Deck 3: Ethics and the Marketing Environment

Question 1

For every home built by Habitat for Humanity,Whirlpool Corporation has given and continues to give free kitchen appliances to the deserving family.What does this donation of appliances show?

A) the company's multiculturalism
B) the company's corporate social responsibility
C) the company's duty to engage in cause marketing
D) the company's right to engage in social marketing

Answer 1

B

Question 2

For a period of months in 2004,Birch Telecommunications donated $10 to the Humane Society on behalf of each new business customer that signed with the service.This sort of program indicates the company was operating at which responsibility level?

A) ethical
B) philanthropic
C) cultural
D) economic

Answer 2

B

Question 3

What does sustainability refer to?

A) the ability of a company to maintain high profits despite cutting prices
B) the ability of a company to outperform competitors via generating higher profits over the long term
C) the ability of a company to perform in the marketplace without generating profits
D) the ability of a company to outperform competitors by focusing on social problems

Answer 3

D

Question 4

According to the text,which of the following statements BEST describes ethics?

A) Morals are a foundation for corporate behaviour.
B) Ethical values are important only to individuals.
C) Ethics are the moral principles or values that generally govern the conduct of a corporation.
D) Ethics is the standard of behaviour by which conduct is judged.

Question 5

What are the four components of the pyramid of corporate social responsibility?

A) sustainability,legality,creativity,and competition
B) economic,legal,ethical,and philanthropic responsibilities
C) sustainability,creativity,profit,and culture
D) organizational,financial,social,and cultural responsibilities

Question 6

Fred Farkle works for Fedlayer Powder Corporation.Fred takes great pride in the fact that he has a reputation for being a "good company man." What does Fred subscribe to?

A) conventional morality
B) postconventional morality
C) preconventional morality
D) premeditated morality

Question 7

Argus Finnian is a calculating,self-centred salesperson.He never engages in relationship marketing.He looks on any sales situation as a "win-lose" situation,and he believes that any legal method he can use is justified when he wins.Which stage of ethical development is Finnian most likely at?

A) transformationalism
B) basic morality
C) preconventional morality
D) egocentrism

Question 8

Which of the following statements about corporate social responsibility is true?

A) Marketers universally agree on the importance of corporate social responsibility.
B) Skeptics of the concept of corporate social responsibility believe in the importance of sustainability.
C) Corporate social responsibility can derive from a situational analysis.
D) According to marketers,corporate social responsibility is successful because it focuses solely on economic performance.

Question 9

The pyramid of corporate social responsibilities contains all of the following components EXCEPT which one?

A) legal responsibilities
B) ethical responsibilities
C) cultural responsibilities
D) the coordination of social programs for publicity purposes

Question 10

Which of the following is an advantage of creating ethics guidelines for companies?

A) The guidelines help employees avoid confusion when determining whether their actions are ethical.
B) The guidelines enable effective external control on employee behaviour.
C) The guidelines eliminate discussion among employees about what is right and wrong.
D) The guidelines enable the company legal staff to successfully litigate nonconforming employees.

Question 11

What is the definition of corporate social responsibility?

A) the rules by which social rewards are attained
B) the coordination of social programs for publicity purposes
C) the concern for social welfare by businesses
D) the development of inclusive codes of ethics

Question 12

Like many other businesses,3M Corporation has developed a formal,written guideline to help marketing managers and employees make better ethical decisions.What is this document?

A) a moral ruling
B) a behavioural practice
C) a code of ethics
D) a principled regulation

Question 13

Which of the following statements about the theory of sustainability is true?

A) Sustainability is the idea that socially responsible companies will outperform their peers when they focus on the world's problems as marketing opportunities.
B) Sustainability is an internal process in which companies match resources and objectives.
C) Sustainability is successful only if it focuses on organizational strengths.
D) According to the theory of sustainability,a company cannot be socially responsible without a code of ethics and managerial support of that code.

Question 14

What is the idea that socially responsible companies will outperform their peers by focusing on the world's social problems and viewing them as opportunities to build profit and help the world at the same time?

A) sustainability
B) cause marketing
C) philanthropy
D) international ethics

Question 15

According to the text,which of the following BEST describes ethical decision making?

A) It can be influenced by middle managers.
B) It depends on who is making the decision.
C) It is influenced by the probability of harmful outcomes.
D) It does not depend on the number of people to be affected.

