Drinking Guidebook Questions

1. The Family Talk about Drinking guidebook developed by Anheuser-Busch to help parents address the topic of underage drinking is an example of
A. consumerism.
B. preemptive marketing.
C. ethical behavior in marketing. D. the social marketing concept. E. cause marketing.

2. Anheuser-Busch acts on what it views as an ethical obligation to its customers and the general public with its
A. development of a low-carb beer.
B. annual sponsorship of the Super Bowl.
C. exclusive use of ingredients from American manufacturers and suppliers.
D. alcohol awareness and education programs.
E. commitment to maintaining the lowest prices possible without sacrificing taste.

3. Anheuser-Busch established its Corporate Social Responsibility (CSR) Department to
A. promote the positive aspects of moderate beer consumption.
B. promote responsible drinking and deter underage drinking and alcohol abuse.
C. encourage recycling of both aluminum cans and glass bottles by ultimate consumers and suppliers. D. educate employees about the importance of serving as role models by drinking responsibly
themselves.
E. promote Anheuser-Busch as more socially responsible than its competitors.

4. By preserving the natural environment, Anheuser-Busch is appealing to environmentalists through its alcohol abuse awareness initiatives; it is attempting to persuade underage children from thinking that drinking beer makes them cool. Anheuser-Busch is exhibiting which of the following?
A. stockholder responsibility
B. profit responsibility C. utilitarianism
D. cause marketing
E. social responsibility

5. Anheuser-Busch’s commitment preserving the natural environment caused Fortune magazine to rank it among the top companies for .
A. utilitarianism
B. social responsibility
C. moral idealism D. green marketing E. cause marketing

6. Anheuser-Busch is trying to meet the needs of a very diverse group: its customers who drink beer, environmentalists, ABRC, shareholders, and underage children who might think “drinking is cool.” The primary reason for its desire to satisfy these needs is consistent with the idea of social responsibility because
A. all of these people or groups are its stakeholders.
B. if Anheuser-Busch is not profitable, too many people will lose their jobs.
C. the larger Anheuser-Busch’s profits, the more taxes they will be able to pay.
D. contrary to popular belief, alcohol can be good for you if consumed in moderation.
E. the more highly thought of by potential consumers, the higher company’s sales would be.

7. Ethics refers to the
A. religious tenets of a country or ethnic region that shape its culture.
B. social norms of a nation, community, or family.
C. society’s values and standards that are enforceable in the courts.
D. moral principles and values that govern the actions and decisions of an individual or group. E. universal laws of man that go beyond individual or a group’s beliefs of nations or religions.

8. The moral principles and values that govern the actions and decisions of an individual or group are referred to as
A. social norms.
B. cultural values.
C. ethics.
D. societal philosophy. E. religion.

9. Laws refer to
A. a specific set of behaviors a given society considers ethical.
B. society’s values and standards that are enforceable in the courts.
C. the agreed upon codes of behavior for a given nation, community, religious group, or family. D. written documentation of a prescribed set of attitudes, beliefs, and values.
E. a code of ethics that defines what may be done in specific business circumstances.

10. Society’s values and standards that are enforceable in the courts are referred to as A. situational ethics.
B. cultural norms.
C. industry practices.
D. laws.
E. the Consumer Bill of Rights

11. Which of the following statements accurately distinguishes between laws and ethics?
A. Laws reflect the beliefs of the majority of society while ethics reflect the beliefs of the minority of
society.
B. Ethics deal with religious and moral beliefs while laws deal with social, economic, and environmental
behaviors.
C. Ethics deal with internal (personal) issues while laws deal with external (social) issues.
D. There is no significant difference between laws and ethics; these terms can be used interchangeably. E. Ethics deal with personal and moral principles whereas laws are society’s values that are enforceable in
the courts.

12. 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
A. ethical but illegal. B. ethical and legal.
C. unethical and illegal. D. unethical but legal. E. altruistic but naïve.

13. 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
A. ethically but illegally.
B. ethically and legally.
C. unethically and illegally.
D. unethically but legally.
E. in ways that cannot be determined by the information provided.

14. An 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 her friend’s computer. This activity is
A. both legal and ethical.
B. caveat emptor.
C. illegal but ethical.
D. illegal and unethical.
E. sanctioned by the Business Software Alliance since only one copy is to be transferred.

15. Enron’s Chief Financial Officer Andrew Fastow was indicted and then pleaded guilty on a charges of securities fraud in the Enron case and was accused of enriching himself and his family at the company’s expense. Fastow, in his tenure with Enron, acted
A. ethically but illegally.
B. ethically and legally.
C. unethically and illegally.
D. unethically but legally.
E. in a socially responsible manner.

16. Many media today use pay-to-vote polls, in which respondents use a 900-telephone number to vote “yes” or “no” on a current issue, as a means of generating viewer or listener interest. The Research Industry Coalition (RIC) has asked all media to inform viewers or listeners that the validity of such polls is questionable and the results are NOT statistically representative of the population but are just a frequency distribution of those who happen to call. If a television station chooses not to make viewers aware of
the shortcomings of a pay-to-vote poll, its business practice would fall into which of the following categories?
A. ethical but illegal.
B. ethical and legal.
C. unethical and illegal.
D. unethical but legal
E in today’s media age, this practice has become universal; any bias is implied and need not be directly
. stated under the caveat emptor doctrine.

17. A recent poll by Environics International, a public-opinion research firm, found that 67 percent of North Americans are willing to boycott products on ethical grounds. This survey did not ask if the person who was acting on ethical grounds would first see if the boycott was based on facts. Which of the following statements describes a conclusion that should be drawn from this information?
A. If you are an ethical person, you should act according to your instincts.
B. Realistically speaking, in order to stay in business, all businesses must occasionally behave
unethically.
C. All businesses will act unethically unless forced by consumers to act morally. D. There is nothing consumers can do to stop unethical business activities.
E. Boycotting a product without knowing the facts can be viewed as unethical.

18. Public opinion surveys show that 58 percent of U.S. adults rate the ethical standards of business executives as
A. outstanding.
B. above average.
C. similar to other professions.
D. typical of businesspeople around the world. E. fair or poor.

19. According to public opinion surveys, occupations in the United States.
A. insurance company professionals B. legal professionals
C. advertising practitioners
D. members of the U.S. Congress E. the news media
are considered to be among the LEAST ethical

20. All of the following are reasons for the state of perceived ethical business conduct EXCEPT:
A. a growing tendency for business decisions to be judged publicly by groups with different values and
interests.
B. the increased pressure on business people to make decisions in a society with diverse value systems. C. an increase in the public’s expectations of ethical business behavior.
D. ethical business conduct may have declined.
E. businesses are behaving more ethically during these difficult economic times.

