114) 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.
115) 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.
116) The groups primarily served by a firm exhibiting profit responsibility include
A) the general public, public interest groups, and the environment.
B) consumers, employees, suppliers, and distributors.
C) owners and stockholders.
D) the general public and competitors.
E) state and federal government.
117) Genzyme, the maker of Cerdelga, a drug that treats a genetic illness called Gaucher’s
disease that affects 10,000 people worldwide, has been criticized for charging up to $300,000 for
a year’s worth of Cerdelga. 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.
118) 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.
119) 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.
120) The groups primarily served by a firm exhibiting stakeholder responsibility include
A) the general public, public interest groups, and the environment.
B) consumers, employees, suppliers, and distributors.
C) owners and stockholders.
D) the general public, owners, and stockholders.
E) government, owners, and stockholders.
121) 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 were found
in 13 bottles. The recall cost the company $35 million and the profit from $40 million in lost
sales. Even though the chemical level 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
122) Volkswagen AG was widely criticized for its failure to practice ________ when it
employed sophisticated software on selected Volkswagen, Audi, and Porsche models that
disguised the amount of smog pollutants emitted from selected cars.
A) moral idealism
B) stakeholder responsibility
C) utilitarianism
D) cause marketing
E) profit responsibility
123) Societal responsibility refers to
A) the obligation that organizations have to (1) the preservation of the 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.
124) The obligation organizations have to the preservation of the ecological environment and to
the general public is referred to as
A) community responsibility.
B) stakeholder responsibility.
C) benefit marketing.
D) societal responsibility.
E) profit responsibility.
125) 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.
126) 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.
127) 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.
128) Triple bottom line refers to
A) 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.
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.
129) All of the following are the result of an interest in the triple bottom line except which?
A) sustainable development
B) cause marketing
C) environmental scans
D) green marketing
E) social audits
130) The effort to meet today’s (global) economic, environmental, and social needs without
compromising the opportunity for future generations to meet theirs is referred to as
A) sustainable marketing.
B) recycle marketing.
C) cause marketing.
D) environmental marketing.
E) recycling.
131) 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.
132) Marketing efforts to produce, promote, and reclaim environmentally sensitive products are
referred to as
A) green marketing.
B) lifecycle marketing.
C) cause marketing.
D) environmental marketing.
E) conservation marketing.
133) At 3M, the “Pollution Prevention Pays” (3P) program has generated over 11,000 3P projects
that eliminated more than two 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.
134) Levi Strauss & Co. uses eight recycled plastic bottles in each pair of its Waste < Less jeans,
which are composed of at least 20 percent recycled content. This is an example of
A) proactive marketing.
B) consumerism.
C) an ecological code of ethics.
D) green marketing.
E) cause marketing.
135) Which of the following is an example of green marketing?
A) McDonald’s added apple snacks to its Happy Meals targeted at children.
B) Lowe’s and Home Depot discontinued the sale of lumber and other wood products.
C) Levi-Strauss marketed prewashed jeans.
D) Joe’s Lawn Service offered a special spring cleanup promotion.
E) Walmart implemented buying practices that encourage its suppliers to use containers and
packing made from corn, not oil-based resins.
136) Chrysler recycles thousands of tons of wood 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.
137) Many fast-food restaurants, including Burger King, McDonald’s, and Wendy’s, no longer
use polystyrene containers (which degrades very slowly 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.
138) 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.
139) ISO stands for
A) International Service Organizations.
B) Integrated Standards Organization.
C) International Standards Organization.
D) International Sustainable Offerings.
E) Integrated Solutions Organization.
140) ISO 14000 refers to
A) a plan to encourage the purchase of “Made in America” products.
B) an international plan to further green marketing practices.
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.
E) a 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).
141) A global undertaking to further environmental quality and green marketing efforts is the
A) ISO 14000 initiative.
B) Kyoto Protocol.
C) Green World (GW) initiative.
D) World Wildlife Federation Conference.
E) Madrid Protocol initiative.
142) 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 patronage.
C) relationship marketing.
D) transactional marketing.
E) cause marketing.
143) Cause marketing is a tactic wherein
A) the charitable contributions of a firm are tied directly to the customer revenues produced
through the promotion of one of its products.
B) organizations recognize the need to improve the state of people, the planet, and profit
simultaneously if they are to achieve sustainable, long-term growth.
C) marketing services are provided at little or no cost for the purpose of promoting or supporting
a worthy cause.
D) companies employ marketing efforts to produce, promote, and reclaim environmentally
sensitive products.
E) marketing actions that took place actually caused more good than was anticipated.
144) A key difference between cause marketing and a charitable contribution is
A) a charitable contribution provides an organization with a lower tax deduction.
B) there 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 directly affected by consumers’ purchases.
D) cause marketing is generally linked to public causes and concerns while charitable
contributions are generally given to private institutions.
E) there is essentially no difference between a charitable contribution and cause marketing.
145) 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.
146) Since 2006, Procter & Gamble has developed a successful brand campaign in partnership
with UNICEF that includes the Pampers 1 Pack = 1 Vaccine initiative, which has protected 300
million women and their babies against maternal and neonatal tetanus. This is an example of
A) philanthropic marketing.
B) corporate altruism.
C) the marketing concept.
D) green marketing.
E) cause marketing.
147) During its Drive to End Hunger campaign to help fight hunger among nearly nine million
older Americans, Quaker State donated 25 cents per bottle sold of five-quart specially-marked oil
products to the AARP Foundation that works on this issue. This is an example of
A) philanthropic marketing.
B) corporate altruism.
C) the marketing concept.
D) green marketing.
E) cause marketing.
148) When a customer buys Avon’s Pink Power Pro Nail Enamel, 100 percent of the profits go to
the Avon Breast Cancer Crusade. This is an example of
A) philanthropic marketing.
B) corporate altruism.
C) cause marketing.
D) the marketing concept.
E) societal marketing.
149) A Toyota 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.
150) Eighty percent of consumers say they will switch to a brand or retailer that supports a good
cause if the price and quality of brands or retailers are equal. In short, cause marketing may be a
valued ________ for brands and companies, all other things being equal.
A) sales approach
B) societal marketing trend
C) public relations exercise
D) transactional marketing practice
E) point of difference
151) 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 based in “goodwill” rather than actual
revenue.
C) The 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.
152) A systematic assessment of a firm’s objectives, strategies, and performance in terms of
social responsibility is referred to as
A) a business mission.
B) a social audit.
C) the strategic marketing process.
D) a SWOT analysis.
E) an accountability analysis.
153) A social audit refers to
A) a systematic assessment of a firm’s compliance to fair hiring practices and commitment to
diversity.
B) a companywide 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.