Question 16

Treena Chobotar is a sales manager for Viennese,a company that sells classic high-end children's apparel through party plans.She is very concerned about making sure her salespeople understand the importance of treating each customer fairly and developing long-term relationships with them.She asks that before a sale is made,the salesperson should make sure customers can afford the clothing and are not buying due to social pressures.Which stage of ethical development is Treena most likely at?

A) preconventional morality
B) transformationalism
C) postconventional morality
D) conventional morality

Question 17

What is the concern of business for the long-range welfare of both the company and its relationships to the society within which it operates?

A) consumerism
B) conventional morality
C) corporate social responsibility
D) environmental consideration

Question 18

Hewlett Packard is currently investing $1 billion to bring tele-medicine and e-learning to 1,000 villages in the developing world that have only limited medical facilities and educational opportunities.This is not only good business,but also shows it is which of the following?

A) unrelated to any ethical motivation
B) environmental marketing
C) socially responsible
D) demonstrates a lack of concern for diversity

Question 19

Which of the following sayings best describes how people with conventional morality act?

A) Don't count your chickens before they hatch.
B) When in Rome,do as the Romans do.
C) A rolling stone gathers no moss.
D) Don't put all of your eggs in one basket.

Question 20

Which of the following BEST describes corporate social responsibility?

A) It is unaffected by environmental changes.
B) It may not always result in profit and growth.
C) It requires companies to sacrifice economic performance for the sake of their stakeholders.
D) It is mandated by federal law.

Question 21

When a company implements strategies that attempt to shape the external environment in which it operates,what is it engaging in?

A) reactive management
B) market control
C) environmental management
D) transactional management

Question 22

As technology continues to offer more methods for shopping on the Internet,manufacturers and traditional retailers are finding themselves in direct competition with each other.In this case,manufacturers and retailers cannot intelligently plan for the future unless marketing managers understand one of the following.Which one?

A) how consumers are researching new technology
B) their competitors' strategies
C) changing social attitudes towards ethics
D) the economic conditions that influence the growth of countries

Question 23

The Newfoundland Legislature tried to pass a bill requiring concert promoters and venue operators to print parental warnings on tickets and advertisements for concerts and shows by performers whose recordings have already been given content advisory labels.Promoters and venue operators prevented the passage of this bill that would have required them to make value judgments that they felt ill equipped to make.What did the concert promoters and venue operators engage in?

A) corporate espionage
B) internal marketing
C) illegal practices
D) environmental management

Question 24

Which of the following BEST describes the external environment?

A) It does not change over time.
B) It cannot be influenced by marketing managers.
C) It must be continually monitored by marketing managers.
D) It can be controlled in much the same manner as the internal marketing mix.

Question 25

What is a defined group that managers feel is most likely to buy a firm's product?

A) target market
B) consumer cluster
C) demographic sample
D) buying centre

Question 26

A human resources manager is creating a code of ethics for the employees of the stable she works for.Which of the following is an ethics principle she needs to keep in mind as she creates this code?

A) The principles should upset current barn workers and future job applicants.
B) Any decisions should be fair to all concerned: barn workers,riders,instructors,and horses.
C) Principles can deviate from common practices because of the prestigious nature of the facility.
D) She should have to pull rank or use coercion to implement her ethics code.

Question 27

Many people in Canada choose to drink light beer because Canadians value thin and fit bodies.In Europe,light beers have had little success because flavour is valued more highly.For international beer manufacturers,what does this difference illustrate?

A) how cultural factors influence marketing
B) how competition influence marketing
C) how economic conditions influence marketing
D) how social factors influence marketing

Question 28

Which of the following statements BEST describes the typical target market?

A) A target market will remain stable over time,with the same group of consumers.
B) Target markets change over time as consumers drop in or out of the market,and as tastes change.
C) Target markets are not strongly affected by changes in the external environment.
D) Target markets cannot be specifically defined according to age,income,or location because these factors are continually changing.

Question 29

Although they can at times influence it,marketing managers cannot control one of the following.Which one?

A) how products are priced
B) where advertising is placed
C) the sales force
D) the external environment

Question 30

Colourific is a relatively new competitor for Crayola colouring products.What is the term for people buying school supplies in September?

A) Colourific's target market
B) Colourific's aggregated demography
C) Colourific's buying centre
D) Colourific's consumer sample

Question 31

Assume you are in charge of the politically mandated process of converting the economy of a developing African nation from state-controlled to market-driven business ventures.Which of the following will you need to control to most likely determine the future success of the country and its government?

