Name:
Class:
Date:
Copyright Cengage Learning. Powered by Cognero.
Page 1
1. Consumers who engage in retail borrowing decrease product costs.
a.
True
b.
False
ANSWER:
False
2. It is when societal goals are out of reach given the accepted means of achieving them that deviance occurs.
a.
True
b.
False
ANSWER:
True
3. The door-in–the-face technique is based on the self-perception theory, which proposes that consumers use perceptions
of their own actions when forming attitudes.
a.
True
b.
False
ANSWER:
False
4. Deficient products are products that offer high hedonic value, but do not offer any utilitarian value.
a.
True
b.
False
ANSWER:
False
5. Public criticism of marketing strategies tends to be most intense when a marketer targets vulnerable consumer groups
with harmful products.
a.
True
b.
False
ANSWER:
True
6. The societal marketing concept considers the needs of society along with the wants and needs of individual consumers.
a.
True
b.
False
ANSWER:
True
7. The Wheeler–Lea Act of 1938 prohibits restraint of free trade.
a.
True
b.
False
ANSWER:
False
8. The Child Protection Act (1966) establishes rules governing online marketing practices aimed at children.
a.
True
b.
False
ANSWER:
False
9. Consumer misbehavior expedites the flow of consumption activities.
a.
True
b.
False
Name:
Class:
Date:
Copyright Cengage Learning. Powered by Cognero.
Page 2
ANSWER:
False
10. The Clayton Act (1914) prevents mortgage foreclosures and enhances mortgage availability.
a.
True
b.
False
ANSWER:
False
11. Teleological evaluations focus on how people accomplish their goals.
a.
True
b.
False
ANSWER:
False
12. Marketing a product can lead to pollution.
a.
True
b.
False
ANSWER:
True
13. Contractualism reflects beliefs about the social acceptability of an act.
a.
True
b.
False
ANSWER:
False
14. The practice of managing and intentionally setting discontinue dates for products is known as price gouging.
a.
True
b.
False
ANSWER:
False
15. Theodore Levitt’s article “Marketing Myopia” brought about a new perspective that argued that businesses should
define themselves in terms of the products that they make rather than in terms of the consumer needs they satisfy.
a.
True
b.
False
ANSWER:
False
16. Consumption of a product does not lead to pollution.
a.
True
b.
False
ANSWER:
False
17. College students who have higher self-actualization values generally have lower attitudes toward binge drinking,
whereas students who value social affiliation tend to have more positive attitudes toward the behavior.
a.
True
b.
False
ANSWER:
True
18. Shoplifting is a consumer problem behavior if it is not a medically diagnosed condition called kleptomania.
Name:
Class:
Date:
Copyright Cengage Learning. Powered by Cognero.
Page 3
a.
True
b.
False
ANSWER:
True
19. Kleptomania is generally triggered by a strong compulsion and the inability of the consumer to fight the urge to
shoplift.
a.
True
b.
False
ANSWER:
True
20. Morals are personal standards and beliefs that are used to guide individual action.
a.
True
b.
False
ANSWER:
True
21. To have a sales orientation means that a salesperson is more focused on long-term customer satisfaction and
relationship development than on immediate sale and short-term results.
a.
True
b.
False
ANSWER:
False
22. Federal regulatory bodies such as the Federal Trade Commission (FTC) and the Food and Drug Administration
monitor exchanges that take place between consumers and marketers.
a.
True
b.
False
ANSWER:
True
23. Compulsive shoppers tend to focus on the mental highs associated with “the hunt,” whereas compulsive buyers feel
the need to buy.
a.
True
b.
False
ANSWER:
True
24. In the context of products liability, with strict liability, an injured consumer would have to show that the firm could
foresee a potential injury that might occur and then decided not to act on that knowledge.
a.
True
b.
False
ANSWER:
False
25. Punitive damages are intended to cover costs incurred by a consumer due to an injury, and compensatory damages are
intended to punish a company for injuries.
a.
True
b.
False
ANSWER:
False
26. Consumer misbehavior and consumer problem behavior are synonymous and can be used interchangeably.
Name:
Class:
Date:
Copyright Cengage Learning. Powered by Cognero.
Page 4
a.
True
b.
False
ANSWER:
False
27. Deontological evaluations focus on the consequences of behaviors and the individual’s assessment of those
consequences.
a.
True
b.
False
ANSWER:
False
28. Stress and anger can be the motivational factors for shoplifting.
a.
