of public goods. As private goods increase, they require more public services that are usually not forthcoming. For example, an increase in automobile ownership (private good) requires more highways, traffic control, parking spaces, and police services (public goods). The overselling of private goods results in social costs. For cars, some of the social costs include traffic congestion, gasoline shortages, and air pollution. One option for restoring the balance between private and public goods is to make producers bear the full social costs of their operations. The government could require automobile manufacturers to build cars with more efficient engines and better pollutioncontrol systems. Automakers would then raise their prices to cover extra costs. A second option is to make consumers pay the social costs. For example, many cities around the world are starting to charge congestion tolls in an effort to reduce traffic congestion. To decrease rush hour traffic on the Bay Bridge between Oakland and San Francisco, California, the Metropolitan Transportation Commission charges a $6 toll during peak commute hours versus $4 at other times. The charge reduced the flow of drivers during peak hours, cutting the average 32-minute wait time some bridges approach in half. Diff: 3 LO: 16-2: Identify the major social criticisms of marketing. AACSB: Ethical understanding and reasoning 45) Describe the harmful impact that a company's marketing practices could have on other businesses. Answer: Critics charge that a company's marketing practices can harm other companies and reduce competition. They identify three problems: acquisitions of competitors, marketing practices that create barriers to entry, and unfair competitive marketing practices. Critics claim that firms are harmed and competition reduced when companies expand by acquiring competitors rather than by developing their own new products. The large number of acquisitions and the rapid pace of industry consolidation over the past several decades have caused concern that vigorous young competitors will be absorbed, thereby reducing competition. In some cases, acquisitions can be good for society. The acquiring company may gain economies of scale that lead to lower costs and lower prices. In addition, a well-managed company may take over a poorly managed company and improve its efficiency. An industry that was not very competitive might become more competitive after the acquisition. But acquisitions can also be harmful and, therefore, are closely regulated by the government. Critics have also charged that marketing practices bar new companies from entering an industry. Large marketing companies can use patents and heavy promotion spending or tie up suppliers or dealers to keep out or drive out competitors. Those concerned with antitrust regulation recognize that some barriers are the natural result of the economic advantages of doing business on a large scale. Existing and new laws can challenge other barriers. For example, some critics have proposed a progressive tax on advertising spending to reduce the role of selling costs as a major barrier to entry. Finally, some firms have, in fact, used unfair competitive marketing practices with the intention of hurting or destroying other firms. They may set their prices below costs, threaten to cut off business with suppliers, discourage the buying of a competitor's products, or use their size and market dominance to unfairly damage rivals. Although various laws work to prevent such predatory competition, it is often difficult to prove that the intent or action was really predatory. Diff: 3 LO: 16-2: Identify the major social criticisms of marketing. AACSB: Ethical understanding and reasoning 46) The two major citizen action movements to keep businesses in line are ________. A) consumerism and environmentalism B) protectionism and materialism C) consumerism and protectionism D) liberalism and monetarism E) innovation and predatory pricing Answer: A Diff: 1 LO: 16-3: Define consumerism and environmentalism and explain how they affect marketing strategies. AACSB: Ethical understanding and reasoning 47) ________ is an organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers. A) Environmentalism B) Proactivism C) Affirmative action D) Consumerism E) Liberalism Answer: D Diff: 1 LO: 16-3: Define consumerism and environmentalism and explain how they affect marketing strategies. AACSB: Ethical understanding and reasoning 48) Which of the following is a traditional right of sellers? A) the right to introduce any product in any size and style, provided it is not hazardous to personal health or safety B) the right to expect a product to be safe C) the right to expect a product to perform as claimed D) the right to consume now in a way that