Principles of Marketing, 15e (Kotler/Armstrong)
Chapter 20 Sustainable Marketing: Social Responsibility and Ethics
1) The marketing concept is a philosophy of ________.
A) sales and profit maximization
B) customer value and mutual gain
C) serving short term interests over long term gains
D) serving the company’s interests over the consumers’
E) promotion value and company gain
2) ________ calls for meeting the present needs of consumers and businesses while also
preserving or enhancing the ability of future generations to meet their needs.
A) Sustainable marketing
B) Ambush marketing
C) Consumerism
D) Environmentalism
E) Strategic planning
3) The ________ is specifically focused on future company needs.
A) societal marketing concept
B) strategic planning concept
C) direct marketing concept
D) telemarketing concept
E) consumer business concept
4) The ________ is specifically focused on the future welfare of consumers.
A) strategic planning concept
B) direct marketing concept
C) societal marketing concept
D) consumer business concept
E) telemarketing concept
5) McDonald’s “Plan to Win” strategy has added healthy food options to its menu, phased out
traditional artery-clogging trans fats, launched a major multifaceted education campaign, and
addressed environmental issues. “Plan to Win” best exemplifies the ________.
A) sustainable marketing concept
B) direct marketing concept
C) mercantilism concept
D) strategic planning concept
E) consumer business concept
6) The BeautyShop, a manufacturer of skin care products, uses only plant based materials for its
cosmetic products. It supports several environmental protection movements and movements
defending human rights. This accounts for the company’s efforts to build good will and corporate
social responsibility. This exemplifies the ________.
A) consumer business concept
B) strategic planning concept
C) consumerism concept
D) direct marketing concept
E) sustainable marketing concept
7) Consumer advocates, government agencies, and other critics have accused marketing of
harming consumers through ________.
A) technological obsolescence
B) sales promotion tactics
C) viral marketing
D) anti-trust laws
E) planned obsolescence
8) Critics point to which of the following factors when they accuse marketing of harming
consumers through high prices?
A) quotas
B) nontrade tariffs
C) excessive markups
D) government taxes
E) changes in currency values
9) Critics charge that intermediaries ________.
A) are too few in number
B) are inefficient
C) provide only necessary services
D) underprice their services
E) are too competitive
10) A long-standing charge against intermediaries is that they mark up prices beyond the
________.
A) value of their services
B) delivery charges
C) going market price
D) promotion cost
E) resale value
11) Critics charge that promotion adds only ________ to the product.
A) functional value
B) psychological value
C) moderate value
D) strategic value
E) qualitative value
12) Marketers respond to charges of high advertising and promotion costs that unnecessarily
increase retail prices, by arguing that advertising and promotion ________.
A) support consumerism
B) standardize the product
C) add quality to the product
D) make consumers feel special
E) help increase competition in the market
13) Critics point out that in the stationery industry, a pen that costs fifty cents to make costs the
consumer $10 to buy. This is an example of ________.
A) deceptive advertising
B) redlining
C) excessive markups
D) high-pressure selling
E) shoddy products
14) Dan’s Drugstore sells consumers medicine for twenty dollars that only costs two dollars to
make. The store is guilty of ________.
A) deceptive promotion
B) deceptive packaging
C) false advertising
D) excessive markups
E) redlining
15) Cybertron Inc. was accused of deceptive pricing. Which of the following explains what most
likely occurred?
A) Cybertron refused to advertise sale prices in the local paper.
B) Cybertron sold only defective products at the advertised price.
C) Cybertron advertised a large price reduction from a phony high retail list price.
D) Cybertron misrepresented a product’s features in an ad.
E) Cybertron used misleading labeling.
16) Deceptive practices fall into three groups: pricing, promotion, and ________.
A) product
B) placement
C) packaging
D) publicity
E) service
17) Deceptive promotion includes practices such as misrepresenting the product’s ________.
A) price or packaging
B) features or performance
C) size or quantity
D) wholesale or retail price
E) packaged contents
18) Hart’s Department Store was accused of deceptive promotion. Which of the following best
explains what might have happened?
A) Hart’s refused to advertise sale prices in the local paper.
B) Hart’s advertised a bargain price on an out-of-stock product.
C) Hart’s advertised a large price reduction from a phony high retail list price.
D) Hart’s used misleading labeling on certain products.
E) Hart’s exaggerated its package contents through subtle design.
19) A major step in regulating “unfair or deceptive business acts and practices” was the
enactment of the ________ in 1938.
A) Robinson-Patman Act
B) Wheeler-Lea Act
C) Interstate Commerce Commissions
D) Taft-Hartley Act
E) Stamp Act
20) A federal agency ordered a fast food chain to stop running ads with false claims that its fried
chicken is compatible with certain weight loss programs. Which agency had the authority to
issue this order?
A) the Federal Trade Commission
B) the Food and Drug Administration
C) the Consumer Product Safety Commission
D) the Environmental Protection Agency
E) the American Marketing Association
21) In advertising, “puffery” is a term which refers to ________.