True
b.
False
ANSWER:
True
29. In consumer misbehavior, consumers seek to maximize the benefits they receive from an action while maximizing
their own costs.
a.
True
b.
False
ANSWER:
False
30. The foot-in-the-door technique is based on the reciprocity norm,which states that individuals are motivated to give
back to those who have given them something.
a.
True
b.
False
ANSWER:
False
31. In the context of products liability, with negligence, consumers can win a legal action against a firm if they can
demonstrate that an injury occurred because of a faulty product whether or not the firm foresaw the impending effect of
the fault.
a.
True
b.
False
ANSWER:
False
32. Research indicates that consumers are more likely to purchase products when disclaimers are presented very quickly,
especially for unknown or untrusted brands.
a.
True
b.
False
ANSWER:
False
33. Salutary products offer high hedonic value, but low utilitarian value.
a.
True
b.
False
ANSWER:
False
34. Strategic initiatives of a firm include strategically engaging in socially responsible activities in order to increase the
Name:
Class:
Date:
Copyright Cengage Learning. Powered by Cognero.
Page 5
value of the firm.
a.
True
b.
False
ANSWER:
True
35. The Consumer Bill of Rights, which today stands as a foundation of the consumerism movement, was introduced in
1962.
a.
True
b.
False
ANSWER:
True
36. Consumers tend to view the act of illegal downloading as less morally ethical and socially acceptable when the
motivation for the act is primarily based on hedonic value than when it is based on utilitarian value.
a.
True
b.
False
ANSWER:
False
37. Which of the following is an example of consumer misbehavior?
a.
Overeating
b.
Problem gambling
c.
Compulsive shopping
d.
Cyberbullying
ANSWER:
d
38. The residents of Caister were affected by a hurricane. Glide, a manufacturer of laundry detergent, set up mobile
stations to provide them laundry service for free. In this case, which of the following duties did the laundry detergent
manufacturer fulfill?
a.
Ethical duties
b.
Altruistic duties
c.
Regulatory duties
d.
Obligatory duties
ANSWER:
b
39. Henry buys a shirt and wears it to a party. His friends tell him that the shirt does not suit him. Henry considers
returning the shirt for a refund but is unsure. He asks himself if returning the product after use is right. In this scenario,
which of the following types of ethical evaluation is Henry involved in?
a.
Consequential evaluation
b.
Deontological evaluation
c.
Analogical evaluation
d.
Teleological evaluation
ANSWER:
b
40. Which of the following is true of price gouging?
a.
Price gouging is a natural phenomenon.
b.
Laws limit price gouging between 50–60 percent.
Name:
Class:
Date:
Copyright Cengage Learning. Powered by Cognero.
Page 6
c.
State officials warn against price gouging.
d.
Change in government leads to price gouging.
ANSWER:
c
41. Jane, who recently suffered a minor cardiac arrest, has been advised by her cardiologist to avoid smoking and
drinking. However, despite her best efforts, she is unable to resist the temptation to smoke or drink as she is too dependent
on them and experiences withdrawal symptoms whenever she tries to quit. In this scenario, which of the following
consumer problem behaviors is Jane exhibiting?
a.
Binge eating
b.
Planned obsolescence
c.
Culture jamming
d.
Addictive consumption
ANSWER:
d
42. In the context of motivations of consumer misbehavior, differential association explains why:
a.
the U.S. culture places a great deal of emphasis on attaining material possessions and “getting ahead.”
b.
stealing from large corporations may seem less severe than stealing from a family-owned retailer.
c.
groups of people replace one set of acceptable norms with another set that others view as unacceptable.
d.
drug addiction is more of a consumer problem behavior than a consumer misbehavior.
ANSWER:
c
43. Sarah is a university student active on a social networking website. Some of her classmates continually attempt to ruin
her reputation with regular posts of unwarranted and unflattering details of her personal life. In this scenario, the
misbehavior of Sarah’s classmates can be best described as _____.
a.
culture jamming
b.
sexting
c.
cyberbullying
d.
web spamming
ANSWER:
c
44. Which of the following types of ethical evaluations focuses on the consequences of behaviors and the individual’s
assessment of those consequences?
a.
Retrospective evaluations
b.
Teleological evaluations
c.
Deontological evaluations
d.
Analogical evaluations
ANSWER:
b
45. A physiological dependency on the consumption of a product is known as _____.
a.
commodity fetishism
b.
commodity narcissism
c.
impulsive consumption
d.
addictive consumption
ANSWER:
d
Name:
Class:
Date:
Copyright Cengage Learning. Powered by Cognero.
