Marketing Ch 4 – Flashcards
Unlock all answers in this set
Unlock answersquestion
• 1. The Consumer Awareness and Education Department was established within Anheuser-Busch to
answer
promote responsible drinking and deter underage drinking and alcohol abuse.
question
• 2. The Family Talk About Drinking guidebook developed by Anheuser-Busch to help parents address the topic of underage drinking is an example of
answer
Ethical behavior in marketing
question
• 3. Anheuser-Busch's commitment to saving the environment indicates that it would act in accordance with __________, the view that an organization should discover and satisfy the needs of its consumers in a way that provides for society's well-being.
answer
Social Responsibility
question
• 4. Ethics refer to the
answer
Moral principles and values that govern the actions and decisions of an individual or group
question
• 5. Laws refer to
answer
Society's value and standards that are enforceable in the courts
question
• 6. Which of the following statements accurately distinguishes between laws and ethics?
answer
Ethics deal with personal and moral principles whereas laws are society's values and are enforceable in the courts.
question
• 7. More than 70 percent of the physicians in the Maricopa County (Arizona) Medical Society agreed to establish a maximum fee schedule for health services to curb rising medical costs. All physicians were required to adhere to this schedule as a condition for membership in the society. The U.S. Supreme Court ruled that this agreement violated the Sherman Act and represented price fixing. This example illustrates that the physician's actions were
answer
ethical but illegal.
question
• 8. When the owner of a small publishing company allowed a friend who was starting a machine embroidery business to load the publishing company's copy of Microsoft WORD on the new business's computer, it was an example of
answer
An activity that is illegal and unethical
question
• 9. Enron's Chief Financial Officer Andrew Fastow was indicted and then pleaded guilty on charges of securities fraud in the Enron case and was accused of enriching himself and his family at the company's expense. He ordered an employee to fake financing to fool an adviser to the California Public Employees' Retirement System. The employee resisted, but Fastow, in his tenure with Enron, was acting
answer
Unethically and illegally
question
• 10. China is the world's largest tobacco-producing country and has 300 million smokers. Approximately 700,000 Chinese die annually from smoking-related illnesses. This figure is expected to rise to more than 2 million by 2025. China restricts tobacco imports. U.S. trade negotiators advocate free trade, thus allowing U.S. tobacco companies to market their products in China. The U.S. trade negotiators are acting
answer
Unethically but legally
question
• 11. The current low perception of ethical business behavior can be explained by a number of reasons including the increased pressure on business people to make decisions in a society with diverse value systems, a growing tendency for business decisions to be judged publicly by groups with different values and interests, an increase in the public's expectations of ethical business behavior, and
answer
The decline of ethical business behavior
question
• 12. In marketing, the set of values, ideas, and attitudes that are learned and shared among members of a group is referred to as __________.
answer
Culture
question
• 13. Culture refers to the set of values, ideas, and attitudes that are learned and shared among members of a group. Culture also serves as a socializing force that dictates what is morally right and just. The important thing to remember is
answer
Moral standards are relative to particular societies.
question
• 14. Factors influencing personal, moral, philosophy, and ethical behavior include societal culture and norms, business culture and industry practices, and
answer
corporate culture and expectations
question
• 15. The unauthorized use of intellectual property can severely affect the owners of that property; it can also
answer
Have a negative impact on the economy through the loss of jobs, wages, or tax revenue
question
• 16. In marketing, the effective rules of the game, the boundaries between competitive and unethical behavior, and the codes of conduct in business dealings are referred to as
answer
Business Culture
question
• 17. Investors should understand that when purchasing stock the principle of __________ is in effect. It benefits the investor to do research on the company so that they will make a wise purchase.
answer
Caveat emptor
question
• 18. The Consumer Bill of Rights refers to
answer
a law that codified the ethics of exchange between buyers and sellers, including the rights to safety, to be informed, to choose, and to be heard.