A) a straightforward promotional message
B) innocent exaggeration for effect
C) hidden advertising messages to consumers
D) subliminal appeals to consumers
E) value-added promotions
22) Which of the following advertising situations would LEAST likely be considered “puffery”?
A) Mr. Clean coming to a housewife’s rescue
B) instantly toned thighs and legs as a result of using the Thigh Master for only 15 minutes
C) children immediately growing into attractive adults as a result of drinking milk
D) a retired couple drinking a vitamin and protein shake and then going bicycling
E) a sleepy mom who wakes up to a gray day, drinks a cup of coffee, and then looks out her
window to see golden sunshine, beautiful flowers blooming, songbirds singing, and a rainbow on
the horizon
23) ________ involves persuading people to buy goods they had no thought of buying.
A) Sustainable marketing
B) High-pressure selling
C) Strategic marketing
D) Redlining
E) Reverse redlining
24) When critics argue that insurance, real estate, and used cars are sold, not bought, they are
accusing marketers of ________.
A) deceptive promotions
B) excessive markups
C) high-pressure selling
D) shoddy products
E) excessive materialism
25) In which of the following scenarios would high-pressure selling tactics typically be most
advantageous for marketers?
A) selling situations with long-time customers
B) selling situations with new customers with a high likelihood of becoming repeat customers
C) selling situations with a company’s most highly valued customers
D) selling situations with one-time customers
E) selling situations with dissatisfied customers
26) The success of the Tom Dennis Ford dealership has been built largely on return customers
and word-of-mouth recommendations. The majority of sales are made to customers who have
purchased a vehicle at the dealership before or who know someone who had a positive
experience of purchasing a vehicle there. The sales force at the Tom Dennis Ford dealership
most likely knows that using high-pressure selling is ineffective if the dealership wants to
________.
A) achieve short-term gains
B) move last year’s models
C) obey local and federal law
D) build long-term customer relationships
E) maintain a database of local customers
27) Recently, a class-action lawsuit was brought against BigBurger, a fast food chain, charging
that its food has contributed to the nationwide obesity epidemic. The suit was eventually
dismissed, but many critics continue to point out the health dangers of typical “fast food” menu
items. These critics are most likely concerned that the fast food industry has used ________.
A) high-pressure selling
B) deceptive promotions
C) deceptive pricing
D) deceptive packaging
E) harmful products
28) Critics have accused some producers of practicing ________ by using materials and
components that will break, wear, rust, or rot sooner than they should.
A) high-pressure selling
B) short-term planning
C) planned obsolescence
D) nonfunctional warranty
E) deceptive promotion
29) ________ refers to the practice of continually changing consumer concepts of acceptable
styles to encourage more and earlier buying.
A) Perceived obsolescence
B) Technological obsolescence
C) Bait-and-switch advertising
D) Functional obsolescence
E) High-pressure selling
30) Trendy Teens manufactures fashionable clothing and accessories for the tween and teen
female markets. New merchandise with a very different look is rolled out each season and
heavily promoted as the “must-have” style in a variety of media. This information indicates that
Trendy Teens is most likely to be criticized for ________.
A) deceptive promotions
B) shoddy products
C) high-pressure selling
D) poor service to disadvantaged consumers
E) perceived obsolescence
31) How do marketers respond to charges of planned obsolescence?
A) Consumers dislike constant style changes.
B) It promotes the all-American value of consumerism.
C) The product will eventually wear out anyway.
D) Most consumers are materialistic.
E) Consumers get tired of old goods.
32) The following quote best describes ________. “The marvels of modern technology include
the development of a soda can which, when discarded, will last forever, and a car, which when
properly cared for, will rust out in two or three years.”
A) planned obsolescence
B) product failure
C) deceptive promotions
D) deceptive packaging
E) excessive markups
33) Critics claim that companies in the ________ industries introduce planned streams of new
products that make older models obsolete, a form of planned obsolescence that harms
consumers.
A) car and truck
B) housing and construction
C) food and beverage
D) consumer electronics
E) financial and entertainment
34) When major chain retailers avoid placing stores in disadvantaged neighborhoods, they are
likely to be accused of the discriminatory practice of ________.
A) embargo
B) licensing
C) redlining
D) puffery
E) scrambled merchandising
35) Critics say marketing benefits ________ more than ________.
A) consumers; manufacturers
B) industry; consumers
C) stores; manufacturers
D) exporters; importers
E) independent sellers; chain stores
36) Marketers are most effective when they appeal to ________ rather than when they
________.
A) short-term needs; focus on long-term needs
B) teenagers; target older people
C) existing wants; attempt to create new ones
D) emotions; appeal to actual needs
E) the mass market; appeal to market segments
37) The high failure rate of new products shows that companies are not able to ________.
A) control demand
B) advertise enough
C) understand international laws
D) find outlets
E) identify consumer needs
38) It is most accurate to say that the recent recession has resulted in ________.
A) an overselling of private goods
B) a disbelief in the American dream
C) a decline in conspicuous spending
D) an increase in materialism
E) the elimination of false wants
39) The overselling of private goods results in ________.
