Principles of Marketing, 17e, Global Edition (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) The marketing concept focuses on meeting the company’s short-term sales, ________, and
profit needs, though that doesn’t always serve the future best interests of either customers or the
business.
A) market share
B) customer value
C) growth
D) competitive advantages
E) manufacturing productivity
3) ________ 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
4) The ________ concept is specifically focused on future company needs.
A) societal marketing
B) strategic planning
C) direct marketing
D) telemarketing
E) consumer business
5) According to the text, McDonald’s was criticized for all of the following EXCEPT
________.
A) the sizable environmental footprint of its global operations
B) wasteful packaging and solid waste creation
C) inefficient energy use in its stores
D) marketing tasty fast foods
E) contributing to the obesity epidemic
6) The ________ concept is specifically focused on the future welfare of consumers.
A) strategic planning
B) direct marketing
C) societal marketing
D) consumer business
E) telemarketing
7) The ________ concept calls for socially and environmentally responsible actions that meet
both the immediate and future needs of customers and the company.
A) societal marketing
B) business-to-business
C) direct marketing
D) strategic planning
E) sustainable marketing
8) McDonald’s “Commitments to Offer Improved Nutrition Choices” 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. This strategy best
exemplifies the ________ concept.
A) sustainable marketing
B) direct marketing
C) mercantilism
D) strategic planning
E) consumer business
9) 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 ________ concept.
A) consumer business
B) strategic planning
C) consumerism
D) direct marketing
E) sustainable marketing
10) Sustainable marketing includes all of the following EXCEPT ________.
A) going beyond caring for the needs and wants of today’s customers
B) focusing on profits and return to shareholders and employees above all else
C) having concern for tomorrow’s customers in ensuring the success of the business,
employees, and the broader world
D) pursuing a mission of shared value and triple bottom line: people, planet, profits
E) provides context for companies to engage customers and build profitable relationships with
them by creating value for customers in order to capture value from customers in return, now
and in the future.
11) Societal marketing calls for meeting the present needs of consumers and businesses while
also preserving or enhancing the ability of future generations to meet their needs.
12) Sustainable marketing requires a smooth-functioning marketing system in which
consumers, companies, public policy makers, and others work together to ensure socially and
environmentally responsible marketing actions.
13) Briefly define the four marketing concepts.
14) 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
15) 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
16) 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
17) When criticized about the value of intermediaries, marketers and resellers respond that
intermediaries ________.
A) are too few in number
B) are inefficient
C) provide only necessary services that must be provided by someone
D) actually underprice their services
E) are too competitive and difficult to work with
18) A longstanding 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
19) Critics charge that promotion adds only ________ to a product.
A) functional value
B) psychological value
C) moderate value
D) strategic value
E) qualitative value
20) 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) provide information about a product
E) help increase competition in the market
21) Marketers respond to criticism about the value of promotion by showing that ________.
A) brand name products cost more
B) functional value also matters
C) development costs should be covered in the price of the product
D) consumers want and are willing to pay more for products that provide psychological
benefits
E) the services provided are demanded by customers
22) 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
23) Dan’s Drugstore sells medicine to consumers for $20 that only costs $2 to produce. Critics
accuse Dan’s of ________.
A) deceptive promotion
B) deceptive packaging
C) false advertising
D) excessive markups
E) redlining
24) 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.
25) Deceptive practices fall into three groups: pricing, promotion, and ________.
A) product
B) placement
C) packaging
D) publicity
E) service
26) 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
27) 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.
28) 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
29) In advertising, puffery is a term that 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
30) 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
31) ________ 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
32) 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
33) 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
34) 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
previously purchased a vehicle at the dealership 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
35) 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 provided
________.
A) high-pressure selling
B) deceptive promotions
C) deceptive pricing
D) deceptive packaging
E) harmful products
36) Most companies are unlikely to intentionally provide shoddy, harmful, or unsafe products
because ________.
A) they won’t face liability lawsuits and expensive awards for damages
B) they want to develop long-term relationships with their customers
C) they know that customers will shrug off errors for a while
D) they are confident they can appease consumer groups and regulators
E) it costs more to provide quality products
37) 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
38) ________ 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
39) Critics say marketing benefits ________ more than ________.
A) consumers; manufacturers
B) industry; consumers
C) stores; manufacturers
D) exporters; importers
E) independent sellers; chain stores
40) 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
41) 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.
42) 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
43) 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
44) 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
45) 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
46) 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
47) It is most accurate to say that the recession of 2008/2009 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
48) The overselling of private goods results in ________ as they require more public services
that may not be available.
A) cultural pollution
B) misdirected funding
C) social costs
D) materialism
E) opportunity expenses
49) 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
50) 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
51) Which of the following leads to cultural pollution?
A) commercial noise
B) air pollution
C) language barriers
D) inflation
E) redlining
52) 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
53) In response to charges of ________, marketers point out that because of ads, many
television and radio sites are free to users and also keep down the cost of magazines and
newspapers.
A) deceptive pricing
B) creating false wants
C) creating materialism
D) high promotion costs
E) cultural pollution
54) 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
55) 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
56) 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
57) 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.
58) Critics charge that a company’s marketing practices can harm other companies and reduce
competition. One of the problems critics identified is ________.
A) pollution
B) barriers to entry
C) unfair discrimination
D) bait-and-switch advertising
E) fair packaging and labeling
59) Which of the following is a product decision that may be called into question under the
law?
A) stealing trade secrets
B) misrepresenting
C) patent protection
D) unfair discrimination
E) excessive cost
60) 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
Refer to the scenario below to answer the following question(s).
Bryant and Anne are the owners of the Good Green Grocer, a small but successful chain of
organic food stores. The organic food sold by Good Green Grocer is of good quality. Also, it is
tasty and has long-term health benefits. Bryant and Anne’s business has expanded as more and
more consumers are interested in eating organic foods. What started as one shop in Vermont
has expanded to 15 stores in Vermont, New Hampshire, Massachusetts, and Maine. Much to
their delight, Bryant and Ann have found that many people are willing to pay a bit more for
food that is organically grown.
Sunday ads for the Good Green Grocer run in area newspapers, with special promotional prices
offered for a list of the “Top Ten Take Homes” each week. Regular customers of the Good
Green Grocer know that the promotional items often run out of stock by mid-week, so the store
typically sees its heaviest traffic on Sunday and Monday.
61) Some customers believe that the Good Green Grocer purposefully runs weekly promotional
prices on items that are low in stock, leaving most customers who come to the store hoping for
lower prices but unable to buy the out-of-stock sale items. If this were true, then the Good
Green Grocer would most likely be accused of ________.
A) using puffery
B) deceptive pricing
C) deceptive promotions
D) deceptive packaging
E) green washing
62) The major criticisms of marketing include harming consumers through high prices,
deceptive practices, high-pressure selling, shoddy or unsafe products, planned obsolescence,
and poor service to disadvantaged countries.
63) Consumers can never buy functional versions of highly promoted branded products at
lower prices.