will preserve and sustain the world for future generations of consumers E) the right to be well informed about important aspects of a product Answer: A Diff: 1 LO: 16-3: Define consumerism and environmentalism and explain how they affect marketing strategies. AACSB: Ethical understanding and reasoning 49) Which of the following is a traditional right of buyers? A) the right to charge any price for a product, provided no discrimination exists among similar kinds of buyers B) the right to spend any amount to promote a product, provided it is not defined as unfair competition C) the right to use any product message, provided it is not misleading or dishonest in content or execution D) the right to use buying incentive programs, provided they are not unfair or misleading E) the right not to buy a product that is offered for sale Answer: E Diff: 1 LO: 16-3: Define consumerism and environmentalism and explain how they affect marketing strategies. AACSB: Ethical understanding and reasoning 50) Controlling the ingredients that go into certain products and reducing the level of advertising "noise" are part of proposals relating to the consumer's right to ________. A) not buy a product that is offered for sale B) expect a product to perform as claimed C) be well informed about important aspects of the product D) be protected against questionable products, promotions, and marketing practices E) influence marketing practices in ways that will improve quality of life Answer: E Diff: 2 LO: 16-3: Define consumerism and environmentalism and explain how they affect marketing strategies. AACSB: Ethical understanding and reasoning 51) Promoting the use of sustainable ingredients, recycling and reducing solid wastes, and managing energy consumption relate to the consumer's right to ________. A) not buy a product that is offered for sale B) be well informed about important aspects of a product C) consume now in a way that will preserve the world for future generations D) be protected against questionable products and marketing practices E) influence marketing practices in ways that will improve quality of life Answer: C Diff: 2 LO: 16-3: Define consumerism and environmentalism and explain how they affect marketing strategies. AACSB: Ethical understanding and reasoning 52) ________ is an organized movement of concerned citizens, businesses, and government agencies designed to protect and improve people's current and future living environment. A) Socialism B) Consumerism C) Environmentalism D) Consumption E) Reduction Answer: C Diff: 1 LO: 16-3: Define consumerism and environmentalism and explain how they affect marketing strategies. AACSB: Ethical understanding and reasoning 53) ________ is a management approach that involves developing strategies that both support the ecological balance and produce profits for the company. A) Consumerism B) Quasi-environmentalism C) Environmental sustainability D) Materialism E) The marketing concept Answer: C Diff: 1 LO: 16-3: Define consumerism and environmentalism and explain how they affect marketing strategies. AACSB: Ethical understanding and reasoning 54) Natural & Safe sells a concentrated, biodegradable bathroom cleaner in a recycled container. This is best described as a component of the company's internal ________ program. A) green marketing B) consumerism C) sustainability D) environmental E) sociological Answer: A Diff: 2 LO: 16-3: Define consumerism and environmentalism and explain how they affect marketing strategies. AACSB: Ethical understanding and reasoning 55) ________ involves minimizing pollution from production and all environmental impacts throughout the full life cycle of goods. A) The marketing concept B) Pollution control C) Product stewardship D) Consumerism E) Pollution prevention Answer: C Diff: 1 LO: 16-3: Define consumerism and environmentalism and explain how they affect marketing strategies. AACSB: Ethical understanding and reasoning 56) The Card Company strives to recover, reuse, and recycle paper at the end of its life cycle to be used in the production of all new greeting cards. In fact, a hundred percent of all of its cards are made from recycled materials. In this case, The Card Company is demonstrating ________. A) pollution prevention B) pollution control C) product stewardship D) the marketing concept E) the selling concept Answer: C Diff: 3 LO: 16-3: Define consumerism and environmentalism and explain how they affect marketing strategies. AACSB: Analytical thinking 57) ________ involves thinking ahead to create products that are easier to recover, reuse, recycle, or safely return to nature after usage, thus becoming part of the ecological cycle. A) Consumerism B) Design for environment C) Beyond greening D) Pollution control E) Pollution prevention Answer: B Diff: 1 