21. Factors influencing personal moral philosophy and ethical behavior include , business culture and industry practices, and corporate culture and expectations.
A. religious beliefs and practices
B. societal culture and norms
C. national and regional legislation
D. universal core values
E. the universal concept of good vs. evil

22. Which of the following is considered one of the major factors that influences ethical behavior? A. organizational structures
B. societal culture and norms
C. national and local legislation
D. the U.S. Supreme Court
E. a nation’s moral philosophy

23. Which of the following is considered one of the major factors that influences ethical behavior? A. organizational structures
B. legislation
C. federal regulatory agencies
D. a nation’s moral philosophy
E. business culture and industry practices

24. Factors influencing personal moral philosophy and ethical behavior include societal culture and norms, business culture and industry practices, and .
A. religious beliefs and practices
B. corporate culture and expectations
C. national and regional legislation
D. universal core values
E. the universal concept of good vs. evil

25. Culture refers to
A. the set of values, ideas, and attitudes that are learned and shared among members of a group.
B. the music, art, theater, etc. that reflects the values of an entire nation.
C the learned behaviors of a specific racial, ethnic, or religious group based on commonly shared ethical . principles and protected by laws.
D.the combination of beliefs and behaviors accepted as correct regardless of a person’s age, sex, race, or
religion.
E.the set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members
of an organization.

26. In marketing, the set of values, ideas, and attitudes that are learned and shared among members of a group is referred to as .
A. ideals
B. morals
C. ethics D. culture E. diversity

27. Culture refers to the set of values, ideas, and attitudes that are learned and shared among members of a group. It also serves as a socializing force that
A. reflects the will of the largest or most powerful minority.
B. is determined by the largest generational group at a given point in time.
C. becomes the basis of all legislation—federal, state, and local—in societies around the world. D. expresses the diverse backgrounds of a nation’s subcultures.
E. dictates what is morally right and just.

28. Which of the following is a socializing force that dictates what is morally right and just? A. federal regulatory agencies like the FTC
B. federal, state, and local legislation
C. the U.S. Supreme Court
D. culture
E. organizational core values

29. 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 that moral standards
A. are relative to particular societies.
B. must be universal in order for cross-cultural marketing to be effective. C. are fluid and very easy to change.
D. are cyclical so it is important to change with the times.
E. are concrete; something is either right or wrong.

30. Copyrights, trademarks, and patents are A. public goods.
B. intellectual property.
C. rights granted to individuals or organizations by the WTO for a period of five years. D. limited to books, music, and software.
E. subject to ISO 14000 requirements.

31. The unauthorized use of intellectual property can severely affect the owners of that property. This practice also
A. levels the playing ground for developing nations by eliminating years of research time.
B. accelerates innovation in that industry, as new and improved offerings enter the marketplace. C. has a negative impact on the economy through the loss of jobs, royalties, wages, or tax revenue. D. has a positive impact on an entire nation’s cultural value system.
E. ensures that the prices to consumers are minimized as a result of increased competition.

32. Consider the copying of another’s copyright, trademark, or patent. These are viewed as intellectual property. In the U.S., unauthorized use, reproduction, or distribution of intellectual property is illegal. Yet in China, copying enjoys a long tradition and does not carry a stigma. For example, copying a masterpiece was historically considered an art form in its own right. The difference between the two
countries shows that
A. business culture
B. industry practices
C. corporate culture
D. corporate expectations
E. societal culture and norms
affect(s) the view of ethical behavior held in each country.

33. As the use of the Internet grows around the world, there must be as easy an exchange of ideas and information as possible between countries. One important issue is opt-in versus opt-out. In general, European websites have opt-in policies while U.S. websites have opt-out policies. Opt-in means customers must ask to be involved in data collection and marketing while opt-out companies automatically include customers in data collection unless the customer specifically asks not to be included. Europeans believe it is unethical to invade someone’s privacy. Americans are not nearly as protective of their right to privacy. What ethical factor is illustrated by this example?
A. industry practices
B. social legislation
C. societal culture and norms
D. changes it international law
E. organizational culture and expectations

34. Making counterfeit copies of Gucci purses, Tommy Hilfiger sportswear, and other international brands
is pervasive in China because laws protecting intellectual property are unclear and sporadically enforced. Even when sanctions are applied, sanctions are minimal, typically consisting of confiscation, a warning, a public apology, and perhaps a fine. Moreover, copying enjoys a long tradition in China and does not carry a stigma. A business introducing a product into China needs to know that its may lead to trademark infringements.
A. religious precepts
B. antecedent states
C. moral idealism
D. societal culture and norms E. utilitarianism

35. 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
A. societal norms.
B. societal mores.
C. business cultures. D. fair trade practices. E. corporate values.

36. Business culture affects ethical conduct both in the exchange relationship between sellers and buyers and in the
A. competitive behavior among sellers.
B. purchase behavior among buyers.
C. price, service, and product responsibility to the ultimate consumer.
D. accountability of buyers and sellers to federal and state regulators.
E. perception of ethical behavior as viewed by employers of business firms, not nonprofit organizations.

37. Ethical exchanges between sellers and buyers should result in
A. the seller making a profit at the expense of the buyer.
B. the buyer getting the product for the best price at the expense of the seller.
C. both parties to the exchange being better off after a transaction.
D. the seller offering buyers its products and services at cost, especially during a period of recession. E. the buyer forming a strategic alliance with the seller.

38. The Latin phrase caveat emptor is a legal concept that means A. “Cash on delivery.”
B. “Let the buyer beware.”
C. “Let’s make a deal.”
D. “Don’t take any wooden nickels.” E. “Such is life.”

39. The legal concept of “let the buyer beware,” which was pervasive in the American business culture prior to the 1960s, is referred to as .
A. ad nauseum
B. mea culpa
C. quid pro quo D. cest la vie
E. caveat emptor

40. Caveat emptor refers to
A.The legal concept of “let the buyer beware,” which was pervasive in the American business culture
prior to the 1960s.
B. The marketing concept of “be first or be last,” implying that the first company to the marketplace wins. C.The Latin term meaning that “all is fair in love and war,” an attitude that was held by most marketers
prior to the 1990s.
D.The legal concept of “such is life,” which created many illegal as well as legal but unethical business
practices during the 1980s.
EThe Latin phrase meaning “empty promises,” which was a charge placed upon many firms during the . period after WWII when products failed to meet their marketing claims.

41. Investors should understand that when purchasing stock, the principle of is in effect. It behooves investors to do research on the company, so they will make a wise purchase.
A. modus operandi
B. E Pluribus Unum
C. de facto marketing D. cest la vie
E. caveat emptor

42. The Securities and Exchange Commission (SEC) works hard to prevent unscrupulous companies from “cooking” their books to paint investors and regulators a better financial picture than they really have. Yet, in the end, it is up to investors to research the companies in which they want to invest because
is the norm when investing in the stock market. A. modus operandi
B. caveat emptor
C. de facto marketing D. cest la vie
E. anguis in herba

43. 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, is referred to as the
A. Lanham Act
B. Fair Practices Act
C. Caveat Emptor Decree
D. Consumer Bill of Rights E. Customer Consent Decree

44. The Consumer Bill of Rights refers to a law that
A.codified the ethics of exchange between manufacturers, distributors, and suppliers, including the right
to be paid.
Bcodified the ethics of exchange between manufacturers, distributors, and suppliers, including the rights . to safe working conditions, fair pay, and collaborative decision making.
C codified the ethics of exchange between buyers and sellers, including the rights to safety, to be
. informed, to choose, and to be heard.
Dguaranteed consumers the right to be compensated through replacement, repair, or reimbursement for
. products that fail to perform as promised by the manufacturer.
E. guaranteed consumers the rights that are enumerated in the First Amendment to the U.S. Constitution.

