Chapter 4-Marketing Ethics – Flashcards
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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 Select one: a. high-pressure sales techniques. b. withholding information. c. deceptive pricing tactics. d. misleading advertising. e. misrepresentation of company data.
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b. withholding information Previously, real estate agents could withhold information from buyers unless the buyers explicitly asked for it.
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Janice was disturbed to find that the real estate company she had just started working for did not have aNo __________, the starting point for creating a strong ethical climate. elect one: a. social responsibility program b. ethical behavior seminar c. ethical activity bonus d. employment contract e. set of ethical values
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e. set of ethical values 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.
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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 Select one: a. the problems that occurred at Enron, Tyco, and WorldCom were caused by marketers. b. they are not considered to be as quantitatively skilled as accounting and finance people. c. doing a good job of marketing requires some degree of unethical behavior. d. they interact directly with consumers. e. they are trained in the art of effective persuasive communication.
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d. they interact directly with consumers. Marketers' actions receive more scrutiny because they are responsible for most of the firm's external connections.
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Many executives and corporate boards of directors do not perceive social responsibility as part of their mission or responsibility. These business leaders consider corporate social responsibility to be Select one: a. the key to operational effectiveness. b. the equivalent of the AMA ethical value, "Do no harm." c. a component of basic business ethics. d. beyond the norms of corporate ethical behavior. e. a basic requirement of any business.
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d. beyond the norms of corporate ethical behavior. Some managers believe that firms should focus on increasing shareholder value and need not concern themselves with social responsibility.
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When auditing expenses claimed by the university president, the auditors found extravagant spending on $1,000 per night hotels, banquets, and gourmet restaurants. The president was fired, alumni donations declined, and staff members—who were disturbed by the extravagance while staff salaries were frozen—quit their jobs. This example illustrates Select one: a. the lack of information needed to make ethical decisions. b. that the impact of unethical actions can affect the organization in unanticipated ways. c. that the extravagant spending should have been kept quiet to minimize damage to the university. d. the need to identify issues. e. that universities are more corrupt than companies.
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b. that the impact of unethical actions can affect the organization in unanticipated ways. Correct Hushing up the unethical behavior is not a solution; among other things, if the matter were ever to become public, the embarrassment to the university would be far greater than if it dealt with the situation from the start. The example shows, though, that unethical actions can harm an organization in a variety of ways.
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Deceptive advertising and promotion of inferior products are examples of __________ ethical issues. Select one: a. social b. economic c. finance d. accounting e. marketing
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e. marketing These are two major issues related to marketing ethics.
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How did Johnson and Johnson recently respond to new limits on acetaminophen dosages? Select one: a. It changed its packaging to reflect the new standards. Incorrect 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 didn't do anything and waited to see if there would be a problem with its products. e. It reminded people not to take more than the recommended dosage.
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e. It reminded people not to take more than the recommended dosage. Johnson and Johnson reassured customers the product was safe and reminded them not to take more than the recommended dosage.
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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 Select one: a. they are not considered to be as quantitatively skilled as accounting and finance people. b. the problems that occurred at Enron, Tyco, and WorldCom were caused by marketers. c. they interact directly with consumers. d. doing a good job of marketing requires some degree of unethical behavior. e. they are trained in the art of effective persuasive communication.
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c. they interact directly with consumers. Correct Marketers' actions receive more scrutiny because they are responsible for most of the firm's external connections.
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In a recent Gallup survey, which of the following professions was rated lowest in ethical standards? Select one: a. lawyers b. medical doctors c. senators d. real estate agents e. car salespeople
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e. car salespeople In the study shown in the text, car salespeople were rated the least ethical profession of the choices given.
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Compared to the average company, firms with strong ethical climates tend to Select one: a. employ more business development consultants. b. offer more goods and services. c. be more socially responsible. d. invest more in sales training software. e. have higher turnover.
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A strong ethical climate and social responsibility often (though not always) go hand in hand. The correct answer is: be more socially responsible.
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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 Select one: a. developed plans to sell the returned Tylenol bottles in less developed countries. b. was forced to do so following extensive consumer outcry. c. sacrificed short-term profits for long-term credibility. d. felt that nothing could stop Tylenol from losing most of its customers. e. was ordered to do so by the Food and Drug Administration.