LO: 16-3: Define consumerism and environmentalism and explain how they affect marketing strategies. AACSB: Ethical understanding and reasoning 58) ________ serves as a guide to the future, laying out how a company's products and services, processes, and policies must evolve and what new technologies must be developed to get there. A) An environmental mission statement B) A cradle-to-cradle practice C) Pollution prevention D) Product stewardship E) A sustainability vision Answer: E Diff: 1 LO: 16-3: Define consumerism and environmentalism and explain how they affect marketing strategies. AACSB: Ethical understanding and reasoning 59) 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) increasing the biodegradability of products Answer: A Diff: 2 LO: 16-3: Define consumerism and environmentalism and explain how they affect marketing strategies. AACSB: Ethical understanding and reasoning 60) Traditional seller's rights include the right to expect the product to perform as claimed. Answer: FALSE Diff: 2 LO: 16-3: Define consumerism and environmentalism and explain how they affect marketing strategies. AACSB: Ethical understanding and reasoning 61) Today, enlightened companies implement environmental sustainability strategies not because someone is forcing them to or to reap short-run profits but because it's the right thing to do. Answer: TRUE Diff: 1 LO: 16-3: Define consumerism and environmentalism and explain how they affect marketing strategies. AACSB: Ethical understanding and reasoning 62) In the progress toward environmental sustainability, a company must first develop a sustainability vision, which serves as a guide to the future. Answer: FALSE Diff: 2 LO: 16-3: Define consumerism and environmentalism and explain how they affect marketing strategies. AACSB: Ethical understanding and reasoning 63) Proposals relating to quality of life include controlling the ingredients that go into certain products and packaging and reducing the level of advertising "noise." Answer: TRUE Diff: 2 LO: 16-3: Define consumerism and environmentalism and explain how they affect marketing strategies. AACSB: Ethical understanding and reasoning 64) Environmentalism is a management approach that involves developing strategies that both sustain the environment and produce profits for the company. Answer: FALSE Diff: 2 LO: 16-3: Define consumerism and environmentalism and explain how they affect marketing strategies. AACSB: Ethical understanding and reasoning 65) What are the traditional rights of sellers and buyers? Answer: Traditional sellers' rights include the following: 1. The right to introduce any product in any size and style, provided it is not hazardous to personal health or safety, or, if it is, to include proper warnings and controls 2. The right to charge any price for the product, provided no discrimination exists among similar kinds of buyers 3. The right to spend any amount to promote the product, provided it is not defined as unfair competition 4. The right to use any product message, provided it is not misleading or dishonest in content or execution 5. The right to use buying incentive programs, provided they are not unfair or misleading Traditional rights of buyers include the following: 1. The right not to buy a product that is offered for sale 2. The right to expect the product to be safe 3. The right to expect the product to perform as claimed Diff: 2 LO: 16-3: Define consumerism and environmentalism and explain how they affect marketing strategies. AACSB: Analytical thinking 66) Define consumerism and environmentalism. Answer: Consumerism is an organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers. Environmentalism is an organized movement of concerned citizens, businesses, and government agencies designed to protect and improve people's current and future living environment. Diff: 1 LO: 16-3: Define consumerism and environmentalism and explain how they affect marketing strategies. AACSB: Ethical understanding and reasoning 67) List the consumer rights called for by consumer advocates. Answer: Consumer advocates call for the following consumer rights: 1. The right to be well informed about important aspects of the product 2. The right to be protected against questionable products and marketing practices 3. The right to influence products and marketing practices in ways that will improve "quality of life" 4. The right to consume now in a way that will preserve the world for future generations of consumers Diff: 2 LO: 16-3: Define consumerism and environmentalism and explain how they affect marketing strategies. AACSB: Ethical understanding and reasoning 68) Describe product stewardship, design for environment (DFE), and cradle-to-cradle practices. Answer: Companies can practice product stewardship – minimizing not