question
• 19. In 1962, President John F. Kennedy outlined a Consumer Bill of Rights that codified the ethics of exchange between buyers and sellers. These were the right (1) to be safe, (2) to be informed, (3) to choose, and (4) to
answer
Be heard
question
• 20. Inc. learned that the lithium-ion batteries in its notebook computers posed a fire hazard to consumers. The company recalled 2.7 million batteries and gave consumers a replacement before any personal injuries resulted. Dell was most likely concerned with consumers'
answer
right to safety.
question
• 21. When shopping on the Internet, most consumers assume the personal information they give out is confidential. Subscribers to America Online (AOL) were upset when AOL proposed giving member information to partners without telling the subscribers. This is related most directly to the consumer's
answer
Right to be informed
question
• 22. The right to be heard means that
answer
consumers should have access to public-policy makers regarding complaints about products and services.
question
• 23. Business culture affects ethical behavior in competition. Two kinds of unethical behavior are most common
answer
Economic espionage and bribery
question
• 24. Economic espionage includes such activities as illegal trespassing, theft, fraud, misrepresentation, wiretapping, __________, and violations of written and implicit employment agreements with noncompete clause.
answer
Searching through a competitor's trash
question
• 25. Economic espionage is most likely to occur in which types of industries
answer
High tech electronics and aerospace
question
• 26. Bribery is most likely to occur when
answer
The industry is experiencing little competition
question
• 27. Two laws specifically intended to curb economic espionage and bribery in international marketing are the
answer
Economic espionage act and Foreign corrupt practices act.
question
• 28. Corporate culture manifests itself in many different ways: the ethical behavior of top management, expectations for ethical behavior present in formal codes of ethics, and
answer
The dress codes, team work, and sayings of its employees
question
• 29. firm's formal statement of ethical principles and rules of conduct is called a
answer
Code of Ethics
question
• 31. Which of the following is one of the major reasons for the violation of ethics code
answer
Lack of specificity of the ethics code.
question
• 32. Recently, six executives of Tyson Foods, one of the world's largest poultry, beef, and pork processors, were arrested for illegal smuggling of undocumented foreign workers into the U.S. to work at Tyson plants. Tyson's violations are the result of __________, one of the major reasons why some companies fail to establish ethical behavior.
answer
Top management's behavior
question
• 33. Whistle-blowers refer to
answer
Employees who report unethical or illegal actions of their employers.
question
• 34. Which of the following statements describes a whistleblower?
answer
An employee tells the Consumer Product Safety Commission his company falsified safety reports on a child's car seat
question
• 35. Ultimately, ethical choices are based on
answer
the personal moral philosophy of the decision maker
question
• 36. Moral idealism refers to
answer
A moral philosophy that considers individual rights or duties as universal, regardless of the outcome.
question
• 37. The 3M company stopped production of a chemical they had manufactured for nearly 40 years when tests showed the chemical could be harmful in large doses; even thought the products in which it was used had no known harmful health of environmental effect. This is an example of
answer
Moral idealism
question
• 38. A personal moral philosophy that focuses on "the greatest good for the greatest number" by assessing the costs and benefits of the consequences of ethical behavior is referred to as
answer
Utilitarianism
question
• 39. Recently a project team for Cosco, the world's largest children's products company, developed a high chair that could be used as an infant feeding seat, a youth chair, a play chair, a booster chair, and it could be reclined to make an infant bed. Its design could be made and sold for $49. Cosco rushed the chair into production to beat its competition before it was properly safety tested and when some children were injured as a result of this chair, Cosco denied culpability by saying that only a few consumers had had any trouble with the chair. These consumers had not read the instructions that came with the chair and had assembled it improperly. Cosco's actions exemplify which of the following philosophies?
answer
Utilitarianism
question
• 40. Profitability is viewed as essential to the future success of corporations such as Starbucks. According to Starbucks' Mission Statement and Guiding principles, which of the following alternatives correctly identifies the placement of profitability?