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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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Deceptive advertising and promotion of inferior products are examples of __________ ethical issues. Select one: a. accounting b. marketing c. economic d. social e. finance
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These are two major issues related to marketing ethics. The correct answer is: marketing
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During the __________ phase of the strategic marketing planning process, marketers use systems to check whether each potential ethical issue raised in earlier phases was addressed. Select one: a. control b. planning c. social responsibility d. implementation e. assessment
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The firm assesses its performance regarding ethics during the control phase. The correct answer is: control
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If Melissa decides to sell the best ice cream on earth, and intends to establish a strong ethical climate in her organization, during which phase of the strategic marketing planning process should she introduce ethical considerations? Select one: a. Planning b. Ethics c. Control d. Experience e. Implementation
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Firms should begin establishing an ethical climate at the planning phase by including ethical statements in the firm's mission or vision statements. The correct answer is: Planning
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After a firm has identified the various stakeholders and their issues and gathered available data related to an ethical decision-making situation, __________ should engage in brainstorming and evaluation of alternatives. Select one: a. any individuals with competing interests b. all parties relevant to the decision c. the senior managers most involved d. key customers e. elected officials
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All relevant parties should participate in brainstorming and evaluation. The correct answer is: all parties relevant to the decision
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Multinational corporations are recognizing their responsibility to the people who make their products Select one: a. if the local government suggests that the company pay bribes to officials. b. unless another firm actually employs the workers. c. even if they aren't their employees. d. when public attention might embarrass the corporation. e. when it suits them financially.
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When firms outsource production to manufacturers in other countries, it does not absolve them of responsibility for the working conditions in the factory. The correct answer is: even if they aren't their employees.
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Policing potential violations of human rights and child labor laws is an important component of Select one: a. the mission statement. b. control. Incorrect c. social responsibility. d. planning. e. implementation.
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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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When looking at ethical issues associated with the strategic marketing planning process, questions Select one: a. vary at each stage of the process. b. should only be addressed during the evaluation stage. c. always follow a standard format. d. are never asked during the implementation stage. e. should never be asked; only managers should deliberate marketing ethical issues.
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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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Many corporations are shifting from defined benefit to defined contribution retirement programs. When considering changes to retirement programs, the primary stakeholders are the Select one: a. employees. b. shareholders. c. marketing managers. d. customers. e. competition.
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The primary stakeholders are the employees whose retirement programs are changing. The correct answer is: employees.
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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 Select one: a. marketing ethical issues. b. ethical issues but not marketing issues. c. marketing issues but not ethical issues. d. issues that don't even need to be discussed in ethical firms. e. internal, controllable marketing issues.
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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 chapter opening case on the fishing industry focused on what ethical dilemma? Select one: a. Fisheries and restaurants are substituting a less popular fish for a more popular one without the consumer's knowledge. b. Fisheries are overcharging distributors for fish, which is being passed on to consumers. c. Restaurants are selling fish that are legally banned in the U.S. d. Restaurants are selling more fish than ever in spite of overfishing. e. The U.S. fishing industry is selling more fish overseas in spite of increased U.S. demand.
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Substituting an unknown or less popular fish for a more popular one is unethical and becoming more common. The regulations on fish labeling and naming, however, are flexible, so in many cases this is not illegal. The correct answer is: Fisheries and restaurants are substituting a less popular fish for a more popular one without the consumer's knowledge.
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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? Select one: a. ethics b. design c. implementation d. control e. planning
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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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Compared to the average company, firms with strong ethical climates tend to Select one: a. have higher turnover. b. employ more business development consultants. c. be more socially responsible. d. invest more in sales training software. e. offer more goods and services.
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A strong ethical climate and social responsibility often (though not always) go hand in hand. The correct answer is: be more socially responsible.
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When auditing expenses claimed by the university president, the auditors found extravagant spending on $1,000 per night hotels, banquets, and gourmet restaurants. The president was fired, alumni donations declined, and staff members—who were disturbed by the extravagance while staff salaries were frozen—quit their jobs. This example illustrates Select one: a. that the impact of unethical actions can affect the organization in unanticipated ways. b. the lack of information needed to make ethical decisions. c. the need to identify issues. d. that the extravagant spending should have been kept quiet to minimize damage to the university. e. that universities are more corrupt than companies.
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Hushing up the unethical behavior is not a solution; among other things, if the matter were ever to become public, the embarrassment to the university would be far greater than if it dealt with the situation from the start. The example shows, though, that unethical actions can harm an organization in a variety of ways. The correct answer is: that the impact of unethical actions can affect the organization in unanticipated ways.