only pollution from production and product design but also all environmental impacts throughout the full product life cycle, while at the same time reducing costs. Many companies are adopting design for environment (DFE) and cradle-to-cradle practices. This involves thinking ahead to design products that are easier to recover, reuse, recycle, or safely return to nature after usage, thus becoming part of the ecological cycle. Design for environment and cradle-to-cradle practices not only help to sustain the environment, but they can also be highly profitable for the company. Diff: 2 LO: 16-3: Define consumerism and environmentalism and explain how they affect marketing strategies. AACSB: Ethical understanding and reasoning 69) What is a sustainability vision? Answer: Companies can develop a sustainability vision, which serves as a guide to the future. It shows how the company's products and services, processes, and policies must evolve and what new technologies must be developed to get there. This vision of sustainability provides a framework for pollution control, product stewardship, and new environmental technology for the company and others to follow. Diff: 2 LO: 16-3: Define consumerism and environmentalism and explain how they affect marketing strategies. AACSB: Ethical understanding and reasoning 70) The ________ concept holds that a company's marketing should support the best long-run performance of the marketing system. A) selling B) global marketing C) sustainable marketing D) differential marketing E) marketing Answer: C Diff: 1 LO: 16-4: Describe the principles of sustainable marketing. AACSB: Application of knowledge 71) Enlightened marketing calls for building long-run consumer engagement, loyalty, and relationships by continually improving the benefits consumers receive from the firm's market offering. This is related to ________, one of the five sustainable marketing principles. A) consumer-oriented marketing B) innovative marketing C) sense-of-mission marketing D) societal marketing E) customer value marketing Answer: E Diff: 2 LO: 16-4: Describe the principles of sustainable marketing. AACSB: Analytical thinking 72) The App Store views and organizes its marketing activities from the viewpoint of its buyers, who are predominantly comprised of the Millennial generation. Management works hard to sense, serve, and satisfy the needs of this tech savvy demographic. Which of the following does The App Store most likely practice? A) consumer-oriented marketing B) societal marketing C) sense-of-mission marketing D) affiliate marketing E) innovative marketing Answer: A Diff: 3 LO: 16-4: Describe the principles of sustainable marketing. AACSB: Analytical thinking 73) Which sustainable marketing principle emphasizes building long-run consumer engagement, loyalty, and relationships? A) sense-of-mission marketing B) innovative marketing C) customer value marketing D) consumerist marketing E) differential marketing Answer: C Diff: 2 LO: 16-4: Describe the principles of sustainable marketing. AACSB: Interpersonal relations and teamwork 74) Innovative marketing most likely involves ________. A) protecting the natural environment B) considering the consumer's point of view C) seeking real product and marketing improvements D) defining goals in broad social terms rather than narrow product terms E) placing an emphasis on increasing short-run sales rather than long-term value Answer: C Diff: 2 LO: 16-4: Describe the principles of sustainable marketing. AACSB: Analytical thinking 75) "Doing good" and "doing well" are considered a double bottom line of values and profits for many organizations such as TOMS. Profits sometimes suffer as a result. This is one of the challenges of ________ marketing. A) societal B) sense-of-mission C) consumer-oriented D) customer value E) innovative Answer: B Diff: 2 LO: 16-4: Describe the principles of sustainable marketing. AACSB: Ethical understanding and reasoning 76) Lakeland Inc. employees get 40 hours paid leave each year to pursue volunteer projects. The company runs a service day that hosts projects in 25 countries, and it supports a nonprofit that brings young people into public service for a year. Lakeland could be most accurately described as practicing ________ marketing. A) affiliate B) undifferentiated C) differentiated D) innovative E) sense-of-mission Answer: E Diff: 3 LO: 16-4: Describe the principles of sustainable marketing. AACSB: Analytical thinking 77) When a company makes marketing decisions by considering consumers' wants and interests, the company's requirements, and society's long-run interests, it is most likely practicing ________ marketing. A) value B) societal C) sense-of-mission D) consumer-oriented E) customer value Answer: B Diff: 1 LO: 16-4: Describe the