answer
customers, partners, diversity, coffee, community and environment, and profitability
question
• 41. Social responsibility refers to
answer
the view that organizations are part of a larger society and are accountable to that society for their actions.
question
• 42. In 2006, Gap Inc. ended their relationship with 23 production facilities due to code violations. Several closings occurred because of the use of child labor. In response to these events the Gap created a large team whose purpose is to travel worldwide to ensure compliance with their Code of Vendor Conduct. This is an example of
answer
social responsibility.
question
• 43. The residents of Alaska and people throughout the world were outraged when the Exxon Valdez crashed into a shoal and dumped millions of gallons of crude oil into the pristine waters of Prince William Sound. People were upset with Exxon's response to the disaster. The company was slow to admit its mistake and even slower to implement cleanup activities. Exxon was criticized for acting in a manner which would benefit the organization but would not benefit society in general. In short, Exxon did not demonstrate
answer
Social Responsibility
question
• 44. The group primarily served by a firm exhibiting profit responsibility include
answer
owners and stockholders
question
• 45. Source Perrier S.A., the supplier of Perrier bottled water, exercised __________ when it recalled 160 million bottles of water after traces of a toxic chemical were found in 13 bottles. The recall cost the company $35 million and $40 million more was lost in sales. Even though the chemical was not harmful to humans, the president of the company believed it was his duty to remove "the least doubt, as minimal as it might be, to weigh on the image of the quality and purity of our product."
answer
Stakeholder Responsibility
question
• 46. Triple-Bottom line refers to
answer
The recognition of the need for organizations to improve the state of people, the planet and profit simultaneously.
question
• 47. Green marketing refers to
answer
The marketing efforts to produce, promote, and reclaim environmentally sensitive products.
question
• 48. Chrysler recycles thousands of tons of wooden pallets, cardboard, and paper annually. The Chrysler car itself is 75 percent recyclable. Chrysler's programs to recycle waste are examples of
answer
Green Marketing
question
• 49. When charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products, it is referred to as
answer
Cause marketing
question
• 50. Spiegel Inc. sold Christmas cards on page two of its holiday retail catalog. Spiegel designed and printed the cards. Proceeds from the sales of the Christmas cards purchased through the catalog went to benefit the Starlight Children's Foundation and the National Center for Missing and Exploited Children. In marketing, this is an example of
answer
Cause Marketing
question
• 51. American Express Company pioneered cause marketing when it sponsored the renovation of
answer
State of Liberty
question
• 52. Social audit refers to
answer
a systematic assessment of a firm's objectives, strategies, and performance in terms of social responsibility.
question
• 53. Sustainable development refers to
answer
Conducting business in a way that protects the natural environment while making economic progress.
question
• 54. Starbucks has built a company that balances __________ with a social conscience.
answer
Profitability
question
• 55. Starbucks' social responsibility report is focused on several topical areas such as their partners, coffee, customers, community and environment, profitability, and __________.
answer
Diversity
question
• 56. Consumers have an obligation to __________ in the exchange process and in the use and disposition of products.
answer
Act ethically and responsibility
question
• 57. Practices that include filing warranty claims after the claim period, misredeeming coupons, making fraudulent returns of merchandise, providing inaccurate information on credit applications, tampering with utility meters, tapping cable TV lines, duplicating copyrighted music and software, and submitting phony insurance claims are examples of
answer
Unethical practices of consumers
question
• 58. Although research shows consumers are sensitive to ecological issues, they may not be willing to purchase a given product or service solely on the basis of its environmental claims. They may be unwilling to sacrifice convenience and pay higher prices to protect the environment and
answer
They may be confused about which product are truly "environmentally safe" given that many marketers clain to produce "green products" even if they aren't
question
• 59. The practice of making an unsubstantiated or misleading claim about the environmental benefits of a product, service, technology, or company practice is referred to as __________.
answer
Greenwashing