45. The Consumer Bill of Rights codified the ethics of exchange between buyers and sellers. It was outlined by in .
A. President John Kennedy; 1962.
B. President Ronald Reagan; 1983.
C. President William H. Clinton; 1996. D. President George W. Bush; 2003. E. President Barack Obama; 2009.

46. 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) ; (2) to be informed; (3) to choose; and (4) to be heard.
A. to privacy
B. to be compensated for product defects C. to be treated with respect
D. be treated without prejudice
E. to safety

47. 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 safety; (2) ; (3) to choose; and (4) to be heard.
A. to privacy
B. to be informed
C. to be treated with respect
D. to be treated without prejudice
E. to receive fair prices for both products and services

48. 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 safety; (2) to be informed; (3)
; and (4) to be heard.
A. to have legal representation in a court of law
B. to exchange or return products within a reasonable period of time C. to choose
D. to demand “rain checks” if advertised goods are out of stock
E. to be compensated for product defects

49. 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 safety; (2) to be informed; (3) to choose; and (4) .
A. to have legal representation in a court of law
B. to exchange or return products and services within a reasonable period of time C. to receive fair prices for both products and services
D. to be compensated for product defects
E. to be heard

50. Companies need to be vigilant in product quality testing not simply from an ethical perspective but from a financial one as well. Personal claims and property damage from consumer product safety incidents cost companies more than annually.
A. $100 million
B. $900 million C. $300 billion D. $500 billion E. $700 billion

51. The FTC is concerned about the amount of personal information that is collected through websites because the consumer is not made aware of how this information is being used. Over 92 percent of websites collect personal information, yet only about make their customers aware of how that information is being used.
A. one-quarter B. one-third
C. one-half
D. two-thirds
E. three-quarters

52. A current practice whereby retailers may demand cash or free goods in exchange for shelf space to stock new products is referred to as
A. slotting allowances.
B. kickbacks.
C. economic espionage. D. tying arrangements. E. industrial bribes.

53. The Children’s Online Privacy Protection Act (1998) is a law designed to protect consumers’ right to A. choose.
B. be informed.
C. be treated courteously. D. safety.
E. be heard.

54. The right to be heard means that
A. the U.S. Department of Commerce has the right to hear consumer complaints.
B. the American Marketing Association has the right to discipline marketers based on customer
complaints.
C. consumers should have access to public policy makers regarding complaints about products and
services.
D.companies should have access to public policy makers regarding complaints about fraudulent
consumer practices.
E. consumers should have access to public policy makers regarding new product ideas.

55. Mattel’s Cabbage Patch Snacktime Kids doll was designed to eat plastic toys that were drawn into the doll’s motorized mouth. However, despite extensive testing, the doll was found to “eat” the child’s hair and was subsequently recalled and discontinued. Mattel discontinued the item because of consumers’ right to
A. choose.
B. be informed.
C. be treated courteously. D. safety.
E. happiness.

56. 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 when reclined, an infant bed. Its design could be made and sold for $49. The marketing manager, in consultation with other middle managers, decided to have the prototypes checked out by Cosco employees who had small children. This was the only product testing performed on the product. Before Cosco pulled the unsafe chair from the market, several children were injured and some died as a result of using the chair. Cosco was charged with being unconcerned about consumers’ right to
A. choose.
B. be informed.
C. be treated courteously.
D. safety.
E. happiness.

57. Dell 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’ right to
A. choose.
B. be informed. C. safety.
D. be heard.
E. happiness.

58. Recently, certain toys that were manufactured in China were found to have unsafe levels of lead in the paint and were recalled. This action protected consumers’ right to
A. safety.
B. be informed.
C. be heard.
D. choose.
E. be treated courteously.

59. 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 them. This is related most directly to consumers’ right to
A. be heard.
B. be treated courteously. C. safety.
D. happiness.
E. be informed.

60. When Toysmart.com filed for bankruptcy in June 2000, it listed its customer database as one of its assets even though it had assured its customers it would never disclose their information to any third party. People who had purchased products from Toysmart and were a part of its database were upset when
they learned their private information was being treated as property that was for sale. These customers believed that according to the Consumer Bill of Rights, they should know how their private information would be used. In other words, Toysmart’s former customers had a right to
A. choose.
B. be informed. C. be heard.
D. safety.
E. happiness.

61. The FTC established the Do Not Call Registry in 2003 for consumers who do not want to receive unsolicited telemarketing calls. Today, a telemarketer can be fined up to for each call made to a telephone number posted on the registry.
A. $500
B. $750
C. $1,250
D. $8,750
E. $16,000

62. Business culture affects ethical behavior in competition. Two kinds of unethical behavior are most common:
A. economic espionage and bribery.
B. price fixing and copyright infringement.
C. bribery and extortion.
D. price fixing and economic espionage.
E. economic espionage and antitrust infractions.

63. Economic espionage refers to
A.the destruction of a competitor’s products or services through physical damage of property or damage
to their reputation.
B.persuading someone to act in one’s favor, typically illegally or dishonestly, by a gift of money or other
inducement.
C. an illicit payment made to someone who has facilitated a transaction or appointment.
D. the clandestine collection of trade secrets from foreign countries.
E. the clandestine collection of trade secrets or proprietary information about a company’s competitors.

64. The clandestine collection of trade secrets or proprietary information about a company’s competitors is referred to as .
A. economic espionage
B. industrial espionage
C. marketplace espionage D. industrial surveillance E. patent infringement

65. All of the following are examples of economic espionage EXCEPT: A. wiretapping.
B. misrepresentation.
C. bribery.
D. “dumpster diving” or searching a competitor’s trash. E. employment contract violations.

66. Economic espionage includes such activities as .
A. two firms hiring the same musician to write their company jingle
B.hiring people who ever worked in an executive capacity at a competitor’s firm, especially if they didn’t
have a noncompete clause
C. offering to accept all competitors’ coupons, making their effectiveness as a promotional tool negligible D. searching through a competitor’s trash
E. marrying someone who works for a competitor in an executive position

67. Economic espionage is most likely to occur in which type of industries? A. fashion design and textiles
B. entertainment
C. high-tech electronics and aerospace
D. intellectual property (print)
E. beverage industry (alcoholic and nonalcoholic)

68. Michael Smolensky is CEO of Lifeway Foods, Inc., based in Skokie, IL. The company sells kefir, a cultured milk product popular in Smolensky’s native Russia. Recently, Smolensky, who had developed his own secret recipe, got a call from his supplier, saying, “Michael, someone is trying to steal your secrets.” Smolensky discovered later that a prospective rival had called to ask the supplier for certain ingredients by their secret codes, known only to Smolensky and the supplier. The rival had picked them out of Lifeway’s refuse. This is an example of
A. corporate shadowing.
B. economic espionage.
C. clandestine trade secrets. D. industrial sleuthing.
E. competitive surveillance.