Page 7
46. Products that deliver high utilitarian and hedonic value and that benefit both consumers and society in the long run are
called _____.
a.
salutary products
b.
pleasing products
c.
desirable products
d.
deficient products
ANSWER:
c
47. StarSip Inc. manufactures nutritional beverages for children. The company sponsors free medical examination for
children in various schools. This way, it not only projects its care for children’s health but also promotes the company’s
brand name. In the context of social responsibility, StarSip is illustrating _____.
a.
ethical duty
b.
altruistic duty
c.
green initiative
d.
strategic initiative
ANSWER:
d
48. Products that provide hedonic value to consumers but may be harmful in the long run are known as _____.
a.
deficient products
b.
salutary products
c.
pleasing products
d.
desirable products
ANSWER:
c
49. Sam loves music and collects songs of all genres. He accesses unregistered websites to download latest songs,
compiles them, and shares them with his friends. Sam believes that his actions are not illegal. In the context of the
components of moral beliefs, which of the following does Sam’s belief demonstrate?
a.
Contractualism
b.
Rationalism
c.
Relativism
d.
Utilitarianism
ANSWER:
a
50. Which of the following best describes chronic, repetitive purchasing behaviors that are in response to negative events
or feelings?
a.
Window shopping
b.
Compulsive buying
c.
Addictive consumption
d.
Impulsive purchasing
ANSWER:
b
51. _____ refer to societal and professional standards of right and fair practices that are expected of marketing managers
as they develop and implement marketing strategies.
a.
Marketing tactics
b.
Marketing ethics
Name:
Class:
Date:
Copyright Cengage Learning. Powered by Cognero.
Page 8
c.
Marketing concepts
d.
Strategic objectives
ANSWER:
b
52. Carbonated drinks loaded with sugar and having little nutritional value are examples of _____.
a.
deficient products
b.
desirable products
c.
salutary products
d.
pleasing products
ANSWER:
d
53. Cause-related marketing activities involve a company engaging in socially responsible activities in order to increase
the value of the firm, such as a company donating to a cause every time a consumer purchases its product. These types of
marketing activities would most likely be categorized as an organization’s _____.
a.
ethical duties
b.
altruistic duties
c.
strategic initiatives
d.
partnership initiatives
ANSWER:
c
54. NeoGen Cell Phones had introduced a sleek cell phone two years ago. After gaining immense profit from this model,
the company decides to discontinue the model and introduce a better version. However, many customers express their
dissatisfaction over the decision of NeoGen as it is very user friendly. In this scenario, NeoGen Cell Phones’s decision
demonstrates _____.
a.
forward compatibility
b.
deceptive advertising
c.
market penetration
d.
planned obsolescence
ANSWER:
d
55. Martin tells his friend Nick that he wants to watch a movie that is currently screening in theaters. Nick tells Martin
that he has illegally downloaded the movie from the Internet and offers to share it with Martin. Martin declines the offer
as he believes that it is an unjust behavior. In this scenario, Martin’s decision best represents _____.
a.
moral equity
b.
ethnocentrism
c.
contractualism
d.
strict liability
ANSWER:
a
56. The Consumer Bill of Rights includes the right to:
a.
discontinue a product in the market.
b.
fix the price of a commodity.
c.
bargain over the price of a commodity.
d.
redress and to be heard.
ANSWER:
d
Name:
Class:
Date:
Copyright Cengage Learning. Powered by Cognero.
Page 9
57. Compulsive shopping is also referred to as _____.
a.
logorrhea
b.
oniomania
c.
anomie
d.
kleptomania
ANSWER:
b
58. Mark illegally downloads music and movies from the Internet because he believes that the pleasure of watching his
favorite movies free of cost outweighs the risk of getting caught. This is an example of consumer misbehavior most likely
motivated by _____.
a.
unfulfilled aspirations
b.
consumerism
c.
differential association
d.
opportunism
ANSWER:
d
59. The foot-in-the-door selling technique is based on _____.
a.
belief congruence theory
b.
self-perception theory
c.
expectation theory
d.
equity theory
ANSWER:
b
60. Taking nude photos of oneself and sending them to another person via cell phone is called _____.
a.
sexting
b.
leeting
c.
hosting
d.
posing
ANSWER:
a
61. Which of the following is an example of a consumer problem behavior?
a.
