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d. Consumers are more loyal to companies who have wronged them.
e. More information about the products can be posted online.
249. Companies that incorporate ethics and social responsibility into their strategic plans are likely to experience
a. improved marketing performance.
b. increased lawsuits.
c. negative publicity
d. reduced costs.
e. disappointed shareholders.
250. Which of the following is not one of the four dimensions of social responsibility presented in your text?
a. Consumerism
b. Philanthropic
c. Ethical
d. Economic
e. Legal
251. If Hefty Bags expresses concern that its products are having too great an impact on the pollution of ground water
under landfills, this concern is directly related to the firm’s
a. social responsibility.
b. marketing concept.
c. legal responsibility.
d. ethical responsibility.
e. corporate benevolence.
252. J. Pitner Clothing is a medium-size specialty men’s and women’s clothing store in a market with many other specialty
stores, department stores, and discounters. It has established a reputation for offering high-quality, fashionable
merchandise with quality service. J. Pitner’s competitive environment would best be characterized as
a. a monopoly.
b. an oligopoly.
c. monopolistic competition.
d. pure competition.
e. faceted competition.
253. In today’s marketing environment, competitors can take on many forms. For example, Diet Coke can be seen as a
competitor to Wrigley’s Double Mint chewing gum. In this circumstance, these two products are described as ____
competitors.
a. generic
b. product
c. total budget
d. monopolistic
e. pure
254. Which of the following provides protection for and regulates brand names, brand marks, trade names, and
trademarks?
a. Sherman Antitrust Act
b. Clayton Act
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c. Robinson-Patman Act
d. Lanham Act
e. Celler-Kefauver Act
255. The FTC can issue a cease-and-desist order, which is an injunction to
a. report to the FTC immediately.
b. stop doing whatever caused the complaint.
c. appear before the courts.
d. pay for damages caused by negligence of the firm.
e. close down the firm until further notice.
256. Technology is
a. the application of scientific knowledge to build products that customers desire.
b. the application of knowledge and tools to solve problems and perform tasks more efficiently.
c. applied sciences.
d. one of the weakest marketing environment forces.
e. the result of research performed primarily by universities.
257. The Ben & Jerry’s Foundation mission statement reads as follows:
“The mission of the Ben & Jerry’s Foundation is to engage Ben & Jerry’s employees to give back to our Vermont
communities; and to support grassroots activism and community organizing for social and environmental justice around
the county.”
Which one of the following statements most closely describes the social responsibility role of the Ben & Jerry’s
Foundation?
a. It is an example of the ethical dimension of social responsibility.
b. It is an example of the philanthropic dimension of social responsibility.
c. It is an example of the economic dimension of social responsibility.
d. It is an example of the legal dimension of social responsibility.
e. It is an example of the political dimension of social responsibility.
258. The effect that coworkers have on the ethical decision-making process depends on a person’s exposure to ethical and
unethical behavior. Which of the following statements about ethical decision making is true?
a. The more a person is exposed to ethical activity in the organization, the more likely he or she will behave
unethically.
b. The more a person is exposed to unethical activity in the organization, the more likely he or she will behave
unethically.
c. The more a person is exposed to unethical activity in the organization, the less likely he or she will pay attention
to that activity.
d. The more a person is exposed to ethical activity in the organization, the less likely he or she will pay attention to
that activity.
e. Exposure to ethical and unethical activity has no effect on a person’s decision-making process.
259. Companies that are considered to be good corporate citizens and consider the diverse perspectives of different groups
affected by their operations are said to have a ____ orientation.
a. marketing
b. sales
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c. production
d. stakeholder
e. citizen
260. Which category of income are marketers most interested in?
a. Wealth
b. Disposable income
c. Discretionary income
d. Total income
e. Extra income
261. Who of the following is a famous consumer activist?
a. Ralph Nader
b. Upton Sinclair
c. Benjamin Franklin
d. Abraham Maslow
e. Adam Smith
262. Marketing ethics
a. refers to laws and regulations that govern marketing.
b. refers to principles and standards that define acceptable conduct in marketing.
c. maximizes an organization‘s positive impact and minimizes its negative impact on society.
d. is most important for advertising agencies.
e. applies well-defined rules for appropriate marketing behavior.
263. Your company is planning to increase its political influencing activities in the next fiscal year in an attempt to shape
upcoming, key legislation in your favor.
Which of the following steps should you consider to accomplish this goal?
a. Hire a public relations firm to help create a more youthful image for your company.
b. Form your own Political Action Committee (PAC).
c. Decrease your contributions to the political campaigns of key legislators.
d. Close your company’s legislative affairs office in Washington D.C.
e. Cancel your company’s membership in the U.S. Chamber of Commerce.
264. Justin believes that certain conditions at his company are very conducive to engaging in unethical behavior because
these conditions provide rewards such as faster promotions and better salaries for those who bend the rules. Justin’s
company seems to allow ____ for unethical behavior.
a. peer pressure
b. individuality
c. corporate culture
d. exposure
e. opportunity
265. The two least common competitive structures are
a. monopolies and oligopolies.
b. pure competition and monopolies.