69. Jay Bloom’s Pet Assure, a national pet health-care provider network based in Dover, N.J., recently took advantage of a rival’s naïveté. When a West Coast provider of catastrophic pet coverage “preannounced” the addition of a wellness component (Pet Assure’s specialty) in an interview with a tiny community newsweekly six months prior to launching it, Bloom was notified immediately through a web-based news monitoring service. This not only gave him time to add catastrophic benefits to one of his own wellness products, but also enabled him to get his offering to the market first. Jay Bloom relied on to keep him abreast of his competitors’ activities.
A. legal environmental scanning B. economic espionage
C. the use of kickbacks
D. corporate piracy
E. primary market research

75. Bribery is most likely to occur when
A. industries experience little competition.
B. the country has reached a high level of economic development. C. industries are high-tech in nature.
D. industries operate in an oligarchic competitive environment. E. industries experience intense competition.

76. Transparency International is an organization that
A. monitors how developed nations deal with developing nations.
B. establishes procedures for ethical international business based on the ISO 7000 Code of Conduct. C. monitors and ranks nations worldwide according to their perceived use of bribery.
D. creates an acceptable international code of ethics.
E. makes sure federal, state, and local governments in the United States abide by the Consumer Bill of
Rights.

77. Two laws specifically intended to curb economic espionage and bribery in international marketing are
A. Economic Espionage Act and Foreign Corrupt Practices Act.
B. Transparency International Act and Dumpster Diving Act.
C. Global Rights Protection Act and Foreign Corrupt Practices Act. D. Consumer Bill of Rights Act and Economic Espionage Act.
E. Fair Trade Practices Act and Bribery Protection Act.

78. Corporate culture refers to
A. a formalized method for controlling the marketing environment.
B. the set of accepted standards and practices within a given industry.
C. the fundamental, passionate, and enduring principles of an organization that guide its conduct over
time.
D. a set of values, ideas, and attitudes that is learned and shared among the members of an organization. E. the formal statement of ethical principles and rules of conduct adopted by an organization.

79. The set of values, ideas, and attitudes that is learned and shared among the members of an organization is referred to as .
A. a mission statement
B. core values
C. the socialization process
D. a code of ethics and conduct E. corporate culture

80. 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
A. contracts and agreements between members of the same industry.
B. state and local laws regarding ethical business behavior.
C. the dress codes, manner of work, and sayings of its employees.
D. the socially responsible behaviors of its customers.
E. the involvement of shareholders with an organization’s day-to-day marketing decisions.

81. Lava.com is an Internet company that helps other organizations implement marketing strategies that they hope will let them dominate their industry. Lava’s advertising, states, “We ignore the rules, and we let
no obstacle stand in your company’s way—no matter how bold or impossible your idea may seem.” The company is composed of eighteen bright young Internet experts. They work in one large room, which also contains dartboards, a pool table, and a meditation center. If you were to walk into the office, it would be next to impossible to tell the company owners from its lowest ranking employee. This best describes the Internet company’s
A. modus operandi.
B. mission or vision.
C. socialization process. D. business definition. E. corporate culture.

82. A code of ethics is a formal statement of ethical principles and A. legal restrictions.
B. rules of conduct.
C. cultural values
D. core values. E. moral laws.

83. A code of ethics is a formal statement of rules of conduct and A. legal restrictions.
B. moral laws.
C. ethical principles.
D. core values.
E. cultural values.

84. A formal statement of ethical principles and rules of conduct is referred to as a(n) A. ethical mission.
B. moral code.
C. core value pronouncement.
D. code of conduct. E. code of ethics.

85. A code of ethics refers to
A. a formal statement of moral and ethical business attitudes.
B. a formal statement of ethical principles and rules of conduct.
C. an informal guide of ethical principles and moral conduct.
D. the written document stating the beliefs and values of each employee in a firm.
E. a firm’s itemized list of business activities that are and are not consistent with the company’s mission
statement.

86. All of the following are addressed by an organization’s code of ethics EXCEPT: A. the dress, sayings, and work manner of employees.
B. contributions to political parties and government officials.
C. customer and supplier relationships.
D. accurate recordkeeping. E. conflicts of interest.

87. Which of the following statements describes one of the major reasons codes of ethics are violated? A. Most companies do not have a formal code of ethics.
B. Most companies overlook infractions if the action is unethical but legal.
C. Many codes of ethics lack specificity.
D There is often a discrepancy between the written code of ethics of a firm and the personal and moral
. beliefs of individual employees.
E. There are very few violations in firms with written codes of ethics.

88. Which of the following is a major reason for the violation of ethics codes? A. government regulation
B. family influence
C. lack of religious beliefs
D. fear of disciplinary action E. lack of specificity

89. HomeWorRx Referral Network profiles home service companies for homeowners looking for a contractor or handyman. To ensure that companies they recommend are reliable, HomeWorRx checks the business licenses, insurance coverages, Better Business Bureau records, and three trade references. The recommended home service company also has to agree to a(n) , which includes maintaining professionalism and guaranteeing the quality of its work.
A. statement of cultural values
B. statement of values and beliefs
C. industry endorsement
D. code of ethics
E. contract due diligence

90. In 2001, six executives of Tyson Foods, one of the world’s largest poultry, beef, and pork processors, were arrested for the illegal smuggling of undocumented foreign workers into the U.S. to work at Tyson plants. Based on this information, one could conclude that Tyson’s violations are the result of
, one of the major reasons why some company employees engage in ethical behavior. A. a mission statement that is too broad
B. the absence of a written core values statement C. the absence of whistle-blowers
D. top management’s behavior
E. the absence of a stakeholder code of ethics

91. The American Marketing Association Statement of Ethics is centered on three general norms: marketers must: (1) do no harm; (2) foster trust in the marketing system; and (3) .
A. initiate fair and honest dialogues in developing markets
Bembrace, communicate, and practice the fundamental ethical values that will improve consumer
. confidence in the integrity of the marketing exchange system
C. champion new legislation that protects ethical business firms and punish those who abuse consumer
trust
D.support governmental agencies in their quest to identify and prosecute those who break the laws of
ethical marketing
E. contribute to society’s well-being through charitable contributions and cause-related marketing efforts

92. The American Marketing Association Statement of Ethics identifies six key aspirational ethical values. These include: , responsibility, fairness, respect, openness, and citizenship.
A. diversity
B. integrity
C. honesty
D. perseverance E. charity

93. A health club wishes to follow the American Marketing Association Statement of Ethics and decides to offer a modified workout class at a very low price for senior citizens who otherwise might not be able to afford their services. This action exhibits which key AMA ethical value?
A. honesty
B. fairness
C. respect
D. openness
E. responsibility

94. Even though his business is very small, the owner of a LAN center wants to follow the American Marketing Association Statement of Ethics. Every month there is a “company cookout.” At the end
of the meal, the employee (from president to members of the cleaning staff) who had the best idea for improving the center is honored and given a $25.00 gift certificate plus a T-shirt that reads, “Great Minds Think Like Me.” This action exhibits which key AMA ethical value?
A. honesty
B. responsibility
C. fairness
D. respect
E. openness

95. A recent study of business executives reported that had been implicitly or explicitly rewarded for engaging in ethically troubling behavior.
A. 7%
B. 12%
C. 25% D. 40% E. 62%

96. Employees who report unethical or illegal actions of their employers are referred to as A. whistle-blowers.
B. scabs.
C. cronies.
D. corporate snitches. E. ombudsman.