Mike, a teenager, spending a lot of time on the Internet bullying people
b.
Leah using a stolen credit card for shopping
c.
Johnathan eating alone because he feels guilty about his binge-eating habits and gets worked up when waiters
attend to him
d.
Philip complaining about the quality of the pizza that he ordered even though there is nothing wrong with the
pizza
ANSWER:
c
62. _____ is the act of planning the premature discontinuance of product models that perform adequately.
a.
Media scheduling
b.
Differential association
c.
Product diversification
d.
Planned obsolescence
Name:
Class:
Date:
Copyright Cengage Learning. Powered by Cognero.
Page 10
ANSWER:
d
63. Identify a consumer problem behavior.
a.
Illegitimate complaining
b.
Compulsive shopping
c.
Product misuse
d.
Abusive behavior
ANSWER:
b
64. Benjamin often engages in shoplifting. He acknowledges that he does it because he gets a feeling of exhilaration when
he realizes that he can get away with it. In this case, which of the following is the motivation for Benjamin’s misbehavior?
a.
Unfulfilled aspirations
b.
Thrill-seeking nature
c.
Long-lasting needs
d.
Pathological socialization
ANSWER:
b
65. Myrna is an anti-capitalist. She thinks that capitalism feeds consumers’ hedonistic desires, pollutes the earth, and
makes excessive profits. One evening, on her way back from work, Myrna throws stones at a popular retailer’s window to
express her rage over capitalism. In this scenario, which of the following is the motivation for Myrna’s misbehavior?
a.
Unfulfilled aspirations
b.
Consumerism
c.
Pathological socialization
d.
Opportunism
ANSWER:
c
66. Marcie is a salesperson for a cosmetics manufacturer. She typically begins her sales presentation by approaching
potential customers with very expensive products even though she knows most of them will refuse such expensive
cosmetics. The moment she hears a refusal from a customer, Marcie feigns a hurt expression. Customers generally feel
bad about hurting salespersons and feel obliged to at least listen to what they have to say. That gives Marcie a chance to
introduce her customers to other less expensive products. Marcie’s sales method is an example of the _____.
a.
foot-in-the-door technique
b.
door-in-the-face technique
c.
even-a-penny-will-help technique
d.
challenge-the-status-quo technique
ANSWER:
b
67. Penny buys a dress from Dolly’s to wear to her friend’s wedding. She wears the dress without removing the price tag.
A day after the wedding, she returns the dress saying that the dress is too tight and gets a refund. In this scenario, Penny’s
behavior is an example of _____.
a.
compulsive buying
b.
retail borrowing
c.
addictive consumption
d.
illicit sharing
ANSWER:
b
Name:
Class:
Date:
Copyright Cengage Learning. Powered by Cognero.
Page 11
68. Which of the following is used to describe the activities of various groups to protect basic rights of consumers?
a.
Consumer equilibrium
b.
Consumer discretionary
c.
Consumerization
d.
Consumerism
ANSWER:
d
69. Anne is a 24-year-old lady who just got a divorce. She frequently goes on shopping sprees to divert her thoughts. She
feels the need to buy new products and experiences a sense of pleasure when she uses them. Anne claims that it helps her
cope with her current emotional state. In the context of consumer problem behavior, which of the following does Anne
demonstrate?
a.
Impulsive shopping
b.
Window shopping
c.
Passive consumption
d.
Compulsive buying
ANSWER:
d
70. Clark, a university student, pays off his student loan by working part-time. He wants to buy the latest model of a
particular cell phone in the market. However, he is unable to afford the phone because of his student loan dues. So, he
buys the phone at a throwaway price from the black market. Which of the following is most likely the motivation for
Clark’s misbehavior?
a.
Unfulfilled aspirations
b.
Thrill-seeking attitude
c.
Differential associations
d.
Pathological socialization
ANSWER:
a
71. An automobile manufacturing company introduced a new version of an electric car. The car is not only fuel efficient
but also a pleasure to drive. It won the International Engine of the Year Award for the best fuel economy in the green
engine category. Given the car’s features, it can be classified as a _____.
a.
salutary product
b.
nondurable product
c.
pleasing product
d.
desirable product
ANSWER:
d
72. In consumer behavior, _____ refer to convictions about the perceived ethicality of behaviors.
a.
differential associations
b.
moral beliefs
c.
teleological evaluations
d.
ethical investments
ANSWER:
b
73. Which of the following provides the Federal Trade Commission with jurisdiction over misleading or false advertising?
a.