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c. monopolistic competition and monopolies.
d. pure competition and no competition.
e. oligopolies and pure competition.
266. ____ competitors are those that compete in the same product class, but their products have different features,
benefits, and prices.
a. Total budget
b. Generic
c. Brand
d. Product
e. Price
267. Blue Cross and Blue Shield of Illinois is a health insurance company that provides millions of members across the
state of Illinois with comprehensive and affordable health plans. The Illinois-based company is a licensed affiliate of the
Blue Cross and Blue Shield Association, which operates affiliate organizations in all 50 states. The Association is one of
the top five organizations who provides millions in contributions to lobby state and federal legislators or senators to enact
legislation, which would be favorable for their member companies. In 2014, the Association spent $17 million and was
active involved in the Affordable Care Act and legislation regarding Medicare. The Blue Cross and Blue Shield
Association is engaging in a ______ approach to environmental forces.
a. proactive
b. reactive
c. competitive
d. laissez faire
268. The American automobile industry was historically dominated by “The Big Three,” referring to General Motors,
Ford, and Chrysler. However, as many more foreign competitors began influencing this market, the American companies
had to modify and differentiate their products. The automobile industry moved from a(n) ____ structure to a(n) ____
structure.
a. monopolistic; oligopolistic
b. oligopolistic; pure competition
c. oligopolistic; monopolistic competition
d. monopolistic competition; pure competition
e. monopolistic; monopolistic competition
269. One way in which marketers can demonstrate social responsibility is through programs in sustainability. Which of
the following is not included as a goal of sustainability?
a. long-term well-being of the natural environment
b. focus primarily on the external environment of the company
c. consider individuals as part of the natural environment
d. adopting more eco-friendly business practices
e. improving technologies that protect the natural environment
270. Due to limited resources, a consumer decided to serve Hawaiian Punch to a New Year’s Eve party crowd instead of
Korbel champagne. As a result of this action, Korbel and Hawaiian Punch can be viewed as ____ competitors.
a. generic
b. product
c. total budget
d. oligopolistic
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e. pure
271. One of the most significant principles of business is that the primary objective of the executive management of a
corporate entity is to engage in strategic actions that increase shareholder value.
If we think of this objective in terms of the four dimensions of social responsibility, it would be part of the
a. Philanthropic dimension
b. Ethical dimension
c. Legal dimension
d. Economic dimension
e. Marketing dimension
Scenario 3.4
Use the following to answer the questions.
WhiteWave Foods, producer of brands such as Silk Soymilk, specializes in manufacturing innovative and nutritious food
products. Silk Soymilk was first launched in 1996, and is committed to the health of its customers, as well as the health of
the planet. At Silk, they have offset all of their energy consumption with wind power, preventing over 16,000 tons of
greenhouse gasses from entering the atmosphere each year. Silk Soymilk is made from a mixture of organic and natural,
non-genetically modified soy beans, reducing the amount of pesticides in the air, soil, and water. Since 2002 they have
been sponsoring the FarmAid concert, whose mission is to keep family farmers on their own land and ensure a safe,
healthy food supply for all Americans.
272. Refer to Scenario 3.4. Silk Soymilk’s parent company, WhiteWave Foods, is currently operating at the ____ level of
the social responsibility pyramid.
a. economic
b. philanthropic
c. ethical
d. legal
e. cause-related
Scenario 3.4
Use the following to answer the questions.
WhiteWave Foods, producer of brands such as Silk Soymilk, specializes in manufacturing innovative and nutritious food
products. Silk Soymilk was first launched in 1996, and is committed to the health of its customers, as well as the health of
the planet. At Silk, they have offset all of their energy consumption with wind power, preventing over 16,000 tons of
greenhouse gasses from entering the atmosphere each year. Silk Soymilk is made from a mixture of organic and natural,
non-genetically modified soy beans, reducing the amount of pesticides in the air, soil, and water. Since 2002 they have
been sponsoring the FarmAid concert, whose mission is to is to keep family farmers on their land and ensure a safe,
healthy food supply for all Americans.
273. Refer to Scenario 3.4. Silk Soymilk’s sponsorship of the FarmAid concert is best thought of as an example of its
a. cause-related marketing effort.
b. ethical responsibility.
c. green marketing strategy.
d. philanthropic activities.
e. environmental strategy.
274. In general, which of the following competitive structures is an organization least likely to operate?
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a. Monopoly
b. Monopolistic competition
c. Oligopoly
d. Elastic competition
e. Pure competition
275. Which of the following firms would be most likely to have a monopoly for its competitive environment?
a. TimeWarner Cable TV
b. Mitchell Trucking
c. American Airlines
d. Rogers Plumbing
e. Chemlawn Lawn Care
276. Which of the following companies would probably be most interested in tracking discretionary income levels?
a. Safeway food stores
b. BMW automobiles
c. Gulf States Utilities
d. General Mills
e. Florida Orange Growers
277. Price discrimination is prohibited by the ____ Act.
a. Sherman Antitrust
b. Wheeler-Lee
c. Robinson-Patman
d. Celler-Kefauver
e. Consumer Goods Pricing
278. Which of the following employees is most responsible for setting the ethical tone for the entire marketing
organization?
a. Marketing manager
b. Marketing employee
c. Product manager
d. Chief executive officer
e. Vice president of marketing research
279. As a media buyer for the Angelo Agency, Philip knows that no one ever checks to see if his phone calls are business
related or personal. With regard to ethical behavior, this situation relates most closely to
a. exposure.
b. individual factors.
c. desire.
d. opportunity.
e. organizational factors.