97. Whistle-blowers refer to
A. employees who are simultaneously employed by competing firms and who trade company secrets. B. employees who blackmail or extort money from their employers.
C. employees who are coerced by their employers to participate in illegal or unethical activities.
D. customers who report unethical or illegal actions of the firms that market the offerings they bought. E. employees who report unethical or illegal actions of their employers.

98. An employee who reports illegal accounting procedures is an example of a(n) A. crony.
B. scab.
C. whistle-blower. D. corporate snitch. E. ombudsman.

99. Which of the following statements best describes a whistle-blower?
A. An employee is unhappy because his company is downsizing.
B. An employee tells the Consumer Product Safety Commission his company falsified safety reports on a
child’s car seat.
C.A salesperson for a hardware wholesaler tries to sell insurance to his regular customers in order to earn
some extra income.
D. An employee loses his/her retirement fund due to a downturn in the stock market.
E.An employee spends the afternoon studying at work for her test rather than counting inventory as she
was supposed to be doing.

100.Which of the following statements best describes the activities of a whistle-blower?
A.Mattel employees were sorry that 150 of the 10 million Power Wheels cars and trucks the company
sold had caught on fire.
BMattel research engineers proved that the spate of fires in the company’s Power Wheels cars and trucks . was the result of consumers’ tinkering with the engine.
C.A former Mattel employee owned one of the Mattel Power Wheel cars that caught on fire and slightly
burned its rider.
D The Consumer Product Safety Commission investigated the fires and ordered a recall to repair all of the . 10 million units that had been sold.
EA Mattel employee reported to the Consumer Product Safety Commission that Mattel knowingly
. manufactured an electrical system for Power Wheels that would catch on fire after long use.

101.Two former sales representatives of Amgen, a biotech company, alleged the company strongly encouraged its sales force to search confidential medical records in physician’s offices in an attempt to find names of patients that would benefit from the use of Amgen’s drug Enbrel, a treatment for psoriasis. After reporting this practice, these two people sued Amgen, claiming they did not go along with the scheme because they objected to it as being unethical. Soon after, one of the reps was fired and the other resigned after receiving a poor performance review. These two people are
A. scabs.
B. cronies.
C. whistle-blowers.
D. contrarians.
E. ombudsmen.

102.Ultimately, ethical choices are based on
A. the personal moral philosophy of the decision maker.
B. societal culture and norms.
C. business culture and industry practices.
D. laws enacted by Congress and regulations by federal and state governments. E. chance and opportunity.

103.All of the following statements about a person’s moral philosophy are true EXCEPT: A. Moral philosophy cannot be learned through formal education.
B. Moral philosophy is learned through the process of socialization with family.
C. Moral philosophy is influenced by the corporate culture he/she is in.
D. Moral philosophy is learned through the process of socialization with friends. E. Moral philosophy is influenced by the societal culture he/she is in.

104.Two prominent personal moral philosophies that have direct bearing on marketing practice are A. existentialism and pragmatism.
B. pragmatism and idealism.
C. moral idealism and utilitarianism.
D. social responsibility and personal ethics. E. moral behaviorism and secular ethics.

105.A sonal moral philosophy that considers individual rights or duties as universal, regardless of the outcome, is referred to as .
A. social responsibility
B. moral idealism
C. utilitarianism D. hedonism
E. religion

106.Moral idealism refers to a personal moral philosophy that
A. believes that goodwill always triumph over evil.
B. follows the “Golden Rule,” which is “One should treat others as one would like others to treat oneself.” C. all human beings are basically good.
D. considers individual rights or duties as universal, regardless of the outcome.
E. believes in “the greatest good for the greatest number.”

107.Moral idealism refers to
Aa 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.
Ba democratic consensus of moral principles and laws that govern the behavior of individuals based on . legislation adopted at the federal, state, and local levels.
C a societal moral philosophy based on the Golden Rule of the Judeo-Christian ethic embodied in the
. U.S. Constitution’s Bill of Rights.
D. a formal statement of ethical principles and rules of conduct.
E. a personal moral philosophy that considers individual rights or duties as universal, regardless of the
outcome.

108.A al philosophy that exists in the Consumer Bill of Rights and is favored by moral philosophers and consumer interest groups is referred to as .
A. social responsibility
B. moral idealism
C. utilitarianism D. hedonism
E. the Golden Rule

109.Why did 3M stop production of Scotchgard fabric protector?
A. New advances in fabric manufacturing, such as dirt repellant fibers, made the need for the product
obsolete.
B. The product accidentally violated patent rights of a competitor.
C. Traces of the potentially harmful chemical were found in humans, so the product was voluntarily
halted.
D. New governmental legislation banned the production of one of the product’s component chemicals.
E 3M developed a new product that didn’t contain this chemical and which cost less to produce, resulting . in a significantly higher profit margin.

110.The 3M company stopped production of a chemical it had made for over 40 years when tests showed the chemical could be harmful in large doses, even though the products in which it was used had no known harmful health or environmental effect. This is an example of
A. individualism.
B. utilitarianism. C. existentialism. D. moral idealism. E. socialism.

112.Western Digital, the Irvine, California-based maker of disk drives, recalled about 400,000 of its hard drives because of a faulty internal chip. The chip will not affect the disk drive motor until after six to twelve months of use. This delay in the problem’s appearance means that many consumers would not think to blame the disk drive manufacturer. But, instead of taking the less expensive route of remaining quiet about the problem, Western Digital chose to offer replacement disk drives for all the disk drives that had the faulty chip. This action is an example of .
A. hedonism
B. utilitarianism C. moral idealism D. existentialism E. socialism

113.The owners of Ben & Jerry’s Homemade, Inc. adhere to the belief that the company should not harm the environment in any way but actually improve it. This is an example of .
A. altruism.
B. utilitarianism.
C. existentialism. D. moral idealism. E. socialism.

114.A sonal 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 .
A. utilitarianism
B. hedonism
C. existentialism D. moral idealism E. socialism

115.According to the personal moral philosophy of , if the benefits exceed the costs, the behavior is ethical.
A. hedonism
B. utilitarianism C. existentialism D. moral idealism E. socialism

116.The personal moral philosophy of utilitarianism underlies the economic tenets of A. existentialism.
B. moral idealism.
C. communism.
D. socialism. E. capitalism.

117.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 when reclined, 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. When some children were injured as a result of this chair, Cosco denied culpability. The firm said that only a few consumers had had any trouble
with the chair—and probably didn’t assemble them correctly. Most consumers, however, were very satisfied with the chair and had no problems with it. Cosco’s actions exemplify which of the following philosophies?
A. existentialism
B. moral idealism C. communism D. socialism
E. utilitarianism

118.The idea that organizations are part of a larger society and are accountable to that society for their actions is referred to as
A. stakeholder responsibility. B. social responsibility.
C. profit responsibility.
D. utilitarianism.
E. moral idealism.

119.Social responsibility refers to
Aa 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.
Ba democratic consensus of moral principles and laws that govern the behavior of individuals based on . legislation adopted at the federal, state, and local levels.
C.a societal moral philosophy based on the Golden Rule of the Judeo-Christian ethic found in the U.S.
Constitution’s Bill of Rights.
D. the view that organizations are part of a larger society and are accountable to that society for their
actions.
E. a personal moral philosophy that considers individual rights or duties as universal, regardless of the
outcome.