The Sherman Antitrust Act
Name:
Class:
Date:
Copyright Cengage Learning. Powered by Cognero.
Page 12
b.
The Clayton Act
c.
The Wheeler–Lea Act
d.
The Gramm–Leach–Bliley Act
ANSWER:
c
74. The purpose of the Ensuring Patient Access and Effective Drug Enforcement Act of 2016 is to:
a.
clarify standards to ensure prescription drugs are available to legitimate patients and not diverted to illicit use.
b.
give marketers the right to choose the amount of packaging and content information to be printed on processed
drugs.
c.
protect public health by giving the Food and Drug Administration certain authority to regulate the tobacco
industry.
d.
ensure that no drug that has passed its expiry date is sold in the U.S. market and emphasize that such acts are
punishable.
ANSWER:
a
75. Which of the following disorders is characterized by the consumption of large amounts of food while feeling a general
loss of control over food intake?
a.
Binge eating disorder
b.
Anorexia
c.
Insomnia
d.
Night eating syndrome
ANSWER:
a
76. Lisa met with an accident while driving her brand new car. She was heavily bruised and sustained a fracture. The
impact of the accident was huge because the airbag in the car failed to deploy. Lisa filed a lawsuit against the car
manufacturer and got $10 million for her medical care and damages incurred. In this scenario, the car manufacturer paid
Lisa _____.
a.
punitive damages
b.
compensatory damages
c.
nominal damages
d.
contemptuous damages
ANSWER:
b
77. Gerald buys a new beard trimmer. However, once he starts using it, he finds out that the trimmer has no settings to
adjust the length of beard he wants to trim. Unsatisfied with the product, he considers returning it. Gerald decides that he
would return the trimmer and buy another one that suits his requirement. In this scenario, which of the following types of
ethical evaluation does Gerald demonstrate?
a.
Retrospective evaluation
b.
Deontological evaluation
c.
Analogical evaluation
d.
Teleological evaluation
ANSWER:
d
78. Martin and his friends are football fanatics. Every time they watch a match and the referees’ decisions are unfavorable,
they become verbally abusive, loud, and obnoxious. They also utter profanities at the referees and players and get into
frequent squabbles with fellow spectators. In this case, which of the following types of misbehavior do Martin and his
Name:
Class:
Date:
Copyright Cengage Learning. Powered by Cognero.
Page 13
friends demonstrate?
a.
Dysfunctional fan behavior
b.
Consumer problem behavior
c.
Culture jamming
d.
Pathological socialization
ANSWER:
a
79. Wilma is a victim of the recent trend of achieving a size zero. Although she is a regular size 6, she is desperate to lose
weight. Wilma starves herself to attain a size zero figure. In this case, Wilma is most likely suffering from _____.
a.
dysphagia
b.
anorexia
c.
bulimia
d.
pica
ANSWER:
b
80. The marketing technique in which consumers are completely unaware that they are being marketed to is called _____.
a.
ambush marketing
b.
affinity marketing
c.
stealth marketing
d.
cloud marketing
ANSWER:
c
81. Which of the following types of ethical evaluations focuses on specific actions?
a.
Consequential evaluations
b.
Teleological evaluations
c.
Deontological evaluations
d.
Analogical evaluations
ANSWER:
c
82. Which of the following is considered more harmful and less vulnerable?
a.
Low-fat fast-food item marketed to above-average income segment consumers
b.
High-interest-rate credit cards marketed to above-average income segment consumers
c.
Low-nicotine cigarette marketed to undereducated consumers
d.
High-alcohol-content drink marketed to consumers with disproportionate levels of alcohol problems
ANSWER:
b
83. Tom is a person who generally behaves in line with societal expectations. One day, he waited in a queue to book
tickets for a music concert. Although there was a long queue, the ticket issuer left the counter for a break. Tom became so
impatient and furious that he started shouting at the event manager. In this scenario, which of the following motivations
best explains Tom’s misbehavior?
a.
Lack of moral constraints
b.
Differential association
c.
Pathological socialization
d.
Provocative situational factors
Name:
Class:
Date:
Copyright Cengage Learning. Powered by Cognero.