A) technology
B) marketing
C) the culture
D) the competitive environment

Question 32

Which of the following factors is concerned with the changes in people's values,lifestyles,and family roles?

A) political
B) competitive
C) demographic
D) social

Question 33

Consumers are increasingly asking about the source of the products they are buying and not buying wood that is from a nation that is destroying its environment.Approximately 80 percent of the lumber produced in Indonesia is illegally logged.Two logging companies in Indonesia are putting computerized bar codes on their logs to show they were legally harvested.What do the companies hope this coding will provide evidence of?

A) downsizing
B) proactive evaluation
C) transactional control
D) environmental management

Question 34

Terrorist activities in the United States on 9/11 forced many Americans to rethink their vacation plans even though measures were taken to protect airplane passengers.Vacation destinations in Florida particularly suffered a decline in business.For the U.S.tourist industry,what was the decline in tourism due to?

A) macroeconomic conditions that made Florida destinations non-competitive relative to other U.S.vacation spots
B) social forces that changed the attractiveness of alternative vacation options
C) a shift in regulatory controls from the public sector to the private sector
D) competitive forces in the northern regions of the United States that induced Americans to stay home as a way to better enjoy their vacations

Question 35

Cigarette manufacturers have had to eliminate the use of vending machines due to the machines' inability to check the buyers' ages.A cigarette manufacturer has developed a vending machine that operates only after the user inserts a card verifying his or her age.Which of the following has the cigarette manufacturer engaged in by modifying its external environment through the use of technology?

A) technology diversity
B) environmental management
C) synergistic research and development
D) re-engineering

Question 36

Which of the following statements about the creation of a code of ethics is true?

A) A written code helps employees avoid confusion when determining whether their decisions are ethical.
B) The process of formulating the code facilitates discussions that ultimately create worse decisions.
C) A code confuses employees about what their firm recognizes to be acceptable business practices.
D) A code can be an effective external control on behaviour.

Question 37

The external environment is a strong influence on a target market.For the marketing manager,what can it be a source of?

A) threats and strengths
B) opportunities and threats
C) product myopia
D) opportunities and weaknesses

Question 38

What is the most difficult external variable for marketing managers to forecast,influence,or integrate into marketing plans?

A) economic conditions
B) competition
C) technology
D) social

Question 39

Which of the following factors tends to influence ethical decision making and judgments?

A) level of multiculturalism
B) number of people to be affected
C) potential magnitude of the decision
D) probability of a beneficial outcome

Question 40

What is the most difficult external variable for marketing managers to forecast or influence?

A) social factors
B) economic factors
C) demographic factors
D) political factors

Question 41

Consumer preference for low-carb diets has greatly modified the way food is being marketed.What is this concern with health issues an example of?

A) demographic factors
B) political and legal factors
C) social factors
D) economic factors

Question 42

You are a marketing consultant to a firm that would like to target members of Generation X.What do you advise?

A) Clearly state to the audience that Generation X is the intended target of all marketing communications.
B) Emphasize freedom from work and commitment.
C) Develop a personal service that will appeal to these time-poor consumers.
D) Avoid topics dealing with materialistic possessions.

Question 43

Ephenia Moore is a lawyer in Victoria.She is also a certified scuba diver,published poet,and single parent.Her other interests include sewing,scrap booking,and square dancing.How would marketers categorize Moore?

A) as not belonging to any target market
B) as a member of the typical accountant target segment
C) as fitting into a single parent segment
D) as having a component lifestyle

Question 44

Which of the following events has had a greater effect on marketing than any other social change?

A) the increasing number of working women
B) the growing number of one-child families
C) a growing number of people of retirement age who are continuing work
D) the growing number of people on the Internet

Question 45

Ashley Kreeger is the director of marketing for a company that operates several assisted-living centres.The company is developing a marketing plan that must cover the next five years of business.Which of the following will Kreeger consider uncontrollable factors in her plan?

A) pricing for repair and maintenance services
B) demographic factors
C) media buying factors
D) inventory factors

Question 46

What has the growth of dual-income families resulted in?

A) decreased discretionary income
B) decreased GNP
C) increased purchasing power
D) a sense of entitlement

Question 47

Ruth is a mother of two,loves to travel,is a member of a book club,enjoys jogging,likes to wear the latest fashions,and is a police officer.All of these diverse needs and interests influence her choice of the goods and services she buys.What does Ruth have?

