1. C HAPTER 16 MARKETING ETHICS AND SOCIAL RESPONSIBILITY CRS Questions & Answers

2. Copyright 2007, Prentice-Hall Inc.16-2 Critics often argue that the American marketing system results in higher prices for consumers due to all EXCEPT which of the following? 1.High distribution costs 2.Excessive mark-ups 3.Replacement and repair costs stemming from poor product quality 4.High advertising and promotion costs

3. Copyright 2007, Prentice-Hall Inc.16-3 Critics often argue that the American marketing system results in higher prices for consumers due to all EXCEPT which of the following? 1.High distribution costs 2.Excessive mark-ups 3.Replacement and repair costs stemming from poor product quality 4.High advertising and promotion costs Advertising, promotion, and distribution costs are most often criticized, along with mark-up levels.

4. Copyright 2007, Prentice-Hall Inc.16-4 Among the deceptive marketing practices cited by critics are _________. 1.Deceptive packaging 2.Deceptive pricing 3.Deceptive promotion 4.All the above

5. Copyright 2007, Prentice-Hall Inc.16-5 Among the deceptive marketing practices cited by critics are _________. 1.Deceptive packaging 2.Deceptive pricing 3.Deceptive promotion 4.All the above Deceptive practices lead consumers to believe that they will receive more value than what they actually do.

6. Copyright 2007, Prentice-Hall Inc.16-6 Deceptive practices have led to legislation and other consumer actions, including the _____ Act which grants regulatory power to the Federal Trade Commission. 1.Robinson-Patman 2.FTC 3.Consumer Product Safety 4.Wheeler-Lea

7. Copyright 2007, Prentice-Hall Inc.16-7 Deceptive practices have led to legislation and other consumer actions, including the _____ Act which grants regulatory power to the Federal Trade Commission. 1.Robinson-Patman 2.FTC 3.Consumer Product Safety 4.Wheeler-Lea Visit www.ftc.gov to view the FTC’s guidelines that describe deceptive practices.www.ftc.gov

8. Copyright 2007, Prentice-Hall Inc.16-8 An advertising campaign that promotes the purchase of a luxury car as a means of proving one’s success would be criticized for: 1.Encouraging materialism 2.Cultural pollution 3.Providing car manufacturers with too much political power 4.Not offering social goods

9. Copyright 2007, Prentice-Hall Inc.16-9 An advertising campaign that promotes the purchase of a luxury car as a means of proving one’s success would be criticized for: 1.Encouraging materialism 2.Cultural pollution 3.Providing car manufacturers with too much political power 4.Not offering social goods Ad campaigns that promote opulence, waste, and conspicuous consumption encourage materialism.

10. Copyright 2007, Prentice-Hall Inc.16-10 Consumer advocates wish to expand buyers’ rights to include all the following EXCEPT: 1.The right to be well informed about important aspects of the product. 2.The right to be protected against questionable products and marketing practices. 3.The right to a full refund if the buyer is dissatisfied, no questions asked. 4.The right to influence products and marketing practices in ways that will improve the "quality of life."

11. Copyright 2007, Prentice-Hall Inc.16-11 Consumer advocates wish to expand buyers’ rights to include all the following EXCEPT: 1.The right to be well informed about important aspects of the product. 2.The right to be protected against questionable products and marketing practices. 3.The right to a full refund if the buyer is dissatisfied, no questions asked. 4.The right to influence products and marketing practices in ways that will improve the "quality of life." Retailers often give a refund when buyers are dissatisfied; however, this is not a proposed “consumer right.”

12. Copyright 2007, Prentice-Hall Inc.16-12 The question, "Would making our products recyclable add value for our customers?" is likely to come out of what practice of environmental sustainability? 1.Sustainability vision 2.New environmental technology 3.Pollution prevention 4.Product stewardship

13. Copyright 2007, Prentice-Hall Inc.16-13 The question, "Would making our products recyclable add value for our customers?" is likely to come out of what practice of environmental sustainability? 1.Sustainability vision 2.New environmental technology 3.Pollution prevention 4.Product stewardship Product stewardship minimizes environmental impacts throughout the product life cycle, while reducing costs.

14. Copyright 2007, Prentice-Hall Inc.16-14 The statement, "Our mission is for our company to evolve in ways that help solve social and environmental problems" likely stems from what practice of environmental sustainability? 1.Sustainability vision 2.New environmental technology 3.Pollution prevention 4.Product stewardship

15. Copyright 2007, Prentice-Hall Inc.16-15 The statement, "Our mission is for our company to evolve in ways that help solve social and environmental problems" likely stems from what practice of environmental sustainability? 1.Sustainability vision 2.New environmental technology 3.Pollution prevention 4.Product stewardship The sustainability vision guided the future and offers a framework for environmental technology, product stewardship, and pollution control.

16. Copyright 2007, Prentice-Hall Inc.16-16 Suppose that a firm’s corporate goal states that 33% of the company’s revenue must come from new or improved products. Such a goal is most consistent with which of the following? 1.Consumer-oriented marketing 2.Innovative marketing 3.Value marketing 4.Societal marketing

17. Copyright 2007, Prentice-Hall Inc.16-17 Suppose that a firm’s corporate goal states that 33% of the company’s revenue must come from new or improved products. Such a goal is most consistent with which of the following? 1.Consumer-oriented marketing 2.Innovative marketing 3.Value marketing 4.Societal marketing The principle of innovative marketing is in effect when a company continuously seeks real product and marketing improvements.

18. Copyright 2007, Prentice-Hall Inc.16-18 Life, home, health, and auto insurance are examples of which of the following? 1.Pleasing products 2.Desirable products 3.Salutary products 4.Deficient products

19. Copyright 2007, Prentice-Hall Inc.16-19 Life, home, health, and auto insurance are examples of which of the following? 1.Pleasing products 2.Desirable products 3.Salutary products 4.Deficient products Salutary products have low appeal in that they do not provide immediate satisfaction, but actually benefit consumers in the long run.

20. Copyright 2007, Prentice-Hall Inc.16-20 ________ is illegal in the U.S., but expected in countries such as Russia and China where it is considered to be a standard business practice. 1.Bribery 2.Exclusive dealing 3.Puffery 4.Environmentalism

21. Copyright 2007, Prentice-Hall Inc.16-21 ________ is illegal in the U.S., but expected in countries such as Russia and China where it is considered to be a standard business practice. 1.Bribery 2.Exclusive dealing 3.Puffery 4.Environmentalism American companies often find it difficult to compete in countries where bribery is a standard business practice. American firms must conform to American law when doing business in a foreign country.