280. Consumer protection legislation deals with all of the following legal concerns except
a. consumer safety.
b. sale of hazardous products.
c. monopolistic practices.
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d. information disclosure.
e. health claims on food packages.
281. When a firm continues to violate what the Better Business Bureau believes to be good business practices, what is one
of the main actions the bureau will take?
a. Lead a consumer boycott of the business.
b. Sue the chief executive of the business.
c. Impose fines on the owners/managers of the business.
d. Support legal ordinances against the business.
e. Warn consumers of the unfair practices.
282. According to the consumer bill of rights, the idea that consumers’ interests should receive full and sympathetic
consideration in the formulation of government policy is known as the right to
a. be heard.
b. choose.
c. be informed.
d. safety.
e. listen.
283. The adoption of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities
expected by stakeholders is called
a. marketing citizenship.
b. social responsibility.
c. stakeholders.
d. cause-related marketing.
e. strategic philanthropy.
284. Of all the federal regulatory units, the ____ most heavily influences marketing activities.
a. Food and Drug Administration (FDA)
b. Federal Communications Commission (FCC)
c. Environmental Protection Agency (EPA)
d. Federal Trade Commission (FTC)
e. Federal Power Commission (FPC)
285. Which of the following would be consistent with Johnson Chemicals’ understanding of the “bad apple” concept of
improving the ethical conduct of salespeople?
a. Publishing ethical guidelines for salespeople
b. Firing unethical salespeople
c. Retraining unethical salespeople
d. Using customers to review ethical guidelines
e. Scrutinizing top management’s conduct
286. Bridgewater, Inc. produces its industrial components in several developing countries outside the United States. The
majority of Bridgewater’s customers are in the U.S. and Canada. One of Bridgewater’s customers is Craft Care, who uses
Bridgewater components in the production of child car seats. Recently, there was a recall of Craft Care’s car seats due to
serious injuries, which the company has traced back to Bridgewater’s components. If Bridgewater knew about the faulty
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components, but failed to notify Craft Care, it would have been engaging in unethical behavior with regard to which of the
following marketing issue areas?
a. planning and strategy
b. distribution-related
c. promotion-related
d. product-related
e. quality-related
287. Which of the following terms refers to consumers’ propensity to buy?
a. Disposable income
b. Discretionary income
c. Buying power index
d. Buying power
e. Willingness to spend
288. To monitor changes in the marketing environment effectively, marketers must engage in
a. environmental scanning and analysis.
b. economic scanning
c. self-regulatory analysis
d. marketing research analysis
e. information collecting
289. In its advertisements for Bud Light beer, Anheuser-Busch has decided to include a statement saying “Know when to
say when.” This is an example of which one of the following types of regulatory forces affecting marketing efforts?
a. Federal regulation
b. State regulation
c. City regulation
d. Self-regulation
e. Social regulation
290. According to the text, which of the following is not one of the factors that influence the ethical decision-making
processes in a marketing organization?
a. Organizational culture
b. Attitudes toward religion
c. Opportunity
d. Individual factors
e. Organizational pressure
291. Companies that compete for the same limited financial resources of the same customers are known as ____
competitors.
a. oligopolic
b. total budget
c. generic
d. product
e. brand
292. What type of competitive structure exists when a firm produces a product that has no close substitutes?
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a. Monopoly
b. Oligopoly
c. Monopolistic competition
d. Pure competition
e. Mixed competition
293. ____ competitors are the most significant to marketers because buyers see the different products of these firms as
direct substitutes for each other.
a. Oligopolic
b. Total budget
c. Generic
d. Product
e. Brand
Scenario 3.5. The Consumer Financial Protection Bureau settled a claim with the Bank of America for deceiving
customers and unfairly billing them for services such as credit monitoring and identity theft protection. Bank of America
agreed to provide refunds to 2.9 million people and pay $45 million in fines for their illegal credit card practices. Their
deceptive practices dated to 2000 where they had billed customers for products such as “Privacy Guard” or “Privacy
Assist” without first obtaining authorization for the products. The $45 million in fines includes $25 million as a civil
penalty that will be paid to the Office of the Comptroller of the Currency and $20 million to the Consumer Financial
Protection Bureau. The Bureau also claims that Bank of America deceived about 1.4 million customers into making about
$268 million in payments by, among other things, improperly telling them the first 30 days of coverage were free or the
benefits were greater than existed.
