Marketing, 14e (Kerin)
1) Anheuser-Busch established its Corporate Social Responsibility (CSR) Department to
A) promote the positive aspects of moderate beer consumption.
B) promote responsible drinking and curb underage drinking before it starts.
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.
2) The Family Talk About Drinking guidebook developed by Anheuser-Busch to help parents
and other adults talk with children about underage drinking is an example of
A) consumerism.
B) preemptive marketing.
C) ethical behavior in marketing.
D) the social marketing concept.
E) cause marketing.
3) 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.
4) In 2013, Budweiser launched its first responsible drinking blimp. The airship, which carried
the “Designate a Driver” message, embarked on a 17-week tour across the United States. Which
of the following was the firm exhibiting?
A) stockholder responsibility
B) profit responsibility
C) utilitarianism
D) cause marketing
E) social responsibility
5) Anheuser-Busch’s commitment to preserving the natural environment by using renewable
fuels such as biogas and landfill gas is an example of
A) utilitarianism.
B) social responsibility.
C) moral idealism.
D) profit responsibility.
E) cause marketing.
6) 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) values and standards of society 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 an individual or a group’s beliefs of nations or religions.
7) 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.
8) Laws refer to
A) a specific set of behaviors a given society considers to be 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.
9) 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.
10) Which of the following statements most 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 moral principles and values whereas laws are society’s values and
standards that are enforceable in the courts.
11) 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 physicians’ actions were
A) ethical but illegal.
B) ethical and legal.
C) unethical and illegal.
D) unethical but legal.
E) altruistic but naïve.
12) China is the world’s largest tobacco-producing country and has 300 million smokers.
Approximately 1 million Chinese die annually from smoking-related illnesses. This figure is
expected to rise to more than 3 million by 2050. 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.
13) 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 onto the friend’s
computer. This activity is
A) both legal and ethical.
B) caveat emptor.
C) illegal but ethical.
D) both illegal and unethical.
E) sanctioned by the Business Software Alliance since only one copy was transferred.
14) There has been a public outcry about the ethical practices of businesspeople. Public opinion
polls show that 17 percent of U.S. adults rate the ethical standards of business executives as
“high” or “very high.” If most business are thought to be acting within all relevant laws, this
suggests that the businesspeople are perceived to be acting
A) ethically but illegally.
B) ethically and legally.
C) unethically and illegally.
D) unethically but legally.
E) in a socially responsible manner.
15) If a representative of a hotel group offered an existing customer a free night in a hotel
property, and when the customer checked into the hotel, the concierge asks the guest to attend a
presentation about the hotel group’s time share opportunities, this business practice would
probably 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.
16) A poll by 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.
17) Public opinion surveys show that 17 percent of U.S. adults rate the ethical standards of
business executives as
A) very poor.
B) average or above average.
C) similar to other professions.
D) typical of businesspeople around the world.
E) very high or high.
18) According to public opinion surveys, ________ are considered to be among the least ethical
occupations in the United States.
A) insurance company professionals
B) legal professionals
C) advertising practitioners
D) members of U.S. Congress
E) the news media
19) All of the following are reasons for the state of perceived ethical business conduct except
which?
A) a growing tendency for business decisions to be judged publicly by groups with different
values and interests
B) the increased pressure on businesspeople 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 behaving more ethically during difficult economic times
20) Which of the following is considered one of the major factors that influences an individual’s
personal moral philosophy and ethical behavior?
A) organizational structures
B) legislation
C) federal regulatory agencies
D) a nation’s moral philosophy
E) corporate culture and expectations
21) 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.
22) 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.
23) 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.
24) Which of the following is a socializing force that dictates what is morally right and just?
A) federal regulatory agencies such as the FTC
B) federal, state, and local legislation
C) the U.S. Supreme Court
D) culture
E) organizational core values
25) 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. This means 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.
14
Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
26) Copyrights, trademarks, and patents are ________, so unauthorized use is illegal.
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
Answer: B
Explanation: Copyrights, trademarks, and patents are viewed as intellectual property.
Unauthorized use, reproduction, or distribution of intellectual property is illegal in the United
States and most countries.
Difficulty: 1 Easy
Topic: Ethical Issues in Marketing
Learning Objective: 04-02 Identify factors that influence ethical and unethical marketing
decisions.
Bloom’s: Remember
AACSB: Ethics
Accessibility: Keyboard Navigation
27) 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, and 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.
15
Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
28) In most countries, copyrights, trademarks, and patents are viewed as intellectual property,
and unauthorized use, reproduction, or distribution of intellectual property is illegal. In a few
countries, however, copying enjoys a long tradition, does not carry a stigma, and is legal. For
example, copying a masterpiece may be historically considered an art form in its own right. The
difference between these two groups of countries shows that ________ affect(s) the view of
ethical behavior held in each country.
A) business culture
B) industry practices
C) corporate culture
D) corporate expectations
E) societal culture and norms
Answer: E
Explanation: Differences in societal culture and norms affect the view of ethical behavior held
in both groups—the first, where infringing on intellectual property is illegal, and in the second,
where it is legal.
Difficulty: 3 Hard
Topic: Ethical Issues in Marketing
Learning Objective: 04-02 Identify factors that influence ethical and unethical marketing
decisions.
Bloom’s: Apply
AACSB: Ethics
Accessibility: Keyboard Navigation
29) 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 in international law
E) organizational culture and expectations
30) Making counterfeit copies of Gucci purses, Tommy Hilfiger sportswear, and other
international brands is pervasive in some countries because laws protecting intellectual property
are unclear and sporadically enforced. A business introducing a product into such a country
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
31) 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.
32) 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.
33) 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.
34) 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) “Be informed.”
E) “Such is life.”
35) The legal concept of “let the buyer beware,” which was pervasive in the American business
culture before the 1960s, is referred to as
A) ad nauseum.
B) mea culpa.
C) quid pro quo.
D) c’est la vie.
E) caveat emptor.
36) Caveat emptor refers to
A) the legal concept of “let the buyer beware,” which was pervasive in the American business
culture before 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.
E) the Latin phrase meaning “empty promises,” which was a charge placed upon many firms
during the period after World War II when products failed to meet their marketing claims.
37) Investors should understand that when purchasing stock, the principle of ________ is in
effect. It is in the best interests of 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) c’est la vie
E) caveat emptor