120.Profit responsibility, societal responsibility, and stakeholder responsibility are three concepts of A. cause marketing.
B. moral idealism.
C. social responsibility.
D. utilitarianism. E. green marketing.

121.Which of the following statements about social responsibility is most accurate?
A The three concepts of social responsibility are economic responsibility, internal social responsibility, . and external social responsibility.
B. Organizations are part of a larger society and are accountable to that society for their actions. C.Societal responsibility focuses on the obligations an organization has to its customers, employees,
suppliers, and distributors.
D. The duty of an organization is most easily understood at the societal responsibility level.
E. Social responsibility cannot be taught; it is an innate outgrowth of a person’s moral and ethical belief
system.

122.In 2007, Gap Inc. ended its relationship with 23 foreign 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 its Code of Vendor Conduct. This is an example of
A. cause marketing.
B. profit responsibility.
C. utilitarianism.
D. moral idealism.
E. social responsibility.

123.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 that would benefit the organization but not society. In short, Exxon did not demonstrate
A. social responsibility. B. value consciousness. C. green marketing.
D. profit responsibility. E. cause marketing.

127.Profit responsibility refers to
A the obligation of a firm to price its products or services at a level whereby the consumer is treated fairly . and the firm is still able to make a profit.
B. the view that an organization has an obligation to those who can affect the achievement of its
objectives.
C.the concept that no expansion or additional research and development will occur until a company is
making a profit.
D. the idea that organizations are part of a larger society and are accountable to that society for their
actions.
E. the duty of a firm to maximize profits for its owners or stockholders.

128.The duty of a firm to maximize profits for its owners or stockholders is referred to as . A. social responsibility
B. value consciousness
C. benefit marketing
D. profit responsibility
E. stakeholder responsibility

129.The groups primarily served by a firm exhibiting profit responsibility include A. the general public, public interest groups, and the environment.
B. consumers, employees, and supplier/distributors.
C. owners and stockholders.
D. the general public, owners, and stockholders. E. government, owners, and stockholders.

130.Burroughs Wellcome is the developer and maker of AZT, which is a drug to treat persons afflicted with AIDS. The firm charges each patient $6,500 annually—more than many AIDS patients can afford. This is an example of the manufacturer adhering to its
A. utopian responsibility.
B. moral idealism.
C. social responsibility.
D. cause marketing strategy. E. profit responsibility.

131.Stakeholder responsibility refers to
A. the view that an organization has an obligation to those who can affect the achievement of its
objectives.
B the obligation of a firm to price its products or services at a level whereby the consumer is treated fairly . and the firm is still able to make a profit.
C. the duty of a firm to maximize profits for its owners or stockholders.
D.the concept that no expansion or additional research and development will occur until a company is
making a profit.
E. the idea that organizations are part of a larger society and are accountable to that society for their
actions.

132.The view that an organization has an obligation to those who can affect the achievement of its objectives is referred to as .
A. social responsibility
B. value consciousness
C. benefit marketing
D. stakeholder responsibility E. profit responsibility

133.The groups primarily served by a firm exhibiting stakeholder responsibility include A. the general public, public interest groups, and the environment.
B. consumers, employees, and supplier/distributors.
C. owners and stockholders.
D. the general public, owners, and stockholders. E. government, owners, and stockholders.

134.Source Perrier S.A., the supplier of Perrier bottled water, exercised when it recalled
160 million bottles of water in 120 countries after traces of a toxic chemical was found in 13 bottles.
The recall cost the company $35 million, and the profit from $40 million in lost 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.”
A. moral idealism
B. utilitarianism
C. cause marketing
D. profit responsibility
E. stakeholder responsibility

135.Toyota Motor Corporation executives were widely criticized for their failure in practicing
when selected Toyota brands had been linked to sticky gas pedals, which can lead to sudden acceleration problems. The company recalled over 9 million cars worldwide under pressure from the National Highway Traffic Safety Administration and thousands of consumer complaints. After the recall, Toyota sales fell, which affected Toyota employees, suppliers, shareholders, and distributors.
A. moral idealism
B. stakeholder responsibility
C. utilitarianism
D. cause marketing
E. profit responsibility

136.Societal responsibility refers to
A.the obligation that organizations have to (1) the preservation of ecological environment and (2) the
general public.
B the obligation of a firm to price its products or services at a level whereby the consumer is treated fairly . and the firm is still able to make a profit.
C. the view that an organization has an obligation to those who can affect the achievement of its
objectives.
D. the duty of a firm to maximize profits for its owners or stockholders.
E. the idea that organizations are part of a larger society and are accountable to that society for their
actions.

137.The obligation organizations have to (1) the preservation of ecological environment and (2) the general public is referred to as .
A. social responsibility
B. stakeholder responsibility
C. benefit marketing
D. societal responsibility E. profit responsibility

138.Most paint is neither biodegradable nor friendly to the environment because it is made with petroleum solvents. A builder who decided to build a subdivision with 500 homes and paint each with an environmentally friendly, soy-based paint (even though it costs more) would be practicing
A. profit responsibility.
B. cause marketing.
C. stakeholder responsibility. D. mass marketing.
E. societal responsibility.

139.The maker of Wrigley chewing gum funded a $10 million ad campaign aimed at getting African Americans to use doctors for regular health care maintenance instead of only when they are sick. This is an example of
A. profit responsibility.
B. cause marketing.
C. stakeholder responsibility.
D. societal responsibility.
E. mass marketing.

140.The recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth is referred to as
A. social responsibility.
B. the triple-bottom line.
C. the marketing concept. D. sustainability.
E. social entrepreneurship.

141.Triple-bottom line refers to
Athe recognition of the need for organizations to improve the state of people, the planet, and profit
. simultaneously if they are to achieve sustainable, long-term growth.
B the obligations an organization has to those who can affect achievement of its sales, profit, and market . share objectives simultaneously.
C.the recognition of the need for organizations to be responsible simultaneously to shareholders,
employees, and customers.
D. the obligations an organization has to practice profit, stakeholder, and societal responsibility
simultaneously.
E three different financial statements prepared in three different formats: one for governmental regulators, . one for shareholders, and one for internal use.

142.All of the following are the result of an interest in the triple-bottom line EXCEPT: A. sustainable development.
B. cause marketing.
C. ISO 9000.
D. green marketing. E. social audits.

143.Marketing efforts to produce, promote, and reclaim environmentally sensitive products are referred to as
A. green marketing.
B. recycle marketing.
C. cause marketing.
D. environmental marketing. E. recycling.

144.Green marketing refers to
A. the purchasing of products from producers whose farming practices are Fair Trade certified.
B.the marketing efforts taken by new and smaller companies that lack both the experience and resources
of their major competitors.
C. the marketing efforts to produce, promote, and reclaim environmentally sensitive products. D. the marketing of products that have in no way been altered or reprocessed by artificial means. E. the marketing of those products made exclusively from recycled materials.

145.At 3M, the “Pollution Prevention Pays” program has generated over 8,000 ideas that eliminated more than 3 billion pounds of air, water, and solid-waste pollutants from the environment. This is an example of
A. proactive marketing.
B. green marketing.
C. consumerism.
D. an ecological code of ethics. E. cause marketing.