294. Refer to Scenario 3.5. Which environmental force is Bank of America responding to by agreeing to pay fines and
refunds to consumers?
a. legal and regulatory
b. competitive
c. technological
d. economic
295. L’Oreal, a manufacturer of personal care and beauty products has a focus on sustainability. It has developed eco–
packaging, eliminated many potentially harmful chemicals from its products, and has improved its production systems to
reduce waste. What major social responsibility issue is L’Oreal addressing?
a. The natural environment
b. Consumerism
c. Marketing ethics
d. Legal obligations
e. Community relations
296. Marketers primarily focus their environmental analysis on ____ competitors.
a. brand
b. product
c. total budget
d. generic
e. monopolistic
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297. A recent business news publication ran an article titled, “Starbucks Brews a Win–Win for Baristas, Employers”. The
article discussed recent initiatives implemented by the company that are proving to be very positive for the company and
the baristas working in its coffee shops.
This article is an example of
a. cause-related marketing.
b. the firm taking a stakeholder view with its initiatives.
c. strategic philanthropy.
d. marketing citizenship.
e. consumerism.
298. Which of the following acts was enacted to prevent businesses from restraining trade and monopolizing markets?
a. Sherman Antitrust Act
b. Clayton Act
c. Federal Trade Commission Act
d. Robinson-Patman Act
e. Wheeler-Lea Act
Scenario 3.2
Use the following to answer the questions.
Clayton Homes, a mobile home manufacturer since 1934, introduced its new i-House in 2007. The i-House is one of the
first of its kind, designed as an updated, modern version of the modular home, offered as a base home plus add-ons known
as “pods.” The base home is a one-bedroom, one-bath 734-square foot version at a price of around $80,000. There is also
a 1,000 square-foot version for around $100,000. All versions may add on the additional one-room pods as desired which
are shipped to your location and constructed on-site. The homes offer galvanized metal roofing, corrugated steel siding,
VOC-free paints, and a “butterfly” roof that collects rainwater. The i-House uses 30% less energy than a similar square-
foot home and offers “green” characteristics of solar panels, tankless water heaters, and low-flow faucets. In addition, it
comes with bamboo flooring, a renewable resource. The modular, pre-fabricated design offers endless options for creating
the customer’s home and its engineered building system cuts down on construction waste. Due to the “green effects” of
the i-House, the state governments have given it a tax abatement for any sales taxes.
299. Refer to Scenario 3.2. The income a consumer would use to purchase an i-House is considered ____ income.
a. discretionary
b. buying power
c. disposable
d. consumer spending
e. comprehensive spending
Scenario 3.3
Use the following to answer the questions.
Hershey Foods was founded in the nineteenth century by Milton Hershey, who had a strong ethical value system⎯always
show integrity, be honest, and respect others. Hershey felt it was important to provide high-quality goods and services of
real value at competitive prices that provide an adequate return on investment. He also founded the Milton Hershey
School, operating today as a cost-free, private home and school dedicated to helping children with social needs and
limited resources. The company also focuses on environmental issues, such as reducing waste by 360,000 pounds
annually by redesigning Hershey’s Syrup caps. Hershey Foods has an ethics compliance program that includes a code of
ethics and training, guidelines for handling legal and ethical issues, an 800 number for assistance with ethical issues, and
support from supervisors and human resource managers in dealing with ethical issues. However, in the last few years,
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Hershey has been criticized by several advocacy groups concerning the sourcing of its chocolate from West Africa where
many of the companies use child labor. While Hershey is the largest chocolate candy producer in America, it lags behind
other major chocolate producers with regard to certifying its chocolate as child labor-free.
300. Refer to Scenario 3.3. Milton Hershey contributed resources to the community to improve the overall quality of life
for consumers, employees, and the community in general. This reflected his ____ responsibility.
a. philanthropic
b. ethical
c. legal
d. economic
e. shareholder
301. Assuming that inflation is low, high buying power characterizes the ____ stage of the business cycle.
a. prosperity
b. depression
c. recovery
d. succession
e. recession
302. Toyota has developed aluminum car bodies that are 100 percent recyclable and light enough to help conserve fuel.
What kind of response is this to environmental forces?
a. Proactive
b. Competitive
c. Reactive
d. Inactive
e. Controllable
303. State Farm Insurance Company is the largest insurance company in the United States and is consistently recognized
for their efforts to “build safer, stronger, and better communities.” They have received numerous awards including
Corporate Responsibility Index, Corporation of the Year, Outstanding Corporate Partner, and Top 100 Employers.
Recently, State Farm received a President’s Volunteer Service Award from Junior Achievement for providing more than
5,000 volunteer hours to the organization. The State Farm—Junior Achievement program impacts students by partnering
with organizations to reduce high school dropout rates and increases the number of students receiving high school
diplomas. Research has shown that students who graduate from high school will be more successful and productive
citizens. In order to be successful, State Farm must be able to recruit and hire talented employees who have met minimum
expectations for educational achievement. Through its partnership with Junior Achievement, State Farm Insurance
Company has adopted a __________ approach to social responsibility.
a. strategic philanthropy
b. cause-related marketing
c. mission-central
d. sustainable
Scenario 3.5. The Consumer Financial Protection Bureau settled a claim with the Bank of America for deceiving
customers and unfairly billing them for services such as credit monitoring and identity theft protection. Bank of America
agreed to provide refunds to 2.9 million people and pay $45 million in fines for their illegal credit card practices. Their
deceptive practices dated to 2000 where they had billed customers for products such as “Privacy Guard” or “Privacy
Assist” without first obtaining authorization for the products. The $45 million in fines includes $25 million as a civil
penalty that will be paid to the Office of the Comptroller of the Currency and $20 million to the Consumer Financial
Protection Bureau. The Bureau also claims that Bank of America deceived about 1.4 million customers into making about
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$268 million in payments by, among other things, improperly telling them the first 30 days of coverage were free or the
benefits were greater than existed.
