BUS 346 Final (Ch. 4) – Flashcards
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During the implementation phase, the company can discuss targeting decisions and implementing the marketing mix appropriately to minimize this risk. Perhaps safe use of the ladder should be emphasized in marketing communications, or perhaps steps should be taken to discourage certain consumers from buying these ladders. The correct answer is: implementation
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Anupam's company manufactures industrial ladders. He is concerned that consumers who do not understand ladder safety will purchase these extra-tall ladders and injure themselves. During which phase of the strategic marketing planning process should this issue be addressed? a. ethics b. design c. control d. implementation e. planning
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Identifying potential ethical issues is the first step in the ethical decision-making process. The correct answer is: identify issues that need to be addressed.
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Garrett has just purchased a beer distributorship. He wants to increase the visibility of his firm in local markets, but he knows there are a number of regulations and socially accepted practices associated with promoting alcoholic beverages. According to the Framework for Ethical Decision Making, the first thing Garrett should do is to a. brainstorm and evaluate alternatives. b. promote the firm's corporate social responsibility efforts. c. gather information and identify stakeholders. d. identify issues that need to be addressed. e. choose a course of action.
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Johnson and Johnson immediately withdrew Tylenol from the shelves when the problem was discovered, sacrificing short-term profits but protecting its customers' welfare. The correct answer is: sacrificed short-term profits for long-term credibility.
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When Johnson and Johnson removed all Tylenol from the shelves after some containers were tampered with, poisoning and killing seven people, the company a. was ordered to do so by the Food and Drug Administration. b. sacrificed short-term profits for long-term credibility. c. developed plans to sell the returned Tylenol bottles in less developed countries. d. felt that nothing could stop Tylenol from losing most of its customers. e. was forced to do so following extensive consumer outcry
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When using the Ethical Decision-Making Framework, the first step is to identify the issues. The next three steps are to gather information, brainstorm/evaluate alternatives, and finally to choose a course of action. Toyota, in its recall, had chosen a course of action. The correct answer is: choose a course of action
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When Toyota owners began to report problems with sticking accelerator pedals and non-functioning brakes, Toyota at first ignored or rejected the claims. Eventually, the company evaluated the issue and did a recall. Which of the four steps of the Ethical Decision-Making Framework was Toyota performing when it recalled several of its 2007-2010 models? a. choose a course of action b. assess risk c. brainstorm and evaluate alternatives d. gather information and identify stakeholders e. identify issues
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Corporate social responsibility is separate from the Ethical Decision-Making Framework. The correct answer is: promote the firm's corporate social responsibility efforts.
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The Ethical Decision-Making Framework includes all of the following steps EXCEPT a. choose a course of action. b. promote the firm's corporate social responsibility efforts. c. identify issues. d. gather information and identify stakeholders. e. brainstorm and evaluate alternatives.
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Enron was exhibiting unethical behavior through its financial manipulation, while at the same time demonstrating social responsibility through its charitable donations. The correct answer is: demonstrating corporate social responsibility.
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Ironically, while the leaders of Enron Corporation were manipulating the company's finances for their personal benefit, the company was a major donor to Houston area charities. Enron had unethical business practices, but was also a. practicing marketing ethics. b. demonstrating corporate social responsibility. c. creating a local ethical business climate. d. falsifying the company's finances through charitable donations. e. manipulating the public sentiment for its own benefit.
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Obeying the law when it comes to safety isn't sufficient to be considered socially responsible—the firm is simply behaving legally. Using recyclable materials would be a socially responsible practice, but it serves society (the environment), not specifically customers. Similarly, fair pay practices serve employees, not specifically customers. Apple can exhibit socially responsible behavior toward customers by treating their personal information with respect. The correct answer is: By protecting the privacy of personal information collected on its website
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How might a technology company like Apple ensure that it behaves in a socially responsible way toward its customers? a. By ensuring that it pays its employees fairly. b. By adhering to government-mandated safety standards in its stores. c. By ensuring that its packaging materials are recyclable. d. By protecting the privacy of personal information collected on its website. e. Social responsibility isn't relevant where customers are concerned; it has to do with serving society as a whole.
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Marketers' actions receive more scrutiny because they are responsible for most of the firm's external connections. The correct answer is: they interact directly with consumers.
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Unlike other business functions like accounting or finance, people in marketing are often singled out as the root cause of ethical concerns because a. the problems that occurred at Enron, Tyco, and WorldCom were caused by marketers. b. they are trained in the art of effective persuasive communication. c. doing a good job of marketing requires some degree of unethical behavior. d. they interact directly with consumers. e. they are not considered to be as quantitatively skilled as accounting and finance people.
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The opening of the Credo, quoted in the text, mentions all users of its products (including doctors and nurses), its employees, the communities in which employees live, and its stockholders. The correct answer is: users of its products, its employees, the community, and its stockholders.
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The Johnson and Johnson Credo acknowledges the company's responsibility to a. users of its products, the researchers who develop the products, regulators, and its stockholders. b. domestic markets, other countries in the developed world, and finally countries in the developing world. c. doctors, nurses, insurance companies, and users of its products. d. users of its products, its employees, the community, and its stockholders. e. its stockholders first, its managers, its employees, and its suppliers and vendors.