principles of sustainable marketing. AACSB: Ethical understanding and reasoning 78) What are deficient products? A) products that have neither immediate appeal nor long-run benefits B) products that give high immediate satisfaction but 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) products in the decline stage of the product life cycle Answer: A Diff: 2 LO: 16-4: Describe the principles of sustainable marketing. AACSB: Application of knowledge 79) Products that give high immediate satisfaction but may hurt consumers in the long run are called ________ products. A) deficient B) pleasing C) salutary D) desirable E) threatening Answer: B Diff: 1 LO: 16-4: Describe the principles of sustainable marketing. AACSB: Application of knowledge 80) Which of the following is the best example of a salutary product? A) cereal B) cigarettes C) bottled water D) junk food E) dental insurance Answer: E Diff: 2 LO: 16-4: Describe the principles of sustainable marketing. AACSB: Analytical thinking 81) Beverages that are high in sugar are called ________ products. A) deficient B) pleasing C) salutary D) desirable E) salubrious Answer: B Diff: 1 LO: 16-4: Describe the principles of sustainable marketing. AACSB: Analytical thinking 82) ________ products give both high immediate satisfaction and high long-run benefits. A) Deficient B) Pleasing C) Desirable D) Salutary E) Threatening Answer: C Diff: 1 LO: 16-4: Describe the principles of sustainable marketing. AACSB: Application of knowledge 83) Maytag's front-loading Neptune washer comes in attractive designs and also guarantees quick cleaning and high energy efficiency. The Neptune washer is most likely an example of a ________ product. A) deficient B) pleasing C) salutary D) desirable E) disposable Answer: D Diff: 3 LO: 16-4: Describe the principles of sustainable marketing. AACSB: Analytical thinking 84) The societal marketing concept states that companies should try to turn ________. A) deficient products into pleasing ones B) desirable products into pleasing ones C) deficient products into salutary ones D) all of their products into salutary ones E) all of their products into desirable ones Answer: E Diff: 2 LO: 16-4: Describe the principles of sustainable marketing. AACSB: Ethical understanding and reasoning 85) The challenge for makers of ________ products is to add long-run benefits without reducing the products' agreeable qualities. A) salutary B) desirable C) pleasing D) durable E) deficient Answer: C Diff: 2 LO: 16-4: Describe the principles of sustainable marketing. AACSB: Analytical thinking 86) The challenge posed by ________ products is to add some agreeable qualities so that they will become more desirable in the consumers' minds. A) salutary B) desirable C) pleasing D) durable E) aesthetic Answer: A Diff: 2 LO: 16-4: Describe the principles of sustainable marketing. AACSB: Analytical thinking 87) In customer value marketing, a company should seek real product and marketing improvements. Answer: FALSE Diff: 1 LO: 16-4: Describe the principles of sustainable marketing. AACSB: Analytical thinking 88) When a company views and organizes its marketing activities from only the consumer's point of view, it is practicing societal marketing. Answer: FALSE Diff: 1 LO: 16-4: Describe the principles of sustainable marketing. AACSB: Analytical thinking 89) A company that makes marketing decisions by considering consumers' wants and long-run interests, the company's requirements, and society's long-run interests is practicing consumeroriented marketing. Answer: FALSE Diff: 2 LO: 16-4: Describe the principles of sustainable marketing. AACSB: Analytical thinking 90) Bicycle helmets and some insurance offerings are considered pleasing products that give high immediate satisfaction but may hurt consumers in the long run. Answer: FALSE Diff: 2 LO: 16-4: Describe the principles of sustainable marketing. AACSB: Analytical thinking 91) Cigarettes and junk food are considered pleasing products. Answer: TRUE Diff: 2 LO: 16-4: Describe the principles of sustainable marketing. AACSB: Analytical thinking 92) Xorbate Blue is a relatively new food supplement that provides both high immediate satisfaction and high long-run benefits. Xorbate Blue is best classified as a salutary product. Answer: FALSE Diff: 3 LO: 16-4: Describe the principles of sustainable marketing. AACSB: Analytical thinking 93) Briefly discuss the five principles of sustainable marketing. Answer: Under the sustainable marketing concept, a company's marketing should support the best long-run performance of the marketing system. It should be guided by five sustainable marketing principles: consumer-oriented marketing, customer value marketing, innovative marketing, sense-of-mission marketing, and societal marketing. 