304. Refer to Scenario 3.5. Bank of America is interested in helping people understand their money and how to build
Better Money Habits™. They are working to connect customers, clients, employees and communities to the tools,
products, and education they need to help make their financial lives better. The Bank of America has partnered with Khan
Academy to launch BetterMoneyHabits.com where free content is available to anyone via a self-paced learning
experience to explain the complex concepts of financial matters. The partnership between Bank of America and Khan
Academy to provide financial literacy through the website BetterMoneyHabits.com reflects the importance of ______ as
an environmental factor.
a. technological
b. economic
c. political
d. legal and regulatory
305. If all the gas stations in a city collaborated to determine what gas prices should be charged, they would be violating
the
a. Wheeler-Lea Act.
b. Clayton Act.
c. Robinson-Patman Act.
d. Sherman Antitrust Act.
e. Celler-Kefauver Act.
306. As far as prices are concerned, environmentalists believe prices should
a. be based on the cost of materials used to manufacture the product.
b. reflect the direct cost as well as the cost of air, water, and soil used.
c. be determined by the supply and demand of products in the marketplace.
d. include a large tax to defray the costs of environmental compliance.
e. be based on the renewability of the resources used to make the product.
307. You are a member of the North American region’s sales team at a major technology company in New Haven,
Connecticut. It is yearend, and there is a mad rush going on to make sure sales targets are met. One of your team members
suggests to you that he can quickly boost his sales numbers by calling a friend and asking him put through an order today,
then cancel the order next week before it ships.
You question whether this is ethical, but you need to hit your numbers for the month so you go along with the tactic any
way.
This is an example of
a. the individual factors that influence ethical decision making.
b. the organizational relationship factors that influence ethical decision making.
c. the opportunity factors that influence ethical decision making.
d. the environmental factors that influence ethical decision making.
e. the social factors that influence ethical decision making.
Scenario 3.4
Use the following to answer the questions.
WhiteWave Foods, producer of brands such as Silk Soymilk, specializes in manufacturing innovative and nutritious food
products. Silk Soymilk was first launched in 1996, and is committed to the health of its customers, as well as the health of
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the planet. At Silk, they have offset all of their energy consumption with wind power, preventing over 16,000 tons of
greenhouse gasses from entering the atmosphere each year. Silk Soymilk is made from a mixture of organic and natural,
non-genetically modified soy beans, reducing the amount of pesticides in the air, soil, and water. Since 2002 they have
been sponsoring the FarmAid concert, whose mission is to keep family farmers on their own land and ensure a safe,
healthy food supply for all Americans.
308. Refer to Scenario 3.4. Silk Soymilk’s use of organic, non-genetically modified soybeans in its product is an example
of
a. green marketing.
b. social consciousness.
c. ethical responsibility.
d. cause-related marketing.
e. corporate benevolence.
309. Three primary methods of collecting information for environmental scanning are
a. marketing research, company records, and advance orders.
b. secondary sources, company records, and observation.
c. executive knowledge, media, and marketing research.
d. observation, secondary sources, and marketing research.
e. company database, executive knowledge, and research.
310. A company’s mission statement sets the expectation or vision of what the organization wants to become and provides
tangible elements which guide the organization and its employees. Starbucks has been recognized as one of the World’s
Most Ethical Companies and its mission is “To inspire and nurture the human spirit—one person, one cup and one
neighborhood at a time.” The company also specifies a set of values that include “creating a culture of warmth and
belonging where everyone is welcome; acting with courage, challenging the status quo and finding new ways to grow our
company and each other; delivering our very best in all we do, holding ourselves accountable for results.” Starbucks
concludes “We are performance driven, through the lens of humanity.” Based on these excerpts about Starbuck’s mission
and values, the organization is operating at the ______ level of the pyramid of corporate social responsibility.
a. philanthropic
b. economic
c. legal
d. ethical
311. Three factors that influence the ethical decision-making process in marketing include
a. individual factors, organizational culture, and peer influence.
b. opportunity, personal moral philosophies, and situational variables.
c. individual factors, organizational factors, and opportunity.
d. social forces, laws, and organizational factors.
e. peer influences, personal moral philosophies, and opportunity.
312. By offering both credit and financing through its GMAC division, General Motors is trying to help consumers
a. expand future buying power at the expense of current buying power.
b. expand disposable income at the expense of discretionary income.
c. expand current buying power at the expense of future buying power.
d. expand both disposable income and wealth.
e. decrease both disposable and discretionary income.