A) cultural pollution
B) misdirected funding
C) social costs
D) materialism
E) opportunity expenses
40) Which of the following is one of the social costs associated with cars?
A) traffic congestion
B) water pollution
C) new highways
D) new automobile models
E) cleaner roads
41) TerraPass is a company that offers consumers the opportunity to buy carbon offsets, which
are contributions to projects that combat global warming by reducing carbon emissions.
TerraPass offers contribution packages for driving, flying, and home energy use. Through
TerraPass, consumers can pay some of the ________ costs of their private goods and services.
A) promotional
B) safety
C) health
D) distribution
E) social
42) Which of the following leads to cultural pollution?
A) commercial noise
B) air pollution
C) language barriers
D) inflation
E) redlining
43) Which of the following is an example of cultural pollution?
A) gasoline shortages
B) congestion tolls
C) street signs in cities
D) overpasses in suburban areas
E) billboards marring beautiful scenery
44) In response to charges of ________, marketers point out that advertising makes much of
television and radio free to users and also keeps down the cost of magazines and newspapers.
A) deceptive pricing
B) creating false wants
C) creating materialism
D) high promotion costs
E) cultural pollution
45) Karl Harris, a marketing critic, is concerned about the pervasiveness of marketing. He points
out that advertising messages are everywhere, from Web sites and e-mails to unwanted direct
mail and catalogs to television commercials and product tie-ins to billboards and store signage.
Karl is concerned about ________.
A) high packaging costs
B) cultural pollution
C) deceptive practices
D) false wants and too much materialism
E) the balance between private goods and social goods
46) Critics claim that firms are harmed and competition is reduced when companies expand by
________.
A) developing their own new products
B) diversifying into new industries
C) acquiring competitors
D) developing new markets
E) initiating joint-ventures
47) Critics argue that large marketing companies use patents and heavy promotion spending to
________.
A) acquire smaller companies
B) bear the social costs of their operations
C) bar new companies from entering an industry
D) achieve economies of scale
E) offset cultural pollution
48) How are acquisitions good for society?
A) Acquisitions eliminate barriers to entry.
B) Acquisitions require little government oversight.
C) An acquiring company may improve the efficiency of an acquired company.
D) An industry may become less competitive after an acquisition.
E) The acquisition may result in higher costs, leading to higher prices for consumers.
49) Setting prices below cost, threatening to cut off business with suppliers, and discouraging the
purchase of a competitor’s products are all examples of ________.
A) oligopolistic competition
B) social costs
C) predatory competition
D) acquisitions
E) cultural pollution
50) The two major citizen movements to keep businesses in line are environmentalism and
________.
A) consumerism
B) protectionism
C) liberalism
D) capitalism
E) materialism
51) ________ is an organized movement of citizens and government agencies to improve the
rights and power of buyers in relation to sellers.
A) Environmentalism
B) Protectionism
C) Liberalism
D) Consumerism
E) Capitalism
52) Which of the following is a traditional sellers’ right?
A) the right to create a monopoly in the market
B) the right to acquire competitors to prevent competition
C) the right to promote any product to any audience
D) the right to add additional taxes if necessary
E) the right to introduce any product in any size and style
53) Which of the following is a traditional buyers’ right?
A) the right to resell the product
B) the right not to buy a product that is offered for sale
C) the right not to pay any taxes included in the final price
D) the right to exchange the product if it is of the wrong size or style
E) the right to demand a discount on the product
54) Consumer advocates call for which of the following additional consumer rights?
A) the right to be protected from unwanted marketing messages
B) the right to be well informed about important product aspects
C) the right not to pay any taxes included in the final price
D) the right to resell the product
E) the right to exchange the product if it is of the wrong size or style
55) The proposed right to ________ includes the right to know the unit pricing, the ingredients in
a product, the nutritional value of foods, product freshness, and the true benefits of a product.
A) charge any price for the product
B) be protected against questionable products
C) influence products and marketing practices in ways that will improve “quality of life”
D) expect the product to perform as claimed
E) be well informed about a product
56) Proposals related to ________ include controlling the ingredients that go into certain
products and packaging as well as reducing the level of advertising “noise.”
A) the right to be informed
B) consumer protection
C) preserving the world for future consumption
D) the right to charge any price for the product
E) quality of life
57) Proposals related to ________ include promoting the use of sustainable ingredients,
recycling and reducing solid wastes, and managing energy consumption.
A) the right to be informed
B) consumer protection
C) preserving the world for future consumption
D) quality of life
E) the right to charge any price for the product
58) ________ is an organized movement of concerned citizens, businesses, and government
agencies to protect and improve people’s current and future living conditions.
A) Consumerism
B) Environmentalism
C) Protectionism
D) Socialism
E) Aestheticism
59) Environmentalists assert that the marketing system’s goal should be to maximize ________.
A) sales and profits
B) consumer satisfaction
C) life quality
D) consumer choice
E) consumption
60) ________ is a management approach that involves developing strategies that both preserve
the environment and produce profits for the company.
A) Aesthetic consumerism
B) Profitable environmentalism
C) Environmental sustainability
D) Sustainable ecology
E) Corporate marketing