A) a component lifestyle
B) a segmented buying process
C) a multicultural demography
D) a fragmented market orientation

Question 48

Which of the following is a demographic characteristic of a population?

A) age at graduation
B) education
C) values
D) place of birth

Question 49

Carissa Ty designs and sells clothes for young working women.She has recently been told that unless she starts designing more to suit the style of the Gen Y market,she is likely to be in financial trouble soon.Why would someone tell her that?

A) Gen Y-ers are easily swayed by traditional promotion media.
B) Gen Y-ers don't have a style that they prefer.
C) Baby boomers provide all of the disposable income for Gen Y members.
D) Demographically,Gen Y-ers are an extremely large group of consumers.

Question 50

Quaker Oats and other cereal manufacturers have developed what they call "breakfast-with-one-hand" products,which are breakfast bars and drinks that can be consumed on the way to work without leaving any mess.This type of food that can be eaten on the go is largely the result of changes in what type of factors?

A) social
B) technological
C) political
D) demographic

Question 51

What is the practice of choosing goods and services that meet one's diverse needs and interests rather than conforming to a single,traditional lifestyle?

A) demographically defined lifestyle
B) targeted lifestyling
C) psychographic mode of living
D) component lifestyle

Question 52

Field Entertainment was given the task of compressing75 years of Disney Magic into a two-hour show.While the task was formidable,the company described the results as multigenerational (meaning that the newly created show appeals to children,parents,and grandparents).What type of factors did Field Entertainment rely heavily on to develop a new show that would be appreciated by potential audiences?

A) competitive
B) demographic
C) cultural
D) technological

Question 53

What is the study of people's vital statistics,such as their ages,births,deaths,and locations?

A) psychometrics
B) demography
C) ecology
D) cultural sociology

Question 54

Which group is strongly attached to technology,tends to be skeptical consumers,and demands the latest fashion trends in record time?

A) Generation Yers
B) the baby-bridging generation
C) the baby boomer generation
D) Generation Xers

Question 55

According to the text,which of the following statements about Generation Y is true?

A) Its members are people who were born between 1965 and 1978.
B) It is more than three times as large as Generation X.
C) The members of Generation Y don't mind indulging themselves with restaurant meals,clothing,and electronic items.
D) Members of Generation Y are the first generation of latchkey kids.

Question 56

In Asia,Procter & Gamble (P&G)discovered that consumers like to experiment with different brands of shampoos,so most shoppers shy away from the family-size bottles so popular with Americans.Now most of the shampoo the company sells in the Far East is packaged in single-use sachets.What type of factors did P&G respond to when it changed its Asian packaging?

A) competitive
B) demographic
C) social
D) technological

Question 57

More and more Canadian citizens are enjoying a piecing together of a variety of interests,products,and services,and are not conforming to traditional stereotypes.What is this called?

A) modular market mixes
B) conformity and cohesiveness
C) simple multipurpose products
D) component lifestyles

Question 58

Why has the component lifestyle of many of today's consumers proven to be such a challenge to marketers?

A) A consumer is defined by his or her lifestyle,which is defined by level of education attained and occupation.
B) The needs of people with component lifestyles are in constant flux.
C) There are no specialized magazines that reach small segments of markets.
D) Communication with people who have component lifestyles is very difficult.

Question 59

Coolsavings.com is one of the largest on-line distributors of in-store coupons,sales announcements,and mail-in rebates offered by national retailers and Internet commerce sites.Its marketing department keeps track of current external environmental changes.Although some information is relatively easy to collect,analyzing and forecasting one type of trend is extremely difficult,and it is the most important factor for a company to understand.What is the trend?

A) social
B) technological
C) economic
D) demographic

Question 60

Which group is formed by consumers born between 1965 and 1978?

A) yuppies
B) Generation X
C) baby boomers
D) America's mass market

Question 61

Given Canadian demographic trends,which of the following "near future businesses" should experience the greatest growth?

A) high-performance sports car dealers
B) baby food manufacturers
C) on-line and offline travel services
D) in-home child care services

Question 62

When income is high relative to the cost of living,what happens?

A) Consumers begin anticipating a period of price deceleration.
B) Consumers have more discretionary income.
C) Consumers anticipate price escalation by stockpiling.
D) Consumers have significantly less disposable income.