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313. According to some environmentalists, what are the three types of products that all products should be reduced to?
a. Durable goods, natural resources, and unsalables
b. Nondurable goods, durable goods, and consumables
c. Consumables, durable goods, and unsalables
d. Environmental goods, recyclables, and salables
e. Permanents, temporaries, and renewable resources
314. Synergy Tech has a program that offers consumers money back for their old Synergy computers so that the materials
used to make the computer can be retained within a closed system. Which of the primary environmental goals does
Synergy’s program address?
a. Eliminate the concept of waste.
b. Reinvent the concept of a product.
c. Make environmentalism profitable.
d. Make prices reflect the cost.
e. Create fewer durable goods.
315. The four basic rights outlined in the Consumer Bill of Rights include the right to safety, the right to be heard, the
right to
a. inform, and the right be chosen.
b. consumer education, and the right to honesty.
c. choose, and the right to be informed.
d. redress, and the right to choose.
e. honesty, and the right to redress.
316. The Federal Drug Administration (FDA) has established the following requirements relating to the ingredients
labelling on food products:
1. Labels must be placed on the product in a location most likely to be seen by the consumer.
2. Labels must include quantity of and type of ingredients included in the food product.
3. Labels must be printed in a specific font size.
Regarding these requirements, which one of the following statements is correct?
a. This is an example of marketing ethics as determined by a government regulator.
b. This is an example of marketing ethics as determined by a private-interest group.
c. The primary objective of these requirements is to enhance competition in the marketplace.
d. The primary objective of these requirements is make food packaging educational.
e. The primary objective of these requirements is to assist consumers with their recipes.
317. An ethical issue is
a. likely to arise when an employee’s moral philosophy is consistent with the organization’s expectations of the
employee’s behavior.
b. an identifiable problem, situation, or opportunity requiring an individual to choose from among several actions
that must be evaluated as right or wrong.
c. most often found in personal selling situations.
d. easily resolved by consulting written laws and regulations.
e. characterized by a blatant disregard for human rights and equality.
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318. Which of the following regulatory groups is a system of nongovernmental, independent, local regulatory agencies
supported by local businesses?
a. The Chamber of Commerce
b. The National Advertising Review Board
c. The National Advertising Division
d. The Better Business Bureau
e. American Marketing Association
319. Publix Supermarket is revising its marketing plan for the upcoming quarter. Publix typically focuses on its wide
variety of products and its high quality customer service, having very few weekly “sales.” However, during the upcoming
quarter, Publix plans to focus on price and value, and promote weekly “values” instead. Publix is most likely in a(n)
a. inflation period.
b. prosperity period.
c. recession.
d. depression.
e. recovery period.
320. Warnings on television commercials for prescription drugs include a list of sometimes grotesque side effects that are
possible when taking that particular drug. The consumer right to ____ most applies to these commercials.
a. know
b. safety
c. be heard
d. choose
e. be informed
321. People for the Ethical Treatment of Animals (PETA) have demonstrated against the sale of coats made of animal
furs. PETA’s efforts to change shoppers’ attitudes represent a ____ force for fur retailers.
a. technological
b. political
c. sociocultural
d. self-regulatory
e. controllable
322. Changes Salon is part of the hair and personal care service industry. In what type of competitive environment is
Changes Salon most likely operating?
a. pure competition.
b. a monopoly.
c. monopolistic competition.
d. oligopolistic competition.
e. an oligopoly.
323. Instead of addressing the question ____, many environmentalists and marketers believe the question should be ____.
a. “How can we reduce costs?”; “How can we keep prices low?”
b. “Where should we dispose of waste?”; “How can we protect society?”
c. “How can we make products better?”; “How can we reduce waste?”
d. “How can environmentalism be profitable?”; “Where is the benefit of environmental efforts?”
e. “What should we do with our waste?”; “How can we produce products without waste?”
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324. In a period of economic recovery, the best marketing strategy for FedEx would be characterized by which of the
following features?
a. Flexibility
b. Aggressiveness
c. Austerity
d. Retrenchment
e. Boldness
325. In a classroom discussion, Jacob agrees with Marcie that consumers generally want biodegradable beverage cups.
However, he says that businesses in that industry must evaluate whether
a. they can be produced.
b. consumers are willing to pay higher prices for them.
c. the competition will ever make them.
d. stores will stock them.
e. they can be effectively promoted.
326. Product-related ethical issues arise when marketers
a. provide consumers with inadequate information about how a product is priced.
b. force channel intermediaries to behave in a specific manner.
c. bribe salespeople to push one product over another.
d. fail to disclose information to consumers about the risks associated with using a product.
e. manufacture a product that is very similar to a competing product.
327. Your company makes highly sophisticated components for military equipment. The U.S. Department of Defense is
your largest customer. In recent years, you have expanded your customer base to include the militaries of all the major
countries in the world.
The following headlines appeared in the Sunday NYC Times newspaper recently:
1. “The Federal Reserve Board Chairman Sees Economic Growth Accelerating in the Third Quarter.”
2. “Congressional Republicans and Democrats Fail to Reach Compromise on the New Immigration Bill.”