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Marketers' actions receive more scrutiny because they are responsible for most of the firm's external connections. The correct answer is: they interact directly with consumers.
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Unlike other business functions like accounting or finance, people in marketing are often singled out as the root cause of ethical concerns because a. doing a good job of marketing requires some degree of unethical behavior. b. they are trained in the art of effective persuasive communication. c. the problems that occurred at Enron, Tyco, and WorldCom were caused by marketers. d. they are not considered to be as quantitatively skilled as accounting and finance people. e. they interact directly with consumers.
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Johnson and Johnson reassured customers the product was safe and reminded them not to take more than the recommended dosage. The correct answer is: It reminded people not to take more than the recommended dosage.
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How did Johnson and Johnson recently respond to new limits on acetaminophen dosages? a. It reminded people not to take more than the recommended dosage. b. It pulled all Tylenol products off the shelf until it could be sure it wasn't causing problems for consumers. c. It changed the dosages to significantly lower levels. d. It changed its packaging to reflect the new standards. e. It didn't do anything and waited to see if there would be a problem with its products.
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Among the most important controls is policing potential violations of human rights and child labor laws. Deciding to avoid these violations would be an element of implementation, and adding it to the mission statement would take place during the planning phase. The correct answer is: the mission statement.
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Policing potential violations of human rights and child labor laws is an important component of a. planning. b. implementation. c. social responsibility. d. the mission statement. e. control.
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Different questions must be asked at each stage of the strategic marketing planning process. The correct answer is: vary at each stage of the process.
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When looking at ethical issues associated with the strategic marketing planning process, questions a. always follow a standard format. b. vary at each stage of the process. c. should never be asked; only managers should deliberate marketing ethical issues. d. are never asked during the implementation stage. e. should only be addressed during the evaluation stage.
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General Mills is evaluating its performance, which is a part of the control phase. The correct answer is: control
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Every year, General Mills issues a report discussing how the firm has performed against its own standards of ethical conduct. This report is part of General Mills' __________ phase of its strategic marketing planning process. a. evolution b. planning c. implementation d. marketing mix e. control
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Even in economically constrained settings, 38 percent of U.S. consumers actively tried to purchase from companies they considered responsible. The correct answer is: actively tried to purchase from companies they considered responsible.
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A recent poll conducted by Time magazine found that 38 percent of U.S. consumers a. didn't care if a company acted responsibly. b. purchased from companies they perceived to be ethical or not ethical equally. c. were concerned with social responsibility, but not the ethical behavior of a company. d. actively tried to purchase from companies they considered responsible. e. had no idea if the companies they purchased from were responsible.
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The school board has completed the first two steps of the Ethical Decision-Making Framework. The third step is to assemble the stakeholders to brainstorm and evaluate alternatives. The correct answer is: engage in brainstorming and evaluate alternatives.
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The Harvest County School Board is concerned about deteriorating school facilities, combined with a shrinking budget. The board began by studying the issue, and then identified parents, children, teachers, staff, and taxpayers as groups who have a vested interest in the problem. The school board has listened to each group's concerns. In the Ethical Decision-Making Framework, its next action should be to a. assess impact of its actions beyond the classroom. b. engage in brainstorming and evaluate alternatives. c. choose a course of action. d. evaluate the legal ramifications. e. identify issues of concern to lawmakers.
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This question evaluates the outcome of marketing decisions, which takes place in the control phase. The correct answer is: control
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Denny is considering the question, "Did our actions have a negative impact on any stakeholder group?" Denny is addressing marketing ethical issues in the __________ phase of the strategic marketing planning process. Select one: a. brainstorming b. implementation c. situation analysis d. control e. planning
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These are two major issues related to marketing ethics. The correct answer is: marketing
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Deceptive advertising and promotion of inferior products are examples of __________ ethical issues. a. marketing b. accounting c. finance d. economic e. social
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Previously, real estate agents could withhold information from buyers unless the buyers explicitly asked for it. The correct answer is: withholding information.
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New real estate disclosure regulations require sellers and their agents to tell prospective buyers about any existing problems. Previously, they were only expected to answer buyers' questions. The new regulation addressed the marketing ethical problem of a. deceptive pricing tactics. b. misleading advertising. c. misrepresentation of company data. d. high-pressure sales techniques. e. withholding information.
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The first step in creating a strong ethical climate is to establish a set of shared ethical values that the company and its employees will respect when doing business. The correct answer is: set of ethical values
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Janice was disturbed to find that the real estate company she had just started working for did not have a __________, the starting point for creating a strong ethical climate. a. ethical activity bonus b. employment contract c. ethical behavior seminar d. set of ethical values e. social responsibility program
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These are examples of ethical issues of concern to marketers. Even in a firm with a strong ethical climate, some business opportunities that arise may raise ethical concerns and need to be considered in the context of the firm's ethical values. The correct answer is: marketing ethical issues.
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The sale of products that may damage the environment, the use of sweatshop labor, and the marketing of dangerous products are examples of a. ethical issues but not marketing issues. b. issues that don't even need to be discussed in ethical firms. c. marketing ethical issues. d. marketing issues but not ethical issues. e. internal, controllable marketing issues.