Question 63

What is a multicultural society characterized by?

A) a population of recent immigrants that are closely related by custom and tradition
B) even distribution of all ethnic groups in a geographic region
C) a conglomeration of small and large ethnic groups that have little in common
D) one large dominating racial or ethnic group in a geographic area

Question 64

Many marketers have created enduring stereotypes about older adults.According to the text,which of the following statements MOST accurately describes older consumers?

A) Older consumers are sick or ailing.
B) Older consumers do not buy many fresh fruits and vegetables.
C) Older consumers are sedentary.
D) Older consumers vacation often and eat out often.

Question 65

According to the text,which of the following statements about Generation X is true?

A) The members of Generation X do not mind indulging themselves.
B) Gen Xers are more likely to buy investment properties rather than clothing or electronic items.
C) The children of Generation X were the first latchkey kids.
D) The members of Gen X consider individualism to be the most important characteristic defining their generation.

Question 66

What has to be higher for you to have higher purchasing power?

A) disposable income
B) social class
C) cost of living
D) gross income

Question 67

What is discretionary income?

A) consumer income spent on nonessential items
B) what is left to the consumer after tax deductions
C) the money spent on utilities,food and groceries,transportation,clothing,and other expenses
D) by the average salary of all Canadian consumers

Question 68

What are interest rates,inflation,and consumer income that influence the marketing environment?

A) sociodemographic factors
B) political factors
C) government factors
D) economic factors

Question 69

What is measured by comparing the relative cost of a standard of goods and services in different geographic areas?

A) relative pricing
B) price escalation
C) purchasing power
D) gross individual profit

Question 70

What is a general rise in prices of goods and services that results in decreased purchasing power?

A) a recession
B) a consumer break-even
C) a depression
D) inflation

Question 71

In Canada today,what percentage of the total population do seniors make up?

A) 38 percent
B) 58 percent
C) 18 percent
D) 78 percent

Question 72

When planning marketing strategies during times of inflation,marketers must be aware that inflation causes consumers to do what?

A) put more money into savings accounts because prices are too high
B) decrease their brand loyalty to products they have traditionally used
C) buy in small quantities until inflation is over
D) purchase more goods and services to support their psychological selves,such as counselling and stress management training

Question 73

According to the text,which of the following statements about ethnic and cultural diversity is true?

A) The four P's of marketing are not as useful as they used to be because there are no longer mass markets to be targeted.
B) Now,more than ever,marketers can use each of the four Ps to customize marketing mixes for unique segments of the population.
C) Marketers can no longer realize any economies of scale because target markets are so fragmented and difficult to define.
D) Most immigrants readily embrace North American branded products,and so mass marketing is still the best approach for most products.

Question 74

What does the text state about older consumers in Canada?

A) They are light TV viewers.
B) They are more likely to experience selective retention than any other demographic group.
C) They are more likely to shop for low prices than for value.
D) They typically have chronic health problems.

Question 75

What is the large group of people in Canada,who were born between 1946 and 1964?

A) gray markets
B) Generation Xers
C) baby boomers
D) the baby bust generation

Question 76

A furniture retailer that specializes in selling entire rooms of furniture has hired you to identify 25 geographic target markets that can be described as multicultural societies.What types of locations should you offer this firm?

A) unindustrialized areas
B) regions that are dominated by one ethnic group and that have multiple smaller ethnic groups
C) cities that historically have had low immigration rates
D) locations in which all major ethnic groups in the area are equally represented

Question 77

What is currently the largest age demographic in Canada?

A) women aged 32-45
B) women aged 40-64
C) men aged 32-45
D) men aged 16-31

Question 78

What is the average median household income in Canada today?

A) about $98,000
B) about $78,000
C) about $38,000
D) about $58,000

Question 79

Keily Royale is opening a decorating service in an affluent Toronto neighbourhood.Market research reveals that most of her customers are baby boomers with above-average incomes (because they are often dual-career couples).Royale appears to be aware of how this group cherishes which of the following?

A) aging
B) budgets
C) their homes
D) fashion trends

Question 80

A Toronto neighbourhood where all the residents are either Asian or white and who can trace their ancestors' arrivals in the community back at least four generations is an example of which of the following?

A) a market aggregation
B) a psychographic target market
C) a multicultural society
D) a metropolitan statistical area