3. “The Average Teen Spends Two Hours Per Day on Social Media Sites.”
4. “State Department Considers Imposing New Sanctions on Exports of Sensitive Military Technology.”
5. “Unemployment Rate Falls to 6.2%.”
Which one of the following statements is true regarding these headlines?
a. All of the headlines should be categorized as economic forces when analyzing the company’s marketing
environment.
b. All of the headlines should be categorized as political forces when analyzing the company’s marketing
environment.
c. Headline #5 should be categorized as a sociocultural force in the company’s marketing environment.
d. Headline #4 should be categorized as a legal and regulatory force in the company’s marketing environment.
e. All of the headlines should be categorized as geopolitical forces in the company’s marketing environment.
Scenario 3.4
Use the following to answer the questions.
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WhiteWave Foods, producer of brands such as Silk Soymilk, specializes in manufacturing innovative and nutritious food
products. Silk Soymilk was first launched in 1996, and is committed to the health of its customers, as well as the health of
the planet. At Silk, they have offset all of their energy consumption with wind power, preventing over 16,000 tons of
greenhouse gasses from entering the atmosphere each year. Silk Soymilk is made from a mixture of organic and natural,
non-genetically modified soy beans, reducing the amount of pesticides in the air, soil, and water. Since 2002 they have
been sponsoring the FarmAid concert, whose mission is to is to keep family farmers on their land and ensure a safe,
healthy food supply for all Americans.
328. Refer to Scenario 3.4. The use of wind power to offset energy consumption by Silk Soymilk’s parent company
demonstrates its commitment to
a. consumerism.
b. ethical marketing.
c. social responsibility.
d. philanthropic strategy.
e. environmental marketing.
329. More than half of the research of technology created is paid for by
a. corporations.
b. state and local governments.
c. the federal government.
d. large universities.
e. private investors.
330. Home Depot’s synergistic use of organizational core competencies and resources to address key stakeholders’
interests and achieve both social initiatives and its business goals is an example of
a. strategic philanthropy.
b. strategic ethics.
c. cause-related marketing.
d. strategic marketing.
e. environmental philanthropy.
331. Based on data from the Federal Reserve Bank of St. Louis, the Civilian Labor Force Participation Rates for men and
women in the United States are as follows:
Demographic Group Month Participation Rate
(Percent of Group)
Men May 2014 69.2
Women 57.1
Men May 2004 72.9
Women 59.1
Men May 1994 74.8
Women 58.7
With respect to this data, which one of the following statements is true?
a. The labor participation rate of men in the United States impacts the marketing environment, and it is increasing
faster than the rate for women.
b. The labor participation rate for women impacts the marketing environment, and it has been less stable over the
last 20 years than the rate for men.
c. In terms of proportions, fewer women were working in May 2004 compared to May 2014.
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d. The labor participation rate is an economic force that impacts the marketing environment.
e. The labor participation rate is a political force that impacts the marketing environment.
332. A marketing analyst on your team obtained the following historical economic data from the Federal Reserve Bank of
St. Louis for use in your marketing environment analysis:
Month Civilian Unemployment Rate Real Personal Consumption Expenditures (Billions)
December 2011 8.5% 10372.1
June 2012 8.2% 10493.6
December 2012 7.9% 10602.4
June 2013 7.5% 10707.1
December 2013 6.7% 10844.3
Based on the data, which of the following statements about these economic forces in your marketing environment is true?
a. Our customers likely had less buying power in December 2012 than they had in December 2011.
b. The data suggests that our customers’ buying power has been decreasing since before June 2012.
c. The data suggests that our customers’ buying power did not start increasing until December 2012.
d. Our customers likely had more buying power in June 2013 compared to June 2012.
e. Our customers likely found it easier to find jobs in December 2011 than in December 2013.
Scenario 3.2
Use the following to answer the questions.
Clayton Homes, a mobile home manufacturer since 1934, introduced its new i-House in 2007. The i-House is one of the
first of its kind, designed as an updated, modern version of the modular home, offered as a base home plus add-ons known
as “pods.” The base home is a one-bedroom, one-bath 734-square foot version at a price of around $80,000. There is also
a 1,000 square-foot version for around $100,000. All versions may add on the additional one-room pods as desired which
are shipped to your location and constructed on-site. The homes offer galvanized metal roofing, corrugated steel siding,
VOC-free paints, and a “butterfly” roof that collects rainwater. The i-House uses 30% less energy than a similar square-
foot home and offers “green” characteristics of solar panels, tankless water heaters, and low-flow faucets. In addition, it
comes with bamboo flooring, a renewable resource. The modular, pre-fabricated design offers endless options for creating
the customer’s home and its engineered building system cuts down on construction waste. Due to the “green effects” of
the i-House, the state governments have given it a tax abatement for any sales taxes.
333. Refer to Scenario 3.2. Clayton Homes is revising its marketing strategy for the i-House due to the recent recession.
Which of the following is the best action for promoting the i-House in the near future?
a. Emphasize the value of the i-House products.
b. Focus on the “green” qualities of the home and target environmentally-conscious individuals.
c. Significantly reduce advertising expenditures to create an exclusive image.
d. Decrease production until the economy improves.
e. Significantly reduce the prices on the company’s product offerings.