146.Which of the following is an example of green marketing?
A. McDonald’s adding apple snacks to its Happy Meals targeted at children.
B. Lowe’s and Home Depot discontinuing the sale of lumber and other wood products.
C. Levi-Strauss marketing prewashed jeans.
D. Joe’s Lawn Service offering a special spring cleanup promotion.
E Walmart implementing buying practices that encourage it suppliers to use containers and packing made . from corn, not oil-based resins.

147.Chrysler recycles thousands of tons of wooden pallets, cardboard, and paper annually. Chrysler cars are 75 percent recyclable. Chrysler’s recycling programs are examples of
A. recycle marketing.
B. cause marketing.
C. green marketing.
D. environmental marketing. E. triple-top line marketing.

148.Many fast food restaurants, including Burger King, McDonald’s, and Wendy’s, no longer use STYROFOAMTM containers (which do not degrade as quickly as paper in a landfill) for packaging their products. Rather, these firms wrap their burgers in recycled paper wrappers, containers, and bags. These fast-food restaurants are practicing
A. triple-top line marketing.
B. green marketing.
C. consumerism.
D. an ecological code of ethics.
E. cause marketing.

149.FedEx and UPS are converting their delivery trucks with standard diesel engines to more fuel-efficient and cleaner hybrid-electric vehicles, which can cut fuel costs by half and lower fuel emissions by 90 percent. This is an example of
A. demarketing.
B. triple-top line marketing. C. preemptive compliance. D. green marketing.
E. cause marketing.

150.ISO stands for
A. International Service Organizations. B. Integrated Standards Organization. C. International Standards Organization. D. International Sustainable Offerings. E. Integrated Solutions Organization.

151.ISO 14000 refers to
A. a plan to encourage the purchase of “Made in America” products.
B. a global plan to further green marketing.
C an initiative for organizations to support the International Special Olympics Committee and its athletes . without endangering its nonprofit status.
D. the name of the agreement that created the North American Free Trade Association (NAFTA).
Ea set of standards for registration and certification of a manufacturer’s quality management and
. assurance system based on an on-site audit of practices and procedures developed by the International
Standards Organization (ISO).

152.A bal undertaking to further green marketing efforts is the A. ISO 14000 initiative.
B. Kyoto Protocol.
C. Green World (GW) initiative.
D. ISO 9000 initiative.
E. ISO Trans-Global initiative.

153.When the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products, this marketing practice is referred to as
A. marketing philanthropy.
B. marketing allegiance.
C. relationship marketing. D. transactional marketing. E. cause marketing.

154.Cause marketing refers to
A when the charitable contributions of a firm are tied directly to the customer revenues produced through . the promotion of one of its products.
Bthe recognition of the need for organizations to improve the state of people, the planet, and profit
. simultaneously if they are to achieve sustainable, long-term growth.
C. marketing services provided at little or no cost for the purpose of promoting or supporting a worthy
cause.
D. marketing efforts to produce, promote, and reclaim environmentally sensitive products. E. when marketing actions that took place actually caused more harm than good.

155.A key difference between cause marketing and a charitable contribution is
A. a charitable contribution provides an organization with a lower tax deduction.
Bthere is no limit to the amount of charitable deductions a firm can make, but a firm is limited to the
. number of cause marketing efforts it can make during a fiscal year.
C charitable donations are contributed at the sole discretion of the firm; cause marketing is the amount is . directly affected by consumers’ purchases.
D cause marketing is generally linked to public causes and concerns while straight charitable
. contributions are generally given to private institutions.
E. there is essentially no difference between a charitable contribution and cause marketing.

156.Cause marketing programs incorporate all three concepts of social responsibility by addressing public concerns, satisfying customer needs, and
A. protecting the environment.
B. enhancing corporate sales and profits.
C. following industry-specific codes of ethics. D. fulfilling societal objectives.
E. demonstrating ethical behavior.

157.Procter & Gamble raises funds for the Special Olympics when consumers purchase selected company products. This is an example of
A. cause marketing.
B. philanthropic marketing.
C. green marketing.
D. public relations.
E. societal promotions.

159.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. This is an example of
A. philanthropic marketing. B. corporate altruism.
C. cause marketing.
D. the marketing concept. E. societal marketing.
=160.A ota dealership in British Columbia, Canada, donated $50 to the Make-A-Wish Foundation of Canada for each Toyota purchased during a particular month. This is an example of how a small business can engage in
A. philanthropic marketing.
B. cause marketing.
C. marketing altruism.
D. public relations marketing. E. societal marketing.

B

161.Post supports the Boys & Girls Clubs. For every coupon found on a box of any of the Post brands redeemed, Post promises to donate $0.10 to the organization. This is an example of
A. cause marketing.
B. philanthropic marketing.
C. goodwill marketing.
D. public relations marketing. E. societal marketing.

A

162.Cadbury Canada recognized that education is crucial to lifting Ghanaian children out of poverty. Cadbury worked with its lead partner, World Vision Ghana, to identify every child in cocoa-farming villages who had to walk at least three kilometers or more each way to school. In the spring of 2009, Cadbury Canada launched a program that encouraged consumers to enter the bar codes of their candy and chocolate bars online. Each entry represented one bicycle part and 100 parts “built” one bike. The biggest-ever shipment of bicycles to Ghana—5,000 in total—is helping thousands of kids get to school and get a head start on a brighter future. The is an example of
A. philanthropic marketing. B. cause marketing.
C. societal marketing.
D. public relations marketing. E. transactional marketing.

B

163.American Express Company pioneered cause marketing when it sponsored the renovation of A. Carnegie Hall.
B. Madison Square Garden.
C. Liberty Hall.
D. the Statue of Liberty. E. the Lincoln Memorial.

D

164.When American Express pioneered cause marketing, it raised $1.7 million to renovate a national icon, increased usage among cardholders, and
A. became the only credit card accepted for admission to the sight.
B. decreased outstanding debt on previously unpaid credit cards.
C. was able to raise interest rates without facing customer complaints. D. received a tax credit that more than paid for the original campaign. E. attracted new cardholders.

E

165.Which of the following statements concerning cause marketing is MOST accurate?
A The vast majority of consumers say they will switch to a brand that supports a good cause provided the . price and quality of the brands are equal.
B. The profits generated by cause marketing are usually paid in “goodwill” rather than actual revenue. CThe positive effects of cause marketing are significant during the promotion, but they lose their benefit . almost immediately after the promotion runs its course.
D. Cause marketing rarely creates a point of difference for the firm that engages in this marketing
practice.
E Women are much more suspicious about the sincerity of cause marketing programs than men; . therefore, their contributions are significantly less.

A

166.A tematic assessment of a firm’s objectives, strategies, and performance in terms of social responsibility is referred to as
A. a business mission.
B. the strategic marketing process.
C. a SWOT analysis.
D. a social audit.
E. an accountability analysis.

167.A social audit refers to
A. a systematic assessment of a firm’s compliance to fair hiring practices and commitment to diversity. B.a company-wide assessment of employees at all levels to determine the compliance to the
organization’s code of ethics.
C. conducting business in a way that protects the natural environment while making economic progress. D. a systematic assessment of a firm’s objectives, strategies, and performance in terms of social
responsibility.
E. the ability to understand one’s own emotions and the emotions of people with whom one interacts on a
daily basis.

