Even though his business is very small, the owner of a LAN center wants to follow the
American Marketing Association Statement of Ethics. Every month there is a “company
cookout.” At the end of the meal, the employee (from president to members of the
cleaning staff) who had the best idea for improving the center is honored and given a
$25.00 gift certificate plus a T-shirt that reads, “Great Minds Think Like Me.” This
action exhibits which key AMA ethical value?
a. honesty
b. responsibility
c. fairness
d. respect
e. openness
Answer:
Drop shippers
a. own the merchandise they sell but do not physically handle, stock, or deliver it.
b. perform all channel functions, and sell on consignment to retailers.
c. take title to merchandise but sell only to buyers who call on them, pay cash for
merchandise, and furnish their own transportation for merchandise.
d. have a small warehouse from which they stock their trucks for distribution to
retailers.
e. work for several producers and carry noncompetitive, complementary merchandise in
an exclusive territory.