334. The best approach for a company to take when monitoring its competitors is
a. watching for increases and decreases in competitors’ prices and match them.
b. analyzing all information that is readily available about competitors.
c. sending employees to competitors’ offices and factories to observe their actions.
d. developing a system for gathering ongoing information about competitors.
e. reading important business publications such as The Wall Street Journal.
335. The strength of a person’s “buying power” depends on economic conditions and
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a. level of income.
b. size of resources that can be traded in an exchange.
c. how much a consumer will buy.
d. a consumer’s spending pattern.
e. levels of median wealth.
336. When a purchasing agent for Intel is offered a bribe by a silicon manufacturer salesperson,
a. a promotion-related ethical issue has been created.
b. the purchasing agent is free to accept the bribe without consequences.
c. an ethical issue primarily related to the pricing of products exists.
d. there is an ethical dilemma for the purchasing agent that is product related.
e. no ethical issue exists under these circumstances.
337. Several mothers in Atlanta wanted to get the message to their city government that they were not happy with the
nutritional quality of the food the city’s school system served their children, especially at the current cost for a lunch. One
of the mothers suggested they organize a protest at City Hall to get the lawmakers’ attention. Another mother in the group
suggested they all use their smart phones to go on Twitter and let others know the time and date of the protest. This small
group was surprised at the number of other parents who were equally concerned about the food program, and so this small
group decided to organize a flash mob. Over two hundred people showed up in a flash mob in front of City Hall – many of
them with signs and banners. These mothers and other individuals are engaging in
a. a publicity stunt.
b. their right to know.
c. consumerism.
d. lobbying.
e. political action.
338. Reese has recently joined PharmaTec, a large pharmaceutical firm, as a sales representative. During his interview, he
was surprised that no one wanted to talk about why the previous sales rep suddenly left the company. However, today he
has just been “briefed” on the recent lawsuit one of the physician’s has filed against PharmaTec concerning the lack of
information he received from the company about the negative effects of one of its cholesterol drugs. Reese’s sales
manager has demanded that if he comes across any documentation in the former sales representative’s office about visits
with the physician, that Reece is to not say anything to anyone and notify the manager immediately. Reese certainly
doesn’t want to jeopardize his new, and potentially profitable, job. He has identified four possible courses of action he
could take. He knows he should evaluate each possible action with which of the following criteria in order to choose the
one most appropriate?
a. its level of positive or negative impact on PharmaTec’s reputation
b. its potential to increase (or decrease) PharmaTec’s profit
c. whether the action is inherently right or wrong
d. whether he will be appreciated or unappreciated by his coworkers afterward
e. whether it will be courageous or cowardly on his part
339. Pharmaceutical companies have at times been accused of acting unethically by taking advantage of customers in the
area of
a. promotion.
b. pricing.
c. distribution.
d. product.
e. manufacturing.
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Scenario 3.1
Use the following to answer the questions.
Meyers’ Sporting Goods, a national chain, has been doing business with Soljur Sports, a manufacturer of skateboards, for
several years. Recently, it came to the attention of Meyers’ financial director that the average cost per Soljur Sports
skateboard had substantially increased over that of the previous year. The financial director asked the marketing
department if they knew what the Soljur skateboards cost at competing sporting goods stores, to see if they too were likely
hit with a higher cost.
The marketing department found that the Soljur skateboards were priced at $15 less in the competing store than at
Meyers. The financial director found that Soljur Sports was selling a similar number of skateboards to one of Meyers’
competitors for $10 less per skateboard. The attorney for Meyers’ Sporting Goods immediately filed a complaint with the
Federal Trade Commission.
340. Refer to Scenario 3.1. Suppose that the Soljur Sports company was actually discriminating against Meyer Sporting
Goods with its price increase. Which of the following acts prohibits this type of business behavior?
a. Sherman Antitrust
b. Wheeler-Lee
c. Robinson-Patman
d. Celler-Kefauver
e. Consumer Goods Pricing
341. Collecting information from secondary sources such as business, government, trade, and general-interest publications
plays an important role in
a. environmental analysis.
b. competitive forces.
c. environmental scanning.
d. procompetitive legislation
e. self-regulatory forces.
342. Which of the following statements about implementing an ethics and legal compliance program is false?
a. It requires open communication.
b. It requires consistent enforcement of standards from the code of conduct.
c. It rarely needs to be revised.
d. It requires taking reasonable steps in response to violations of standards.
e. It helps create a buffer zone on issues that could trigger serious legal complications for the company.
343.
As input for a presentation that you are jointly authoring, one of your marketing analysts submitted the following
summary of the characteristics of the four different types of market structures companies compete in:
Competitive Structure Number of Competitors Market Barriers to Entry
Monopolistic Competition Unlimited No Barriers
Monopoly Few Some Barriers
Pure Competition Many Few Barriers
Oligopoly One Many Barriers
With respect to the classifications of number of competitors and barriers to entry, which one of the following statements is
correct?