168.Converting socially responsible ideas into actions involves careful planning and monitoring of programs. Many companies develop, implement, and evaluate their social responsibility efforts by means of a(n) A. social audit.
B. financial audit.
C. action plan. D. tactical plan. E. research plan.

169.The first step in any social audit is to
A. evaluate current social responsibility programs.
B. determine the amount of money that can be allocated for societal marketing programs.
C. recognize a firm’s social expectations and the rationale for engaging in social responsibility endeavors. D. identify social responsibility causes consistent with the company’s mission.
E. determine the types of resources needed to achieve social responsibility objectives.

170.A ial audit is a systematic assessment of a firm’s objectives, strategies, and performance in terms of social responsibility. The five steps of the audit are: (1) recognition of a firm’s social expectations and the rationale for engaging in social responsibility endeavors; (2) identification of social responsibility causes or programs consistent with the company’s mission; (3) determination of organizational objectives and priorities for programs and activities it will undertake; (4) specification of the type and amount of resources necessary to achieve social responsibility objectives; and (5)
A. identification of environmental forces that could interfere with the firm’s plans.
B. evaluation of possible benefits both tangible and intangible to the firm’s triple-bottom line.
C. evaluation of social responsibility programs and activities undertaken and assessment of future
involvement.
D. selection of a team leader and assignment of tasks and task deadlines for team members. E. creation or selection of a theme, slogan, spokesperson, etc. for marketing cohesiveness.

171.Conducting business in a way that protects the natural environment while making economic progress is referred to as
A. sustainable development. B. green marketing.
C. stakeholder responsibility. D. the marketing concept.
E. environmental marketing.

172.Sustainable development refers to
A.placing restraints on a company’s growth until all ancillary support services are in place to ensure a
new venture’s success.
B. global economies that are slowly moving from an agrarian-base to an industrial base.
C. adhering to worldwide standards for environmental quality and green marketing practices.
D. marketing efforts to produce, promote, and reclaim environmentally sensitive products.
E. conducting business in a way that protects the natural environment while making economic progress.

173.Which of the following statements about sustainable development is most accurate?
A. A company that always makes its furniture from rare tropical woods is practicing sustainable
development.
B. At this point in time, sustainable development is a luxury that only large international companies can
achieve.
C Sustainable development is achieved when a firm’s sales growth rate increases an average of 1-2% per . year for a period of at least five years.
D A company that uses overseas child laborers to manufacturer its products to reduce costs does not
. practice sustainable development.
E. Unfortunately, only a small number of consumers care whether a company practices sustainable
development.

174.Arrowhead® Brand Mountain Spring Water recently changed its bottle by reducing the size of its label by one-third, using 30% less plastic, and making the bottle more flexible for easier recycling. These efforts
are part of the company’s goal to engage in A. sustainable development
B. market development
C. ISO 9000 compliance
D. cause marketing
E. environmental downsizing

175.Consumers have an obligation to products.
.
in the exchange process and in the use and disposition of
A. get as much as they can for their money
B. support cause marketing efforts
C. reveal any and all pertinent personal information D. act ethically and responsibly
E. seek products without ISO 14000

176.Practices that include filing warranty claims after the claim period, misredeeming coupons, and making fraudulent returns of merchandise are examples of
A. normal and reasonable consumer behavior.
B. unethical practices by consumers.
C. acceptable consumer code of ethics.
D. costs to be passed along to shareholders as a part of doing business. E. violations of the Consumer Bill of Rights.

177.Which of the following statements about consumer ethics is most accurate?
A. Consumer complaints about online auction fraud outnumber all reports of online crime.
B. The cost to marketers of unethical consumer behavior is negligible in terms of lost sales.
C.The potential cost to marketers of unethical consumer behavior is dramatically reduced by investing in
loss prevention training.
D. Retailers lose about $1 million dollars a day from shoplifting.
E.At some point, every person shoplifts or participates in an unethical exchange; to retailers, it is simply
the cost of doing business.

178.Which of the following statements about consumer ethics is most accurate?
A. Most consumers’ unethical acts are motivated by economic need.
B. Some consumers believe that if they can get away with unethical behavior, it is worth it.
C.If “everyone else does it,” then that becomes the norm so, ultimately, there is no such thing as unethical
consumer behavior.
D. Most consumers who shoplift do so because a salesperson has been insulting or rude.
E Few customers behave unethically toward smaller, independently owned businesses. Most unethical . consumer behavior is against “big business.”

179.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 (1) be unwilling to sacrifice convenience and pay higher prices to protect the environment, and (2)
Abe unable to make an ecologically sound purchase because eco-friendly products are significantly less . expensive, indicating that they are of lesser quality.
B. lack the knowledge to make informed decisions dealing with the purchase, use, and disposition of products.
C. believe that protecting the environment in one area actually can create disruptions in another areas. D. believe that ecological issues are still a matter of opinion even within the scientific community itself. Ebelieve that public sentiment toward ecological issues has now reached a consensus—in today’s
. economic downturn, jobs are more important than environmental issues.

180.Practices such as filing warranty claims after the claim period, misredeeming coupons, making fraudulent returns of merchandise, etc. are
A. acceptable provided the merchant providing the service has not violated the Consumer Bill of Rights. B. acceptable provided the salesperson doesn’t mind.
C occasionally permitted when two different firms are competing for a customer’s business and both are . using equally less than ethical practices.
D. not acceptable because consumers also have an obligation to act ethically and responsibly.
E. not acceptable unless the participants are nonprofit organizations or charities.

181.Making an unsubstantiated or misleading claim about the environmental benefits of a product, service, technology, or company practice is referred to as .
A. greenwashing
B. whitewashing
C. environmental slander D. green gouging
E. demarketing

182.Greenwashing refers to
A. marketing efforts to produce, promote, and reclaim environmentally sensitive products.
B. conducting business in a way that protects the natural environment while making economic progress. C the practice of making an unsubstantiated or misleading claim about the environmental benefits of a
. product, service, technology, or company practice.
D.the practice of deliberately concealing the mistakes that polluters make regarding the environmental
disasters they perpetrated.
Ethe recognition of the need for organizations to improve the state of people, the planet, and profit . simultaneously if they are to achieve sustainable, long-term growth.

183.Toyota employs all of the following business practices as part of “The Toyota Way” EXCEPT: A. to continuously improve business operations, always striving for innovation and evolution. B. to maximize individual and team performance.
C. to always go to the source to find the facts and make correct decisions.
D. to build trust and take responsibility.
E. to contribute to society and the economy by producing high-quality products and services.

184.One of Toyota’s top goals has been to develop advanced vehicle technologies to complement existing ones. The G21 vision arose out of this goal, which eventually led to the production of which of the following vehicles?
A. Lexus 450 all-electric car
B. Toyota Tundra gas-electric hybrid truck
C. Scion iQ micro-subcompact compressed natural gas car D. Toyota Prius gas-electric hybrid car
E. Toyota Camry hydrogen fuel cell hybrid car

185.In a recent survey, consumers were asked the following question: “Who should take the lead in addressing environmental issues?” The results suggest that should.
A. the federal government
B. businesses
C. individuals
D. environmental groups E. the state government