Page 14
ANSWER:
d
84. As a problem behavior, shoplifting can sometimes be clinically diagnosed as _____.
a.
pyromania
b.
oniomania
c.
necromania
d.
kleptomania
ANSWER:
d
85. Yin invited her friend Nina home for tea. While Yin was serving tea, Nina noticed that she was pouring it in such a
way that the spout of the teapot was not pointed directly at Nina. Yin did this because the act of pointing the spout of a
teapot at the person being served is considered impolite in her culture. Nina believes that it is a good gesture and it makes
a guest feel respected. In the context of components of moral beliefs, which of the following does Nina’s acceptability of
Yin’s behavior demonstrate?
a.
Rationalism
b.
Contractualism
c.
Relativism
d.
Utilitarianism
ANSWER:
c
86. Bart tends to show his disagreement toward certain products by changing catchphrases of advertisements on
billboards. In this scenario, which of the following types of consumer misbehavior does Bart demonstrate?
a.
Consumer fraud
b.
Product misuse
c.
Differential association
d.
Culture jamming
ANSWER:
d
87. Purchasing and using a product before returning it for a refund is a practice known as _____.
a.
differential association
b.
retail borrowing
c.
addictive consumption
d.
illicit sharing
ANSWER:
b
88. The “I’m working for you!” selling technique relies on _____.
a.
belief congruence theory
b.
self-perception theory
c.
balance theory
d.
equity theory
ANSWER:
d
89. Which of the following is an example of price gouging?
a.
Retailers increasing the price of vegetables after a torrential rain
b.
Marketers discontinuing a model of food processor as its sales price yielded low profit
Name:
Class:
Date:
manufacturing processes and environmental protectionism, acting quickly when product defects are detected,
ways in which companies can exhibit their social responsibility. Basically, the actions described fall into one
c.
Retailers decreasing the price of milk products after a white revolution
d.
Marketers releasing improved versions of food products that haven’t been in the market for long
ANSWER:
a
90. Clady’s hair conditioner is advertised as a product that ensures pin-straight hair. However, the product just softens the
hair like any other hair conditioner. This product promotion is an example of _____.
a.
scam
b.
puffery
c.
surrogate advertising
d.
culture jamming
ANSWER:
b
91. Which of the following eating disorders involves starving one’s body in the pursuit of thinness?
a.
Binge eating disorder
b.
Bulimia
c.
Anorexia
d.
Night eating syndrome
ANSWER:
c
92. What are the concerns associated with marketing to children? Which acts were passed to regulate the issues related to
marketing to children?
ANSWER:
Answers will vary. Two important issues arise with marketing to children. First, there is the question of
whether children can understand that some marketing messages do not offer literal interpretations of the real
world. For example, many toys are shown in unrealistic settings. Second, the quantity of marketing messages
to which children are exposed can be called into question. It has been estimated that the average American
child sees more than 40,000 television commercials per year—or an average of over 100 commercials per
day. The Children’s Television Act was put into effect to limit the amount of advertising to which children
are exposed, with a limit of 10.5 minutes of commercials per hour on weekends and 12 minutes on
weekdays. Even with these limitations, approximately $17 billion is spent each year by advertisers targeting
the children’s market.
93. In the United States, which are the organizations responsible for regulating marketing activities?
ANSWER:
Answers will vary. Many federal, state, and local laws were established in order to protect consumers from
marketer misbehavior. Federal regulatory bodies such as the Federal Trade Commission (FTC) and the Food
and Drug Administration monitor exchanges that take place between consumers and marketers. Other
groups, such as the Better Business Bureau and the American Association of Advertising Agencies (AAAA),
also play important roles in monitoring marketing activities. Although these groups attempt to bring fairness
to the marketplace, it is ultimately up to managers to ensure that the actions of their firms fall within
generally accepted business guidelines.
94. What is corporate social responsibility (CSR)? Describe the ways in which companies can be socially responsible.
ANSWER:
Answers will vary. Corporate social responsibility (CSR) may be defined as an organization’s activities and
status related to its societal obligations. Due to increased pressure from consumer groups, companies are
finding that they must be socially responsible.There are many ways in which companies can be responsible.
Name:
Class:
Date:
Name:
Class:
Date:
ANSWER:
Answers will vary. Several businesses were found guilty of price gouging after Hurricane Sandy in the
northeastern United States. Later, following the devastating tornadoes of 2013 in Oklahoma, one retailer was
allegedly selling bottle water for $40 per case. More recently, complaints of price gouging occurred after the
historic floods in Texas during the spring of 2016. While some argue that the laws amount to price controls,
there is no doubt that gouging ultimately harms consumers.