1. Consumer-oriented marketing acts from the consumer's point of view. It should work hard to sense, serve, and satisfy the needs of a defined group of customers—both now and in the future. 2. Customer value marketing exists when a firm puts most of its resources into customer valuebuilding marketing investments. By creating value for consumers, the company can capture value from consumers in return. 3. Innovative marketing seeks real product and marketing improvements. The company that overlooks new and better ways to do things will eventually lose customers to another company that has found a better way. 4. When a company defines its mission in broad social terms rather than narrow product terms, it is practicing sense-of-mission marketing. Brands linked with broader missions can serve the best long-run interests of both the brand and consumers. 5. Finally, societal marketing is in use when the company makes marketing decisions by considering consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests. Companies should be aware that neglecting consumer and societal long-run interests is a disservice to consumers and society. Alert companies view societal problems as opportunities. Diff: 2 LO: 16-4: Describe the principles of sustainable marketing. AACSB: Ethical understanding and reasoning 94) Jeff Barkins is a conscientious marketing manager. Sometimes, Jeff and his staff are unclear what decisions to make when faced with moral dilemmas. Jeff and other managers could create broad guidelines that everyone in the organization must follow in the form of a ________. A) business value statement B) company mission statement C) company vision statement D) corporate marketing ethics policy E) financial statement Answer: D Diff: 3 LO: 16-5: Explain the role of ethics in marketing. AACSB: Ethical understanding and reasoning 95) Dealing with issues of ethics and social responsibility in a proactive, open, and forthright way helps to build and maintain strong customer relationships based on honesty and trust. Answer: TRUE Diff: 2 LO: 16-5: Explain the role of ethics in marketing. AACSB: Ethical understanding and reasoning 96) Corporate marketing ethics policies should most likely address distributor relations, advertising standards, customer service, pricing product development, and general ethical standards. Answer: TRUE Diff: 2 LO: 16-5: Explain the role of ethics in marketing. AACSB: Ethical understanding and reasoning 97) According to the societal marketing concept, firms and managers should focus primarily on what marketing efforts are legal and allowed. Answer: FALSE Diff: 1 LO: 16-5: Explain the role of ethics in marketing. AACSB: Ethical understanding and reasoning 98) According to the World Bank, firms from Australia, Denmark, Finland, and Japan engage in the most corrupt business practices. Answer: FALSE Diff: 2 LO: 16-5: Explain the role of ethics in marketing. AACSB: Ethical understanding and reasoning 99) How can companies help marketers act ethically when faced with ethical dilemmas? Answer: Companies can develop corporate marketing ethics policies to provide broad guidelines for everyone in the organization to follow. These policies should cover distributor relations, advertising standards, customer service, pricing, product development, and general ethical standards. Companies must develop a set of principles that will help employees figure out the moral importance and implications of each situation and decide how far they can go in good conscience. Diff: 2 LO: 16-5: Explain the role of ethics in marketing. AACSB: Ethical understanding and reasoning 100) Compare the two common principles that can be used to guide companies and marketing managers on issues of ethics and social responsibility. Answer: One principle states that issues of ethics and social responsibility should be decided by the free market and legal system. Under this principle, companies and their managers are not responsible for making moral judgments. Companies can in good conscience do whatever the market and legal systems allow. A second principle puts responsibility not on the system but in the hands of individual companies and managers. This more enlightened philosophy suggests that a company should have a social conscience. Companies and managers should apply high standards of ethics and morality when making corporate decisions, regardless of "what the system allows." Each firm and marketing manager must work out a philosophy of socially responsible and ethical behavior. Under the societal marketing concept, managers must look beyond what is legal and allowable and develop standards based on personal integrity, corporate conscience, and long-run consumer welfare. Diff: 2 LO: 16-5: Explain the role of ethics in marketing. AACSB: Ethical understanding and reasoning